PARKE BANCORP, INC. ANNOUNCES THIRD QUARTER 2024 EARNINGS
Parke Bancorp reported Q3 2024 earnings with net income of $7.5 million, up 16.3% from Q2 2024. Revenue increased 5.2% to $33.0 million. Total assets grew 2.1% to $2.07 billion, while total loans increased 2.9% to $1.84 billion. Deposits rose 0.4% to $1.56 billion.
The company saw a 634.1% increase in net income compared to Q3 2023, primarily due to a non-recurring $9.5 million contingent loss in the previous year. However, net interest income decreased by $1.0 million, and non-interest income fell by $0.9 million. The allowance for credit losses stood at $32.3 million, with the ratio to total loans at 1.76%.
CEO Vito S. Pantilione noted increased loan activity, stable residential construction projects, and exploration of new markets. He emphasized the focus on asset quality and non-interest expense management amid economic uncertainties and geopolitical tensions.
Parke Bancorp ha riportato gli utili del Q3 2024 con un reddito netto di 7,5 milioni di dollari, in aumento del 16,3% rispetto al Q2 2024. Le entrate sono aumentate del 5,2% fino a 33,0 milioni di dollari. Gli attivi totali sono cresciuti del 2,1% fino a 2,07 miliardi di dollari, mentre i prestiti totali sono aumentati del 2,9% fino a 1,84 miliardi di dollari. I depositi sono aumentati dello 0,4% fino a 1,56 miliardi di dollari.
La società ha registrato un aumento del 634,1% del reddito netto rispetto al Q3 2023, principalmente a causa di una perdita contingente non ricorrente di 9,5 milioni di dollari dell'anno precedente. Tuttavia, il reddito da interessi netti è diminuito di 1,0 milioni di dollari, e il reddito non da interessi è calato di 0,9 milioni di dollari. L'accantonamento per perdite su crediti si attesta a 32,3 milioni di dollari, con il rapporto rispetto ai prestiti totali all'1,76%.
Il CEO Vito S. Pantilione ha notato un aumento dell'attività di prestito, progetti di costruzione residenziale stabili e l'esplorazione di nuovi mercati. Ha sottolineato l'importanza della qualità degli attivi e della gestione delle spese non da interessi in un contesto di incertezze economiche e tensioni geopolitiche.
Parke Bancorp reportó ganancias del Q3 2024 con un ingreso neto de 7.5 millones de dólares, un aumento del 16.3% en comparación con el Q2 2024. Los ingresos aumentaron un 5.2% hasta 33.0 millones de dólares. Los activos totales crecieron un 2.1% hasta 2.07 mil millones de dólares, mientras que los préstamos totales aumentaron un 2.9% hasta 1.84 mil millones de dólares. Los depósitos crecieron un 0.4% hasta 1.56 mil millones de dólares.
La empresa vio un aumento del 634.1% en el ingreso neto en comparación con el Q3 2023, principalmente debido a una pérdida contingente no recurrente de 9.5 millones de dólares el año anterior. Sin embargo, los ingresos por intereses netos disminuyeron en 1.0 millones de dólares, y los ingresos no por intereses cayeron en 0.9 millones de dólares. La provisión para pérdidas por crédito se situó en 32.3 millones de dólares, con una tasa sobre el total de préstamos del 1.76%.
El CEO Vito S. Pantilione destacó un aumento en la actividad de préstamos, proyectos de construcción residencial estables y la exploración de nuevos mercados. Enfatizó el enfoque en la calidad de los activos y la gestión de los gastos no por intereses en medio de incertidumbres económicas y tensiones geopolíticas.
Parke Bancorp는 2024년 3분기 수익을 보고하며, 750만 달러의 순이익을 기록하여 2024년 2분기 대비 16.3% 증가했습니다. 매출은 5.2% 증가하여 3300만 달러에 도달했습니다. 총 자산은 2.1% 증가하여 20억 7000만 달러에 도달했으며, 총 대출은 2.9% 증가하여 18억 4000만 달러에 이르렀습니다. 예금은 0.4% 증가하여 15억 6000만 달러에 도달했습니다.
