10-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, DC 20549

FORM 10-K

ANNUAL REPORT

PURSUANT TO SECTIONS 13 OR 15(d)

OF THE SECURITIES EXCHANGE ACT OF 1934

(Mark One)

[X] ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the fiscal year ended: December 31, 2012 or

[  ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from ____________ to ____________

Commission File No. 000-51338

PARKE BANCORP, INC.

(Exact name of Registrant as specified in its Charter)

New Jersey	65-1241959
(State or other Jurisdiction of Incorporation or Organization)	(I.R.S. Employer Identification No.)

601 Delsea Drive, Washington Township, New Jersey	08080
(Address of Principal Executive Offices)	(Zip Code)

Registrant’s telephone number, including area code: 856-256-2500

Securities registered pursuant to Section 12(b) of the Act:

Title of Each Class	Name of Each Exchange on Which Registered
Common Stock, $0.10 par value	The Nasdaq Stock Market LLC

Securities registered pursuant to Section 12(g) of the Act:  None

Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act.

YES o NO x

Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act.

YES o NO x

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

YES x NO o

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Website, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§229.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).

YES x NO o

Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K is not contained herein, and will not be contained, to the best of registrant’s knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-K or any amendment to this Form 10-K.

o

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller company.  See the definitions of “large accelerated filer”, “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act. (Check one):

Large accelerated filer o Accelerated filer o Non-accelerated filer o Smaller reporting company x

Indicate by check mark whether the registrant is a shell company (as defined by Rule 12b-2 of the Exchange Act).

YES o NOx

The aggregate market value of the voting stock held by non-affiliates of the Registrant, based on the closing price of the Registrant’s common stock as quoted on the Nasdaq Capital Market on June 30, 2012, was approximately $28.1 million.

As of March 22, 2013 there were issued and outstanding 5,383,893 shares of the Registrant’s common stock.

DOCUMENTS INCORPORATED BY REFERENCE

1. Portions of the Annual Report to Shareholders for the Fiscal Year Ended December 31, 2012. (Parts II and IV)

2. Portions of the Proxy Statement for the 2013 Annual Meeting of Shareholders. (Parts II and III)

PARKE BANCORP, INC.

FORM 10-K

FOR THE FISCAL YEAR ENDED DECEMBER 31, 2012

INDEX

PART 1		Page
Item 1.	Business	1
Item 1A.	Risk Factors	24
Item 1B.	Unresolved Staff Comments	24
Item 2.	Properties	25
Item 3.	Legal Proceedings	25
Item 4.	Mine Safety Disclosures	25
PART II
Item 5.	Market for Common Equity, Related stockholder Matters and Issuer Purchases of Equity Securities	26
Item 6.	Selected Financial Data	26
Item 7.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	26
Item 7A.	Quantitative and Qualitative Disclosures About Market Risk	26
Item 8.	Financial Statements and Supplementary Data	26
Item 9.	Changes and Disagreements with Accountants on Accounting and Financial Disclosure	26
Item 9A.	Controls and Procedures	26
Item 9B.	Other Information	27
PART III
Item 10.	Directors, Executive Officers and Corporate Governance	27
Item 11.	Executive Compensation	27
Item 12.	Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters	27
Item 13.	Certain Relationships and Related Transactions, and Director Independence	28
Item 14.	Principal Accountant Fees and Services	28
PART IV
Item 15.	Exhibits and Financial Statement Schedules	28
	Signatures

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Forward-Looking Statements

Parke Bancorp, Inc. (the “Company”) may from time to time make written or oral “forward-looking statements,” including statements contained in the Company’s filings with the Securities and Exchange Commission (including this Annual Report on Form 10-K and the exhibits hereto), in its reports to shareholders and in other communications by the Company, which are made in good faith by the Company pursuant to the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995.

These forward-looking statements involve risks and uncertainties, such as statements of the Company’s plans, objectives, expectations, estimates and intentions that are subject to change based on various important factors (some of which are beyond the Company’s control). The following factors, among others, could cause the Company’s financial performance to differ materially from the plans, objectives, expectations, estimates and intentions expressed in such forward-looking statements: the strength of the United States economy in general and the strength of the local economies in which the Company’s wholly-owned subsidiary, Parke Bank (the “Bank”), conducts operations; the effects of, and changes in, trade, monetary and fiscal policies and laws, including interest rate policies of the Board of Governors of the Federal Reserve System, inflation, interest rates, market and monetary fluctuations; the timely development of and acceptance of new products and services of the Bank and the perceived overall value of these products and services by users, including the features, pricing and quality compared to competitors’ products and services; the impact of changes in financial services’ laws and regulations (including laws concerning taxes, banking, securities and insurance); technological changes; changes in consumer spending and saving habits; and the success of the Company at managing the risks resulting from these factors.

The Company cautions that the listed factors are not exclusive. The Company does not undertake to update any forward-looking statement, whether written or oral, that may be made from time to time by or on behalf of the Company.

PART I

Item 1. Business

General

The Company is a bank holding company incorporated under the laws of the State of New Jersey in January 2005 for the sole purpose of becoming the holding company of the Bank. The Company commenced operations on June 1, 2005, upon completion of the reorganization of the Bank into the holding company form of organization following approval of the reorganization by shareholders of the Bank at its 2005 Annual Meeting of Shareholders.  The Company’s business and operations primarily consist of its ownership of the Bank.

The Bank is a commercial bank, which commenced operations on January 28, 1999. The Bank is chartered by the New Jersey Department of Banking and insured by the Federal Deposit Insurance Corporation (“FDIC”). The Company and the Bank maintain their principal offices at 601 Delsea Drive, Washington Township, New Jersey.  The Bank also conducts business through offices in Northfield, Galloway Township and Washington Township, New Jersey, and in Philadelphia, Pennsylvania. The Bank is a full service bank, with an emphasis on providing personal and business financial services to individuals and small to mid-sized businesses in Gloucester, Atlantic and Cape May Counties in New Jersey and the Philadelphia area in Pennsylvania.  At December 31, 2012, the Company had assets of $770.5 million, net loans of $610.8 million, deposits of $637.2 million and equity of $83.5 million.

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The Bank focuses its commercial loan originations on small and mid-sized businesses (generally up to $25 million in annual sales).  Commercial loan products include residential and commercial real estate construction loans; working capital loans and lines of credit; demand, term and time loans; and equipment, inventory and accounts receivable financing.  Residential construction loans in tract development are also included in the commercial loan category. The Bank also offers a range of deposit products to its commercial customers.  Commercial customers also have the ability to use overnight depository, ACH, wire transfer services and merchant capture electronic check processing services.

The Bank’s retail banking activities emphasize consumer deposit and checking accounts. An extensive range of these services is offered by the Bank to meet the varied needs of its customers in all age groups. In addition to traditional products and services, the Bank offers contemporary products and services, such as debit cards, Internet banking and online bill payment. Retail lending activities by the Bank include residential mortgage loans, home equity lines of credit, fixed rate second mortgages, new and used auto loans and overdraft protection.

Market Area

Substantially all of the Bank’s business is with customers in its market areas of Southern New Jersey and the Philadelphia area of Pennsylvania. Most of the Bank’s customers are individuals and small and medium-sized businesses which are dependent upon the regional economy. Adverse changes in economic and business conditions in the Bank’s markets could adversely affect the Bank’s borrowers, their ability to repay their loans and to borrow additional funds, and consequently the Bank’s financial condition and performance.

Additionally, most of the Bank’s loans are secured by real estate located in Southern New Jersey and the Philadelphia area. A decline in local economic conditions could adversely affect the values of such real estate. Consequently, a decline in local economic conditions may have a greater effect on the Bank’s earnings and capital than on the earnings and capital of larger financial institutions whose real estate loan portfolios are more geographically diverse.

Competition

The Bank faces significant competition, both in making loans and attracting deposits. The Bank’s competition in both areas comes principally from other commercial banks, thrift and savings institutions, including savings and loan associations and credit unions, and other types of financial institutions, including brokerage firms and credit card companies. The Bank faces additional competition for deposits from short-term money market mutual funds and other corporate and government securities funds.

Most of the Bank’s competitors, whether traditional or nontraditional financial institutions, have a longer history and significantly greater financial and marketing resources than does the Bank. Among the advantages certain of these institutions have over the Bank are their ability to finance wide-ranging and effective advertising campaigns, to access international money markets and to allocate their investment resources to regions of highest yield and demand. Major banks operating in the primary market area offer certain services, such as international banking and trust services, which are not offered directly by the Bank.

In commercial transactions, the Bank’s legal lending limit to a single borrower enables the Bank to compete effectively for the business of individuals and smaller enterprises. However, the Bank’s legal lending limit is considerably lower than that of various competing institutions, which have substantially greater capitalization. The Bank has a relatively smaller capital base than most other competing institutions which, although above regulatory minimums, may constrain the Bank’s effectiveness in competing for loans.

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Lending Activities

Composition of Loan Portfolio.Set forth below is selected data relating to the composition of the Bank’s loan portfolio by type of loan at the dates indicated. (1)  As of December 31, 2012 there was one industry sector concentration that exceeded 10% of total loans. Loans to lessors of retail buildings totaled $76.8 million, or 12.2% of total loans at December 31, 2012. Refer to pages 4 through 6 for descriptions of the loan categories presented.

	At December 31,
	2012					2011					2010					2009					2008
	Amount		Percentage			Amount		Percentage			Amount		Percentage			Amount		Percentage			Amount		Percentage
	(Amounts in thousands, except percentages)
Commercial and Industrial	$	21,925		3.5	%	$	24,136		3.9	%	$	25,108		4.0	%	$	20,174		3.3	%	$	19,935		3.6	%
Real Estate Construction:
Residential		7,331		1.2			21,287		3.4			38,810		6.2			61,865		10.3			87,327		15.9
Commercial		41,875		6.6			50,361		8.1			57,651		9.2			44,726		7.4			31,582		5.8
Real Estate Mortgage:
Commercial - Owner Occupied		157,616		25.0			147,449		23.6			146,665		23.4			159,593		26.5			163,695		29.9
Commercial - Non-Owner Occupied		221,731		35.2			204,216		32.6			171,854		27.5			149,633		24.8			144,762		26.4
Residential - 1 to 4 Family		140,164		22.3			138,768		22.2			141,695		22.6			133,603		22.1			66,117		12.1
Residential - Multifamily		21,181		3.4			20,126		3.2			27,841		4.4			20,782		3.4			24,109		4.4
Consumer		17,889		2.8			18,774		3.0			17,115		2.7			13,025		2.2			10,133		1.9
Total Loans	$	629,712		100.0	%	$	625,117		100.00	%	$	626,739		100.00	%	$	603,401		100.00	%	$	547,660		100.00	%

(1)           Amounts presented include adjustments for related unamortized deferred costs and fees.

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Loan Maturity.The following table sets forth the contractual maturity of certain loan categories at December 31, 2012.

	Due within one year		Due after one through five years		Due after five years		Total
	(Amounts in thousands)
Commercial and Industrial	$	6,578	$	7,653	$	7,694	$	21,925
Real Estate Construction:
Residential		3,684		2,429		1,218		7,331
Commercial		21,535		17,874		2,466		41,875
Real Estate Mortgage:
Commercial - Owner Occupied		13,161		34,769		109,686		157,616
Commercial - Non-Owner Occupied		40,439		74,462		106,830		221,731
Residential - 1 to 4 Family		12,963		24,652		102,549		140,164
Residential - Multifamily		3,803		5,477		11,901		21,181
Consumer		233		1,633		16,023		17,889
Total Loans	$	102,396	$	168,949	$	358,367	$	629,712

The following table sets forth the dollar amount of loans in certain loan categories due one year or more after December 31, 2012, which have predetermined interest rates and which have floating or adjustable interest rates.

	Fixed Rates		Floating or Adjustable Rates		Total
	(Amounts in thousands)
Commercial and Industrial	$	1,822	$	13,525	$	15,347
Real Estate Construction:
Residential		—		3,647		3,647
Commercial		9,679		10,661		20,340
Real Estate Mortgage:
Commercial - Owner Occupied		15,094		129,361		144,455
Commercial - Non-Owner Occupied		38,611		142,681		181,292
Residential - 1 to 4 Family		69,523		57,678		127,201
Residential - Multifamily		2,453		14,925		17,378
Consumer		15,997		1,659		17,656
Total Loans	$	153,179	$	374,137	$	527,316

Commercial and Industrial Loans. The Bank originates secured loans for business purposes. Loans are made to provide working capital to businesses in the form of lines of credit, which may be secured by real estate, accounts receivable, inventory, equipment or other assets. The financial condition and cash flow of commercial borrowers are closely monitored by means of corporate financial statements, personal financial statements and income tax returns.  The frequency of submissions of required financial

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information depends on the size and complexity of the credit and the collateral that secures the loan. The Bank’s general policy is to obtain personal guarantees from the principals of the commercial loan borrowers. Such loans are made to businesses located in the Bank’s market area.

Commercial business loans generally involve a greater degree of risk than residential mortgage loans and carry larger loan balances. This increased credit risk is a result of several factors, including the concentration of principal in a limited number of loans and borrowers, the mobility of collateral, the effects of general economic conditions and the increased difficulty of evaluating and monitoring these types of loans. Unlike residential mortgage loans, which generally are made on the basis of the borrower’s ability to make repayment from his or her employment and other income and which are secured by real property the value of which tends to be more easily ascertainable, commercial business loans typically are made on the basis of the borrower’s ability to make repayment from the cash flow of the borrower’s business. As a result, the availability of funds for the repayment of commercial business loans may be substantially dependent on the success of the business itself and the general economic environment. If the cash flow from business operations is reduced, the borrower’s ability to repay the loan may be impaired.

Real Estate Development and Construction Loans. The Bank has emphasized the origination of construction loans to individuals and real estate developers in its market area. The advantages of construction lending are that the market is typically less competitive than more standard mortgage products, the interest rate typically charged is a variable rate, which permits the Bank to protect against sudden changes in its costs of funds, and the fees or “points” charged by the Bank to its customers can be amortized over the shorter term of a construction loan, typically, one to two years, which permits the Bank to recognize income received over a shorter period of time. The Bank from time to time structures construction loans in excess of the legal lending limit of the Bank, with respect to which the Bank sells participation interests in the construction loans to other lenders, while maintaining and servicing the construction loan.

The Bank provides interim real estate acquisition development and construction loans to builders and developers. Real estate development and construction loans to provide interim financing on the property are based on acceptable percentages of the appraised value of the property securing the loan in each case. Real estate development and construction loan funds are disbursed periodically at pre-specified stages of completion. Interest rates on these loans are generally adjustable. The Bank carefully monitors these loans with on-site inspections and control of disbursements. These loans are generally made on properties located in the Bank’s market area.

Development and construction loans are secured by the properties under development and personal guarantees are typically obtained. Further, to assure that reliance is not placed solely in the value of the underlying property, the Bank considers the financial condition and reputation of the borrower and any guarantors, the amount of the borrower’s equity in the project, independent appraisals, costs estimates and pre-construction sale information.

Loans to residential builders are for the construction of residential homes for which a binding sales contract exists and the prospective buyers have been pre-qualified for permanent mortgage financing. Loans to residential developers are made only to developers with a proven sales record. Generally, these loans are extended only when the borrower provides evidence that the lots under development will be sold to potential buyers satisfactory to the Bank.

The Bank also originates loans to individuals for construction of single family dwellings. These loans are for the construction of the individual’s primary residence. They are typically secured by the

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property under construction, occasionally include additional collateral (such as a second mortgage on the borrower’s present home), and commonly have maturities of six to twelve months.

Construction financing is labor intensive for the Bank, requiring employees of the Bank to expend substantial time and resources in monitoring and servicing each construction loan to completion. Construction financing is generally considered to involve a higher degree of risk of loss than long-term financing on improved, occupied real estate. Risk of loss on a construction loan is dependent largely upon the accuracy of the initial estimate of the property’s value at completion of construction and development, the accuracy of projections, such as the sales of homes or the future leasing of commercial space, and the accuracy of the estimated cost (including interest) of construction. Substantial deviations can occur in such projections. During the construction phase, a number of factors could result in delays and cost overruns. If the estimate of construction costs proves to be inaccurate, the Bank may be required to advance funds beyond the amount originally committed to permit completion of the development. If the estimate of value proves to be inaccurate, the Bank may be confronted, at or prior to the maturity of the loan, with a project having a value which is insufficient to assure full repayment. Also, a construction loan that is in default can cause problems for the Bank such as designating replacement builders for a project, considering alternate uses for the project and site and handling any structural and environmental issues that might arise.

Commercial Real Estate Mortgage Loans. The Bank originates mortgage loans secured by commercial real estate. Such loans are primarily secured by office buildings, retail buildings, warehouses and general purpose business space. Although terms may vary, the Bank’s commercial mortgages generally have maturities of twenty years, but re-price within five years.

Loans secured by commercial real estate are generally larger and involve a greater degree of risk than one- to four-family residential mortgage loans. Of primary concern in commercial and multi-family real estate lending is the borrower’s creditworthiness and the feasibility and cash flow potential of the project. Payments on loans secured by income properties are often dependent on the successful operation or management of the properties. As a result, repayment of such loans may be subject to a greater extent than residential real estate loans to adverse conditions in the real estate market or the economy.

The Bank seeks to reduce the risks associated with commercial mortgage lending by generally lending in its primary market area and obtaining periodic financial statements and tax returns from borrowers. It is also the Bank’s general policy to obtain personal guarantees from the principals of the borrowers and assignments of all leases related to the collateral.

Residential Real Estate Mortgage Loans. The Bank originates adjustable and fixed-rate residential mortgage loans. Such mortgage loans are generally originated under terms, conditions and documentation acceptable to the secondary mortgage market. Although the Bank has placed all of these loans into its portfolio, a substantial majority of such loans can be sold in the secondary market or pledged for potential borrowings.

Consumer Loans. The Bank offers a variety of consumer loans. These loans are typically secured by residential real estate or personal property, including automobiles. Home equity loans (closed-end and lines of credit) are typically made up to 80% of the appraised or assessed value of the property securing the loan in each case, less the amount of any existing prior liens on the property, and generally have maximum terms of ten years, although the Bank does offer a 90% loan to value product if certain conditions related to the borrower and property are satisfied. The interest rates on second mortgages are generally fixed, while interest rates on home equity lines of credit are variable.

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Loans to One Borrower. Federal regulations limit loans to one borrower in an amount equal to 15% of unimpaired capital and unimpaired surplus. At December 31, 2012, the Bank’s loan to one borrower limit was approximately $15.9 million and the Bank had no borrowers with loan balances in excess of $15.9 million. At December 31, 2012, the Bank’s largest loan to one borrower was a loan for commercial real estate, with a balance of $10.8 million that was secured by the real estate. At December 31, 2012, this loan was current and performing in accordance with the terms of the loan agreement.

The size of loans which the Bank can offer to potential borrowers is less than the size of loans which many of the Bank’s competitors with larger capitalization are able to offer. The Bank may engage in loan participations with other banks for loans in excess of the Bank’s legal lending limits. However, no assurance can be given that such participations will be available at all or on terms which are favorable to the Bank and its customers.

Non-Performing and Problem Assets

Non-Performing Assets. Non-accrual loans are those on which the accrual of interest has ceased. Loans are generally placed on non-accrual status if, in the opinion of management, collection is doubtful, or when principal or interest is past due 90 days or more unless the collateral is considered sufficient to cover principal and interest and the loan is in the process of collection. Interest accrued, but not collected at the date a loan is placed on non-accrual status, is reversed and charged against interest income. Subsequent cash receipts are applied either to the outstanding principal or recorded as interest income, depending on management’s assessment of ultimate collectibility of principal and interest. Loans are returned to an accrual status when the borrower’s ability to make periodic principal and interest payments has returned to normal (i.e., brought current with respect to principal or interest or restructured) and the paying capacity of the borrower and/or the underlying collateral is deemed sufficient to cover principal and interest.

A loan is considered impaired when, based on current information and events, it is probable that the Company will be unable to collect the scheduled payments of principal or interest when due according to the contractual terms of the loan agreement. Impaired loans are measured based on the present value of expected future discounted cash flows, the market price of the loan or the fair value of the underlying collateral if the loan is collateral dependent. The recognition of interest income on impaired loans is the same as for non-accrual loans discussed above. Total impaired loans, which includes non-accrual loans, were $87.6 million, $97.2 million, $112.0 million, $50.9 million and $10.2 million at December 31 2012, 2011, 2010, 2009, and 2008, respectively. Included in impaired loans at December 31, 2012, 2011 and 2010 were $67.1 million, $66.9 million and $42.7 million of loans classified as troubled debt restructurings as defined within accounting guidance and regulatory literature. The Company did not have any loans classified as troubled debt restructurings at December 31, 2009 or 2008.

The Company maintains interest reserves for the purpose of making periodic and timely interest payments for borrowers that qualify.  Total loans with interest reserves were $864 thousand and $14.6 million at December 31, 2012 and December 31, 2011, respectively. Management on a monthly basis reviews loans with interest reserves to assess current and projected performance.

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The following table sets forth information regarding non-accrual loans at the dates indicated.

	At December 31,
	2012			2011			2010			2009			2008
	(Amounts in thousands, except percentages)
Loans accounted for on a non-accrual basis:
Commercial and Industrial	$	248		$	—		$	—		$	350		$	41
Real Estate Construction:
Residential		799			5,265			8,546			18,895			5,905
Commercial		12,958			7,703			6,701			198			—
Real Estate Mortgage:
Commercial - Owner Occupied		1,218			4,797			546			2,479			1,179
Commercial - Non-Owner Occupied		19,228			18,132			826			902			201
Residential - 1 to 4 Family		10,072			7,691			9,415			2,511			897
Residential - Multifamily		2,838			597			1,350			—			—
Consumer		188			274			61			117			—
Total non-accrual loans		47,549			44,459			27,445			25,452			8,223
Accruing loans delinquent 90 days or more:
Commercial and Industrial		—			—			—			—			—
Real Estate Construction:
Residential		—			—			—			—			—
Commercial		—			—			—			—			—
Real Estate Mortgage:
Commercial - Owner Occupied		—			—			—			—			—
Commercial - Non-Owner Occupied		—			—			—			—			—
Residential - 1 to 4 Family		—			—			—			—			—
Residential - Multifamily		—			—			—			—			—
Consumer		—			—			—			—			—
Total		—			—			—			—			—
Total non-performing loans	$	47,549		$	44,459		$	27,445		$	25,452		$	8,223
Total non-performing loans as a percentage of loans		7.6	%		7.1	%		4.4	%		4.2	%		1.5	%

When a loan is more than 30 days delinquent, the borrower is contacted by mail or phone and payment is requested. If the delinquency continues, subsequent efforts are made to contact the delinquent borrower. In certain instances, the Company may modify the loan or grant a limited moratorium on loan payments to enable the borrower to reorganize their financial affairs. If the loan continues in a delinquent status for 90 days or more, the Company generally will initiate foreclosure proceedings.

Loans are generally placed on non-accrual status when either principal or interest is 90 days or more past due. Interest accrued and unpaid at the time a loan is placed on non-accrual status is charged against interest income. Such interest, when ultimately collected, is applied either to the outstanding principal or recorded as interest income, depending on management’s assessment of ultimate collectibility of principal and interest. At December 31, 2012, the Bank had $47.5 million of loans that were on a non-accrual basis.Gross interest income of $2.0 million would have been recorded during the year ended December 31, 2012 if these loans had been performing in accordance with their terms. Interest income of $49 thousand was recognized on these loans during the year ended December 31, 2012.

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Classified Assets. Federal Regulations provide for a classification system for problem assets of insured institutions. Under this classification system, problem assets of insured institutions are classified as substandard, doubtful or loss. An asset is considered “substandard” if it involves more than an acceptable level of risk due to a deteriorating financial condition, unfavorable history of the borrower, inadequate payment capacity, insufficient security or other negative factors within the industry, market or management. Substandard loans have clearly defined weaknesses that can jeopardize the timely payments of the loan.

Assets classified as “doubtful” exhibit all of the weaknesses defined under the Substandard Category but with enough risk to present a high probability of some principal loss on the loan, although not yet fully ascertainable in amount. Assets classified as “loss” are those considered un-collectable or of little value, even though a collection effort may continue after the classification and potential charge-off.

The Bank also internally classifies certain assets as “special mention;” such assets do not demonstrate a current potential for loss but are monitored in response to negative trends which, if not reversed, could lead to a substandard rating in the future.

When an insured institution classifies problem assets as either “substandard” or “doubtful,” it may establish specific allowances for loan losses in an amount deemed prudent by management. When an insured institution classifies problem assets as “loss,” it is required either to establish an allowance for losses equal to 100% of that portion of the assets so classified or to charge off such amount. All of the Bank’s loans rated “substandard” and worse are also on non-accrual and deemed impaired.

At December 31, 2012, the Bank had assets classified as follows:

	Loan Balance
	(Amounts in thousands)
Special mention	$	18,069
Substandard		80,948
Doubtful		—
Loss		—
	$	99,017

Foreclosed Real Estate. Real estate acquired by the Bank as a result of foreclosure or by deed in lieu of foreclosure is classified as real estate owned until such time as it is sold. When real estate owned is acquired, it is recorded at or its fair value less disposal costs. Management also periodically performs valuations of real estate owned and establishes allowances to reduce book values of the properties to their net realizable values when necessary. Any write-down of real estate owned is charged to operations. Real estate owned at December 31, 2012 was $26.1 million. The real estate owned consisted of 33 properties, the largest being a condominium development located in Absecon, New Jersey at $12.8 million.

Allowance for Losses on Loans. It is the policy of management to provide for possible losses on all loans in its portfolio, whether classified or not. A provision for loan losses is charged to operations based on management’s evaluation of the inherent losses estimated to have occurred in the Bank’s loan portfolio.

Management’s judgment as to the level of probable losses on existing loans is based on its internal review of the loan portfolio, including an analysis of the borrowers’ current financial position; the level and trends in delinquencies, non-accruals and impaired loans; the consideration of national and local

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economic conditions and trends; concentrations of credit; the impact of any changes in credit policy; the experience and depth of management and the lending staff; and any trends in loan volume and terms. In determining the collectibility of certain loans, management also considers the fair value of any underlying collateral. However, management’s determination of the appropriate allowance level which is based upon the factors outlined above, which are believed to be reasonable, may or may not prove to be valid. Thus, there can be no assurance that charge-offs in future periods will not exceed the allowance for loan losses or that additional increases in the allowance for loan losses will not be required.

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The following table sets forth information with respect to the Bank’s allowance for losses on loans at the dates and for the periods indicated.

	For the Year Ended December 31,
	2012			2011			2010			2009			2008
	(Dollars in thousands)
Balance at beginning of the period	$	19,323		$	14,789		$	12,404		$	7,777		$	5,706
Charge-offs:
Commercial and Industrial		(66	)		(22	)		(615	)		(73	)		—
Real Estate Construction:
Residential		(1,326	)		(2,390	)		(3,893	)		(600	)		—
Commercial		(310	)		(494	)		(588	)		—			—
Real Estate Mortgage:
Commercial - Owner Occupied		(1,058	)		—			(189	)		—			—
Commercial - Non-Owner Occupied		(3,848	)		(426	)		—			—			—
Residential - 1 to 4 Family		(1,531	)		(2,643	)		(1,245	)		—			—
Residential - Multifamily		—			—			(70	)		—			—
Consumer		(38	)		—			(16	)		—			(5	)
Total charge-offs:		(8,177	)		(5,975	)		(6,616	)		(673	)		(5	)
Recoveries:
Commercial and Industrial		—			—			—			—			—
Real Estate Construction:
Residential		490			24			—			—			—
Commercial		—			—			—			—			—
Real Estate Mortgage:
Commercial - Owner Occupied		—			—			—			—			—
Commercial - Non-Owner Occupied		—			—			—			—			—
Residential - 1 to 4 Family		—			34			—			—			—
Residential - Multifamily		—			—			—			—			—
Consumer		—			1			—			—			13
Total recoveries:		490			59			—			—			13
Net recoveries (charge-offs)		(7,687	)		(5,916	)		(6,616	)		(673	)		8
Provision for loan losses		7,300			10,450			9,001			5,300			2,063
Balance at end of period	$	18,936		$	19,323		$	14,789		$	12,404		$	7,777
Period-end loans outstanding (net of deferred costs/fees)	$	629,712		$	625,117		$	626,739		$	603,401		$	547,660
Average loans outstanding	$	612,342		$	630,570		$	622,716		$	621,619		$	476,994
Allowance as a percentage of period end loans		3.01	%		3.09	%		2.36	%		2.06	%		1.42	%
Net loans charged off as a percentage of average loans outstanding		1.34	%		0.95	%		1.06	%		0.11	%		0.00	%

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Allocation of Allowance for Loan Losses. The following table sets forth the allocation of the Bank’s allowance for loan losses by loan category at the dates indicated and the related percentage of the loans in the portfolio. The portion of the loan loss allowance allocated to each loan category does not represent the total available for future losses that may occur within the loan category as the total loan loss allowance is a valuation reserve applicable to the entire loan portfolio.

	At December 31,
	2012					2011					2010					2009					2008
	Amount		Percentage of Loans to Total Loans			Amount		Percentage of Loans to Total Loans			Amount		Percentage of Loans to Total Loans			Amount		Percentage of Loans to Total Loans			Amount		Percentage of Loans to Total Loans
	(Amounts in thousands, except percentages)
Commercial and Industrial	$	470		3.5	%	$	451		3.9	%	$	448		4.0	%	$	415		3.3	%	$	283		3.6	%
Real Estate Construction:
Residential		845		1.2			2,613		3.4			2,980		6.2			1,272		10.3			1,240		15.9
Commercial		1,115		6.6			1,971		8.1			1,576		9.2			919		7.4			448		5.8
Real Estate Mortgage:
Commercial - Owner Occupied		4,095		25.0			2,714		23.6			2,620		23.2			3,713		29.9			2,325		29.9
Commercial - Non-Owner Occupied		7,379		35.2			6,742		32.6			3,680		27.5			2,643		21.3			2,056		26.4
Residential - 1 to 4 Family		4,384		22.3			4,190		22.2			2,848		22.6			2,943		23.7			1,156		14.9
Residential - Multifamily		312		3.4			278		3.2			372		4.4			231		1.9			125		1.6
Consumer		336		2.8			148		3.0			130		2.7			268		2.2			144		1.9
Unallocated		—		0.0			216		0.0			135		0.0			—		0.0			—		0.0
Total Allowance	$	18,936		100.0	%	$	19,323		100.0	%	$	14,789		100.0	%	$	12,404		100.0	%	$	7,777		100.0	%

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Investment Activities

General. The investment policy of the Bank is established by senior management and approved by the Board of Directors. It is based on asset and liability management goals and is designed to provide a portfolio of high quality investments that foster interest income within acceptable interest rate risk and liquidity guidelines. In accordance with accounting guidance, the Bank classifies the majority of its portfolio of investment securities as “available for sale” with the remainder, which are municipal bonds, as “held to maturity.” At December 31, 2012, the Bank’s investment policy allowed investments in instruments such as: (i) U.S. Treasury obligations, (ii) U.S. government agency or government-sponsored agency obligations, (iii) local municipal obligations, (iv) mortgage-backed securities, (v) certificates of deposit, and (vi) investment grade corporate bonds, trust preferred securities and mutual funds. The Board of Directors may authorize additional investments.

Composition of Investment Securities Portfolio. The following table sets forth the carrying value of the Bank’s investment securities portfolio at the dates indicated. For additional information, see Note 3 of the Notes to the Consolidated Financial Statements. At December 31, 2012, no one issuer of investment securities represented 10% or more of the Company’s stockholders’ equity.

	At December 31,
	2012		2011		2010
	(Amounts in thousands)
Securities Held to Maturity:
State and political subdivisions	$	2,066	$	2,032	$	1,999
Securities Available for Sale:
U.S. government-sponsored entities		7		1,011		2,925
Corporate debt obligations		1,524		1,486		1,585
Residential mortgage-backed securities		12,899		14,461		16,558
Collateralized mortgage obligations		974		1,594		2,152
Collateralized debt obligations		3,936		3,965		4,509
Total securities available for sale		19,340		22,517		27,730
Total	$	21,406	$	24,549	$	29,729

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Investment Portfolio Maturities. The following table sets forth information regarding the scheduled maturities, amortized costs, estimated fair values, and weighted average yields for the Bank’s investment securities portfolio at December 31, 2012 by contractual maturity. The following table does not take into consideration the effects of scheduled repayments or the effects of possible prepayments.

	At December 31, 2012
	One Year or Less					One to Five Years					Five to Ten Years					More Than Ten Years					Total Investment Securities
	Amortized Cost		Average Yield			Amortized Cost		Average Yield			Amortized Cost		Average Yield			Amortized Cost		Average Yield			Amortized Cost		Average Yield			Fair Value
	(Amounts in thousands, except yields)
Securities Held to Maturity:
State and political subdivisions	$	—		0.00	%	$	—		0.00	%	$	—		0.00	%	$	2,066		2.62	%	$	2,066		2.64	%	$	2,239
Securities Available for Sale:
U.S. government sponsored entities		—		0.00	%		—		0.00	%		—		0.00	%		7		0.00	%		7		1.75	%		7
Corporate debt obligations		—		0.00			—		0.00			—		0.00			1,500		7.96			1,500		7.96			1,524
Residential mortgage-backed securities		—		0.00			—		0.00			2,449		3.05			9,910		4.10			12,359		3.92			12,899
Collateralized mortgage obligations		—		0.00			—		0.00			509		3.93			407		4.48			916		4.17			974
Collateralized debt obligations		—		0.00			—		0.00			—		0.00			5,556		2.00			5,556		2.00			3,936
Total securities available for sale		—		0.00			—		0.00			2,958		3.23			17,380		3.81			20,338		3.99			19,340
Total	$	—		0.00	%	$	—		0.00	%	$	2,958		3.23	%	$	19,446		3.69	%	$	22,404		3.63	%	$	21,579

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Sources of Funds

General. Deposits are the major external source of the Bank’s funds for lending and other investment purposes. In addition to deposits, the Bank derives funds from the amortization, prepayment or sale of loans, maturities of investment securities and operations. Scheduled loan principal repayments are a relatively stable source of funds, while deposit inflows and outflows and loan prepayments are significantly influenced by general interest rates and market conditions.

Deposits. The Bank offers individuals and businesses a wide variety of accounts, including checking, savings, money market accounts, individual retirement accounts and certificates of deposit. Deposits are obtained primarily from communities that the Bank serves, however, the Bank held brokered deposits of $21.8 million and $22.9 million at December 31, 2012 and 2011, respectively. Brokered deposits are a more volatile source of funding than core deposits and do not increase the deposit franchise of the Bank. In a rising rate environment, the Bank may be unwilling or unable to pay a competitive rate. To the extent that such deposits do not remain with the Bank, they may need to be replaced with borrowings which could increase the Bank’s cost of funds and negatively impact its interest rate spread, financial condition and results of operation. To mitigate the potential negative impact associated with brokered deposits, the Bank joined Promontory Interfinancial Network during 2007 to secure an additional alternative funding source. Promontory provides the Bank an additional source of external funds through their weekly CDARSTM settlement process. The rates are comparable to brokered deposits and can be obtained within a shorter period time than brokered deposits. The Bank’s CDARSTM deposits included within the brokered deposit total amounted to $21.8 million, $22.9 million and $18.8 million at December 31, 2012, 2011 and 2010, respectively.

The following tables detail the average amount, the average rate paid, and the percentage of each category to total deposits for the most recent three years ended December 31.

	2012
	Average Balance		Yield/Rate			Percent of Total
	(Amounts in thousands, except percentages)
NOWs	$	19,905		0.68	%		3.09	%
Money markets		92,068		0.80	%		14.29
Savings		223,560		0.88	%		34.69
Time deposits		256,326		1.32	%		39.77
Brokered CDs		23,458		1.13	%		3.64
Total interest-bearing deposits		615,317		1.05	%
Non-interest bearing demand deposits		29,157					4.52
Total deposits	$	644,474					100.00	%

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	2011
	Average Balance		Yield/Rate			Percent of Total
	(Amounts in thousands, except percentages)
NOWs	$	15,972		0.95	%		2.64	%
Money markets		90,860		1.06	%		15.01
Savings		197,069		1.22	%		32.55
Time deposits		234,068		1.52	%		38.66
Brokered CDs		44,101		1.82	%		7.28
Total interest-bearing deposits		582,070		1.35	%		96.14
Non-interest bearing demand deposits		23,357					3.86
Total deposits	$	605,427					100.00	%

	2010
	Average Balance		Yield/Rate			Percent of Total
	(Amounts in thousands, except percentages)
NOWs	$	12,936		1.19	%		2.30	%
Money markets		89,866		1.16	%		15.98
Savings		150,008		1.46	%		26.68
Time deposits		203,238		1.98	%		36.14
Brokered CDs		86,235		2.53	%		15.34
Total interest-bearing deposits		542,283		1.77	%		96.44
Non-interest bearing demand deposits		20,040					3.56
Total deposits	$	562,323					100.0	%

The following table indicates the amount of the Bank’s certificates of deposit of $100,000 or more by time remaining until maturity as of December 31, 2012.

Maturity Period	Certificates of Deposit
	(Amounts in thousands)
Within three months	$	20,500
Three through twelve months		57,038
Over twelve months		32,403
Total	$	109,941

Borrowings. Borrowings consist of reverse repurchase agreements, subordinated debt and advances from the FHLB and other parties. Reverse repurchase agreements were priced at origination and are payable in four years or less. Borrowings from the FHLB outstanding during 2012, 2011, and 2010 had maturities of ten years or less and cannot be prepaid without penalty.

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The following table sets forth information regarding the Bank’s borrowings:

	December 31,
	2012			2011			2010
	(Amounts in thousands, except rates)
Amount outstanding at year end	$	43,851		$	74,010		$	75,616
Weighted average interest rates at year end		2.05	%		1.39	%		2.28	%
Maximum outstanding at any month end	$	53,997		$	74,010		$	81,634
Average outstanding	$	46,165		$	64,519		$	66,044
Weighted average interest rate during the year		2.04	%		2.10	%		2.65	%

Subsidiary Activities

The largest subsidiary of the Company is the Bank. The Bank has a subsidiary, Parke Capital Markets, a corporation, which was formed in 2001 to generate fee income from capital markets financing activities, which include term financings.  44 Business Capital LLC was formed in 2009 for the purpose of originating and servicing Small Business Administration (SBA) loans. The Bank has a 51% ownership interest.

Personnel

At December 31, 2012, the Bank had 61 full-time and 13 part-time employees.

Regulation

Set forth below is a brief description of certain laws that relate to the regulation of the Bank and the Company. The description does not purport to be complete and is qualified in its entirety by reference to applicable laws and regulations.

Dodd-Frank Wall Street Reform and Consumer Protection Act

On July 21, 2010, the Dodd-Frank Wall Street Reform and Consumer Protection Act (the “Dodd-Frank Act”) was signed into law.  The Dodd-Frank Act is intended to affect a fundamental restructuring of federal banking regulation.  Among other things, the Dodd-Frank Act created a new Financial Stability Oversight Council to identify systemic risks in the financial system and gives federal regulators new authority to take control of and liquidate financial firms.  The Dodd-Frank Act additionally created a new independent federal regulator to administer federal consumer protection laws. The Dodd-Frank Act is expected to have a significant impact on our business operations as its provisions take effect.  Among the provisions that are likely to affect us are the following:

Holding Company Capital Requirements.  The Dodd-Frank Act required the Federal Reserve to apply consolidated capital requirements to depository institution holding companies that are no less stringent than those currently applied to depository institutions.  Under these standards, trust preferred securities are excluded from Tier 1 capital unless such securities were issued prior to May 19, 2010 by a bank holding company with less than $15 billion in assets. Final rules implementing this requirement were published on June 14, 2011.

Deposit Insurance.  The Dodd-Frank Act permanently increased the maximum deposit insurance amount for banks, savings institutions and credit unions to $250,000 per depositor, and extended unlimited deposit insurance to non-interest bearing transaction accounts through December 31, 2012. The Dodd-Frank Act also broadened the base for FDIC insurance assessments. Assessments are now based on

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the average consolidated total assets less tangible equity capital of a financial institution. The Dodd-Frank Act required the FDIC to increase the reserve ratio of the Deposit Insurance Fund from 1.15% to 1.35% of insured deposits by 2020 and eliminated the requirement that the FDIC pay dividends to insured depository institutions when the reserve ratio exceeds certain thresholds. The Dodd-Frank Act also eliminated the federal statutory prohibition against the payment of interest on business checking accounts.

Corporate Governance. The Dodd-Frank Act required publicly traded companies to give stockholders a non-binding vote on executive compensation at their first annual meeting taking place six months after the date of enactment and at least every three years thereafter and on so-called “golden parachute” payments in connection with approvals of mergers and acquisitions unless previously voted on by shareholders. Additionally, the Dodd-Frank Act directs the federal banking regulators to promulgate rules prohibiting excessive compensation paid to executives of depository institutions and their holding companies with assets in excess of $1.0 billion, regardless of whether the company is publicly traded or not.  The Dodd-Frank Act gave the SEC authority to prohibit broker discretionary voting on elections of directors and executive compensation matters.  All of these provisions have been put into place.

Prohibition Against Charter Conversions of Troubled Institutions.  The Dodd-Frank Act prohibits a depository institution from converting from a state to federal charter or vice versa while it is the subject of a cease and desist order or other formal enforcement action or a memorandum of understanding with respect to a significant supervisory matter unless the appropriate federal banking agency gives notice of the conversion to the federal or state authority that issued the enforcement action and that agency does not object within 30 days.  The notice must include a plan to address the significant supervisory matter.  The converting institution must also file a copy of the conversion application with its current federal regulator which must notify the resulting federal regulator of any ongoing supervisory or investigative proceedings that are likely to result in an enforcement action and provide access to all supervisory and investigative information relating hereto.

Interstate Branching.  The Dodd-Frank Act authorized national and state banks to establish branches in other states to the same extent as a bank chartered by that state would be permitted to branch.  Previously, banks could only establish branches in other states if the host state expressly permitted out-of-state banks to establish branches in that state.  Accordingly, banks will be able to enter new markets more freely.

Limits on Derivatives.  Effective 18 months after enactment, the Dodd-Frank Act prohibits state-chartered banks from engaging in derivatives transactions unless the loans to one borrower limits of the state in which the bank is chartered takes into consideration credit exposure to derivatives transactions.  For this purpose, derivative transaction includes any contract, agreement, swap, warrant, note or option that is based in whole or in part on the value of, any interest in, or any quantitative measure or the occurrence of any event relating to, one or more commodities securities, currencies, interest or other rates, indices or other assets.

Transactions with Affiliates and Insiders.  The Dodd-Frank Act expanded the definition of affiliate for purposes of quantitative and qualitative limitations of Section 23A of the Federal Reserve Act to include mutual funds advised by a depository institution or its affiliates.  The Dodd-Frank Act applies Section 23A and Section 22(h) of the Federal Reserve Act (governing transactions with insiders) to derivative transactions, repurchase agreements and securities lending and borrowing transaction that create credit exposure to an affiliate or an insider. Any such transactions with affiliates must be fully secured. The current exemption from Section 23A for transactions with financial subsidiaries has been eliminated.  The Dodd-Frank Act also additionally prohibits an insured depository institution from

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purchasing an asset from or selling an asset to an insider unless the transaction is on market terms and, if representing more than 10% of capital, is approved in advance by the disinterested directors.

Debit Card Interchange Fees.  Effective July 21, 2011, the Dodd-Frank Act required that the amount of any interchange fee charged by a debit card issuer with respect to a debit card transaction must be reasonable and proportional to the cost incurred by the issuer.  While the restrictions on interchange fees do not apply to banks that, together with their affiliates, have assets of less than $10 billion, the rule could affect the competitiveness of debit cards issued by smaller banks.

Consumer Financial Protection Bureau.The Dodd-Frank Act created the Consumer Financial Protection Bureau (“CFPB”), which is granted broad rulemaking, supervisory and enforcement powers under various federal consumer financial protection laws, including the Equal Credit Opportunity Act, Truth in Lending Act, Real Estate Settlement Procedures Act, Fair Credit Reporting Act, Fair Debt Collection Act, the Consumer Financial Privacy provisions of the Gramm-Leach-Bliley Act and certain other statutes. The CFPB will have examination and primary enforcement authority with respect to depository institutions with $10 billion or more in assets. Smaller institutions will be subject to rules promulgated by the CFPB but will continue to be examined and supervised by federal banking regulators for consumer compliance purposes. The CFPB will have authority to prevent unfair, deceptive or abusive practices in connection with the offering of consumer financial products.  The Dodd-Frank Act authorizes the CFPB to establish certain minimum standards for the origination of residential mortgages including a determination of the borrower’s ability to repay.  In addition, the Dodd-Frank Act will allow borrowers to raise certain defenses to foreclosure if they receive any loan other than a “qualified mortgage” as defined by the CFPB. The Dodd-Frank Act permits states to adopt consumer protection laws and standards that are more stringent than those adopted at the federal level and, in certain circumstances, permits state attorneys general to enforce compliance with both the state and federal laws and regulations.

Holding Company Regulation

General. The Company is a bank holding company within the meaning of the Bank Holding Company Act of 1956 (the “BHC Act”), and is regulated by the Board of Governors of the Federal Reserve System (the “Federal Reserve Board”). The Federal Reserve Board has enforcement authority over the Company and the Company’s non-bank subsidiaries which also permits the Federal Reserve Board to restrict or prohibit activities that are determined to be a serious risk to the subsidiary bank. This regulation and oversight is intended primarily for the protection of the depositors of the Bank and not for shareholders of the Company.

As a bank holding company, the Company is required to file with the Federal Reserve Board an annual report and any additional information as the Federal Reserve Board may require under the BHC Act. The Federal Reserve Board will also examine the Company and its subsidiaries.

Subsidiary banks of a bank holding company are subject to certain restrictions imposed by the BHC Act on extensions of credit to the bank holding company or any of its subsidiaries, on investments in the stock or other securities of the bank holding company or its subsidiaries, and on the taking of such stock or securities as collateral for loans to any borrower. Furthermore, under amendments to the BHC Act and regulations of the Federal Reserve Board, a bank holding company and its subsidiaries are prohibited from engaging in certain tie-in arrangements in connection with any extension of credit or provision of credit or providing any property or services. Generally, this provision provides that a bank may not extend credit, lease or sell property, or furnish any service to a customer on the condition that the customer provide additional credit or service to the bank, to the bank holding company, or to any other

19

subsidiary of the bank holding company or on the condition that the customer not obtain other credit or service from a competitor of the bank, the bank holding company, or any subsidiary of the bank.

Extensions of credit by the Bank to executive officers, directors, and principal shareholders of the Bank or any affiliate thereof, including the Company, are subject to Section 22(h) of the Federal Reserve Act, which among other things, generally prohibits loans to any such individual where the aggregate amount exceeds an amount equal to 15% of a bank’s unimpaired capital and surplus, plus an additional 10% of unimpaired capital and surplus in the case of loans that are fully secured by readily marketable collateral.

Federal Securities Law. The Company’s common stock is registered under Section 12(b) of the Securities Exchange Act of 1934, as amended (the “1934 Act”), and the Company is subject to the periodic reporting and other requirements of Section 12(b) of the 1934 Act, as amended.

Sarbanes-Oxley Act of 2002. The Sarbanes-Oxley Act of 2002 (the “SOX Act”) was enacted to address corporate and accounting fraud. The SEC has promulgated new regulations pursuant to the SOX Act and may continue to propose additional implementing or clarifying regulations as necessary in furtherance of the SOX Act. The passage of the SOX Act by Congress and the implementation of new regulations by the SEC subject publicly-traded companies to additional and more cumbersome reporting, regulations, and disclosure. Compliance with the SOX Act and corresponding regulations may increase the Company’s expenses.

Regulation of the Bank

The Bank operates in a highly regulated industry. This regulation and supervision establishes a comprehensive framework of activities in which a bank may engage and is intended primarily for the protection of the deposit insurance fund and depositors and not shareholders of the Bank.

Any change in applicable statutory and regulatory requirements, whether by the New Jersey Department of Banking and Insurance, the Federal Deposit Insurance Corporation (the “FDIC”) or the United States Congress, could have a material adverse impact on the Bank, and its operations. The adoption of regulations or the enactment of laws that restrict the operations of the Bank or impose burdensome requirements upon it could reduce its profitability and could impair the value of the Bank’s franchise which could hurt the trading price of the Bank’s stock.

As a New Jersey-chartered commercial bank, the Bank is subject to the regulation, supervision, and control of the New Jersey Department of Banking and Insurance. As an FDIC-insured institution, the Bank is subject to regulation, supervision and control of the FDIC, an agency of the federal government. The regulations of the FDIC and the New Jersey Department of Banking and Insurance affect virtually all activities of the Bank, including the minimum level of capital the Bank must maintain, the ability of the Bank to pay dividends, the ability of the Bank to expand through new branches or acquisitions and various other matters.

The FDIC and the New Jersey Department of Banking and Insurance Consent Orders.On April 9, 2012, the Board of Directors of the Bank entered into Consent Orders with each of the FDIC and the New Jersey Department of Banking and Insurance.  Under the Consent Orders, the terms of which are substantially identical, the Bank was required, among other things, subject to review and approval by the FDIC and the Department of Banking and Insurance: (i) to adopt and implement a plan to reduce the Bank’s interest in delinquent or classified assets; (ii) to engage a third party firm to conduct a review of all credits originated, extended or restructured with the use of interest reserves and/or interest-only

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conditions and to identify related repayment risks and regulatory accounting standards; (iii) adopt and implement a program providing for a periodic independent review of the Bank’s loan portfolio; (iv)conduct a review of the Bank’s loan policies and procedures; and (v) to adopt and implement a program to reduce and manage each of the concentrations of credit identified by the FDIC and the Department of Banking and Insurance.

The Consent Orders also require the Bank to obtain the prior approval of the FDIC and the New Jersey Department of Banking and Insurance before declaring or paying any dividend or appointing or changing the title or responsibilities of any director or senior executive officer.  Additional regulatory provisions require FDIC prior approval before the Bank enters into any employment agreement or other agreement or plan providing for the payment of a “golden parachute payment” or the making of any golden parachute payment.

Federal Deposit Insurance. The Bank’s deposits are insured to applicable limits by the FDIC.  Under the Dodd-Frank Act, the maximum deposit insurance amount has been permanently increased from $100,000 to $250,000 and unlimited deposit insurance has been extended to non-interest-bearing transaction accounts until December 31, 2012.

The FDIC has adopted a risk-based premium system that provides for quarterly assessments based on an insured institution’s ranking in one of four risk categories based on their examination ratings and capital ratios.

Starting in 2009, the FDIC significantly raised the assessment rate in order to restore the reserve ratio of the Deposit Insurance Fund to the statutory minimum of 1.15%.  The FDIC imposed a special assessment equal to five basis points of assets less Tier 1 capital as of June 30, 2009 payable on September 30, 2009 and reserved the right to impose additional special assessments.  In lieu of further special assessments, on November 12, 2009 the FDIC required all insured depository institutions to prepay their estimated risk-based assessments for the fourth quarter of 2009, and for all of 2010, 2011, and 2012 on December 30, 2009.  For purposes of estimating future assessments, an institution would assume 5% annual growth in the assessment base and a three basis point increase in the current assessment rate for 2011 and 2012.  The prepaid assessment would be applied against the actual assessment until exhausted.  Any funds remaining after June 30, 2013 would be returned to the institution.

The Dodd-Frank Act required the FDIC to take such steps as necessary to increase the reserve ratio of the Deposit Insurance Fund from 1.15% to 1.35% of insured deposits by 2020.  In setting the assessments, the FDIC is required to offset the effect of the higher reserve ratio against insured depository institutions with total consolidated assets of less than $10 billion. The Dodd-Frank Act also broadens the base for FDIC insurance assessments so that assessments will be based on the average consolidated total assets less average tangible equity capital of a financial institution rather than on its insured deposits.  The FDIC has adopted a new restoration plan to increase the reserve ratio to 1.15% by September 30, 2020 with new rules implemented in 2011 regarding the method to be used to achieve a 1.35% reserve ratio by that date and offset the effect on institutions with assets less than $10 billion in assets.

Pursuant to these requirements, the FDIC has adopted new assessment regulations that redefine the assessment base as average consolidated assets less average tangible equity.  Insured banks with more than $1.0 billion in assets must calculate quarterly average assets based on daily balances while smaller banks and newly chartered banks may use weekly averages.  In the case of a merger, the average assets of the surviving bank for the quarter must include the average assets of the merged institution for the period in the quarter prior to the merger. Average assets would be reduced by goodwill and other intangibles.  Average tangible equity will equal Tier 1 capital. For institutions with more than $1.0 billion in assets

21

average tangible equity will be calculated on a weekly basis while smaller institutions may use the quarter-end balance.  Beginning April 1, 2011, the base assessment rate for insured institutions in Risk Category I ranged between 5 to 9 basis points and for institutions in Risk Categories II, III, and IV will be 14, 23 and 35 basis points.  An institution’s assessment rate is reduced based on the amount of its outstanding unsecured long-term debt and for institutions in Risk Categories II, III and IV may be increased based on their brokered deposits. Risk Categories are eliminated for institutions with more than $10 billion in assets which will be assessed at a rate between 5 and 35 basis points.

