What changed in this filing

/stocks — the workspaceLOADING

Item 1. Financial Statements

2023-11-08 compared with 2023-08-09 · 107 added, 116 removed, 751 unchanged (23% of the section changed)

4 unchanged sentences

(Dollars in thousands except per share data)

September 30,

2023 December 31,

4 unchanged sentences

Investment securities available for sale, at fair value 7,271 9,366

Investment securities held to maturity (fair value of $ 7,828 at June 30,

Investment securities held to maturity (fair value of $ 7,285 at September 30,

2023 and $ 7,805 at December 31, 2022)

20 unchanged sentences

111,150 83,150

FRB advances 10,000 —

Subordinated debentures

6 unchanged sentences

Preferred stock, 1,000,000 shares authorized, $ 1,000 liquidation value Series B non-cumulative convertible;

445 shares outstanding at June 30, 2023 and December 31, 2022

445 shares outstanding at September 30, 2023 and December 31, 2022

Common stock, $ 0.10 par value;

authorized 15,000,000 shares;

12,231,193 shares and 12,225,097 shares at June 30, 2023 and December 31, 2022, respectively

12,231,193 shares and 12,225,097 shares at September 30, 2023 and December 31, 2022, respectively

Additional paid-in capital 136,547 136,201

1 unchanged sentence

Accumulated other comprehensive loss ( 643 ) ( 526 )

Treasury stock, 284,522 shares at June 30, 2023 and Dec.

31, 2022, at cost

Treasury stock, 284,522 shares at September 30, 2023 and December 31, 2022, at cost

( 3,015 ) ( 3,015 )

1 unchanged sentence

Total liabilities and shareholders' equity $ 1,983,672 $ 1,984,915

See accompanying notes to consolidated financial statements

See accompanying notes to the unaudited consolidated financial statements

Parke Bancorp Inc.

3 unchanged sentences

For the Three Months Ended

June 30, For the Six Months Ended

September 30, For the Nine Months Ended

September 30,

2023 2022 2023 2022

39 unchanged sentences

Diluted 12,131,825 12,170,144 12,137,208 12,178,572

See accompanying notes to consolidated financial statements

See accompanying notes to the unaudited consolidated financial statements

Parke Bancorp Inc.

3 unchanged sentences

For the Three Months Ended

June 30, For the Six Months Ended

September 30, For the Nine Months Ended

September 30,

2023 2022 2023 2022

Net income $ 8,130 $ 10,738 $ 19,260 $ 20,829

Unrealized (loss) gain on investment securities ( 61 ) ( 99 ) 22 ( 683 )

Tax impact on unrealized loss (gain) 16 25 ( 6 ) 176

Total unrealized (loss) gain on investment securities ( 45 ) ( 74 ) 16 ( 507 )

Net income attributable to the Company $ 1,029 $ 10,540 $ 20,289 $ 31,369

Unrealized loss on investment securities ( 179 ) ( 478 ) ( 157 ) ( 1,161 )

Tax impact on unrealized loss 46 123 40 299

Total unrealized loss on investment securities ( 133 ) ( 355 ) ( 117 ) ( 862 )

Comprehensive income attributable to the Company $ 896 $ 10,185 $ 20,172 $ 30,507

See accompanying notes to consolidated financial statements

See accompanying notes to the unaudited consolidated financial statements

Parke Bancorp, Inc.

2 unchanged sentences

(Dollars in thousands except share data)

Periods, ended June 30, 2023

Periods, ended September 30, 2023

Stock Shares of Common

1 unchanged sentence

Stock Additional

Other Comprehensive (Loss) Income Treasury

Other Comprehensive Loss Treasury

Stock Total Shareholders' Equity

Three Months Ended

Balance, March 31, 2023 $ 445 12,231,193 $ 1,223 $ 136,341 $ 138,577 $ ( 465 ) $ ( 3,015 ) $ 273,106

Balance, June 30, 2023 $ 445 12,231,193 $ 1,223 $ 136,447 $ 144,550 $ ( 510 ) $ ( 3,015 ) $ 279,140

Net income — — — — 1,029 — — 1,029

5 unchanged sentences

— — — — ( 2,150 ) — — ( 2,150 )

