Breaking Down Parke Bancorp, Inc. (PKBK) Financial Health: Key Insights for Investors

Are you keeping a close watch on your investments and looking for a detailed analysis of a specific financial institution? Have you considered how Parke Bancorp, Inc. (PKBK) is performing and what factors are driving its financial health? In the first quarter of 2025, PKBK reported a strong net income of $7.8 million, marking a substantial 26.5% increase from Q1 2024. With total assets remaining stable at $2.14 billion and an improved efficiency ratio of 37.1%, let’s delve into the key insights that can help you make informed decisions about PKBK's financial standing.

Parke Bancorp, Inc. (PKBK) Revenue Analysis

Understanding Parke Bancorp, Inc.'s revenue streams is crucial for investors seeking insights into the bank's financial health and stability. A detailed breakdown of revenue sources, growth rates, and segment contributions offers a comprehensive view of the bank's financial performance. For further insights, you might find this resource helpful: Breaking Down Parke Bancorp, Inc. (PKBK) Financial Health: Key Insights for Investors.

Parke Bancorp, Inc. primarily generates revenue through interest income from loans and investments, as well as non-interest income from services such as fees and commissions. Analyzing these revenue streams provides a clear picture of the bank's operational efficiency and profitability.

To provide a clearer picture, here's the breakdown:

• Interest Income: This includes revenue generated from loans (commercial, residential, and consumer) and investment securities.
• Non-Interest Income: This encompasses fees for services like deposit accounts, wealth management, and other banking services.

A review of Parke Bancorp, Inc.'s financial statements will provide specific figures for the most recent fiscal year. Here is a sample table that represents how revenue streams can be broken down, though the actual figures would need to be sourced from the company's reports:

Year-over-year revenue growth is a critical indicator of Parke Bancorp, Inc.'s performance. Examining historical trends allows investors to assess the bank's ability to increase its revenue over time. The percentage increase or decrease in revenue from one year to the next highlights the bank's growth trajectory and its responsiveness to market conditions. For example, if Parke Bancorp, Inc. increased its total revenue from $50 million in 2023 to $55 million in 2024, the year-over-year growth rate would be 10%.

Understanding the contribution of different business segments to Parke Bancorp, Inc.'s overall revenue is essential for identifying key drivers of growth. By analyzing the revenue generated by each segment, investors can determine which areas of the bank are performing well and which may require attention. This analysis helps in assessing the bank's strategic focus and its ability to capitalize on market opportunities. For example, if commercial lending contributes 60% of the total revenue, it indicates the significance of this segment to the bank's financial performance.

Significant changes in Parke Bancorp, Inc.'s revenue streams can indicate strategic shifts or responses to market dynamics. Analyzing these changes helps investors understand the bank's adaptability and its ability to navigate challenges. For instance, a noticeable increase in non-interest income could suggest a strategic effort to diversify revenue sources and reduce reliance on interest income. Keep an eye on announcements of new services, shifts in loan portfolios, or changes in fee structures, as these can all signal important developments.

Parke Bancorp, Inc. (PKBK) Profitability Metrics

Understanding Parke Bancorp, Inc. (PKBK)'s profitability involves examining several key metrics that provide insights into the company's financial health and operational efficiency. These metrics include gross profit, operating profit, and net profit margins, as well as their trends over time. Comparing these profitability ratios with industry averages helps to benchmark Parke Bancorp, Inc. (PKBK)'s performance against its peers. Analysis of operational efficiency, such as cost management and gross margin trends, further refines the understanding of the company's ability to generate profit.

For the year 2024, Parke Bancorp, Inc. (PKBK) reported a net income of $34.9 million. The bank's performance is further highlighted by its return on average assets (ROAA) of 1.24% and a return on average equity (ROAE) of 11.16%. These figures reflect Parke Bancorp's efficiency in utilizing its assets and equity to generate profits.

Here's a snapshot of Parke Bancorp, Inc.'s key profitability metrics:

• Net Interest Income (NII): $77.8 million
• Net Income: $34.9 million
• Return on Average Assets (ROAA): 1.24%
• Return on Average Equity (ROAE): 11.16%

To provide a more detailed view, the following table summarizes Parke Bancorp, Inc.'s financial performance, including key income statement figures:

Further insights into Parke Bancorp, Inc.'s investor profile can be found at: Exploring Parke Bancorp, Inc. (PKBK) Investor Profile: Who’s Buying and Why?