In addition, all FDIC-insured institutions are required to pay assessments to the FDIC to fund interest payments on bonds issued by the Financing Corporation (“FICO”), an agency of the Federal government established to recapitalize the Federal Savings and Loan Insurance Corporation.  The FICO assessment rates, which are determined quarterly, averaged 0.0165% of insured deposits on an annualized basis in fiscal year 2012.  These assessments will continue until the FICO bonds mature in 2017.

Capital Adequacy Guidelines. Parke Bancorp (on a consolidated basis) and the Bank are subject to risk-based capital guidelines promulgated by the FDIC that are designed to make regulatory capital requirements more sensitive to differences in risk profile among banks, to account for off-balance sheet exposure, and to minimize disincentives for holding liquid assets. Under the guidelines, assets and off-balance sheet items are assigned to broad risk categories, each with appropriate weights. The resulting capital ratios represent capital as a percentage of total risk-weighted assets and off-balance sheet items.

The minimum ratio of total capital to risk-weighted assets (including certain off-balance sheet activities, such as standby letters of credit) is 8%. At least 4% of the total capital is required to be “Tier I Capital,” consisting of common shareholders’ equity and qualifying preferred stock, less certain goodwill items and other intangible assets. The remainder (“Tier II Capital”) may consist of (a) the allowance for loan losses of up to 1.25% of risk-weighted assets, (b) excess of qualifying preferred stock, (c) hybrid capital instruments, (d) perpetual debt, (e) mandatory convertible securities, and (f) qualifying subordinated debt and intermediate-term preferred stock up to 50% of Tier I capital. Total capital is the sum of Tier I and Tier II capital less reciprocal holdings of other banking organizations, capital instruments, investments in unconsolidated subsidiaries and any other deductions as determined by the FDIC (determined on a case-by-case basis or as a matter of policy after formal rule-making).

In addition to the risk-based capital guidelines, the FDIC has adopted a minimum Tier I capital (leverage) ratio, under which a bank must maintain a minimum level of Tier I capital to average total consolidated assets of at least 3% in the case of a bank that has the highest regulatory examination rating and is not contemplating significant growth or expansion. All other banks are expected to maintain a leverage ratio of at least 100 to 200 basis points above the stated minimum.

At December 31, 2012, the Bank had the requisite capital levels to qualify as “well capitalized.”

Proposed Changes to Regulatory Capital Requirements

The federal banking agencies have issued a series of proposed rulemakings to conform their regulatory capital rules with the international regulatory standards agreed to by the Basel Committee on Banking Supervision in the accord often referred to as “Basel III”.  The proposed revisions would establish new higher capital ratio requirements, tighten the definitions of capital, impose new operating restrictions on banking organizations with insufficient capital buffers and increase the risk weighting of certain assets including residential mortgages. The proposed new capital requirements would apply to all

22

banks and savings associations, bank holding companies with more than $500 million in assets and all savings and loan holding companies regardless of asset size.  The following discussion summarizes the proposed changes which are most likely to affect the Company and the Bank.

New and Higher Capital Requirements.  The proposed regulations would establish a new capital measure called “Common Equity Tier 1 Capital” which would consist of common stock instruments and related surplus (net of treasury stock), retained earnings, accumulated other comprehensive income and, subject to certain adjustments, minority common equity interests in subsidiaries.  Unlike the current rules which exclude unrealized gains and losses on available-for-sale debt securities from regulatory capital, the proposed rules would generally require accumulated other comprehensive income to flow through to regulatory capital.  Depository institutions and their holding companies would be required to maintain Common Equity Tier 1 Capital equal to 4.5% of risk-weighted assets by 2015.

The proposed regulations would increase the required ratio of Tier 1 Capital to risk-weighted assets from the current 4% to 6% by 2015. Tier 1 Capital would consist of Common Equity Tier 1 Capital plus Additional Tier 1 Capital elements which would include non-cumulative perpetual preferred stock.  Neither cumulative preferred stock (other than cumulative preferred stock issued to the U.S. Treasury under the TARP Capital Purchase Program or the Small Business Lending Fund) nor trust preferred would qualify as Additional Tier 1 Capital.  These elements, however, could be included in Tier 2 Capital which could also include qualifying subordinated debt.  The proposed regulations would also require a minimum Tier 1 leverage ratio of 4% for all institutions eliminating the 3% option for institutions with the highest supervisory ratings.  The minimum required ratio of total capital to risk-weighted assets would remain at 8%.

Capital Buffer Requirement. In addition to higher capital requirements, depository institutions and their holding companies would be required to maintain a capital buffer of at least 2.5% of risk-weighted assets over and above the minimum risk-based capital requirements.  Institutions that do not maintain the required capital buffer will become subject to progressively more stringent limitations on the percentage of earnings that can be paid out in dividends or used for stock repurchases and on the payment of discretionary bonuses to senior executive management.  The capital buffer requirement would be phased in over four years beginning in 2016.  The capital buffer requirement effectively raises the minimum required risk-based capital ratios to 7% Common Equity Tier 1 Capital, 8.5% Tier 1 Capital and 10.5% Total Capital on a fully phased-in basis.

Changes to Prompt Corrective Action Capital Categories.  The Prompt Corrective Action rules would be amended to incorporate a Common Equity Tier 1 Capital requirement and to raise the capital requirements for certain capital categories.  In order to be adequately capitalized for purposes of the prompt corrective action rules, a banking organization would be required to have at least an 8% Total Risk-Based Capital Ratio, a 6% Tier 1 Risk-Based Capital Ratio, a 4.5% Common Equity Tier 1 Risk Based Capital Ratio and a 4% Tier 1 Leverage Ratio.  To be well capitalized, a banking organization would be required to have at least a 10% Total Risk-Based Capital Ratio, an 8% Tier 1 Risk-Based Capital Ratio, a 6.5% Common Equity Tier 1 Risk Based Capital Ratio and a 5% Tier 1 Leverage Ratio.

Additional Deductions from Capital. Banking organizations would be required to deduct goodwill and other intangible assets (other than certain mortgage servicing assets), net of associated deferred tax liabilities, from Common Equity Tier 1 Capital.  Deferred tax assets arising from temporary timing differences that could not be realized through net operating loss carrybacks would continue to be deducted if they exceed 10% of Common Equity Tier 1 Capital.  Deferred tax assets that could be realized through NOL carrybacks would not be deducted but would be subject to 100% risk weighting.  Defined benefit pension fund assets, net of any associated deferred tax liability, would be deducted from Common Equity Tier 1 Capital unless the banking organization has unrestricted and unfettered access to such

23

assets.  Reciprocal cross-holdings in the capital instruments of any other financial institution would now be deducted from capital, not just holdings in other depository institutions.  For this purpose, financial institutions are broadly defined to include securities and commodities firms, hedge and private equity funds and non-depository lenders.  Banking organizations would also be required to deduct non-significant investments (less than 10% of outstanding stock) in other financial institutions to the extent these exceed 10% of Common Equity Tier 1 Capital subject to a 15% of Common Equity Tier 1 Capital cap.  Greater than 10% investments must be deducted if they exceed 10% of Common Equity Tier 1 Capital.  If the aggregate amount of certain items excluded from capital deduction due to a 10% threshold exceeds 17.65% of Common Equity Tier 1 Capital, the excess must be deducted.  Savings associations would continue to be required to deduct investments in subsidiaries engaged in activities not permitted for national banks.

Changes in Risk-Weightings.  The proposed regulations would apply a 250% risk-weighting to mortgage servicing rights, deferred tax assets that cannot be realized through NOL carrybacks and significant (greater than 10%) investments in other financial institutions.  The proposed rules would also significantly change the risk-weighting for residential mortgages.  Current capital rules assign a 50% risk-weighting to “qualifying mortgage loans” which generally consist of residential first mortgages with an 80% loan-to-value ratio (or which carry mortgage insurance that reduces the bank’s exposure to 80%) that are not more than 90 days past due.  All other mortgage loans have a 100% risk weight.  Under the proposed regulations, one-to-four family residential mortgage loans would be divided into two broad risk categories with their risk-weighting determined by their loan-to-value ratio without regard to mortgage insurance. Prudently underwritten 30-year residential mortgages providing for regular periodic payments that do not result in negative amortization or balloon payments or allow payment deferrals and caps on annual and lifetime interest rate adjustments and which are not more than 90 days past due would be assigned a risk weighting from 35% for loans with a 60% or lower loan-to-value ratio to 100% for loans over 90%.  Residential mortgage loans in this category with a loan-to-value ratio greater than 60% but not more than 80% would continue to carry a 50% risk weighting. All other residential mortgage loans would be risk-weighted between 100% to 200%.  The proposal also creates a new 150% risk-weighting category for “high volatility commercial real estate loans” which are credit facilities for the acquisition, construction or development of real property other than one- to four-family residential properties or commercial real projects where: (i) the loan-to-value ratio is not in excess of interagency real estate lending standards; and (ii) the borrower has contributed capital equal to not less than 15% of the real estate’s “as completed” value before the loan was made.

Item 1A. Risk Factors

This item is not applicable as the Company is a “smaller reporting company.”

Item 1B. Unresolved Staff Comments

None.

24

Item 2. Properties

(a)   Properties.

The Company’s and the Bank’s main office is located in Washington Township, Gloucester County, New Jersey, in an office building of approximately 13,000 square feet.  The main office facilities include teller windows, a lobby area, drive-through windows, automated teller machine, a night depository, and executive and administrative offices. In December 2002, the Bank executed its lease option to purchase the building for $1.5 million.

The Bank also conducts business from a full-service office in Northfield, New Jersey, a full-service office in Washington Township, Gloucester County, New Jersey, a full-service office in Philadelphia, Pennsylvania, and a full-service office in Galloway Township, NJ. These offices were opened by the Bank in September 2002, February 2003, August 2006 and May 2010, respectively. The Northfield office and the Philadelphia office are leased. The Washington Township office was purchased in February 2003. Management considers the physical condition of all offices to be good and adequate for the conduct of the Bank’s business. At December 31, 2012, net property and equipment totaled approximately $4.0 million.

Item 3. Legal Proceedings

At December 31, 2012, the Company was not a party to any material legal proceedings.

Item 4. Mine Safety Disclosures

Not applicable

25

PART II

Item 5. Market for Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities

(a)   The information contained under the section captioned “Market Prices and Dividends” in the Company’s 2012 Annual Report is incorporated herein by reference.

(b)   Not applicable.

(c)   There were no treasury stock repurchases during the fourth quarter of 2012.

Item 6. Selected Financial Data

The information contained under the section captioned “Selected Financial Data” in the 2012 Annual Report is incorporated herein by reference.

Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations

The information contained in the section captioned “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in the Annual Report is incorporated herein by reference.

Item 7A. Quantitative and Qualitative Disclosures About Market Risk

The information contained in the section captioned “Management’s Discussion and Analysis of Financial Condition and Results of Operations — Interest Rate Sensitivity and Liquidity — Rate Sensitivity Analysis” in the Annual Report is incorporated herein by reference.

Item 8. Financial Statements and Supplementary Data

The Company’s financial statements listed under Item 15 are incorporated herein by reference.

Item 9. Changes in and Disagreements With Accountants on Accounting and Financial Disclosure

None.

Item 9A. Controls and Procedures

(a)         Disclosure Controls and Procedures

Based on their evaluation of the Company’s disclosure controls and procedures (as defined in Rule 13a-15(e) under the Securities Exchange Act of 1934 (the “Exchange Act”)), the Company’s principal executive officer and principal financial officer have concluded that as of the end of the period covered by this Annual Report on Form 10-K such disclosure controls and procedures are effective.

26

(b)           Internal Control Over Financial Reporting

1.  Management’s Annual Report on Internal Control Over Financial Reporting.

Management’s report on the Company’s internal control over financial reporting appears in the Company’s financial statements that are contained in the 2012 Annual Report filed as Exhibit 13 to this Annual Report on Form 10-K. Such report is incorporated herein by reference.

2. Changes in internal control over financial reporting.

During the last quarter of the year under report, there was no change in the Company’s internal control over financial reporting that has materially affected, or is reasonably likely to materially affect, the Company’s internal control over financial reporting.

Item 9B. Other Information

Not applicable.

PART III

Item 10. Directors, Executive Officers and Corporate Governance

The information contained under the headings “Section 16(a) Beneficial Ownership Reporting Compliance”, “Proposal I - Election of Directors” and “Corporate Governance” in the Company’s Proxy Statement for its 2013 Annual Meeting of Stockholders (the “Proxy Statement”) is incorporated herein by reference.

The Company has adopted a Code of Ethics that applies to its principal executive officer, principal financial officer, principal accounting officer or controller or persons performing similar functions. A copy of the Code of Ethics will be furnished without charge upon written request to the Chief Financial Officer, Parke Bancorp, Inc., 601 Delsea Drive, Washington Township, New Jersey, 08080.

There have been no material changes to the procedures by which security holders may recommend nominees to the Registrant’s Board of Directors since the date of the Registrant’s last proxy statement mailed to its stockholders.

Item 11. Executive Compensation

The information contained in the sections captioned “Executive Compensation” and “Director Compensation” in the Proxy Statement is incorporated herein by reference.

Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

(a)           Security Ownership of Certain Beneficial Owners

The information contained in the section captioned  “Principal Holders of our Common Stock” in the Proxy Statement is incorporated herein by reference.

27

(b)           Security Ownership of Management

The information contained in the sections captioned “Principal Holders of our Common Stock” and “Proposal I – Election of Directors” in the Proxy Statement is incorporated herein by reference.

(c)           Management of the Registrant knows of no arrangements, including any pledge by any person of securities of the Registrant, the operation of which may at a subsequent date result in a change in control of the Registrant.

(d)           Securities Authorized for Issuance Under Equity Compensation Plans

Set forth below is information as of December 31, 2012 with respect to compensation plans under which equity securities of the Registrant are authorized for issuance.

	( a )		( b )		( c )
	Number of Securities to be issued upon exercise of outstanding options		Weighted-average exercise price of outstanding options		Number of securities remaining available for issuance under equity compensation plans (excluding securities reflected in column (a))
Equity compensation plans approved by shareholders		356,842	$	9.36		148,181
Total		356,842	$	9.36		148,181

Item 13. Certain Relationships and Related Transactions, and Director Independence

The information contained in the sections captioned “Related Party Transactions” and “Corporate Governance” in the Proxy Statement is incorporated herein by reference.

Item 14. Principal Accountant Fees and Services

The information contained in the section captioned “Proposal II - Ratification of Appointment of Auditors” in the Proxy Statement is incorporated herein by reference.

PART IV

Item 15. Exhibits and Financial Statement Schedules

(a)         Listed below are all financial statements and exhibits filed as part of this report.

1. The following financial statements and the independent auditors’ report included in the Annual Report are incorporated herein by reference:

• Management’s Report on Internal Controls

• Report of Independent Registered Public Accounting Firm

28

• Consolidated Balance Sheets as of December 31, 2012 and 2011

• Consolidated Statements of Income For the Years Ended December 31, 2012 and 2011

• Consolidated Statements of Equity for the Years Ended December 31, 2012 and 2011

• Consolidated Statements of Cash Flows for the Years Ended December 31, 2012 and 2011

• Notes to Consolidated Financial Statements

2. Schedules omitted as they are not applicable.

3. The following exhibits are included in this Report or incorporated herein by reference:

3.1	Certificate of Incorporation of Parke Bancorp, Inc. (1)
3.2	Certificate of Amendment setting forth the terms of the Registrant’s Fixed Rate, Cumulative Perpetual Preferred Stock, Series A (2)
3.3	Bylaws of Parke Bancorp, Inc. (1)*
4.1	Specimen stock certificate of Parke Bancorp, Inc. (1)
4.2	Specimen common stock purchase warrant of Parke Bancorp, Inc. (1)
4.3	Warrant to Purchase shares of the Registrant’s common stock, dated January 30, 2009. (2)
4.4	Letter Agreement (including Securities Purchase Agreement Standard Terms attached as Exhibit A) dated January 30, 2009 between the Registrant and the United States Department of the Treasury. (2)
10.1	Amended Employment Agreement Between Bancorp, Bank and Vito S. Pantilione (3)
10.2	Change in Control Agreement Between Bancorp, Bank and Elizabeth Milavsky, Paul Palmieri and David Middlebrook (3)
10.3	Supplemental Executive Retirement Plan (1)
10.4	1999 Stock Option Plan(1)
10.5	2002 Stock Option Plan(1)
10.6	2003 Stock Option Plan (1)
10.7	2005 Stock Option Plan (4)
10.8	Consent Order by and between Parke Bank and the Federal Deposit Insurance Corporation (5)
10.9	Consent Order by and between the State of New Jersey Department of Banking and Insurance (5)
13	Annual Report to Shareholders for the fiscal year ended December 31, 2012
21	Subsidiaries of the Registrant
23	Consent of McGladrey LLP
31.1	Certification of CEO pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
31.2	Certification of CFO pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
32	Certification of CEO & CFO pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

29

99	Certification of CEO and CFO pursuant to Section 111(b)(4) of EESA
101.INS	XBRL Instance Document *
101.SCH	XBRL Schema Document *
101.CAL	XBRL Calculation Linkbase Document *
101.LAB	XBRL Labels Linkbase Document *
101.PRE	XBRL Presentation Linkbase Document *
101.DEF	XBRL Definition Linkbase Document *

* Submitted as Exhibits 101 to this Form 10-Kare documents formatted in XBRL (Extensible Business Reporting Language).  Pursuant to Rule 406T of Regulation S-T, these interactive data files are deemed not filed or part of a registration statement or prospectus for purposes of Sections 11 or 12 of the Securities Act of 1933 or Section 18 of the Securities Exchange Act of 1934 and otherwise are not subject to liability.

(1)   Incorporated by reference to the Company’s Registration Statement on Form S-4 filed with the SEC on January 31, 2005.

(2)   Incorporated by reference to the Company’s Current Report on Form 8-K filed with the SEC on January 30, 2009.

(3)   Incorporated by reference to the Company’s Current Report on Form 8-K filed with the SEC on November 29, 2007.

(4)   Incorporated by reference to the Company’s Definitive Proxy Statement filed with the SEC on December 20, 2005.

(5)   Incorporated by reference to the Company’s Current Report on filed with the SEC on April 10, 2012.

30

SIGNATURES
Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the Registrant has duly caused this Report to be signed on its behalf by the undersigned, thereunto duly authorized.
	PARKE BANCORP, INC.
Dated: March 22, 2013		/s/ Vito S. Pantilione
	By:	Vito S. Pantilione President, Chief Executive Officer and Director
Pursuant to the requirement of the Securities Exchange Act of 1934, this Report has been signed below by the following persons on behalf of the Registrant and in the capacities indicated on March 22, 2013.
/s/ Celestino R. Pennoni			/s/ Vito S. Pantilione
Celestino R. Pennoni			Vito S. Pantilione
Chairman of the Board and Director			President, Chief Executive Officer and Director
			(Principal Executive Officer)
/s/ Fred G. Choate			/s/ Daniel J. Dalton
Fred G. Choate			Daniel J. Dalton
Director			Director
			/s/ Anthony Jannetti
Arret F. Dobson			Anthony Jannetti
Director			Director
			/s/ Jeffrey H. Kripitz
Edward Infantolino			Jeffrey H. Kripitz
Director			Director
/s/ Jack C. Sheppard, Jr.
Jack C. Sheppard, Jr.			Ray H. Tresch
Director			Director
/s/ John F. Hawkins
John F. Hawkins
Senior Vice President and Chief Financial Officer
(Principal Financial and Accounting Officer)

EX-13

PARKE BANCORP, INC.

2012 ANNUAL REPORT TO SHAREHOLDERS

PARKE BANCORP, INC.

2012 ANNUAL REPORT TO SHAREHOLDERS

TABLE OF CONTENTS
	Page
Section One
Letter to Shareholders	1
Selected Financial Data	3
Management’s Discussion and Analysis of Financial Condition and Results of Operations	4
Market Prices and Dividends	21
Management’s Report on Internal Control Over Financial Reporting	23
Section Two
Report of Independent Registered Public Accounting Firm	1
Consolidated Financial Statements	2
Notes to Consolidated Financial Statements	7
Corporate Information	55

To Our Shareholders:

2012 has been another very challenging year for the business community and the banking industry both nationally and regionally. However, Parke Bancorp, Inc. has again generated near record earnings, with $6.3 million, or $1.17 per diluted share, in net income, an increase of 0.5% over 2011. We are again proud of this accomplishment as this is our 12th consecutive year of strong earnings, especially when considering the continued weak real estate market, which is responsible for many non-performing loans in the banking industry and at Parke Bank. Non-performing loans have a negative impact on the Bank’s earnings, through charge offs, increased expenses, legal and carrying costs, combined with the loss of interest income from that asset. Borrowers continue to have use of their property while the bank has to protect its collateral by paying real estate taxes, insurance and maintenance. We are making positive progress in disposing of our non-performing loans by taking an aggressive approach to troubled asset disposition. Although in some cases this has been seriously delayed by the length of time it takes to work through the foreclosure process in New Jersey.  By taking an aggressive approach to troubled asset disposition, our losses have been minimized, and in some instances, recoveries have been made.

Growth has been very difficult in 2012, with our total assets decreasing 2.6% to $770.5 million as of December 31, 2012. Competition has been fierce, with the big banks starting to aggressively compete in the small loan marketplace, combined with many small businesses deleveraging their balance sheets and avoiding increased debt. The extremely low interest rate environment has increased pressure to modify existing loans to a lower interest rate, which also adds pressure to our net interest margin. However, management and our lending staff have remained diligent, maintaining a net interest margin in excess of 4%, keeping Parke Bank as one of the leaders in our peer group in this category. Persistent low interest rates will increase the pressure on the banking industry’s net interest margin, which will negatively impact Bank earnings. There is no relief for increased interest rates on the near term horizon, which makes it much more important to maintain very tight controls of expenses and to generate earnings through alternative avenues.

Although our Bank’s cost efficiency rate has increased to 43%, we are still one of the leaders in our peer group in controlling our Bank’s expenses. The primary reason for the higher ratio is the dramatic increase in regulatory requirements. New regulations in the Dodd-Frank Act brought increases to a community bank’s operating costs which makes it more difficult to provide our customers with prompt quality service. Banking requirements like stress testing and Enterprise Risk Management (ERM) are the new buzz terms in community banking. Although initially reported as requirements for only the biggest banks, it is now an important requirement for community banks, which costs tens of thousands of dollars. We have implemented stress testing of our loan portfolio and implemented an ERM program. Parke Bank has always maintained tight controls over expenses and in this rising cost environment, it is even more important in supporting our strong earnings.

1

There continues to be signs that the economy, and specifically the real estate market, has bottomed out and that specific markets have seen an improvement in real estate sales and values. A specific example is a construction project of 28 townhomes that we were fortunate enough to finance for one of our quality borrowers that in only three months is sold out. We are hopeful that this trend continues and becomes more wide spread. The residential rental market has remained strong, especially in the Philadelphia area. Several previously planned condominium projects have been converted to rental projects and have enjoyed a level of success. These are all positive signs that the economy and the real estate market have a heartbeat and may be coming back to life. Although modest when compared to our past growth rates, our Bank’s loan portfolio grew close to 1% in 2012 to $630 million, a strong accomplishment in a difficult lending environment.

Our SBA Company, 44 Business Capital, continues to be the top SBA lender in the Delaware Valley area for the second year in a row. Thanks to an extremely talented and committed staff, this company continues to be a leader in SBA lending. We carefully expanded into the Florida market two years ago and we are now in the top 25 SBA lenders in that market. We continue to carefully analyze potential new markets for expansion. As always, any expansion is balanced with careful credit policies, underwriting, quality staff and servicing of our loan portfolio.

We will continue to focus on maintaining our Bank’s financial strength in 2013. This will be accomplished on multiple fronts; continued strong earnings that will strengthen our capital position, which is already twice the amount required for Tier 1 capital of a well capitalized bank, careful control of our Bank’s expenses and a clear focus on reducing our non-performing and classified loans, while complying with all regulatory requirements. Our Board of Directors, management and staff is committed to continuing to work very hard to support a strong return for our investors, which was close to 10% in 2012. We appreciate our shareholders’ commitment and loyalty; it is something that we don’t take for granted.

C.R. “Chuck” Pennoni	Vito S. Pantilione
Chairman	President and Chief Executive Officer

2

Selected Financial Data
	At or for the Year Ended December, 31
	2012			2011			2010			2009			2008
Balance Sheet Data: (in thousands)
Assets	$	770,477		$	790,738		$	756,853		$	654,198		$	601,952
Loans, Net	$	610,776		$	605,794		$	611,950		$	590,997		$	539,883
Securities Available for Sale	$	19,340		$	22,517		$	27,730		$	29,420		$	31,930
Securities Held to Maturity	$	2,066		$	2,032		$	1,999		$	2,509		$	2,482
Cash and Cash Equivalents	$	76,866		$	110,228		$	57,628		$	4,154		$	7,270
OREO	$	26,057		$	19,410		$	16,701		$	—		$	859
Deposits	$	637,207		$	634,855		$	604,722		$	520,313		$	495,327
Borrowings	$	43,851		$	74,010		$	75,616		$	67,831		$	61,943
Equity	$	83,543		$	77,273		$	70,732		$	61,973		$	40,301
Operational Data: (in thousands)
Interest Income	$	37,746		$	41,309		$	41,684		$	40,395		$	36,909
Interest Expense		7,424			9,231			11,350			15,734			19,291
Net Interest Income		30,322			32,078			30,334			24,661			17,618
Provision for Loan Losses		7,300			10,450			9,001			5,300			2,063
Net Interest Income after Provision for Loan Losses		23,022			21,628			21,333			19,361			15,555
Noninterest Income (Loss)		4,368			4,725			2,709			(540	)		(1,251	)
Noninterest Expense		15,079			12,625			11,650			8,757			7,209
Income Before Income Tax Expense		12,311			13,728			12,392			10,064			7,095
Income Tax Expense		4,242			5,524			4,895			3,964			2,848
Net Income Attributable to Company and Noncontrolling Interest		8,069			8,204			7,497			6,100			4,247
Net Income Attributable to Noncontrolling Interest		(756	)		(932	)		(157	)		—			—
Preferred Stock Dividend and Discount Accretion		1,012			1,000			988			899			—
Net Income Available to Common Shareholders	$	6,301		$	6,272		$	6,352		$	5,201		$	4,247
Per Share Data: 1
Basic Earnings per Common Share	$	1.17		$	1.17		$	1.19		$	0.97		$	0.85
Diluted Earnings per Common Share	$	1.17		$	1.15		$	1.15		$	0.97		$	0.79
Book Value per Common Share	$	12.49		$	11.35		$	10.13		$	8.58		$	7.62
Performance Ratios:
Return on Average Assets		0.94	%		0.97	%		1.05	%		0.94	%		0.79	%
Return on Average Common Equity		9.70	%		10.51	%		12.19	%		11.82	%		11.03	%
Net Interest Margin		4.12	%		4.46	%		4.44	%		3.97	%		3.36	%
Efficiency Ratio		43.12	%		34.18	%		33.26	%		33.88	%		36.80	%
Capital Ratios:
Equity to Assets		10.84	%		9.77	%		9.35	%		9.47	%		6.70	%
Dividend Payout Ratio		0.00	%		0.00	%		0.00	%		0.00	%		0.00	%
Tier 1 Risk-based Capital2		14.99	%		14.17	%		12.93	%		13.02	%		9.89	%
Total Risk-based Capital2		16.26	%		15.44	%		14.19	%		14.27	%		11.14	%
Asset Quality Ratios:
Nonperforming Loans/Total Loans		7.55	%		7.11	%		4.38	%		4.22	%		1.50	%
Allowance for Loan Losses/Total Loans		3.01	%		3.09	%		2.36	%		2.06	%		1.42	%
Allowance for Loan Losses/Non-performing Loans		39.82	%		43.46	%		53.89	%		48.74	%		94.61	%
1 Per share computations give retroactive effect to stock dividends declared in each of 2008-2012
2 Capital ratios for Parke Bank

3

MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION

AND RESULTS OF OPERATIONS

Forward Looking Statements

Parke Bancorp, Inc. (the “Company”) may from time to time make written or oral "forward-looking statements", including statements contained in the Company's filings with the Securities and Exchange Commission (including the Proxy Statement and the Annual Report on Form 10-K, including the exhibits), in its reports to stockholders and in other communications by the Company, which are made in good faith by the Company.

These forward-looking statements involve risks and uncertainties, such as statements of the Company's plans, objectives, expectations, estimates and intentions, which are subject to change based on various important factors (some of which are beyond the Company's control). The following factors, among others, could cause the Company's financial performance to differ materially from the plans, objectives, expectations, estimates and intentions expressed in such forward-looking statements: the strength of the United States economy in general and the strength of the local economies in which Parke Bank (the “Bank”) conducts operations; the effects of, and changes in, trade, monetary and fiscal policies and laws, including interest rate policies of the Board of Governors of the Federal Reserve System, inflation, interest rates, market and monetary fluctuations; the timely development of and acceptance of new products and services of the Bank and the perceived overall value of these products and services by users, including the features, pricing and quality compared to competitors' products and services; the impact of changes in financial services' laws and regulations (including laws concerning taxes, banking, securities and insurance); technological changes; changes in consumer spending and saving habits; and the success of the Bank at managing the risks resulting from these factors. The Company cautions that the listed factors are not exclusive.

Overview

The Company's results of operations are dependent primarily on the Bank's net interest income, which is the difference between the interest income earned on its interest-earning assets, such as loans and securities, and the interest expense paid on its interest-bearing liabilities, such as deposits and borrowings. The Bank also generates noninterest income such as service charges, Bank Owned Life Insurance (“BOLI”) income, gains on sales of loans guaranteed by the Small Business Administration (“SBA”) and other fees. The Company's noninterest expenses primarily consist of employee compensation and benefits, occupancy expenses, marketing expenses, professional services, FDIC insurance assessments, data processing costs and other operating expenses. The Company is also subject to losses from its loan portfolio if borrowers fail to meet their obligations. The Company's results of operations are also significantly affected by general economic and competitive conditions, particularly changes in market interest rates, government policies and actions of regulatory agencies.

Results of Operation.

The Company recorded net income available to common shareholders of $6.3 million, or $1.17 per diluted share, and $6.3 million, or $1.15 per diluted share, for 2012 and 2011, respectively. Pre-tax earnings amounted to $12.3 million for 2012 and $13.7 million for 2011.

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Total assets of $770.5 million at December 31, 2012 represented a decrease of $20.3 million, or 2.6%, from December 31, 2011. Total loans amounted to $629.7 million at year end 2012 for an increase of $4.6 million, or 0.7% from December 31, 2011. Deposits grew by $2.4 million, an increase of 0.4%. Total capital at December 31, 2012 amounted to $83.5 million and increased $6.3 million, or 8.1%, during the past year.

The principal objective of this financial review is to provide a discussion and an overview of our consolidated financial condition and results of operations. This discussion should be read in conjunction with the accompanying financial statements and related notes thereto.

5

Comparative Average Balances, Yields and Rates.The following table sets forth average balance sheets, average yields and costs, and certain other information for the periods indicated. Interest rate spread is the difference between the average yield earned on interest-earning assets and the average rate paid on interest-bearing liabilities. Net interest margin is net interest income divided by average earning assets. All average balances are daily average balances. Nonaccrual loans were included in the computation of average balances, and have been reflected in the table as loans carrying a zero yield. The yields set forth below include the effect of deferred fees, discounts and premiums that are amortized or accreted to interest income or expense.

	For the Years Ended December 31,
	2012								2011
	Average Balance			Interest Income/ Expense		Yield/ Cost			Average Balance			Interest Income/ Expense		Yield/ Cost
	(Amounts in thousands except Yield/Cost data)
Assets
Loans	$	612,342		$	36,474		5.96	%	$	630,570		$	39,851		6.32	%
Investment securities		25,870			1,026		3.97	%		30,403			1,329		4.37	%
Federal funds sold and cash equivalents		98,189			246		0.25	%		57,901			129		0.22	%
Total interest-earning assets		736,401		$	37,746		5.13	%		718,874		$	41,309		5.75	%
Noninterest earning assets		58,199								50,092
Allowance for loan losses		(18,579	)							(16,337	)
Total assets	$	776,021							$	752,629
Liabilities and Equity
Interest bearing deposits
NOWs	$	19,905		$	135		0.68	%	$	15,972		$	152		0.95	%
Money markets		92,068			734		0.80	%		90,860			959		1.06	%
Savings		223,560			1,970		0.88	%		197,069			2,399		1.22	%
Time deposits		256,326			3,378		1.32	%		234,068			3,565		1.52	%
Brokered certificates of deposit		23,458			266		1.13	%		44,101			803		1.82	%
Total interest-bearing deposits		615,317			6,483		1.05	%		582,070			7,878		1.35	%
Borrowings		46,165			941		2.04	%		64,519			1,353		2.10	%
Total interest-bearing liabilities		661,482		$	7,424		1.13	%		646,589		$	9,231		1.43	%
Noninterest bearing deposits		29,157								23,357
Other liabilities		4,491								7,247
Total liabilities		695,130								677,193
Equity		80,891								75,436
Total liabilities and equity	$	776,021							$	752,629
Net interest income				$	30,322							$	32,078
Interest rate spread							4.00	%							4.32	%
Net interest margin							4.12	%							4.46	%

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Rate/Volume Analysis. For each category of interest-earning assets and interest-bearing liabilities, information is provided on changes attributable to (i) changes in volume (i.e., changes in volume multiplied by the previous rate) and (ii) changes in rate (i.e., changes in rate multiplied by old volume). For purposes of this table, changes attributable to both rate and volume, which cannot be segregated, have been allocated proportionately to the change due to volume and the change due to rate.

	Years ended December 31,
	2012 vs. 2011									2011 vs. 2010
	Variance due to change in									Variance due to change in
	Average Volume			Average Rate			Net Increase/ (Decrease)			Average Volume			Average Rate			Net Increase/ (Decrease)
	(In thousands)
Interest Income:
Loans (net of deferred costs/fees)	$	(1,130	)	$	(2,247	)	$	(3,377	)	$	490		$	(573	)	$	(83	)
Investment securities		(190	)		(113	)		(303	)		(236	)		(137	)		(373	)
Federal funds sold		95			22			117			73			8			81
Total interest income		(1,225	)		(2,338	)		(3,563	)		327			(702	)		(375	)
Interest Expense:
Deposits		596			(1,991	)		(1,395	)		611			(2,333	)		(1,722	)
Borrowed funds		(378	)		(34	)		(412	)		(35	)		(362	)		(397	)
Total interest expense		218			(2,025	)		(1,807	)		576			(2,695	)		(2,119	)
Net interest income	$	(1,443	)	$	(313	)	$	(1,756	)	$	(249	)	$	1,993		$	1,744

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Quarterly Financial Data (unaudited).

The following represents summarized unaudited quarterly financial data of the Company which, in the opinion of management, reflects adjustments (comprised only of normal recurring accruals) necessary for fair presentation.

	Three Months Ended
	December 31,		September 30,		June 30,		March 31,
	(Amounts in thousands, except per share amounts)
2012
Interest income	$	9,132	$	9,084	$	9,676	$	9,854
Interest expense		1,703		1,786		1,920		2,015
Net interest income		7,429		7,298		7,756		7,839
Provision for loan losses		1,500		1,500		2,050		2,250
Income before income tax expense		3,618		3,280		2,247		3,166
Income tax expense1		1,348		1,365		257		1,272
Net income		2,270		1,915		1,990		1,894
Net income available to common shareholders		1,702		1,468		1,596		1,535
Net income per common share:
Basic	$	0.31	$	0.25	$	0.30	$	0.31
Diluted	$	0.31	$	0.25	$	0.30	$	0.31
2011
Interest income	$	10,399	$	10,272	$	10,404	$	10,234
Interest expense		2,200		2,312		2,312		2,407
Net interest income		8,199		7,960		8,092		7,827
Provision for loan losses		3,600		2,350		2,100		2,400
Income before income tax expense		2,269		2,883		3,877		4,699
Income tax expense		919		1,161		1,564		1,880
Net income		1,350		1,722		2,313		2,819
Net income available to common shareholders		1,016		1,319		1,894		2,043
Net income per common share:
Basic	$	0.17	$	0.23	$	0.35	$	0.42
Diluted	$	0.17	$	0.23	$	0.35	$	0.40

1 Lower income tax expense in the quarter ended June 30, 2012 was due to the adoption of an alternative tax methodology for bank owned life insurance (“BOLI”) income whereby it is treated on a tax free basis.

8

Critical Accounting Policies and Estimates

Allowance for Losses on Loans.The allowance for loan losses is established as losses are estimated to have occurred through a provision for loan losses. Loans that are determined to be uncollectible are charged against the allowance account, and subsequent recoveries, if any, are credited to the allowance. When evaluating the adequacy of the allowance, an assessment of the loan portfolio will typically include changes in the composition and volume of the loan portfolio, overall portfolio quality and past loss experience, review of specific problem loans, current economic conditions which may affect borrowers' ability to repay, and other factors which may warrant current recognition. Such periodic assessments may, in management's judgment, require the Company to recognize additions or reductions to the allowance.

Various regulatory agencies periodically review the adequacy of the Company’s allowance for loan losses as an integral part of their examination process.  Such agencies may require the Company to recognize additions or reductions to the allowance based on their evaluation of information available to them at the time of their examination.  It is reasonably possible that the above factors may change significantly and, therefore, affect management’s determination of the allowance for loan losses in the near term.

Valuation of Investment Securities. Available for sale securities are reported at fair market value with unrealized gains and losses reported, net of deferred taxes, as comprehensive income, a component of shareholders’ equity.  Although held to maturity securities are reported at amortized cost, the valuation of all securities is subject to impairment analysis at each reporting date. The current market volatility may have an impact on the financial condition and the credit ratings of issuers and hence, the ability of issuers to meet their payment obligations.  Accordingly, these conditions could adversely impact the credit quality of the securities, and require an adjustment to the carrying value.

Other Than Temporary Impairment on Investment Securities. Management periodically performs analyses to determine whether there has been an other than temporary decline in the value of one or more securities. The available for sale securities portfolio is carried at estimated fair value, with any unrealized gains or losses, net of taxes, reported as accumulated other comprehensive income or loss in stockholders’ equity. The held to maturity securities portfolio, consisting of debt securities for which there is a positive intent and ability to hold to maturity, is carried at amortized cost. Management conducts a quarterly review and evaluation of the securities portfolio to determine if the value of any security has declined below its cost or amortized cost, and whether such decline is other than temporary. If such decline is deemed other than temporary, the cost basis of the security is adjusted by writing down the security to estimated fair market value through a charge to current period earnings to the extent that such decline is credit related. All other changes in unrealized gains or losses for investment securities available for sale are recorded, net of tax effect, through other comprehensive income.

Income Taxes. Deferred taxes are provided on a liability method whereby deferred tax assets are recognized for deductible temporary differences and operating loss carry forwards and deferred tax liabilities are recognized for taxable temporary differences.  Temporary differences are the difference between the reported amounts of assets and liabilities and their tax bases.  Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion, or all of the deferred tax assets, will not be realized.  Deferred tax assets and liabilities are

9

adjusted for the effects of changes in tax laws and rates on the date of enactment.  Realization of deferred tax assets is dependent on generating sufficient taxable income in the future.

When tax returns are filed, it is highly certain that some positions taken would be sustained upon examination by the taxing authorities, while others are subject to uncertainty about the merits of the position taken or the amount of the position that ultimately would be sustained. The benefit of a tax position is recognized in the financial statements in the period during which, based on all available evidence, management believes it is more likely than not that the position will be sustained upon examination, including the resolution of appeals or litigation processes, if any. The evaluation of a tax position taken is considered by itself and not offset or aggregated with other positions. Tax positions that meet the more likely than not recognition threshold are measured as the largest amount of tax benefit that is more than 50 percent likely of being realized upon settlement with the applicable taxing authority. The portion of benefits associated with tax positions taken that exceeds the amount measured, as described above, is reflected as a liability for unrecognized tax benefits in the accompanying balance sheet along with any associated interest and penalties that would be payable to the taxing authorities upon examination.

Operating Results for the Years Ended December 31, 2012 and 2011

Net Interest Income/Margins. The Company’s primary source of earnings is net interest income, which is the difference between income earned on interest-earning assets, such as loans and investment securities, and interest expense incurred on interest-bearing liabilities, such as deposits and borrowings. The level of net interest income is determined primarily by the average level of balances (“volume”) and the market rates associated with the interest-earning assets and interest-bearing liabilities.

Net interest income decreased $1.8 million, or 5.5%, to $30.3 million for 2012, from $32.1 million for 2011. We experienced a decrease in our interest rate spread of 32 basis points, to 4.00% for 2012, from 4.32% for 2011. Our net interest margin decreased 34 basis points, to 4.12% for 2012, from 4.46% for 2011. The decline is attributable to the combined effects of a lower yield on loans as well as a decrease in the average balance of loans, partially offset by a lower cost of deposits.

Interest income decreased $3.6 million, or 8.6%, to $37.7 million for 2012, from $41.3 million for 2011. The decrease is attributable to lower loan volumes and a lower yield on loans. Loan yields have been negatively impacted by the level of non-performing loans and the general interest rate environment.  Average loans for the year were $612.3 million compared to $630.6 million for 2011, while average loan yields were 5.96% for 2012 compared to 6.32% for 2011. Also, a decrease in the average volume of investments in 2012 contributed to this decrease.

Interest expense decreased $1.8 million, or 19.6%, to $7.4 million for 2012, from $9.2 million for 2011. The decrease is primarily attributable to a decline in the cost of funds. The average rate paid on deposits for 2012 was 1.05% compared to 1.35% for 2011. The Bank has been able to reprice deposits due to the current, historically low, rate environment while still maintaining deposit growth.

Provision for Loan Losses. We establish provisions for loan losses, which are charged to operations, in order to maintain the allowance for loan losses at a level we consider necessary to absorb credit losses incurred in the loan portfolio that are both probable and reasonably estimable at the balance sheet date. In determining the level of the allowance for loan losses, we consider, among other things, past and current loss experience, evaluations of real estate collateral, volume and type of lending, adverse

10

situations that may affect a borrower’s ability to repay a loan, the levels of delinquent loans and current local and national industry and economic conditions. The amount of the allowance is based on estimates, and the ultimate losses may vary from such estimates as more information becomes available or conditions change. We assess the allowance for loan losses and make provisions for loan losses on a monthly basis.

At December 31, 2012, the Company’s allowance for loans losses was $18.9 million, as compared to $19.3 million at December 31, 2011, a decrease of $387,000 or 2.0%. The allowance for loan loss as a percentage of gross loans decreased to 3.01% of gross loans at December 31, 2012, from 3.09% of gross loans at December 31, 2011. The allowance for loan losses to nonperforming loans coverage ratio decreased to 39.8% at December 31, 2012, from 43.5% at December 31, 2011. The decline in the allowance is attributable to the charge-off of specific reserves that had been established at December 31, 2011. We recorded a provision for loan losses of $7.3 million for 2012 compared to $10.5 million for 2011. Refer to Asset Quality on Page 14 for further discussion on the allowance.

Noninterest Income. Noninterest incomeis principally derived from gains on the sale of SBA loans, service fees on deposit accounts, fee income from loan services and BOLI income. Noninterest income totaled $4.4 million in 2012 versus $4.7 million in 2011.

The Company recognized $3.6 million in gains from the sale of the guaranteed portion of SBA loans in 2012, compared to a gain of $4.4 million in 2011. Warranty language was removed from the sales agreement during the first quarter of 2011 and the Company was no longer required to defer the recognition of the gain for 90 days. The gain recorded in 2011 represents loans sold during 2011 and previously deferred gains of $912 thousand from the quarter ended December 31, 2010.

Service charges on deposit accounts were $220 thousand in 2012, as compared to $221 thousand in 2011.

Loan fees were $394 thousand in 2012, an increase from $220 thousand in 2011. Loan fees consist primarily of “exit fees” that are charged on construction loans if the builder sells the property prior to the completion of the construction project and prepayment fees. These loan fees are variable in nature and are dependent upon the borrowers’ course of action.

OREO losses were $999 thousand in 2012, compared to $557 thousand in 2011. The increase in the loss was primarily attributable to a write-down in the carrying values of OREO due to a decline in the appraised values of the properties.

Other noninterest income, which includes ATM fees, debit card fees, early CD withdrawal penalties, rental income and other miscellaneous income, amounted to $969 thousand in 2012 and $352 thousand in 2011. The majority of the increase is due the recovery of legal fees that had been expensed in prior years.

Noninterest Expense. Noninterest expense for 2012 was $15.1 million, an increase of $2.5 million, or 19.4%, above 2011’s level of $12.6 million.

Compensation and benefits expense for 2012 was $5.9 million, an increase of $228 thousand over 2011. The increase is attributable to routine salary increases, higher benefits expense and increased staff.

11

Professional services in 2012 amounted to $1.7 million, an increase of $511 thousand from 2011. The continued high level of expense is primarily the result of the legal costs related to loan and compliance matters.

Occupancy and equipment expense was $1.0 million for 2012, an increase of $37 thousand over 2011.

FDIC insurance expense was $1.1 million for 2012, an increase of $109 thousand over 2011, with the increase due to deposit growth.

OREO expenses increased to $1.5 million in 2012, from $642 thousand in 2011. The increase is related to the carrying costs of OREO including property taxes, insurance and maintenance associated with a greater number of real estate properties than in the prior year.

Other operating expense increased to $3.4 million in 2012, from $2.7 million in 2011. The majority of the increase is expenses related to nonperforming loans, including force-placed insurance and payment of real estate taxes to protect the Bank’s lien position.

Income Taxes. Income tax expense amounted to $4.2 million for 2012, compared to $5.5 million for 2011, resulting in effective tax rates of 34.5% and 40.2% for the respective years. The decrease in income tax expense is due to lower earnings and the change to an alternative tax methodology for BOLI income whereby it is treated on a tax free basis.

12

Financial Condition at December 31, 2012 and December 31, 2011

At December 31, 2012, the Company’s total assets decreased to $770.5 million from $790.7 million at December 31, 2011, a decrease of $20.2 million or 2.6%.

Cash and cash equivalents decreased $33.3 million to $76.9 million at December 31, 2012, from $110.2 million at December 31, 2011. The decrease is due to the payoff of maturing borrowings.

Total investment securities decreased to $21.4 million at December 31, 2012 ($19.3 million classified as available for sale or 90.3%) from $24.5 million at December 31, 2011, a decrease of $3.1 million or 12.8%. The Company received $6.9 million in cash flow from maturities and principal payments, partially offset by purchases of $4.1 million.

Management evaluates the investment portfolio for other than temporary impairment (“OTTI”) on a quarterly basis. Factors considered in the analysis include, but are not limited to, whether an adverse change in cash flows has occurred, the length of time and the extent to which the fair value has been less than cost, whether the Company intends to sell, or will more likely than not be required to sell the investment before recovery of its amortized cost basis, which may be maturity, credit rating downgrades, the percentage of performing collateral that would need to default or defer to cause a break in yield or a temporary interest shortfall, and management’s assessment of the financial condition of the underlying issuers. For the year ended December 31, 2012, the Company did not recognize additional credit-related OTTI charges.

Total gross loans increased to $629.7 million at December 31, 2012, from $625.1 million at December 31, 2011, an increase of $4.6 million or 0.7%. Loan growth continues to be impacted by a difficult credit market.

OREO at December 31, 2012 was $26.1 million, compared to $19.4 million at December 31, 2011, an increase of $6.7 million. The real estate owned consisted of 33 properties, the largest being a condominium development at $12.8 million. This property was sold in 2010 but does not qualify for a sales treatment under accounting principles generally accepted in the United States (“GAAP”) because of continuing involvement by the Company in the form of financing.

BOLI increased to $10.7 million at December 31, 2012, from $5.5 million at December 31, 2011, an increase of $5.2 million or 93.9%. The Company increased its position by $5.0 million in the fourth quarter in order to offset the rising cost of employee benefits.

Other assets increased to $15.2 million at December 31, 2012, from $14.3 million at December 31, 2011, an increase of $930 thousand or 6.5%.

At December 31, 2012, the Bank’s total deposits increased to $637.2 million from $634.9 million at December 31, 2011, an increase of $2.3 million or 0.4%.  Noninterest bearing deposits decreased $804 thousand, or 2.6%, to $30.3 million at December 31, 2012, from $31.1 million at December 31, 2011.  NOW and money market accounts decreased $5.7 million, or 5.1%, to $106.2 million at December 31, 2012, from $111.9 million at December 31, 2011.  Savings accounts increased $17.2 million, or 8.1%, to $230.6 million at December 31, 2012, from $213.4 million at December 31, 2011.  Retail certificates of deposit decreased $7.2 million, or 2.8%, to $248.3 million at December 31, 2012, from $255.5 million at December 31, 2011. Brokered deposits decreased $1.2 million, or 5.2%, to $21.7 million at December

13

31, 2012, from $22.9 million at December 31, 2011. During 2012 the Company reduced its municipal deposit portfolio by $8.7 million due to the higher interest rates and collateralization requirements associated with these deposits.

Borrowings decreased $30.1 million, or 40.7%, to $43.9 million at December 31, 2012, from $74.0 million at December 31, 2011. Maturing Federal Home Loan Bank (“FHLBNY”) advances were allowed to runoff due to the Company’s cash position.

At December 31, 2012, total equity increased to $83.5 million from $77.3 million at December 31, 2011, an increase of $6.2 million, or 8.1%.

Asset Quality

The Company attempts to manage the risk characteristics of its loan portfolio through various control processes, such as credit evaluation of borrowers, establishment of lending limits and application of lending procedures, including the holding of adequate collateral and the maintenance of compensating balances. However, the Company seeks to rely primarily on the cash flow of its borrowers as the principal source of repayment. Although credit policies are designed to minimize risk, management recognizes that loan losses will occur and the amount of these losses will fluctuate depending on the risk characteristics of the loan portfolio as well as general and regional economic conditions.

The allowance for loan losses represents a reserve for losses inherent in the loan portfolio. The adequacy of the allowance for loan losses is evaluated periodically based on a review of all significant loans, with a particular emphasis on nonaccrual loans, past due and other loans that management believes require special attention.

For significant problem loans, management's review consists of an evaluation of the financial strengths of the borrower and the guarantor, the related collateral, and the effects of economic conditions. A loan is considered impaired when, based on current information and events, it is probable that the Company will be unable to collect the scheduled payments of principal or interest when due according to the contractual terms of the loan agreement. Impaired loans include loans identified as troubled debt restructurings (TDRs). Impairment is measured on a loan by loan basis for commercial loans in order to establish specific reserves by either the present value of expected future cash flows discounted at the loan’s effective interest rate, the loan’s obtainable market price, or the fair value of the collateral if the loan is collateral dependent. General reserves against the remaining loan portfolio are based on an analysis of historical loan loss ratios, loan charge-offs, delinquency trends, previous collection experience, and the risk rating on each individual loan along with an assessment of the effects of external economic conditions.

The Company maintains interest reserves for the purpose of making periodic and timely interest payments for borrowers that qualify. Management on a monthly basis reviews loans with interest reserves to assess current and projected performance. Total loans with interest reserves were $864 thousand and $14.6 million at December 31, 2012 and December 31, 2011, respectively.

Delinquent loans increased $5.0 million to $56.0 million, or 8.9% of total loans, at December 31, 2012, from $50.9 million, or 8.2% of total loans, at December 31, 2011. Delinquent loan balances by number of days delinquent at December 31, 2012 were: 31 to 89 days --- $8.4 million and 90 days and greater --- $47.5 million. Loans 90 days and more past due are no longer accruing interest.

14

At December 31, 2012, the Company had $47.5 million in nonperforming loans, or 7.6% of total loans, an increase from $44.5 million, or 7.1% of total loans, at December 31, 2011. The three largest relationships in nonperforming loans are a $7.9 million retail center construction loan, a $7.5 residential and commercial development loan, and a $6.6 million retail center construction loan.

At December 31, 2012, the Company had $73.6 million in nonperforming assets, which includes $47.5 million of nonperforming loans and $26.1 million of OREO, or 9.6% of total assets, an increase from $63.9 million, or 8.1% of total assets at December 31, 2011.

At December 31, 2012, the Company had $87.6 million in loans deemed impaired, a decrease from $97.2 million at December 31, 2011. Included in impaired loans are TDRs that were in compliance with their modified terms, totaling $40.0 million and $41.1 million at December 31, 2012 and December 31, 2011, respectively.

In response to the increase in impaired loans, the Company has developed and implemented several asset quality monitoring and management initiatives including the hiring of a Chief Credit Officer, creation of a Credit Risk Management Department and the establishment of a Credit Strategies Committee. Credit risk management activities include:

·   Stringent oversight of the real estate appraisal process in conformance with regulatory guidelines.

·   Monitoring overall portfolio quality and process integrity.

·   Reporting loan quality statistics and trends to executive management and to the Board.

·   Timely identification of problem credits.

·   Establishing problem asset action plans for OREO and criticized assets.

·   Identifying credit losses and presenting charge-off recommendations to the Asset Quality Committee and to the Board of Directors.

·   Assessing and recommending appropriate credit risk ratings to ensure that adequate quarterly provisions from earnings are made and that an adequate Allowance for Loan Losses is maintained.

The Company has also initiated certain actions to ensure that our origination of new loans and the identification and management of problem loans is sound. These actions include:

·   Implementation of added training for lending officers, portfolio managers and loan workout staff.

·   Increased focus on loan approvals and renewals that are based on global cash flows rather than individual transactions.

·   Implementation of more stringent real estate appraisal processes, policies and procedures.

·   Implementation of updated and enhanced credit policies related to credit underwriting, credit review and problem asset management.

