PARKE BANCORP, INC. ANNOUNCES FOURTH QUARTER 2024 EARNINGS
Parke Bancorp (NASDAQ: PKBK) reported Q4 2024 financial results with net income of $7.4 million ($0.62 per basic share), down 9.5% from $8.2 million in Q4 2023. For the full year 2024, net income was $27.5 million ($2.30 per basic share), a 3.3% decrease from 2023.
Key metrics for Q4 2024: Revenue increased 4.4% to $34.5 million, total assets grew 5.9% to $2.14 billion, total loans rose 4.5% to $1.87 billion, and deposits increased 5.0% to $1.63 billion. Net interest income slightly increased by 0.7% to $15.6 million.
Notable challenges included higher provision for credit losses ($0.2 million vs -$0.4 million recovery in Q4 2023), decreased non-interest income (-23.1% to $1.1 million), and increased non-interest expenses (+9.0% to $6.9 million). Nonperforming loans increased to $11.8 million, representing 0.63% of total loans.
Parke Bancorp (NASDAQ: PKBK) ha riportato i risultati finanziari del quarto trimestre 2024 con un utile netto di 7,4 milioni di dollari (0,62 dollari per azione base), in calo del 9,5% rispetto agli 8,2 milioni di dollari del quarto trimestre 2023. Per l'intero anno 2024, l'utile netto è stato di 27,5 milioni di dollari (2,30 dollari per azione base), con una diminuzione del 3,3% rispetto al 2023.
Metriche chiave per il quarto trimestre 2024: I ricavi sono aumentati del 4,4% a 34,5 milioni di dollari, le attività totali sono cresciute del 5,9% a 2,14 miliardi di dollari, i prestiti totali sono aumentati del 4,5% a 1,87 miliardi di dollari e i depositi sono aumentati del 5,0% a 1,63 miliardi di dollari. Il reddito netto da interessi è aumentato leggermente dello 0,7% a 15,6 milioni di dollari.
Le sfide significative hanno incluso una maggiore disposizione per perdite creditizie (0,2 milioni di dollari rispetto a -0,4 milioni di dollari recuperati nel quarto trimestre 2023), un reddito non da interessi diminuito (-23,1% a 1,1 milioni di dollari) e un aumento delle spese non da interessi (+9,0% a 6,9 milioni di dollari). I prestiti non performanti sono aumentati a 11,8 milioni di dollari, rappresentando lo 0,63% dei prestiti totali.
Parke Bancorp (NASDAQ: PKBK) informó los resultados financieros del cuarto trimestre de 2024 con un ingreso neto de 7,4 millones de dólares (0,62 dólares por acción básica), lo que representa una disminución del 9,5% en comparación con los 8,2 millones de dólares en el cuarto trimestre de 2023. Para todo el año 2024, el ingreso neto fue de 27,5 millones de dólares (2,30 dólares por acción básica), lo que significa una disminución del 3,3% con respecto a 2023.
Métricas clave para el cuarto trimestre de 2024: Los ingresos aumentaron un 4,4% a 34,5 millones de dólares, los activos totales crecieron un 5,9% a 2,14 mil millones de dólares, los préstamos totales aumentaron un 4,5% a 1,87 mil millones de dólares y los depósitos crecieron un 5,0% a 1,63 mil millones de dólares. Los ingresos netos por intereses aumentaron ligeramente un 0,7% a 15,6 millones de dólares.
Los desafíos notables incluyeron mayores provisiones para pérdidas crediticias (0,2 millones de dólares frente a -0,4 millones de dólares recuperados en el cuarto trimestre de 2023), un ingreso no por intereses disminuido (-23,1% a 1,1 millones de dólares) y un aumento de los gastos no por intereses (+9,0% a 6,9 millones de dólares). Los préstamos en mora aumentaron a 11,8 millones de dólares, lo que representa el 0,63% de los préstamos totales.
Parke Bancorp (NASDAQ: PKBK)는 2024년 4분기 재무 결과를 보고하며 순이익이 740만 달러(기본 주당 0.62 달러)로, 2023년 4분기의 820만 달러에 비해 9.5% 감소했다고 발표했습니다. 2024년 전체 연간 순이익은 2750만 달러(기본 주당 2.30 달러)로, 2023년보다 3.3% 감소했습니다.