By evaluating these metrics and comparing them against industry benchmarks, investors and analysts can gain a comprehensive understanding of Parke Bancorp, Inc.'s financial health and its ability to deliver value.

Parke Bancorp, Inc. (PKBK) Debt vs. Equity Structure

Understanding Parke Bancorp, Inc.'s (PKBK) approach to financing its operations and growth through debt and equity is crucial for investors. This involves analyzing the levels of debt the company holds, comparing its debt-to-equity ratio against industry benchmarks, and noting any recent activities related to debt, such as issuances or refinancing.

As of the fiscal year 2024, Parke Bancorp, Inc. (PKBK) demonstrates a financial structure that balances debt and equity. While specific figures for long-term and short-term debt for 2024 were not available in the provided search results, analyzing the debt-to-equity ratio can offer insights into the company's financial leverage.

Here's a general overview of what these aspects entail:

• Overview of Debt Levels: This includes examining both long-term debt (obligations lasting more than a year) and short-term debt (due within a year). The balance between these indicates the company’s immediate and future financial obligations.
• Debt-to-Equity Ratio: This ratio compares a company's total debt to its shareholder equity. It's a key metric for assessing financial leverage. A higher ratio indicates that the company is financing more of its growth with debt, which can increase risk. A lower ratio suggests a more conservative approach.
• Recent Debt Activities: Any recent debt issuances, updates to credit ratings, or refinancing actions provide insight into how Parke Bancorp, Inc. (PKBK) is managing its debt and capital structure.
• Balance Between Debt and Equity: How Parke Bancorp, Inc. (PKBK) chooses to fund its operations—whether through debt or equity—reflects its financial strategy and risk tolerance. More reliance on debt can amplify returns but also increases financial risk.

Additional resources, such as Parke Bancorp, Inc.'s (PKBK) investor relations page, may provide detailed figures on its debt structure and financial strategies. Furthermore, understanding the company's mission, vision, and core values can provide additional context to its financial decisions: Mission Statement, Vision, & Core Values of Parke Bancorp, Inc. (PKBK).

For the fiscal year 2023, Parke Bancorp, Inc. (PKBK) reported a debt to equity ratio of 0.14. This indicates a conservative approach to financial leverage, suggesting that the company relies more on equity than debt to finance its assets. While specific long-term and short-term debt figures for 2024 were not available in the search results, this ratio provides a benchmark for understanding the company's financial risk profile.

Without updated 2024 specifics, analysts and investors often compare these ratios with industry averages to determine if Parke Bancorp, Inc.'s (PKBK) financial structure is aligned with its peers. Such comparisons help assess whether the company is taking on more or less risk relative to others in the banking sector.

The following table provides a simplified illustration of potential debt and equity components (note: this is an example and not the actual 2024 data):

It is essential to consult Parke Bancorp, Inc.'s (PKBK) official financial statements and investor relations materials for the most accurate and up-to-date information.

Parke Bancorp, Inc. (PKBK) Liquidity and Solvency

Liquidity and solvency are critical indicators of a financial institution's ability to meet its short-term and long-term obligations. Assessing these metrics for Parke Bancorp, Inc. (PKBK) provides valuable insights into its financial health and stability.

Assessing Parke Bancorp, Inc.'s Liquidity:

Analyzing Parke Bancorp, Inc.'s liquidity involves examining key ratios and cash flow trends to determine its ability to cover its immediate liabilities.

• Current and Quick Ratios: These ratios measure a company's ability to pay off its short-term liabilities with its current assets. A higher ratio generally indicates better liquidity.
• Analysis of Working Capital Trends: Monitoring the changes in working capital (current assets minus current liabilities) over time can reveal whether a company's short-term financial health is improving or deteriorating.
• Cash Flow Statements Overview: A review of the cash flow statement provides insights into the sources and uses of cash. It is broken down into three main activities:
  • Operating Cash Flow: Cash generated from the company's core business activities.
  • Investing Cash Flow: Cash used for investments in assets like property, plant, and equipment (PP&E).
  • Financing Cash Flow: Cash from activities related to debt, equity, and dividends.
• Potential Liquidity Concerns or Strengths: Identifying any red flags or positive indicators in the liquidity position helps investors understand the company's ability to manage its short-term financial needs.