·   Broadened focus on the reduction and collection of nonperforming and OREO assets through realignment of staff resources to ensure that we are acting on problem loans appropriately and in a timely manner.

The provision for loan losses is a charge to earnings in the current year to maintain the allowance at a level management has determined to be adequate based upon the factors noted above. The provision for loan losses amounted to $7.3 million for 2012, compared to $10.5 million for 2011. Net loan charge-offs/recoveries were $7.7 million in 2012 and $5.9 million in 2011.

15

At December 31, 2012, the Company’s allowance for loan losses decreased to $18.9 million, from $19.3 million at December 31, 2011, a decrease of $387 thousand or 2.0%. The allowance for loan loss ratio decreased to 3.01% of gross loans at December 31, 2012, from 3.09% of gross loans at December 31, 2011. The allowance for loan losses to nonperforming loans coverage ratio decreased to 39.8% at December 31, 2012, from 43.5% at December 31, 2011.The decline in the allowance is primarily attributable to the charge-off of specific reserves that had been established at December 31, 2011.

We believe we have appropriately established adequate loss reserves on problem loans that we have identified and to cover credit risks that are inherent in the portfolio as of December 31, 2012. However, we believe that nonperforming and delinquent loans will continue to increase as the current recession persists. We are aggressively managing all loan relationships. Credit monitoring and tracking systems have been instituted. Updated appraisals are being obtained, where appropriate, to ensure that collateral values are sufficient to cover outstanding loan balances. Cash flow dependent commercial real estate properties are being visited to inspect current tenant lease status. Where necessary, we will apply our loan work-out experience to protect our collateral position and actively negotiate with borrowers to resolve these nonperforming loans.

Income Taxes

The Company accounts for income taxes according to the asset and liability method. Under this method, deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax basis. Deferred tax assets and liabilities are measured using the enacted tax rates applicable to taxable income for the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. Valuation reserves are established against certain deferred tax assets when it is more likely than not that the deferred tax assets will not be realized. Increases or decreases in the valuation reserve are charged or credited to the income tax provision.

When tax returns are filed, it is highly certain that some positions taken would be sustained upon examination by the taxing authorities, while others are subject to uncertainty about the merits of the position taken or the amount of the position that ultimately would be sustained. The benefit of a tax position is recognized in the financial statements in the period during which, based on all available evidence, management believes it is more likely than not that the position will be sustained upon examination, including the resolution of appeals or litigation processes, if any. The evaluation of a tax position taken is considered by itself and not offset or aggregated with other positions. Tax positions that meet the more likely than not recognition threshold are measured as the largest amount of tax benefit that is more than 50 percent likely of being realized upon settlement with the applicable taxing authority. The portion of benefits associated with tax positions taken that exceeds the amount measured as described above is reflected as a liability for unrecognized tax benefits in the accompanying balance sheet along with any associated interest and penalties that would be payable to the taxing authorities upon examination. Interest and penalties associated with unrecognized tax benefits would be recognized in income tax expense on the income statement.

For additional information on income taxes, see Note 10 to the Consolidated Financial Statements.

16

Interest Rate Sensitivity and Liquidity

Interest rate sensitivity is an important factor in the management of the composition and maturity configurations of earning assets and funding sources. The primary objective of asset/liability management is to ensure the steady growth of our primary earnings component, net interest income. Net interest income can fluctuate with significant interest rate movements. To lessen the impact of interest rate movements, management endeavors to structure the balance sheet so that repricing opportunities exist for both assets and liabilities in roughly equivalent amounts at approximately the same time intervals. Imbalances in these repricing opportunities at any point in time constitute interest rate sensitivity.

The measurement of our interest rate sensitivity, or "gap," is one of the principal techniques used in asset/liability management. Interest sensitive gap is the dollar difference between assets and liabilities that are subject to interest-rate pricing within a given time period, including both floating rate or adjustable rate instruments and instruments that are approaching maturity.

Our management and the Board of Directors oversee the asset/liability management function through the asset/liability committee of the Board that meets periodically to monitor and manage the balance sheet, control interest rate exposure, and evaluate our pricing strategies. The asset mix of the balance sheet is continually evaluated in terms of several variables:  yield, credit quality, appropriate funding sources and liquidity. Management of the liability mix of the balance sheet focuses on expanding the various funding sources.

In theory, interest rate risk can be diminished by maintaining a nominal level of interest rate sensitivity. In practice, this is made difficult by a number of factors, including cyclical variation in loan demand, different impacts on interest-sensitive assets and liabilities when interest rates change, and the availability of funding sources. Accordingly, we undertake to manage the interest-rate sensitivity gap by adjusting the maturity of and establishing rates on the earning asset portfolio and certain interest-bearing liabilities commensurate with management's expectations relative to market interest rates. Management generally attempts to maintain a balance between rate-sensitive assets and liabilities as the exposure period is lengthened to minimize our overall interest rate risk.

17

Rate Sensitivity Analysis.The interest rate sensitivity position as of December 31, 2012, is presented in the table below. Assets and liabilities are scheduled based on maturity or repricing data except for mortgage loans and mortgage-backed securities, which are based on prevailing prepayment assumptions and expected maturities and deposits which are based on recent retention experience of core deposits. The difference between rate-sensitive assets and rate-sensitive liabilities, or the interest rate sensitivity gap, is shown at the bottom of the table. As of December 31, 2012, our interest sensitive liabilities exceeded interest sensitive assets within a one year period by $20.2 million, or 58.2%, of total assets.

	As of December 31, 2012
	3 Months or Less			Over 3 Months Through 12 Months			Over 1 Year Through 3 Years			Over 3 Years Through 5 Years			Over 5 Years Through 10 Years			Total
(Amounts in thousands)
Interest-earning assets:
Loans	$	72,712		$	113,841		$	167,577		$	96,234		$	133,859		$	584,223
Investment securities		2,400			3,492			5,932			1,903			8,677			22,404
Federal funds sold and cash equivalents		74,265			—			—			—			—			74,265
Total interest-earning assets	$	149,377		$	117,333		$	173,509		$	98,137		$	142,536		$	680,892
Interest-bearing liabilities:
Regular savings deposits	$	10,785		$	32,355		$	86,280		$	80,243		$	20,958		$	230,621
NOW and money market deposits		6,132			18,394			48,349			29,143			4,177			106,195
Retail time deposits		50,172			128,982			48,826			20,317			—			248,297
Brokered time deposits		4,934			11,810			5,008			—			—			21,752
Borrowed funds		13,403			10,000			20,448			—			—			43,851
Total interest-bearing liabilities	$	85,426		$	201,541		$	208,911		$	129,703		$	25,135		$	650,716
Interest rate sensitive gap	$	63,951		$	(84,208	)	$	(35,402	)	$	(31,566	)	$	117,401		$	30,176
Cumulative interest rate gap	$	63,951		$	(20,257	)	$	(55,659	)	$	(87,225	)	$	30,176			—
Ratio of rate-sensitive assets to rate-sensitive liabilities		174.86	%		58.22	%		83.05	%		75.66	%		567.08	%		104.64	%

Liquidity describes our ability to meet the financial obligations that arise out of the ordinary course of business. Liquidity addresses the Company's ability to meet deposit withdrawals on demand or at contractual maturity, to repay borrowings as they mature, and to fund current and planned expenditures. Liquidity is derived from increased repayment and income from earning assets. Our loan to deposit ratio was 98.8% and 98.5% at December 31, 2012 and December 31, 2011, respectively. Funds received from new and existing depositors provided a large source of liquidity during 2012 and 2011. The Company seeks to rely primarily on core deposits from customers to provide stable and cost-effective sources of funding to support loan growth. The Bank also seeks to augment such deposits with longer term and higher yielding certificates of deposit.

18

Brokered deposits are a more volatile source of funding than core deposits and do not increase the deposit franchise of the Bank. In a rising rate environment, the Bank may be unwilling or unable to pay a competitive rate. To the extent that such deposits do not remain with the Bank, they may need to be replaced with borrowings which could increase the Bank’s cost of funds and negatively impact its interest rate spread, financial condition and results of operation. To mitigate the potential negative impact associated with brokered deposits, the Bank joined Promontory Inter Financial Network to secure an additional alternative funding source. Promontory provides the Bank an additional source of external funds through their weekly CDARS® settlement process. The rates are comparable to brokered deposits and can be obtained within a shorter period time than brokered deposits. The Bank’s CDARS deposits included within the brokered deposit total amounted to $21.8 million and $22.9 million at December 31, 2012 and December 31, 2011, respectively.  To the extent that retail deposits are not adequate to fund customer loan demand, liquidity needs can be met in the short term funds market. Longer term funding requirements can be obtained through advances from the FHLBNY. As of December 31, 2012, the Bank maintained unused lines of credit with the FHLBNY totaling $75.5 million.

As of December 31, 2012, the Bank's investment securities portfolio included $12.9 million of mortgage-backed securities that provide additional cash flow each month. The majority of the investment portfolio is classified as available for sale, is readily marketable, and is available to meet liquidity needs. The Bank's residential real estate portfolio includes loans, which are underwritten to secondary market criteria, and provide an additional source of liquidity. Presently the residential mortgage loan portfolio and certain qualifying commercial real estate loans are pledged under a blanket lien to the FHLBNY as collateral. Management is not aware of any known trends, demands, commitments or uncertainties that are reasonably likely to result in material changes in liquidity.

Off-Balance Sheet Arrangements

The Bank is a party to financial instruments with off-balance sheet risk in the normal course of business to meet the financing needs of its customers. These financial instruments include commitments to extend credit and standby letters of credit. These instruments involve, to varying degrees, elements of credit risk in excess of the amount recognized in the consolidated balance sheet. The contract or notional amounts of these instruments reflect the extent of the Bank's involvement in these particular classes of financial instruments. The Bank's exposure to credit loss in the event of nonperformance by the other party to the financial instruments for commitments to extend credit and standby letters of credit is represented by the contractual or notional amount of those instruments. The Bank uses the same credit policies in making commitments and conditional obligations as they do for on-balance sheet instruments.

Commitments to extend credit are agreements to lend to a customer as long as there is no violation of any condition established in the contract. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. Since many of the commitments are expected to expire without being drawn upon, the total commitment amounts do not necessarily represent future cash requirements. The Bank evaluates each customer's credit-worthiness on a case-by-case basis. The amount of collateral obtained, if deemed necessary upon the extension of credit, is based on management's credit evaluation. Collateral held varies but may include accounts receivable, inventory, property, plant and equipment and income-producing commercial properties. As of December 31, 2012 and 2011, commitments to extend credit amounted to approximately $50.8 million and $54.8 million, respectively.

19

Standby letters of credit are conditional commitments issued by the Bank 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 December 31, 2012 and 2011, standby letters of credit with customers were $5.8 million and $6.9 million, respectively.

Loan commitments and standby letters of credit are issued in the ordinary course of business to meet customer needs. Commitments to fund fixed-rate loans were immaterial at December 31, 2012. Variable-rate commitments are generally issued for less than one year and carry market rates of interest. Such instruments are not likely to be affected by annual rate caps triggered by rising interest rates. Management believes that off-balance sheet risk is not material to the results of operations or financial condition.

The following table sets forth information regarding the Bank’s contractual obligations and commitments as of December 31, 2012.

	Payments Due by Period
	Less than 1 year			1-3 Years			3-5 years			More than 5 years			Total
					(Amounts in thousands)
Retail time deposits		$	179,154		$	48,826		$	20,317		$	—		$	248,297
Brokered time deposits			16,744			5,008			—			—			21,752
Borrowed funds			10,000			20,448			—			13,403			43,851
Operating lease obligations			140			387			31			—			558
Total contractual obligations		$	206,038		$	74,669		$	20,348		$	13,403		$	314,458
	Amount of Commitments Expiring by Period
	Less than 1 year			1-3 Years			3-5 years			More than 5 years			Total
					(Amounts in thousands)
Loan Commitments		$	20,534		$	—		$	—		$	—		$	20,534
Lines of Credit			31,449			3,914			789			14,668			50,820
Total Commitments		$	51,983		$	3,914		$	789		$	14,668		$	71,354

Impact of Inflation and Changing Prices

The consolidated financial statements and notes have been prepared in accordance with GAAP, which require the measurement of financial position and operating results in terms of historical dollars without considering the change in the relative purchasing power of money over time and due to inflation. The impact of inflation is reflected in the increased cost of our operations. Unlike most industrial companies, nearly all of our assets are monetary in nature. As a result, market interest rates have a greater impact on our performance than do the effects of general levels of inflation. Interest rates do not necessarily move in the same direction or to the same extent as the price of goods and services.

20

MARKET PRICES AND DIVIDENDS

General

The Company's common stock is listed on the Nasdaq Capital Market under the trading symbol of "PKBK". The following table reflects high and low sales prices as reported on www.nasdaq.com during each quarter of the last two fiscal years. Prices reflect a 10% stock dividend paid in May 2012.

2012	High		Low
1st Quarter	$	6.49	$	4.95
2nd Quarter	$	6.93	$	4.88
3rd Quarter	$	5.50	$	5.01
4th Quarter	$	6.28	$	4.97
2011	High		Low
1st Quarter	$	9.30	$	8.27
2nd Quarter	$	8.70	$	6.71
3rd Quarter	$	7.23	$	6.14
4th Quarter	$	6.72	$	4.72

The number of shareholders of record of common stock as of March 14, 2013, was approximately 343.  This does not reflect the number of persons or entities who held stock in nominee or "street" name through various brokerage firms. At March 22, 2013, there were 5,383,893 shares of our common stock outstanding.

Holders of the Company's common stock are entitled to receive dividends when, and if declared by the Board of Directors out of funds legally available therefore. The timing and amount of future dividends will be within the discretion of the Board of Directors and will depend on the consolidated earnings, financial condition, liquidity, and capital requirements of the Company and its subsidiaries, applicable governmental regulations and policies, and other factors deemed relevant by the Board.

The Company's ability to pay dividends is substantially dependent upon the dividends it receives from the Bank and is subject to other restrictions. Under current regulations, the Bank's ability to pay dividends is restricted as well. On April 9, 2012, the Bank entered into Consent Orders with the FDIC and the New Jersey Department of Banking and Insurance (the “Department”) that requires the Bank to obtain the prior approval of the FDIC and the Department before declaring or paying any dividend (see Note 12).

Under the New Jersey Banking Act of 1948, a bank may declare and pay dividends only if after payment of the dividend the capital stock of the bank will be unimpaired and either the bank will have a surplus of not less than 50% of its capital stock or the payment of the dividend will not reduce the bank's surplus.

21

The Federal Deposit Insurance Act generally prohibits all payments of dividends by any insured bank that is in default of any assessment to the FDIC. Additionally, because the FDIC may prohibit a bank from engaging in unsafe or unsound practices, it is possible that under certain circumstances the FDIC could claim that a dividend payment constitutes an unsafe or unsound practice. The New Jersey Department of Banking and Insurance has similar power to issue cease and desist orders to prohibit what might constitute unsafe or unsound practices. The payment of dividends may also be affected by other factors (e.g., the need to maintain adequate capital or to meet loan loss reserve requirements).

22

MANAGEMENT’S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING

Management is responsible for establishing and maintaining adequate internal control over financial reporting, as such term is defined in Exchange Act Rule 13a- 15(f). The Company’s internal control over financial reporting includes those policies and procedures that (i) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the Company; (ii) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the Company are being made only in accordance with authorization of management and directors of the Company; and (iii) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the Company’s assets that could have a material effect on the financial statements.

Internal control over financial reporting is designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements prepared for external purposes in accordance with generally accepted accounting principles. Because of inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies and procedures may deteriorate.

Under supervision and with the participation of management, including our principal executive officer and principal financial officer, we conducted an evaluation of the effectiveness of our internal control over financial reporting based on the framework in Internal Control - Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission. Based on our evaluation under the framework in Internal Control - Integrated Framework, management concluded that our internal control over financial reporting was effective as of December 31, 2012.

March 22, 2013

Vito S. Pantilione	John F. Hawkins
President and Chief Executive Officer	Senior Vice President and Chief Financial Officer

23

Parke Bancorp, Inc. and Subsidiaries

Consolidated Financial Report

December 31, 2012

Parke Bancorp, Inc. and Subsidiaries

Contents
	Page
Report of Independent Registered Public Accounting Firm	1
Financial Statements
Consolidated Balance Sheets	2
Consolidated Statements of Income	3
Consolidated Statements of Comprehensive Income	4
Consolidated Statements of Equity	5
Consolidated Statements of Cash Flows	6
Notes to Consolidated Financial Statements	7

Report of Independent Registered Public Accounting Firm

To the Board of Directors and Shareholders

Parke Bancorp, Inc.

We have audited the accompanying consolidated balance sheets of Parke Bancorp, Inc. and Subsidiaries (the “Company”) as of December 31, 2012 and 2011 and the related consolidated statements of income, comprehensive income, equity, and cash flows for the years then ended.  These consolidated financial statements are the responsibility of the Company’s management.  Our responsibility is to express an opinion on these financial statements based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States).  Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement.  The Company is not required to have, nor were we engaged to perform, an audit of its internal controls over financial reporting. Our audits included consideration of internal controls over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control over financial reporting. Accordingly, we express no such opinion. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation.  We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the financial position of Parke Bancorp, Inc. and Subsidiaries as of December 31, 2012 and 2011, and the results of their operations and their cash flows for the years then ended, in conformity with U.S. generally accepted accounting principles.

/s/ McGladrey LLP

Blue Bell, Pennsylvania

March 22, 2013

1

Parke Bancorp, Inc. and Subsidiaries
Consolidated Balance Sheets
December 31, 2012 and 2011
(in thousands except share and per share data)	December 31,			December 31,
	2012			2011
Assets
Cash and due from financial institutions	$	2,601		$	3,733
Federal funds sold and cash equivalents		74,265			106,495
Cash and cash equivalents		76,866			110,228
Investment securities available for sale, at fair value		19,340			22,517
Investment securities held to maturity (fair value of  $2,239  at December 31, 2012 and $2,080 at December 31, 2011)		2,066			2,032
Total investment securities		21,406			24,549
Loans held for sale		495			225
Loans, net of unearned income		629,712			625,117
Less: Allowance for loan losses		(18,936	)		(19,323	)
Net loans		610,776			605,794
Accrued interest receivable		2,727			3,039
Premises and equipment, net		3,989			4,122
Other real estate owned (OREO)		26,057			19,410
Restricted stock, at cost		2,223			3,565
Bank owned life insurance (BOLI)		10,743			5,541
Deferred tax asset		11,898			10,594
Other assets		3,297			3,671
Total Assets	$	770,477		$	790,738
Liabilities and Equity
Liabilities
Deposits
Noninterest-bearing deposits	$	30,342		$	31,146
Interest-bearing deposits		606,865			603,709
Total deposits		637,207			634,855
FHLBNY borrowings		20,448			50,607
Other borrowed funds		10,000			10,000
Subordinated debentures		13,403			13,403
Accrued interest payable		537			618
Other liabilities		5,339			3,982
Total liabilities		686,934			713,465
Equity
Preferred stock, cumulative perpetual, $1,000 liquidation value; authorized 1,000,000 shares; Issued: 16,288 shares at December 31, 2012 and December 31, 2011		16,065			15,868
Common stock, $.10 par value; authorized 10,000,000 shares; Issued: 5,594,793 shares at December 31, 2012 and 5,097,078 shares at December 31, 2011		560			510
Additional paid-in capital		48,869			45,844
Retained earnings		21,068			17,808
Accumulated other comprehensive loss		(745	)		(626	)
Treasury stock, 210,900 shares at December 31, 2012 and December 31, 2011, at cost		(2,180	)		(2,180	)
Total shareholders’ equity		83,637			77,224
Noncontrolling interest in consolidated subsidiaries		(94	)		49
Total equity		83,543			77,273
Total liabilities and equity	$	770,477		$	790,738

See accompanying notes to consolidated financial statements

2

Parke Bancorp, Inc. and Subsidiaries
Consolidated Statements of Income
Years Ended December 31, 2012 and 2011
(in thousands except share and per share data)	2012			2011
Interest income:
Interest and fees on loans	$	36,474		$	39,851
Interest and dividends on investments		1,026			1,329
Interest on federal funds sold and cash equivalents		246			129
Total interest income		37,746			41,309
Interest expense:
Interest on deposits		6,483			7,878
Interest on borrowings		941			1,353
Total interest expense		7,424			9,231
Net interest income		30,322			32,078
Provision for loan losses		7,300			10,450
Net interest income after provision for loan losses		23,022			21,628
Noninterest income
Gain on sale of SBA loans		3,582			4,439
Loan fees		394			220
Net income from BOLI		202			179
Service fees on deposit accounts		220			221
Other than temporary impairment losses		—			(132	)
Portion of loss recognized in other comprehensive income (OCI) (before taxes)		—			3
Net impairment losses recognized in earnings		—			(129	)
Loss on sale and write-down of real estate owned		(999	)		(557	)
Other		969			352
Total noninterest income		4,368			4,725
Noninterest expense
Compensation and benefits		5,866			5,638
Professional services		1,746			1,235
Occupancy and equipment		1,043			1,006
Data processing		410			405
FDIC  insurance		1,094			985
OREO expense		1,529			642
Other operating expense		3,391			2,714
Total noninterest expense		15,079			12,625
Income before income tax expense		12,311			13,728
Income tax expense		4,242			5,524
Net income attributable to Company and noncontrolling interest		8,069			8,204
Net income attributable to noncontrolling interest		(756	)		(932	)
Net income attributable to Company		7,313			7,272
Preferred stock dividend and discount accretion		1,012			1,000
Net income available to common shareholders	$	6,301		$	6,272
Earnings per common share
Basic	$	1.17		$	1.17
Diluted	$	1.17		$	1.15
Weighted average shares outstanding
Basic		5,379,558			5,374,561
Diluted		5,382,596			5,466,458

See accompanying notes to consolidated financial statements

3

Parke Bancorp, Inc. and Subsidiaries
Consolidated Statements of Comprehensive Income
Years Ended December 31, 2012 and 2011
	For the Year ended December 30,
	2012			2011
	(in thousands)
Net income attributable to Company and other comprehensive income:	$	7,313			$	7,272
Unrealized gains on securities:
Non-credit related unrealized gains on securities with OTTI		25				24
Unrealized (losses) gains on securities without OTTI		(247	)			21
Tax Impact		89				(18	)
Total unrealized (losses) gains on securities		(133	)			27
Gross pension liability adjustments		23				68
Tax Impact		(9	)			(28	)
Total pension liability adjustment		14				40
Total other comprehensive (loss) income		(119	)			67
Total comprehensive income	$	7,194			$	7,339

See accompanying notes to consolidated financial statements

4

Parke Bancorp, Inc. and Subsidiaries
Consolidated Statements of Equity
Years Ended December 31, 2012 and 2011
(in thousands)
	Preferred Stock		Shares of Common Stock		Common Stock		Additional Paid-In Capital		Retained Earnings			Accumulated Other Comprehensive Loss			Treasury Stock			Total Shareholders’Equity			Non-Controlling Interest			Total Equity
	(in thousands except share data)
Balance, December 31, 2010	$	15,683		4,653,133	$	465	$	41,931	$	15,494		$	(693	)	$	(2,180	)	$	70,700		$	32		$	70,732
Capital withdrawals by noncontrolling  interest																						(915	)		(915	)
10% common stock dividend				443,945		45		3,913		(3,958	)								—						—
Net income										7,272									7,272			932			8,204
Changes in other comprehensive income													67						67						67
Dividend on preferred stock (5% annually)										(815	)								(815	)					(815	)
Accretion of discount on preferred stock		185								(185	)								—						—
Balance, December 31, 2011	$	15,868		5,097,078	$	510	$	45,844	$	17,808		$	(626	)	$	(2,180	)	$	77,224		$	49		$	77,273
Capital withdrawals by noncontrolling  interest																						(899	)		(899	)
Stock options exercised				9,332		1		34											35						35
10% common stock dividend				488,383		49		2,991		(3,041	)								(1	)					(1	)
Net income										7,313									7,313			756			8,069
Changes in other comprehensive income													(119	)					(119	)					(119	)
Dividend on preferred stock (5% annually)										(815	)								(815	)					(815	)
Accretion of discount on preferred stock		197								(197	)								—						—
Balance, December 31, 2012	$	16,065		5,594,793	$	560	$	48,869	$	21,068		$	(745	)	$	(2,180	)	$	83,637		$	(94	)	$	83,543

See accompanying notes to consolidated financial statements

5

Parke Bancorp, Inc. and Subsidiaries
Consolidated Statements of Cash Flows
Years Ended December 31, 2012 and 2011
(in thousands)
	2012			2011
Cash Flows from Operating Activities
Net income	$	8,069		$	8,204
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		358			366
Provision for loan losses		7,300			10,450
Bank owned life insurance		(202	)		(179	)
Supplemental executive retirement plan expense		135			353
Gain on sale of SBA loans		(3,582	)		(4,439	)
SBA loans originated for sale		(32,199	)		(27,171	)
Proceeds from sale of SBA loans originated for sale		35,595			30,230
Loss on sale & write down of other real estate owned		999			558
Contribution of OREO property		139			—
Other than temporary decline in value of investments		—			129
Net accretion of purchase premiums and discounts on securities		3			(68	)
Deferred income tax benefit		(1,343	)		(1,801	)
Changes in operating assets and liabilities:
(Increase) decrease in accrued interest receivable and other assets		851			1,180
Increase (decrease) in accrued interest payable and other accrued liabilities		1,161			(328	)
Net cash provided by operating activities		17,284			17,484
Cash Flows from Investing Activities
Purchases of investment securities available for sale		(4,148	)		(1,537	)
Redemptions (purchases) of restricted stock		1,342			(525	)
Purchase of additional bank owned life insurance		(5,000	)		—
Proceeds from sale and call of securities available for sale		1,000			500
Proceeds from maturities and principal payments on mortgage backed securities		5,940			6,198
Proceeds from sale of other real estate owned		3,533			3,414
Advances on other real estate owned		(223	)		(4,802	)
Net increase in loans		(23,378	)		(6,173	)
Purchases of bank premises and equipment		(225	)		(209	)
Net cash used in investing activities		(21,159	)		(3,134	)
Cash Flows from Financing Activities
Payment of dividend on preferred stock		(815	)		(815	)
Cash payment of fractional shares on 10% stock dividend		(1	)		(1	)
Minority interest capital withdrawal, net		(899	)		(915	)
Proceeds from exercise of stock options and warrants		35			—
Net (decrease) increase in FHLBNY and short term borrowings		(30,159	)		9,848
Net (decrease) increase in noninterest-bearing deposits		(804	)		7,978
Net increase in interest-bearing deposits		3,156			22,155
Net cash (used in) provided by financing activities		(29,487	)		38,250
(Decrease) Increase in cash and cash equivalents		(33,362	)		52,600
Cash and Cash Equivalents, January 1,		110,228			57,628
Cash and Cash Equivalents, December 31,	$	76,866		$	110,228
Supplemental Disclosure of Cash Flow Information:
Cash paid during the year for:
Interest on deposits and borrowed funds	$	7,505		$	9,441
Income taxes	$	5,600		$	5,700
Supplemental Schedule of Noncash Activities:
Real estate acquired in settlement of loans	$	11,095		$	1,879

See accompanying notes to consolidated financial statements

6

PARKE BANCORP, INC. AND SUBSIDIARIES

NOTES TO FINANCIAL STATEMENTS

Note  1.   Description of Business and Summary of Significant Accounting Policies

Description of Business:  Parke Bancorp, Inc. (the “Company”) is a bank holding company headquartered in Sewell, New Jersey.  Through subsidiaries, the Company provides individuals, corporations and other businesses, and institutions with commercial and retail banking services, principally loans and deposits.  The Company was incorporated in January 2005 under the laws of the State of New Jersey for the sole purpose of becoming the holding company of Parke Bank (the "Bank").

The Bank is a commercial bank, which was incorporated on August 25, 1998, and commenced operations on January 28, 1999.  The Bank is chartered by the New Jersey Department of Banking and Insurance and insured by the Federal Deposit Insurance Corporation.  The Bank maintains its principal office at 601 Delsea Drive, Sewell, New Jersey, and four additional branch office locations; 501 Tilton Road, Northfield, New Jersey, 567 Egg Harbor Road, Washington Township, New Jersey, 67 East Jimmie Leeds Road, Galloway Township, New Jersey and 1610 Spruce Street in Philadelphia, Pennsylvania.

The accounting and financial reporting policies of the Company and Subsidiaries conform to accounting principles generally accepted in the United States of America (“GAAP”) and to general practices within the banking industry.  The policies that materially affect the determination of financial position, results of operations and cash flows are summarized below.

Principles of Consolidation:  The accompanying consolidated financial statements include the accounts of Parke Bancorp, Inc. and its wholly-owned subsidiaries, Parke Bank and Parke Capital Markets, an inactive corporation. Also included are the accounts of 44 Business Capital Partners LLC, a joint venture formed in 2009 to originate and service Small Business Administration (“SBA”) loans. Parke Bank has a 51% ownership interest in the joint venture. Parke Capital Trust I, Parke Capital Trust II and Parke Capital Trust III are wholly-owned subsidiaries but are not consolidated because they do not meet the requirements for consolidation under applicable accounting guidance.  All significant inter-company balances and transactions have been eliminated.

Investment Securities:  At December 31, 2012 and 2011, the Company held investment securities that would be held for indefinite periods of time, including securities that would be used as part of the Company’s asset/liability management strategy and possibly sold in response to changes in interest rates, prepayments and similar factors.  These securities are classified as “available for sale” and are carried at fair value, with any temporary unrealized gains or losses reported as other comprehensive income, net of the related income tax effect.

At December 31, 2012 and 2011, the Company also reported investments in securities that were carried at cost, adjusted for amortization of premium and accretion of discount.  The Company has the intent and ability to hold these investment securities to maturity considering all reasonably foreseeable events or conditions.  These securities are classified as “held to maturity.”

Declines in the fair value of individual debt securities below their cost that are deemed to be other than temporary result in write-downs of the individual securities to their fair value. Debt securities that are deemed to be other than temporarily impaired are reflected in earnings as realized losses to the extent impairment is related to credit losses. The amount of the impairment for debt securities related to other

7

factors is recognized in other comprehensive income (loss). In evaluating other than temporary impairment losses, management considers (1) the length of time and the extent to which the fair value has been less than cost, (2) the reasons for the decline in value, (3) the financial position and access to capital of the issuer, including the current and future impact of any specific events, and (4) for fixed maturity securities, whether the Company intends to sell the security, or it is more likely than not that the Company will be required to sell the security before recovery of the cost basis, which may be maturity.

The amortization of premiums and accretion of discounts over the contractual lives of the related securities are recognized in interest income using the interest method.  Gains and losses on the sale of such securities are accounted for using the specific identification method.

Restricted Stock:  Restricted stock includes investments in the common stock of the Federal Home Loan Bank of New York (“FHLBNY”) and the Atlantic Central Bankers Bank for which no market exists and, accordingly, is carried at cost. The stocks have no quoted market value and are subject to redemption restrictions. Management reviews for impairment based on the ultimate recoverability of the cost basis in the stock.The stocks’ value is determined by the ultimate recoverability of the par value rather than by recognizing temporary declines. Management considers such criteria as the significance of the decline in net assets, if any, the length of time this situation has persisted and the financial performance of the issuers. In addition, any commitments by the FHLBNY to make payments required by law or regulation, the impact of legislative and regulatory changes on the customer base of the FHLBNY and the liquidity position of the FHLBNY.

Loans:  The Company makes commercial, real estate and consumer loans to customers.  A substantial portion of the loan portfolio is represented by loans in the Southern New Jersey and Philadelphia, Pennsylvania markets.  The ability of the Company’s debtors to honor their contracts is dependent upon the real estate and general economic conditions in this area.  Loans that management has the intent and ability to hold for the foreseeable future or until maturity or pay-off generally are reported at their outstanding unpaid principal amount, adjusted for charge-offs, the allowance for loan losses and any unamortized deferred fees or costs on originated loans.  Interest income on loans is recognized as earned based on contractual interest rates applied to daily principal amounts outstanding.

Loans-Nonaccrual:  Loans are placed on nonaccrual status when, in management's opinion, the borrower may be unable to meet contractual payment obligations as they become due, as well as when a loan is 90 days past due, unless the loan is well secured and in the process of collection, as required by regulatory provision. Loans may be placed on nonaccrual status regardless of whether or not such loans are considered past due. When interest accrual is discontinued, all unpaid accrued interest is reversed. Interest income is subsequently recognized only to the extent cash payments are received in excess of principal due.

Troubled Debt Restructurings:  Troubled debt restructurings (“TDRs”) are loans for which the Company, for legal or economic reasons related to a debtor’s financial difficulties, has granted a concession to the debtor that it otherwise would not have considered. Concessions that result in the categorization of a loan as a troubled debt restructuring include:

•   Reduction (absolute or contingent) of the stated interest rate;

•   Extension of the maturity date or dates at a stated interest rate lower than the current market rate for new debt with similar risk;

8

•   Reduction (absolute or contingent) of the face amount or maturity amount of the debt as stated in the instrument or other agreement; or

•   Reduction (absolute or contingent) of accrued interest.

TDRs are reported as impaired loans. Interest income on TDR loans is recognized consistent with the Bank’s nonaccrual loan policy stated above.

Loans Held for Sale:  Loans held for sale are the guaranteed portion of SBA loans and are carried at the lower of aggregate cost or fair value. The net amount of loan origination fees on loans sold is included in the carrying value and in the gain or loss on the sale. The Company originates loans to customers under an SBA program that generally provides for SBA guarantees of up to 75 percent of each loan.  When the sale of the guaranteed portion of an SBA loan occurs, with retained servicing, the premium received on the sale and the present value of future cash flows of the servicing assets represent gain on the sale and are recognized in income over the estimated life of the loan. Income and fees collected for servicing are credited to noninterest income, net of amortization of the related servicing asset.

Concentration of Credit Risk:  The Company’s loans are generally to diversified customers in Southern New Jersey and the Philadelphia area of Pennsylvania.  Loans to general building contractors, general merchandise stores, restaurants, motels, warehouse space, and real estate ventures (including construction loans) constitute a majority of commercial loans.  The concentrations of credit by type of loan are set forth in Note 4.  Generally, loans are collateralized by assets of the borrower and are expected to be repaid from the borrower’s cash flow or proceeds from the sale of selected assets of the borrower.

Loan Fees:  Loan fees and direct costs associated with loan originations are netted and deferred.  The deferred amount is recognized as an adjustment to loan interest over the term of the related loans using the interest method.  Loan brokerage fees represent commissions earned for facilitating loans between borrowers and other companies and is recorded as loan fee income. Loan fee income also includes prepayment penalties on loans.

Allowance for Loan Losses:  The allowance for loan losses is maintained through charges to the provision for loan losses in the Consolidated Statements of Income as losses are estimated to have occurred.  Loans or portions thereof that are determined to be uncollectible are charged against the allowance, and subsequent recoveries, if any, are credited to the allowance.  The allowance is an amount that management believes will be adequate to absorb estimated losses relating to specifically identified loans, as well as probable credit losses in the balance of the loan portfolio, based on an evaluation of collectability of existing loans and prior loss experience.  When evaluating the adequacy of the allowance, an assessment of the loan portfolio will typically take into consideration changes in the composition and volume of the loan portfolio, overall portfolio quality and past loss experience, review of specific problem loans, current economic conditions which may affect borrowers’ ability to repay, and other factors which may warrant current recognition.  Such periodic assessments may, in management’s judgment, require the Company to recognize additions or reductions to the allowance.

Various regulatory agencies periodically review the adequacy of the Company’s allowance for loan losses as an integral part of their examination process.  Such agencies may require the Company to recognize additions or reductions to the allowance based on their evaluation of information available to them at the time of their examination.  It is reasonably possible that the above factors may change significantly and, therefore, affect management’s determination of the allowance for loan losses in the near term.

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The allowance consists of specific and general components.  The specific component relates to loans that are classified as impaired, including TDRs.  For those loans that are classified as impaired, an allowance is established when the discounted cash flows (or collateral value for collateral dependent loans or observable market price) of the impaired loan is lower than the carrying value of that loan. The general component covers non-classified loans and is based on historical charge-off experience and expected losses given the Company’s internal risk rating process. Other adjustments may be made to the allowance for pools of loans after an assessment of internal or external influences on credit quality that are not reflected in the historical loss or risk rating data.

A loan is considered impaired when, based on current information and events, it is probable that the Company will be unable to collect the scheduled payments of principal or interest when due according to the contractual terms of the loan agreement.  Loans that experience insignificant payment delays and payment shortfalls generally are not classified as impaired.  Management determines the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration all of the circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrower’s prior payment record, and the amount of the shortfall in relation to the principal and interest owed.  Factors considered by management when evaluating impaired loans include payment status, collateral value, and the probability of collecting scheduled principal and interest payments when due.  Impairment is measured on a loan by loan basis for commercial loans by either the present value of expected future cash flows discounted at the loans effective interest rate, the loan’s obtainable market price, or the fair value of the collateral if the loan is collateral dependent.

Large groups of smaller balance homogeneous loans are collectively evaluated for impairment.  Accordingly, the Company does not separately evaluate individual consumer loans for impairment.

Other Real Estate Owned (“OREO”):  Real estate acquired through foreclosure or other proceedings is carried at fair value less estimated costs of disposal. Costs of improving OREO are capitalized to the extent that the carrying value does not exceed its fair value less estimated selling costs. Subsequent valuation adjustments, if any, are recognized as a charge against current earnings. Holding costs are charged to expense. Gains and losses on sales are recognized in noninterest income as they occur.

Interest Rate Risk:  The Company is principally engaged in the business of attracting deposits from the general public and using these deposits, together with other borrowed and brokered funds, to make commercial, commercial mortgage, residential mortgage, and consumer loans, and to invest in overnight and term investment securities.  Inherent in such activities is interest rate risk that results from differences in the maturities and repricing characteristics of these assets and liabilities.  For this reason, management regularly monitors the level of interest rate risk and the potential impact on net income.

Bank Premises and Equipment:  Bank premises and equipment are stated at cost less accumulated depreciation and amortization.  Depreciation is computed and charged to expense using the straight-line method over the estimated useful lives of the assets, generally three years for computers and software, five to ten years for equipment and forty years for buildings.  Leasehold improvements are amortized to expense over the shorter of the term of the respective lease or the estimated useful life of the improvements.

Income Taxes:  Deferred taxes are provided on a liability method whereby deferred tax assets are recognized for deductible temporary differences and operating loss carry forwards and deferred tax liabilities are recognized for taxable temporary differences.  Temporary differences are the difference

10

between the reported amounts of assets and liabilities and their tax bases.  Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized.  Deferred tax assets and liabilities are adjusted for the effects of changes in tax laws and rates on the date of enactment.  Realization of deferred tax assets is dependent on generating sufficient taxable income in the future.

When tax returns are filed, it is highly certain that some positions taken would be sustained upon examination by the taxing authorities, while others are subject to uncertainty about the merits of the position taken or the amount of the position that ultimately would be sustained. The benefit of a tax position is recognized in the financial statements in the period during which, based on all available evidence, management believes it is more-likely-than not that the position will be sustained upon examination, including the resolution of appeals or litigation processes, if any. The evaluation of a tax position taken is considered by itself and not offset or aggregated with other positions. Tax positions that meet the more likely-than not recognition threshold are measured as the largest amount of tax benefit that is more than 50 percent likely of being realized upon settlement with the applicable taxing authority. The portion of benefits associated with tax positions taken that exceeds the amount measured as described above is reflected as a liability for unrecognized tax benefits in the accompanying balance sheet along with any associated interest and penalties that would be payable to the taxing authorities upon examination.

Interest and penalties associated with unrecognized tax benefits would be recognized in income tax expense on the income statement.

The Company did not recognize any interest or penalties related to income tax during the years ended December 31, 2012 or 2011.  The Company does not have an accrual for uncertain tax positions as of December 31, 2012 or 2011, as deductions taken and benefits accrued are based on widely understood administrative practices and procedures and are based on clear and unambiguous tax law.  Tax returns for all years 2009 and thereafter are subject to further examination by tax authorities, with the exception of the State of New Jersey for which tax returns for all years 2008 and thereafter are subject to further examination.

Use of Estimates:  The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and reported amounts of revenues and expenses during the reporting period.  Actual results could differ from those estimates.  Material estimates that are particularly susceptible to significant change in the near term include the allowance for loan losses, other than temporary impairment losses on investment securities, the valuation of deferred income taxes, servicing assets and carrying value of OREO.

Segment Reporting:  The Company operates one reportable segment of business, “community banking”.  Through its community banking segment, the Company provides a broad range of retail and community banking services.

Reclassifications:  Certain items in the 2011 financial statements have been reclassified to conform to the 2012 presentation. Such reclassifications have no impact on prior year earnings and shareholders equity.

Comprehensive Income:  Comprehensive income consists of net income and other gains and losses affecting shareholders' equity that, under GAAP, are excluded from net income, including unrealized

11

gains and losses on available for sale securities and gains or losses, prior service costs or credits, and transition assets or obligations associated with pension or other postretirement benefits that have not been recognized as components of net periodic benefit cost.

The Company recognizes the overfunded or underfunded status of a defined benefit postretirement plan as an asset or a liability in the consolidated balance sheet and changes in that funded status through comprehensive income in the year the changes occur. The accounting guidance related to compensation-retirement benefits also requires an employer to measure the funded status of a plan as of the date of the employer's year-end statement of financial position.  The Company has recorded an expense for the unfunded status of $198 thousand and $450 thousand for the years ended December 31, 2012 and 2011, respectively, relating to a Supplemental Executive Retirement Plan ("SERP") (Note 11).

Accumulated other comprehensive loss consisted of the following at December 31, 2012 and 2011:

	2012			2011
	(Amounts in thousands)
Securities
Non-credit unrealized losses on available for sale securities with OTTI	$	(499	)	$	(524	)
Unrealized losses on available for sale securities without OTTI		(499	)		(252	)
Minimum pension liability		(244	)		(268	)
Tax impact		497			418
	$	(745	)	$	(626	)

Earnings Per Common Share:  Basic earnings per common share is computed by dividing net income available to common shareholders by the weighted average number of common shares outstanding during the period.  Diluted earnings per common share considers common stock equivalents (when dilutive) outstanding during the period such as options and warrants outstanding.  To the extent that stock equivalents are anti-dilutive, they have been excluded from the earnings per share calculation. Both basic and diluted earnings per share computations give retroactive effect to a stock dividend declared and paid in 2012 and 2011 (Note 13).  Earnings per common share have been computed based on the following for 2012 and 2011:

	2012		2011
	(Amounts in thousands, except share data)
Basic earnings per common share
Net income available to common shareholders	$	6,301	$	6,272
Average common shares outstanding		5,379,558		5,374,561
Basic earnings per common share	$	1.17	$	1.17
Diluted earnings per common share
Net income available to common shareholders	$	6,301	$	6,272
Average common shares outstanding		5,379,558		5,374,561
Dilutive potential common shares		3,038		91,897
Total diluted average common shares outstanding		5,382,596		5,466,458
Diluted earnings per common share	$	1.17	$	1.15

For 2012 and 2011, options to purchase 301,553 shares and 335,214 shares, respectively, were outstanding but were not included in the computation of diluted EPS because the options’ common stock equivalents were anti-dilutive.

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Statement of Cash Flows:  Cash and cash equivalents include cash and due from financial institutions and federal funds sold.  For the purposes of the statement of cash flows, changes in loans and deposits are shown on a net basis.

Recently Issued Accounting Pronouncements:

In May 2011, FASB issued ASU 2011-04, Fair Value Measurement (Topic 820) - Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in U.S. GAAP and IFRSs. This ASU does not extend the use of fair value accounting, but provides guidance on how it should be applied where its use is already required or permitted. This guidance is to be applied prospectively and is effective during interim and annual periods beginning after December 15, 2011. Adoption of this guidance has not had a material impact on results of operations or financial condition.

In June 2011, the FASB issued guidance to improve the comparability, consistency and transparency of financial reporting and to increase the prominence of items reported in other comprehensive income. The amendments require that all non-owner changes in stockholders’ equity be presented either in a single continuous statement of comprehensive income or in two separate but consecutive statements. The amendments do not change the items that must be reported in other comprehensive income or when an item of other comprehensive income must be reclassified to net income. The amendments are effective for interim and annual periods beginning after December 15, 2011 with retrospective application. The Company adopted the accounting standard on January 1, 2012, as required, with no material impact on its results of operations or financial position.

In April 2011, the FASB issued ASU No. 2011-03, Reconsideration of Effective Control for Repurchase Agreements. This ASU amends guidance clarifying when the Bank can recognize a sale upon the transfer of financial assets subject to a repurchase agreement. That determination is based, in part, on whether the Bank has maintained effective control over the transferred financial assets. Under the amended guidance, the FASB concluded that the assessment of effective control should focus on a transferor's contractual rights and obligations with respect to transferred financial assets, not on whether the transferor has the practical ability to perform in accordance with those rights or obligations. The amended guidance was effective for transactions that occur in interim and annual periods beginning on or after December 15, 2011. The Bank accounts for all of its existing repurchase agreements as secured borrowings and therefore, the adoption of this amended guidance on January 1, 2012 did not have a material impact on the Company's Consolidated Financial Statements.

In December 2011, the FASB issued ASU No. 2011-11, Balance Sheet (Topic 210): Disclosures about Offsetting Assets and Liabilities.This ASU will require companies to disclose gross and net information about both instruments and transactions eligible for offset in the statement of financial position and instruments and transactions subject to an agreement similar to a master netting arrangement. The scope will include derivatives, sale and repurchase agreements and reverse sale and repurchase agreements, and securities borrowing and securities lending arrangements. The amendments are effective for interim and annual periods beginning on or after January 1, 2013. The amendment is not expected to impact the Company's financial condition, results of operations or cash flows.

13

Note  2.   Cash and Due from Banks

The Company maintains various deposit accounts with other banks to meet normal funds transaction requirements, to satisfy deposit reserve requirements, and to compensate other banks for certain correspondent services.  Management is responsible for assessing the credit risk of its correspondent banks.  The withdrawal or usage restrictions of these balances did not have a significant impact on the operations of the Company as of December 31, 2012 or 2011, because reserve requirements were covered by vault cash.

Note  3.   Investment Securities

The following is a summary of the Company's investment in available for sale and held to maturity securities as of December 31, 2012 and 2011: 

As of December 31, 2012	Amortized cost		Gross unrealized gains		Gross unrealized losses		Other than temporary impairments in OCI		Fair value
Available for sale:	(Amounts in thousands)
U.S. Government sponsored entities	$	7	$	—	$	—	$	—	$	7
Corporate debt obligations		1,500		24		—		—		1,524
Residential mortgage-backed securities		12,359		540		—		—		12,899
Collateralized mortgage obligations		916		58		—		—		974
Collateralized debt obligations		5,556		—		1,121		499		3,936
Total available for sale	$	20,338	$	622	$	1,121	$	499	$	19,340
Held to maturity:
States and political subdivisions	$	2,066	$	173	$	—	$	—	$	2,239

 

As of December 31, 2011	Amortized cost		Gross unrealized gains		Gross unrealized losses		Other than temporary impairments in OCI		Fair value
Available for sale:	(Amounts in thousands)
U.S. Government sponsored entities	$	1,006	$	5	$	—	$	—	$	1,011
Corporate debt obligations		1,500		43		57		—		1,486
Residential mortgage-backed securities		13,697		764		—		—		14,461
Collateralized mortgage obligations		1,534		73		—		13		1,594
Collateralized debt obligations		5,556		—		1,080		511		3,965
Total available for sale	$	23,293	$	885	$	1,137	$	524	$	22,517
Held to maturity:
States and political subdivisions	$	2,032	$	87	$	39	$	—	$	2,080

14

The amortized cost and fair value of debt securities classified as available for sale and held to maturity, by contractual maturity, as of December 31, 2012, are as follows:

	Amortized Cost		Fair Value
	(Amounts in thousands)
Available for sale:
Due within one year	$	—	$	—
Due after one year through five years		—		—
Due after five years through ten years		2,958		3,001
Due after ten years		7,062		5,467
Residential mortgage-backed securities and collateralized mortgage obligations		10,318		10,872
Total available for sale	$	20,338	$	19,340

Held to maturity:
Due within one year	$	—	$	—
Due after one year through five years		—		—
Due after five years through ten years		—		—
Due after ten years		2,066		2,239
Total held to maturity	$	2,066	$	2,239

Expected maturities will differ from contractual maturities for mortgage related securities because the issuers of certain debt securities do have the right to call or prepay their obligations without any penalties.

There were no sales of investment securities during the year ending December 31, 2012. During the year ending December 31, 2011, the Company sold one investment security with a carrying value of $500 thousand, recognizing a gain of $1 thousand.

As of December 31, 2012 and 2011, approximately $10.3 million and $8.9 million, respectively, of investment securities are pledged as collateral for borrowed funds (Note 9).  In addition, securities with a carrying value of $4.2 million and $8.4 million, respectively, were pledged to secure public deposits at December 31, 2012 and 2011.

The following tables show the gross unrealized losses and fair value of the Company's investments with unrealized losses that are not deemed to be other than temporarily impaired (“OTTI”), aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, at December 31, 2012 and December 31, 2011:

As of December 31, 2012	Less Than 12 Months				12 Months or Greater				Total
Description of Securities	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
	(Amounts in thousands)
Available for sale:
Collateralized debt obligations		—		—		3,629		1,121		3,629		1,121
Total available for sale	$	—	$	—	$	3,629	$	1,121	$	3,629	$	1,121
Held to maturity:
States and political subdivisions	$	—	$	—	$	—	$	—	$	—	$	—

15

As of December 31, 2011	Less Than 12 Months				12 Months or Greater				Total
Description of Securities	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
	(Amounts in thousands)
Available for sale:
Corporate debt obligations		—		—		443		57		443		57
Collateralized debt obligations		—		—		3,670		1,080		3,670		1,080
Total available for sale	$	—	$	—	$	4,113	$	1,137	$	4,113	$	1,137
Held to maturity:
States and political subdivisions	$	758	$	39	$	—	$	—	$	758	$	39

Collateralized Debt Obligations:  The Company’s unrealized loss on investments in collateralized debt obligations (“CDOs”) relates to three securities issued by financial institutions, totaling $3.6 million with an unrealized loss of 30.0% at December 31, 2012. CDOs are pooled securities primarily secured by trust preferred securities (“TruPS”), subordinated debt and surplus notes issued by small and mid-sized banks and insurance companies. These securities are generally floating rate instruments with 30-year maturities, and are callable at par by the issuer after five years. The current economic downturn has had a significant adverse impact on the financial services industry; consequently, TruPS CDOs do not have an active trading market. With the assistance of competent third-party valuation specialists, the Company utilized the following methodology to determine the fair value:

Cash flows were developed based on the estimated speeds at which the TruPS are expected to prepay, the estimated rates at which the TruPS are expected to defer payments, the estimated rates at which the TruPS are expected to default, and the severity of the losses on securities which default. TruPS generally allow for prepayment by the issuer without a prepayment penalty any time after five years. Due to the lack of new TruPS issuances and the relatively poor conditions of the financial institution industry, a relatively modest rate of prepayment was assumed going forward. Estimates for conditional default rates (“CDR”) are based on the payment characteristics of the TruPS themselves (e.g. current, deferred, or defaulted) as well as the financial condition of the TruPS issuers in the pool. Estimates for the near-term rates of deferral and CDR are based on key financial ratios relating to the financial institutions’ capitalization, asset quality, profitability and liquidity. Finally, we consider whether or not the financial institution has received TARP funding, and if it has, the amount. Longer-term rates of deferral and defaults on based on historical averages. The fair value of each bond was assessed by discounting their projected cash flows by a discount rate.  The discount rates were based on the yields of publicly traded TruPS and preferred stock issued by comparably rated banks.  The fair value for previous reporting periods was based on indicative market bids and resulted in much lower values due to the inactive trading market.

The underlying issuers have been analyzed, and projections have been made regarding the future performance, considering factors including defaults and interest deferrals.  The analysis indicates that the Company should expect to receive all contractual cash flows.  Because the Company does not intend to sell the investment and it is not more likely than not that the Company will be required to sell the investment before recovery of its amortized cost basis, which may be maturity, it does not consider these investments to be other than temporarily impaired at December 31, 2012 or December 31, 2011.

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Other Than Temporarily Impaired Debt Securities

We assess whether we intend to sell or it is more likely than not that we will be required to sell a security before recovery of its amortized cost basis less any current-period credit losses. For debt securities that are considered other than temporarily impaired and that we do not intend to sell and will not be required to sell prior to recovery of our amortized cost basis, we separate the amount of the impairment into the amount that is credit related (credit loss component) and the amount due to all other factors. The credit loss component is recognized in earnings and is the difference between the security’s amortized cost basis and the present value of its expected future cash flows. The remaining difference between the security’s fair value and the present value of future expected cash flows is due to factors that are not credit related and is recognized in other comprehensive income.

The present value of expected future cash flows is determined using the best estimate of cash flows discounted at the effective interest rate implicit to the security at the date of purchase or the current yield to accrete an asset-backed or floating rate security. The methodology and assumptions for establishing the best estimate of cash flows vary depending on the type of security. The asset-backed securities’ cash flow estimates are based on bond-specific facts and circumstances that may include collateral characteristics, expectations of delinquency and default rates, loss severity and prepayment speeds and structural support, including subordination and guarantees. The corporate bond cash flow estimates are derived from scenario-based outcomes of expected corporate restructurings or the disposition of assets using bond specific facts and circumstances including timing, security interests and loss severity.