Balance, June 30, 2023

Balance, September 30, 2023

$ 445 12,231,193 $ 1,223 $ 136,547 $ 143,422 $ ( 643 ) $ ( 3,015 ) $ 277,979

Six Months Ended

Nine Months Ended

Balance, December 31, 2022 $ 445 12,225,097 $ 1,223 $ 136,201 $ 131,706 $ ( 526 ) $ ( 3,015 ) $ 266,034

2 unchanged sentences

Common stock options exercised — 6,096 — 33 — — — 33

Other comprehensive income — — — — — 16 — 16

Other comprehensive loss — — — — — ( 117 ) — ( 117 )

Stock compensation expense — — — 313 — — — 313

3 unchanged sentences

— — — — ( 6,451 ) — — ( 6,451 )

Balance, June 30, 2023

Balance, September 30, 2023

$ 445 12,231,193 $ 1,223 $ 136,547 $ 143,422 $ ( 643 ) $ ( 3,015 ) $ 277,979

(1) Dividends per share of $ 15.00 and $ 30.00 , respectively, were declared on series B preferred stock for the three and six months ended June 30, 2023.

(2) Dividends per share of $ 0.18 and $ 0.36 , respectively, were declared on common stock outstanding for the three and six months ended June 30, 2023.

See accompanying notes to consolidated financial statements

(1) Dividends per share of $ 15.00 and $ 45.00 , respectively, were declared on series B preferred stock for the three and nine months ended September 30, 2023.

(2) Dividends per share of $ 0.18 and $ 0.54 , respectively, were declared on common stock outstanding for the three and nine months ended September 30, 2023.

See accompanying notes to the unaudited consolidated financial statements

Parke Bancorp, Inc.

2 unchanged sentences

(Dollars in thousands except share data)

Periods, ended June 30, 2022

Periods, ended September 30, 2022

Stock Shares of Common Stock issued Common

4 unchanged sentences

Three Months Ended

Balance, March 31, 2022 $ 445 12,198,019 $ 1,220 $ 135,623 $ 106,194 $ ( 188 ) $ ( 3,015 ) $ 240,279

Balance, June 30, 2022 $ 445 12,199,483 $ 1,220 $ 135,709 $ 115,020 $ ( 262 ) $ ( 3,015 ) $ 249,117

Net income — — — — 10,540 — — 10,540

6 unchanged sentences

— — — — ( 2,144 ) — — ( 2,144 )

Balance, June 30, 2022 $ 445 12,199,483 $ 1,220 $ 135,709 $ 115,020 $ ( 262 ) $ ( 3,015 ) $ 249,117

Six Months Ended

Balance, September 30, 2022 $ 445 12,207,097 $ 1,221 $ 135,885 $ 123,409 $ ( 617 ) $ ( 3,015 ) $ 257,328

Nine Months Ended

Balance, December 31, 2021 $ 445 12,182,081 $ 1,218 $ 135,451 $ 98,017 $ 245 $ ( 3,015 ) $ 232,361

7 unchanged sentences

— — — — ( 5,957 ) — — ( 5,957 )

Balance, June 30, 2022 $ 445 12,199,483 $ 1,220 $ 135,709 $ 115,020 $ ( 262 ) $ ( 3,015 ) $ 249,117

(1) Dividends per share of $ 15.00 and $ 30.00 , respectively, were declared on series B preferred stock for the three and six months ended June 30, 2022.

(2) Dividends per share of $ 0.16 and $ 0.32 , respectively, were declared on common stock outstanding for the three and six months ended June 30, 2022.

See accompanying notes to consolidated financial statements

Balance, September 30, 2022 $ 445 12,207,097 $ 1,221 $ 135,885 $ 123,409 $ ( 617 ) $ ( 3,015 ) $ 257,328

(1) Dividends per share of $ 15.00 and $ 45.00 , respectively, were declared on series B preferred stock for the three and nine months ended September 30, 2022.

(2) Dividends per share of $ 0.18 and $ 0.50 , respectively, were declared on common stock outstanding for the three and nine months ended September 30, 2022.

See accompanying notes to the unaudited consolidated financial statements

Parke Bancorp Inc.