For example, by examining the most recent financial statements, one can calculate the current and quick ratios to gauge immediate liquidity. Trends in working capital can highlight whether Parke Bancorp, Inc. is efficiently managing its short-term assets and liabilities. A consistent positive operating cash flow is generally a sign of a healthy business, while significant outflows in investing activities might indicate substantial capital expenditures.

Here's an example of how liquidity ratios might be presented (Note: This is for illustrative purposes; refer to Parke Bancorp, Inc.'s actual financial statements for precise data):

In this illustrative table, both the Current and Quick Ratios show slight improvements from 2023 to 2024, suggesting a strengthening liquidity position for Parke Bancorp, Inc.

Understanding Parke Bancorp, Inc.'s investor profile can provide additional context to its financial decisions. To learn more, visit: Exploring Parke Bancorp, Inc. (PKBK) Investor Profile: Who’s Buying and Why?

Parke Bancorp, Inc. (PKBK) Valuation Analysis

Determining whether Parke Bancorp, Inc. (PKBK) is overvalued or undervalued requires a look at several key financial metrics and market indicators.

Here's an overview:

• Price-to-Earnings (P/E) Ratio: PKBK's P/E ratio is around 7.72 to 9.05, which is lower than the market average of about 21.38 and the finance sector average of 21.67. A lower P/E ratio generally suggests that a stock might be undervalued relative to its earnings.
• Price-to-Book (P/B) Ratio: The P/B ratio for PKBK is approximately 0.69 to 0.94. A P/B ratio under 1 can indicate that the stock is undervalued, as it suggests the market price is less than the company's net asset value.
• Enterprise Value-to-EBITDA (EV/EBITDA): The EV/EBITDA ratio is reported as 0.00 or unavailable in some sources, while another source states 24.94. The first value indicates that the enterprise value is not significantly related to its EBITDA.

To get more insights about Parke Bancorp, Inc. (PKBK) Investor Profile please visit: Exploring Parke Bancorp, Inc. (PKBK) Investor Profile: Who’s Buying and Why?

Here's a brief table summarizing these valuation ratios:

These metrics suggest PKBK could be undervalued.

Stock Price Trends: Over the past 52 weeks, PKBK's stock has traded between $15.24 and $24.29. As of April 2025, the stock price is around $17.54. Recent performance includes:

• 3 Months: -14.08%
• 6 Months: -19.29%
• 1 Year: 5.54%

The stock has experienced volatility with negative returns over the shorter term but shows a positive return over the past year.

Dividend Yield and Payout Ratios:

• Dividend Yield: PKBK has a dividend yield of approximately 3.91% to 4.13%.
• Dividend Per Share: The company declared a cash dividend of $0.18 per share for April 2025.
• Payout Ratio: The dividend payout ratio is around 31.31% to 31.76%, indicating that dividends are well-covered by earnings.

PKBK’s dividend yield is attractive, and its payout ratio suggests the dividend is sustainable.

Analyst Consensus: There's limited recent analyst coverage for Parke Bancorp. The consensus rating and price target information are not readily available, suggesting a lack of strong analyst coverage.

Keep in mind:

• A recent revenue decline of 14.63% was noted in the last twelve months.
• The company's financial health is rated as 'FAIR' according to InvestingPro metrics.

Parke Bancorp, Inc. (PKBK) Risk Factors

Understanding the risk factors that Parke Bancorp, Inc. (PKBK) faces is crucial for investors. These risks can be categorized into internal and external factors that impact the company's financial health. Below is an overview of these risks, drawing from recent earnings reports and filings.

Overview of Internal and External Risks:

Parke Bancorp, Inc. (PKBK), like all financial institutions, is subject to a variety of risks that could materially affect its financial condition, results of operations, and future prospects. These risks include, but are not limited to, credit risk, interest rate risk, liquidity risk, operational risk, and regulatory risk.

• Industry Competition: The banking industry is highly competitive. Parke Bancorp, Inc. (PKBK) competes with other banks, credit unions, and non-bank financial service providers. Increased competition could lead to lower margins and reduced profitability.
• Regulatory Changes: Banks are subject to extensive federal and state regulations. Changes in these regulations can impact compliance costs and business operations.
• Market Conditions: Economic downturns, changes in interest rates, and other market conditions can affect the demand for loans and other financial products, impacting Parke Bancorp, Inc.'s (PKBK) revenue and profitability.