We have a process in place to identify debt securities that could potentially have a credit impairment that is other than temporary.  This process involves monitoring late payments, pricing levels, downgrades by rating agencies, key financial ratios, financial statements, revenue forecasts and cash flow projections as indicators of credit issues.  On a quarterly basis, we review all securities to determine whether an OTTI exists and whether losses should be recognized. We consider relevant facts and circumstances in evaluating whether a credit or interest rate-related impairment of a security is other than temporary. Relevant facts and circumstances considered include: (1) the extent and length of time the fair value has been below cost; (2) the reasons for the decline in value; (3) the financial position and access to capital of the issuer, including the current and future impact of any specific events and (4) for fixed maturity securities, our intent to sell a security or whether it is more likely than not we will be required to sell the security before the recovery of its amortized cost which, in some cases, may extend to maturity and for equity securities, our ability and intent to hold the security for a period of time that allows for the recovery in value.

The following table presents a roll-forward of the credit loss component of the amortized cost of debt securities that we have written down for OTTI and the credit component of the loss that is recognized in earnings. OTTI recognized in earnings for credit-impaired debt securities is presented as additions in two components based upon whether the current period is the first time the debt security was credit-impaired (initial credit impairment) or is not the first time the debt security was credit impaired (subsequent credit impairments). The credit loss component is reduced if we sell, intend to sell or believe we will be required to sell previously credit-impaired debt securities. Additionally, the credit loss component is reduced if we receive cash flows in excess of what we expected to receive over the remaining life of the credit-impaired debt security, the security matures or is fully written down. Changes in the credit loss component of credit-impaired debt securities were as follows for 2012 and 2011.

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	2012			2011
	(Amounts in thousands)
Beginning balance	$	1,950		$	2,657
Initial credit impairment		—			—
Subsequent credit impairments		—			129
Reductions for amounts recognized in earnings due to intent or requirement to sell		—			—
Reductions for securities sold		—			—
Reductions for securities deemed worthless(1)		(731	)		(836	)
Reductions for increases in cash flows expected to be collected		—			—
Ending balance	$	1,219		$	1,950

(1) Reduction due to credit losses applied to private label CMO tranche.

A summary of investment gains and losses recognized in income during the years ended December 31, 2012 and 2011 are as follows:

	2012		2011
	(Amounts in thousands)
Available for sale securities:
Realized gains	$	—	$	1
Realized (losses)		—		—
Other than temporary impairment		—		(130	)
Total available for sale securities	$	—	$	(129	)
Held to maturity securities:
Realized gains	$	—	$	—
Realized (losses)		—		—
Other than temporary impairment		—		—
Total held to maturity securities	$	—	$	—

The Company did not recognize a loss in 2012, but recognized a $129 thousand loss during 2011, of OTTI losses on available for sale securities, attributable to impairment charges recognized on privately issued CMOs.

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Note  4.   Loans

The portfolio of loans outstanding consists of:

	December 31, 2012					December 31, 2011
	Amount		Percentage of Total Loans			Amount		Percentage of Total Loans
	(Amounts in thousands)
Commercial and Industrial	$	21,925		3.5	%	$	24,136		3.9	%
Real Estate Construction:
Residential		7,331		1.2			21,287		3.4
Commercial		41,875		6.6			50,361		8.1
Real Estate Mortgage:
Commercial – Owner Occupied		157,616		25.0			147,449		23.6
Commercial – Non-owner Occupied		221,731		35.2			204,216		32.6
Residential – 1 to 4 Family		140,164		22.3			138,768		22.2
Residential – Multifamily		21,181		3.4			20,126		3.2
Consumer		17,889		2.8			18,774		3.0
Total Loans	$	629,712		100.0	%	$	625,117		100.0	%

The Company maintains interest reserves for the purpose of making periodic and timely interest payments for borrowers that qualify for development and construction loans. Total development and construction loans with interest reserves were $864 thousand and $14.6 million at December 31, 2012 and December 31, 2011, respectively. Interest reserves provide borrowers temporary sources of cash flow which can be used to make interest payments during the development or construction phases of a project. It is our expectation that equity in the project increases as the project moves towards completion and that cash flows will be positive once sales begin or stabilization occurs. Loans with interest reserves are monitored throughout the life of the project. Interest accrual may be suspended on interest reserve dependent loans that are not delinquent but are risk rated substandard or worse.

At December 31, 2012 and 2011, approximately $133.6 million and $154.2 million, respectively, of loans were pledged to the FHLBNY on borrowings (Note 9). This pledge consists of a blanket lien on residential mortgages and certain qualifying commercial real estate loans.

Loan Origination/Risk Management:  In the normal course of business the Company is exposed to a variety of operational, reputational, legal, regulatory and credit risks that could adversely affect our financial performance. Most of our asset risk is primarily tied to credit (lending) risk. The Company has lending policies, guidelines and procedures in place that are designed to maximize loan income within an acceptable level of risk. The Board of Directors reviews and approves these policies, guidelines and procedures.  When we originate a loan we make certain subjective judgments about the borrower’s ability to meet the loan’s terms and conditions. We also make objective and subjective value assessments on the assets we finance. The borrower’s ability to repay can be adversely affected by economic changes. Likewise, changes in market conditions and other external factors can affect asset valuations. The Company actively monitors the quality of its loan portfolio. A reporting system supplements the credit review process by providing management with frequent reports related to loan production, loan quality, concentrations of credit risk, loan delinquencies, troubled debt restructures,

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nonperforming and potential problem loans. Diversification in the loan portfolio is another means of managing risk associated with fluctuations in economic conditions.

With respect to construction loans to developers and builders that are secured by non-owner occupied properties, the Company generally requires the borrower to have had an existing relationship with the Company and have a proven record of success. Construction loans are underwritten utilizing feasibility studies, independent appraisal reviews, sensitivity analysis of absorption and lease rates and financial analysis of the developers and property owners. Construction loans are generally underwritten based upon estimates of costs and value associated with the complete project. These estimates may be inaccurate. Construction loans often involve the disbursement of substantial funds with repayment substantially dependent on the success of the ultimate project. Sources of repayment for these types of loans may be pre-committed permanent loans from approved long-term lenders, sales of developed property or an interim loan commitment from the Company until permanent financing is obtained. These loans are closely monitored by on-site inspections and are considered to have higher risks than other real estate loans due to their ultimate repayment being sensitive to interest rate changes, governmental regulation of real property, general economic conditions and the availability of long-term financing.

Commercial real estate loans are subject to underwriting standards and processes similar to commercial loans, in addition to those of real estate loans. Commercial real estate loans may be riskier than those for one-to-four family residences and are typically larger in dollar size. These loans are viewed primarily as cash flow loans and secondarily as loans secured by real estate. The repayment of these loans is generally largely dependent on the successful operation and management of the property securing the loan or the business conducted on the property securing the loan. Commercial real estate loans may be more adversely affected by conditions in the real estate markets or in the general economy. The properties securing the Company’s commercial real estate portfolio are diverse in terms of type and geographic location within our market area. This diversity helps reduce the Company's exposure to adverse economic events that affect any single market or industry. Management monitors and evaluates commercial real estate loans based on collateral, geography and risk grade criteria. The Company also monitors economic conditions and trends affecting market areas it serves. In addition, management tracks the level of owner-occupied commercial real estate loans versus non-owner occupied loans. At December 31, 2012, approximately 41.0% of the outstanding principal balance of the Company’s commercial real estate loans were secured by owner-occupied properties.

Consumer loans may carry a higher degree of repayment risk than residential mortgage loans. Repayment is typically dependent upon the borrower’s financial stability which is more likely to be adversely affected by job loss, illness, or personal bankruptcy. To monitor and manage consumer loan risk, policies and procedures are developed and modified as needed. This activity, coupled with relatively small loan amounts that are spread across many individual borrowers, minimizes risk. Additionally, trend and outlook reports are reviewed by management on a regular basis. Underwriting standards for home equity loans are heavily influenced by statutory requirements, which include, but are not limited to, a maximum loan-to-value percentage of 80%, collection remedies, the number of such loans a borrower can have at one time and documentation requirements. Historically the Company’s losses on consumer loans have been negligible.

The Company maintains an outsourced independent loan review program that reviews and validates the credit risk assessment program on a periodic basis. Results of these external independent reviews are presented to management. In 2011 the Company expanded its risk monitoring program by creating a standalone Credit Risk Management Department. The external independent loan review process

20

complements and reinforces the risk identification and assessment decisions made by lenders and credit risk management personnel.

Concentrations of Credit:  Most of the Company's lending activity occurs within the areas of southern New Jersey and southeastern Pennsylvania, as well as other markets. Our expanded market area includes geographic areas that are actively solicited by our joint venture partner, 44 Business Capital LLC, for the origination of SBA guaranteed loans. The majority of the Company's loan portfolio consists of commercial real estate loans. As of December 31, 2012 and December 31, 2011, there was one industry sector concentration that exceeded 10% of total loans. Loans to lessors of retail buildings totaled $76.8 million, or 12.2% of total loans and $71.1 million or 11.4% of total loans at December 31, 2012 and December 31, 2011, respectively.

Loans to Related Parties:In the normal course of business, the Company has granted loans to officers, directors and their affiliates (related parties).  All loans to related persons were made in the ordinary course of business; were made on substantially the same terms, including interest rates and collateral, as those prevailing at the same time for comparable loans with persons not related to the Bank; and did not involve more than the normal risk of collectability or present other unfavorable features.

An analysis of the activity of such related party loans for 2012 and 2011 is as follows:

	2012			2011
	(Amounts in thousands)
Balance, beginning of year	$	22,049		$	24,023
Advances		1,970			248
Less: repayments		(388	)		(2,222	)
Less: adjustments		(7,027	)		—
Balance, end of year	$	16,606		$	22,049

The adjustment of $7.0 million represents 4 loans by a former Board member.

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An age analysis of past due loans by class follows:

December 31, 2012	30-59 Days Past Due			60-89 Days Past Due			Greater than 90 Days and Not Accruing			Total Past Due			Current		Total Loans			Loans > 90 Days and Accruing
	(Amounts in thousands)
Commercial and Industrial	$	—	$		—	$		248	$		248	$		21,677	$	21,925	$		—
Real Estate Construction:
Residential		—			—			799			799			6,532		7,331			—
Commercial		—			—			12,958			12,958			28,917		41,875			—
Real Estate Mortgage:
Commercial – Owner Occupied		—			—			1,218			1,218			156,398		157,616			—
Commercial – Non-owner Occupied		6,439			—			19,228			25,667			196,064		221,731			—
Residential – 1 to 4 Family		1,703			169			10,072			11,944			128,220		140,164			—
Residential – Multifamily		—			—			2,838			2,838			18,343		21,181			—
Consumer		71			49			188			308			17,581		17,889			—
Total Loans	$	8,213	$		218	$		47,549	$		55,980	$		573,732	$	629,712	$		—

December 31, 2011	30-59 Days Past Due			60-89 Days Past Due			Greater than 90 Days and Not Accruing			Total Past Due			Current		Total Loans			Loans > 90 Days and Accruing
	(Amounts in thousands)
Commercial and Industrial	$	603	$		—	$		—	$		603	$		23,533	$	24,136	$		—
Real Estate Construction:
Residential		350			—			5,265			5,615			15,672		21,287			—
Commercial		—			—			7,703			7,703			42,658		50,361			—
Real Estate Mortgage:
Commercial – Owner Occupied		1,358			—			4,797			6,155			141,294		147,449			—
Commercial – Non-owner Occupied		1,574			—			18,132			19,706			184,510		204,216			—
Residential – 1 to 4 Family		2,587			—			7,691			10,278			128,490		138,768			—
Residential – Multifamily		—			—			597			597			19,529		20,126			—
Consumer		—			—			274			274			18,500		18,774			—
Total Loans	$	6,472	$		—	$		44,459	$		50,931	$		574,186	$	625,117	$		—

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Impaired Loans: Loans are considered impaired when, based on current information and events, it is probable the Company will be unable to collectamounts due in accordance with the original contractual terms of the loan agreement, including scheduled principal and interest payments.

 All impaired loans have are assessed for recoverability based on an independent third-party full appraisal to determine the net realizable value (“NRV”) based on the fair value of the underlying collateral, less cost to sell and other costs, such as unpaid real estate taxes, that have been identified, or the present value of discounted cash flows in the case of certain impaired loans that are not collateral dependent. The appraisal will be based on an "as-is" valuation and will follow a reasonable valuation method that addresses the direct sales comparison, income, and cost approaches to market value, reconciles those approaches, and explains the elimination of each approach not used. Appraisals are generally updated every 12 months or sooner if we have identified possible further deterioration in value. Prior to receiving the updated appraisal, we will establish a specific reserve for any estimated deterioration, based upon our assessment of market conditions, adjusted for estimated costs to sell and other identified costs. If the NRV is greater than the loan amount, then no impairment loss exists. If the NRV is less than the loan amount, the shortfall is recognized by a specific reserve. If the borrower fails to pledge additional collateral in the ninety day period, a charge-off equal to the difference between the loan carrying value and NRV will occur. In certain circumstances, however, a direct charge-off may be taken at the time that the NRV calculation reveals a shortfall. All impaired loans are evaluated based on the criteria stated above on a quarterly basis and any change in the reserve requirements are recorded in the period identified. All partially charged-off loans remain on nonaccrual status until they are brought current as to both principal and interest and have at least nine months of payment history and future collectability of principal and interest is assured.

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Impaired loans are set forth in the following tables.

December 31, 2012	Recorded Investment		Unpaid Principal Balance		Related Allowance
	(Amounts in thousands)
With no related allowance recorded:
Commercial and Industrial	$	248	$	315	$	—
Real Estate Construction:
Residential		800		2,126		—
Commercial		12,891		12,891		—
Real Estate Mortgage:
Commercial – Owner Occupied		876		1,031		—
Commercial – Non-owner Occupied		19,228		22,027		—
Residential – 1 to 4 Family		8,945		9,372		—
Residential – Multifamily		2,838		2,838		—
Consumer		188		188		—
		46,014		50,788		—
With an allowance recorded:
Commercial and Industrial		500		500		10
Real Estate Construction:
Residential		187		661		24
Commercial		1,988		2,045		96
Real Estate Mortgage:
Commercial – Owner Occupied		5,718		5,748		216
Commercial – Non-owner Occupied		29,187		29,187		1,053
Residential – 1 to 4 Family		3,605		4,290		301
Residential – Multifamily		377		377		6
Consumer		—		—		—
		41,562		42,808		1,706
Total:
Commercial and Industrial		748		815		10
Real Estate Construction:
Residential		987		2,787		24
Commercial		14,879		14,936		96
Real Estate Mortgage:
Commercial – Owner Occupied		6,594		6,779		216
Commercial – Non-owner Occupied		48,415		51,214		1,053
Residential – 1 to 4 Family		12,550		13,662		301
Residential – Multifamily		3,215		3,215		6
Consumer		188		188		—
	$	87,576	$	93,596	$	1,706

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December 31, 2011	Recorded Investment		Unpaid Principal Balance		Related Allowance
	(Amounts in thousands)
With no related allowance recorded:
Commercial and Industrial	$	603	$	603	$	—
Real Estate Construction:
Residential		4,440		5,246		—
Commercial		12,898		13,118		—
Real Estate Mortgage:
Commercial – Owner Occupied		6,946		6,946		—
Commercial – Non-owner Occupied		30,424		30,852		—
Residential – 1 to 4 Family		8,477		10,737		—
Residential – Multifamily		597		667		—
Consumer		229		229		—
		64,614		68,398		—
With an allowance recorded:
Commercial and Industrial		—		—		—
Real Estate Construction:
Residential		4,170		5,151		1,297
Commercial		3,329		3,329		380
Real Estate Mortgage:
Commercial – Owner Occupied		590		590		23
Commercial – Non-owner Occupied		17,820		17,940		2,526
Residential – 1 to 4 Family		3,388		3,589		600
Residential – Multifamily		3,268		3,268		33
Consumer		—		—		—
		32,565		33,867		4,859
Total:
Commercial and Industrial		603		603		—
Real Estate Construction:
Residential		8,610		10,397		1,297
Commercial		16,227		16,447		380
Real Estate Mortgage:
Commercial – Owner Occupied		7,536		7,536		23
Commercial – Non-owner Occupied		48,244		48,792		2,526
Residential – 1 to 4 Family		11,865		14,326		600
Residential – Multifamily		3,865		3,935		33
Consumer		229		229		—
	$	97,179	$	102,265	$	4,859

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The following table presents by loan portfolio class, the average recorded investment and interest income recognized on impaired loans for the years ended December 31, 2012 and 2011:

	Year Ended December 31,
	2012				2011
	Average Recorded Investment		Interest Income Recognized		Average Recorded Investment		Interest Income Recognized
	(Amounts in thousands)
Commercial and Industrial	$	776	$	18	$	599	$	25
Real Estate Construction:
Residential		1,898		57		11,978		377
Commercial		14,933		202		16,164		475
Real Estate Mortgage:
Commercial – Owner Occupied		6,854		251		7,590		215
Commercial – Non-owner Occupied		51,883		2,007		50,907		2,649
Residential – 1 to 4 Family		13,174		389		14,921		334
Residential – Multifamily		3,526		216		4,688		288
Consumer		189		2		231		12
Total	$	93,233	$	3,142	$	107,078	$	4,375

Troubled debt restructurings: Periodically management evaluates our loans in order to determine the appropriate risk rating, interest accrual status and potential classification as a TDR, some of which are performing and accruing interest. A TDR is a loan on which we have granted a concession due to a borrower’s financial difficulty. These are concessions that would not otherwise be considered. The terms of these modified loans may include extension of maturity, renewals, changes in interest rate, additional collateral requirements or infusion of additional capital into the project by the borrower to reduce debt or to support future debt service. On construction and land development loans we may modify the loan as a result of delays or other project issues such as slower than anticipated sell-outs, insufficient leasing activity and/or a decline in the value of the underlying collateral securing the loan. Management believes that working with a borrower to restructure a loan provides us with a better likelihood of collecting our loan. It is our policy not to renegotiate the terms of a commercial loan simply because of a delinquency status. However, we will use our Troubled Debt Restructuring Program to work with delinquent borrowers when the delinquency is temporary. We consider all loans modified in a troubled debt restructuring to be impaired.

At the time a loan is modified in a TDR, we consider the following factors to determine whether the loan should accrue interest:

·   Whether there is a period of current payment history under the current terms, typically 6 months;

·   Whether the loan is current at the time of restructuring; and

·   Whether we expect the loan to continue to perform under the restructured terms with a debt coverage ratio that complies with the Bank’s credit underwriting policy of 1.25 times debt service.

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We also review the financial performance of the borrower over the past year to be reasonably assured of repayment and performance according to the modified terms. This review consists of an analysis of the borrower’s historical results; the borrower’s projected results over the next four quarters; current financial information of the borrower and any guarantors. The projected repayment source needs to be reliable, verifiable, quantifiable and sustainable. In addition, all TDRs are reviewed quarterly to determine the amount of any impairment.

At the time of restructuring, the amount of the loan principal for which we are not reasonably assured of repayment is charged-off, but not forgiven.

A borrower with a restructured loan must make a minimum of six consecutive monthly payments at the restructured level and be current as to both interest and principal to be on accrual status.

Performing TDRs (not reported as non-accrual loans) totaled $40.0 million and $41.1 million with related allowances of $1.4 million and $213,000 as of December 31, 2012 and December 31, 2011, respectively. Non-performing TDRs totaled $27.1 million and $25.8 million with related allowances of $8,000 and $3.8 million as of December 31, 2012 and December 31, 2011, respectively. All TDRs are classified as impaired loans and are included in the impaired loan disclosures above.

The following two tables detail loans modified during the years ended December 31, 2012 and 2011, including the number of modifications, the recorded investment both pre and post modification and the nature of the modifications made.

	2012					2011
	Number of Contracts	Pre-Modification Outstanding Recorded Investment		Post-Modification Outstanding Recorded Investment		Number of Contracts	Pre-Modification Outstanding Recorded Investment		Post-Modification Outstanding Recorded Investment
	(Amounts in thousands)
Commercial and Industrial	2	$	750	$	750	1	$	594	$	594
Construction:
Residential	1		415		415	2		2,150		959
Commercial	11		9,938		9,938	—		—		—
Real Estate Mortgage:
Commercial – Owner Occupied	1		3,220		3,220	2		682		315
Commercial – Non-owner Occupied	3		4,067		4,067	3		5,543		5,543
Residential – 1-4 Family	3		4,168		4,168	4		6,250		6,250
Residential – Multifamily	1		380		380	2		506		506
Consumer	—		—		—	—		—		—
Total	22	$	22,938	$	22,938	14	$	15,725	$	14,167

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	2012								2011
	Extension		Period of Interest Only			Interest Rate Reduction	Total		Extension		Period of Interest Only		Interest Rate Reduction		Total
	(Amounts in thousands)
Commercial and Industrial	$	500	$	—	$	250	$	750	$	—	$	—	$	594	$	594
Construction:
Residential		—		—		415		415		—		—		2,150		2,150
Commercial		8,008		—		1,930		9,938		—		—		—		—
Real Estate Mortgage:
Commercial – Owner Occupied		3,220		—		—		3,220		—		—		682		682
Commercial – Non-owner Occupied		1,156		—		2,911		4,067		—		1,505		4,038		5,543
Residential – 1-4 Family		924		—		3,244		4,168		—		—		6,250		6,250
Residential – Multifamily		—		380		—		380		—		—		506		506
Consumer		—		—		—		—		—		—		—		—
Total	$	13,808	$	380	$	8,750	$	22,938	$	—	$	1,505	$	14,220	$	15,725

The following table shows loans that were modified and deemed TDRs that subsequently defaulted during 2012 and 2011.

	2012			2011
	Number of Contracts	Recorded Investment		Number of Contracts	Recorded Investment
	(Amounts in thousands)
Commercial and Industrial	1	$	603	—	$	—
Real Estate Construction:
Residential	1		1,004	1		316
Commercial	10		8,508	—		—
Real Estate Mortgage:
Commercial – Owner Occupied	—		—	5		4,131
Commercial – Non-owner Occupied	3		4,779	2		5,451
Residential – 1-4 Family	5		4,020	1		929
Residential – Multifamily	1		3,267	—		—
Consumer	—		—	1		137
Total	21	$	22,181	10	$	10,964

Some loan modifications classified as TDRs may not ultimately result in the full collection of principal and interest, as modified, and result in potential incremental losses. These potential incremental losses have been factored into our overall allowance for loan losses estimate. The level of any re-defaults will likely be affected by future economic conditions. Once a loan becomes a TDR, it will continue to be reported as a TDR until it is repaid in full, foreclosed, sold or it meets the criteria to be removed from TDR status.

28

Credit Quality Indicators:  As part of the on-going monitoring of the credit quality of the Company's loan portfolio, management tracks certain credit quality indicators including trends related to the risk grades of loans, the level of classified loans, net charge-offs, nonperforming loans (see details above) and the general economic conditions in the region.

The Company utilizes a risk grading matrix to assign a risk grade to each of its loans. Loans are graded on a scale of 1 to 7. Grades 1 through 4 are considered “Pass”. A description of the general characteristics of the seven risk grades is as follows:

1.   Good:  Borrower exhibits the strongest overall financial condition and represents the most creditworthy profile.

2.   Satisfactory (A):  Borrower reflects a well-balanced financial condition, demonstrates a high level of creditworthiness and typically will have a strong banking relationship with Parke Bank.

3.   Satisfactory (B):  Borrower exhibits a balanced financial condition and does not expose the Bank to more than a normal or average overall amount of risk.  Loans are considered fully collectable.

4.   Watch List:  Borrower reflects a fair financial condition, but there exists an overall greater than average risk. Risk is deemed acceptable by virtue of increased monitoring and control over borrowings.  Probability of timely repayment is present.

5.   Other Assets Especially Mentioned (OAEM):  Financial condition is such that assets in this category have a potential weakness or pose unwarranted financial risk to the Bank even though the asset value is not currently impaired.  The asset does not currently warrant adverse classification but if not corrected could weaken and could create future increased risk exposure. Includes loans which require an increased degree of monitoring or servicing as a result of internal or external changes.

6.   Substandard:  This classification represents more severe cases of #5 (OAEM) characteristics that require increased monitoring.  Assets are characterized by the distinct possibility that the Bank will sustain some loss if the deficiencies are not corrected. Assets are inadequately protected by the current net worth and paying capacity of the borrower or of the collateral. Asset has a well-defined weakness or weaknesses that impairs the ability to repay debt and jeopardizes the timely liquidation or realization of the collateral at the asset’s net book value.

7.   Doubtful:  Assets which have all the weaknesses inherent in those assets classified #6 (Substandard) but the risks are more severe relative to financial deterioration in capital and/or asset value; accounting/evaluation techniques may be questionable and the overall possibility for collection in full is highly improbable. Borrowers in this category require constant monitoring, are considered work out loans and present the potential for future loss to the bank.

29

An analysis of the credit risk profile by internally assigned grades as of December 31, 2012 and 2011 is as follows:

At December 31, 2012	Pass		OAEM		Substandard		Doubtful		Total
	(Amounts in thousands)
Commercial and Industrial	$	18,926	$	2,183	$	816	$	—	$	21,925
Real Estate Construction:
Residential		6,345		—		986		—		7,331
Commercial		20,097		—		21,778		—		41,875
Real Estate Mortgage:
Commercial – Owner Occupied		150,990		1,121		5,505		—		157,616
Commercial – Non-owner Occupied		173,606		11,399		36,726		—		221,731
Residential – 1 to 4 Family		126,167		2,263		11,734		—		140,164
Residential – Multifamily		16,863		1,103		3,215		—		21,181
Consumer		17,701		—		188		—		17,889
Total	$	530,695	$	18,069	$	80,948	$	—	$	629,712

At December 31, 2011	Pass		OAEM		Substandard		Doubtful		Total
	(Amounts in thousands)
Commercial and Industrial	$	16,033	$	7,500	$	603	$	—	$	24,136
Real Estate Construction:
Residential		12,327		350		8,610		—		21,287
Commercial		23,898		—		26,463		—		50,361
Real Estate Mortgage:
Commercial – Owner Occupied		137,200		3,840		6,409		—		147,449
Commercial – Non-owner Occupied		156,277		10,430		37,509		—		204,216
Residential – 1 to 4 Family		120,658		4,360		13,750		—		138,768
Residential – Multifamily		16,261		3,268		597		—		20,126
Consumer		18,500		—		274		—		18,774
Total	$	501,154	$	29,748	$	94,215	$	—	$	625,117

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Note  5.   Allowance for Loan Losses

The allowance for loan losses is a reserve established through a provision for loan losses charged to expense, which represents management's best estimate of probable losses that have been incurred within the existing portfolio of loans. The allowance, in the judgment of management, is necessary to reserve for estimated loan losses and risks inherent in the loan portfolio. The Company's allowance for loan loss methodology includes allowance allocations calculated in accordance with ASC Topic 310, "Receivables" and allowance allocations calculated in accordance with ASC Topic 450, "Contingencies." Accordingly, the methodology is based on historical loss experience by type of credit and internal risk grade, specific homogeneous risk pools and specific loss allocations, with adjustments for current events and conditions. The Company's process for determining the appropriate level of the allowance for loan losses is designed to account for credit deterioration as it occurs. The provision for loan losses reflects loan quality trends, including the levels of and trends related to nonaccrual loans, past due loans, potential problem loans, criticized loans and net charge-offs or recoveries, among other factors. The provision for possible loan losses also reflects the totality of actions taken on all loans for a particular period. In other words, the amount of the provision reflects not only the necessary increases in the allowance for loan losses related to newly identified criticized loans, but it also reflects actions taken related to other loans including, among other things, any necessary increases or decreases in required allowances for specific loans or loan pools.

The level of the allowance reflects management's continuing evaluation of industry concentrations, specific credit risks, loan loss experience, current loan portfolio quality, present economic, political and regulatory conditions and unidentified losses inherent in the current loan portfolio. Portions of the allowance may be allocated for specific credits; however, the entire allowance is available for any credit that, in management's judgment, should be charged off. While management utilizes its best judgment and information available, the ultimate adequacy of the allowance is dependent upon a variety of factors beyond the Company’s control, including, among other things, the performance of the Company's loan portfolio, the economy, changes in interest rates and the view of the regulatory authorities toward loan classifications.

The allowances established for probable losses on specific loans are based on a regular analysis and evaluation of problem loans. Loans are classified based on an internal credit risk grading process that evaluates, among other things: (i) the obligor's ability to repay; (ii) the underlying collateral, if any; and (iii) the economic environment and industry in which the borrower operates. This analysis is performed at the relationship manager level for all commercial loans. When a loan has a grade of 6 or higher, the loan is analyzed to determine whether the loan is impaired and, if impaired, the need to specifically allocate a portion of the allowance for loan losses to the loan. Specific valuation allowances are determined by analyzing the borrower's ability to repay amounts owed, collateral deficiencies, the relative risk grade of the loan and economic conditions affecting the borrower's industry, among other things.

Historical valuation allowances are calculated based on the historical loss experience of specific types of loans. The Company calculates historical loss ratios for pools of similar loans with similar characteristics based on the proportion of actual charge-offs experienced to the total population of loans in the pool. The historical loss ratios are periodically updated based on actual charge-off experience. A historical valuation allowance is established for each pool of similar loans based upon the product of the historical loss ratio and the total dollar amount of the loans in the pool. The Company's pools of similar loans include similarly risk-graded groups of commercial loans, commercial real estate loans, consumer real estate loans and consumer and other loans.

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General valuation allowances are based on general economic conditions and other qualitative risk factors both internal and external to the Company. In general, such valuation allowances are determined by evaluating, among other things: (i) the experience, ability and effectiveness of the bank's lending management and staff; (ii) the effectiveness of the Bank's loan policies, procedures and internal controls; (iii) changes in asset quality; (iv) changes in loan portfolio volume; (v) the composition and concentrations of credit; (vi) the impact of competition on loan structuring and pricing; (vii) the effectiveness of the internal loan review function; (viii) the impact of environmental risks on portfolio risks; and (ix) the impact of rising interest rates on portfolio risk. Management evaluates the degree of risk that each one of these components has on the quality of the loan portfolio on a quarterly basis. Each component is determined to have either a high, high-moderate, moderate, low-moderate or low degree of risk. The results are then input into a "general allocation matrix" to determine an appropriate general valuation allowance.

An analysis of the allowance for loan losses as of and for the years ended December 31, 2012 and 2011 is as follows:

Allowance for Loan Losses:	For the year ended December 31, 2012
	Beginning Balance		Charge-offs		Recoveries		Provisions		Ending Balance
	(Amounts in thousands)
Commercial and Industrial	$	451	$	(66)	$	—	$	85	$	470
Real Estate Construction:
Residential		2,613		(1,326)		490		(932)		845
Commercial		1,971		(310)		—		(546)		1,115
Real Estate Mortgage:
Commercial – Owner Occupied		2,714		(1,058)		—		2,439		4,095
Commercial – Non-owner Occupied		6,742		(3,848)		—		4,485		7,379
Residential – 1 to 4 Family		4,190		(1,531)		—		1,725		4,384
Residential – Multifamily		278		—		—		34		312
Consumer		148		(38)		—		226		336
Unallocated		216		—		—		(216)		—
Total	$	19,323	$	(8,177)	$	490	$	7,300	$	18,936

Allowance for Loan Losses:	For the year ended December 31, 2011
	Beginning Balance		Charge-offs		Recoveries		Provisions		Ending Balance
	(Amounts in thousands)
Commercial and Industrial	$	448	$	(22)	$	—	$	25	$	451
Real Estate Construction:
Residential		2,980		(2,390)		24		1,999		2,613
Commercial		1,576		(494)		—		889		1,971
Real Estate Mortgage:
Commercial – Owner Occupied		2,508		—		—		206		2,714
Commercial – Non-owner Occupied		3,792		(426)		—		3,376		6,742
Residential – 1 to 4 Family		2,848		(2,643)		34		3,951		4,190
Residential – Multifamily		372		—		—		(94)		278
Consumer		130		—		1		17		148
Unallocated		135		—		—		81		216
Total	$	14,789	$	(5,975)	$	59	$	10,450	$	19,323

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Allowance for Loan Losses, at December 31, 2012	Individually evaluated for impairment		Collectively evaluated for impairment		Total
	(Amounts in thousands)
Commercial and Industrial	$	10	$	460	$	470
Real Estate Construction:
Residential		24		821		845
Commercial		96		1,019		1,115
Real Estate Mortgage:
Commercial – Owner Occupied		216		3,879		4,095
Commercial – Non-owner Occupied		1,053		6,326		7,379
Residential – 1 to 4 Family		301		4,083		4,384
Residential – Multifamily		6		306		312
Consumer		—		336		336
Unallocated		—		—		—
Total	$	1,706	$	17,230	$	18,936

Allowance for Loan Losses, at December 31, 2011	Individually evaluated for impairment		Collectively evaluated for impairment		Total
	(Amounts in thousands)
Commercial and Industrial	$	—	$	451	$	451
Real Estate Construction:
Residential		1,297		1,316		2,613
Commercial		380		1,591		1,971
Real Estate Mortgage:
Commercial – Owner Occupied		23		2,691		2,714
Commercial – Non-owner Occupied		2,526		4,216		6,742
Residential – 1 to 4 Family		600		3,590		4,190
Residential – Multifamily		33		245		278
Consumer		—		148		148
Unallocated		—		216		216
Total	$	4,859	$	14,464	$	19,323

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Loans, at December 31, 2012:	Individually evaluated for impairment		Collectively evaluated for impairment		Total
	(Amounts in thousands)
Commercial and Industrial	$	748	$	21,177	$	21,925
Real Estate Construction:
Residential		987		6,344		7,331
Commercial		14,879		26,996		41,875
Real Estate Mortgage:
Commercial – Owner Occupied		6,594		151,022		157,616
Commercial – Non-owner Occupied		48,415		173,316		221,731
Residential – 1 to 4 Family		12,550		127,614		140,164
Residential – Multifamily		3,215		17,966		21,181
Consumer		188		17,701		17,889
Total	$	87,576	$	542,136	$	629,712

Loans, at December 31, 2011:	Individually evaluated for impairment		Collectively evaluated for impairment		Total
	(Amounts in thousands)
Commercial and Industrial	$	603	$	23,533	$	24,136
Real Estate Construction:
Residential		8,610		12,677		21,287
Commercial		16,227		34,134		50,361
Real Estate Mortgage:
Commercial – Owner Occupied		7,536		139,913		147,449
Commercial – Non-owner Occupied		48,244		155,972		204,216
Residential – 1 to 4 Family		11,865		126,903		138,768
Residential – Multifamily		3,865		16,261		20,126
Consumer		229		18,545		18,774
Total	$	97,179	$	527,938	$	625,117

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Note  6.   Bank Premises and Equipment

A summary of the cost and accumulated depreciation and amortization of Company premises and equipment as of December 31, 2012 and 2011 is as follows:

	Estimated Useful lives	2012			2011
		(Amounts in thousands)
Land		$	820		$	820
Building and improvements	40 yrs-Life of lease		3,992			4,059
Furniture and equipment	5 - 10 years		1,800			1,508
Total premises and equipment			6,612			6,387
Less: accumulated depreciation and amortization			(2,623	)		(2,265	)
Premises and equipment, net		$	3,989		$	4,122

Depreciation and amortization expense was $358 thousand and $366 thousand in 2012 and 2011, respectively.

The Company has non-cancelable operating lease agreements related to its Northfield and Philadelphia branch offices. The term of the Northfield lease is for 5 years and runs through May 2017 with one 5-year renewal option. The term of the Philadelphia lease is for 10 years and runs through June 2016 with two 5-year renewal options. The Company is responsible for its pro-rata share of real estate taxes, and all insurance, utilities, maintenance and repair costs for the benefit of the branch offices.  At December 31, 2012, the required future minimum rental payments under these leases and other equipment operating leases are as follows:

Years Ending December 31,	(Amounts in thousands)
2013		140
2014		140
2015		140
2016		107
2017		31
Total minimum lease payments	$	558

Rent expense was approximately $138 thousand in 2012 and $125 thousand in 2011.

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Note  7.   OREO

OREO at December 31, 2012 was $26.1 million, compared to $19.4 million at December 31, 2011, an increase of $6.7 million. The real estate owned consisted of 33 properties, the largest being a condominium development at $12.8 million. This property was sold in 2010 but does not qualify for a sales treatment under GAAP because of continuing involvement by the Company in the form of financing.During 2012, the Company disposed of $3.5 million of OREO, recognizing a loss of $388,000 compared to $3.5 million of OREO sold in 2011, recognizing a loss of $44,000. Also during 2012, the Company wrote down OREO property by $611,000 compared to $514,000 in 2011, based on a decline in appraised values. In addition, the Company contributed a house carried at $139,000 to Habitat for Humanity. There was no valuation allowance related to OREO as of December 31, 2012 and 2011. Operating expenses related to OREO, net of related income, for 2012 and 2011, were $1.5 million and $642,000, respectively.

An analysis of OREO activity for the years ended December 31, 2012 and 2011 is as follows:

	For the Year Ended December 31,
	2012			2011
	(Amounts in thousands)
Balance at beginning of period	$	19,410		$	16,701
Real estate acquired in settlement of loans		11,095			1,879
Sales of real estate		(3,533	)		(3,414	)
Loss on sale of real estate		(388	)		(44	)
Write-down of real estate carrying values		(611	)		(514	)
Contribution of OREO property		(139	)		—
Capitalized improvements to real estate		223			4,802
Balance at end of period	$	26,057		$	19,410

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Note  8.   Deposits

Deposits at December 31, 2012 and 2011 consisted of the following:

	2012		2011
	(Amounts in thousands)
Demand deposits, noninterest-bearing	$	30,342	$	31,146
Demand deposits, interest-bearing		21,249		19,307
Money market deposits		84,946		92,576
Savings deposits		230,621		213,411
Time deposits of $100,000 or more		109,941		108,598
Other time deposits		138,356		146,867
Brokered time deposits		21,752		22,950
Total deposits	$	637,207	$	634,855

Scheduled maturities of certificates of deposit at December 31, 2012 are as follows:

Years Ending December 31,	(Amounts in thousands)
2013	$	195,898
2014		43,484
2015		10,350
2016		8,151
2017		12,166
Thereafter		—
Total	$	270,049

Deposits from related parties totaled approximately $5,767,000 and $6,705,000 at December 31, 2012 and 2011, respectively.

37

Note  9.   Borrowings

An analysis of borrowings as of December 31, 2012 and 2011 is as follows:

		2012			2011
	Maturity Date or Range	Amount		Weighted Average Rate	Amount		Weighted Average Rate
		(Amounts in thousands, except rates)
Borrowed funds:
Federal Home Loan Bank repurchase agreements	May 2013	$	5,000	2.65%	$	5,000	2.65%
Other repurchase agreements	July 2013	$	5,000	4.91%	$	5,000	4.91%
Federal Home Loan Bank advances	Less than one year	$	—	—	$	30,000	0.32%
	One to three years		20,448	1.29%		19,900	1.18%
	Three to five years		—	—		707	5.19%
	Five to ten years		—	—		—	—
	Total	$	20,448		$	50,607
Subordinated debentures, capital trusts	November 2035	$	5,155	1.97%	$	5,155	1.94%
	November 2035		5,155	1.97%		5,155	1.94%
	September 2037		3,093	1.81%		3,093	1.80%
	Total	$	13,403		$	13,403

At December 31, 2012, the Company had a $100.9 million line of credit from the FHLBNY, of which $25.4 million, as detailed above, was outstanding.

Certain investment securities (Note 3), loans (Note 4), and FHLBNY stock are pledged as collateral for borrowings.

Subordinated Debentures – Capital Trusts:  On August 23, 2005, Parke Capital Trust I, a Delaware statutory business trust and a wholly-owned subsidiary of the Company, issued $5,000,000 of variable rate capital trust pass-through securities to investors. The variable interest rate re-prices quarterly at the three-month LIBOR plus 1.66% and was 1.97% at December 31, 2012. Parke Capital Trust I purchased $5,155,000 of variable rate junior subordinated deferrable interest debentures from the Company. The debentures are the sole asset of the Trust. The terms of the junior subordinated debentures are the same as the terms of the capital securities. The Company has also fully and unconditionally guaranteed the obligations of the Trust under the capital securities. The capital securities are redeemable by the Company on or after November 23, 2010, at par, or earlier if the deduction of related interest for federal income taxes is prohibited, classification as Tier 1 Capital is no longer allowed, or certain other contingencies arise. The capital securities must be redeemed upon final maturity of the subordinated debentures on November 23, 2035. Proceeds of approximately $4.2 million were contributed to paid-in capital at the Bank. The remaining $955 thousand was retained at the Company for future use.

38

On August 23, 2005, Parke Capital Trust II, a Delaware statutory business trust and a wholly-owned subsidiary of the Company, issued $5,000,000 of fixed/variable rate capital trust pass-through securities to investors. Currently, the interest rate is variable at 1.97%. The variable interest rate re-prices quarterly at the three-month LIBOR plus 1.66% beginning November 23, 2010. Parke Capital Trust II purchased $5,155,000 of variable rate junior subordinated deferrable interest debentures from the Company. The debentures are the sole asset of the Trust. The terms of the junior subordinated debentures are the same as the terms of the capital securities. The Company has also fully and unconditionally guaranteed the obligations of the Trust under the capital securities. The capital securities are redeemable by the Company on or after November 23, 2010, at par, or earlier if the deduction of related interest for federal income taxes is prohibited, classification as Tier 1 Capital is no longer allowed, or certain other contingencies arise. The capital securities must be redeemed upon final maturity of the subordinated debentures on November 23, 2035. Proceeds of approximately $4.2 million were contributed to paid-in capital at the Bank. The remaining $955 thousand was retained at the Company for future use.

On June 21, 2007, Parke Capital Trust III, a Delaware statutory business trust and a wholly-owned subsidiary of the Company, issued $3,000,000 of variable rate capital trust pass-through securities to investors. The variable interest rate re-prices quarterly at the three-month LIBOR plus 1.50% and was 1.81% at December 31, 2012. Parke Capital Trust III purchased $3,093,000 of variable rate junior subordinated deferrable interest debentures from the Company. The debentures are the sole asset of the Trust. The terms of the junior subordinated debentures are the same as the terms of the capital securities. The Company has also fully and unconditionally guaranteed the obligations of the Trust under the capital securities. The capital securities are redeemable by the Company on or after December 15, 2012, at par, or earlier if the deduction of related interest for federal income taxes is prohibited, classification as Tier 1 Capital is no longer allowed, or certain other contingencies arise. The capital securities must be redeemed upon final maturity of the subordinated debentures on September 15, 2037.   The proceeds were contributed to paid-in capital at the Bank.

39

Note  10.   Income Taxes

Income tax expense for 2012 and 2011 consisted of the following:

	2012			2011
	(Amounts in thousands)
Current tax expense:
Federal	$	4,405		$	5,808
State		1,180			1,517
		5,585			7,325
Deferred tax benefit		(1,343	)		(1,801	)
Income tax expense	$	4,242		$	5,524

The components of the net deferred tax asset at December 31, 2012 and 2011 are as follows:

	2012			2011
	(Amounts in thousands)
Deferred tax assets
Allowance for loan losses	$	7,735		$	7,894
Minimum pension liability		2,262			2,175
Stock compensation		30			30
Depreciation		221			211
Capitalized OREO expense		1,551			518
OTTI write down on securities		1,217			1,353
		13,016			12,181
Deferred tax liabilities:
Discount accretion		16			(27	)
Deferred loan costs		(735	)		(674	)
Investment securities available for sale		(399	)		(310	)
BOLI		—			(576	)
		(1,118	)		(1,587	)
Net deferred tax asset	$	11,898		$	10,594

A reconciliation of the Company’s effective income tax rate with the statutory federal rate for 2012 and 2011 is as follows:

	2012			2011
	(Amounts in thousands)
At Federal statutory rate	$	4,309		$	4,805
Adjustments resulting from:
State income taxes, net of Federal tax benefit		657			714
BOLI – Reversal of DTA		(647	)		—
Other		(77	)		5
	$	4,242		$	5,524

The decrease in income tax expense is due to the change to an alternative tax methodology for BOLI income whereby it is treated on a tax free basis.

Management has evaluated the Company’s tax positions and concluded that the Company has taken no uncertain tax positions that require adjustments to the financial statements. With few exceptions, the Company is no longer subject to income tax examinations by the U.S. federal or local tax authorities for years before 2009, and by the State of New Jersey for years before 2008.

40

Note  11.   Retirement Plans

The Company has a Supplemental Executive Retirement Plan (“SERP”) covering certain members of management.  The net periodic SERP pension cost was approximately $135 thousand in 2012 and $353 thousand in 2011.  The unfunded benefit obligation, which was included in other liabilities, was approximately $3,137,000 at December 31, 2012 and $3,002,000 at December 31, 2011.

The benefit obligation at December 31, 2012 and December 31, 2011 was calculated as follows:

	2012			2011
	(Amounts in thousands)
Benefit obligation, January 1	$	3,002		$	2,649
Service cost		(6	)		232
Interest cost		165			120
(Gain) loss		(24	)		1
Benefit obligation, December 31	$	3,137		$	3,002

The net periodic pension cost for 2012 and 2011 was calculated as follows:

	2012			2011
	(Amounts in thousands)
Service cost	$	(6	)	$	232
Interest cost		165			120
(Gain) loss		(24	)		1
Prior service cost recognized		—			—
	$	135		$	353

The discount rate used in determining the actuarial present value of the projected benefit obligation was 5.5% for both 2012 and 2011.  Annual benefit payments are estimated at $0 for 2013 through 2015, $113 thousand for 2016, $227 thousand for 2017, $287 thousand for 2018, $318 thousand for 2019 through 2022 and $4.0 million thereafter.

The Company has a 401K Plan covering substantially all employees.  Under the Plan, the Company is required to contribute 3% of all qualifying employees’ eligible salary to the Plan. The Plan expense in 2012 was $109 thousand and $98 thousand in 2011.

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Note  12.   Regulatory Matters

On April 9, 2012, the Bank entered into Consent Orders with the FDIC and the New Jersey Department of Banking and Insurance (the “Department”).  Under the Consent Orders, the terms of which are substantially identical, the Bank is required, among other things, subject to review and approval by the FDIC and the Department: (i) to adopt and implement a plan to reduce the Bank’s position in delinquent or classified assets; (ii) to adopt and implement a program providing for a periodic independent review of the Bank’s loan portfolio and the identification of problem credits; (iii) to review and revise the Bank’s loan policies and procedures to address identified lending deficiencies; and (iv) to adopt and implement a plan to reduce and manage each of the concentrations of credit identified by the FDIC and the Department.

The Consent Orders also require the Bank to obtain the prior approval of the FDIC and the Department before declaring or paying any dividend or appointing or changing the title or responsibilities of any director or senior executive officer.  Additional regulatory provisions require FDIC prior approval before the Bank enters into any employment agreement or other agreement or plan providing for the payment of a “golden parachute payment” or the making of any golden parachute payment.

Capital Ratios:  The Company (on a consolidated basis) and the Bank are subject to various regulatory capital requirements administered by the federal banking agencies.  Failure to meet minimum capital requirements can initiate certain mandatory and possibly additional discretionary, actions by regulators that, if undertaken, could have a direct material effect on the Company’s financial statements.  Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Bank must meet specific capital guidelines that involve quantitative measures of its assets, liabilities, and certain off-balance-sheet items as calculated under regulatory accounting practices.  The Company and the Bank’s capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings, and other factors.

Quantitative measures established by regulation to ensure capital adequacy require the Bank to maintain minimum amounts and ratios (set forth in the following table) of total and Tier I capital (as defined in the regulations) to risk-weighted assets (as defined), and of Tier I capital (as defined) to average assets (as defined).  Management believes, as of December 31, 2012 and 2011, that the Company and the Bank met all capital adequacy requirements to which they are subject.

As of December 31, 2012 and 2011, the Bank was categorized as “well-capitalized” under the regulatory framework for prompt corrective action.  Prompt corrective action provisions are not applicable to bank holding companies. There are no conditions or events since December 31, 2012 that management believes have changed the Bank's capital category.

To be categorized as well capitalized, the Bank must maintain minimum total risk based, Tier 1 risk based, and Tier 1 leverage ratios as set forth in the following tables.

42

	Actual					For Capital Adequacy Purposes					To be Well- Capitalized Under Prompt Corrective Action Provisions
Parke Bancorp, Inc.	Amount		Ratio			Amount		Ratio			Amount		Ratio
As of December 31, 2012	(Amounts in thousands except ratios)
Total Risk Based Capital	$	105,640		16.25	%	$	51,998		8	%	$	N/A		N/A
(to Risk Weighted Assets)
Tier 1 Capital	$	97,382		14.98	%	$	25,999		4	%	$	N/A		N/A
(to Risk Weighted Assets)
Tier 1 Capital	$	97,382		12.60	%	$	30,917		4	%	$	N/A		N/A
(to Average Assets)
As of December 31, 2011
Total Risk Based Capital	$	98,992		15.5	%	$	51,209		8	%		N/A		N/A
(to Risk Weighted Assets)
Tier 1 Capital	$	90,851		14.2	%	$	25,604		4	%		N/A		N/A
(to Risk Weighted Assets)
Tier 1 Capital	$	90,851		12.1	%	$	30,122		4	%		N/A		N/A
(to Average Assets)
Parke Bank
As of December 31, 2012
Total Risk Based Capital	$	105,714		16.26	%	$	51,998		8	%	$	64,998		10	%
(to Risk Weighted Assets)
Tier 1 Capital	$	97,456		14.99	%	$	25,999		4	%	$	38,999		6	%
(to Risk Weighted Assets)
Tier 1 Capital	$	97,456		12.61	%	$	30,917		4	%	$	38,646		5	%
(to Average Assets)
As of December 31, 2011
Total Risk Based Capital	$	98,817		15.4	%	$	51,208		8	%	$	64,010		10	%
(to Risk Weighted Assets)
Tier 1 Capital	$	90,676		14.2	%	$	25,604		4	%	$	38,406		6	%
(to Risk Weighted Assets)
Tier 1 Capital	$	90,676		12.0	%	$	30,122		4	%	$	37,652		5	%
(to Average Assets)

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Note  13.   Shareholders’ Equity

Common Stock Dividend:  In May 2012 and May 2011 the Company paid a 10% common stock dividend to shareholders (488,383 and 443,945 shares respectively). All share and per share information has been retroactively adjusted to give effect to this stock dividend for the periods presented.

Treasury Stock:  No transactions occurred in 2012 or 2011 for the repurchase of Company stock.

Stock Options:  In 1999, 2002 and 2003, the shareholders approved the Company’s Employee Stock Option Plans and in 2005 the shareholders approved the Company’s Directors and Employee Stock Option Plan (the “Plans”). The Plans are “non-qualified” stock option plans.  Reserved for issuance upon the exercise of options granted or to be granted by the Board of Directors is an aggregate of 148,181 shares of common stock as of December 31, 2012.  All options issued under the Plans were fully vested upon issuance.  All directors and certain officers and employees of the Company have been granted options under the Plans.  All stock option amounts and prices included in the following discussions have been adjusted for stock dividends.

There were no option awards, and hence no net compensation expenses for both 2012 and 2011.

Option awards are granted with an exercise price equal to the market price of the Company’s stock at the date of the grant.  No options were awarded or exercised in 2012. All options issued have 10 year contractual terms and were fully vested as of December 31, 2012.

At December 31, 2012, there were 148,181 shares available for grant under the Plans.

The following table summarizes stock option activity for the year ended December 31, 2012.

Options	Shares	Weighted Average Exercise Price		Weighted Average Remaining Contractual Life	Aggregate Intrinsic Value
Outstanding at January 1, 2012	415,708	$	9.01
Granted	—	$	—
Exercised	9,332	$	3.75
Expired/terminated	49,534	$	8.25
Outstanding at December 31, 2012	356,842	$	9.36	2.4	$	—
Exercisable at December 31, 2012	356,842	$	9.36	2.4	$	—

44

Stock options outstanding and exercisable at December 31, 2012 are as follows:

Range of Exercise Prices	Number Outstanding		Weighted Average Remaining Contractual Life		Weighted Average Exercise Price
$5.25		55,287		0.4	$	5.25
$7.42		11,010		1.3	$	7.42
$8.91		44,424		2.2	$	8.91
$10.39		229,285		3.0	$	10.39
$11.28		16,836		3.8	$	11.28
		356,842		2.4	$	9.36

Preferred Stock: On October 3, 2008 Congress passed the Emergency Economic Stabilization Act of 2008 (EESA), which provides the U.S. Secretary of the Treasury with broad authority to implement certain actions to help restore stability and liquidity to the U.S. markets. One of the provisions resulting from EESA is the Treasury Capital Purchase Program (CPP) which provided for the direct equity investment of perpetual preferred stock by the U.S. Treasury in qualified financial institutions. This program was voluntary and requires an institution to comply with several restrictions and provisions, including limits on executive compensation, stock redemptions, and declaration of dividends. The CPP provided for a minimum investment of 1% of Risk-Weighted-Assets, with a maximum investment of the lesser of 3% of Risk-Weighted Assets or $25 billion.  The perpetual preferred stock has a dividend rate of 5% per year until the fifth anniversary of the Treasury investment and a dividend of 9%, thereafter. The CPP also requires the Treasury to receive warrants for common stock equal to 15% of the capital invested by the U.S. Treasury.