2 unchanged sentences

(Dollars in thousands)

For the Six Months Ended

For the Nine Months Ended

September 30,

Cash Flows from Operating Activities:

12 unchanged sentences

(Increase) decrease in accrued interest receivable and other assets ( 5,738 ) 226

Increase (decrease) in accrued interest payable and other accrued liabilities 186 ( 808 )

Increase in accrued interest payable and other accrued liabilities 910 1,769

Net cash provided by operating activities 13,984 34,297

11 unchanged sentences

Proceeds from exercise of stock options 33 185

Increase in FHLBNY short-term borrowings 103,000 —

Increase in Federal Reserve short-term borrowings 10,000 —

Increase in FHLBNY long-term borrowings 20,000 —

Net increase (decrease) in FHLBNY short-term borrowings 8,000 ( 5,000 )

Net decrease in noninterest-bearing deposits ( 121,430 ) ( 159,957 )

Net decrease in interest-bearing deposits ( 48,042 ) ( 61,593 )

Net increase (decrease) in interest-bearing deposits 78,430 ( 73,224 )

Net cash used in financing activities ( 21,438 ) ( 245,883 )

1 unchanged sentence

Cash and Cash Equivalents, January 1, 182,150 596,553

Cash and Cash Equivalents, June 30, $ 137,497 $ 393,241

Cash and Cash Equivalents, September 30, $ 126,740 $ 193,344

Supplemental Disclosure of Cash Flow Information:

4 unchanged sentences

Accrued dividends payable $ 2,157 $ 2,151

See accompanying notes to consolidated financial statements

See accompanying notes to the unaudited consolidated financial statements

Notes to Consolidated Financial Statements (Unaudited)

16 unchanged sentences

The accompanying interim financial statements should be read in conjunction with the annual financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2022.

The accompanying interim financial statements for the three and six months ended June 30, 2023 and 2022 are unaudited.

The accompanying interim financial statements for the three and nine months ended September 30, 2023 and 2022 are unaudited.

The balance sheet as of December 31, 2022, was derived from the audited financial statements.

In the opinion of management, these financial statements include all normal and recurring adjustments necessary for a fair statement of the results for such interim periods.

Results of operations for the three and six months ended June 30, 2023 are not necessarily indicative of the results for the full year or any other period.

Results of operations for the three and nine months ended September 30, 2023 are not necessarily indicative of the results for the full year or any other period.

Use of Estimates:

38 unchanged sentences

ASC 326 provides that a loan or lease is measured individually if it does not share similar risk characteristics with other financial assets.

For Parke, loans and leases which are identified to be individually assessed under CECL typically would have been evaluated individually as impaired loans using accounting guidance in effect in periods prior to the adoption of CECL and include collateral dependent loans.

For Parke, loans and leases which are identified to be individually assessed under CECL typically are those that are on non-accrual at the reporting date, and include collateral dependent loans.

Collateral Dependent Loans

7 unchanged sentences

These securities are highly rated with a history of no credit losses, and are assigned ratings based on the most recent data from ratings agencies depending on the availability of data for the security.

Credit ratings of held-

to-maturity debt securities, which are a significant input in calculating the expected credit loss, are reviewed on a quarterly basis.

Credit ratings of held-to-maturity debt securities, which are a significant input in calculating the expected credit loss, are reviewed on a quarterly basis.

Based on the credit ratings of our held-to-maturity securities and our historical experience including no losses, we have determined that an allowance for credit loss on the held-to-maturity portfolio is not required

48 unchanged sentences

INVESTMENT SECURITIES

The following is a summary of the Company's investments in available for sale and held to maturity securities as of June 30, 2023 and December 31, 2022:

As of June 30, 2023 Amortized

The following is a summary of the Company's investments in available for sale and held to maturity securities as of September 30, 2023 and December 31, 2022:

As of September 30, 2023 Amortized

losses Fair value

1 unchanged sentence

Available for sale:

Corporate debt obligations $ 500 $ — $ — $ 500

Residential mortgage-backed securities $ 8,137 $ — $ 866 $ 7,271

15 unchanged sentences

Total held to maturity $ 9,378 $ 56 $ 1,629 $ 7,805

The amortized cost and fair value of debt securities classified as available for sale and held to maturity, by contractual maturity as of June 30, 2023 are as follows:

The amortized cost and fair value of debt securities classified as available for sale and held to maturity, by contractual maturity as of September 30, 2023 are as follows:

(Dollars in thousands)

12 unchanged sentences

Expected maturities may differ from contractual maturities because the issuers of certain debt securities do have the right to call or prepay their obligations without any penalty.

