The New Jersey bank said second-quarter earnings climbed to $12.2 million as loan yields and lower funding costs lifted net interest income, while nonperforming loans fell sharply from year-end levels.
Parke Bancorp reported net income available to common shareholders of $12.2 million, or $1.03 per diluted share, for the second quarter of 2026, up from $8.3 million, or $0.69 per diluted share, a year earlier, as net interest income increased and provision expense declined. Revenue for the quarter was $39.3 million, up 4.1% from the first quarter of 2026, while total assets rose to $2.30 billion, also up 4.1% from the prior quarter. Net interest income increased 28.8% year over year to $23.0 million, helped by higher interest and fees on loans and lower interest expense on deposits and borrowings. The provision for credit losses fell to $0.7 million from $1.0 million a year earlier, while non-interest income edged up to $0.88 million and non-interest expense rose to $6.9 million. For the first six months of 2026, net income available to common shareholders rose 50.0% to $24.1 million, or $2.02 per diluted share, from $16.1 million, or $1.34 per diluted share, in the same period of 2025. Net interest income for the six-month period increased 30.9% to $45.1 million, while the provision for credit losses declined to $0.9 million from $1.6 million. At June 30, 2026, total assets stood at $2.30 billion, up from $2.25 billion at December 31, 2025, as cash and cash equivalents increased to $204.7 million. Gross loans slipped 0.2% to $2.03 billion. Nonperforming loans fell to $5.4 million, or 0.27% of total loans, from $10.8 million at year-end, while other real estate owned increased to $6.8 million from $2.9 million. Total deposits were $1.76 billion, little changed from year-end, and total borrowings increased to $177.4 million from $143.4 million because of higher FHLBNY borrowings. Total equity rose to $346.9 million, supported by retained earnings and partly offset by $4.5 million in cash dividends. Parke said net interest margin was 4.17% in the second quarter, unchanged from the first quarter, and 4.17% for the first six months of 2026, up from 3.32% a year earlier. President and Chief Executive Officer Vito S. Pantilione said the bank delivered strong first-half results despite economic volatility tied to geopolitical tensions, inflation concerns and uncertainty over monetary policy.