Discussion of Operational, Financial, or Strategic Risks:

Recent earnings reports and filings highlight several key risks for Parke Bancorp, Inc. (PKBK):

• Credit Risk: This is the risk of loss arising from a borrower's failure to repay a loan. Parke Bancorp, Inc. (PKBK) manages credit risk by carefully underwriting loans and monitoring loan performance.
• Interest Rate Risk: This is the risk that changes in interest rates could reduce net interest income. Parke Bancorp, Inc. (PKBK) manages this risk by monitoring its interest rate exposure and adjusting its asset and liability mix as needed.
• Liquidity Risk: This is the risk that Parke Bancorp, Inc. (PKBK) will be unable to meet its obligations as they come due. The company manages liquidity risk by maintaining a portfolio of liquid assets and access to funding sources.

To provide a clearer picture, consider the following hypothetical risk assessment table:

Mitigation Strategies or Plans:

Parke Bancorp, Inc. (PKBK) employs several strategies to mitigate these risks:

• Credit Risk Management:
  • Thorough loan underwriting processes.
  • Regular monitoring of loan portfolios.
  • Diversification of loan portfolio to reduce concentration risk.
• Interest Rate Risk Management:
  • Monitoring interest rate sensitivity.
  • Adjusting asset and liability mix.
  • Using derivatives to hedge interest rate risk.
• Liquidity Risk Management:
  • Maintaining a portfolio of liquid assets.
  • Access to diverse funding sources.
  • Stress testing to assess liquidity needs under various scenarios.
• Operational Risk Management:
  • Implementing robust internal controls.
  • Investing in cybersecurity measures.
  • Business continuity planning.
• Regulatory Risk Management:
  • Maintaining a strong compliance program.
  • Staying informed about regulatory changes.
  • Working closely with regulators.

Understanding these risk factors and mitigation strategies is essential for investors assessing the financial health of Parke Bancorp, Inc. (PKBK). For more detailed insights, you can explore: Breaking Down Parke Bancorp, Inc. (PKBK) Financial Health: Key Insights for Investors

Parke Bancorp, Inc. (PKBK) Growth Opportunities

Parke Bancorp, Inc. (PKBK) is strategically positioned for future growth, driven by several key factors. Understanding these drivers, along with revenue projections and strategic initiatives, is crucial for investors.

Key growth drivers for Parke Bancorp, Inc. (PKBK) include:

• Market Expansion: Parke Bancorp, Inc. (PKBK) could benefit from expanding its presence in strategic markets.
• Strategic Partnerships: Collaborations with other financial institutions or businesses could broaden its service offerings and customer base.
• Product Innovation: Introducing new and tailored financial products to meet evolving customer needs can drive revenue growth.
• Acquisitions: Strategic acquisitions of smaller banks or financial service providers can rapidly increase market share and assets.

While specific future revenue growth projections and earnings estimates for Parke Bancorp, Inc. (PKBK) beyond 2024 are not available in the provided search results, analyzing the company's past performance and current strategies can offer insights. Investors should consult the company's financial reports and investor presentations for the most up-to-date projections.

Strategic initiatives that may drive future growth:

• Digital Transformation: Enhancing digital banking platforms to improve customer experience and operational efficiency.
• Community Engagement: Strengthening relationships with local communities to foster customer loyalty and attract new business.
• Sustainable Lending Practices: Focusing on environmentally and socially responsible lending to attract a growing segment of customers.

Parke Bancorp, Inc. (PKBK) possesses several competitive advantages that could support its growth trajectory:

• Strong Local Presence: Deep roots in its primary markets provide a competitive edge over larger national banks.
• Customer Relationships: Personalized service and strong customer relationships can lead to higher retention rates.
• Efficient Operations: Streamlined processes and cost-effective operations can boost profitability.

Here's a look at some key financial data from Parke Bancorp, Inc. (PKBK) based on available information:

For more detailed insights into Parke Bancorp, Inc. (PKBK)'s financial health, read: Breaking Down Parke Bancorp, Inc. (PKBK) Financial Health: Key Insights for Investors