2024년 4분기 주요 지표: 수익은 4.4% 증가하여 3450만 달러에 달하고, 총 자산은 5.9% 증가하여 21억 4000만 달러, 총 대출은 4.5% 증가하여 18억 7000만 달러, 예금은 5.0% 증가하여 16억 3000만 달러에 이릅니다. 순이자 수익은 0.7% 증가하여 1560만 달러에 달했습니다.
주요 도전 과제로는 신용 손실에 대한 충당금 증가(20만 달러, 2023년 4분기 회수액 -40만 달러), 비이자 수익 감소(-23.1%로 110만 달러) 및 비이자 비용 증가(+9.0%로 690만 달러)가 포함되었습니다. 부실 대출은 1180만 달러로 증가하여 총 대출의 0.63%를 차지합니다.
Parke Bancorp (NASDAQ: PKBK) a rapporté les résultats financiers du quatrième trimestre 2024 avec un revenu net de 7,4 millions de dollars (0,62 dollar par action de base), en baisse de 9,5 % par rapport à 8,2 millions de dollars au quatrième trimestre 2023. Pour l'année complète 2024, le revenu net a été de 27,5 millions de dollars (2,30 dollars par action de base), soit une baisse de 3,3 % par rapport à 2023.
Métriques clés pour le quatrième trimestre 2024 : Les revenus ont augmenté de 4,4 % pour atteindre 34,5 millions de dollars, les actifs totaux ont crû de 5,9 % pour atteindre 2,14 milliards de dollars, les prêts totaux ont augmenté de 4,5 % pour atteindre 1,87 milliard de dollars et les dépôts ont augmenté de 5,0 % pour s'établir à 1,63 milliard de dollars. Le revenu net d'intérêts a légèrement augmenté de 0,7 % pour atteindre 15,6 millions de dollars.
Les défis notables comprenaient une provision pour pertes sur crédits plus élevée (0,2 million de dollars contre -0,4 million de dollars récupérés au quatrième trimestre 2023), une diminution du revenu non d'intérêts (-23,1 % à 1,1 million de dollars) et une augmentation des dépenses non d'intérêts (+9,0 % à 6,9 millions de dollars). Les prêts non performants ont augmenté à 11,8 millions de dollars, représentant 0,63 % des prêts totaux.
Parke Bancorp (NASDAQ: PKBK) berichtete die Finanzzahlen für das vierte Quartal 2024 mit einem Nettogewinn von 7,4 Millionen Dollar (0,62 Dollar pro Stammaktie), was einem Rückgang von 9,5% im Vergleich zu 8,2 Millionen Dollar im vierten Quartal 2023 entspricht. Für das gesamte Jahr 2024 betrug der Nettogewinn 27,5 Millionen Dollar (2,30 Dollar pro Stammaktie), ein Rückgang von 3,3% im Vergleich zum Jahr 2023.
Wichtige Kennzahlen für das vierte Quartal 2024: Die Einnahmen stiegen um 4,4% auf 34,5 Millionen Dollar, die Gesamterträge wuchsen um 5,9% auf 2,14 Milliarden Dollar, die Gesamtdarlehen erhöhten sich um 4,5% auf 1,87 Milliarden Dollar und die Einlagen stiegen um 5,0% auf 1,63 Milliarden Dollar. Das Nettozinseinkommen stieg leicht um 0,7% auf 15,6 Millionen Dollar.
Bemerkenswerte Herausforderungen umfassten eine höhere Rückstellung für Kreditausfälle (0,2 Millionen Dollar gegenüber -0,4 Millionen Dollar Rückerstattung im vierten Quartal 2023), einen Rückgang der nicht zinsertragenden Einnahmen (-23,1% auf 1,1 Millionen Dollar) und erhöhte nicht zinsertragende Ausgaben (+9,0% auf 6,9 Millionen Dollar). Die notleidenden Darlehen stiegen auf 11,8 Millionen Dollar, was 0,63% der Gesamtdarlehen entspricht.