회사는 지난해 동일 분기 대비 순이익 634.1% 증가를 기록했는데, 이는 주로 작년 비정기적인 950만 달러의 우발적 손실 때문입니다. 그러나 순이자 수익은 100만 달러 감소하고 비이자 수익은 90만 달러 감소했습니다. 신용 손실에 대한충당금은 3230만 달러로, 총 대출 대비 비율은 1.76%로 나타났습니다.
CEO 비토 S. 판틸리오(Vito S. Pantilione)는 대출 활동의 증가, 안정적인 주택 건설 프로젝트 및 신규 시장 탐색을 언급했습니다. 그는 경제적 불확실성과 지정학적 긴장 속에서 자산 품질 및 비이자 비용 관리에 대한 집중을 강조했습니다.
Parke Bancorp a publié les résultats du Q3 2024 avec un revenu net de 7,5 millions de dollars, en hausse de 16,3 % par rapport au Q2 2024. Les revenus ont augmenté de 5,2 % pour atteindre 33,0 millions de dollars. Les actifs totaux ont crû de 2,1 % pour atteindre 2,07 milliards de dollars, tandis que les prêts totaux ont progressé de 2,9 % pour atteindre 1,84 milliard de dollars. Les dépôts ont augmenté de 0,4 % pour atteindre 1,56 milliard de dollars.
L’entreprise a enregistré une augmentation de 634,1 % du revenu net par rapport au Q3 2023, principalement en raison d'une perte contingente non récurrente de 9,5 millions de dollars l'année précédente. Cependant, le revenu net d'intérêts a diminué de 1,0 million de dollars et le revenu non lié aux intérêts a chuté de 0,9 million de dollars. La provision pour pertes sur créances s'est établie à 32,3 millions de dollars, avec un ratio sur les prêts totaux de 1,76 %.
Le PDG Vito S. Pantilione a noté une augmentation de l'activité de prêt, des projets de construction résidentielle stables et l'exploration de nouveaux marchés. Il a souligné l'importance de la qualité des actifs et de la gestion des dépenses non liées aux intérêts dans un contexte d'incertitudes économiques et de tensions géopolitiques.
Parke Bancorp hat die Ergebnisse für das Q3 2024 veröffentlicht mit einem Nettogewinn von 7,5 Millionen Dollar, was einem Anstieg von 16,3% im Vergleich zum Q2 2024 entspricht. Der Umsatz stieg um 5,2% auf 33,0 Millionen Dollar. Die Gesamtsumme der Vermögenswerte wuchs um 2,1% auf 2,07 Milliarden Dollar, während die Gesamtdarlehen um 2,9% auf 1,84 Milliarden Dollar anstiegen. Die Einlagen stiegen um 0,4% auf 1,56 Milliarden Dollar.
Das Unternehmen verzeichnete einen Anstieg des Nettogewinns um 634,1% im Vergleich zum Q3 2023, hauptsächlich aufgrund eines nicht wiederkehrenden, bedingten Verlustes von 9,5 Millionen Dollar im Vorjahr. Der Nettozinsertrag sank jedoch um 1,0 Millionen Dollar, und der nicht zinstragende Ertrag fiel um 0,9 Millionen Dollar. Die Rückstellungen für Kreditausfälle beliefen sich auf 32,3 Millionen Dollar, was einem Verhältnis zu den Gesamtdarlehen von 1,76% entspricht.
CEO Vito S. Pantilione bemerkte eine steigende Aktivität bei Darlehen, stabile Wohnbauprojekte und die Erschließung neuer Märkte. Er betonte den Fokus auf die Vermögensqualität und das Management der nicht zinstragenden Kosten inmitten wirtschaftlicher Unsicherheiten und geopolitischer Spannungen.
- Net income increased 16.3% quarter-over-quarter to $7.5 million
- Revenue grew 5.2% to $33.0 million in Q3 2024
- Total assets increased 2.1% to $2.07 billion
- Total loans rose 2.9% to $1.84 billion
- Deposits increased 0.4% to $1.56 billion
- Book value per common share improved to $24.92 from $23.75 at year-end 2023
- Net interest income decreased by $1.0 million or 6.1% year-over-year
- Non-interest income fell by $0.9 million or 50.9% compared to Q3 2023
- Nonperforming loans increased by $4.9 million or 68.0% from year-end 2023
- Ratio of allowance for credit losses to non-performing loans decreased to 264.9% from 442.5% at year-end 2023
Insights
Parke Bancorp's Q3 2024 results show a mixed performance with some positive indicators and areas of concern:
- Net income increased by
16.3% quarter-over-quarter to$7.5 million , primarily due to a non-recurring contingent loss in Q3 2023. - Revenue grew by
5.2% to$33.0 million in Q3 2024. - Total assets increased by
2.1% to$2.07 billion , driven by loan growth. - However, net interest income decreased by
6.1% year-over-year and non-interest income fell by50.9% . - Nonperforming loans increased significantly by
68.0% to$12.2 million , representing0.66% of total loans.
