WASHINGTON TOWNSHIP, N.J., Jan. 23, 2015 /PRNewswire/ -- Parke Bancorp, Inc. ("Parke Bancorp") (NASDAQ: PKBK), the parent company of Parke Bank, announced its operating results for the quarter and year ended December 31, 2014.
Parke Bancorp reported net income available to common shareholders of $9.3 million, or $1.55 per common share and $1.32 per diluted common share, for the year ended December 31, 2014. This compares to $8.5 million, or $1.42 per common and diluted share, for the year ended December 31, 2013, an increase in net income of 9.6%. The 2014 diluted income per share calculation reflects the impact of the number of shares of common stock that would be issuable upon the full conversion of the convertible preferred shares issued at the end of 2013.
For the quarter ended December 31, 2014 net income available to common shareholders was $1.9 million, or $0.32 per common share and $0.28 per diluted common share, compared to net income of $3.1 million, or $0.51 per common and diluted common share for the quarter ended December 31, 2013, a decrease in quarterly net income of 38.1%.
The following is a recap of significant items that impacted the fourth quarter of 2014 compared to the same quarter last year: a $899,000 increase in gain on sale of loans; an $835,000 decrease in noninterest expense primarily attributable to lower Other Real Estate Owned ("OREO") expenses; a $143,000 decrease in net interest income, primarily attributable to lower yield on loans; and a $500,000 increase in provision for loan losses due to charge-downs of impaired loans. In addition, during this quarter last year, the Company repurchased its Series A Preferred Stock at a discount generating a gain of $1.95 million and also was required to write-down $1.0 million on three TruPS collateralized debt investment securities due to the Volcker Rule.
At December 31, 2014, Parke Bancorp's total assets increased to $821.7 million from $794.9 million at December 31, 2013, an increase of $26.8 million, or 3.4%, primarily due to an increase in loans.
Parke Bancorp's total loans increased to $713.1 million at December 31, 2014 from $654.5 million at December 31, 2013, an increase of $58.6 million or 8.9%.
At December 31, 2014, Parke Bancorp had $26.9 million in nonperforming loans representing 3.8% of total loans, a decrease from $35.9 million at December 31, 2013 or 25.2%. OREO at December 31, 2014 was $20.9 million, compared to $28.9 million at December 31, 2013 or 27.6%. OREO consisted of 19 properties, the largest being a condominium development in Absecon, NJ, recorded at $9.1 million. Nonperforming assets (consisting of nonperforming loans and OREO) represented 5.8% of total assets at December 31, 2014 as compared to 8.2% of total assets at December 31, 2013. Loans past due 30 to 89 days were $2.9 million at December 31, 2014, an increase of $736,000 from the previous quarter end.
At December 31, 2014, Parke Bancorp's allowance for loan losses was $18.0 million, as compared to $18.6 million at December 31, 2013. The ratio of allowance for loan losses to total loans was 2.5% at December 31, 2014 compared to 2.8% at December 31, 2013. The decrease is due to continuing improvements in the credit quality of the loan portfolio. The ratio of allowance for loan losses to non-performing loans improved to 67.1% at December 31, 2014, compared to 51.6%, at December 31, 2013.
Parke Bancorp's total investment securities portfolio decreased to $30.3 million at December 31, 2014 from $37.8 million at December 31, 2013, a decrease of $7.5 million or 19.7%. The decrease was primarily due to the sale of three TruPS collateralized debt investment securities.
At December 31, 2014, Parke Bancorp's total deposits were $647.9 million, up from $626.8 million at December 31, 2013, an increase of $21.1 million or 3.4%.
Parke Bancorp's total borrowings decreased to $62.8 million at December 31, 2014 from $68.7 million at December 31, 2013, a decrease of $5.9 million or 8.6%.
Total shareholders' equity increased to $102.9 million at December 31, 2014 from $93.7 million at December 31, 2013, an increase of $9.2 million or 9.8%, due to the retention of earnings.
Vito S. Pantilione, President and Chief Executive Officer of Parke Bancorp and Parke Bank, provided the following statement:
"We are very proud to report record earnings for the second straight year. Equally important is the substantial reduction in our Non-Performing Assets and OREO. It is important to again report that the reduction in these critical categories has been accomplished by working out troubled assets and not selling them for 20 or 30 cents on the dollar. We are averaging over an 80% recovery rate on troubled assets which helps preserve shareholder value. The expansion of our lending team helped support a 9% increase in our loan portfolio. We are proud that the strong performance of our Company supported the payment of quarterly cash dividends in 2014 further enhancing the investment of our shareholders."