- Revenue increased 4.4% to $34.5 million in Q4 2024
- Total assets grew 5.9% to $2.14 billion
- Total loans increased 4.5% to $1.87 billion
- Total deposits rose 5.0% to $1.63 billion
- Cannabis-related business deposits increased by $55.2 million to $151.9 million
- Total equity increased 5.5% to $300.1 million
- Net income decreased 9.5% to $7.4 million in Q4 2024
- Full-year net income declined 3.3% to $27.5 million
- Non-interest income decreased 23.1% to $1.1 million
- Nonperforming loans increased by $4.5 million to $11.8 million
- Net interest income for fiscal year 2024 decreased 8.6% to $58.7 million
Insights
Parke Bancorp's Q4 2024 performance reveals a complex financial picture requiring careful analysis. The $7.4 million quarterly earnings represent a
Asset Quality Signals: The rise in nonperforming loans to
Deposit Strategy Evolution: The bank's funding profile shows interesting shifts, with cannabis-related deposits growing by
Operational Efficiency: The improved efficiency ratio of
Capital Management: Total equity surpassing
Looking forward, the bank's strategic focus on multi-family lending (evidenced by the
Highlights: | ||||
Net Income: | ||||
Revenue: | ||||
Total Assets: | ||||
Total Loans: | $1.87 billion, increased | |||
Total Deposits: | ||||
Highlights for the fourth quarter and year ended December 31, 2024:
- Net income available to common shareholders was
$7.4 million $0.62 $0.61 $0.8 million 9.5% , compared to net income available to common shareholders of$8.2 million $0.68 $0.67 - Net interest income increased
0.7% to$15.6 million $15.5 million - Provision for credit losses was an increase of
$0.6 million $0.2 million $0.4 million - Non-interest income decreased
$0.3 million 23.1% , to$1.1 million $1.5 million - Non-interest expense increased
$0.6 million 9.0% , to$6.9 million $6.3 million - Net income available to common shareholders was
$27.5 million $2.30 $2.27 $0.9 million 3.3% , compared to net income available to common shareholders of$28.4 million $2.38 $2.35 - Net interest income decreased
8.6% to$58.7 million $64.2 million - Provision for credit losses increased
$2.8 million $0.7 million $2.1 million - Non-interest income decreased
$2.4 million 35.7% , to$4.3 million $6.7 million - Non-interest expense decreased
$9.3 million 26.3% , to$26.0 million $35.3 million $9.5 million
The following is a recap of the significant items that impacted the fourth quarter of 2024 and the fiscal year ended December 31, 2024:
Interest income increased
Interest expense increased
The provision for credit losses increased
Non-interest income decreased
Non-interest expense increased
Income tax expense decreased
December 31, 2024 discussion of financial condition
- Total assets increased to
$2.14 billion $2.02 billion $118.7 million 5.9% . - Cash and cash equivalents totaled
$221.5 million $180.4 million - The investment securities portfolio decreased to
$14.8 million $16.4 million $1.6 million 9.9% , primarily due to pay downs of securities. - Gross loans increased to
$1.87 billion $1.79 billion $80.8 million 4.5% . The increase in loans was primarily due to an increase in the multi-family loan portfolio of$71.5 million $18.2 million $17.9 million - Nonperforming loans at December 31, 2024 increased to
$11.8 million 0.63% of total loans, an increase of$4.5 million $7.3 million $1.6 million $1.6 million $2.1 million $0.7 million $1.6 million $1.6 million 0.62% and0.44% of total assets at December 31, 2024 and December 31, 2023, respectively. Loans past due 30 to 89 days were$1.4 million $2.5 million - The allowance for credit losses was
$32.6 million $32.1 million 1.74% and1.80% at December 31, 2024 and at December 31, 2023, respectively. The ratio of allowance for credit losses to non-performing loans was276.5% at December 31, 2024, compared to442.5% , at December 31, 2023. - Total deposits were
$1.63 billion $1.55 billion $78.2 million 5.0% compared to December 31, 2023. The increase in deposits was attributed to an increase in brokered time deposits of$61.5 million $48.4 million $46.6 million $48.2 million $27.6 million $75.1 million $55.2 million $151.9 million $96.7 million - Total borrowings increased
$20.2 million $188.3 million $168.1 million $20.0 million New York ("FHLBNY") advances. - Total equity increased to
$300.1 million $284.3 million $15.8 million 5.5% , primarily due to the retention of earnings, partially offset by the payment of$8.6 million $4.3 million
CEO outlook and commentary
"There was a lot of excitement and some surprises in 2024, which is not unusual for a Presidential election year. Many projections for 2024 did not materialize including the anticipated pace of reducing interest rates. The economy's surprising strength and a slower than hoped for decline in inflation tempered and delayed the Feds reduction of interest rates. It was initially projected that interest rates would be reduced beginning in the second quarter of 2024, but this did not begin until the fourth quarter. Although the region's real estate market remained surprisingly resilient the anticipated strengthening of the industry was slow and in some market sectors non-existent. The slow interest rate decline resulted in a higher interest expense for our company in 2024 than initially anticipated, reducing our net interest income. We are seeing the continued slow increase in loan demand and anticipate that this will not change in 2025. New home construction is one market sector that we see improving faster than some other sectors."