The Company did not sell any securities during the three and six months ended June 30, 2023.

The following tables show the gross unrealized losses and fair value of the Company's investments for which an allowance for credit losses has not been recorded, which are aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position at June 30, 2023 and December 31, 2022:

As of June 30, 2023 Less Than 12 Months 12 Months or Greater Total

The Company did not sell any securities during the three and nine months ended September 30, 2023.

As of September 30, 2023 Less Than 12 Months 12 Months or Greater Total

Description of Securities Fair

23 unchanged sentences

Total held to maturity $ — $ — $ 6,403 $ 1,629 $ 6,403 $ 1,629

The Company’s unrealized loss for the debt securities is comprised of 11 securities in the less than 12 months loss position and 15 securities in the 12 months or greater loss position at June 30, 2023.

The Company’s unrealized loss for the debt securities is comprised of 16 securities in the less than 12 months loss position and 19 securities in the 12 months or greater loss position at September 30, 2023.

The mortgage-backed securities that had unrealized losses were issued or guaranteed by the US government or US government sponsored entities.

1 unchanged sentence

The states and political subdivisions securities that had unrealized losses were issued by a school district, and the loss is attributed to changes in interest rates and not due to credit losses.

Because the Company does not intend to sell the securities and it is not more likely than not that the Company will be required to sell these investments before recovery of their amortized cost basis, the Company does not consider the unrealized loss in these securities to be credit losses at June 30, 2023.

LOANS AND ALLOWANCE FOR CREDIT LOSSES ON LOANS

At June 30, 2023 and December 31, 2022, the Company had $ 1.79 billion and $ 1.75 billion, respectively, in loans receivable outstanding.

Outstanding balances include a total net increase of $ 1.9 million and $ 1.9 million at June 30, 2023 and December 31, 2022, respectively, for net deferred loan costs, and unamortized discounts.

The portfolio segments of loans receivable at June 30, 2023 and December 31, 2022, consist of the following:

June 30, 2023 December 31, 2022

At September 30, 2023 and December 31, 2022, the Company had $ 1.80 billion and $ 1.75 billion, respectively, in loans receivable outstanding.

Outstanding balances include $ 2.2 million and $ 1.9 million at September 30, 2023 and December 31, 2022, respectively, for net deferred loan costs, and unamortized discounts.

The portfolio segments of loans receivable at September 30, 2023 and December 31, 2022, consist of the following:

September 30, 2023 December 31, 2022

(Dollars in thousands)

11 unchanged sentences

Total loan receivable, net of allowance for credit losses on loans $ 1,767,704 $ 1,719,614

An age analysis of past due loans by class at June 30, 2023 and December 31, 2022 is as follows:

June 30, 2023 30-59

An age analysis of past due loans by class at September 30, 2023 and December 31, 2022 is as follows:

September 30, 2023 30-59

Days Total Past

30 unchanged sentences

The following table provides the amortized cost of loans on nonaccrual status:

June 30, 2023

September 30, 2023

(amounts in thousands) Nonaccrual with no ACL Nonaccrual with ACL Total Nonaccrual Loans Past Due Over 90 Days Still Accruing Total Nonperforming

57 unchanged sentences

The estimate includes consideration of the likelihood that funding will occur and an estimate of expected credit losses on commitments expected to be funded over its estimated life.

At June 30, 2023, the allowance for credit losses on off-balance sheet credit exposures was $ 760.0 thousand.

At September 30, 2023, the allowance for credit losses on off-balance sheet credit exposures was $ 760.0 thousand.

