Parke Bancorp's third-quarter profit rises 14.5% from a year earlier to $12.2 million

Parke Bancorp, Inc. said third-quarter 2026 net income available to common shareholders was $12.2 million, or $1.02 per diluted share, up 14.5% from $10.6 million a year earlier, as net interest income rose 14.2% to $23.0 million. Nine-month profit reached $36.2 million, an increase of 35.9%, with a net interest margin of 4.15% against 3.49% in the first nine months of 2025.

Net interest income growth outpaces the margin

The quarter's engine was the spread between loan income and deposit costs. Interest and fees on loans rose 6.1% from a year earlier to $37.0 million on higher market rates and larger average balances, while interest expense fell 4.3% to $15.6 million as deposit costs declined. Net interest income of $23.0 million was $2.9 million higher than a year earlier.

That produced a third-quarter net interest margin of 4.10%, up from 3.83% a year earlier but below the 4.17% the bank reported for the second quarter. Chief Executive Vito S. Pantilione noted that the Federal Reserve "increased interest rates by 25 basis points" during the quarter and said further increases "remain possible as inflationary pressures persist."

Sequentially, loans grew while net interest income held at $23.0 million. Gross loans were $2.10 billion at September 30, up 3.19% from $2.03 billion at June 30, reversing a 0.2% decline over the first half. Net income available to common shareholders was $12.2 million, 0.59% below the second quarter's $12.2 million, with diluted earnings per share of $1.02 against $1.03. The provision for credit losses rose 43.2% to $1.0 million from $700,000.

A larger provision while problem loans stay below year-end levels

The larger provision tracked loan growth rather than deterioration; Parke said the increase reflected a bigger rise in loan balances than in the same period of 2025. Asset quality was still better than at year-end, though nonperforming loans rose to $5.8 million, or 0.28% of total loans, from $5.4 million at June 30 and were down from $10.8 million at December 31, 2025. The $35.4 million allowance for credit losses covered 610.3% of them against 321.0% at year-end, equal to 1.69% of total loans. Other real estate owned rose $4.4 million from December 31, 2025 to $7.2 million, up from $6.8 million at June 30, and nonperforming assets were 0.56% of total assets against 0.61% at December 31.

Taxes absorbed more of the gain. Income tax expense rose $1.2 million in the quarter and $3.7 million over nine months, lifting the effective rate to 25.1% from 21.1% for the quarter and to 24.7% from 23.3% year to date. Across the nine months, a $13.5 million increase in net interest income and a $200,000 increase in non-interest income were partly offset by a $500,000 increase in non-interest expense and the tax increase.

Expense discipline and a bigger balance sheet

Non-interest expense fell 5.4% from a year earlier to $6.8 million. Professional services dropped $1.0 million, of which $300,000 was a transfer of OREO-related legal fees into OREO expense and $600,000 reflected lower consulting costs tied to Bank Secrecy Act work. The efficiency ratio, which the release defines as non-interest expense divided by net interest income plus non-interest income, improved for the quarter to 28.23% from 34.09%, and nine-month return on average assets was 2.16% against 1.68%.

Funding for the loan book came partly from wholesale sources. Total assets reached $2.33 billion, up 3.7% from $2.25 billion at December 31, 2025, with brokered deposits up $36.9 million and total borrowings up $35.0 million to $178.4 million. Shareholders' equity rose 9.7% from $324.5 million at December 31, 2025 to $356.1 million, after $6.9 million of dividends.

The next checkpoint

The release contains no numeric fourth-quarter or full-year forecast and no reference to an earnings call or analyst estimates; its outlook material is qualitative CEO commentary. On the pattern of the July 22 and October 21 filings, the next comparable disclosure should be the fourth-quarter and full-year 2026 report, a Form 8-K under Item 2.02 with an exhibit like this one; the second- and third-quarter 2026 versions carried datelines of July 22 and October 21.

Two lines in that document will say whether the third quarter was a pause or a turn: whether the margin, which slipped to 4.10% from 4.17%, stabilizes as the loan book grows, and whether other real estate owned keeps rising from $7.2 million while nonperforming loans stay near $5.8 million.