Highlights: Net Income: $6.5 million for Q2 2024, increased 5.0% over Q1 2024 Revenue: $31.4 million for Q2 2024, increased 8.8% over Q1 2024 Total Assets:  $2.03 billion,  increased 0.2% over December 31, 2023 Total Loans:  $1.81 billion,  increased 1.0% over December 31, 2023 Total Deposits: $1.50 billion,  decreased 3.6% from December 31, 2023 WASHINGTON TOWNSHIP, N.J., July 19, 2024 /PRNewswire/ -- Parke Bancorp, Inc. ("Parke Bancorp" or the "Company") (NASDAQ: "PKBK"), the parent company of Parke Bank, announced its operating results for the three and six months ended June 30, 2024. Highlights for the three and six months ended June 30, 2024: Net income available to common shareholders was $6.5 million, or $0.54 per basic common share and $0.53 per diluted common share, for the three months ended June 30, 2024, a decrease of $1.7 million, or 20.6%, compared to net income available to common shareholders of $8.1 million, or $0.68 per basic common share and $0.67 per diluted common share, for the three months ended June 30, 2023. The decrease was primarily due to higher interest expense and lower non-interest income. Net interest income decreased $1.6 million, or 9.8%, to $14.3 million for the three months ended June 30, 2024, compared to $15.9 million for the same period in 2023. Provision for credit losses was $0.5 million for the three months ended June 30, 2024, compared to a provision for credit losses of $0.5 million for the same period in 2023. Non-interest income decreased $0.4 million, or 24.7%, to $1.2 million for the three months ended June 30, 2024, compared to $1.6 million for the same period in 2023. Non-interest expense decreased $0.2 million, or 2.2%, to $6.2 million for the three months ended June 30, 2024, compared to $6.4 million for the same period in 2023. Net income available to common shareholders was $12.6 million, or $1.05 per basic common share and $1.04 per diluted common share, for the six months ended June 30, 2024, a decrease of $6.7 million, or 34.6%, compared to net income available to common shareholders of $19.2 million, or $1.61 per basic common share and $1.59 per diluted common share, for the same period in 2023. The decrease is primarily due to increased interest expense on deposits, an increase in the provision for credit losses, and a decrease in non-interest income. Net interest income decreased $4.6 million, or 14.1%, to $28.4 million for the six months ended June 30, 2024, compared to $33.0 million for the same period in 2023. The provision for credit losses increased $2.6 million, or 136.2%, to $0.7 million for the six months ended June 30, 2024, compared to a recovery of provision for credit losses of $1.9 million for the same period in 2023. Non-interest income decreased $1.1 million, or 33.0%, to $2.3 million for the six months ended June 30, 2024, compared to $3.4 million for the same period in 2023. The following is a recap of the significant items that impacted the three and six months ended June 30, 2024: Interest income increased $2.9 million for the second quarter of 2024 compared to the same period in 2023, primarily due to an increase in interest and fees on loans of $3.0 million, or 11.5%, to $28.7 million, primarily driven by higher market interest rates.  This was partially offset by a decrease in interest earned on average deposits held at the Federal Reserve Bank ("FRB") of $0.1 million during the three months ended June 30, 2024, due to lower average balances being held on deposit.  For the six months ended June 30, 2024, interest income increased $6.4 million from the same period in 2023, primarily due to an increase in interest and fees on loans of $6.5 million, or 12.9%, to $56.8 million, primarily driven due to an increase in average outstanding loan balances, and higher market interest rates.  This was partially offset by a decrease in interest earned on average deposits held at the FRB of $0.2 million during the six months ended June 30, 2024, due to lower average balances held on deposit. Interest expense increased $4.5 million, or 39.3%, to $15.9 million for the three months ended June 30, 2024, compared to the same period in 2023, primarily due to higher market interest rates, combined with changes in the mix of deposits and borrowings.  For the six months ended June 30, 2024, interest expense increased $11.0 million, or 54.4%, to $31.3 million, primarily due to higher market interest rates, combined with changes in the mix of deposits and borrowings. The provision for credit losses was $0.5 million for the three months ended June 30, 2024, compared to a provision of $0.5 million for the same period in 2023.  The provision expense for the three months ended June 30, 2024, was primarily driven by an increase in the construction loan portfolio balance from the quarter ended March 31, 2024, which carries a higher loss factor than the other loan portfolios.  The provision for credit losses for the six months ended June 30, 2024, increased $2.6 million, or 136.2%, to $0.7 million, compared to a recovery of $1.9 million for the same period in 2023.  