The bank's focus on asset quality and expense control is important given the rising nonperforming loans. The CEO's outlook suggests cautious optimism, with potential opportunities in residential construction and new markets, but also acknowledges geopolitical risks that could impact the economy.
Parke Bancorp's performance reflects broader industry trends and economic conditions:
- The 50 basis point interest rate cut by the Federal Reserve in September 2024 could help ease pressure on net interest margins, which have been squeezed due to higher funding costs.
- The
2.9% increase in total loans to$1.84 billion indicates continued demand for credit, particularly in construction and multi-family sectors. - The
0.4% growth in deposits to$1.56 billion , with a shift towards higher-cost time deposits, suggests ongoing competition for funding. - The increase in nonperforming loans warrants attention, as it could signal potential credit quality issues in the loan portfolio.
Investors should monitor the bank's ability to maintain loan growth while managing credit quality, especially given the uncertain economic environment and geopolitical tensions mentioned by the CEO. The bank's exploration of new markets and addition of experienced loan officers could support future growth but may also introduce new risks.
Highlights: | ||||
Net Income: | ||||
Revenue: | ||||
Total Assets: | ||||
Total Loans: | ||||
Total Deposits: | ||||
Highlights for the three and nine months ended September 30, 2024:
- Net income available to common shareholders was
$7.5 million $0.63 $0.62 $6.5 million 634.1% , compared to net income available to common shareholders of$1.0 million $0.09 $0.08 $9.5 million $1.0 million $0.9 million $0.4 million - Net interest income decreased
$1.0 million 6.1% , to$14.7 million $15.7 million - The Company recorded a credit to provision for credit losses of
$0.1 million $0.3 million - Non-interest income decreased
$0.9 million 50.9% , to$0.9 million $1.8 million - Non-interest expense decreased
$9.5 million 59.8% , to$6.4 million $15.8 million - Net income available to common shareholders was
$20.1 million $1.68 $1.66 $0.2 million 0.8% , compared to net income available to common shareholders of$20.3 million $1.70 $1.67 - Net interest income decreased
$5.6 million 11.5% , to$43.1 million $48.7 million - The provision for credit losses increased
$2.1 million 134.1% , to$0.5 million $1.6 million - Non-interest income decreased
$2.1 million 39.3% , to$3.2 million $5.2 million - Non-interest expense decreased
$9.8 million 34.0% , to$19.1 million $29.0 million
The following is a recap of the significant items that impacted the three and nine months ended September 30, 2024:
Interest income increased
Interest expense increased
The Company booked a recovery of the provision for credit losses of
Non-interest income decreased
Non-interest expense decreased
Income tax expense increased
September 30, 2024 discussion of financial condition
- Total assets increased to
$2.07 billion $2.02 billion $41.9 million 2.07% , primarily due to an increase in net loans, partially offset by a decrease in cash and cash equivalents. - Cash and cash equivalents totaled
$172.4 million $180.4 million - The investment securities portfolio decreased to
$15.3 million $16.4 million $1.1 million 6.8% , primarily due to pay downs of securities. - Gross loans increased
$52.6 million 2.9% , to$1.84 billion - Nonperforming loans at September 30, 2024 increased to
$12.2 million 0.66% of total loans, an increase of$4.9 million 68.0% , from$7.3 million $1.6 million 0.67% and0.44% of total assets at September 30, 2024 and December 31, 2023, respectively. Loans past due 30 to 89 days were$1.2 million $0.9 million - The allowance for credit losses was
$32.3 million $32.1 million 1.76% at September 30, 2024, and1.80% at December 31, 2023. The ratio of allowance for credit losses to non-performing loans was264.9% at September 30, 2024, compared to442.5% , at December 31, 2023. - Total deposits were
$1.56 billion $1.55 billion $6.1 million 0.4% compared to December 31, 2023. The increase in deposits was primarily driven by an increase in brokered time deposits of$48.4 million $21.4 million $33.7 million $25.5 million - Total borrowings increased
$20.1 million $188.3 million $168.1 million $20.0 million - Total equity increased to
$296.5 million $284.3 million $12.1 million 4.3% , primarily due to the retention of earnings, partially offset by the payment of$6.4 million $24.92 $23.75
CEO outlook and commentary
Vito S. Pantilione, President and Chief Executive Officer of Parke Bancorp, Inc. and Parke Bank, provided the following statement:
"After much speculation and conflicting projections by many economists and other experts, in September 2024 the Federal Reserve reduced interest rates by 50 basis points. In its statement, the Federal Reserve indicated its belief that inflation is going in the right direction and that employment growth is under control. The Federal Reserve further stated that additional rate cuts are possible in the remainder of 2024 and 2025. However, increased geopolitical conflicts with
"As reported last quarter, we are seeing an increase in loan activity. Residential construction projects continue to be surprisingly stable and growing. We are also exploring new markets to support growth in our loan portfolio, as well as adding new, experienced commercial loan officers in our lending markets."