Parke Bancorp, Inc. was incorporated in January 2005, while Parke Bank commenced operations in January 1999. Parke Bancorp and Parke Bank maintain their principal offices at 601 Delsea Drive, Washington Township, New Jersey. Parke Bank conducts business through a branch office in Northfield, New Jersey, two branch offices in Washington Township, New Jersey, a branch office in Galloway Township, New Jersey and a branch in center city Philadelphia. Parke Bank is a full service commercial bank, with an emphasis on providing personal and business financial services to individuals and small-sized businesses primarily in Gloucester, Atlantic and Cape May counties in New Jersey and Philadelphia and surrounding counties in Pennsylvania. Parke Bank's deposits are insured up to the maximum legal amount by the Federal Deposit Insurance Corporation (FDIC). Parke Bancorp's common stock is traded on the NASDAQ Capital Market under the symbol "PKBK".
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 including but not limited to: our ability to continue to generate strong net earnings; our ability to continue to reduce our NPAs and delinquencies and the expenses associated with them; our ability to realize a high recovery rate on disposition of troubled assets; our ability to take advantage of opportunities in the improving economy and banking environment; our ability to continue to pay a dividend in the future; our ability to enhance shareholder value in the future and our ability to continue to grow our loan portfolio, 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.
Statements of Condition Data
December 31, December 31, % Change
2014 2013
(in thousands)
Total Assets $821,706 $794,943 3.4%
Cash and cash
equivalents 36,238 45,661 -20.6%
Investment
securities 30,349 37,798 -19.7%
Loans, net of
unearned
income 713,061 654,541 8.9%
Deposits 647,933 626,798 3.4%
Borrowings 62,755 68,683 -8.6%
Total
shareholders'
equity 102,905 93,716 9.8%
Operating Ratios
Three Months Ended Twelve Months Ended
December 31, December 31,
2014 2013 2014 2013
Return on average assets 1.08% 0.74% 1.30% 1.01%
Return on average common
equity 9.16% 17.05% 11.74% 12.04%
Interest rate spread 3.99% 4.43% 4.43% 4.26%
Net interest margin 4.10% 4.53% 4.53% 4.36%
Efficiency ratio 51.06% 67.35% 47.06% 54.78%
Asset Quality Data
December 31, December 31,
2014 2013
(in thousands)
Allowance for loan losses $18,043 $18,560
Allowance for loan losses to
total loans 2.53% 2.84%
Non-accrual loans $26,892 $35,954
OREO $20,931 $28,910
Statements of Income Data
Three Months Ended Twelve Months Ended
December 31, December 31,
2014 2013 2014 2013
(in thousands)
Interest
and
dividend
income $9,373 $9,510 $38,132 $36,784
Interest
expense 1,372 1,366 5,579 5,795
Net
interest
income 8,001 8,144 32,553 30,989
Provision
for
loan
losses 1,000 500 3,250 2,700
Net
interest
income
after
provision
for
loan
losses 7,001 7,644 29,303 28,289
Non-
interest
income 1,116 7 7,631 3,426
Non-
interest
expense 4,655 5,490 18,911 18,852
Income
before
income
taxes 3,462 2,161 18,023 12,863
Provision
for
income
taxes 1,136 837 5,711 5,024
Net
income
attributable
to
Company
and
noncontrolling
(minority)
interests 2,326 1,324 12,312 7,839
Net
income
attributable
to
noncontrolling
(minority)
interests (120) 90 (1,839) (268)
Net
income
attributable
to
Company 2,206 1,414 10,473 7,571
Discount
on
retirement
of
preferred
stock - 1,948 - 1,948
Preferred
stock
dividend
and
discount (300) (284) (1,200) (1,058)
Net
income
available
to
common
shareholders 1,906 3,078 9,273 8,461
Basic
income
per
common
share 0.32 0.51 1.55 1.42
Diluted
income
per
common
share 0.28 0.51 1.32 1.42
Weighted
shares
-
basic 5,992,397 5,982,810 5,991,226 5,964,018
Weighted
shares
-
diluted 7,924,384 5,989,736 7,924,859 5,965,568
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SOURCE Parke Bancorp, Inc.