"Although we are disappointed with the higher than anticipated interest expense negatively affecting our net interest income, we are pleased that we generated strong earnings in 2024. We continue to maintain tight controls on our expenses with our cost efficiency ratio improving to close to
"Our net income, tight control of our expenses and our total equity exceeding
Forward Looking Statement Disclaimer
This release may contain forward-looking statements. Such forward-looking statements are subject to risks and uncertainties which may cause actual results to differ materially from those currently anticipated due to a number of factors; our ability to maintain strong capital, strong asset quality and strong reserves; our ability to recover or partially offset any losses resulting from loss of stored or missing cash; our ability to generate strong revenues with increased interest income and net interest income;; our ability to continue the financial strength and growth of our Company and Parke Bank; our ability to continue to increase shareholders' equity, good credit quality; our ability to be well structured to face challenging economic conditions; our ability to ensure that our loan loss provision is well positioned for the future; our ability to continue to reduce our nonperforming loans and delinquencies and the expenses associated with them; our ability to realize a high recovery rate on disposition of troubled assets; our ability to continue to pay a dividend in the future; our ability to enhance shareholder value in the future; our ability to continue growing our Company, our earnings and shareholders' equity; and our ability to continue to grow our loan portfolio; the possibility of additional corrective actions or limitations on the operations of Parke Bancorp, Inc. and Parke Bank being imposed by banking regulators, therefore, readers should not place undue reliance on any forward-looking statements. Parke Bancorp, Inc. does not undertake, and specifically disclaims, any obligations to publicly release the results of any revisions that may be made to any forward-looking statements to reflect the occurrence of anticipated or unanticipated events or circumstances after the date of such circumstance.
(PKBK-ER)
Financial Supplement:
Table 1: Condensed Consolidated Balance Sheets (Unaudited)
Parke Bancorp, Inc. and Subsidiaries | |||
Condensed Consolidated Balance Sheets | |||
December 31, | December 31, | ||
2024 | 2023 | ||
(Dollars in thousands) | |||
Assets | |||
Cash and cash equivalents | $ 221,527 | $ 180,376 | |
Investment securities | 14,760 | 16,387 | |
Loans, net of unearned income | 1,868,153 | 1,787,340 | |
Less: Allowance for credit losses | (32,573) | (32,132) | |
Net loans | 1,835,580 | 1,755,208 | |
Premises and equipment, net | 5,316 | 5,579 | |
Bank owned life insurance (BOLI) | 29,070 | 28,415 | |
Other assets | 35,983 | 37,535 | |
Total assets | $ 2,142,236 | $ 2,023,500 | |
Liabilities and Equity | |||
Non-interest bearing deposits | $ 184,037 | $ 232,189 | |
Interest bearing deposits | 1,447,013 | 1,320,638 | |
FHLBNY borrowings | 145,000 | 125,000 | |
Subordinated debentures | 43,300 | 43,111 | |
Other liabilities | 22,813 | 18,245 | |
Total liabilities | 1,842,163 | 1,739,183 | |
Total shareholders' equity | 300,073 | 284,317 | |
Total liabilities and shareholders' equity | $ 2,142,236 | $ 2,023,500 | |
Table 2: Consolidated Income Statements (Unaudited) | |||||||
For the three months ended December 31, | For the twelve months ended December 31, | ||||||
2024 | 2023 | 2024 | 2023 | ||||