"Asset quality and non-interest expense continue to be a primary focus for our bank. While lending is inherently risky, we mitigate that risk with strong loan underwriting and Allowance for Credit Losses. It remains difficult to predict the future, but we are committed to working hard, maintaining tight controls on our non-interest expenses, and continuing to monitor opportunities that may arise in the market."
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 a strong capital base, strong earning and strict cost controls; 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 loan portfolio; our ability to continue to increase shareholders' equity, maintain strong loan underwriting and allowance for credit losses; our ability to react quickly to any increase in loan delinquencies; our ability to face current challenges in the market; our ability to be well positioned to take advantage of opportunities; our ability to continue to reduce our nonperforming loans and delinquencies and the expenses associated with them; our ability to increase the rate of growth of our loan portfolio; our ability to continue to improve net interest margin; our ability to enhance shareholder value in the future; our ability to continue growing our Company, our earnings and shareholders' equity; the possibility of additional corrective actions or limitations on the operations of the Company. and Parke Bank being imposed by banking regulators, therefore, readers should not place undue reliance on any forward-looking statements. The Company 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 | |||
September 30, | December 31, | ||
2024 | 2023 | ||
(Dollars in thousands) | |||
Assets | |||
Cash and cash equivalents | $ 172,449 | $ 180,376 | |
Investment securities | 15,269 | 16,387 | |
Loans, net of unearned income | 1,839,929 | 1,787,340 | |
Less: Allowance for credit losses | (32,318) | (32,131) | |
Net loans | 1,807,611 | 1,755,210 | |
Premises and equipment, net | 5,365 | 5,579 | |
Bank owned life insurance (BOLI) | 28,904 | 28,415 | |
Other assets | 35,811 | 37,534 | |
Total assets | $ 2,065,409 | $ 2,023,500 | |
Liabilities and Equity | |||
Non-interest bearing deposits | $ 198,499 | $ 232,189 | |
Interest bearing deposits | 1,360,384 | 1,320,638 | |
FHLBNY borrowings | 145,000 | 125,000 | |
Subordinated debentures | 43,253 | 43,111 | |
Other liabilities | 21,813 | 18,245 | |
Total liabilities | 1,768,949 | 1,739,183 | |
Total shareholders' equity | 296,460 | 284,317 | |
Total liabilities and equity | $ 2,065,409 | $ 2,023,500 | |
Table 2: Consolidated Income Statements (Unaudited) | |||||||
For the three months ended | For the nine months ended | ||||||
2024 | 2023 | 2024 | 2023 | ||||
(Dollars in thousands, except per share data) | |||||||
Interest income: | |||||||
Interest and fees on loans | $ 30,161 | $ 27,294 | $ 86,976 | $ 77,602 | |||
Interest and dividends on investments | 265 | 308 | 761 | 745 | |||
Interest on deposits with banks | 1,696 | 1,512 | 4,050 | 4,059 | |||
Total interest income | 32,122 | 29,114 | 91,787 | 82,406 | |||
Interest expense: | |||||||
Interest on deposits | 14,983 | 11,385 | 42,123 | 28,046 | |||
Interest on borrowings | 2,416 | 2,046 | 6,575 | 5,661 | |||
Total interest expense | 17,399 | 13,431 | 48,698 | 33,707 | |||