The Company received an investment in cumulative perpetual preferred stock of $16,288,000 on January 30, 2009.  These proceeds were allocated between the preferred stock and warrants based on relative fair value in accordance with FASB ASC Topic 470, Debt with Conversion and Other Options. The allocation of proceeds resulted in a discount on the preferred stock that will be accreted over five years. The Company issued 359,135 common stock warrants to the U.S. Treasury and $930 thousand of those proceeds were allocated to the warrants. The warrants are accounted for as equity securities. The warrants have a contractual life of 10 years and an exercise price of $6.79 per share of common stock.

In November of 2012, the U.S. Treasury held an auction and sold its investment in the preferred stock to institutional investors. Restrictions related to the CPP have been lifted. The warrants for 399,006 shares of common stock, with an exercise price of $6.12 per share, remain outstanding as of December 31, 2012.

The Company has recorded dividends in the approximate amount of $815 thousand for each of the years ended December 31, 2012 and 2011. All dividend amounts through December 31, 2012 have been paid. The preferred stock qualifies for and is accounted for as equity securities and is included in the Company’s Tier I capital on the date of receipt.

45

Note  14.   Other Related Party Transactions

A member of the Board of Directors is a principal of a commercial insurance agency that provides all the insurance coverage for the Company.  The cost of the insurance was approximately $361 thousand in 2012 and $184 thousand in 2011.  An insurance agency owned by another Board Member provides employee benefits (medical insurance, life insurance, and disability insurance).  The cost of these employee benefits totaled $493 thousand in 2012 and $420 thousand in 2011.

Note  15.   Commitments and Contingencies

The Company has entered into an employment contract with the President of the Company, which provides for continued payment of certain employment salaries and benefits in the event of a change in control, as defined.

The Company is a party to financial instruments with off-balance sheet risk in the normal course of business to meet the financing needs of its customers.  These financial instruments include commitments to extend credit and standby letters of credit.  These instruments involve, to varying degrees, elements of credit risk in excess of the amount recognized in the consolidated balance sheet.  The contract or notional amounts of these instruments reflect the extent of the Company’s involvement in these particular classes of financial instruments.  The Company’s exposure to credit loss in the event of nonperformance by the other party to the financial instruments for commitments to extend credit and standby letters of credit is represented by the contractual or notional amount of those instruments.  The Company uses the same credit policies in making commitments and conditional obligations as they do for on-balance sheet instruments.

Commitments to extend credit are agreements to lend to a customer as long as there is no violation of any condition established in the contract.  Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee.  Since many of the commitments are expected to expire without being drawn upon, the total commitment amounts do not necessarily represent future cash requirements.  The Company evaluates each customer’s credit-worthiness on a case-by-case basis.  The amount of collateral obtained, if deemed necessary upon extension of credit, is based on management’s credit evaluation.  Collateral held varies but may include accounts receivable; inventory; property, plant and equipment and income-producing commercial properties.  As of December 31, 2012 and 2011, commitments to extend credit amounted to approximately $50.8 million and $54.8 million, respectively.

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 December 31, 2012 and 2011, standby letters of credit with customers were $5.8 million and $6.9 million, respectively.

Loan commitments and standby letters of credit are issued in the ordinary course of business to meet customer needs.  Commitments to fund fixed-rate loans were immaterial at December 31, 2012.  Variable-rate commitments are generally issued for less than one year and carry market rates of interest.  Such instruments are not likely to be affected by annual rate caps triggered by rising interest rates.  Management believes that off-balance sheet risk is not material to the results of operations or financial condition.

46

In the normal course of business, there are outstanding various contingent liabilities such as claims and legal action, which are not reflected in the financial statements.  In the opinion of management, no material losses are anticipated as a result of these actions or claims.

Note  16.   Fair Value

Fair Value Measurements

The Company uses fair value measurements to record fair value adjustments to certain assets and liabilities and to determine fair value disclosures. In accordance with the Fair Value Measurements and Disclosures Topic 820 of FASB ASC, the fair value of a financial instrument is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Fair value is best determined based upon quoted market prices. However, in many instances, there are no quoted market prices for the Company's various financial instruments. In cases where quoted market prices are not available, fair values are based on estimates using present value or other valuation techniques. Those techniques are significantly affected by the assumptions used, including the discount rate and estimates of future cash flows. Accordingly, the fair value estimates may not be realized in an immediate settlement of the instrument.

The fair value guidance provides a consistent definition of fair value, which focuses on exit price in an orderly transaction (that is, not a forced liquidation or distressed sale) between market participants at the measurement date under current market conditions. If there has been a significant decrease in the volume and level of activity for the asset or liability, a change in valuation technique or the use of multiple valuation techniques may be appropriate. In such instances, determining the price at which willing market participants would transact at the measurement date under current market conditions depends on the facts and circumstances and requires the use of significant judgment. The fair value is a reasonable point within the range that is most representative of fair value under current market conditions. In accordance with this guidance, the Company groups its assets and liabilities carried at fair value in three levels as follows:

Level 1 Input:

1) Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities.

Level 2 Inputs:

1) Quoted prices for similar assets or liabilities in active markets.

2) Quoted prices for identical or similar assets or liabilities in markets that are not active.

3) Inputs other than quoted prices that are observable, either directly or indirectly, for the term of the asset or liability (e.g., interest rates, yield curves, credit risks, prepayment speeds or volatilities) or “market corroborated inputs.”

Level 3 Inputs:

1) Prices or valuation techniques that require inputs that are both unobservable (i.e. supported by little or no market activity) and that are significant to the fair value of the assets or liabilities.

47

2) These assets and liabilities include financial instruments whose value is determined using pricing models, discounted cash flow methodologies, or similar techniques, as well as instruments for which the determination of fair value requires significant management judgment or estimation.

Fair Value on a Recurring Basis:

The following is a description of the Company’s valuation methodologies for assets carried at fair value. These methods may produce a fair value calculation that may not be indicative of net realizable value or reflective of future fair values. Furthermore, while the Company believes that its valuation methods are appropriate and consistent with other market participants, the use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different estimate of fair value at the reporting measurement date.

Investment Securities Available for Sale:

Where quoted prices are available in an active market, securities are classified in Level 1 of the valuation hierarchy. Securities in Level 1 are exchange-traded equities. If quoted market prices are not available for the specific security, then fair values are provided by independent third-party valuations services. These valuations services estimate fair values using pricing models and other accepted valuation methodologies, such as quotes for similar securities and observable yield curves and spreads. As part of the Company’s overall valuation process, management evaluates these third-party methodologies to ensure that they are representative of exit prices in the Company’s principal markets. Securities in Level 2 include U.S. Government agencies, mortgage-backed securities, state and municipal securities and trust preferred securities.

Securities in Level 3 include thinly-traded and collateralized debt obligations. With the assistance of competent third-party valuation specialists, the Company utilized the following methodology to determine the fair value:

Cash flows were developed based on the estimated speeds at which the TruPS are expected to prepay (a range of 1% to 2%), the estimated rates at which the TruPS are expected to defer payments, the estimated rates at which the TruPS are expected to default (a range of 0.57% to 0.66%), and the severity of the losses on securities which default (95%). TruPS generally allow for prepayment by the issuer without a prepayment penalty any time after five years. Due to the lack of new TruPS issuances and the relatively poor conditions of the financial institution industry, a relatively modest rate of prepayment was assumed going forward. Estimates for CDRs are based on the payment characteristics of the TruPS themselves (e.g. current, deferred, or defaulted) as well as the financial condition of the TruPS issuers in the pool. Estimates for the near-term rates of deferral and CDR are based on key financial ratios relating to the financial institutions’ capitalization, asset quality, profitability and liquidity. Finally, we consider whether or not the financial institution has received TARP funding, and if it has, the amount. Longer-term rates of deferral and defaults are based on historical averages. The fair value of each bond was assessed by discounting its projected cash flows by a discount rate.  The discount rates were based on the yields of publicly traded TruPS and preferred stock issued by comparably rated banks (3 month LIBOR plus a spread of 400 to 959 basis points).

48

The table below presents the balances of assets and liabilities measured at fair value on a recurring basis at December 31, 2012 and 2011.

Financial Assets	Level 1		Level 2		Level 3		Total
	(Amounts in thousands)
Securities Available for Sale
As of December 31, 2012
U.S. Government sponsored entities	$	—	$	7	$	—	$	7
Corporate debt obligations		—		1,524		—		1,524
Residential mortgage-backed securities		—		12,899		—		12,899
Collateralized mortgage-backed securities				968		6		974
Collateralized debt obligations		—		—		3,936		3,936
Total	$	—	$	15,398	$	3,942	$	19,340
As of December 31, 2011
U.S. Government sponsored entities	$	—	$	1,011	$	—	$	1,011
Corporate debt obligations		—		1,486		—		1,486
Residential mortgage-backed securities		—		14,461		—		14,461
Collateralized mortgage-backed securities				1,437		157		1,594
Collateralized debt obligations		—		—		3,965		3,965
Total	$	—	$	18,395	$	4,122	$	22,517

For the year ended December 31, 2012, there were no transfers between the levels within the fair value hierarchy.

49

The changes in Level 3 assets measured at fair value on a recurring basis are summarized as follows for the years ended December 31:

	Securities Available for Sale
	2012			2011
	(Amounts in thousands)
Beginning balance at January 1,	$	4,122		$	4,560
Total net losses included in:
Net loss – CMO’s		(128	)		(129	)
Other comprehensive loss – CDO’s		(52	)		(107	)
Settlements		—			(202	)
Net transfers into Level 3		—			—
Ending balance December 31,	$	3,942		$	4,122

Fair Value on a Non-recurring Basis:

Certain assets and liabilities are not measured at fair value on an ongoing basis but are subject to fair value adjustments in certain circumstances (for example, when there is evidence of impairment).

Financial Assets	Level 1		Level 2		Level 3		Total
	(Amounts in thousands)
As of December 31, 2012
Collateral dependent impaired loans	$	—	$	—	$	56,620	$	56,620
OREO		—		—		26,057		26,057
As of December 31, 2011
Collateral dependent impaired loans	$	—	$	—	$	72,958	$	72,958
OREO		—		—		19,410		19,410

Collateral dependent impaired loans, which are measured in accordance with FASB ASC Topic 310 “Receivables”, for impairment, had a carrying amount of $56.6 million and $73.0 million at December 31, 2012 and December 31, 2011 respectively, with a valuation allowance of $547 thousand and $2.6 million at December 31, 2012 and December 31, 2011 respectively. The valuation allowance for collateral dependent impaired loans is included in the allowance for loan losses on the balance sheet. All collateral dependent impaired loans have an independent third-party full appraisal to determine the NRV based on the fair value of the underlying collateral, less cost to sell (a range of 5% to 10%) and other costs, such as unpaid real estate taxes, that have been identified, or the present value of discounted cash flows in the case of certain impaired loans that are not collateral dependent. The appraisal will be based on an "as-is" valuation and will follow a reasonable valuation method that addresses the direct sales comparison, income, and cost approaches to market value, reconciles those approaches, and explains the elimination of each approach not used. Appraisals are updated every 12 months or sooner if we have identified possible further deterioration in value.

OREO consists of commercial real estate properties which are recorded at fair value based upon current appraised value less estimated disposition costs, which is adjusted based upon management’s review and changes in market conditions (Level 3 inputs). Properties are reappraised annually.

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Fair Value of Financial Instruments

The Company discloses estimated fair values for its significant financial instruments in accordance with FASB ASC Topic 825, “Disclosures about Fair Value of Financial Instruments”.  The methodologies for estimating the fair value of financial assets and liabilities that are measured at fair value on a recurring or non-recurring basis are discussed above. The methodologies for estimating the fair value of other financial assets and liabilities are discussed below.

For certain financial assets and liabilities, carrying value approximates fair value due to the nature of the financial instrument. These instruments include cash and cash equivalents, restricted stock, accrued interest receivable, demand and other non-maturity deposits and accrued interest payable.

The Company used the following methods and assumptions in estimating the fair value of the following financial instruments:

Investment Securities:Fair value of securities available for sale is described above. Fair value of held to maturity securities is based upon quoted market prices (Level 2 inputs).

Loans Held for Sale: Fair value represents the face value of the guaranteed portion of SBA loans pending settlement.

Loans (other than impaired):  Fair values are estimated for portfolios of loans with similar financial characteristics.  Loans are segregated by type such as commercial, residential mortgage and other consumer.  Each loan category is further segmented into groups by fixed and adjustable rate interest terms and by performing and non-performing categories. The fair value of performing loans is calculated by discounting scheduled cash flows through their estimated maturity, using estimated market discount rates that reflect the credit and interest rate risk inherent in each group of loans (Level 2 inputs).  The estimate of maturity is based on contractual maturities for loans within each group, or on the Company’s historical experience with repayments for each loan classification, modified as required by an estimate of the effect of current economic conditions.

Deposits:  The fair value of time deposits is based on the discounted value of contractual cash flows, where the discount rate is estimated using the market rates currently offered for deposits of similar remaining maturities (Level 2 inputs).

Borrowings: The fair values of FHLBNY borrowings, other borrowed funds and subordinated debt are based on the discounted value of estimated cash flows.  The discounted rate is estimated using market rates currently offered for similar advances or borrowings (Level 2 inputs).

Bank premises and equipment, customer relationships, deposit base and other information required to compute the Company’s aggregate fair value are not included in the above information. Accordingly, the above fair values are not intended to represent the aggregate fair value of the Company.

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The following table summarizes the carrying amounts and fair values for financial instruments at December 31, 2012 and December 31, 2011:

	Level in Fair Value Hierarchy	December 31, 2012				December 31, 2011
		Carrying Value		Fair Value		Carrying Value		Fair Value
		(Amounts in thousands)
Financial Assets:
Cash and cash equivalents	Level 1	$	76,866	$	76,866	$	110,228	$	110,228
Investment securities AFS	(1)		19,340		19,340		22,517		22,517
Investment securities HTM	Level 2		2,066		2,239		2,032		2,080
Restricted stock	Level 2		2,223		2,223		3,565		3,565
Loans held for sale	Level 2		495		495		225		225
Loans, net	(2)		610,776		632,723		605,794		622,801
Accrued interest receivable	Level 2		2,727		2,727		3,039		3,039
Financial Liabilities:
Demand and savings deposits	Level 2	$	367,158	$	367,158	$	356,440	$	356,440
Time deposits	Level 2		270,049		271,786		278,415		280,147
Borrowings	Level 2		43,851		42,849		74,010		79,997
Accrued interest payable	Level 2		537		537		618		618

(1)See the recurring fair value table above.

(2)For non-impaired loans, Level 2; for impaired loans, Level 3.

52

Note  17.  Parent Company Only Financial Statements

Condensed financial information of the parent company only is presented in the following two tables:

Balance Sheets	December 31,
	2012		2011
	(Amounts in thousands)
Assets:
Cash	$	53	$	257
Investments in subsidiaries		97,114		90,277
Other assets		5		229
Total assets	$	97,172	$	90,763
Liabilities and Equity:
Subordinated debentures	$	13,403	$	13,403
Other liabilities		132		136
Equity		83,637		77,224
Total liabilities and equity	$	97,172	$	90,763
Statements of Income	Years ended December 31,
	2012		2011
	(Amounts in thousands)
Income:
Dividends from bank subsidiary	$	996	$	1,600
Other income		87		—
Expense:
Interest on subordinated debentures		282		256
Other expenses		269		295
		551		551
Income before income taxes		532		1,049
Provision for income taxes		—		—
Equity in undistributed income of subsidiaries		6,781		6,223
Net income		7,313		7,272
Preferred stock dividend and discount accretion		1,012		1,000
Net income available to common shareholders	$	6,301	$	6,272

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Statements of Cash Flows
	Years ended December 31,
	2012			2011
	(Amounts in thousands)
Cash Flows from Operating Activities
Net income	$	7,313		$	7,272
Adjustments to reconcile net income to net cash provided by operating activities:
Equity in undistributed earnings of subsidiaries		(6,781	)		(6,223	)
Changes in operating assets and liabilities:
Increase in other assets		48			(93	)
Decrease in accrued interest payable and other accrued liabilities		(4	)		(28	)
Net cash provided by operating activities		576			928
Cash Flows from Investing Activities
Net cash used in investing activities		—			—
Cash Flows from Financing Activities
Proceeds from exercise of stock options		35
Payment of dividend on preferred stock		(815	)		(815	)
Net cash used in financing activities		(780	)		(815	)
Increase/(decrease) in cash and cash equivalents		(204	)		113
Cash and Cash Equivalents, January 1,		257			144
Cash and Cash Equivalents, December 31,	$	53		$	257

Note  18.  Subsequent Events

Management has evaluated subsequent events through the date of issuance of the financial statements and does not believe any such events warrant recording or disclosure in these financial statements.

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CORPORATE INFORMATION
PARKE BANCORP, INC.
601 Delsea Drive
Washington Township, NJ 08080
(856) 256-2500
www.parkebank.com
Board of Directors (Parke Bank and Parke Bancorp, Inc.)
Celestino R. (“Chuck”) Pennoni		Vito S. Pantilione
Chairman of the Board of Directors		President, Chief Executive and Director
Chairman & CEO - Pennoni Associates
Fred G. Choate Director	Daniel J. Dalton Director		Arret F. Dobson Director
President of Greater Philadelphia Venture Capital Corporation	Vice President with Brown & Brown		Real Estate Developer
Edward Infantolino Director	Anthony J. Jannetti Director		Jeffrey H. Kripitz Director
President of Ocean Internal Medicine Associates, P.A.	President of Anthony J. Jannetti, Inc.		Owner of Jeff Kripitz Agency
Jack C. Sheppard, Jr. Director			Ray H. Tresch Director
Executive Vice President with Bollinger Insurance			Owner of Redy Mixt Konkrete
	_______________________
	Parke Bancorp, Inc. Officers
Vito S. Pantilione President and Chief Executive Officer	Elizabeth A. Milavsky Executive Vice President		John F. Hawkins Senior  Vice President and Chief Financial Officer
	Paul E. Palmieri Senior Vice President and Corporate Secretary
	________________________
Transfer Agent & Registrar Registrar and Transfer Company 10 Commerce Dr. Cranford, NJ 07016	Independent Auditors McGladrey LLP 751 Arbor Way, Suite 200 Blue Bell, PA 19422		Special Counsel Spidi & Fisch, PC 1227 25th Street, N.W. Suite 200 West Washington, D.C. 20037

55

PARKE BANK

Officers
Vito S. Pantilione	Elizabeth A. Milavsky
President & Chief Executive Officer	Executive Vice President & Chief Operating Officer
John F. Hawkins	Robert Gehring
Senior Vice President & Chief Financial Officer	Senior Vice President & Chief Credit Officer
David O. Middlebrook	Paul E. Palmieri
Senior Vice President & Senior Loan Officer	Senior Vice President, Philadelphia Region
Daniel Sulpizio	Allen M. Bachman
Senior Vice President	Vice President
Dolores M. Calvello	Kathleen A. Conover
Vice President	Vice President
Gil Eubank	Ralph Gallo
Vice President	Vice President & Chief Workout Officer
Anthony “Nino” Lombardo	Lisa Perkins
Vice President & Controller	Vice President
Marlon R. Soriano	James S. Talarico
Vice President	Vice President
Marysharon Mitchell	Nicholas Pantilione
Assistant Vice President	Assistant Vice President
Mary Ann Seal	Bart Seaman
Assistant Vice President	Assistant Vice President
Frank Zangari
Assistant Vice President

Branches
Northfield Office	Main Office		Kennedy Office
501 Tilton Road	601 Delsea Drive		567 Egg Harbor Road
Northfield, NJ  08225	Washington Township, NJ  08080		Washington Township, NJ  08080
(609) 646-6677	(856) 256-2500		(856) 582-6900
Philadelphia Office		Galloway Township Office
1610 Spruce Street		67 East Jimmie Leeds Road
Philadelphia, PA  19103		Galloway Township, NJ 08205
(215) 772-1113		(609) 748-9700

Parke Bank	44 Business Capital LLC	Parke Capital Trust I
601 Delsea Drive	1787 Sentry Parkway West	Parke Capital Trust II
Washington Township, NJ  08080	Building 16, Suite 210	Parke Capital Trust III
(856) 256-2500	Blue Bell, PA  19422	601 Delsea Drive
www.parkebank.com	(215) 985-4400	Washington Township, NJ 08080
	www.44businesscapital.com	(856) 256-2500

56

EX-21

 Exhibit 21

Subsidiaries of the Registrant

Parent

Parke Bancorp, Inc.

	State or Other
	Jurisdiction of	Percentage
Subsidiaries	Incorporation	Ownership
Parke Bank	New Jersey	100%
Parke Capital Trust I	Delaware	100%
Parke Capital Trust II	Delaware	100%
Parke Capital Trust III	Delaware	100%
Subsidiaries of Parke Bank
Parke Capital Markets	New Jersey	100%
44 Business Capital LLC	New Jersey	51%

EX-23

Exhibit 23

Consent of Independent Registered Public Accounting Firm

We consent to the incorporation by reference in Registration Statements No. 333-128202 and No. 333-134249 on Forms S-8 and the Registration Statement No. 333-146121 and No. 333-157631 on Forms S-3 of Parke Bancorp, Inc. of our report, dated March 22, 2013, relating to our audit of the 2012 Consolidated Financial Statements of Parke Bancorp, Inc., appearing in the Annual Report to Shareholders, which report is incorporated in this Annual Report on Form 10-K of Parke Bancorp, Inc. for the year ended December 31, 2012.

/s/ McGladrey, LLP

Blue Bell, Pennsylvania

March 22, 2013

EX-31.1

Exhibit 31.1

CERTIFICATION

I, Vito S. Pantilione, President and Chief Executive Officer, certify that:

1. I have reviewed this Form 10-K of Parke Bancorp, Inc. for the year ended December 31, 2012;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date	March 22, 2013	/s/ Vito S. Pantilione
		Vito S. Pantilione
		President and Chief Executive Officer

EX-31.2

Exhibit 31.2

CERTIFICATION

I, John F. Hawkins, Senior Vice President and Chief Financial Officer:

1. I have reviewed this Form 10-K of Parke Bancorp, Inc. for the year ended December 31, 2012;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date	March 22, 2013	/s/ John F. Hawkins
		John F. Hawkins
		Senior Vice President and Chief Financial Officer

EX-32

Exhibit 32

CERTIFICATION

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Annual Report on Form 10-K for the year ended December 31, 2012 (the “Report”) of Parke Bancorp, Inc. (the “Company”) as filed with the Securities and Exchange Commission, we, Vito S. Pantilione, President and Chief Executive Officer, and John F. Hawkins, Senior Vice President and Chief Financial Officer, certify, pursuant to 18 U.S.C. §1350, as adopted pursuant to §906 of the Sarbanes-Oxley Act of 2002, that:

(1)           The Report fully complies with the requirements of Section 13(a) of the Securities Exchange Act of 1934; and

(2)           The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

/s/ Vito S. Pantilione	/s/ John F. Hawkins
Vito S. Pantilione	John F. Hawkins
President and Chief Executive Officer	Senior Vice President and Chief Financial Officer
(Principal Executive Officer)	(Principal Financial Officer)

March 22, 2013

EX-99

Exhibit 99

EESA §111(b)(4) Certification Following First Fiscal Year

I certify, based on my knowledge, that:

(i)           The compensation committee of Parke Bancorp, Inc., Inc. has discussed, reviewed, and evaluated with senior risk officers at least every six months during any part of the most recently completed fiscal year that was a TARP period, the senior executive officer (SEO) compensation plans and employee compensation plans and the risks these plans pose to Parke Bancorp, Inc.;

(ii)           The compensation committee of Parke Bancorp, Inc. has identified and limited during any part of the most recently completed fiscal year that was a TARP period any features of the SEO compensation plans that could lead SEOs to take unnecessary and excessive risks that could threaten the value of Parke Bancorp, Inc. and has identified any features of the employee compensation plans that pose risks to Parke Bancorp, Inc. and has limited those features to ensure that Parke Bancorp, Inc. is not unnecessarily exposed to risks;

(iii)           The compensation committee has reviewed, at least every six months during any part of the most recently completed fiscal year that was a TARP period, the terms of each employee compensation plan and identified the features of the plan that could encourage the manipulation of reported earnings of Parke Bancorp, Inc. to enhance the compensation of an employee and has limited any such features;

(iv)           The compensation committee of Parke Bancorp, Inc. will certify to the reviews of the SEO compensation plans and employee compensation plans required under (i) and (iii) above;

(v)           The compensation committee of Parke Bancorp, Inc. will provide a narrative description of how it limited during any part of the most recently completed fiscal year that included a TARP period the features in

(A) SEO compensation plans that could lead SEOs to take unnecessary and excessive risks that could threaten the value of Parke Bancorp, Inc.;

(B) Employee compensation plans that unnecessarily expose Parke Bancorp, Inc. to risks; and

(C) Employee compensation plans that could encourage the manipulation of reported earnings of Parke Bancorp, Inc. to enhance the compensation of an employee;

(vi)           Parke Bancorp, Inc. has required that bonus payments, as defined in the regulations and guidance established under section 111 of EESA (bonus payments), of the SEOs and twenty next most highly compensated employees be subject to a recovery or “clawback” provision during any part of the most recently completed fiscal year that was a TARP period if the bonus payments were based on materially inaccurate financial statements or any other materially inaccurate performance metric criteria;

(vii)           Parke Bancorp, Inc. has prohibited any golden parachute payment, as defined in the regulations and guidance established under section 111 of EESA, to an SEO or any of the next five most highly compensated employees during any part of the most recently completed fiscal year that was a TARP period;

(viii)           Parke Bancorp, Inc. has limited bonus payments to its applicable employees in accordance with section 111 of EESA and the regulations and guidance established thereunder during any part of the most recently completed fiscal year that was a TARP period;

(ix)           The board of directors of Parke Bancorp, Inc. and its employees have complied with the excessive or luxury expenditures policy, as defined in the regulations and guidance established under section 111 of EESA, during any part of the most recently completed fiscal year that was a TARP period; and any expenses that, pursuant to this policy, require approval of the board of directors, a committee of the board of directors, an SEO, or an executive officer with a similar level of responsibility, were properly approved;

(x)           Parke Bancorp, Inc. will permit a non-binding shareholder resolution in compliance with any applicable Federal securities rules and regulations on the disclosures provided under the Federal securities laws related to SEO compensation paid or accrued during any part of the most recently completed fiscal year that was a TARP period;

(xi)           Parke Bancorp, Inc. will disclose the amount, nature, and justification for the offering during any part of the most recently completed fiscal year that was a TARP period, any perquisites, as defined in the regulations and guidance established under section 111 of EESA, whose total value exceeds $25,000 for each employee subject to the bonus payment limitations identified in paragraph (viii);

(xii)           Parke Bancorp, Inc. will disclose whether Parke Bancorp, Inc., the board of directors of Parke Bancorp, Inc., or the compensation committee of Parke Bancorp, Inc. has engaged during any part of the most recently completed fiscal year that was a TARP period a compensation consultant; and the services the compensation consultant or any affiliate of the compensation consultant provided during this period;

(xiii)           Parke Bancorp, Inc. has prohibited the payment of any gross-ups, as defined in the regulations and guidance established under section 111 of EESA, to the SEOs and the next twenty most highly compensated employees during any part of the most recently completed fiscal year that was a TARP period;

(xiv)           Parke Bancorp, Inc. has substantially complied with all other requirements related to employee compensation that are provided in the agreement between Parke Bancorp, Inc. and Treasury, including any amendments;

(xv)           Parke Bancorp, Inc. has submitted to Treasury a complete and accurate list of the SEOs and the twenty most highly compensated employees for the current fiscal year, with the non-SEOs ranked in descending order of level of annual compensation, and with the name, title, and employer of each SEO and most highly compensated employee identified; and

(xvi)           I understand that a knowing and willful false or fraudulent statement made in connection with this certification maybe punished by fine, imprisonment, or both.  [See, for example, 18 U.S.C. 1001]

By:	/s/ Vito S. Pantilione
	Mr. Vito S. Pantilione
	Principal Executive Officer

EESA §111(b)(4) Certification Following First Fiscal Year

I certify, based on my knowledge, that:

(i)           The compensation committee of Parke Bancorp, Inc., Inc. has discussed, reviewed, and evaluated with senior risk officers at least every six months during any part of the most recently completed fiscal year that was a TARP period, the senior executive officer (SEO) compensation plans and employee compensation plans and the risks these plans pose to Parke Bancorp, Inc.;

(ii)           The compensation committee of Parke Bancorp, Inc. has identified and limited during any part of the most recently completed fiscal year that was a TARP period any features of the SEO compensation plans that could lead SEOs to take unnecessary and excessive risks that could threaten the value of Parke Bancorp, Inc. and has identified any features of the employee compensation plans that pose risks to Parke Bancorp, Inc. and has limited those features to ensure that Parke Bancorp, Inc. is not unnecessarily exposed to risks;

(iii)           The compensation committee has reviewed, at least every six months during any part of the most recently completed fiscal year that was a TARP period, the terms of each employee compensation plan and identified the features of the plan that could encourage the manipulation of reported earnings of Parke Bancorp, Inc. to enhance the compensation of an employee and has limited any such features;

(iv)           The compensation committee of Parke Bancorp, Inc. will certify to the reviews of the SEO compensation plans and employee compensation plans required under (i) and (iii) above;

(v)           The compensation committee of Parke Bancorp, Inc. will provide a narrative description of how it limited during any part of the most recently completed fiscal year that included a TARP period the features in

(A) SEO compensation plans that could lead SEOs to take unnecessary and excessive risks that could threaten the value of Parke Bancorp, Inc.;

(B) Employee compensation plans that unnecessarily expose Parke Bancorp, Inc. to risks; and

(C) Employee compensation plans that could encourage the manipulation of reported earnings of Parke Bancorp, Inc. to enhance the compensation of an employee;

(vi)           Parke Bancorp, Inc. has required that bonus payments, as defined in the regulations and guidance established under section 111 of EESA (bonus payments), of the SEOs and twenty next most highly compensated employees be subject to a recovery or “clawback” provision during any part of the most recently completed fiscal year that was a TARP period if the bonus payments were based on materially inaccurate financial statements or any other materially inaccurate performance metric criteria;

(vii)           Parke Bancorp, Inc. has prohibited any golden parachute payment, as defined in the regulations and guidance established under section 111 of EESA, to an SEO or any of the next five most highly compensated employees during any part of the most recently completed fiscal year that was a TARP period;

(viii)           Parke Bancorp, Inc. has limited bonus payments to its applicable employees in accordance with section 111 of EESA and the regulations and guidance established thereunder during any part of the most recently completed fiscal year that was a TARP period;

(ix)           The board of directors of Parke Bancorp, Inc. and its employees have complied with the excessive or luxury expenditures policy, as defined in the regulations and guidance established under section 111 of EESA, during any part of the most recently completed fiscal year that was a TARP period; and any expenses that, pursuant to this policy, require approval of the board of directors, a committee of the board of directors, an SEO, or an executive officer with a similar level of responsibility, were properly approved;

(x)           Parke Bancorp, Inc. will permit a non-binding shareholder resolution in compliance with any applicable Federal securities rules and regulations on the disclosures provided under the Federal securities laws related to SEO compensation paid or accrued during any part of the most recently completed fiscal year that was a TARP period;

(xi)           Parke Bancorp, Inc. will disclose the amount, nature, and justification for the offering during any part of the most recently completed fiscal year that was a TARP period, any perquisites, as defined in the regulations and guidance established under section 111 of EESA, whose total value exceeds $25,000 for each employee subject to the bonus payment limitations identified in paragraph (viii);

(xii)           Parke Bancorp, Inc. will disclose whether Parke Bancorp, Inc., the board of directors of Parke Bancorp, Inc., or the compensation committee of Parke Bancorp, Inc. has engaged during any part of the most recently completed fiscal year that was a TARP period a compensation consultant; and the services the compensation consultant or any affiliate of the compensation consultant provided during this period;

(xiii)           Parke Bancorp, Inc. has prohibited the payment of any gross-ups, as defined in the regulations and guidance established under section 111 of EESA, to the SEOs and the next twenty most highly compensated employees during any part of the most recently completed fiscal year that was a TARP period;

(xiv)           Parke Bancorp, Inc. has substantially complied with all other requirements related to employee compensation that are provided in the agreement between Parke Bancorp, Inc. and Treasury, including any amendments;

(xv)           Parke Bancorp, Inc. has submitted to Treasury a complete and accurate list of the SEOs and the twenty most highly compensated employees for the current fiscal year, with the non-SEOs ranked in descending order of level of annual compensation, and with the name, title, and employer of each SEO and most highly compensated employee identified; and

(xvi)           I understand that a knowing and willful false or fraudulent statement made in connection with this certification maybe punished by fine, imprisonment, or both.  [See, for example, 18 U.S.C. 1001]

By:	/s/ John F. Hawkins
	Mr. John F. Hawkins
	Principal Financial Officer

XML

Shareholders' Equity (Tables)

12 Months Ended

Dec. 31, 2012

Shareholders' Equity [Abstract]

Schedule of stock options activity

The following table summarizes stock option activity for the year ended December 31, 2012.

Options	Shares	Weighted Average Exercise Price		Weighted Average Remaining Contractual Life	Aggregate Intrinsic Value
Outstanding at January 1, 2012	415,708	$	9.01
Granted	—	$	—
Exercised	9,332	$	3.75
Expired/terminated	49,534	$	8.25
Outstanding at December 31, 2012	356,842	$	9.36	2.4	$	—
Exercisable at December 31, 2012	356,842	$	9.36	2.4	$	—

Schedule of stock options outstanding and exercisable

Stock options outstanding and exercisable at December 31, 2012 are as follows:

Range of Exercise Prices	Number Outstanding		Weighted Average Remaining Contractual Life		Weighted Average Exercise Price
$5.25		55,287		0.4	$	5.25
$7.42		11,010		1.3	$	7.42
$8.91		44,424		2.2	$	8.91
$10.39		229,285		3.0	$	10.39
$11.28		16,836		3.8	$	11.28
		356,842		2.4	$	9.36

XML

Income Taxes (Details) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011
Current tax expense [Abstract]
Federal	$ 4,405	$ 5,808
State	1,180	1,517
Current income tax expense, Total	5,585	7,325
Deferred tax benefit	(1,343)	(1,801)
Income tax expense	4,242	5,524
Deferred tax assets [Abstract]
Allowance for loan losses	7,735	7,894
Minimum pension liability	2,262	2,175
Stock compensation	30	30
Depreciation	221	211
Capitalized OREO expense	1,551	518
OTTI write down on securities	1,217	1,353
Deferred tax assets	13,016	12,181
Deferred tax liabilities [Abstract]
Discount accretion	16	(27)
Deferred loan costs	(735)	(674)
Investment securities available for sale	(399)	(310)
BOLI	0	(576)
Deferred tax liabilities	(1,118)	(1,587)
Net deferred tax asset	11,898	10,594
Reconciliation of the Company's effective income tax rate with the statutory federal rate [Abstract]
At Federal statutory rate	4,309	4,805
Adjustments resulting from [Abstract]
State income taxes, net of Federal tax benefit	657	714
Other	(77)	5
Income tax expense	$ 4,242	$ 5,524

XML

Loans, Credit Quality Indicators (Details) (USD $) In Thousands, unless otherwise specified			12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2012 Minimum [Member]	Dec. 31, 2012 Maximum [Member]	Dec. 31, 2012 Commercial and industrial [Member]	Dec. 31, 2011 Commercial and industrial [Member]	Dec. 31, 2012 Real estate construction [Member] Residential [Member]	Dec. 31, 2011 Real estate construction [Member] Residential [Member]	Dec. 31, 2012 Real estate construction [Member] Commercial [Member]	Dec. 31, 2011 Real estate construction [Member] Commercial [Member]	Dec. 31, 2012 Real estate mortgage [Member] Commercial - Owner Occupied [Member]	Dec. 31, 2011 Real estate mortgage [Member] Commercial - Owner Occupied [Member]	Dec. 31, 2012 Real estate mortgage [Member] Commercial - Non-owner Occupied [Member]	Dec. 31, 2011 Real estate mortgage [Member] Commercial - Non-owner Occupied [Member]	Dec. 31, 2012 Real estate mortgage [Member] Residential - 1 to 4 family [Member]	Dec. 31, 2011 Real estate mortgage [Member] Residential - 1 to 4 family [Member]	Dec. 31, 2012 Real estate mortgage [Member] Residential - Multifamily [Member]	Dec. 31, 2011 Real estate mortgage [Member] Residential - Multifamily [Member]	Dec. 31, 2012 Consumer [Member]	Dec. 31, 2011 Consumer [Member]	Dec. 31, 2012 Pass [Member]	Dec. 31, 2011 Pass [Member]	Dec. 31, 2012 Pass [Member] Commercial and industrial [Member]	Dec. 31, 2011 Pass [Member] Commercial and industrial [Member]	Dec. 31, 2012 Pass [Member] Real estate construction [Member] Residential [Member]	Dec. 31, 2011 Pass [Member] Real estate construction [Member] Residential [Member]	Dec. 31, 2012 Pass [Member] Real estate construction [Member] Commercial [Member]	Dec. 31, 2011 Pass [Member] Real estate construction [Member] Commercial [Member]	Dec. 31, 2012 Pass [Member] Real estate mortgage [Member] Commercial - Owner Occupied [Member]	Dec. 31, 2011 Pass [Member] Real estate mortgage [Member] Commercial - Owner Occupied [Member]	Dec. 31, 2012 Pass [Member] Real estate mortgage [Member] Commercial - Non-owner Occupied [Member]	Dec. 31, 2011 Pass [Member] Real estate mortgage [Member] Commercial - Non-owner Occupied [Member]	Dec. 31, 2012 Pass [Member] Real estate mortgage [Member] Residential - 1 to 4 family [Member]	Dec. 31, 2011 Pass [Member] Real estate mortgage [Member] Residential - 1 to 4 family [Member]	Dec. 31, 2012 Pass [Member] Real estate mortgage [Member] Residential - Multifamily [Member]	Dec. 31, 2011 Pass [Member] Real estate mortgage [Member] Residential - Multifamily [Member]	Dec. 31, 2012 Pass [Member] Consumer [Member]	Dec. 31, 2011 Pass [Member] Consumer [Member]	Dec. 31, 2012 OAEM [Member]	Dec. 31, 2011 OAEM [Member]	Dec. 31, 2012 OAEM [Member] Commercial and industrial [Member]	Dec. 31, 2011 OAEM [Member] Commercial and industrial [Member]	Dec. 31, 2012 OAEM [Member] Real estate construction [Member] Residential [Member]	Dec. 31, 2011 OAEM [Member] Real estate construction [Member] Residential [Member]	Dec. 31, 2012 OAEM [Member] Real estate construction [Member] Commercial [Member]	Dec. 31, 2011 OAEM [Member] Real estate construction [Member] Commercial [Member]	Dec. 31, 2012 OAEM [Member] Real estate mortgage [Member] Commercial - Owner Occupied [Member]	Dec. 31, 2011 OAEM [Member] Real estate mortgage [Member] Commercial - Owner Occupied [Member]	Dec. 31, 2012 OAEM [Member] Real estate mortgage [Member] Commercial - Non-owner Occupied [Member]	Dec. 31, 2011 OAEM [Member] Real estate mortgage [Member] Commercial - Non-owner Occupied [Member]	Dec. 31, 2012 OAEM [Member] Real estate mortgage [Member] Residential - 1 to 4 family [Member]	Dec. 31, 2011 OAEM [Member] Real estate mortgage [Member] Residential - 1 to 4 family [Member]	Dec. 31, 2012 OAEM [Member] Real estate mortgage [Member] Residential - Multifamily [Member]	Dec. 31, 2011 OAEM [Member] Real estate mortgage [Member] Residential - Multifamily [Member]	Dec. 31, 2012 OAEM [Member] Consumer [Member]	Dec. 31, 2011 OAEM [Member] Consumer [Member]	Dec. 31, 2012 Substandard [Member]	Dec. 31, 2011 Substandard [Member]	Dec. 31, 2012 Substandard [Member] Commercial and industrial [Member]	Dec. 31, 2011 Substandard [Member] Commercial and industrial [Member]	Dec. 31, 2012 Substandard [Member] Real estate construction [Member] Residential [Member]	Dec. 31, 2011 Substandard [Member] Real estate construction [Member] Residential [Member]	Dec. 31, 2012 Substandard [Member] Real estate construction [Member] Commercial [Member]	Dec. 31, 2011 Substandard [Member] Real estate construction [Member] Commercial [Member]	Dec. 31, 2012 Substandard [Member] Real estate mortgage [Member] Commercial - Owner Occupied [Member]	Dec. 31, 2011 Substandard [Member] Real estate mortgage [Member] Commercial - Owner Occupied [Member]	Dec. 31, 2012 Substandard [Member] Real estate mortgage [Member] Commercial - Non-owner Occupied [Member]	Dec. 31, 2011 Substandard [Member] Real estate mortgage [Member] Commercial - Non-owner Occupied [Member]	Dec. 31, 2012 Substandard [Member] Real estate mortgage [Member] Residential - 1 to 4 family [Member]	Dec. 31, 2011 Substandard [Member] Real estate mortgage [Member] Residential - 1 to 4 family [Member]	Dec. 31, 2012 Substandard [Member] Real estate mortgage [Member] Residential - Multifamily [Member]	Dec. 31, 2011 Substandard [Member] Real estate mortgage [Member] Residential - Multifamily [Member]	Dec. 31, 2012 Substandard [Member] Consumer [Member]	Dec. 31, 2011 Substandard [Member] Consumer [Member]	Dec. 31, 2012 Doubtful [Member]	Dec. 31, 2011 Doubtful [Member]	Dec. 31, 2012 Doubtful [Member] Commercial and industrial [Member]	Dec. 31, 2011 Doubtful [Member] Commercial and industrial [Member]	Dec. 31, 2012 Doubtful [Member] Real estate construction [Member] Residential [Member]	Dec. 31, 2011 Doubtful [Member] Real estate construction [Member] Residential [Member]	Dec. 31, 2012 Doubtful [Member] Real estate construction [Member] Commercial [Member]	Dec. 31, 2011 Doubtful [Member] Real estate construction [Member] Commercial [Member]	Dec. 31, 2012 Doubtful [Member] Real estate mortgage [Member] Commercial - Owner Occupied [Member]	Dec. 31, 2011 Doubtful [Member] Real estate mortgage [Member] Commercial - Owner Occupied [Member]	Dec. 31, 2012 Doubtful [Member] Real estate mortgage [Member] Commercial - Non-owner Occupied [Member]	Dec. 31, 2011 Doubtful [Member] Real estate mortgage [Member] Commercial - Non-owner Occupied [Member]	Dec. 31, 2012 Doubtful [Member] Real estate mortgage [Member] Residential - 1 to 4 family [Member]	Dec. 31, 2011 Doubtful [Member] Real estate mortgage [Member] Residential - 1 to 4 family [Member]	Dec. 31, 2012 Doubtful [Member] Real estate mortgage [Member] Residential - Multifamily [Member]	Dec. 31, 2011 Doubtful [Member] Real estate mortgage [Member] Residential - Multifamily [Member]	Dec. 31, 2012 Doubtful [Member] Consumer [Member]	Dec. 31, 2011 Doubtful [Member] Consumer [Member]
Financing Receivable, Recorded Investment [Line Items]
Loan scale for risk grade points range			1	7
Loans	$ 629,712	$ 625,117			$ 21,925	$ 24,136	$ 7,331	$ 21,287	$ 41,875	$ 50,361	$ 157,616	$ 147,449	$ 221,731	$ 204,216	$ 140,164	$ 138,768	$ 21,181	$ 20,126	$ 17,889	$ 18,774	$ 530,695	$ 501,154	$ 18,926	$ 16,033	$ 6,345	$ 12,327	$ 20,097	$ 23,898	$ 150,990	$ 137,200	$ 173,606	$ 156,277	$ 126,167	$ 120,658	$ 16,863	$ 16,261	$ 17,701	$ 18,500	$ 18,069	$ 29,748	$ 2,183	$ 7,500	$ 0	$ 350	$ 0	$ 0	$ 1,121	$ 3,840	$ 11,399	$ 10,430	$ 2,263	$ 4,360	$ 1,103	$ 3,268	$ 0	$ 0	$ 80,948	$ 94,215	$ 816	$ 603	$ 986	$ 8,610	$ 21,778	$ 26,463	$ 5,505	$ 6,409	$ 36,726	$ 37,509	$ 11,734	$ 13,750	$ 3,215	$ 597	$ 188	$ 274	$ 0	$ 0	$ 0	$ 0	$ 0	$ 0	$ 0	$ 0	$ 0	$ 0	$ 0	$ 0	$ 0	$ 0	$ 0	$ 0	$ 0	$ 0

XML

Retirement Plans (Details) (USD $)	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011
Defined benefit plan net periodic benefit cost [Abstract]
Discount rate of benefit obligation (in hundredths)	5.50%	5.50%
Expected rate of compensation increase (in hundredths)	4.00%	4.00%
Employee contribution (in hundredths)	3.00%
Plan expenses	$ 109,000	$ 98,000
Supplemental Employee Retirement Plans [Member]
Defined Benefit Plan Disclosure [Line Items]
Unfunded benefit obligation	3,137,000	3,002,000
Defined benefit plan change in benefit obligation [Roll Forward]
Benefit obligation, January 1	3,002,000	2,649,000
Service cost	(6,000)	232,000
Interest cost	165,000	120,000
(Gain) loss	(24,000)	1,000
Benefit obligation, December 31	3,137,000	3,002,000
Defined benefit plan net periodic benefit cost [Abstract]
Service cost	(6,000)	232,000
Interest cost	165,000	120,000
(Gain) loss	(24,000)	1,000
Prior service cost recognized	0	0
Net periodic benefit cost	$ 135,000	$ 353,000

XML

Loans, Nonaccrual and Past Due Loans (Details) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2012	Dec. 31, 2011
Age analysis of past due loans by class [Abstract]
30-59 Days Past Due	$ 8,213	$ 6,472
60-89 Days Past Due	218	0
Greater than 90 Days and Not Accruing	47,549	44,459
Total Past Due	55,980	50,931
Current	573,732	574,186
Loans	629,712	625,117
Loans > 90 Days and Accruing	0	0
Commercial and industrial [Member]
Age analysis of past due loans by class [Abstract]
30-59 Days Past Due	0	603
60-89 Days Past Due	0	0
Greater than 90 Days and Not Accruing	248	0
Total Past Due	248	603
Current	21,677	23,533
Loans	21,925	24,136
Loans > 90 Days and Accruing	0	0
Real estate construction [Member] | Residential [Member]
Age analysis of past due loans by class [Abstract]
30-59 Days Past Due	0	350
60-89 Days Past Due	0	0
Greater than 90 Days and Not Accruing	799	5,265
Total Past Due	799	5,615
Current	6,532	15,672
Loans	7,331	21,287
Loans > 90 Days and Accruing	0	0
Real estate construction [Member] | Commercial [Member]
Age analysis of past due loans by class [Abstract]
30-59 Days Past Due	0	0
60-89 Days Past Due	0	0
Greater than 90 Days and Not Accruing	12,958	7,703
Total Past Due	12,958	7,703
Current	28,917	42,658
Loans	41,875	50,361
Loans > 90 Days and Accruing	0	0
Real estate mortgage [Member] | Commercial - Owner Occupied [Member]
Age analysis of past due loans by class [Abstract]
30-59 Days Past Due	0	1,358
60-89 Days Past Due	0	0
Greater than 90 Days and Not Accruing	1,218	4,797
Total Past Due	1,218	6,155
Current	156,398	141,294
Loans	157,616	147,449
Loans > 90 Days and Accruing	0	0
Real estate mortgage [Member] | Commercial - Non-owner Occupied [Member]
Age analysis of past due loans by class [Abstract]
30-59 Days Past Due	6,439	1,574
60-89 Days Past Due	0	0
Greater than 90 Days and Not Accruing	19,228	18,132
Total Past Due	25,667	19,706
Current	196,064	184,510
Loans	221,731	204,216
Loans > 90 Days and Accruing	0	0
Real estate mortgage [Member] | Residential - 1 to 4 family [Member]
Age analysis of past due loans by class [Abstract]
30-59 Days Past Due	1,703	2,587
60-89 Days Past Due	169	0
Greater than 90 Days and Not Accruing	10,072	7,691
Total Past Due	11,944	10,278
Current	128,220	128,490
Loans	140,164	138,768
Loans > 90 Days and Accruing	0	0
Real estate mortgage [Member] | Residential - Multifamily [Member]
Age analysis of past due loans by class [Abstract]
30-59 Days Past Due	0	0
60-89 Days Past Due	0	0
Greater than 90 Days and Not Accruing	2,838	597
Total Past Due	2,838	597
Current	18,343	19,529
Loans	21,181	20,126
Loans > 90 Days and Accruing	0	0
Consumer [Member]
Age analysis of past due loans by class [Abstract]
30-59 Days Past Due	71	0
60-89 Days Past Due	49	0
Greater than 90 Days and Not Accruing	188	274
Total Past Due	308	274
Current	17,581	18,500
Loans	17,889	18,774
Loans > 90 Days and Accruing	$ 0	$ 0

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OREO (Tables)

12 Months Ended

Dec. 31, 2012

OREO [Abstract]

Analysis of OREO activity

An analysis of OREO activity for the years ended December 31, 2012 and 2011 is as follows:

	For the Year Ended December 31,
	2012			2011
	(Amounts in thousands)
Balance at beginning of period	$	19,410		$	16,701
Real estate acquired in settlement of loans		11,095			1,879
Sales of real estate		(3,533	)		(3,414	)
Loss on sale of real estate		(388	)		(44	)
Write-down of real estate carrying values		(611	)		(514	)
Contribution of OREO property		(139	)		—
Capitalized improvements to real estate		223			4,802
Balance at end of period	$	26,057		$	19,410

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Shareholders' Equity (Details) (USD $)	1 Months Ended		12 Months Ended
	May 31, 2012	May 31, 2011	Dec. 31, 2012	Dec. 31, 2011
Shareholders' Equity [Abstract]
Common stock, dividend rate (in hundredths)	10.00%	10.00%	10.00%	10.00%
Common stock dividend (in shares)	488,383	443,945
Repurchase of Company stock			$ 0	$ 0
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Common stock reserved for future issuance upon exercise of options (in shares)				148,181
Net compensation expenses			0	0
Contractual term			10 year
Summary of stock option activity [Roll Forward]
Outstanding (in shares)			415,708
Granted (in shares)			0
Exercised (in shares)			9,332
Expired/terminated (in shares)			49,534
Outstanding (in shares)			356,842	415,708
Exercisable (in shares)			356,842
Weighted Average Exercise Price [Roll Forward]
Outstanding (in dollars per share)			$ 9.01
Granted (in dollars per share)			$ 0
Exercised (in dollars per share)			$ 3.75
Expired/terminated (in dollars per share)			$ 8.25
Outstanding (in dollars per share)			$ 9.36	$ 9.01
Exercisable (in dollars per share)			$ 9.36
Weighted Average Remaining Contractual Life [Abstract]
Options outstanding			2 years 4 months 24 days
Options exercisable			2 years 4 months 24 days
Aggregate intrinsic value outstanding			0
Aggregate intrinsic value exercisable			0
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Number of Outstanding Options (in shares)			356,842
Weighted Average Remaining Contractual Term			2 years 4 months 24 days
Weighted Average Exercise Price (in dollars per share)			$ 9.36
Preferred Stock [Abstract]
Minimum investment of risk weighted assets (in hundredths)			1.00%
Maximum investment of risk weighted assets (in hundredths)			3.00%
Risk Weighted Assets			25,000,000,000
Perpetual preferred stock, dividend rate (in hundredths)			5.00%	5.00%
Perpetual preferred stock, dividend rate after fifth anniversary (in hundredths)			9.00%
Warrants receivable by US Treasury as percentage of capital invested (in hundredths)			15.00%
Proceeds from issuance of perpetual preferred stock			16,288,000
Period of accretion of discount on issuance of preferred stock			5 years
Common stock warrants issued to US Treasury (in shares)			359,135
Proceeds from issuance of warrants			930,000
Period of contractual life of warrants			10 years
Exercise price of warrants (in dollars per share)			$ 6.79
Dividend on preferred stock			$ 815,000	$ 815,000
$ 5.25 [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Range of Exercise Price (in dollars per share)			$ 5.25
Number of Outstanding Options (in shares)			55,287
Weighted Average Remaining Contractual Term			4 months 24 days
Weighted Average Exercise Price (in dollars per share)			$ 5.25
$ 7.42 [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Range of Exercise Price (in dollars per share)			$ 7.42
Number of Outstanding Options (in shares)			11,010
Weighted Average Remaining Contractual Term			1 year 3 months 18 days
Weighted Average Exercise Price (in dollars per share)			$ 7.42
$ 8.91[Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Range of Exercise Price (in dollars per share)			$ 8.91
Number of Outstanding Options (in shares)			44,424
Weighted Average Remaining Contractual Term			2 years 2 months 12 days
Weighted Average Exercise Price (in dollars per share)			$ 8.91
$ 10.39 [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Range of Exercise Price (in dollars per share)			$ 10.39
Number of Outstanding Options (in shares)			229,285
Weighted Average Remaining Contractual Term			3 years
Weighted Average Exercise Price (in dollars per share)			$ 10.39
$ 11.28 [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Range of Exercise Price (in dollars per share)			$ 11.28
Number of Outstanding Options (in shares)			16,836
Weighted Average Remaining Contractual Term			3 years 9 months 18 days
Weighted Average Exercise Price (in dollars per share)			$ 11.28

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Parent Company Only Financial Statements