The following tables present the information regarding the allowance for credit losses and associated loan data by portfolio segment under the CECL model in accordance with ASC 326:

2 unchanged sentences

Allowance for credit losses (Dollars in thousands)

Three months ended June 30, 2023

March 31, 2023 $ 738 $ 3,599 $ 1,876 $ 8,076 $ 7,806 $ 8,070 $ 1,238 $ 104 $ 31,507

Three months ended September 30, 2023

June 30, 2023 $ 590 $ 3,978 $ 1,869 $ 8,798 $ 7,710 $ 7,740 $ 1,232 $ 98 $ 32,015

Charge-offs — — — — — — — — —

1 unchanged sentence

Provisions (benefits) ( 79 ) ( 833 ) ( 153 ) ( 276 ) 1,164 489 25 ( 37 ) 300

Ending Balance at June 30, 2023

Ending Balance at September 30, 2023

$ 515 $ 3,145 $ 1,716 $ 8,522 $ 8,874 $ 8,229 $ 1,257 $ 61 $ 32,319

Allowance for credit losses

Six months ended June 30, 2023

Nine months ended September 30, 2023

December 31, 2022 $ 390 $ 2,581 $ 2,298 $ 9,709 $ 6,076 $ 9,381 $ 1,347 $ 63 $ 31,845

3 unchanged sentences

Provisions (benefits) ( 57 ) ( 1,335 ) ( 413 ) ( 236 ) 1,016 ( 358 ) 38 ( 55 ) ( 1,400 )

Ending Balance at June 30, 2023

Ending Balance at September 30, 2023

$ 515 $ 3,145 $ 1,716 $ 8,522 $ 8,874 $ 8,229 $ 1,257 $ 61 $ 32,319

During the quarter, the increase to provision for the Construction segment was due to an increase in the portfolio balance, while the increase in provision to the Commercial Non-owner Occupied segment was driven by an increase to the specific reserve.

The credit provision during the quarter to the Commercial and Industrial and Residential 1-4 Family Investment segments were largely driven by declines or slowdowns to growth within the portfolio that lowered the loan exposure and also caused changes to the qualitative factors related to loan volume within the portfolio segments.

For the six months ended June 30, 2023, the credit provision to the Construction, Commercial Owner Occupied, Residential 1 to 4 Family, and Residential 1 to 4 Family Investment segments was largely driven by declines or slowdowns to growth within the portfolio that lowered loan exposure and also caused changes to the qualitative factors related to loan volume within the portfolio segments, partially offset by increases in balances in the Construction and Residential 1 - 4 Family Investment segments.

During the quarter, the increase to the Residential 1 to 4 Family and Residential 1 to 4 Family Investment portfolio's was due to an increase in the portfolio balances as well as an increase in the qualitative factor for the Residential 1 to 4 Family Residential portfolio driven by an increase in delinquent loan balances.

The credit provision during the quarter to the Construction segment was mainly due to a decrease in the portfolio balance.

For the nine months ended September 30, 2023, the increase to the provision for the Residential 1 to 4 Family portfolio was mainly driven by an increase in the qualitative factor due to an increase in delinquent loan balances.

The credit provision to the Construction and Residential 1 to 4 Family Investment segments was largely driven by declines or slowdowns to growth within the portfolio that lowered loan exposure and also caused changes to the qualitative factors related to loan volume within the portfolio segments, partially offset by an increase in the balance of the Residential 1 - 4 Family Investment segment.

The credit provision for the Commercial Owner Occupied portfolio is attributed to a decrease in the historical vintage reserve rate.

The following tables present the information regarding the allowance for loan losses and associated loan data by portfolio segment under the incurred loss model:

2 unchanged sentences

Allowance for loan losses (Dollars in thousands)

Three months ended June 30, 2022

March 31, 2022 $ 509 $ 2,197 $ 3,012 $ 7,253 $ 7,477 $ 8,005 $ 1,415 $ 113 $ 29,981

Three months ended September 30, 2022

June 30, 2022 $ 551 $ 2,202 $ 2,742 $ 7,549 $ 7,291 $ 8,920 $ 1,098 $ 95 $ 30,448

Charge-offs — — — — ( 66 ) — — — ( 66 )

1 unchanged sentence

Provisions (benefits) ( 137 ) 653 ( 140 ) 368 ( 424 ) 203 92 ( 15 ) 600

Ending Balance at June 30, 2022 $ 551 $ 2,202 $ 2,742 $ 7,549 $ 7,291 $ 8,920 $ 1,098 $ 95 $ 30,448

Ending Balance at September 30, 2022 $ 417 $ 2,855 $ 2,606 $ 7,917 $ 6,801 $ 9,123 $ 1,190 $ 80 $ 30,989