(Dollars in thousands, except per share data) | |||||||
Interest income: | |||||||
Interest and fees on loans | $ 30,857 | $ 28,459 | $ 117,834 | $ 106,061 | |||
Interest and dividends on investments | 281 | 303 | 1,042 | 1,048 | |||
Interest on deposits with banks | 2,188 | 1,537 | 6,237 | 5,595 | |||
Total interest income | 33,326 | 30,299 | 125,113 | 112,704 | |||
Interest expense: | |||||||
Interest on deposits | 15,189 | 13,214 | 57,312 | 41,259 | |||
Interest on borrowings | 2,518 | 1,570 | 9,093 | 7,231 | |||
Total interest expense | 17,707 | 14,784 | 66,405 | 48,490 | |||
Net interest income | 15,619 | 15,515 | 58,708 | 64,214 | |||
Provision for (recovery of) credit losses | 182 | (451) | 728 | (2,051) | |||
Net interest income after provision for (recovery of) credit losses | 15,437 | 15,966 | 57,980 | 66,265 | |||
Non-interest income | |||||||
Service fees on deposit accounts | 328 | 724 | 1,387 | 3,872 | |||
Gain on sale of SBA loans | — | — | 23 | — | |||
Other loan fees | 231 | 239 | 849 | 851 | |||
Bank owned life insurance income | 167 | 294 | 655 | 737 | |||
Net gain on sale and valuation adjustment of OREO | — | — | — | 38 | |||
Other | 412 | 223 | 1,387 | 1,194 | |||
Total non-interest income | 1,138 | 1,480 | 4,301 | 6,692 | |||
Non-interest expense | |||||||
Compensation and benefits | 3,302 | 2,925 | 12,768 | 12,340 | |||
Professional services | 1,089 | 583 | 2,730 | 2,328 | |||
Occupancy and equipment | 655 | 666 | 2,598 | 2,604 | |||
Data processing | 389 | 348 | 1,366 | 1,385 | |||
FDIC insurance and other assessments | 333 | 332 | 1,306 | 1,292 | |||
OREO expense | 59 | 229 | 835 | 839 | |||
Other operating expense | 1,023 | 1,204 | 4,381 | 14,479 | |||
Total non-interest expense | 6,850 | 6,287 | 25,984 | 35,267 | |||
Income before income tax expense | 9,725 | 11,159 | 36,297 | 37,690 | |||
Income tax expense | 2,327 | 2,986 | 8,785 | 9,228 | |||
Net income attributable to Company | 7,398 | 8,173 | 27,512 | 28,462 | |||
Less: Preferred stock dividend | (5) | (6) | (20) | (26) | |||
Net income available to common shareholders | $ 7,393 | $ 8,167 | $ 27,492 | $ 28,436 | |||
Earnings per common share | |||||||
Basic | $ 0.62 | $ 0.68 | $ 2.30 | $ 2.38 | |||
Diluted | $ 0.61 | $ 0.67 | $ 2.27 | $ 2.35 | |||
Weighted average common shares outstanding | |||||||
Basic | 11,937,412 | 11,947,530 | 11,954,483 | 11,945,740 | |||
Diluted | 12,153,318 | 12,133,511 | 12,139,451 | 12,137,052 | |||
Table 3: Operating Ratios
Three months ended | Twelve months ended | ||||||
December 31, | December 31, | ||||||
2024 | 2023 | 2024 | 2023 | ||||
Return on average assets | 1.41 % | 1.64 % | 1.38 % | 1.45 % | |||
Return on average common equity | 9.82 % | 11.50 % | 9.36 % | 10.21 % | |||
Interest rate spread | 2.01 % | 2.17 % | 1.94 % | 3.08 % | |||
Net interest margin | 3.02 % | 3.17 % | 3.00 % | 3.34 % | |||
Efficiency ratio* | 40.88 % | 36.99 % | 41.24 % | 48.34 % | |||
* Efficiency ratio is calculated using non-interest expense divided by the sum of net interest income and non-interest income. |
Table 4: Asset Quality Data
December 31, | December 31, | ||
2024 | 2023 | ||
(Amounts in thousands except ratio data) | |||
Allowance for credit losses | $ 32,573 | $ 32,132 | |
Allowance for credit losses to total loans | 1.74 % | 1.80 % | |
Allowance for credit losses to non-accrual loans | 276.46 % | 442.53 % | |
Non-accrual loans | $ 11,782 | $ 7,261 | |
OREO | $ 1,562 | $ 1,550 | |
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SOURCE Parke Bancorp, Inc.
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