12 Months Ended

Dec. 31, 2012

Parent Company Only Financial Statements [Abstract]

Parent Company Only Financial Statements

Note  17.  Parent Company Only Financial Statements

Condensed financial information of the parent company only is presented in the following two tables:

Balance Sheets	December 31,
	2012		2011
	(Amounts in thousands)
Assets:
Cash	$	53	$	257
Investments in subsidiaries		97,114		90,277
Other assets		5		229
Total assets	$	97,172	$	90,763
Liabilities and Equity:
Subordinated debentures	$	13,403	$	13,403
Other liabilities		132		136
Equity		83,637		77,224
Total liabilities and equity	$	97,172	$	90,763
Statements of Income	Years ended December 31,
	2012		2011
	(Amounts in thousands)
Income:
Dividends from bank subsidiary	$	996	$	1,600
Other income		87		—
Expense:
Interest on subordinated debentures		282		256
Other expenses		269		295
		551		551
Income before income taxes		532		1,049
Provision for income taxes		—		—
Equity in undistributed income of subsidiaries		6,781		6,223
Net income		7,313		7,272
Preferred stock dividend and discount accretion		1,012		1,000
Net income available to common shareholders	$	6,301	$	6,272

Statements of Cash Flows
	Years ended December 31,
	2012			2011
	(Amounts in thousands)
Cash Flows from Operating Activities
Net income	$	7,313		$	7,272
Adjustments to reconcile net income to net cash provided by operating activities:
Equity in undistributed earnings of subsidiaries		(6,781	)		(6,223	)
Changes in operating assets and liabilities:
Increase in other assets		48			(93	)
Decrease in accrued interest payable and other accrued liabilities		(4	)		(28	)
Net cash provided by operating activities		576			928
Cash Flows from Investing Activities
Net cash used in investing activities		—			—
Cash Flows from Financing Activities
Proceeds from exercise of stock options		35
Payment of dividend on preferred stock		(815	)		(815	)
Net cash used in financing activities		(780	)		(815	)
Increase/(decrease) in cash and cash equivalents		(204	)		113
Cash and Cash Equivalents, January 1,		257			144
Cash and Cash Equivalents, December 31,	$	53		$	257

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Bank Premises and Equipment (Details) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011
Property, Plant and Equipment [Line Items]
Total premises and equipment	$ 6,612	$ 6,387
Less: accumulated depreciation and amortization	(2,623)	(2,265)
Premises and equipment, net	3,989	4,122
Depreciation and amortization expense	358	366
Future minimum rental payments under operating leases [Abstract]
2013	140
2014	140
2015	140
2016	107
2017	31
Total minimum lease payments	558
Rent expense	138	125
Northfield lease [Member]
Operating Leased Assets [Line Items]
Non cancelable operating lease agreements term	5 years
Number of 5-years renewal option	1
Philadelphia lease [Member]
Operating Leased Assets [Line Items]
Non cancelable operating lease agreements term	10 years
Number of 5-years renewal option	2
Land [Member]
Property, Plant and Equipment [Line Items]
Total premises and equipment	820	820
Building and improvements [Member]
Property, Plant and Equipment [Line Items]
Estimated useful lives	12 years
Total premises and equipment	3,992	4,059
Furniture and equipment [Member]
Property, Plant and Equipment [Line Items]
Estimated useful lives	9 years 7 months 6 days
Total premises and equipment	$ 1,800	$ 1,508

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Description of Business and Summary of Significant Accounting Policies (Details) (USD $) In Thousands, except Share data, unless otherwise specified	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011
Basis of Financial Statement Presentation [Abstract]
Date of incorporation	Aug. 25, 1998
Date of commencement of operations	Jan. 28, 1999
Number of additional branch office locations	4
Ownership interest in joint venture (in hundredths)	51.00%
Loans-Nonaccrual [Abstract]
Contractual payment obligations	90 days
Loans Held for Sale [Abstract]
Percentage of guarantees for SBA loan (in hundredths)	75.00%
Income Taxes [Abstract]
Percentage of tax benefit that is being realized for settlement (in hundredths)	50.00%
Recognize interest, Related to income tax	$ 0	$ 0
Recognize penalties, Related to income tax	0	0
Segment Reporting [Abstract]
Number of Reportable Segments	1
Comprehensive Income [Abstract]
Supplemental executive retirement plan expense	198	450
Securities [Abstract]
Non-credit unrealized losses on available for sale securities with OTTI	(499)	(524)
Unrealized losses on available for sale securities without OTTI	(499)	(252)
Minimum pension liability	(244)	(268)
Tax impact	497	418
Accumulated Other Comprehensive Income (Loss), Net of Tax	(745)	(626)
Basic earnings per common share [Abstract]
Net income available to common shareholders	6,301	6,272
Average common shares outstanding (in shares)	5,379,558	5,374,561
Basic earnings per common share (in dollars per share)	$ 1.17	$ 1.17
Diluted earnings per common share [Abstract]
Net income available to common shareholders	$ 6,301	$ 6,272
Average common shares outstanding (in shares)	5,379,558	5,374,561
Dilutive potential common shares (in shares)	3,038	91,897
Total diluted average common shares outstanding (in shares)	5,382,596	5,466,458
Diluted earnings per common share (in dollars per share)	$ 1.17	$ 1.15
Common stock options [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Securities not included in the computation of diluted EPS (in shares)	353,804	387,971
Computers and software [Member]
Property, Plant and Equipment [Line Items]
Estimated useful lives	3 years
Equipment [Member] | Minimum [Member]
Property, Plant and Equipment [Line Items]
Estimated useful lives	5 years
Equipment [Member] | Maximum [Member]
Property, Plant and Equipment [Line Items]
Estimated useful lives	10 years
Building [Member]
Property, Plant and Equipment [Line Items]
Estimated useful lives	40 years

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Retirement Plans (Tables)

12 Months Ended

Dec. 31, 2012

Retirement Plans [Abstract]

Schedule of benefit obligation

The benefit obligation at December 31, 2012 and December 31, 2011 was calculated as follows:

	2012			2011
	(Amounts in thousands)
Benefit obligation, January 1	$	3,002		$	2,649
Service cost		(6	)		232
Interest cost		165			120
(Gain) loss		(24	)		1
Benefit obligation, December 31	$	3,137		$	3,002

Schedule of net periodic pension cost

The net periodic pension cost for 2012 and 2011 was calculated as follows:

	2012			2011
	(Amounts in thousands)
Service cost	$	(6	)	$	232
Interest cost		165			120
(Gain) loss		(24	)		1
Prior service cost recognized		—			—
	$	135		$	353

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Deposits (Details) (USD $)	Dec. 31, 2012	Dec. 31, 2011
Deposits, by Component, Alternative [Abstract]
Demand deposits, noninterest-bearing	$ 30,342,000	$ 31,146,000
Demand deposits, interest-bearing	21,249,000	19,307,000
Money market deposits	84,946,000	92,576,000
Savings deposits	230,621,000	213,411,000
Time deposits of $100,000 or more	109,941,000	108,598,000
Other time deposits	138,356,000	146,867,000
Brokered time deposits	21,752,000	22,950,000
Total deposits	637,207,000	634,855,000
Scheduled maturities of certificates of deposit [Abstract]
2013	195,897,000
2014	43,484,000
2015	10,350,000
2016	8,151,000
2017	12,167,000
Thereafter	0
Total	270,049,000
Deposits from related parties	$ 5,767,000	$ 6,705,000

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Parent Company Only Financial Statements (Details) (USD $)	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Assets:
Other assets	$ 15,195,000	$ 14,265,000
Total Assets	770,477,000	790,738,000
Liabilities and Equity:
Subordinated debentures	13,403,000	13,403,000
Other liabilities	5,339,000	3,982,000
Equity	83,543,000	77,273,000	70,732,000
Total liabilities and equity	770,477,000	790,738,000
Income:
Other income	87,000	0
Expense:
Total interest expense	7,424,000	9,231,000
Income before income tax expense	12,311,000	13,728,000
Provision for income taxes	4,242,000	5,524,000
Net income attributable to Company	7,313,000	7,272,000
Preferred stock dividend and discount accretion	1,012,000	1,000,000
Net income available to common shareholders	6,301,000	6,272,000
Cash Flows from Operating Activities
Net income	8,069,000	8,204,000
Changes in operating assets and liabilities:
Increase in accrued interest payable and other accrued liabilities	1,162,000	(451,000)
Net cash provided by operating activities	17,284,000	17,484,000
Cash Flows from Investing Activities
Net cash used in investing activities	(21,159,000)	(3,134,000)
Cash Flows from Financing Activities
Proceeds from issuance of preferred stock	16,288,000
Payment of dividend on preferred stock	(815,000)	(815,000)
Net cash (used in) provided by financing activities	(29,487,000)	38,250,000
Increase/(decrease) in cash and cash equivalents	(33,362,000)	52,600,000
Cash and Cash Equivalents, January 1,	110,228,000	57,628,000
Cash and Cash Equivalents, December 31,	76,866,000	110,228,000
Parent Company [Member]
Assets:
Cash	53,000	257,000
Investments in subsidiaries	97,114,000	90,116,000
Other assets	5,000	5,000
Total Assets	97,172,000	90,378,000
Liabilities and Equity:
Subordinated debentures	13,403,000	13,403,000
Other liabilities	132,000	136,000
Equity	83,637,000	77,224,000
Total liabilities and equity	97,172,000	90,763,000
Income:
Dividends from bank subsidiary	996,000	1,600,000
Expense:
Interest on subordinated debentures	282,000	256,000
Other expenses	269,000	295,000
Total interest expense	551,000	551,000
Income before income tax expense	532,000	1,049,000
Provision for income taxes	0	0
Equity in undistributed income of subsidiaries	6,781,000	6,223,000
Net income attributable to Company	7,313,000	7,272,000
Preferred stock dividend and discount accretion	1,012,000	1,000,000
Net income available to common shareholders	6,301,000	6,272,000
Cash Flows from Operating Activities
Net income	7,313,000	7,272,000
Adjustments to reconcile net income to net cash provided by operating activities:
Equity in undistributed income of subsidiaries	(6,781,000)	(6,223,000)
Changes in operating assets and liabilities:
Decrease (increase) in other assets	48,000	(93,000)
Increase in accrued interest payable and other accrued liabilities	(4,000)	(28,000)
Net cash provided by operating activities	576,000	928,000
Cash Flows from Investing Activities
Net cash used in investing activities	0	0
Cash Flows from Financing Activities
Proceeds from issuance of preferred stock	35,000	0
Payment of dividend on preferred stock	(815,000)	(815,000)
Net cash (used in) provided by financing activities	(780,000)	(815,000)
Increase/(decrease) in cash and cash equivalents	(204,000)	113,000
Cash and Cash Equivalents, January 1,	257,000	144,000
Cash and Cash Equivalents, December 31,	$ 53,000	$ 257,000

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Loans, Impaired Loans and Troubled debt restructurings (Details) (USD $)	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011
Impaired Loans [Abstract]
Period for performing appraisal of loans	12 months
Period for borrower to pledge additional security, maximum	90 days
Period of payment history, minimum	9 months
Recorded Investment [Abstract]
With no related allowance recorded	$ 46,014,000	$ 64,614,000
With an allowance recorded	41,562,000	32,565,000
Total recorded investment	87,576,000	97,179,000
Unpaid Principal Balance [Abstract]
With no related allowance recorded	50,788,000	68,398,000
With an allowance recorded	42,808,000	33,867,000
Total unpaid principal balance	93,596,000	102,265,000
Related Allowance [Abstract]
With no related allowance recorded	0	0
With an allowance recorded	1,706,000	4,859,000
Total related allowance	1,706,000	4,859,000
Average Recorded Investment	93,233,000	107,078,000
Interest Income Recognized	3,142,000	4,375,000
Troubled debt restructurings [Abstract]
Period of current payment history	6 months
Debt coverage ratio	1.25
Number of projected future quarters under review	4
Performing TDRs	40,000,000	41,100,000
Non-Performing TDRs	27,100,000	25,800,000
New Troubled Debt Restructurings [Abstract]
TDRs - Number of contracts	22	14
Pre-Modification Recorded Investment	22,938,000	15,725,000
Post-Modification Recorded Investment	22,938,000	14,167,000
Number of TDRs with subsequent payment default	21	10
Subsequent Default, Recorded Investment	22,181,000	10,964,000
Analysis of performing and nonperforming TDRs [Abstract]
Total	22,938,000	15,725,000
Extension [Member]
Analysis of performing and nonperforming TDRs [Abstract]
Total	13,808,000	0
Period of Interest Only [Member]
Analysis of performing and nonperforming TDRs [Abstract]
Total	380,000	1,505,000
Reduction in interest rate [Member]
Analysis of performing and nonperforming TDRs [Abstract]
Total	8,750,000	14,220,000
Commercial and industrial [Member]
New Troubled Debt Restructurings [Abstract]
TDRs - Number of contracts	2	1
Pre-Modification Recorded Investment	750,000	594,000
Post-Modification Recorded Investment	750,000	594,000
Number of TDRs with subsequent payment default	1	0
Subsequent Default, Recorded Investment	603,000	0
Analysis of performing and nonperforming TDRs [Abstract]
Total	750,000	594,000
Commercial and industrial [Member] | Extension [Member]
Analysis of performing and nonperforming TDRs [Abstract]
Total	500,000	0
Commercial and industrial [Member] | Period of Interest Only [Member]
Analysis of performing and nonperforming TDRs [Abstract]
Total	0	0
Commercial and industrial [Member] | Reduction in interest rate [Member]
Analysis of performing and nonperforming TDRs [Abstract]
Total	250,000	594,000
Residential Real Estate Construction [Member]
New Troubled Debt Restructurings [Abstract]
TDRs - Number of contracts	1	2
Pre-Modification Recorded Investment	415,000	2,150,000
Post-Modification Recorded Investment	415,000	959,000
Number of TDRs with subsequent payment default	1	1
Subsequent Default, Recorded Investment	1,004,000	316,000
Analysis of performing and nonperforming TDRs [Abstract]
Total	415,000	2,150,000
Residential Real Estate Construction [Member] | Extension [Member]
Analysis of performing and nonperforming TDRs [Abstract]
Total	0	0
Residential Real Estate Construction [Member] | Period of Interest Only [Member]
Analysis of performing and nonperforming TDRs [Abstract]
Total	0	0
Residential Real Estate Construction [Member] | Reduction in interest rate [Member]
Analysis of performing and nonperforming TDRs [Abstract]
Total	415,000	2,150,000
Commercial Real Estate Construction [Member]
New Troubled Debt Restructurings [Abstract]
TDRs - Number of contracts	11	0
Pre-Modification Recorded Investment	9,938,000	0
Post-Modification Recorded Investment	9,938,000	0
Number of TDRs with subsequent payment default	10	0
Subsequent Default, Recorded Investment	8,508,000	0
Analysis of performing and nonperforming TDRs [Abstract]
Total	9,938,000	0
Commercial Real Estate Construction [Member] | Extension [Member]
Analysis of performing and nonperforming TDRs [Abstract]
Total	8,008,000	0
Commercial Real Estate Construction [Member] | Period of Interest Only [Member]
Analysis of performing and nonperforming TDRs [Abstract]
Total	0	0
Commercial Real Estate Construction [Member] | Reduction in interest rate [Member]
Analysis of performing and nonperforming TDRs [Abstract]
Total	1,930,000	0
Commercial Real Estate Mortgage - Owner Occupied [Member]
New Troubled Debt Restructurings [Abstract]
TDRs - Number of contracts	1	2
Pre-Modification Recorded Investment	3,220,000	682,000
Post-Modification Recorded Investment	3,220,000	315,000
Number of TDRs with subsequent payment default	0	5
Subsequent Default, Recorded Investment	0	4,131,000
Analysis of performing and nonperforming TDRs [Abstract]
Total	3,220,000	682,000
Commercial Real Estate Mortgage - Owner Occupied [Member] | Extension [Member]
Analysis of performing and nonperforming TDRs [Abstract]
Total	3,220,000	0
Commercial Real Estate Mortgage - Owner Occupied [Member] | Period of Interest Only [Member]
Analysis of performing and nonperforming TDRs [Abstract]
Total	0	0
Commercial Real Estate Mortgage - Owner Occupied [Member] | Reduction in interest rate [Member]
Analysis of performing and nonperforming TDRs [Abstract]
Total	0	682,000
Commercial Real Estate Mortgage - Non-owner Occupied [Member]
New Troubled Debt Restructurings [Abstract]
TDRs - Number of contracts	3	3
Pre-Modification Recorded Investment	4,067,000	5,543,000
Post-Modification Recorded Investment	4,067,000	5,543,000
Number of TDRs with subsequent payment default	3	2
Subsequent Default, Recorded Investment	4,779,000	5,451,000
Analysis of performing and nonperforming TDRs [Abstract]
Total	4,067,000	5,543,000
Commercial Real Estate Mortgage - Non-owner Occupied [Member] | Extension [Member]
Analysis of performing and nonperforming TDRs [Abstract]
Total	1,156,000	0
Commercial Real Estate Mortgage - Non-owner Occupied [Member] | Period of Interest Only [Member]
Analysis of performing and nonperforming TDRs [Abstract]
Total	0	1,505,000
Commercial Real Estate Mortgage - Non-owner Occupied [Member] | Reduction in interest rate [Member]
Analysis of performing and nonperforming TDRs [Abstract]
Total	2,911,000	4,038,000
Residential Real Estate Mortgage - 1-4 Family [Member]
New Troubled Debt Restructurings [Abstract]
TDRs - Number of contracts	3	4
Pre-Modification Recorded Investment	4,168,000	6,250,000
Post-Modification Recorded Investment	4,168,000	6,250,000
Number of TDRs with subsequent payment default	5	1
Subsequent Default, Recorded Investment	4,020,000	929,000
Analysis of performing and nonperforming TDRs [Abstract]
Total	4,168,000	6,250,000
Residential Real Estate Mortgage - 1-4 Family [Member] | Extension [Member]
Analysis of performing and nonperforming TDRs [Abstract]
Total	924,000	0
Residential Real Estate Mortgage - 1-4 Family [Member] | Period of Interest Only [Member]
Analysis of performing and nonperforming TDRs [Abstract]
Total	0	0
Residential Real Estate Mortgage - 1-4 Family [Member] | Reduction in interest rate [Member]
Analysis of performing and nonperforming TDRs [Abstract]
Total	3,244,000	6,250,000
Residential Real Estate Mortgage -Multifamily [Member]
New Troubled Debt Restructurings [Abstract]
TDRs - Number of contracts	1	2
Pre-Modification Recorded Investment	380,000	506,000
Post-Modification Recorded Investment	380,000	506,000
Number of TDRs with subsequent payment default	1	0
Subsequent Default, Recorded Investment	3,267,000	0
Analysis of performing and nonperforming TDRs [Abstract]
Total	380,000	506,000
Residential Real Estate Mortgage -Multifamily [Member] | Extension [Member]
Analysis of performing and nonperforming TDRs [Abstract]
Total	0	0
Residential Real Estate Mortgage -Multifamily [Member] | Period of Interest Only [Member]
Analysis of performing and nonperforming TDRs [Abstract]
Total	380,000	0
Residential Real Estate Mortgage -Multifamily [Member] | Reduction in interest rate [Member]
Analysis of performing and nonperforming TDRs [Abstract]
Total	0	506,000
Consumer [Member]
New Troubled Debt Restructurings [Abstract]
TDRs - Number of contracts	0	0
Pre-Modification Recorded Investment	0	0
Post-Modification Recorded Investment	0	0
Number of TDRs with subsequent payment default	0	1
Subsequent Default, Recorded Investment	0	137,000
Analysis of performing and nonperforming TDRs [Abstract]
Total	0	0
Consumer [Member] | Extension [Member]
Analysis of performing and nonperforming TDRs [Abstract]
Total	0	0
Consumer [Member] | Period of Interest Only [Member]
Analysis of performing and nonperforming TDRs [Abstract]
Total	0	0
Consumer [Member] | Reduction in interest rate [Member]
Analysis of performing and nonperforming TDRs [Abstract]
Total	0	0
Commercial and industrial [Member]
Recorded Investment [Abstract]
With no related allowance recorded	248,000	603,000
With an allowance recorded	500,000	0
Total recorded investment	748,000	603,000
Unpaid Principal Balance [Abstract]
With no related allowance recorded	315,000	603,000
With an allowance recorded	500,000	0
Total unpaid principal balance	815,000	603,000
Related Allowance [Abstract]
With no related allowance recorded	0	0
With an allowance recorded	10,000	0
Total related allowance	10,000	0
Average Recorded Investment	776,000	599,000
Interest Income Recognized	18,000	25,000
Real estate construction [Member] | Residential [Member]
Recorded Investment [Abstract]
With no related allowance recorded	800,000	4,440,000
With an allowance recorded	187,000	4,170,000
Total recorded investment	987,000	8,610,000
Unpaid Principal Balance [Abstract]
With no related allowance recorded	2,126,000	5,246,000
With an allowance recorded	661,000	5,151,000
Total unpaid principal balance	2,787,000	10,397,000
Related Allowance [Abstract]
With no related allowance recorded	0	0
With an allowance recorded	24,000	1,297,000
Total related allowance	24,000	1,297,000
Average Recorded Investment	1,898,000	11,978,000
Interest Income Recognized	57,000	377,000
Real estate construction [Member] | Commercial [Member]
Recorded Investment [Abstract]
With no related allowance recorded	12,891,000	12,898,000
With an allowance recorded	1,988,000	3,329,000
Total recorded investment	14,879,000	16,227,000
Unpaid Principal Balance [Abstract]
With no related allowance recorded	12,891,000	13,118,000
With an allowance recorded	2,045,000	3,329,000
Total unpaid principal balance	14,936,000	16,447,000
Related Allowance [Abstract]
With no related allowance recorded	0	0
With an allowance recorded	96,000	380,000
Total related allowance	96,000	380,000
Average Recorded Investment	14,933,000	16,164,000
Interest Income Recognized	202,000	475,000
Real estate mortgage [Member] | Commercial - Owner Occupied [Member]
Recorded Investment [Abstract]
With no related allowance recorded	876,000	6,946,000
With an allowance recorded	5,718,000	590,000
Total recorded investment	6,594,000	7,536,000
Unpaid Principal Balance [Abstract]
With no related allowance recorded	1,031,000	6,946,000
With an allowance recorded	5,748,000	590,000
Total unpaid principal balance	6,779,000	7,536,000
Related Allowance [Abstract]
With no related allowance recorded	0	0
With an allowance recorded	216,000	23,000
Total related allowance	216,000	23,000
Average Recorded Investment	6,854,000	7,590,000
Interest Income Recognized	251,000	215,000
Real estate mortgage [Member] | Commercial - Non-owner Occupied [Member]
Recorded Investment [Abstract]
With no related allowance recorded	19,228,000	30,424,000
With an allowance recorded	29,187,000	17,820,000
Total recorded investment	48,415,000	48,244,000
Unpaid Principal Balance [Abstract]
With no related allowance recorded	22,027,000	30,852,000
With an allowance recorded	29,187,000	17,940,000
Total unpaid principal balance	51,214,000	48,792,000
Related Allowance [Abstract]
With no related allowance recorded	0	0
With an allowance recorded	1,053,000	2,526,000
Total related allowance	1,053,000	2,526,000
Average Recorded Investment	51,883,000	50,907,000
Interest Income Recognized	2,007,000	2,649,000
Real estate mortgage [Member] | Residential - 1 to 4 family [Member]
Recorded Investment [Abstract]
With no related allowance recorded	8,945,000	8,477,000
With an allowance recorded	3,605,000	3,388,000
Total recorded investment	12,550,000	11,865,000
Unpaid Principal Balance [Abstract]
With no related allowance recorded	9,372,000	10,737,000
With an allowance recorded	4,290,000	3,589,000
Total unpaid principal balance	13,662,000	14,326,000
Related Allowance [Abstract]
With no related allowance recorded	0	0
With an allowance recorded	301,000	600,000
Total related allowance	301,000	600,000
Average Recorded Investment	13,174,000	14,921,000
Interest Income Recognized	389,000	334,000
Real estate mortgage [Member] | Residential - Multifamily [Member]
Recorded Investment [Abstract]
With no related allowance recorded	2,838,000	597,000
With an allowance recorded	377,000	3,268,000
Total recorded investment	3,215,000	3,865,000
Unpaid Principal Balance [Abstract]
With no related allowance recorded	2,838,000	667,000
With an allowance recorded	377,000	3,268,000
Total unpaid principal balance	3,215,000	3,935,000
Related Allowance [Abstract]
With no related allowance recorded	0	0
With an allowance recorded	6,000	33,000
Total related allowance	6,000	33,000
Average Recorded Investment	3,526,000	4,688,000
Interest Income Recognized	216,000	288,000
Consumer [Member]
Recorded Investment [Abstract]
With no related allowance recorded	188,000	229,000
With an allowance recorded	0	0
Total recorded investment	188,000	229,000
Unpaid Principal Balance [Abstract]
With no related allowance recorded	188,000	229,000
With an allowance recorded	0	0
Total unpaid principal balance	188,000	229,000
Related Allowance [Abstract]
With no related allowance recorded	0	0
With an allowance recorded	0	0
Total related allowance	0	0
Average Recorded Investment	189,000	231,000
Interest Income Recognized	$ 2,000	$ 12,000

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Description of Business and Summary of Significant Accounting Policies

12 Months Ended

Dec. 31, 2012

Description of Business and Summary of Significant Accounting Policies [Abstract]

Description of Business and Summary of Significant Accounting Policies

Note  1.   Description of Business and Summary of Significant Accounting Policies

Description of Business:  Parke Bancorp, Inc. (the "Company") is a bank holding company headquartered in Sewell, New Jersey.  Through subsidiaries, the Company provides individuals, corporations and other businesses, and institutions with commercial and retail banking services, principally loans and deposits.  The Company was incorporated in January 2005 under the laws of the State of New Jersey for the sole purpose of becoming the holding company of Parke Bank (the "Bank").

The Bank is a commercial bank, which was incorporated on August 25, 1998, and commenced operations on January 28, 1999.  The Bank is chartered by the New Jersey Department of Banking and Insurance and insured by the Federal Deposit Insurance Corporation.  The Bank maintains its principal office at 601 Delsea Drive, Sewell, New Jersey, and four additional branch office locations; 501 Tilton Road, Northfield, New Jersey, 567 Egg Harbor Road, Washington Township, New Jersey, 67 East Jimmie Leeds Road, Galloway Township, New Jersey and 1610 Spruce Street in Philadelphia, Pennsylvania.

The accounting and financial reporting policies of the Company and Subsidiaries conform to accounting principles generally accepted in the United States of America ("GAAP") and to general practices within the banking industry.  The policies that materially affect the determination of financial position, results of operations and cash flows are summarized below.

Principles of Consolidation:  The accompanying consolidated financial statements include the accounts of Parke Bancorp, Inc. and its wholly-owned subsidiaries, Parke Bank and Parke Capital Markets, an inactive corporation. Also included are the accounts of 44 Business Capital Partners LLC, a joint venture formed in 2009 to originate and service Small Business Administration ("SBA") loans. Parke Bank has a 51% ownership interest in the joint venture. Parke Capital Trust I, Parke Capital Trust II and Parke Capital Trust III are wholly-owned subsidiaries but are not consolidated because they do not meet the requirements for consolidation under applicable accounting guidance.  All significant inter-company balances and transactions have been eliminated.

Investment Securities:  At December 31, 2012 and 2011, the Company held investment securities that would be held for indefinite periods of time, including securities that would be used as part of the Company's asset/liability management strategy and possibly sold in response to changes in interest rates, prepayments and similar factors.  These securities are classified as "available for sale" and are carried at fair value, with any temporary unrealized gains or losses reported as other comprehensive income, net of the related income tax effect.

At December 31, 2012 and 2011, the Company also reported investments in securities that were carried at cost, adjusted for amortization of premium and accretion of discount.  The Company has the intent and ability to hold these investment securities to maturity considering all reasonably foreseeable events or conditions.  These securities are classified as "held to maturity."

Declines in the fair value of individual debt securities below their cost that are deemed to be other than temporary result in write-downs of the individual securities to their fair value. Debt securities that are deemed to be other than temporarily impaired are reflected in earnings as realized losses to the extent impairment is related to credit losses. The amount of the impairment for debt securities related to other factors is recognized in other comprehensive income (loss). In evaluating other than temporary impairment losses, management considers (1) the length of time and the extent to which the fair value has been less than cost, (2) the reasons for the decline in value, (3) the financial position and access to capital of the issuer, including the current and future impact of any specific events, and (4) for fixed maturity securities, whether the Company intends to sell the security, or it is more likely than not that the Company will be required to sell the security before recovery of the cost basis, which may be maturity.

The amortization of premiums and accretion of discounts over the contractual lives of the related securities are recognized in interest income using the interest method.  Gains and losses on the sale of such securities are accounted for using the specific identification method.

Restricted Stock:  Restricted stock includes investments in the common stock of the Federal Home Loan Bank of New York ("FHLBNY") and the Atlantic Central Bankers Bank for which no market exists and, accordingly, is carried at cost. The stocks have no quoted market value and are subject to redemption restrictions. Management reviews for impairment based on the ultimate recoverability of the cost basis in the stock.The stocks' value is determined by the ultimate recoverability of the par value rather than by recognizing temporary declines. Management considers such criteria as the significance of the decline in net assets, if any, the length of time this situation has persisted and the financial performance of the issuers. In addition, any commitments by the FHLBNY to make payments required by law or regulation, the impact of legislative and regulatory changes on the customer base of the FHLBNY and the liquidity position of the FHLBNY.

Loans:  The Company makes commercial, real estate and consumer loans to customers.  A substantial portion of the loan portfolio is represented by loans in the Southern New Jersey and Philadelphia, Pennsylvania markets.  The ability of the Company's debtors to honor their contracts is dependent upon the real estate and general economic conditions in this area.  Loans that management has the intent and ability to hold for the foreseeable future or until maturity or pay-off generally are reported at their outstanding unpaid principal amount, adjusted for charge-offs, the allowance for loan losses and any unamortized deferred fees or costs on originated loans.  Interest income on loans is recognized as earned based on contractual interest rates applied to daily principal amounts outstanding.

Loans-Nonaccrual:  Loans are placed on nonaccrual status when, in management's opinion, the borrower may be unable to meet contractual payment obligations as they become due, as well as when a loan is 90 days past due, unless the loan is well secured and in the process of collection, as required by regulatory provision. Loans may be placed on nonaccrual status regardless of whether or not such loans are considered past due. When interest accrual is discontinued, all unpaid accrued interest is reversed. Interest income is subsequently recognized only to the extent cash payments are received in excess of principal due.

Troubled Debt Restructurings:  Troubled debt restructurings ("TDRs") are loans for which the Company, for legal or economic reasons related to a debtor's financial difficulties, has granted a concession to the debtor that it otherwise would not have considered. Concessions that result in the categorization of a loan as a troubled debt restructuring include:

•   Reduction (absolute or contingent) of the stated interest rate;

•   Extension of the maturity date or dates at a stated interest rate lower than the current market rate for new debt with similar risk;

•   Reduction (absolute or contingent) of the face amount or maturity amount of the debt as stated in the instrument or other agreement; or

•   Reduction (absolute or contingent) of accrued interest.

TDRs are reported as impaired loans. Interest income on TDR loans is recognized consistent with the Bank's nonaccrual loan policy stated above.

Loans Held for Sale:  Loans held for sale are the guaranteed portion of SBA loans and are carried at the lower of aggregate cost or fair value. The net amount of loan origination fees on loans sold is included in the carrying value and in the gain or loss on the sale. The Company originates loans to customers under an SBA program that generally provides for SBA guarantees of up to 75 percent of each loan.  When the sale of the guaranteed portion of an SBA loan occurs, with retained servicing, the premium received on the sale and the present value of future cash flows of the servicing assets represent gain on the sale and are recognized in income over the estimated life of the loan. Income and fees collected for servicing are credited to noninterest income, net of amortization of the related servicing asset.

Concentration of Credit Risk:  The Company's loans are generally to diversified customers in Southern New Jersey and the Philadelphia area of Pennsylvania.  Loans to general building contractors, general merchandise stores, restaurants, motels, warehouse space, and real estate ventures (including construction loans) constitute a majority of commercial loans.  The concentrations of credit by type of loan are set forth in Note 4.  Generally, loans are collateralized by assets of the borrower and are expected to be repaid from the borrower's cash flow or proceeds from the sale of selected assets of the borrower.

Loan Fees:  Loan fees and direct costs associated with loan originations are netted and deferred.  The deferred amount is recognized as an adjustment to loan interest over the term of the related loans using the interest method.  Loan brokerage fees represent commissions earned for facilitating loans between borrowers and other companies and is recorded as loan fee income. Loan fee income also includes prepayment penalties on loans.

Allowance for Loan Losses:  The allowance for loan losses is maintained through charges to the provision for loan losses in the Consolidated Statements of Income as losses are estimated to have occurred.  Loans or portions thereof that are determined to be uncollectible are charged against the allowance, and subsequent recoveries, if any, are credited to the allowance.  The allowance is an amount that management believes will be adequate to absorb estimated losses relating to specifically identified loans, as well as probable credit losses in the balance of the loan portfolio, based on an evaluation of collectability of existing loans and prior loss experience.  When evaluating the adequacy of the allowance, an assessment of the loan portfolio will typically take into consideration changes in the composition and volume of the loan portfolio, overall portfolio quality and past loss experience, review of specific problem loans, current economic conditions which may affect borrowers' ability to repay, and other factors which may warrant current recognition.  Such periodic assessments may, in management's judgment, require the Company to recognize additions or reductions to the allowance.

Various regulatory agencies periodically review the adequacy of the Company's allowance for loan losses as an integral part of their examination process.  Such agencies may require the Company to recognize additions or reductions to the allowance based on their evaluation of information available to them at the time of their examination.  It is reasonably possible that the above factors may change significantly and, therefore, affect management's determination of the allowance for loan losses in the near term.

The allowance consists of specific and general components.  The specific component relates to loans that are classified as impaired, including TDRs.  For those loans that are classified as impaired, an allowance is established when the discounted cash flows (or collateral value for collateral dependent loans or observable market price) of the impaired loan is lower than the carrying value of that loan. The general component covers non-classified loans and is based on historical charge-off experience and expected losses given the Company's internal risk rating process. Other adjustments may be made to the allowance for pools of loans after an assessment of internal or external influences on credit quality that are not reflected in the historical loss or risk rating data.

A loan is considered impaired when, based on current information and events, it is probable that the Company will be unable to collect the scheduled payments of principal or interest when due according to the contractual terms of the loan agreement.  Loans that experience insignificant payment delays and payment shortfalls generally are not classified as impaired.  Management determines the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration all of the circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrower's prior payment record, and the amount of the shortfall in relation to the principal and interest owed.  Factors considered by management when evaluating impaired loans include payment status, collateral value, and the probability of collecting scheduled principal and interest payments when due.  Impairment is measured on a loan by loan basis for commercial loans by either the present value of expected future cash flows discounted at the loans effective interest rate, the loan's obtainable market price, or the fair value of the collateral if the loan is collateral dependent.

Large groups of smaller balance homogeneous loans are collectively evaluated for impairment.  Accordingly, the Company does not separately evaluate individual consumer loans for impairment.

Other Real Estate Owned ("OREO"):  Real estate acquired through foreclosure or other proceedings is carried at fair value less estimated costs of disposal. Costs of improving OREO are capitalized to the extent that the carrying value does not exceed its fair value less estimated selling costs. Subsequent valuation adjustments, if any, are recognized as a charge against current earnings. Holding costs are charged to expense. Gains and losses on sales are recognized in noninterest income as they occur.

Interest Rate Risk:  The Company is principally engaged in the business of attracting deposits from the general public and using these deposits, together with other borrowed and brokered funds, to make commercial, commercial mortgage, residential mortgage, and consumer loans, and to invest in overnight and term investment securities.  Inherent in such activities is interest rate risk that results from differences in the maturities and repricing characteristics of these assets and liabilities.  For this reason, management regularly monitors the level of interest rate risk and the potential impact on net income.

Bank Premises and Equipment:  Bank premises and equipment are stated at cost less accumulated depreciation and amortization.  Depreciation is computed and charged to expense using the straight-line method over the estimated useful lives of the assets, generally three years for computers and software, five to ten years for equipment and forty years for buildings.  Leasehold improvements are amortized to expense over the shorter of the term of the respective lease or the estimated useful life of the improvements.

Income Taxes:  Deferred taxes are provided on a liability method whereby deferred tax assets are recognized for deductible temporary differences and operating loss carry forwards and deferred tax liabilities are recognized for taxable temporary differences.  Temporary differences are the difference

between the reported amounts of assets and liabilities and their tax bases.  Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized.  Deferred tax assets and liabilities are adjusted for the effects of changes in tax laws and rates on the date of enactment.  Realization of deferred tax assets is dependent on generating sufficient taxable income in the future.

When tax returns are filed, it is highly certain that some positions taken would be sustained upon examination by the taxing authorities, while others are subject to uncertainty about the merits of the position taken or the amount of the position that ultimately would be sustained. The benefit of a tax position is recognized in the financial statements in the period during which, based on all available evidence, management believes it is more-likely-than not that the position will be sustained upon examination, including the resolution of appeals or litigation processes, if any. The evaluation of a tax position taken is considered by itself and not offset or aggregated with other positions. Tax positions that meet the more likely-than not recognition threshold are measured as the largest amount of tax benefit that is more than 50 percent likely of being realized upon settlement with the applicable taxing authority. The portion of benefits associated with tax positions taken that exceeds the amount measured as described above is reflected as a liability for unrecognized tax benefits in the accompanying balance sheet along with any associated interest and penalties that would be payable to the taxing authorities upon examination.

Interest and penalties associated with unrecognized tax benefits would be recognized in income tax expense on the income statement.

The Company did not recognize any interest or penalties related to income tax during the years ended December 31, 2012 or 2011.  The Company does not have an accrual for uncertain tax positions as of December 31, 2012 or 2011, as deductions taken and benefits accrued are based on widely understood administrative practices and procedures and are based on clear and unambiguous tax law.  Tax returns for all years 2009 and thereafter are subject to further examination by tax authorities, with the exception of the State of New Jersey for which tax returns for all years 2008 and thereafter are subject to further examination.

Use of Estimates:  The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and reported amounts of revenues and expenses during the reporting period.  Actual results could differ from those estimates.  Material estimates that are particularly susceptible to significant change in the near term include the allowance for loan losses, other than temporary impairment losses on investment securities, the valuation of deferred income taxes, servicing assets and carrying value of OREO.

Segment Reporting:  The Company operates one reportable segment of business, "community banking".  Through its community banking segment, the Company provides a broad range of retail and community banking services.

Reclassifications:  Certain items in the 2011 financial statements have been reclassified to conform to the 2012 presentation. Such reclassifications have no impact on prior year earnings and shareholders equity.

Comprehensive Income:  Comprehensive income consists of net income and other gains and losses affecting shareholders' equity that, under GAAP, are excluded from net income, including unrealized gains and losses on available for sale securities and gains or losses, prior service costs or credits, and transition assets or obligations associated with pension or other postretirement benefits that have not been recognized as components of net periodic benefit cost.

The Company recognizes the overfunded or underfunded status of a defined benefit postretirement plan as an asset or a liability in the consolidated balance sheet and changes in that funded status through comprehensive income in the year the changes occur. The accounting guidance related to compensation-retirement benefits also requires an employer to measure the funded status of a plan as of the date of the employer's year-end statement of financial position.  The Company has recorded an expense for the unfunded status of $198 thousand and $450 thousand for the years ended December 31, 2012 and 2011, respectively, relating to a Supplemental Executive Retirement Plan ("SERP") (Note 11).

Accumulated other comprehensive loss consisted of the following at December 31, 2012 and 2011:

	2012			2011
	(Amounts in thousands)
Securities
Non-credit unrealized losses on available for sale securities with OTTI	$	(499	)	$	(524	)
Unrealized losses on available for sale securities without OTTI		(499	)		(252	)
Minimum pension liability		(244	)		(268	)
Tax impact		497			418
	$	(745	)	$	(626	)

Earnings Per Common Share:  Basic earnings per common share is computed by dividing net income available to common shareholders by the weighted average number of common shares outstanding during the period.  Diluted earnings per common share considers common stock equivalents (when dilutive) outstanding during the period such as options and warrants outstanding.  To the extent that stock equivalents are anti-dilutive, they have been excluded from the earnings per share calculation. Both basic and diluted earnings per share computations give retroactive effect to a stock dividend declared and paid in 2012 and 2011 (Note 13).  Earnings per common share have been computed based on the following for 2012 and 2011:

	2012		2011
	(Amounts in thousands, except share data)
Basic earnings per common share
Net income available to common shareholders	$	6,301	$	6,272
Average common shares outstanding		5,379,558		5,374,561
Basic earnings per common share	$	1.17	$	1.17
Diluted earnings per common share
Net income available to common shareholders	$	6,301	$	6,272
Average common shares outstanding		5,379,558		5,374,561
Dilutive potential common shares		3,038		91,897
Total diluted average common shares outstanding		5,382,596		5,466,458
Diluted earnings per common share	$	1.17	$	1.15

For 2012 and 2011, options to purchase 301,553 shares and 335,214 shares, respectively, were outstanding but were not included in the computation of diluted EPS because the options' common stock equivalents were anti-dilutive.

Statement of Cash Flows:  Cash and cash equivalents include cash and due from financial institutions and federal funds sold.  For the purposes of the statement of cash flows, changes in loans and deposits are shown on a net basis.

Recently Issued Accounting Pronouncements:

In May 2011, FASB issued ASU 2011-04, Fair Value Measurement (Topic 820) - Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in U.S. GAAP and IFRSs. This ASU does not extend the use of fair value accounting, but provides guidance on how it should be applied where its use is already required or permitted. This guidance is to be applied prospectively and is effective during interim and annual periods beginning after December 15, 2011. Adoption of this guidance has not had a material impact on results of operations or financial condition.

In June 2011, the FASB issued guidance to improve the comparability, consistency and transparency of financial reporting and to increase the prominence of items reported in other comprehensive income. The amendments require that all non-owner changes in stockholders' equity be presented either in a single continuous statement of comprehensive income or in two separate but consecutive statements. The amendments do not change the items that must be reported in other comprehensive income or when an item of other comprehensive income must be reclassified to net income. The amendments are effective for interim and annual periods beginning after December 15, 2011 with retrospective application. The Company adopted the accounting standard on January 1, 2012, as required, with no material impact on its results of operations or financial position.

In April 2011, the FASB issued ASU No. 2011-03, Reconsideration of Effective Control for Repurchase Agreements. This ASU amends guidance clarifying when the Bank can recognize a sale upon the transfer of financial assets subject to a repurchase agreement. That determination is based, in part, on whether the Bank has maintained effective control over the transferred financial assets. Under the amended guidance, the FASB concluded that the assessment of effective control should focus on a transferor's contractual rights and obligations with respect to transferred financial assets, not on whether the transferor has the practical ability to perform in accordance with those rights or obligations. The amended guidance was effective for transactions that occur in interim and annual periods beginning on or after December 15, 2011. The Bank accounts for all of its existing repurchase agreements as secured borrowings and therefore, the adoption of this amended guidance on January 1, 2012 did not have a material impact on the Company's Consolidated Financial Statements.

In December 2011, the FASB issued ASU No. 2011-11, Balance Sheet (Topic 210): Disclosures about Offsetting Assets and Liabilities.This ASU will require companies to disclose gross and net information about both instruments and transactions eligible for offset in the statement of financial position and instruments and transactions subject to an agreement similar to a master netting arrangement. The scope will include derivatives, sale and repurchase agreements and reverse sale and repurchase agreements, and securities borrowing and securities lending arrangements. The amendments are effective for interim and annual periods beginning on or after January 1, 2013. The amendment is not expected to impact the Company's financial condition, results of operations or cash flows.

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Investment Securities (Details) (USD $)	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011
Available for sale [Abstract]
Amortized cost	$ 20,338,000	$ 23,293,000
Gross unrealized gains	622,000	885,000
Gross unrealized losses	1,121,000	1,137,000
Other than temporary impairments in OCI	499,000	524,000
Total available-for-sale	19,340,000	22,517,000
Held to maturity [Abstract]
Held-to-maturity Securities, Fair Value	2,239,000	2,080,000
Available for sale, Amortized Cost [Abstract]
Due within one year	0
Due after one year through five years	0
Due after five years through ten years	2,958,000
Due after ten years	7,062,000
Residential mortgage-backed securities and collateralized mortgage obligations	13,276,000
Total available-for-sale	20,338,000
Available for sale, Fair Value [Abstract]
Due within one year	0
Due after one year through five years	0
Due after five years through ten years	3,001,000
Due after ten years	5,467,000
Residential mortgage-backed securities and collateralized mortgage obligations	13,873,000
Total available-for-sale	19,340,000	22,517,000
Held to maturity, Amortized Cost [Abstract]
Due within one year	0
Due after one year through five years	0
Due after five years through ten years	0
Due after ten years	2,066,000
Total held to maturity	2,066,000
Held to maturity, Fair Value [Abstract]
Due within one year	0
Due after one year through five years	0
Due after five years through ten years	0
Due after ten years	2,239,000
Total held to maturity	2,239,000
Number of security sold during period		1
Investment security sold, carrying value	0	500,000
Gain on sale of investments security		1,000
Carrying value of securities pledged as collateral for borrowed funds	10,300,000	8,900,000
Carrying value of securities pledged to secure public deposits	4,200,000	8,400,000
Available for sale [Abstract]
Less Than 12 Months, Fair Value	0	0
Less Than 12 Months, Unrealized Losses	0	0
12 Months or Greater, Fair value	3,629,000	4,113,000
12 Months or Greater, Unrealized Losses	1,121,000	1,137,000
Total, Fair Value	3,629,000	4,113,000
Total, Unrealized Losses	1,121,000	1,137,000
Collateralized Debt Obligations [Abstract]
Maturity period of trust preferred securities	30 years
Changes in credit loss component of credit-impaired debt securities [Roll Forward]
Beginning balance	1,950,000	2,657,000
Initial credit impairment	0	0
Subsequent credit impairments	0	129,000
Reductions for amounts recognized in earnings due to intent or requirement to sell	0	0
Reductions for securities sold	0	0
Reductions for securities deemed worthless	(731,000)	(836,000)
Reductions for increases in cash flows expected to be collected	0	0
Ending balance	1,219,000	1,950,000
Available for sale securities [Abstract]
Realized gains	0	1,000
Realized (losses)	0	0
Other than temporary impairment	0	(130,000)
Total available-for-sale securities	0	(129,000)
Held to maturity securities [Abstract]
Realized gains	0	0
Realized (losses)	0	0
Other than temporary impairment	0	0
Total held-to-maturity securities	0	0
U.S. Government sponsored entities [Member]
Available for sale [Abstract]
Amortized cost	7,000	1,006,000
Gross unrealized gains	0	5,000
Gross unrealized losses	0	0
Other than temporary impairments in OCI	0	0
Total available-for-sale	7,000	1,011,000
Available for sale, Fair Value [Abstract]
Total available-for-sale	7,000	1,011,000
Corporate debt obligations [Member]
Available for sale [Abstract]
Amortized cost	1,500,000	1,500,000
Gross unrealized gains	24,000	43,000
Gross unrealized losses	0	57,000
Other than temporary impairments in OCI	0	0
Total available-for-sale	1,524,000	1,486,000
Available for sale, Fair Value [Abstract]
Total available-for-sale	1,524,000	1,486,000
Available for sale [Abstract]
Less Than 12 Months, Fair Value		0
Less Than 12 Months, Unrealized Losses		0
12 Months or Greater, Fair value		443,000
12 Months or Greater, Unrealized Losses		57,000
Total, Fair Value		443,000
Total, Unrealized Losses		57,000
Residential mortgage-backed securities [Member]
Available for sale [Abstract]
Amortized cost	12,359,000	13,697,000
Gross unrealized gains	540,000	764,000
Gross unrealized losses	0	0
Other than temporary impairments in OCI	0	0
Total available-for-sale	12,899,000	14,461,000
Available for sale, Fair Value [Abstract]
Total available-for-sale	12,899,000	14,461,000
Collateralized mortgage obligations [Member]
Available for sale [Abstract]
Amortized cost	916,000	1,534,000
Gross unrealized gains	58,000	73,000
Gross unrealized losses	0	0
Other than temporary impairments in OCI	0	13,000
Total available-for-sale	974,000	1,594,000
Available for sale, Fair Value [Abstract]
Total available-for-sale	974,000	1,594,000
Collateralized debt obligations [Member]
Available for sale [Abstract]
Amortized cost	5,556,000	5,556,000
Gross unrealized gains	0	0
Gross unrealized losses	1,121,000	1,080,000
Other than temporary impairments in OCI	499,000	511,000
Total available-for-sale	3,936,000	3,965,000
Available for sale, Fair Value [Abstract]
Total available-for-sale	3,936,000	3,965,000
Available for sale [Abstract]
Less Than 12 Months, Fair Value	0	0
Less Than 12 Months, Unrealized Losses	0	0
12 Months or Greater, Fair value	3,629,000	3,670,000
12 Months or Greater, Unrealized Losses	1,121,000	1,080,000
Total, Fair Value	3,629,000	3,670,000
Total, Unrealized Losses	1,121,000	1,080,000
Collateralized Debt Obligations [Abstract]
Number of securities issued	3
Unrealized loss on securities	3,600,000
Unrealized loss (in hundredths)	30.00%
Period the securities become callable by issuer, minimum	5 years
States and political subdivisions [Member]
Held to maturity [Abstract]
Amortized cost	2,066,000	2,032,000
Gross unrealized gains	173,000	87,000
Gross unrealized losses	0	39,000
Other than temporary impairments in OCI	0	0
Held-to-maturity Securities, Fair Value	2,239,000	2,080,000
Held to maturity [Abstract]
Less Than 12 Months, Fair Value	0	758,000
Less Than 12 Months, Unrealized Losses	0	39,000
12 Months or Greater, Fair value	0	0
12 Months or Greater, Unrealized Losses	0	0
Total, Fair Value	0	758,000
Total, Unrealized Losses	$ 0	$ 39,000
Trust preferred securities [Member]
Collateralized Debt Obligations [Abstract]
Period the securities become callable by issuer, minimum	5 years

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Investment Securities (Tables)

12 Months Ended

Dec. 31, 2012

Investment Securities [Abstract]

Summary of Investments in Available-for-sale and Held-to-maturity Securities

The following is a summary of the Company's investment in available for sale and held to maturity securities as of December 31, 2012 and 2011: 

As of December 31, 2012	Amortized cost		Gross unrealized gains		Gross unrealized losses		Other than temporary impairments in OCI		Fair value
Available for sale:	(Amounts in thousands)
U.S. Government sponsored entities	$	7	$	—	$	—	$	—	$	7
Corporate debt obligations		1,500		24		—		—		1,524
Residential mortgage-backed securities		12,359		540		—		—		12,899
Collateralized mortgage obligations		916		58		—		—		974
Collateralized debt obligations		5,556		—		1,121		499		3,936
Total available for sale	$	20,338	$	622	$	1,121	$	499	$	19,340
Held to maturity:
States and political subdivisions	$	2,066	$	173	$	—	$	—	$	2,239

 

As of December 31, 2011	Amortized cost		Gross unrealized gains		Gross unrealized losses		Other than temporary impairments in OCI		Fair value
Available for sale:	(Amounts in thousands)
U.S. Government sponsored entities	$	1,006	$	5	$	—	$	—	$	1,011
Corporate debt obligations		1,500		43		57		—		1,486
Residential mortgage-backed securities		13,697		764		—		—		14,461
Collateralized mortgage obligations		1,534		73		—		13		1,594
Collateralized debt obligations		5,556		—		1,080		511		3,965
Total available for sale	$	23,293	$	885	$	1,137	$	524	$	22,517
Held to maturity:
States and political subdivisions	$	2,032	$	87	$	39	$	—	$	2,080

Investments Classified by Contractual Maturity

The amortized cost and fair value of debt securities classified as available for sale and held to maturity, by contractual maturity, as of December 31, 2012, are as follows:

	Amortized Cost		Fair Value
	(Amounts in thousands)
Available for sale:
Due within one year	$	—	$	—
Due after one year through five years		—		—
Due after five years through ten years		2,958		3,001
Due after ten years		7,062		5,467
Residential mortgage-backed securities and collateralized mortgage obligations		10,318		10,872
Total available for sale	$	20,338	$	19,340

Held to maturity:
Due within one year	$	—	$	—
Due after one year through five years		—		—
Due after five years through ten years		—		—
Due after ten years		2,066		2,239
Total held to maturity	$	2,066	$	2,239

Gross Unrealized Losses and Fair Value of Investments with Continuous Unrealized Loss Position

The following tables show the gross unrealized losses and fair value of the Company's investments with unrealized losses that are not deemed to be other than temporarily impaired ("OTTI"), aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, at December 31, 2012 and December 31, 2011:

As of December 31, 2012	Less Than 12 Months				12 Months or Greater				Total
Description of Securities	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
	(Amounts in thousands)
Available for sale:
Collateralized debt obligations		—		—		3,629		1,121		3,629		1,121
Total available for sale	$	—	$	—	$	3,629	$	1,121	$	3,629	$	1,121
Held to maturity:
States and political subdivisions	$	—	$	—	$	—	$	—	$	—	$	—

As of December 31, 2011	Less Than 12 Months				12 Months or Greater				Total
Description of Securities	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
	(Amounts in thousands)
Available for sale:
Corporate debt obligations		—		—		443		57		443		57
Collateralized debt obligations		—		—		3,670		1,080		3,670		1,080
Total available for sale	$	—	$	—	$	4,113	$	1,137	$	4,113	$	1,137
Held to maturity:
States and political subdivisions	$	758	$	39	$	—	$	—	$	758	$	39

Changes in Credit Loss Component of Credit-impaired Debt Securities

The following table presents a roll-forward of the credit loss component of the amortized cost of debt securities that we have written down for OTTI and the credit component of the loss that is recognized in earnings. OTTI recognized in earnings for credit-impaired debt securities is presented as additions in two components based upon whether the current period is the first time the debt security was credit-impaired (initial credit impairment) or is not the first time the debt security was credit impaired (subsequent credit impairments). The credit loss component is reduced if we sell, intend to sell or believe we will be required to sell previously credit-impaired debt securities. Additionally, the credit loss component is reduced if we receive cash flows in excess of what we expected to receive over the remaining life of the credit-impaired debt security, the security matures or is fully written down. Changes in the credit loss component of credit-impaired debt securities were as follows for 2012 and 2011.