The increase was primarily driven by an increase in the outstanding loan balance of $17.8 million from the balance at December 31, 2023, specifically in the construction 1 - 4 family, and multi-family portfolio's.  The provision recovery of $1.9 million during the same period in 2023 was primarily related to decreases in loss factors related to the construction, commercial owner occupied, and residential 1 to 4 family investment portfolios. Non-interest income decreased $0.4 million, or 24.7%, for the three months ended June 30, 2024 compared to the same period in 2023, primarily as a result of a decrease in service fees on deposit accounts of $0.6 million, partially offset by an increase in other income of $0.2 million.  For the six months ended June 30, 2024, non-interest income decreased $1.1 million, or 33.0%, to $2.3 million, compared to the same period in 2023.  The decrease was primarily driven by a decrease in service fees on deposit accounts of $1.4 million, partially offset by an increase in other income of $0.3 million. Non-interest expense decreased $0.2 million, or 2.2%, for the three months ended June 30, 2024, compared to the same period in 2023, primarily driven by a decrease in other operating expenses of $0.2 million, and a decrease in data processing expenses of $0.1 million, partially offset by an increase in compensation and benefit expense of $0.1 million.  For the six months ended June 30, 2024, non-interest expense decreased $0.4 million, or 2.7%, to $12.8 million, compared to the same period in 2023.  The decrease in non-interest expense was primarily due to a decrease in compensation and benefits of $0.3 million, and a decrease in other operating expense of $0.3 million, partially offset by an increase in other real estate owned ("OREO") expense of $0.2 million. Income tax expense decreased $0.1 million for the three months ended June 30, 2024 compared to the same period in 2023.  For the six months ended June 30, 2024, income tax expense decreased $1.3 million, compared to the same period in 2023.  The effective tax rate for the three and six months ended June 30, 2024 was 26.6% and 26.6%, respectively, compared to 23.2% and 23.5% for the same periods in 2023. June 30, 2024 discussion of financial condition Total assets increased to $2.03 billion at June 30, 2024, from $2.02 billion at December 31, 2023, an increase of $3.6 million, or 0.18%, primarily due to an increase in net loans, partially offset by a decrease in cash and cash equivalents. Cash and cash equivalents totaled $167.7 million at June 30, 2024, as compared to $180.4 million at December 31, 2023. The decrease in cash and cash equivalents was primarily due to a decrease in deposits, and an increase in loan balance, partially offset by an increase in borrowings. The investment securities portfolio decreased to $15.5 million at June 30, 2024, from $16.4 million at December 31, 2023, a decrease of $0.9 million, or 5.4%, primarily due to pay downs of securities. Gross loans increased $17.8 million or 1.0%, to $1.8 billion at June 30, 2024. Nonperforming loans at June 30, 2024 decreased to $7.0 million, representing 0.39% of total loans, a decrease of $0.3 million, or 3.8%, from $7.3 million of nonperforming loans at December 31, 2023. OREO at June 30, 2024 was $1.6 million, unchanged from December 31, 2023. Nonperforming assets (consisting of nonperforming loans and OREO) represented 0.42% and 0.44% of total assets at June 30, 2024 and December 31, 2023, respectively. Loans past due 30 to 89 days were $5.1 million at June 30, 2024, an increase of $4.9 million from December 31, 2023, and increased mainly due to one commercial non-occupied loan with a principal balance of $3.8 million which became delinquent during the quarter ended June 30, 2024. The allowance for credit losses was $32.4 million at June 30, 2024, as compared to $32.1 million at December 31, 2023. The ratio of the allowance for credit losses to total loans was 1.80% at June 30, 2024 and at December 31, 2023. The ratio of allowance for credit losses to non-performing loans was 464.3% at June 30, 2024, compared to 442.5%, at December 31, 2023. Total deposits were $1.50 billion at June 30, 2024, down from $1.55 billion at December 31, 2023, a decrease of $56.4 million or 3.6% compared to December 31, 2023. The decrease in deposits was primarily driven by a decrease in non-interest demand deposits of $33.4 million, a decrease in savings deposits of $16.4 million, and a decrease in time deposits of $44.7 million, partially offset by an increase in money market deposits of $42.8 million. Total borrowings increased $50.1 million during the six months ended June 30, 2024, to $218.2 million at June 30, 2024 from $168.1 million at December 31, 2023, primarily due to $50.0 million of FHLBNY term borrowings. Total equity increased to $292.8 million at June 30, 2024, up from $284.3 million at December 31, 2023, an increase of $8.5 million, or 3.0%, primarily due to the retention of earnings, partially offset by the payment of $4.3 million of cash dividends. Tangible book value per common share at June 30, 2024 was $24.46, compared to $23.75 at December 31, 2023. CEO outlook and commentary Vito S. Pantilione, President and Chief Executive Officer of Parke Bancorp, Inc. and Parke Bank, ...