Allowance for loan losses

Six months ended June 30, 2022

Nine months ended September 30, 2022

December 31, 2021 $ 417 $ 2,662 $ 2,997 $ 7,476 $ 7,045 $ 7,925 $ 1,215 $ 108 $ 29,845

2 unchanged sentences

Provisions (benefits) ( 12 ) 93 ( 406 ) 441 ( 311 ) 1,198 ( 25 ) ( 28 ) 950

Ending Balance at June 30, 2022 $ 551 $ 2,202 $ 2,742 $ 7,549 $ 7,291 $ 8,920 $ 1,098 $ 95 $ 30,448

Ending Balance at September 30, 2022 $ 417 $ 2,855 $ 2,606 $ 7,917 $ 6,801 $ 9,123 $ 1,190 $ 80 $ 30,989

Allowance for loan losses

1 unchanged sentence

Collectively evaluated for impairment 417 2,855 2,602 7,792 6,781 9,123 1,190 80 30,840

Ending Balance at June 30, 2022 $ 551 $ 2,202 $ 2,742 $ 7,549 $ 7,291 $ 8,920 $ 1,098 $ 95 $ 30,448

Ending Balance at September 30, 2022 $ 417 $ 2,855 $ 2,606 $ 7,917 $ 6,801 $ 9,123 $ 1,190 $ 80 $ 30,989

Individually evaluated for impairment $ — $ 1,139 $ 1,177 $ 19,655 $ 420 $ — $ — $ 70 $ 22,461

Collectively evaluated for impairment 29,407 192,972 128,929 327,888 431,646 460,922 78,162 6,970 1,656,896

Ending Balance at June 30, 2022 $ 35,739 $ 146,806 $ 128,782 $ 325,135 $ 392,771 $ 433,733 $ 77,797 $ 7,370 $ 1,548,133

For the quarter, the increase to provision in the Commercial Non-owner Occupied and Residential 1 to 4 Family Investment segments were largely driven by increases to growth within the portfolio that increased the loan exposure and also caused changes to the qualitative factors related to loan volume within the portfolio segments.

The credit provisions to the Commercial Owner Occupied, Residential 1 to 4 Family, and Residential Multifamily segments were largely driven by declines or slowdowns to growth within the portfolio that lowered the loan exposure and also caused changes to the qualitative factors related to loan volume within the portfolio segments.

For the year to date, the increase to provision in the Commercial and Industrial, Residential 1 to 4 Family, and 1 to 4 Family Investment Segments were largely driven by increases to growth within the portfolio that increased the loan exposure and also caused changes to the qualitative factors related to loan volume within the portfolio segments.

The credit provisions to the Construction, Commercial Owner Occupied, and Residential Multifamily segments were largely driven by declines or slowdowns to growth within the portfolio that lowered the loan exposure and also caused changes to the qualitative factors related to loan volume within the portfolio segments, slightly offset by an increase in the national and local economic qualitative factor driven by deteriorating economic conditions during the second quarter of 2022.

Ending Balance at September 30, 2022 $ 29,407 $ 194,111 $ 130,106 $ 347,543 $ 432,066 $ 460,922 $ 78,162 $ 7,040 $ 1,679,357

The increase in the allowance for loan loss balance for the nine months ended September 30, 2022 in the residential 1 to 4 family investment and commercial non-owner occupied portfolio segments was primarily attributable to loan growth.

The decrease in the allowance for loan loss balance in the commercial owner occupied portfolio segment for the nine months ended September 30, 2022 was due to decreases in non-performing balances.

Collateral-Dependent Loans

The following table presents the collateral-dependent loans by portfolio segment and collateral type at June 30, 2023:

The following table presents the collateral-dependent loans by portfolio segment and collateral type at September 30, 2023:

(amounts in thousands) Real Estate Business Assets Other

35 unchanged sentences

Borrowers in this category require constant monitoring, are considered work-out loans and present the potential for future loss to the Bank.

The following tables provide an analysis of loans by portfolio segment based on the credit quality indicators used to determine the allowance for credit losses, as of June 30, 2023 under the current expected credit loss model.

The following tables provide an analysis of loans by portfolio segment based on the credit quality indicators used to determine the allowance for credit losses, as of September 30, 2023 under the current expected credit loss model.

