Parke Bancorp Reports $7.8 Million Net Income in Q1 2025, 26.5% Increase Year-Over-Year

Parke Bancorp, Inc. reported a net income of $7.8 million for the first quarter of 2025, reflecting a 26.5% increase from $6.1 million in the same period last year. This growth translated to earnings per share of $0.66 for basic shares and $0.65 for diluted shares, compared to $0.51 for both in the prior year. The increase in profitability was primarily driven by a rise in net interest income, which reached $16.6 million, up 18.2% from $14.1 million a year earlier. This increase was attributed to higher interest and fees on loans, which rose by $3.4 million, alongside an increase in interest income from deposits with banks.

Total assets for Parke Bancorp stood at $2.14 billion as of March 31, 2025, a slight decrease of $0.4 million from the previous quarter. The decline was mainly due to a $12.5 million drop in cash and cash equivalents, offset by a $15 million increase in net loans, which totaled $1.88 billion. The company’s total liabilities decreased by $6.3 million to $1.84 billion, primarily due to a $40 million reduction in Federal Home Loan Bank of New York (FHLBNY) borrowings. Conversely, total deposits increased by $35.6 million, reaching $1.67 billion, driven by a significant rise in money market deposits.

In terms of operational metrics, the company reported a provision for credit losses of $0.6 million, up from $0.2 million in the prior year, reflecting an increase in the commercial loan portfolio. Non-interest income decreased to $0.8 million from $1.1 million, primarily due to lower service fees on deposit accounts. Non-interest expenses remained stable at $6.5 million, indicating effective cost management during the quarter.

Strategically, Parke Bancorp continues to focus on expanding its lending footprint, particularly in New Jersey and Pennsylvania, while also venturing into new markets such as New York and South Carolina. The company has maintained a strong capital position, with total equity increasing to $305.9 million, up from $300.1 million at the end of 2024. This growth was supported by retained earnings, despite the payment of $2.1 million in dividends.

Looking ahead, Parke Bancorp remains committed to enhancing its customer relationships and expanding its product offerings. The company acknowledges the potential impact of economic conditions, including interest rate fluctuations and market volatility, on its operations. Management emphasizes a cautious approach to growth, focusing on maintaining asset quality and managing risks associated with its lending activities.