Net interest income | 14,723 | 15,683 | 43,089 | 48,699 | |||
Provision for (recovery of) credit losses | (141) | 300 | 546 | (1,600) | |||
Net interest income after provision for (recovery of) credit losses | 14,864 | 15,383 | 42,543 | 50,299 | |||
Non-interest income | |||||||
Service fees on deposit accounts | 321 | 1,003 | 1,059 | 3,149 | |||
Gain on sale of SBA loans | (2) | — | 23 | — | |||
Other loan fees | 217 | 192 | 619 | 611 | |||
Bank owned life insurance income | 166 | 153 | 488 | 443 | |||
Other | 199 | 449 | 974 | 972 | |||
Total non-interest income | 901 | 1,835 | 3,163 | 5,213 | |||
Non-interest expense | |||||||
Compensation and benefits | 3,178 | 2,834 | 9,466 | 9,414 | |||
Professional services | 645 | 659 | 1,641 | 1,746 | |||
Occupancy and equipment | 630 | 649 | 1,943 | 1,938 | |||
Data processing | 348 | 368 | 978 | 1,037 | |||
FDIC insurance and other assessments | 319 | 388 | 973 | 960 | |||
OREO expense | 187 | 240 | 776 | 610 | |||
Other operating expense | 1,058 | 10,711 | 3,358 | 13,276 | |||
Total non-interest expense | 6,365 | 15,849 | 19,135 | 28,981 | |||
Income before income tax expense | 9,400 | 1,369 | 26,571 | 26,531 | |||
Income tax expense | 1,892 | 340 | 6,457 | 6,242 | |||
Net income attributable to Company | 7,508 | 1,029 | 20,114 | 20,289 | |||
Less: Preferred stock dividend | (5) | (7) | (16) | (20) | |||
Net income available to common shareholders | $ 7,503 | $ 1,022 | $ 20,098 | $ 20,269 | |||
Earnings per common share | |||||||
Basic | $ 0.63 | $ 0.09 | $ 1.68 | $ 1.70 | |||
Diluted | $ 0.62 | $ 0.08 | $ 1.66 | $ 1.67 | |||
Weighted average common shares outstanding | |||||||
Basic | 11,959,546 | 11,945,844 | 11,960,173 | 11,945,144 | |||
Diluted | 12,153,393 | 12,131,825 | 12,134,828 | 12,137,208 | |||
Table 3: Operating Ratios (unaudited) | |||||||
Three months ended | Nine months ended | ||||||
September 30, | September 30, | ||||||
2024 | 2023 | 2024 | 2023 | ||||
Return on average assets | 1.49 % | 0.21 % | 1.37 % | 1.38 % | |||
Return on average common equity | 10.08 % | 1.43 % | 9.20 % | 9.77 % | |||
Interest rate spread | 1.88 % | 2.24 % | 1.91 % | 2.51 % | |||
Net interest margin | 2.97 % | 3.21 % | 2.99 % | 3.40 % | |||
Efficiency ratio* | 40.74 % | 90.47 % | 41.37 % | 53.76 % | |||
* 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 (unaudited) | |||
September 30, | December 31, | ||
2024 | 2023 | ||
(Amounts in thousands except ratio data) | |||
Allowance for credit losses on loans | $ 32,318 | $ 32,131 | |
Allowance for credit losses to total loans | 1.76 % | 1.80 % | |
Allowance for credit losses to non-accrual loans | 264.88 % | 442.51 % | |
Non-accrual loans | $ 12,201 | $ 7,261 | |
OREO | $ 1,562 | $ 1,550 | |
View original content:https://www.prnewswire.com/news-releases/parke-bancorp-inc-announces-third-quarter-2024-earnings-302279333.html
SOURCE Parke Bancorp, Inc.
FAQ
What was Parke Bancorp's (PKBK) net income for Q3 2024?
How much did Parke Bancorp's (PKBK) total assets grow in Q3 2024?
What was the percentage increase in Parke Bancorp's (PKBK) total loans for Q3 2024?
How did Parke Bancorp's (PKBK) deposits change in Q3 2024?
What was Parke Bancorp's (PKBK) book value per common share as of September 30, 2024?