(Dollars in thousands) Term Loans Amortized Cost Basis by Origination Year Revolving Loans at Amortized Cost Basis

As of June 30, 2023

As of September 30, 2023

2023 2022 2021 2020 Prior Total

47 unchanged sentences

Current period gross charge-offs $ — $ — $ — $ — $ — $ — $ —

As of June 30, 2023, the Company was in the process of foreclosing on $ 3.6 million in loans, consisting of one commercial and industrial loan, two commercial - owner occupied loans, and two commercial - non-owner occupied loans.

As of September 30, 2023, the Company was in the process of foreclosing on $ 2.8 million in loans, consisting of two commercial - owner occupied loans, and two commercial - non-owner occupied loans.

An analysis of the credit risk profile by internally assigned grades under the incurred loss model as of December 31, 2022 is as follows:

16 unchanged sentences

Loan Modifications Made to Borrowers Experiencing Financial Difficulty

June 30, 2023

September 30, 2023

(Dollars in thousands) Term Extension More-Than-Insignificant Payment Delay Interest Rate Reduction Other Total % of Total Loan Category

1 unchanged sentence

Total $ — $ — $ — $ 15,346 $ 15,346

As of June 30, 2023, Parke had no commitments to lend additional amounts to the borrowers included in the previous table.

The following table describes the financial effect of the modifications made to borrowers experiencing financial difficulty as of June 30, 2023:

As of September 30, 2023, Parke had no commitments to lend additional amounts to the borrowers included in the previous table.

The following table describes the financial effect of the modifications made to borrowers experiencing financial difficulty as of September 30, 2023:

Commercial – Non-owner Occupied Forbearance agreement made on two loans to the same borrower whereby the Company will receive all principal and interest due by the original maturity date and where the Company will not foreclose as long as payments are made as per the terms of the agreement.

4 unchanged sentences

The following table depicts the performance of loans that have been modified in the last 12 months (in thousands):

June 30, 2023

September 30, 2023

Current 30-89 Days Past Due Greater than 90 Days Past Due Total

2 unchanged sentences

EARNINGS PER SHARE (“EPS”)

The following tables set forth the calculation of basic and diluted EPS for the three and six-month periods ended June 30, 2023 and 2022.

Three months ended June 30, Six months ended June 30,

The following tables set forth the calculation of basic and diluted EPS for the three and nine-month periods ended September 30, 2023 and 2022.

Three months ended September 30, Nine months ended September 30,

2023 2022 2023 2022

42 unchanged sentences

Available for Sale Securities

As of June 30, 2023

Corporate debt obligations $ — $ 500 $ — $ 500

As of September 30, 2023

Residential mortgage-backed securities $ — $ 7,271 $ — $ 7,271

4 unchanged sentences

Total $ — $ 9,366 $ — $ 9,366

For the six months ended June 30, 2023, there were no transfers between the levels within the fair value hierarchy.

There were no level 3 assets or liabilities held during the three and six months ended June 30, 2023 and 2022.

For the nine months ended September 30, 2023, there were no transfers between the levels within the fair value hierarchy.

There were no level 3 assets or liabilities held during the three and nine months ended September 30, 2023 and 2022.

Fair Value on a Non-recurring Basis:

2 unchanged sentences

(Dollars in thousands)

As of June 30, 2023

As of September 30, 2023

Collateral-dependent loans $ — $ — $ 1,091 $ 1,091

13 unchanged sentences

These instruments include cash and cash equivalents, accrued interest receivable, bank owned life insurance, Federal Home Loan Bank of New York ("FHLBNY") restricted stock, demand and other non-maturity deposits and accrued interest payable, and they are considered to be level 1 measurements.

The following table summarizes the carrying amounts and fair values for financial instruments that are not carried at fair value at June 30, 2023 and December 31, 2022:

June 30, 2023 Carrying Amount Fair Value

The following table summarizes the carrying amounts and fair values for financial instruments that are not carried at fair value at September 30, 2023 and December 31, 2022:

September 30, 2023 Carrying Amount Fair Value

Total Level 1 Level 2 Level 3

29 unchanged sentences

Since many of the commitments are expected to expire without being drawn upon, the total commitment amounts do not necessarily represent future cash requirements.

Commitments to fund fixed-rate loans were immaterial at June 30, 2023.

Commitments to fund fixed-rate loans were immaterial at September 30, 2023.