	2012			2011
	(Amounts in thousands)
Beginning balance	$	1,950		$	2,657
Initial credit impairment		—			—
Subsequent credit impairments		—			129
Reductions for amounts recognized in earnings due to intent or requirement to sell		—			—
Reductions for securities sold		—			—
Reductions for securities deemed worthless(1)		(731	)		(836	)
Reductions for increases in cash flows expected to be collected		—			—
Ending balance	$	1,219		$	1,950

Summary of Investment Gains and Losses

A summary of investment gains and losses recognized in income during the years ended December 31, 2012 and 2011 are as follows:

	2012		2011
	(Amounts in thousands)
Available for sale securities:
Realized gains	$	—	$	1
Realized (losses)		—		—
Other than temporary impairment		—		(130	)
Total available for sale securities	$	—	$	(129	)
Held to maturity securities:
Realized gains	$	—	$	—
Realized (losses)		—		—
Other than temporary impairment		—		—
Total held to maturity securities	$	—	$	—

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Description of Business and Summary of Significant Accounting Policies (Tables)

12 Months Ended

Dec. 31, 2012

Description of Business and Summary of Significant Accounting Policies [Abstract]

Accumulated other comprehensive loss

Accumulated other comprehensive loss consisted of the following at December 31, 2012 and 2011:

	2012			2011
	(Amounts in thousands)
Securities
Non-credit unrealized losses on available for sale securities with OTTI	$	(499	)	$	(524	)
Unrealized losses on available for sale securities without OTTI		(499	)		(252	)
Minimum pension liability		(244	)		(268	)
Tax impact		497			418
	$	(745	)	$	(626	)

Computation of earnings per common share

Earnings Per Common Share:  Basic earnings per common share is computed by dividing net income available to common shareholders by the weighted average number of common shares outstanding during the period.  Diluted earnings per common share considers common stock equivalents (when dilutive) outstanding during the period such as options and warrants outstanding.  To the extent that stock equivalents are anti-dilutive, they have been excluded from the earnings per share calculation. Both basic and diluted earnings per share computations give retroactive effect to a stock dividend declared and paid in 2012 and 2011 (Note 13).  Earnings per common share have been computed based on the following for 2012 and 2011:

	2012		2011
	(Amounts in thousands, except share data)
Basic earnings per common share
Net income available to common shareholders	$	6,301	$	6,272
Average common shares outstanding		5,379,558		5,374,561
Basic earnings per common share	$	1.17	$	1.17
Diluted earnings per common share
Net income available to common shareholders	$	6,301	$	6,272
Average common shares outstanding		5,379,558		5,374,561
Dilutive potential common shares		3,038		91,897
Total diluted average common shares outstanding		5,382,596		5,466,458
Diluted earnings per common share	$	1.17	$	1.15

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Regulatory Matters (Details) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2012	Dec. 31, 2011
Parke Bancorp Inc. [Member]
Total Risk Based Capital (to Risk Weighted Assets) [Abstract]
Actual, Amount	$ 105,640	$ 98,992
For Capital Adequacy Purposes, Amount	51,998	51,209
To be Well-Capitalized Under Prompt Corrective Action Provisions, Amount
Tier 1 Capital (to Risk Weighted Assets) [Abstract]
Actual, Amount	97,382	90,851
For Capital Adequacy Purposes, Amount	25,999	25,604
To be Well-Capitalized Under Prompt Corrective Action Provisions, Amount
Total Risk Based Capital and Tier 1 Capital (to Risk Weighted Assets) [Abstract]
Total Risk Based Capital, Actual, Ratio (in hundredths)	16.25%	15.50%
Total Risk Based Capital, For Capital Adequacy Purposes, Ratio (in hundredths)	8.00%	8.00%
Tier 1 Capital, Actual, Ratio (in hundredths)	14.98%	14.20%
Tier 1 Capital, For Capital Adequacy Purposes, Ratio (in hundredths)	4.00%	4.00%
Tier 1 Capital (to Average Assets) [Abstract]
Actual, Amount	97,382	90,851
For Capital Adequacy Purposes, Amount	30,917	30,122
To be Well-Capitalized Under Prompt Corrective Action Provisions, Amount
Tier 1 Capital (to Average Assets) [Abstract]
Actual, Ratio (in hundredths)	12.60%	12.10%
For Capital Adequacy Purposes, Ratio (in hundredths)	4.00%	4.00%
Parke Bank [Member]
Total Risk Based Capital (to Risk Weighted Assets) [Abstract]
Actual, Amount	105,714	98,817
For Capital Adequacy Purposes, Amount	51,998	51,208
To be Well-Capitalized Under Prompt Corrective Action Provisions, Amount	64,998	64,010
Tier 1 Capital (to Risk Weighted Assets) [Abstract]
Actual, Amount	97,456	90,676
For Capital Adequacy Purposes, Amount	25,999	25,604
To be Well-Capitalized Under Prompt Corrective Action Provisions, Amount	38,999	38,406
Total Risk Based Capital and Tier 1 Capital (to Risk Weighted Assets) [Abstract]
Total Risk Based Capital, Actual, Ratio (in hundredths)	16.26%	15.40%
Total Risk Based Capital, For Capital Adequacy Purposes, Ratio (in hundredths)	8.00%	8.00%
Total Risk Based Capital, To be Well-Capitalized Under Prompt Corrective Action Provisions, Ratio (in hundredths)	10.00%	10.00%
Tier 1 Capital, Actual, Ratio (in hundredths)	14.99%	14.20%
Tier 1 Capital, For Capital Adequacy Purposes, Ratio (in hundredths)	4.00%	4.00%
Tier 1 Capital, To be Well-Capitalized Under Prompt Corrective Action Provisions, Ratio (in hundredths)	6.00%	6.00%
Tier 1 Capital (to Average Assets) [Abstract]
Actual, Amount	97,456	90,676
For Capital Adequacy Purposes, Amount	30,917	30,122
To be Well-Capitalized Under Prompt Corrective Action Provisions, Amount	$ 38,646	$ 37,652
Tier 1 Capital (to Average Assets) [Abstract]
Actual, Ratio (in hundredths)	12.61%	12.00%
For Capital Adequacy Purposes, Ratio (in hundredths)	4.00%	4.00%
To be Well-Capitalized Under Prompt Corrective Action Provisions, Ratio (in hundredths)	5.00%	5.00%

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Loans (Details) (USD $)	Dec. 31, 2012	Dec. 31, 2011
Portfolio of loans outstanding [Abstract]
Loans Amount	$ 629,712,000	$ 625,117,000
Percentage of Total Loans (in hundredths)	100.00%	100.00%
Development and construction loans with interest reserves	864,000	14,600,000
Loans pledged	100,900,000	154,200,000
Loan Origination/Risk Management [Abstract]
Outstanding principal balance (in hundredths)	41.00%
Percentage of loan-to-value (in hundredths)	80.00%
Maximum concentration of loan to single industry (in hundredths)	10.00%
Commercial and industrial [Member]
Portfolio of loans outstanding [Abstract]
Loans Amount	21,925,000	24,136,000
Percentage of Total Loans (in hundredths)	3.50%	3.90%
Real estate construction [Member] | Residential [Member]
Portfolio of loans outstanding [Abstract]
Loans Amount	7,331,000	21,287,000
Percentage of Total Loans (in hundredths)	1.20%	3.40%
Real estate construction [Member] | Commercial [Member]
Portfolio of loans outstanding [Abstract]
Loans Amount	41,875,000	50,361,000
Percentage of Total Loans (in hundredths)	6.60%	8.10%
Real estate mortgage [Member] | Commercial - Owner Occupied [Member]
Portfolio of loans outstanding [Abstract]
Loans Amount	157,616,000	147,449,000
Percentage of Total Loans (in hundredths)	25.00%	23.60%
Real estate mortgage [Member] | Commercial - Non-owner Occupied [Member]
Portfolio of loans outstanding [Abstract]
Loans Amount	221,731,000	204,216,000
Percentage of Total Loans (in hundredths)	35.20%	32.60%
Real estate mortgage [Member] | Residential - 1 to 4 family [Member]
Portfolio of loans outstanding [Abstract]
Loans Amount	140,164,000	138,768,000
Percentage of Total Loans (in hundredths)	22.30%	22.20%
Real estate mortgage [Member] | Residential - Multifamily [Member]
Portfolio of loans outstanding [Abstract]
Loans Amount	21,181,000	20,126,000
Percentage of Total Loans (in hundredths)	3.40%	3.20%
Consumer [Member]
Portfolio of loans outstanding [Abstract]
Loans Amount	$ 17,889,000	$ 18,774,000
Percentage of Total Loans (in hundredths)	2.80%	3.20%

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Loans (Tables)

12 Months Ended

Dec. 31, 2012

Loans [Abstract]

Portfolio of Loans Outstanding

The portfolio of loans outstanding consists of:

	December 31, 2012					December 31, 2011
	Amount		Percentage of Total Loans			Amount		Percentage of Total Loans
	(Amounts in thousands)
Commercial and Industrial	$	21,925		3.5	%	$	24,136		3.9	%
Real Estate Construction:
Residential		7,331		1.2			21,287		3.4
Commercial		41,875		6.6			50,361		8.1
Real Estate Mortgage:
Commercial – Owner Occupied		157,616		25.0			147,449		23.6
Commercial – Non-owner Occupied		221,731		35.2			204,216		32.6
Residential – 1 to 4 Family		140,164		22.3			138,768		22.2
Residential – Multifamily		21,181		3.4			20,126		3.2
Consumer		17,889		2.8			18,774		3.0
Total Loans	$	629,712		100.0	%	$	625,117		100.0	%

Analysis of Loans to Related Parties

An analysis of the activity of such related party loans for 2012 and 2011 is as follows:

	2012			2011
	(Amounts in thousands)
Balance, beginning of year	$	22,049		$	24,023
Advances		1,970			248
Less: repayments		(388	)		(2,222	)
Less: adjustments		(7,027	)		—
Balance, end of year	$	16,606		$	22,049

Age Analysis of Past Due Loans by Class

An age analysis of past due loans by class follows:

December 31, 2012	30-59 Days Past Due			60-89 Days Past Due			Greater than 90 Days and Not Accruing			Total Past Due			Current		Total Loans			Loans > 90 Days and Accruing
	(Amounts in thousands)
Commercial and Industrial	$	—	$		—	$		248	$		248	$		21,677	$	21,925	$		—
Real Estate Construction:
Residential		—			—			799			799			6,532		7,331			—
Commercial		—			—			12,958			12,958			28,917		41,875			—
Real Estate Mortgage:
Commercial – Owner Occupied		—			—			1,218			1,218			156,398		157,616			—
Commercial – Non-owner Occupied		6,439			—			19,228			25,667			196,064		221,731			—
Residential – 1 to 4 Family		1,703			169			10,072			11,944			128,220		140,164			—
Residential – Multifamily		—			—			2,838			2,838			18,343		21,181			—
Consumer		71			49			188			308			17,581		17,889			—
Total Loans	$	8,213	$		218	$		47,549	$		55,980	$		573,732	$	629,712	$		—

December 31, 2011	30-59 Days Past Due			60-89 Days Past Due			Greater than 90 Days and Not Accruing			Total Past Due			Current		Total Loans			Loans > 90 Days and Accruing
	(Amounts in thousands)
Commercial and Industrial	$	603	$		—	$		—	$		603	$		23,533	$	24,136	$		—
Real Estate Construction:
Residential		350			—			5,265			5,615			15,672		21,287			—
Commercial		—			—			7,703			7,703			42,658		50,361			—
Real Estate Mortgage:
Commercial – Owner Occupied		1,358			—			4,797			6,155			141,294		147,449			—
Commercial – Non-owner Occupied		1,574			—			18,132			19,706			184,510		204,216			—
Residential – 1 to 4 Family		2,587			—			7,691			10,278			128,490		138,768			—
Residential – Multifamily		—			—			597			597			19,529		20,126			—
Consumer		—			—			274			274			18,500		18,774			—
Total Loans	$	6,472	$		—	$		44,459	$		50,931	$		574,186	$	625,117	$		—

Impaired Loans

Impaired loans are set forth in the following tables.

December 31, 2012	Recorded Investment		Unpaid Principal Balance		Related Allowance
	(Amounts in thousands)
With no related allowance recorded:
Commercial and Industrial	$	248	$	315	$	—
Real Estate Construction:
Residential		800		2,126		—
Commercial		12,891		12,891		—
Real Estate Mortgage:
Commercial – Owner Occupied		876		1,031		—
Commercial – Non-owner Occupied		19,228		22,027		—
Residential – 1 to 4 Family		8,945		9,372		—
Residential – Multifamily		2,838		2,838		—
Consumer		188		188		—
		46,014		50,788		—
With an allowance recorded:
Commercial and Industrial		500		500		10
Real Estate Construction:
Residential		187		661		24
Commercial		1,988		2,045		96
Real Estate Mortgage:
Commercial – Owner Occupied		5,718		5,748		216
Commercial – Non-owner Occupied		29,187		29,187		1,053
Residential – 1 to 4 Family		3,605		4,290		301
Residential – Multifamily		377		377		6
Consumer		—		—		—
		41,562		42,808		1,706
Total:
Commercial and Industrial		748		815		10
Real Estate Construction:
Residential		987		2,787		24
Commercial		14,879		14,936		96
Real Estate Mortgage:
Commercial – Owner Occupied		6,594		6,779		216
Commercial – Non-owner Occupied		48,415		51,214		1,053
Residential – 1 to 4 Family		12,550		13,662		301
Residential – Multifamily		3,215		3,215		6
Consumer		188		188		—
	$	87,576	$	93,596	$	1,706

December 31, 2011	Recorded Investment		Unpaid Principal Balance		Related Allowance
	(Amounts in thousands)
With no related allowance recorded:
Commercial and Industrial	$	603	$	603	$	—
Real Estate Construction:
Residential		4,440		5,246		—
Commercial		12,898		13,118		—
Real Estate Mortgage:
Commercial – Owner Occupied		6,946		6,946		—
Commercial – Non-owner Occupied		30,424		30,852		—
Residential – 1 to 4 Family		8,477		10,737		—
Residential – Multifamily		597		667		—
Consumer		229		229		—
		64,614		68,398		—
With an allowance recorded:
Commercial and Industrial		—		—		—
Real Estate Construction:
Residential		4,170		5,151		1,297
Commercial		3,329		3,329		380
Real Estate Mortgage:
Commercial – Owner Occupied		590		590		23
Commercial – Non-owner Occupied		17,820		17,940		2,526
Residential – 1 to 4 Family		3,388		3,589		600
Residential – Multifamily		3,268		3,268		33
Consumer		—		—		—
		32,565		33,867		4,859
Total:
Commercial and Industrial		603		603		—
Real Estate Construction:
Residential		8,610		10,397		1,297
Commercial		16,227		16,447		380
Real Estate Mortgage:
Commercial – Owner Occupied		7,536		7,536		23
Commercial – Non-owner Occupied		48,244		48,792		2,526
Residential – 1 to 4 Family		11,865		14,326		600
Residential – Multifamily		3,865		3,935		33
Consumer		229		229		—
	$	97,179	$	102,265	$	4,859

The following table presents by loan portfolio class, the average recorded investment and interest income recognized on impaired loans for the years ended December 31, 2012 and 2011:

	Year Ended December 31,
	2012				2011
	Average Recorded Investment		Interest Income Recognized		Average Recorded Investment		Interest Income Recognized
	(Amounts in thousands)
Commercial and Industrial	$	776	$	18	$	599	$	25
Real Estate Construction:
Residential		1,898		57		11,978		377
Commercial		14,933		202		16,164		475
Real Estate Mortgage:
Commercial – Owner Occupied		6,854		251		7,590		215
Commercial – Non-owner Occupied		51,883		2,007		50,907		2,649
Residential – 1 to 4 Family		13,174		389		14,921		334
Residential – Multifamily		3,526		216		4,688		288
Consumer		189		2		231		12
Total	$	93,233	$	3,142	$	107,078	$	4,375

New TDRs and TDR Default Information

The following two tables detail loans modified during the years ended December 31, 2012 and 2011, including the number of modifications, the recorded investment both pre and post modification and the nature of the modifications made.

	2012					2011
	Number of Contracts	Pre-Modification Outstanding Recorded Investment		Post-Modification Outstanding Recorded Investment		Number of Contracts	Pre-Modification Outstanding Recorded Investment		Post-Modification Outstanding Recorded Investment
	(Amounts in thousands)
Commercial and Industrial	2	$	750	$	750	1	$	594	$	594
Construction:
Residential	1		415		415	2		2,150		959
Commercial	11		9,938		9,938	—		—		—
Real Estate Mortgage:
Commercial – Owner Occupied	1		3,220		3,220	2		682		315
Commercial – Non-owner Occupied	3		4,067		4,067	3		5,543		5,543
Residential – 1-4 Family	3		4,168		4,168	4		6,250		6,250
Residential – Multifamily	1		380		380	2		506		506
Consumer	—		—		—	—		—		—
Total	22	$	22,938	$	22,938	14	$	15,725	$	14,167

The following table shows loans that were modified and deemed TDRs that subsequently defaulted during 2012 and 2011.

	2012			2011
	Number of Contracts	Recorded Investment		Number of Contracts	Recorded Investment
	(Amounts in thousands)
Commercial and Industrial	1	$	603	—	$	—
Real Estate Construction:
Residential	1		1,004	1		316
Commercial	10		8,508	—		—
Real Estate Mortgage:
Commercial – Owner Occupied	—		—	5		4,131
Commercial – Non-owner Occupied	3		4,779	2		5,451
Residential – 1-4 Family	5		4,020	1		929
Residential – Multifamily	1		3,267	—		—
Consumer	—		—	1		137
Total	21	$	22,181	10	$	10,964

TDR modification by types

	2012								2011
	Extension		Period of Interest Only			Interest Rate Reduction	Total		Extension		Period of Interest Only		Interest Rate Reduction		Total
	(Amounts in thousands)
Commercial and Industrial	$	500	$	—	$	250	$	750	$	—	$	—	$	594	$	594
Construction:
Residential		—		—		415		415		—		—		2,150		2,150
Commercial		8,008		—		1,930		9,938		—		—		—		—
Real Estate Mortgage:
Commercial – Owner Occupied		3,220		—		—		3,220		—		—		682		682
Commercial – Non-owner Occupied		1,156		—		2,911		4,067		—		1,505		4,038		5,543
Residential – 1-4 Family		924		—		3,244		4,168		—		—		6,250		6,250
Residential – Multifamily		—		380		—		380		—		—		506		506
Consumer		—		—		—		—		—		—		—		—
Total	$	13,808	$	380	$	8,750	$	22,938	$	—	$	1,505	$	14,220	$	15,725

Analysis of Credit Risk Profile by Internally Assigned Grades

An analysis of the credit risk profile by internally assigned grades as of December 31, 2012 and 2011 is as follows:

At December 31, 2012	Pass		OAEM		Substandard		Doubtful		Total
	(Amounts in thousands)
Commercial and Industrial	$	18,926	$	2,183	$	816	$	—	$	21,925
Real Estate Construction:
Residential		6,345		—		986		—		7,331
Commercial		20,097		—		21,778		—		41,875
Real Estate Mortgage:
Commercial – Owner Occupied		150,990		1,121		5,505		—		157,616
Commercial – Non-owner Occupied		173,606		11,399		36,726		—		221,731
Residential – 1 to 4 Family		126,167		2,263		11,734		—		140,164
Residential – Multifamily		16,863		1,103		3,215		—		21,181
Consumer		17,701		—		188		—		17,889
Total	$	530,695	$	18,069	$	80,948	$	—	$	629,712

At December 31, 2011	Pass		OAEM		Substandard		Doubtful		Total
	(Amounts in thousands)
Commercial and Industrial	$	16,033	$	7,500	$	603	$	—	$	24,136
Real Estate Construction:
Residential		12,327		350		8,610		—		21,287
Commercial		23,898		—		26,463		—		50,361
Real Estate Mortgage:
Commercial – Owner Occupied		137,200		3,840		6,409		—		147,449
Commercial – Non-owner Occupied		156,277		10,430		37,509		—		204,216
Residential – 1 to 4 Family		120,658		4,360		13,750		—		138,768
Residential – Multifamily		16,261		3,268		597		—		20,126
Consumer		18,500		—		274		—		18,774
Total	$	501,154	$	29,748	$	94,215	$	—	$	625,117

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Allowance for Loan Losses (Tables)

12 Months Ended

Dec. 31, 2012

Allowance for Loan Losses [Abstract]

Analysis of Allowance for Loan Losses

An analysis of the allowance for loan losses as of and for the years ended December 31, 2012 and 2011 is as follows:

Allowance for Loan Losses:	For the year ended December 31, 2012
	Beginning Balance		Charge-offs		Recoveries		Provisions		Ending Balance
	(Amounts in thousands)
Commercial and Industrial	$	451	$	(66)	$	—	$	85	$	470
Real Estate Construction:
Residential		2,613		(1,326)		490		(932)		845
Commercial		1,971		(310)		—		(546)		1,115
Real Estate Mortgage:
Commercial – Owner Occupied		2,714		(1,058)		—		2,439		4,095
Commercial – Non-owner Occupied		6,742		(3,848)		—		4,485		7,379
Residential – 1 to 4 Family		4,190		(1,531)		—		1,725		4,384
Residential – Multifamily		278		—		—		34		312
Consumer		148		(38)		—		226		336
Unallocated		216		—		—		(216)		—
Total	$	19,323	$	(8,177)	$	490	$	7,300	$	18,936

Allowance for Loan Losses:	For the year ended December 31, 2011
	Beginning Balance		Charge-offs		Recoveries		Provisions		Ending Balance
	(Amounts in thousands)
Commercial and Industrial	$	448	$	(22)	$	—	$	25	$	451
Real Estate Construction:
Residential		2,980		(2,390)		24		1,999		2,613
Commercial		1,576		(494)		—		889		1,971
Real Estate Mortgage:
Commercial – Owner Occupied		2,508		—		—		206		2,714
Commercial – Non-owner Occupied		3,792		(426)		—		3,376		6,742
Residential – 1 to 4 Family		2,848		(2,643)		34		3,951		4,190
Residential – Multifamily		372		—		—		(94)		278
Consumer		130		—		1		17		148
Unallocated		135		—		—		81		216
Total	$	14,789	$	(5,975)	$	59	$	10,450	$	19,323

Allowance for Loan Losses, at December 31, 2012	Individually evaluated for impairment		Collectively evaluated for impairment		Total
	(Amounts in thousands)
Commercial and Industrial	$	10	$	460	$	470
Real Estate Construction:
Residential		24		821		845
Commercial		96		1,019		1,115
Real Estate Mortgage:
Commercial – Owner Occupied		216		3,879		4,095
Commercial – Non-owner Occupied		1,053		6,326		7,379
Residential – 1 to 4 Family		301		4,083		4,384
Residential – Multifamily		6		306		312
Consumer		—		336		336
Unallocated		—		—		—
Total	$	1,706	$	17,230	$	18,936

Allowance for Loan Losses, at December 31, 2011	Individually evaluated for impairment		Collectively evaluated for impairment		Total
	(Amounts in thousands)
Commercial and Industrial	$	—	$	451	$	451
Real Estate Construction:
Residential		1,297		1,316		2,613
Commercial		380		1,591		1,971
Real Estate Mortgage:
Commercial – Owner Occupied		23		2,691		2,714
Commercial – Non-owner Occupied		2,526		4,216		6,742
Residential – 1 to 4 Family		600		3,590		4,190
Residential – Multifamily		33		245		278
Consumer		—		148		148
Unallocated		—		216		216
Total	$	4,859	$	14,464	$	19,323

Loans, at December 31, 2012:	Individually evaluated for impairment		Collectively evaluated for impairment		Total
	(Amounts in thousands)
Commercial and Industrial	$	748	$	21,177	$	21,925
Real Estate Construction:
Residential		987		6,344		7,331
Commercial		14,879		26,996		41,875
Real Estate Mortgage:
Commercial – Owner Occupied		6,594		151,022		157,616
Commercial – Non-owner Occupied		48,415		173,316		221,731
Residential – 1 to 4 Family		12,550		127,614		140,164
Residential – Multifamily		3,215		17,966		21,181
Consumer		188		17,701		17,889
Total	$	87,576	$	542,136	$	629,712

Loans, at December 31, 2011:	Individually evaluated for impairment		Collectively evaluated for impairment		Total
	(Amounts in thousands)
Commercial and Industrial	$	603	$	23,533	$	24,136
Real Estate Construction:
Residential		8,610		12,677		21,287
Commercial		16,227		34,134		50,361
Real Estate Mortgage:
Commercial – Owner Occupied		7,536		139,913		147,449
Commercial – Non-owner Occupied		48,244		155,972		204,216
Residential – 1 to 4 Family		11,865		126,903		138,768
Residential – Multifamily		3,865		16,261		20,126
Consumer		229		18,545		18,774
Total	$	97,179	$	527,938	$	625,117

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Consolidated Statements of Cash Flows (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011
Cash Flows from Operating Activities
Net income	$ 8,069	$ 8,204
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	358	366
Provision for loan losses	7,300	10,450
Bank owned life insurance	(202)	(179)
Supplemental executive retirement plan expense	135	477
Gain on sale of SBA loans	(3,582)	(4,439)
SBA loans originated for sale	(32,199)	(27,171)
Proceeds from sale of SBA loans originated for sale	35,595	30,230
Loss on sale of other real estate owned	999	557
Contribution of Other Real Estate Owned Property	139	0
Other than temporary decline in value of investments	0	129
Net accretion of purchase premiums and discounts on securities	3	(68)
Deferred income tax benefit	(1,343)	(1,801)
Changes in operating assets and liabilities:
(Increase) decrease in accrued interest receivable and other assets	(851)	1,180
Increase (decrease) in accrued interest payable and other accrued liabilities	1,162	(451)
Net cash provided by operating activities	17,284	17,484
Cash Flows from Investing Activities
Purchases of investment securities available for sale	(4,148)	(1,537)
Redemptions (purchases) of restricted stock	1,342	(525)
Purchase of additional bank owned life insurance	(5,000)
Proceeds from sale and call of securities available for sale	1,000	500
Proceeds from maturities and principal payments on mortgage backed securities	5,940	6,198
Proceeds from sale of other real estate owned	3,533	3,414
Advances on other real estate owned	(223)	(4,802)
Net increase in loans	(23,378)	(6,173)
Purchases of bank premises and equipment	(225)	(209)
Net cash used in investing activities	(21,159)	(3,134)
Cash Flows from Financing Activities
Payment of dividend on preferred stock	(815)	(815)
Cash payment of fractional shares on 10% stock dividend	(1)	(1)
Minority interest capital withdrawal, net	899	(915)
Proceeds from exercise of stock options and warrants	35	0
Net (decrease) increase in Federal Home Loan Bank and short term borrowings	(30,159)	9,848
Net (decrease) increase in noninterest-bearing deposits	(804)	7,978
Net increase in interest-bearing deposits	3,156	22,155
Net cash (used in) provided by financing activities	(29,487)	38,250
(Decrease) Increase in cash and cash equivalents	(33,362)	52,600
Cash and Cash Equivalents, January 1,	110,228	57,628
Cash and Cash Equivalents, December 31,	76,866	110,228
Cash paid during the year for:
Interest on deposits and borrowed funds	7,505	9,441
Income taxes	5,600	5,700
Supplemental Schedule of Noncash Activities:
Real estate acquired in settlement of loans	$ 11,095	$ 1,879

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Bank Premises and Equipment (Tables)

12 Months Ended

Dec. 31, 2012

Bank Premises and Equipment [Abstract]

Summary of premises and equipment

A summary of the cost and accumulated depreciation and amortization of Company premises and equipment as of December 31, 2012 and 2011 is as follows:

	Estimated Useful lives	2012			2011
		(Amounts in thousands)
Land		$	820		$	820
Building and improvements	40 yrs-Life of lease		3,992			4,059
Furniture and equipment	5 - 10 years		1,800			1,508
Total premises and equipment			6,612			6,387
Less: accumulated depreciation and amortization			(2,623	)		(2,265	)
Premises and equipment, net		$	3,989		$	4,122

Schedule of future minimum rental payments for operating leases

The Company has non-cancelable operating lease agreements related to its Northfield and Philadelphia branch offices. The term of the Northfield lease is for 5 years and runs through May 2017 with one 5-year renewal option. The term of the Philadelphia lease is for 10 years and runs through June 2016 with two 5-year renewal options. The Company is responsible for its pro-rata share of real estate taxes, and all insurance, utilities, maintenance and repair costs for the benefit of the branch offices.  At December 31, 2012, the required future minimum rental payments under these leases and other equipment operating leases are as follows:

Years Ending December 31,	(Amounts in thousands)
2013		140
2014		140
2015		140
2016		107
2017		31
Total minimum lease payments	$	558

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Fair Value (Tables)

12 Months Ended

Dec. 31, 2012

Fair Value [Abstract]

Assets and Liabilities Measured at Fair Value on a Recurring Basis

The table below presents the balances of assets and liabilities measured at fair value on a recurring basis at December 31, 2012 and 2011.

Financial Assets	Level 1		Level 2		Level 3		Total
	(Amounts in thousands)
Securities Available for Sale
As of December 31, 2012
U.S. Government sponsored entities	$	—	$	7	$	—	$	7
Corporate debt obligations		—		1,524		—		1,524
Residential mortgage-backed securities		—		12,899		—		12,899
Collateralized mortgage-backed securities				968		6		974
Collateralized debt obligations		—		—		3,936		3,936
Total	$	—	$	15,398	$	3,942	$	19,340
As of December 31, 2011
U.S. Government sponsored entities	$	—	$	1,011	$	—	$	1,011
Corporate debt obligations		—		1,486		—		1,486
Residential mortgage-backed securities		—		14,461		—		14,461
Collateralized mortgage-backed securities				1,437		157		1,594
Collateralized debt obligations		—		—		3,965		3,965
Total	$	—	$	18,395	$	4,122	$	22,517

Changes in Level 3 Assets Measured at Fair Value on a Recurring Basis

The changes in Level 3 assets measured at fair value on a recurring basis are summarized as follows for the years ended December 31:

	Securities Available for Sale
	2012			2011
	(Amounts in thousands)
Beginning balance at January 1,	$	4,122		$	4,560
Total net losses included in:
Net loss – CMO's		(128	)		(129	)
Other comprehensive loss – CDO's		(52	)		(107	)
Settlements		—			(202	)
Net transfers into Level 3		—			—
Ending balance December 31,	$	3,942		$	4,122

Fair Value on a Non-recurring Basis

Certain assets and liabilities are not measured at fair value on an ongoing basis but are subject to fair value adjustments in certain circumstances (for example, when there is evidence of impairment).

Financial Assets	Level 1		Level 2		Level 3		Total
	(Amounts in thousands)
As of December 31, 2012
Collateral dependent impaired loans	$	—	$	—	$	56,620	$	56,620
OREO		—		—		26,057		26,057
As of December 31, 2011
Collateral dependent impaired loans	$	—	$	—	$	72,958	$	72,958
OREO		—		—		19,410		19,410

Summary of Carrying Value and Fair Value of Financial Instruments

The following table summarizes the carrying amounts and fair values for financial instruments at December 31, 2012 and December 31, 2011:

	Level in Fair Value Hierarchy	December 31, 2012				December 31, 2011
		Carrying Value		Fair Value		Carrying Value		Fair Value
		(Amounts in thousands)
Financial Assets:
Cash and cash equivalents	Level 1	$	76,866	$	76,866	$	110,228	$	110,228
Investment securities AFS	(1)		19,340		19,340		22,517		22,517
Investment securities HTM	Level 2		2,066		2,239		2,032		2,080
Restricted stock	Level 2		2,223		2,223		3,565		3,565
Loans held for sale	Level 2		495		495		225		225
Loans, net	(2)		610,776		632,723		605,794		622,801
Accrued interest receivable	Level 2		2,727		2,727		3,039		3,039
Financial Liabilities:
Demand and savings deposits	Level 2	$	367,158	$	367,158	$	356,440	$	356,440
Time deposits	Level 2		270,049		271,786		278,415		280,147
Borrowings	Level 2		43,851		42,849		74,010		79,997
Accrued interest payable	Level 2		537		537		618		618

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Borrowings (Details) (USD $)	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011
Amount [Abstract]
Federal Home Loan Bank advances	$ 20,448,000	$ 50,607,000
Weighted Average Rate [Abstract]
Subordinated debentures	13,403,000	13,403,000
Line of credit facility amount outstanding	25,400,000
Federal Home Loan Bank Repurchase Agreements [Member]
Analysis of borrowings [Abstract]
Debt instrument, maturity date	May 31, 2013
Borrowed funds	5,000,000	5,000,000
Weighted Average Rate [Abstract]
Weighted average rate (in hundredths)	2.65%	2.65%
Other Repurchase Agreements [Member]
Analysis of borrowings [Abstract]
Debt instrument, maturity date	Jul. 31, 2012
Borrowed funds	5,000,000	5,000,000
Weighted Average Rate [Abstract]
Weighted average rate (in hundredths)	4.91%	4.91%
Federal Home Loan Bank Advances [Member]
Amount [Abstract]
Advances maturing in less than one year	0	30,000,000
Advances maturing in one to three years	20,448,000	19,900,000
Advances maturing in three to five years	0	707,000
Advances maturing in five to ten years	0	0
Federal Home Loan Bank advances	20,448,000	50,607,000
Weighted Average Rate [Abstract]
Advances maturing in less than one year (in hundredths)	0.00%	0.32%
Advances maturing in one to three years (in hundredths)	1.29%	1.18%
Advances maturing in three to five years (in hundredths)	0.00%	5.19%
Advances maturing in five to ten years (in hundredths)	0.00%	0.00%
Line of credit facility maximum borrowing capacity	100,900,000
Subordinated Debentures [Member]
Weighted Average Rate [Abstract]
Subordinated debentures	13,403,000	13,403,000
Subordinated Debentures [Member] | Parke Capital Trust I [Member]
Analysis of borrowings [Abstract]
Debt instrument, maturity date	Nov. 30, 2035
Weighted Average Rate [Abstract]
Subordinated debentures	5,155,000	5,155,000
Weighted average rate (in hundredths)	1.97%	1.94%
Subordinated Debentures - Capital Trusts [Abstract]
Aggregate principal amount	5,000,000
Basis spread on variable rate (in hundredths)	1.66%
Proceeds from debentures allocated to paid in capital at bank	4,200,000
Proceeds from debentures retained at company for future use	955,000
Subordinated Debentures [Member] | Parke Capital Trust II [Member]
Analysis of borrowings [Abstract]
Debt instrument, maturity date	Nov. 30, 2035
Weighted Average Rate [Abstract]
Subordinated debentures	5,155,000	5,155,000
Weighted average rate (in hundredths)	1.97%	1.94%
Subordinated Debentures - Capital Trusts [Abstract]
Aggregate principal amount	5,000,000
Description of variable rate basis	three-month LIBOR plus 1.66%
Basis spread on variable rate (in hundredths)	1.66%
Proceeds from debentures allocated to paid in capital at bank	4,200,000
Proceeds from debentures retained at company for future use	955,000
Subordinated Debentures [Member] | Parke Capital Trust III [Member]
Analysis of borrowings [Abstract]
Debt instrument, maturity date	Sep. 30, 2037
Weighted Average Rate [Abstract]
Subordinated debentures	3,093,000	3,093,000
Weighted average rate (in hundredths)	1.81%	1.80%
Subordinated Debentures - Capital Trusts [Abstract]
Aggregate principal amount	$ 3,000,000
Description of variable rate basis	three-month LIBOR plus 1.50%
Basis spread on variable rate (in hundredths)	1.50%

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Consolidated Balance Sheets (USD $) In Thousands, unless otherwise specified	Dec. 31, 2012	Dec. 31, 2011
Assets
Cash and due from financial institutions	$ 2,601	$ 3,733
Federal funds sold and cash equivalents	74,265	106,495
Cash and cash equivalents	76,866	110,228
Investment securities available for sale, at fair value	19,340	22,517
Investment securities held to maturity (fair value of $2,239 at December 31, 2012 and $2,080 at December 31, 2011)	2,066	2,032
Total investment securities	21,406	24,549
Loans held for sale	495	225
Loans, net of unearned income	629,712	625,117
Less: Allowance for loan losses	(18,936)	(19,323)
Net loans	610,776	605,794
Accrued interest receivable	2,727	3,039
Premises and equipment, net	3,989	4,122
Other real estate owned (OREO)	26,057	19,410
Restricted stock, at cost	2,223	3,565
Bank owned life insurance (BOLI)	10,743	5,541
Other assets	15,195	14,265
Total Assets	770,477	790,738
Deposits
Noninterest-bearing deposits	30,342	31,146
Interest-bearing deposits	606,865	603,709
Total deposits	637,207	634,855
FHLB borrowings	20,448	50,607
Other borrowed funds	10,000	10,000
Subordinated debentures	13,403	13,403
Accrued interest payable	537	618
Other liabilities	5,339	3,982
Total liabilities	686,934	713,465
Equity
Preferred stock, cumulative perpetual, $1,000 liquidation value; authorized 1,000,000 shares; Issued: 16,288 shares at December 31, 2012 and December 31, 2011	16,065	15,868
Common stock, $.10 par value; authorized 10,000,000 shares; Issued: 5,383,893 shares at December 31, 2012 and 4,886,178 shares at December 31, 2011	560	510
Additional paid-in capital	48,869	45,844
Retained earnings	21,068	17,808
Accumulated other comprehensive loss	(745)	(626)
Treasury stock, 210,900 shares at December 31, 2012 and December 31, 2011, at cost	(2,180)	(2,180)
Total shareholders' equity	83,637	77,224
Noncontrolling interest in consolidated subsidiaries	(94)	49
Total equity	83,543	77,273
Total liabilities and equity	$ 770,477	$ 790,738

XML

Loans, Related Party Loans (Details) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011
Related party loans [Roll Forward]
Balance, beginning of year	$ 22,049	$ 24,023
Advances	1,970	248
Less: repayments	(388)	(2,222)
Less: adjustments	(7,027)	0
Balance, end of year	$ 16,606	$ 22,049

XML

Consolidated Statements of Equity (USD $) In Thousands, except Share data, unless otherwise specified	Preferred Stock [Member]	Common Stock [Member]	Additional Paid-in Capital [Member]	Retained Earnings [Member]	Accumulated Other Comprehensive Loss [Member]	Treasury Stock [Member]	Total Shareholders Equity [Member]	Non-Controlling Interest [Member]	Total
Balance at Dec. 31, 2010	$ 15,683	$ 465	$ 41,931	$ 15,494	$ (693)	$ (2,180)	$ 70,700	$ 32	$ 70,732
(Balance (in shares) at Dec. 31, 2010
Capital withdrawals by noncontrolling interest								(915)	(915)
10% common stock dividend		45	3,913	(3,958)			0		0
Comprehensive income (loss):
Net income				7,272			7,272	932	8,204
Total comprehensive income							67		67
Dividend on preferred stock				(815)			(815)		(815)
Accretion of discount on preferred stock	185			(185)			0		0
Balance at Dec. 31, 2011	15,868	510	45,844	17,808	(626)	(2,180)	77,224	49	77,273
Balance (in shares) at Dec. 31, 2011		5,097,078
Capital withdrawals by noncontrolling interest								(889)	(889)
Stock options exercised		1	34				35		35
Stock options exercised (in shares)		9,332							9,332
10% common stock dividend		49	2,991	(3,041)			(1)		(1)
10% common stock dividend (in shares)		488,383
Comprehensive income (loss):
Net income				7,313			7,313	756	8,069
Total comprehensive income							119		119
Dividend on preferred stock				(815)			(815)		(815)
Accretion of discount on preferred stock	197			(197)			0		0
Balance at Dec. 31, 2012	$ 16,065	$ 560	$ 48,869	$ 21,068	$ (745)	$ (2,180)	$ 83,637	$ (94)	$ 83,543
Balance (in shares) at Dec. 31, 2012		5,594,793

XML

Commitments and Contingencies (Details) (USD $) In Millions, unless otherwise specified	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2012 Commitments to Extend Credit [Member]	Dec. 31, 2011 Commitments to Extend Credit [Member]	Dec. 31, 2012 Standby Letters of Credit [Member]	Dec. 31, 2011 Standby Letters of Credit [Member]
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items]
Off-balance sheet risks liability		$ 50.8	$ 54.8	$ 5.8	$ 6.9
Maximum period of variable rate	1 year

XML

Borrowings (Tables)

12 Months Ended

Dec. 31, 2012

Borrowings [Abstract]

Schedule of analysis of borrowings

An analysis of borrowings as of December 31, 2012 and 2011 is as follows:

		2012			2011
	Maturity Date or Range	Amount		Weighted Average Rate	Amount		Weighted Average Rate
		(Amounts in thousands, except rates)
Borrowed funds:
Federal Home Loan Bank repurchase agreements	May 2013	$	5,000	2.65%	$	5,000	2.65%
Other repurchase agreements	July 2013	$	5,000	4.91%	$	5,000	4.91%
Federal Home Loan Bank advances	Less than one year	$	—	—	$	30,000	0.32%
	One to three years		20,448	1.29%		19,900	1.18%
	Three to five years		—	—		707	5.19%
	Five to ten years		—	—		—	—
	Total	$	20,448		$	50,607
Subordinated debentures, capital trusts	November 2035	$	5,155	1.97%	$	5,155	1.94%
	November 2035		5,155	1.97%		5,155	1.94%
	September 2037		3,093	1.81%		3,093	1.80%
	Total	$	13,403		$	13,403

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Other Related Party Transactions

12 Months Ended

Dec. 31, 2012

Other Related Party Transactions [Abstract]

Other Related Party Transactions

Note  14.   Other Related Party Transactions

A member of the Board of Directors is a principal of a commercial insurance agency that provides all the insurance coverage for the Company.  The cost of the insurance was approximately $361 thousand in 2012 and $184 thousand in 2011.  An insurance agency owned by another Board Member provides employee benefits (medical insurance, life insurance, and disability insurance).  The cost of these employee benefits totaled $493 thousand in 2012 and $420 thousand in 2011.

XML

Income Taxes (Tables)

12 Months Ended

Dec. 31, 2012

Income Taxes [Abstract]

Schedule of components of income tax expense

Income tax expense for 2012 and 2011 consisted of the following:

	2012			2011
	(Amounts in thousands)
Current tax expense:
Federal	$	4,405		$	5,808
State		1,180			1,517
		5,585			7,325
Deferred tax benefit		(1,343	)		(1,801	)
Income tax expense	$	4,242		$	5,524

Schedule of deferred tax assets and liabilities

The components of the net deferred tax asset at December 31, 2012 and 2011 are as follows:

	2012			2011
	(Amounts in thousands)
Deferred tax assets
Allowance for loan losses	$	7,735		$	7,894
Minimum pension liability		2,262			2,175
Stock compensation		30			30
Depreciation		221			211
Capitalized OREO expense		1,551			518
OTTI write down on securities		1,217			1,353
		13,016			12,181
Deferred tax liabilities:
Discount accretion		16			(27	)
Deferred loan costs		(735	)		(674	)
Investment securities available for sale		(399	)		(310	)
BOLI		—			(576	)
		(1,118	)		(1,587	)
Net deferred tax asset	$	11,898		$	10,594

Schedule of effective income tax rate

A reconciliation of the Company's effective income tax rate with the statutory federal rate for 2012 and 2011 is as follows:

	2012			2011
	(Amounts in thousands)
At Federal statutory rate	$	4,309		$	4,805
Adjustments resulting from:
State income taxes, net of Federal tax benefit		657			714
BOLI – Reversal of DTA		(647	)		—
Other		(77	)		5
	$	4,242		$	5,524

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Fair Value

12 Months Ended

Dec. 31, 2012

Fair Value [Abstract]

Fair Value

Note  16.   Fair Value

Fair Value Measurements

The Company uses fair value measurements to record fair value adjustments to certain assets and liabilities and to determine fair value disclosures. In accordance with the Fair Value Measurements and Disclosures Topic 820 of FASB ASC, the fair value of a financial instrument is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Fair value is best determined based upon quoted market prices. However, in many instances, there are no quoted market prices for the Company's various financial instruments. In cases where quoted market prices are not available, fair values are based on estimates using present value or other valuation techniques. Those techniques are significantly affected by the assumptions used, including the discount rate and estimates of future cash flows. Accordingly, the fair value estimates may not be realized in an immediate settlement of the instrument.

The fair value guidance provides a consistent definition of fair value, which focuses on exit price in an orderly transaction (that is, not a forced liquidation or distressed sale) between market participants at the measurement date under current market conditions. If there has been a significant decrease in the volume and level of activity for the asset or liability, a change in valuation technique or the use of multiple valuation techniques may be appropriate. In such instances, determining the price at which willing market participants would transact at the measurement date under current market conditions depends on the facts and circumstances and requires the use of significant judgment. The fair value is a reasonable point within the range that is most representative of fair value under current market conditions. In accordance with this guidance, the Company groups its assets and liabilities carried at fair value in three levels as follows:

Level 1 Input:

1) Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities.

Level 2 Inputs:

1) Quoted prices for similar assets or liabilities in active markets.

2) Quoted prices for identical or similar assets or liabilities in markets that are not active.

3) Inputs other than quoted prices that are observable, either directly or indirectly, for the term of the asset or liability (e.g., interest rates, yield curves, credit risks, prepayment speeds or volatilities) or "market corroborated inputs."

Level 3 Inputs:

1) Prices or valuation techniques that require inputs that are both unobservable (i.e. supported by little or no market activity) and that are significant to the fair value of the assets or liabilities.

2) These assets and liabilities include financial instruments whose value is determined using pricing models, discounted cash flow methodologies, or similar techniques, as well as instruments for which the determination of fair value requires significant management judgment or estimation.

Fair Value on a Recurring Basis:

The following is a description of the Company's valuation methodologies for assets carried at fair value. These methods may produce a fair value calculation that may not be indicative of net realizable value or reflective of future fair values. Furthermore, while the Company believes that its valuation methods are appropriate and consistent with other market participants, the use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different estimate of fair value at the reporting measurement date.

Investment Securities Available for Sale:

Where quoted prices are available in an active market, securities are classified in Level 1 of the valuation hierarchy. Securities in Level 1 are exchange-traded equities. If quoted market prices are not available for the specific security, then fair values are provided by independent third-party valuations services. These valuations services estimate fair values using pricing models and other accepted valuation methodologies, such as quotes for similar securities and observable yield curves and spreads. As part of the Company's overall valuation process, management evaluates these third-party methodologies to ensure that they are representative of exit prices in the Company's principal markets. Securities in Level 2 include U.S. Government agencies, mortgage-backed securities, state and municipal securities and trust preferred securities.

Securities in Level 3 include thinly-traded and collateralized debt obligations. With the assistance of competent third-party valuation specialists, the Company utilized the following methodology to determine the fair value:

Cash flows were developed based on the estimated speeds at which the TruPS are expected to prepay (a range of 1% to 2%), the estimated rates at which the TruPS are expected to defer payments, the estimated rates at which the TruPS are expected to default (a range of 0.57% to 0.66%), and the severity of the losses on securities which default (95%). TruPS generally allow for prepayment by the issuer without a prepayment penalty any time after five years. Due to the lack of new TruPS issuances and the relatively poor conditions of the financial institution industry, a relatively modest rate of prepayment was assumed going forward. Estimates for CDRs are based on the payment characteristics of the TruPS themselves (e.g. current, deferred, or defaulted) as well as the financial condition of the TruPS issuers in the pool. Estimates for the near-term rates of deferral and CDR are based on key financial ratios relating to the financial institutions' capitalization, asset quality, profitability and liquidity. Finally, we consider whether or not the financial institution has received TARP funding, and if it has, the amount. Longer-term rates of deferral and defaults are based on historical averages. The fair value of each bond was assessed by discounting its projected cash flows by a discount rate.  The discount rates were based on the yields of publicly traded TruPS and preferred stock issued by comparably rated banks (3 month LIBOR plus a spread of 400 to 959 basis points).

The table below presents the balances of assets and liabilities measured at fair value on a recurring basis at December 31, 2012 and 2011.

Financial Assets	Level 1		Level 2		Level 3		Total
	(Amounts in thousands)
Securities Available for Sale
As of December 31, 2012
U.S. Government sponsored entities	$	—	$	7	$	—	$	7
Corporate debt obligations		—		1,524		—		1,524
Residential mortgage-backed securities		—		12,899		—		12,899
Collateralized mortgage-backed securities				968		6		974
Collateralized debt obligations		—		—		3,936		3,936
Total	$	—	$	15,398	$	3,942	$	19,340
As of December 31, 2011
U.S. Government sponsored entities	$	—	$	1,011	$	—	$	1,011
Corporate debt obligations		—		1,486		—		1,486
Residential mortgage-backed securities		—		14,461		—		14,461
Collateralized mortgage-backed securities				1,437		157		1,594
Collateralized debt obligations		—		—		3,965		3,965
Total	$	—	$	18,395	$	4,122	$	22,517

For the year ended December 31, 2012, there were no transfers between the levels within the fair value hierarchy.

The changes in Level 3 assets measured at fair value on a recurring basis are summarized as follows for the years ended December 31:

	Securities Available for Sale
	2012			2011
	(Amounts in thousands)
Beginning balance at January 1,	$	4,122		$	4,560
Total net losses included in:
Net loss – CMO's		(128	)		(129	)
Other comprehensive loss – CDO's		(52	)		(107	)
Settlements		—			(202	)
Net transfers into Level 3		—			—
Ending balance December 31,	$	3,942		$	4,122

Fair Value on a Non-recurring Basis:

Certain assets and liabilities are not measured at fair value on an ongoing basis but are subject to fair value adjustments in certain circumstances (for example, when there is evidence of impairment).

Financial Assets	Level 1		Level 2		Level 3		Total
	(Amounts in thousands)
As of December 31, 2012
Collateral dependent impaired loans	$	—	$	—	$	56,620	$	56,620
OREO		—		—		26,057		26,057
As of December 31, 2011
Collateral dependent impaired loans	$	—	$	—	$	72,958	$	72,958
OREO		—		—		19,410		19,410

Collateral dependent impaired loans, which are measured in accordance with FASB ASC Topic 310 "Receivables", for impairment, had a carrying amount of $56.6 million and $73.0 million at December 31, 2012 and December 31, 2011 respectively, with a valuation allowance of $547 thousand and $2.6 million at December 31, 2012 and December 31, 2011 respectively. The valuation allowance for collateral dependent impaired loans is included in the allowance for loan losses on the balance sheet. All collateral dependent impaired loans have an independent third-party full appraisal to determine the NRV based on the fair value of the underlying collateral, less cost to sell (a range of 5% to 10%) and other costs, such as unpaid real estate taxes, that have been identified, or the present value of discounted cash flows in the case of certain impaired loans that are not collateral dependent. The appraisal will be based on an "as-is" valuation and will follow a reasonable valuation method that addresses the direct sales comparison, income, and cost approaches to market value, reconciles those approaches, and explains the elimination of each approach not used. Appraisals are updated every 12 months or sooner if we have identified possible further deterioration in value.

OREO consists of commercial real estate properties which are recorded at fair value based upon current appraised value less estimated disposition costs, which is adjusted based upon management's review and changes in market conditions (Level 3 inputs). Properties are reappraised annually.

Fair Value of Financial Instruments

The Company discloses estimated fair values for its significant financial instruments in accordance with FASB ASC Topic 825, "Disclosures about Fair Value of Financial Instruments".  The methodologies for estimating the fair value of financial assets and liabilities that are measured at fair value on a recurring or non-recurring basis are discussed above. The methodologies for estimating the fair value of other financial assets and liabilities are discussed below.

For certain financial assets and liabilities, carrying value approximates fair value due to the nature of the financial instrument. These instruments include cash and cash equivalents, restricted stock, accrued interest receivable, demand and other non-maturity deposits and accrued interest payable.

The Company used the following methods and assumptions in estimating the fair value of the following financial instruments:

Investment Securities:Fair value of securities available for sale is described above. Fair value of held to maturity securities is based upon quoted market prices (Level 2 inputs).

Loans Held for Sale: Fair value represents the face value of the guaranteed portion of SBA loans pending settlement.

Loans (other than impaired):  Fair values are estimated for portfolios of loans with similar financial characteristics.  Loans are segregated by type such as commercial, residential mortgage and other consumer.  Each loan category is further segmented into groups by fixed and adjustable rate interest terms and by performing and non-performing categories. The fair value of performing loans is calculated by discounting scheduled cash flows through their estimated maturity, using estimated market discount rates that reflect the credit and interest rate risk inherent in each group of loans (Level 2 inputs).  The estimate of maturity is based on contractual maturities for loans within each group, or on the Company's historical experience with repayments for each loan classification, modified as required by an estimate of the effect of current economic conditions.