Variable-rate commitments are generally issued for less than one year and carry market rates of interest.

1 unchanged sentence

Management believes that off-balance sheet risk is not material to the results of operations or financial condition.

As of June 30, 2023 and December 31, 2022, unused commitments to extend credit amounted to approximately $ 124.9 million and $ 159.0 million, respectively.

At June 30, 2023, the allowance for credit losses on off-balance sheet credit exposures was $ 760.0 thousand.

As of September 30, 2023 and December 31, 2022, unused commitments to extend credit amounted to approximately $ 113.7 million and $ 159.0 million, respectively.

At September 30, 2023, the allowance for credit losses on off-balance sheet credit exposures was $ 760.0 thousand.

Standby letters of credit are conditional commitments issued by the Company to guarantee the performance of a customer to a third party.

The credit risk involved in issuing letters of credit is essentially the same as that involved in extending loan facilities to customers.

As of June 30, 2023 and December 31, 2022, standby letters of credit with customers were $ 1.5 million and $ 1.5 million, respectively.

On April 5, 2023, the Bank entered into an agreement with the FHLBNY for a Municipal Letter of Credit ("MLOC") of $ 50.0 million.

The MLOC is used to pledge against public deposits and expires on July 5, 2023.

There were no outstanding borrowings on the letter of credit as of June 30, 2023.

As of September 30, 2023 and December 31, 2022, standby letters of credit with customers were $ 1.5 million and $ 1.5 million, respectively.

On July 6, 2023 and September 29, 2023, the Bank entered into agreements with the FHLBNY for a Municipal Letter of Credit ("MLOC") of $ 50.0 million and $ 10.0 million, respectively.

The MLOC's are used to pledge against public deposits and both MLOC's expire on October 5, 2023.

There were no outstanding borrowings on the letters of credit as of September 30, 2023.

The Company also has entered into an employment contract with the President of the Company, which provides for continued payment of certain employment salary and benefits prior to the expiration date of the agreement and in the event of a change in control, as defined.

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We provide banking services to customers that are licensed by various States to do business in the cannabis industry as growers, processors and dispensaries.

Cannabis businesses are legal in these States, although it is not legal at the federal level.

Cannabis businesses are legal in these States, although they are not legal at the federal level.

Department of the Treasury’s Financial Crimes Enforcement Network (“FinCEN”) published guidelines in 2014 for financial institutions servicing state legal cannabis businesses.

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Any change in the Federal government’s enforcement position, could cause us to immediately cease providing banking services to the cannabis industry.

At June 30, 2023 and December 31, 2022, deposit balances from cannabis customers were approximately $ 111.6 million and $ 177.3 million, or 7.7 % and 11.3 % of total deposits, respectively, with three customers accounting for 49.2 % and 36.9 % of the total at June 30, 2023 and December 31, 2022.

At June 30, 2023 and December 31, 2022, there were cannabis-related loans in the amounts of $ 19.5 million and $ 3.8 million, respectively.

Armored Car Matter

An armored car company used by the Bank to transport and store cash for the Bank’s cannabis-related customers, has informed the Company that some of the cash stored for the Bank is missing from its vault and is presumed to have been stolen.

The amount that the Bank had recorded as being held at the armored car company's facility on the last day that records were provided was $ 9.5 million.

There is not enough information to determine the exact amount of the potential loss, if any, as well as the amount that could be recovered.

The Bank is working with relevant state and federal law enforcement authorities to investigate this matter as well as pursuing judicial avenues of recovery.

The Bank is pursuing various avenues of recovery that it may have, including, among others, possible insurance claims.

If it is ultimately determined that a loss is probable and estimable, we will record the loss in the appropriate fiscal period.

If we are successful in making recoveries, we will record the recoveries in the period received, or when the receipt of such recoveries becomes certain.

At September 30, 2023 and December 31, 2022, deposit balances from cannabis customers were approximately $ 93.9 million and $ 177.3 million, or 6.1 % and 11.3 % of total deposits, respectively, with three customers accounting for 56.0 % and 36.9 % of the total at September 30, 2023 and December 31, 2022.

At September 30, 2023 and December 31, 2022, there were cannabis-related loans in the amounts of $ 26.7 million and $ 3.8 million, respectively.

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 1. Financial Statements