Deposits:  The fair value of time deposits is based on the discounted value of contractual cash flows, where the discount rate is estimated using the market rates currently offered for deposits of similar remaining maturities (Level 2 inputs).

Borrowings: The fair values of FHLBNY borrowings, other borrowed funds and subordinated debt are based on the discounted value of estimated cash flows.  The discounted rate is estimated using market rates currently offered for similar advances or borrowings (Level 2 inputs).

Bank premises and equipment, customer relationships, deposit base and other information required to compute the Company's aggregate fair value are not included in the above information. Accordingly, the above fair values are not intended to represent the aggregate fair value of the Company.

The following table summarizes the carrying amounts and fair values for financial instruments at December 31, 2012 and December 31, 2011:

	Level in Fair Value Hierarchy	December 31, 2012				December 31, 2011
		Carrying Value		Fair Value		Carrying Value		Fair Value
		(Amounts in thousands)
Financial Assets:
Cash and cash equivalents	Level 1	$	76,866	$	76,866	$	110,228	$	110,228
Investment securities AFS	(1)		19,340		19,340		22,517		22,517
Investment securities HTM	Level 2		2,066		2,239		2,032		2,080
Restricted stock	Level 2		2,223		2,223		3,565		3,565
Loans held for sale	Level 2		495		495		225		225
Loans, net	(2)		610,776		632,723		605,794		622,801
Accrued interest receivable	Level 2		2,727		2,727		3,039		3,039
Financial Liabilities:
Demand and savings deposits	Level 2	$	367,158	$	367,158	$	356,440	$	356,440
Time deposits	Level 2		270,049		271,786		278,415		280,147
Borrowings	Level 2		43,851		42,849		74,010		79,997
Accrued interest payable	Level 2		537		537		618		618

(1)See the recurring fair value table above.

(2)For non-impaired loans, Level 2; for impaired loans, Level 3.

XML

Consolidated Statements of Equity (Parenthetical)	1 Months Ended		12 Months Ended
	May 31, 2012	May 31, 2011	Dec. 31, 2012	Dec. 31, 2011
Consolidated Statements of Equity [Abstract]
Common stock, dividend rate (in hundredths)	10.00%	10.00%	10.00%	10.00%
Preferred stock, dividend rate (in hundredths)			5.00%	5.00%

XML

Consolidated Balance Sheets (Parenthetical) (USD $) In Thousands, except Share data, unless otherwise specified	Dec. 31, 2012	Dec. 31, 2011
Assets
Investment securities held to maturity, fair value	$ 2,239	$ 2,080
Equity
Preferred stock, liquidation value per share (in dollars per share)	$ 1,000	$ 1,000
Preferred stock, authorized (in shares)	1,000,000	1,000,000
Preferred stock, issued (in shares)	16,288	16,288
Common stock, par value (in dollars per share)	$ 0.10	$ 0.10
Common stock, authorized (in shares)	10,000,000	10,000,000
Common stock, issued (in shares)	5,383,893	4,886,178
Treasury stock, shares (in shares)	210,900	210,900

XML

Borrowings

12 Months Ended

Dec. 31, 2012

Borrowings [Abstract]

Borrowings

Note  9.   Borrowings

An analysis of borrowings as of December 31, 2012 and 2011 is as follows:

		2012			2011
	Maturity Date or Range	Amount		Weighted Average Rate	Amount		Weighted Average Rate
		(Amounts in thousands, except rates)
Borrowed funds:
Federal Home Loan Bank repurchase agreements	May 2013	$	5,000	2.65%	$	5,000	2.65%
Other repurchase agreements	July 2013	$	5,000	4.91%	$	5,000	4.91%
Federal Home Loan Bank advances	Less than one year	$	—	—	$	30,000	0.32%
	One to three years		20,448	1.29%		19,900	1.18%
	Three to five years		—	—		707	5.19%
	Five to ten years		—	—		—	—
	Total	$	20,448		$	50,607
Subordinated debentures, capital trusts	November 2035	$	5,155	1.97%	$	5,155	1.94%
	November 2035		5,155	1.97%		5,155	1.94%
	September 2037		3,093	1.81%		3,093	1.80%
	Total	$	13,403		$	13,403

At December 31, 2012, the Company had a $100.9 million line of credit from the FHLBNY, of which $25.4 million, as detailed above, was outstanding.

Certain investment securities (Note 3), loans (Note 4), and FHLBNY stock are pledged as collateral for borrowings.

Subordinated Debentures – Capital Trusts:  On August 23, 2005, Parke Capital Trust I, a Delaware statutory business trust and a wholly-owned subsidiary of the Company, issued $5,000,000 of variable rate capital trust pass-through securities to investors. The variable interest rate re-prices quarterly at the three-month LIBOR plus 1.66% and was 1.97% at December 31, 2012. Parke Capital Trust I purchased $5,155,000 of variable rate junior subordinated deferrable interest debentures from the Company. The debentures are the sole asset of the Trust. The terms of the junior subordinated debentures are the same as the terms of the capital securities. The Company has also fully and unconditionally guaranteed the obligations of the Trust under the capital securities. The capital securities are redeemable by the Company on or after November 23, 2010, at par, or earlier if the deduction of related interest for federal income taxes is prohibited, classification as Tier 1 Capital is no longer allowed, or certain other contingencies arise. The capital securities must be redeemed upon final maturity of the subordinated debentures on November 23, 2035. Proceeds of approximately $4.2 million were contributed to paid-in capital at the Bank. The remaining $955 thousand was retained at the Company for future use.

On August 23, 2005, Parke Capital Trust II, a Delaware statutory business trust and a wholly-owned subsidiary of the Company, issued $5,000,000 of fixed/variable rate capital trust pass-through securities to investors. Currently, the interest rate is variable at 1.97%. The variable interest rate re-prices quarterly at the three-month LIBOR plus 1.66% beginning November 23, 2010. Parke Capital Trust II purchased $5,155,000 of variable rate junior subordinated deferrable interest debentures from the Company. The debentures are the sole asset of the Trust. The terms of the junior subordinated debentures are the same as the terms of the capital securities. The Company has also fully and unconditionally guaranteed the obligations of the Trust under the capital securities. The capital securities are redeemable by the Company on or after November 23, 2010, at par, or earlier if the deduction of related interest for federal income taxes is prohibited, classification as Tier 1 Capital is no longer allowed, or certain other contingencies arise. The capital securities must be redeemed upon final maturity of the subordinated debentures on November 23, 2035. Proceeds of approximately $4.2 million were contributed to paid-in capital at the Bank. The remaining $955 thousand was retained at the Company for future use.

On June 21, 2007, Parke Capital Trust III, a Delaware statutory business trust and a wholly-owned subsidiary of the Company, issued $3,000,000 of variable rate capital trust pass-through securities to investors. The variable interest rate re-prices quarterly at the three-month LIBOR plus 1.50% and was 1.81% at December 31, 2012. Parke Capital Trust III purchased $3,093,000 of variable rate junior subordinated deferrable interest debentures from the Company. The debentures are the sole asset of the Trust. The terms of the junior subordinated debentures are the same as the terms of the capital securities. The Company has also fully and unconditionally guaranteed the obligations of the Trust under the capital securities. The capital securities are redeemable by the Company on or after December 15, 2012, at par, or earlier if the deduction of related interest for federal income taxes is prohibited, classification as Tier 1 Capital is no longer allowed, or certain other contingencies arise. The capital securities must be redeemed upon final maturity of the subordinated debentures on September 15, 2037.   The proceeds were contributed to paid-in capital at the Bank.

XML

Document and Entity Information (USD $) In Millions, except Share data, unless otherwise specified	12 Months Ended
	Dec. 31, 2012	Mar. 22, 2013
Document and Entity Information [Abstract]
Entity Registrant Name	PARKE BANCORP, INC.
Entity Central Index Key	0001315399
Current Fiscal Year End Date	--12-31
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Filer Category	Smaller Reporting Company
Entity Public Float		$ 28.10
Entity Common Stock, Shares Outstanding		5,383,893
Document Fiscal Year Focus	2012
Document Fiscal Period Focus	FY
Document Type	10-K
Amendment Flag	false
Document Period End Date	Dec. 31, 2012

XML

Income Taxes

12 Months Ended

Dec. 31, 2012

Income Taxes [Abstract]

Income Taxes

Note  10.   Income Taxes

Income tax expense for 2012 and 2011 consisted of the following:

	2012			2011
	(Amounts in thousands)
Current tax expense:
Federal	$	4,405		$	5,808
State		1,180			1,517
		5,585			7,325
Deferred tax benefit		(1,343	)		(1,801	)
Income tax expense	$	4,242		$	5,524

The components of the net deferred tax asset at December 31, 2012 and 2011 are as follows:

	2012			2011
	(Amounts in thousands)
Deferred tax assets
Allowance for loan losses	$	7,735		$	7,894
Minimum pension liability		2,262			2,175
Stock compensation		30			30
Depreciation		221			211
Capitalized OREO expense		1,551			518
OTTI write down on securities		1,217			1,353
		13,016			12,181
Deferred tax liabilities:
Discount accretion		16			(27	)
Deferred loan costs		(735	)		(674	)
Investment securities available for sale		(399	)		(310	)
BOLI		—			(576	)
		(1,118	)		(1,587	)
Net deferred tax asset	$	11,898		$	10,594

A reconciliation of the Company's effective income tax rate with the statutory federal rate for 2012 and 2011 is as follows:

	2012			2011
	(Amounts in thousands)
At Federal statutory rate	$	4,309		$	4,805
Adjustments resulting from:
State income taxes, net of Federal tax benefit		657			714
BOLI – Reversal of DTA		(647	)		—
Other		(77	)		5
	$	4,242		$	5,524

The decrease in income tax expense is due to the change to an alternative tax methodology for BOLI income whereby it is treated on a tax free basis.

Management has evaluated the Company's tax positions and concluded that the Company has taken no uncertain tax positions that require adjustments to the financial statements. With few exceptions, the Company is no longer subject to income tax examinations by the U.S. federal or local tax authorities for years before 2009, and by the State of New Jersey for years before 2008.

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Consolidated Statements of Income (USD $) In Thousands, except Share data, unless otherwise specified	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011
Interest income:
Interest and fees on loans	$ 36,474	$ 39,851
Interest and dividends on investments	1,026	1,329
Interest on federal funds sold and cash equivalents	246	129
Total interest income	37,746	41,309
Interest expense:
Interest on deposits	6,483	7,878
Interest on borrowings	941	1,353
Total interest expense	7,424	9,231
Net interest income	30,322	32,078
Provision for loan losses	7,300	10,450
Net interest income after provision for loan losses	23,022	21,628
Noninterest income (loss)
Gain on sale of SBA loans	3,582	4,439
Loan fees	394	220
Net income from BOLI	202	179
Service fees on deposit accounts	220	221
Other than temporary impairment losses	0	(132)
Portion of loss recognized in other comprehensive income (OCI) (before taxes)	0	3
Net impairment losses recognized in earnings	0	(129)
(Loss) gain on sale and write-down of real estate owned	(999)	(557)
Other	969	352
Total noninterest income (loss)	4,368	4,725
Noninterest expense
Compensation and benefits	5,866	5,638
Professional services	1,746	1,235
Occupancy and equipment	1,043	1,006
Data processing	410	405
FDIC insurance	1,094	985
OREO expense	1,529	642
Other operating expense	3,391	2,714
Total noninterest expense	15,079	12,625
Income before income tax expense	12,311	13,728
Income tax expense	4,242	5,524
Net income attributable to Company and noncontrolling interest	8,069	8,204
Net income attributable to noncontrolling interest	(756)	(932)
Net income attributable to Company	7,313	7,272
Preferred stock dividend and discount accretion	1,012	1,000
Net income available to common shareholders	$ 6,301	$ 6,272
Earnings per common share
Basic (in dollars per share)	$ 1.17	$ 1.17
Diluted (in dollars per share)	$ 1.17	$ 1.15
Weighted average shares outstanding
Basic (in shares)	5,379,558	5,374,561
Diluted (in shares)	5,382,596	5,466,458

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Loans

12 Months Ended

Dec. 31, 2012

Loans [Abstract]

Loans

Note  4.   Loans

The portfolio of loans outstanding consists of:

	December 31, 2012					December 31, 2011
	Amount		Percentage of Total Loans			Amount		Percentage of Total Loans
	(Amounts in thousands)
Commercial and Industrial	$	21,925		3.5	%	$	24,136		3.9	%
Real Estate Construction:
Residential		7,331		1.2			21,287		3.4
Commercial		41,875		6.6			50,361		8.1
Real Estate Mortgage:
Commercial – Owner Occupied		157,616		25.0			147,449		23.6
Commercial – Non-owner Occupied		221,731		35.2			204,216		32.6
Residential – 1 to 4 Family		140,164		22.3			138,768		22.2
Residential – Multifamily		21,181		3.4			20,126		3.2
Consumer		17,889		2.8			18,774		3.0
Total Loans	$	629,712		100.0	%	$	625,117		100.0	%

The Company maintains interest reserves for the purpose of making periodic and timely interest payments for borrowers that qualify for development and construction loans. Total development and construction loans with interest reserves were $864 thousand and $14.6 million at December 31, 2012 and December 31, 2011, respectively. Interest reserves provide borrowers temporary sources of cash flow which can be used to make interest payments during the development or construction phases of a project. It is our expectation that equity in the project increases as the project moves towards completion and that cash flows will be positive once sales begin or stabilization occurs. Loans with interest reserves are monitored throughout the life of the project. Interest accrual may be suspended on interest reserve dependent loans that are not delinquent but are risk rated substandard or worse.

At December 31, 2012 and 2011, approximately $133.6 million and $154.2 million, respectively, of loans were pledged to the FHLBNY on borrowings (Note 9). This pledge consists of a blanket lien on residential mortgages and certain qualifying commercial real estate loans.

Loan Origination/Risk Management:  In the normal course of business the Company is exposed to a variety of operational, reputational, legal, regulatory and credit risks that could adversely affect our financial performance. Most of our asset risk is primarily tied to credit (lending) risk. The Company has lending policies, guidelines and procedures in place that are designed to maximize loan income within an acceptable level of risk. The Board of Directors reviews and approves these policies, guidelines and procedures.  When we originate a loan we make certain subjective judgments about the borrower's ability to meet the loan's terms and conditions. We also make objective and subjective value assessments on the assets we finance. The borrower's ability to repay can be adversely affected by economic changes. Likewise, changes in market conditions and other external factors can affect asset valuations. The Company actively monitors the quality of its loan portfolio. A reporting system supplements the credit review process by providing management with frequent reports related to loan production, loan quality, concentrations of credit risk, loan delinquencies, troubled debt restructures, nonperforming and potential problem loans. Diversification in the loan portfolio is another means of managing risk associated with fluctuations in economic conditions.

With respect to construction loans to developers and builders that are secured by non-owner occupied properties, the Company generally requires the borrower to have had an existing relationship with the Company and have a proven record of success. Construction loans are underwritten utilizing feasibility studies, independent appraisal reviews, sensitivity analysis of absorption and lease rates and financial analysis of the developers and property owners. Construction loans are generally underwritten based upon estimates of costs and value associated with the complete project. These estimates may be inaccurate. Construction loans often involve the disbursement of substantial funds with repayment substantially dependent on the success of the ultimate project. Sources of repayment for these types of loans may be pre-committed permanent loans from approved long-term lenders, sales of developed property or an interim loan commitment from the Company until permanent financing is obtained. These loans are closely monitored by on-site inspections and are considered to have higher risks than other real estate loans due to their ultimate repayment being sensitive to interest rate changes, governmental regulation of real property, general economic conditions and the availability of long-term financing.

Commercial real estate loans are subject to underwriting standards and processes similar to commercial loans, in addition to those of real estate loans. Commercial real estate loans may be riskier than those for one-to-four family residences and are typically larger in dollar size. These loans are viewed primarily as cash flow loans and secondarily as loans secured by real estate. The repayment of these loans is generally largely dependent on the successful operation and management of the property securing the loan or the business conducted on the property securing the loan. Commercial real estate loans may be more adversely affected by conditions in the real estate markets or in the general economy. The properties securing the Company's commercial real estate portfolio are diverse in terms of type and geographic location within our market area. This diversity helps reduce the Company's exposure to adverse economic events that affect any single market or industry. Management monitors and evaluates commercial real estate loans based on collateral, geography and risk grade criteria. The Company also monitors economic conditions and trends affecting market areas it serves. In addition, management tracks the level of owner-occupied commercial real estate loans versus non-owner occupied loans. At December 31, 2012, approximately 41.0% of the outstanding principal balance of the Company's commercial real estate loans were secured by owner-occupied properties.

Consumer loans may carry a higher degree of repayment risk than residential mortgage loans. Repayment is typically dependent upon the borrower's financial stability which is more likely to be adversely affected by job loss, illness, or personal bankruptcy. To monitor and manage consumer loan risk, policies and procedures are developed and modified as needed. This activity, coupled with relatively small loan amounts that are spread across many individual borrowers, minimizes risk. Additionally, trend and outlook reports are reviewed by management on a regular basis. Underwriting standards for home equity loans are heavily influenced by statutory requirements, which include, but are not limited to, a maximum loan-to-value percentage of 80%, collection remedies, the number of such loans a borrower can have at one time and documentation requirements. Historically the Company's losses on consumer loans have been negligible.

The Company maintains an outsourced independent loan review program that reviews and validates the credit risk assessment program on a periodic basis. Results of these external independent reviews are presented to management. In 2011 the Company expanded its risk monitoring program by creating a standalone Credit Risk Management Department. The external independent loan review process complements and reinforces the risk identification and assessment decisions made by lenders and credit risk management personnel.

Concentrations of Credit:  Most of the Company's lending activity occurs within the areas of southern New Jersey and southeastern Pennsylvania, as well as other markets. Our expanded market area includes geographic areas that are actively solicited by our joint venture partner, 44 Business Capital LLC, for the origination of SBA guaranteed loans. The majority of the Company's loan portfolio consists of commercial real estate loans. As of December 31, 2012 and December 31, 2011, there was one industry sector concentration that exceeded 10% of total loans. Loans to lessors of retail buildings totaled $76.8 million, or 12.2% of total loans and $71.1 million or 11.4% of total loans at December 31, 2012 and December 31, 2011, respectively.

Loans to Related Parties:In the normal course of business, the Company has granted loans to officers, directors and their affiliates (related parties).  All loans to related persons were made in the ordinary course of business; were made on substantially the same terms, including interest rates and collateral, as those prevailing at the same time for comparable loans with persons not related to the Bank; and did not involve more than the normal risk of collectability or present other unfavorable features.

An analysis of the activity of such related party loans for 2012 and 2011 is as follows:

	2012			2011
	(Amounts in thousands)
Balance, beginning of year	$	22,049		$	24,023
Advances		1,970			248
Less: repayments		(388	)		(2,222	)
Less: adjustments		(7,027	)		—
Balance, end of year	$	16,606		$	22,049

The adjustment of $7.0 million represents 4 loans by a former Board member.

An age analysis of past due loans by class follows:

December 31, 2012	30-59 Days Past Due			60-89 Days Past Due			Greater than 90 Days and Not Accruing			Total Past Due			Current		Total Loans			Loans > 90 Days and Accruing
	(Amounts in thousands)
Commercial and Industrial	$	—	$		—	$		248	$		248	$		21,677	$	21,925	$		—
Real Estate Construction:
Residential		—			—			799			799			6,532		7,331			—
Commercial		—			—			12,958			12,958			28,917		41,875			—
Real Estate Mortgage:
Commercial – Owner Occupied		—			—			1,218			1,218			156,398		157,616			—
Commercial – Non-owner Occupied		6,439			—			19,228			25,667			196,064		221,731			—
Residential – 1 to 4 Family		1,703			169			10,072			11,944			128,220		140,164			—
Residential – Multifamily		—			—			2,838			2,838			18,343		21,181			—
Consumer		71			49			188			308			17,581		17,889			—
Total Loans	$	8,213	$		218	$		47,549	$		55,980	$		573,732	$	629,712	$		—

December 31, 2011	30-59 Days Past Due			60-89 Days Past Due			Greater than 90 Days and Not Accruing			Total Past Due			Current		Total Loans			Loans > 90 Days and Accruing
	(Amounts in thousands)
Commercial and Industrial	$	603	$		—	$		—	$		603	$		23,533	$	24,136	$		—
Real Estate Construction:
Residential		350			—			5,265			5,615			15,672		21,287			—
Commercial		—			—			7,703			7,703			42,658		50,361			—
Real Estate Mortgage:
Commercial – Owner Occupied		1,358			—			4,797			6,155			141,294		147,449			—
Commercial – Non-owner Occupied		1,574			—			18,132			19,706			184,510		204,216			—
Residential – 1 to 4 Family		2,587			—			7,691			10,278			128,490		138,768			—
Residential – Multifamily		—			—			597			597			19,529		20,126			—
Consumer		—			—			274			274			18,500		18,774			—
Total Loans	$	6,472	$		—	$		44,459	$		50,931	$		574,186	$	625,117	$		—

Impaired Loans: Loans are considered impaired when, based on current information and events, it is probable the Company will be unable to collectamounts due in accordance with the original contractual terms of the loan agreement, including scheduled principal and interest payments.

 All impaired loans have are assessed for recoverability based on an independent third-party full appraisal to determine the net realizable value ("NRV") based on the fair value of the underlying collateral, less cost to sell and other costs, such as unpaid real estate taxes, that have been identified, or the present value of discounted cash flows in the case of certain impaired loans that are not collateral dependent. The appraisal will be based on an "as-is" valuation and will follow a reasonable valuation method that addresses the direct sales comparison, income, and cost approaches to market value, reconciles those approaches, and explains the elimination of each approach not used. Appraisals are generally updated every 12 months or sooner if we have identified possible further deterioration in value. Prior to receiving the updated appraisal, we will establish a specific reserve for any estimated deterioration, based upon our assessment of market conditions, adjusted for estimated costs to sell and other identified costs. If the NRV is greater than the loan amount, then no impairment loss exists. If the NRV is less than the loan amount, the shortfall is recognized by a specific reserve. If the borrower fails to pledge additional collateral in the ninety day period, a charge-off equal to the difference between the loan carrying value and NRV will occur. In certain circumstances, however, a direct charge-off may be taken at the time that the NRV calculation reveals a shortfall. All impaired loans are evaluated based on the criteria stated above on a quarterly basis and any change in the reserve requirements are recorded in the period identified. All partially charged-off loans remain on nonaccrual status until they are brought current as to both principal and interest and have at least nine months of payment history and future collectability of principal and interest is assured.

Impaired loans are set forth in the following tables.

December 31, 2012	Recorded Investment		Unpaid Principal Balance		Related Allowance
	(Amounts in thousands)
With no related allowance recorded:
Commercial and Industrial	$	248	$	315	$	—
Real Estate Construction:
Residential		800		2,126		—
Commercial		12,891		12,891		—
Real Estate Mortgage:
Commercial – Owner Occupied		876		1,031		—
Commercial – Non-owner Occupied		19,228		22,027		—
Residential – 1 to 4 Family		8,945		9,372		—
Residential – Multifamily		2,838		2,838		—
Consumer		188		188		—
		46,014		50,788		—
With an allowance recorded:
Commercial and Industrial		500		500		10
Real Estate Construction:
Residential		187		661		24
Commercial		1,988		2,045		96
Real Estate Mortgage:
Commercial – Owner Occupied		5,718		5,748		216
Commercial – Non-owner Occupied		29,187		29,187		1,053
Residential – 1 to 4 Family		3,605		4,290		301
Residential – Multifamily		377		377		6
Consumer		—		—		—
		41,562		42,808		1,706
Total:
Commercial and Industrial		748		815		10
Real Estate Construction:
Residential		987		2,787		24
Commercial		14,879		14,936		96
Real Estate Mortgage:
Commercial – Owner Occupied		6,594		6,779		216
Commercial – Non-owner Occupied		48,415		51,214		1,053
Residential – 1 to 4 Family		12,550		13,662		301
Residential – Multifamily		3,215		3,215		6
Consumer		188		188		—
	$	87,576	$	93,596	$	1,706

December 31, 2011	Recorded Investment		Unpaid Principal Balance		Related Allowance
	(Amounts in thousands)
With no related allowance recorded:
Commercial and Industrial	$	603	$	603	$	—
Real Estate Construction:
Residential		4,440		5,246		—
Commercial		12,898		13,118		—
Real Estate Mortgage:
Commercial – Owner Occupied		6,946		6,946		—
Commercial – Non-owner Occupied		30,424		30,852		—
Residential – 1 to 4 Family		8,477		10,737		—
Residential – Multifamily		597		667		—
Consumer		229		229		—
		64,614		68,398		—
With an allowance recorded:
Commercial and Industrial		—		—		—
Real Estate Construction:
Residential		4,170		5,151		1,297
Commercial		3,329		3,329		380
Real Estate Mortgage:
Commercial – Owner Occupied		590		590		23
Commercial – Non-owner Occupied		17,820		17,940		2,526
Residential – 1 to 4 Family		3,388		3,589		600
Residential – Multifamily		3,268		3,268		33
Consumer		—		—		—
		32,565		33,867		4,859
Total:
Commercial and Industrial		603		603		—
Real Estate Construction:
Residential		8,610		10,397		1,297
Commercial		16,227		16,447		380
Real Estate Mortgage:
Commercial – Owner Occupied		7,536		7,536		23
Commercial – Non-owner Occupied		48,244		48,792		2,526
Residential – 1 to 4 Family		11,865		14,326		600
Residential – Multifamily		3,865		3,935		33
Consumer		229		229		—
	$	97,179	$	102,265	$	4,859

The following table presents by loan portfolio class, the average recorded investment and interest income recognized on impaired loans for the years ended December 31, 2012 and 2011:

	Year Ended December 31,
	2012				2011
	Average Recorded Investment		Interest Income Recognized		Average Recorded Investment		Interest Income Recognized
	(Amounts in thousands)
Commercial and Industrial	$	776	$	18	$	599	$	25
Real Estate Construction:
Residential		1,898		57		11,978		377
Commercial		14,933		202		16,164		475
Real Estate Mortgage:
Commercial – Owner Occupied		6,854		251		7,590		215
Commercial – Non-owner Occupied		51,883		2,007		50,907		2,649
Residential – 1 to 4 Family		13,174		389		14,921		334
Residential – Multifamily		3,526		216		4,688		288
Consumer		189		2		231		12
Total	$	93,233	$	3,142	$	107,078	$	4,375

Troubled debt restructurings: Periodically management evaluates our loans in order to determine the appropriate risk rating, interest accrual status and potential classification as a TDR, some of which are performing and accruing interest. A TDR is a loan on which we have granted a concession due to a borrower's financial difficulty. These are concessions that would not otherwise be considered. The terms of these modified loans may include extension of maturity, renewals, changes in interest rate, additional collateral requirements or infusion of additional capital into the project by the borrower to reduce debt or to support future debt service. On construction and land development loans we may modify the loan as a result of delays or other project issues such as slower than anticipated sell-outs, insufficient leasing activity and/or a decline in the value of the underlying collateral securing the loan. Management believes that working with a borrower to restructure a loan provides us with a better likelihood of collecting our loan. It is our policy not to renegotiate the terms of a commercial loan simply because of a delinquency status. However, we will use our Troubled Debt Restructuring Program to work with delinquent borrowers when the delinquency is temporary. We consider all loans modified in a troubled debt restructuring to be impaired.

At the time a loan is modified in a TDR, we consider the following factors to determine whether the loan should accrue interest:

·   Whether there is a period of current payment history under the current terms, typically 6 months;

·   Whether the loan is current at the time of restructuring; and

·   Whether we expect the loan to continue to perform under the restructured terms with a debt coverage ratio that complies with the Bank's credit underwriting policy of 1.25 times debt service.

We also review the financial performance of the borrower over the past year to be reasonably assured of repayment and performance according to the modified terms. This review consists of an analysis of the borrower's historical results; the borrower's projected results over the next four quarters; current financial information of the borrower and any guarantors. The projected repayment source needs to be reliable, verifiable, quantifiable and sustainable. In addition, all TDRs are reviewed quarterly to determine the amount of any impairment.

At the time of restructuring, the amount of the loan principal for which we are not reasonably assured of repayment is charged-off, but not forgiven.

A borrower with a restructured loan must make a minimum of six consecutive monthly payments at the restructured level and be current as to both interest and principal to be on accrual status.

Performing TDRs (not reported as non-accrual loans) totaled $40.0 million and $41.1 million with related allowances of $1.4 million and $213,000 as of December 31, 2012 and December 31, 2011, respectively. Non-performing TDRs totaled $27.1 million and $25.8 million with related allowances of $8,000 and $3.8 million as of December 31, 2012 and December 31, 2011, respectively. All TDRs are classified as impaired loans and are included in the impaired loan disclosures above.

The following two tables detail loans modified during the years ended December 31, 2012 and 2011, including the number of modifications, the recorded investment both pre and post modification and the nature of the modifications made.

	2012					2011
	Number of Contracts	Pre-Modification Outstanding Recorded Investment		Post-Modification Outstanding Recorded Investment		Number of Contracts	Pre-Modification Outstanding Recorded Investment		Post-Modification Outstanding Recorded Investment
	(Amounts in thousands)
Commercial and Industrial	2	$	750	$	750	1	$	594	$	594
Construction:
Residential	1		415		415	2		2,150		959
Commercial	11		9,938		9,938	—		—		—
Real Estate Mortgage:
Commercial – Owner Occupied	1		3,220		3,220	2		682		315
Commercial – Non-owner Occupied	3		4,067		4,067	3		5,543		5,543
Residential – 1-4 Family	3		4,168		4,168	4		6,250		6,250
Residential – Multifamily	1		380		380	2		506		506
Consumer	—		—		—	—		—		—
Total	22	$	22,938	$	22,938	14	$	15,725	$	14,167

	2012								2011
	Extension		Period of Interest Only			Interest Rate Reduction	Total		Extension		Period of Interest Only		Interest Rate Reduction		Total
	(Amounts in thousands)
Commercial and Industrial	$	500	$	—	$	250	$	750	$	—	$	—	$	594	$	594
Construction:
Residential		—		—		415		415		—		—		2,150		2,150
Commercial		8,008		—		1,930		9,938		—		—		—		—
Real Estate Mortgage:
Commercial – Owner Occupied		3,220		—		—		3,220		—		—		682		682
Commercial – Non-owner Occupied		1,156		—		2,911		4,067		—		1,505		4,038		5,543
Residential – 1-4 Family		924		—		3,244		4,168		—		—		6,250		6,250
Residential – Multifamily		—		380		—		380		—		—		506		506
Consumer		—		—		—		—		—		—		—		—
Total	$	13,808	$	380	$	8,750	$	22,938	$	—	$	1,505	$	14,220	$	15,725

The following table shows loans that were modified and deemed TDRs that subsequently defaulted during 2012 and 2011.

	2012			2011
	Number of Contracts	Recorded Investment		Number of Contracts	Recorded Investment
	(Amounts in thousands)
Commercial and Industrial	1	$	603	—	$	—
Real Estate Construction:
Residential	1		1,004	1		316
Commercial	10		8,508	—		—
Real Estate Mortgage:
Commercial – Owner Occupied	—		—	5		4,131
Commercial – Non-owner Occupied	3		4,779	2		5,451
Residential – 1-4 Family	5		4,020	1		929
Residential – Multifamily	1		3,267	—		—
Consumer	—		—	1		137
Total	21	$	22,181	10	$	10,964

Some loan modifications classified as TDRs may not ultimately result in the full collection of principal and interest, as modified, and result in potential incremental losses. These potential incremental losses have been factored into our overall allowance for loan losses estimate. The level of any re-defaults will likely be affected by future economic conditions. Once a loan becomes a TDR, it will continue to be reported as a TDR until it is repaid in full, foreclosed, sold or it meets the criteria to be removed from TDR status.

Credit Quality Indicators:  As part of the on-going monitoring of the credit quality of the Company's loan portfolio, management tracks certain credit quality indicators including trends related to the risk grades of loans, the level of classified loans, net charge-offs, nonperforming loans (see details above) and the general economic conditions in the region.

The Company utilizes a risk grading matrix to assign a risk grade to each of its loans. Loans are graded on a scale of 1 to 7. Grades 1 through 4 are considered "Pass". A description of the general characteristics of the seven risk grades is as follows:

1.   Good:  Borrower exhibits the strongest overall financial condition and represents the most creditworthy profile.

2.   Satisfactory (A):  Borrower reflects a well-balanced financial condition, demonstrates a high level of creditworthiness and typically will have a strong banking relationship with Parke Bank.

3.   Satisfactory (B):  Borrower exhibits a balanced financial condition and does not expose the Bank to more than a normal or average overall amount of risk.  Loans are considered fully collectable.

4.   Watch List:  Borrower reflects a fair financial condition, but there exists an overall greater than average risk. Risk is deemed acceptable by virtue of increased monitoring and control over borrowings.  Probability of timely repayment is present.

5.   Other Assets Especially Mentioned (OAEM):  Financial condition is such that assets in this category have a potential weakness or pose unwarranted financial risk to the Bank even though the asset value is not currently impaired.  The asset does not currently warrant adverse classification but if not corrected could weaken and could create future increased risk exposure. Includes loans which require an increased degree of monitoring or servicing as a result of internal or external changes.

6.   Substandard:  This classification represents more severe cases of #5 (OAEM) characteristics that require increased monitoring.  Assets are characterized by the distinct possibility that the Bank will sustain some loss if the deficiencies are not corrected. Assets are inadequately protected by the current net worth and paying capacity of the borrower or of the collateral. Asset has a well-defined weakness or weaknesses that impairs the ability to repay debt and jeopardizes the timely liquidation or realization of the collateral at the asset's net book value.

7.   Doubtful:  Assets which have all the weaknesses inherent in those assets classified #6 (Substandard) but the risks are more severe relative to financial deterioration in capital and/or asset value; accounting/evaluation techniques may be questionable and the overall possibility for collection in full is highly improbable. Borrowers in this category require constant monitoring, are considered work out loans and present the potential for future loss to the bank.

An analysis of the credit risk profile by internally assigned grades as of December 31, 2012 and 2011 is as follows:

At December 31, 2012	Pass		OAEM		Substandard		Doubtful		Total
	(Amounts in thousands)
Commercial and Industrial	$	18,926	$	2,183	$	816	$	—	$	21,925
Real Estate Construction:
Residential		6,345		—		986		—		7,331
Commercial		20,097		—		21,778		—		41,875
Real Estate Mortgage:
Commercial – Owner Occupied		150,990		1,121		5,505		—		157,616
Commercial – Non-owner Occupied		173,606		11,399		36,726		—		221,731
Residential – 1 to 4 Family		126,167		2,263		11,734		—		140,164
Residential – Multifamily		16,863		1,103		3,215		—		21,181
Consumer		17,701		—		188		—		17,889
Total	$	530,695	$	18,069	$	80,948	$	—	$	629,712

At December 31, 2011	Pass		OAEM		Substandard		Doubtful		Total
	(Amounts in thousands)
Commercial and Industrial	$	16,033	$	7,500	$	603	$	—	$	24,136
Real Estate Construction:
Residential		12,327		350		8,610		—		21,287
Commercial		23,898		—		26,463		—		50,361
Real Estate Mortgage:
Commercial – Owner Occupied		137,200		3,840		6,409		—		147,449
Commercial – Non-owner Occupied		156,277		10,430		37,509		—		204,216
Residential – 1 to 4 Family		120,658		4,360		13,750		—		138,768
Residential – Multifamily		16,261		3,268		597		—		20,126
Consumer		18,500		—		274		—		18,774
Total	$	501,154	$	29,748	$	94,215	$	—	$	625,117

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Investment Securities

12 Months Ended

Dec. 31, 2012

Investment Securities [Abstract]

Investment Securities

Note  3.   Investment Securities

The following is a summary of the Company's investment in available for sale and held to maturity securities as of December 31, 2012 and 2011: 

As of December 31, 2012	Amortized cost		Gross unrealized gains		Gross unrealized losses		Other than temporary impairments in OCI		Fair value
Available for sale:	(Amounts in thousands)
U.S. Government sponsored entities	$	7	$	—	$	—	$	—	$	7
Corporate debt obligations		1,500		24		—		—		1,524
Residential mortgage-backed securities		12,359		540		—		—		12,899
Collateralized mortgage obligations		916		58		—		—		974
Collateralized debt obligations		5,556		—		1,121		499		3,936
Total available for sale	$	20,338	$	622	$	1,121	$	499	$	19,340
Held to maturity:
States and political subdivisions	$	2,066	$	173	$	—	$	—	$	2,239

 

As of December 31, 2011	Amortized cost		Gross unrealized gains		Gross unrealized losses		Other than temporary impairments in OCI		Fair value
Available for sale:	(Amounts in thousands)
U.S. Government sponsored entities	$	1,006	$	5	$	—	$	—	$	1,011
Corporate debt obligations		1,500		43		57		—		1,486
Residential mortgage-backed securities		13,697		764		—		—		14,461
Collateralized mortgage obligations		1,534		73		—		13		1,594
Collateralized debt obligations		5,556		—		1,080		511		3,965
Total available for sale	$	23,293	$	885	$	1,137	$	524	$	22,517
Held to maturity:
States and political subdivisions	$	2,032	$	87	$	39	$	—	$	2,080

The amortized cost and fair value of debt securities classified as available for sale and held to maturity, by contractual maturity, as of December 31, 2012, are as follows:

	Amortized Cost		Fair Value
	(Amounts in thousands)
Available for sale:
Due within one year	$	—	$	—
Due after one year through five years		—		—
Due after five years through ten years		2,958		3,001
Due after ten years		7,062		5,467
Residential mortgage-backed securities and collateralized mortgage obligations		10,318		10,872
Total available for sale	$	20,338	$	19,340

Held to maturity:
Due within one year	$	—	$	—
Due after one year through five years		—		—
Due after five years through ten years		—		—
Due after ten years		2,066		2,239
Total held to maturity	$	2,066	$	2,239

Expected maturities will differ from contractual maturities for mortgage related securities because the issuers of certain debt securities do have the right to call or prepay their obligations without any penalties.

There were no sales of investment securities during the year ending December 31, 2012. During the year ending December 31, 2011, the Company sold one investment security with a carrying value of $500 thousand, recognizing a gain of $1 thousand.

As of December 31, 2012 and 2011, approximately $10.3 million and $8.9 million, respectively, of investment securities are pledged as collateral for borrowed funds (Note 9).  In addition, securities with a carrying value of $4.2 million and $8.4 million, respectively, were pledged to secure public deposits at December 31, 2012 and 2011.

The following tables show the gross unrealized losses and fair value of the Company's investments with unrealized losses that are not deemed to be other than temporarily impaired ("OTTI"), aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, at December 31, 2012 and December 31, 2011:

As of December 31, 2012	Less Than 12 Months				12 Months or Greater				Total
Description of Securities	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
	(Amounts in thousands)
Available for sale:
Collateralized debt obligations		—		—		3,629		1,121		3,629		1,121
Total available for sale	$	—	$	—	$	3,629	$	1,121	$	3,629	$	1,121
Held to maturity:
States and political subdivisions	$	—	$	—	$	—	$	—	$	—	$	—

As of December 31, 2011	Less Than 12 Months				12 Months or Greater				Total
Description of Securities	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
	(Amounts in thousands)
Available for sale:
Corporate debt obligations		—		—		443		57		443		57
Collateralized debt obligations		—		—		3,670		1,080		3,670		1,080
Total available for sale	$	—	$	—	$	4,113	$	1,137	$	4,113	$	1,137
Held to maturity:
States and political subdivisions	$	758	$	39	$	—	$	—	$	758	$	39

Collateralized Debt Obligations:  The Company's unrealized loss on investments in collateralized debt obligations ("CDOs") relates to three securities issued by financial institutions, totaling $3.6 million with an unrealized loss of 30.0% at December 31, 2012. CDOs are pooled securities primarily secured by trust preferred securities ("TruPS"), subordinated debt and surplus notes issued by small and mid-sized banks and insurance companies. These securities are generally floating rate instruments with 30-year maturities, and are callable at par by the issuer after five years. The current economic downturn has had a significant adverse impact on the financial services industry; consequently, TruPS CDOs do not have an active trading market. With the assistance of competent third-party valuation specialists, the Company utilized the following methodology to determine the fair value:

Cash flows were developed based on the estimated speeds at which the TruPS are expected to prepay, the estimated rates at which the TruPS are expected to defer payments, the estimated rates at which the TruPS are expected to default, and the severity of the losses on securities which default. TruPS generally allow for prepayment by the issuer without a prepayment penalty any time after five years. Due to the lack of new TruPS issuances and the relatively poor conditions of the financial institution industry, a relatively modest rate of prepayment was assumed going forward. Estimates for conditional default rates ("CDR") are based on the payment characteristics of the TruPS themselves (e.g. current, deferred, or defaulted) as well as the financial condition of the TruPS issuers in the pool. Estimates for the near-term rates of deferral and CDR are based on key financial ratios relating to the financial institutions' capitalization, asset quality, profitability and liquidity. Finally, we consider whether or not the financial institution has received TARP funding, and if it has, the amount. Longer-term rates of deferral and defaults on based on historical averages. The fair value of each bond was assessed by discounting their projected cash flows by a discount rate.  The discount rates were based on the yields of publicly traded TruPS and preferred stock issued by comparably rated banks.  The fair value for previous reporting periods was based on indicative market bids and resulted in much lower values due to the inactive trading market.

The underlying issuers have been analyzed, and projections have been made regarding the future performance, considering factors including defaults and interest deferrals.  The analysis indicates that the Company should expect to receive all contractual cash flows.  Because the Company does not intend to sell the investment and it is not more likely than not that the Company will be required to sell the investment before recovery of its amortized cost basis, which may be maturity, it does not consider these investments to be other than temporarily impaired at December 31, 2012 or December 31, 2011.

Other Than Temporarily Impaired Debt Securities

We assess whether we intend to sell or it is more likely than not that we will be required to sell a security before recovery of its amortized cost basis less any current-period credit losses. For debt securities that are considered other than temporarily impaired and that we do not intend to sell and will not be required to sell prior to recovery of our amortized cost basis, we separate the amount of the impairment into the amount that is credit related (credit loss component) and the amount due to all other factors. The credit loss component is recognized in earnings and is the difference between the security's amortized cost basis and the present value of its expected future cash flows. The remaining difference between the security's fair value and the present value of future expected cash flows is due to factors that are not credit related and is recognized in other comprehensive income.

The present value of expected future cash flows is determined using the best estimate of cash flows discounted at the effective interest rate implicit to the security at the date of purchase or the current yield to accrete an asset-backed or floating rate security. The methodology and assumptions for establishing the best estimate of cash flows vary depending on the type of security. The asset-backed securities' cash flow estimates are based on bond-specific facts and circumstances that may include collateral characteristics, expectations of delinquency and default rates, loss severity and prepayment speeds and structural support, including subordination and guarantees. The corporate bond cash flow estimates are derived from scenario-based outcomes of expected corporate restructurings or the disposition of assets using bond specific facts and circumstances including timing, security interests and loss severity.

We have a process in place to identify debt securities that could potentially have a credit impairment that is other than temporary.  This process involves monitoring late payments, pricing levels, downgrades by rating agencies, key financial ratios, financial statements, revenue forecasts and cash flow projections as indicators of credit issues.  On a quarterly basis, we review all securities to determine whether an OTTI exists and whether losses should be recognized. We consider relevant facts and circumstances in evaluating whether a credit or interest rate-related impairment of a security is other than temporary. Relevant facts and circumstances considered include: (1) the extent and length of time the fair value has been below cost; (2) the reasons for the decline in value; (3) the financial position and access to capital of the issuer, including the current and future impact of any specific events and (4) for fixed maturity securities, our intent to sell a security or whether it is more likely than not we will be required to sell the security before the recovery of its amortized cost which, in some cases, may extend to maturity and for equity securities, our ability and intent to hold the security for a period of time that allows for the recovery in value.

The following table presents a roll-forward of the credit loss component of the amortized cost of debt securities that we have written down for OTTI and the credit component of the loss that is recognized in earnings. OTTI recognized in earnings for credit-impaired debt securities is presented as additions in two components based upon whether the current period is the first time the debt security was credit-impaired (initial credit impairment) or is not the first time the debt security was credit impaired (subsequent credit impairments). The credit loss component is reduced if we sell, intend to sell or believe we will be required to sell previously credit-impaired debt securities. Additionally, the credit loss component is reduced if we receive cash flows in excess of what we expected to receive over the remaining life of the credit-impaired debt security, the security matures or is fully written down. Changes in the credit loss component of credit-impaired debt securities were as follows for 2012 and 2011.

	2012			2011
	(Amounts in thousands)
Beginning balance	$	1,950		$	2,657
Initial credit impairment		—			—
Subsequent credit impairments		—			129
Reductions for amounts recognized in earnings due to intent or requirement to sell		—			—
Reductions for securities sold		—			—
Reductions for securities deemed worthless(1)		(731	)		(836	)
Reductions for increases in cash flows expected to be collected		—			—
Ending balance	$	1,219		$	1,950

(1) Reduction due to credit losses applied to private label CMO tranche.

A summary of investment gains and losses recognized in income during the years ended December 31, 2012 and 2011 are as follows:

	2012		2011
	(Amounts in thousands)
Available for sale securities:
Realized gains	$	—	$	1
Realized (losses)		—		—
Other than temporary impairment		—		(130	)
Total available for sale securities	$	—	$	(129	)
Held to maturity securities:
Realized gains	$	—	$	—
Realized (losses)		—		—
Other than temporary impairment		—		—
Total held to maturity securities	$	—	$	—

The Company did not recognize a loss in 2012, but recognized a $129 thousand loss during 2011, of OTTI losses on available for sale securities, attributable to impairment charges recognized on privately issued CMOs.

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Commitments and Contingencies

12 Months Ended

Dec. 31, 2012

Commitments and Contingencies [Abstract]

Commitments and Contingencies

Note  15.   Commitments and Contingencies

The Company has entered into an employment contract with the President of the Company, which provides for continued payment of certain employment salaries and benefits in the event of a change in control, as defined.

The Company is a party to financial instruments with off-balance sheet risk in the normal course of business to meet the financing needs of its customers.  These financial instruments include commitments to extend credit and standby letters of credit.  These instruments involve, to varying degrees, elements of credit risk in excess of the amount recognized in the consolidated balance sheet.  The contract or notional amounts of these instruments reflect the extent of the Company's involvement in these particular classes of financial instruments.  The Company's exposure to credit loss in the event of nonperformance by the other party to the financial instruments for commitments to extend credit and standby letters of credit is represented by the contractual or notional amount of those instruments.  The Company uses the same credit policies in making commitments and conditional obligations as they do for on-balance sheet instruments.

Commitments to extend credit are agreements to lend to a customer as long as there is no violation of any condition established in the contract.  Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee.  Since many of the commitments are expected to expire without being drawn upon, the total commitment amounts do not necessarily represent future cash requirements.  The Company evaluates each customer's credit-worthiness on a case-by-case basis.  The amount of collateral obtained, if deemed necessary upon extension of credit, is based on management's credit evaluation.  Collateral held varies but may include accounts receivable; inventory; property, plant and equipment and income-producing commercial properties.  As of December 31, 2012 and 2011, commitments to extend credit amounted to approximately $50.8 million and $54.8 million, respectively.

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 December 31, 2012 and 2011, standby letters of credit with customers were $5.8 million and $6.9 million, respectively.

Loan commitments and standby letters of credit are issued in the ordinary course of business to meet customer needs.  Commitments to fund fixed-rate loans were immaterial at December 31, 2012.  Variable-rate commitments are generally issued for less than one year and carry market rates of interest.  Such instruments are not likely to be affected by annual rate caps triggered by rising interest rates.  Management believes that off-balance sheet risk is not material to the results of operations or financial condition.

In the normal course of business, there are outstanding various contingent liabilities such as claims and legal action, which are not reflected in the financial statements.  In the opinion of management, no material losses are anticipated as a result of these actions or claims.

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Retirement Plans

12 Months Ended

Dec. 31, 2012

Retirement Plans [Abstract]

Retirement Plans

Note  11.   Retirement Plans

The Company has a Supplemental Executive Retirement Plan ("SERP") covering certain members of management.  The net periodic SERP pension cost was approximately $135 thousand in 2012 and $353 thousand in 2011.  The unfunded benefit obligation, which was included in other liabilities, was approximately $3,137,000 at December 31, 2012 and $3,002,000 at December 31, 2011.

The benefit obligation at December 31, 2012 and December 31, 2011 was calculated as follows:

	2012			2011
	(Amounts in thousands)
Benefit obligation, January 1	$	3,002		$	2,649
Service cost		(6	)		232
Interest cost		165			120
(Gain) loss		(24	)		1
Benefit obligation, December 31	$	3,137		$	3,002

The net periodic pension cost for 2012 and 2011 was calculated as follows:

	2012			2011
	(Amounts in thousands)
Service cost	$	(6	)	$	232
Interest cost		165			120
(Gain) loss		(24	)		1
Prior service cost recognized		—			—
	$	135		$	353

The discount rate used in determining the actuarial present value of the projected benefit obligation was 5.5% for both 2012 and 2011.  Annual benefit payments are estimated at $0 for 2013 through 2015, $113 thousand for 2016, $227 thousand for 2017, $287 thousand for 2018, $318 thousand for 2019 through 2022 and $4.0 million thereafter.

The Company has a 401K Plan covering substantially all employees.  Under the Plan, the Company is required to contribute 3% of all qualifying employees' eligible salary to the Plan. The Plan expense in 2012 was $109 thousand and $98 thousand in 2011.

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OREO

12 Months Ended

Dec. 31, 2012

OREO [Abstract]

OREO

Note  7.   OREO

OREO at December 31, 2012 was $26.1 million, compared to $19.4 million at December 31, 2011, an increase of $6.7 million. The real estate owned consisted of 33 properties, the largest being a condominium development at $12.8 million. This property was sold in 2010 but does not qualify for a sales treatment under GAAP because of continuing involvement by the Company in the form of financing.During 2012, the Company disposed of $3.5 million of OREO, recognizing a loss of $388,000 compared to $3.5 million of OREO sold in 2011, recognizing a loss of $44,000. Also during 2012, the Company wrote down OREO property by $611,000 compared to $514,000 in 2011, based on a decline in appraised values. In addition, the Company contributed a house carried at $139,000 to Habitat for Humanity. There was no valuation allowance related to OREO as of December 31, 2012 and 2011. Operating expenses related to OREO, net of related income, for 2012 and 2011, were $1.5 million and $642,000, respectively.

An analysis of OREO activity for the years ended December 31, 2012 and 2011 is as follows:

	For the Year Ended December 31,
	2012			2011
	(Amounts in thousands)
Balance at beginning of period	$	19,410		$	16,701
Real estate acquired in settlement of loans		11,095			1,879
Sales of real estate		(3,533	)		(3,414	)
Loss on sale of real estate		(388	)		(44	)
Write-down of real estate carrying values		(611	)		(514	)
Contribution of OREO property		(139	)		—
Capitalized improvements to real estate		223			4,802
Balance at end of period	$	26,057		$	19,410

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Fair Value (Details) (USD $)	12 Months Ended
	Dec. 31, 2012		Dec. 31, 2011
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Severity of the losses on securities (in hundredths)	95.00%
Trust preferred securities maturity period	5 years
Discounted cash flow hedging	3 month LIBOR plus a spread of 400 to 959 basis points
Assets and liabilities measured at fair value on a recurring basis [Abstract]
Securities Available for Sale	$ 19,340,000		$ 22,517,000
Fair value on a non-recurring basis [Abstract]
Carrying amount of impaired loans receivable	56,600,000		73,000,000
Valuation allowance	282,000		2,600
Changes in Level 3 assets measured at fair value on a recurring basis [Roll Forward]
Beginning balance	4,122,000		4,560,000
Total net losses included in [Abstract]
Net loss	(128,000)		(129,000)
Other comprehensive income (loss)	(52,000)		(107,000)
Settlements	0		(202,000)
Net transfers into Level 3	0		0
Ending balance	3,942,000		4,122,000
Minimum [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Trust preferred securities expected to prepay (in hundredths)	1.00%
Trust preferred securities expected to default (in hundredths)	0.57%
Variable basis point of discounted cash flow hedging (in hundredths)	4.00%
Fair value on a non-recurring basis [Abstract]
Underlying collateral less cost to sell percentage (in hundredths)	5.00%
Maximum [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Trust preferred securities expected to prepay (in hundredths)	2.00%
Trust preferred securities expected to default (in hundredths)	0.66%
Variable basis point of discounted cash flow hedging (in hundredths)	9.59%
Fair value on a non-recurring basis [Abstract]
Underlying collateral less cost to sell percentage (in hundredths)			10.00%
Carrying Value [Member]
Financial Assets [Abstract]
Investment securities (available-for-sale and held-to-maturity)	21,406,000	[1]	24,549,000	[1]
Loans, net	610,776,000	[2]	605,794,000	[2]
Carrying Value [Member] | Level 1 [Member]
Financial Assets [Abstract]
Cash and cash equivalents	76,866,000		110,228,000
Carrying Value [Member] | Level 2 [Member]
Financial Assets [Abstract]
Restricted stock	2,223,000		3,565,000
Loans held for sale	495,000		225,000
Accrued interest receivable	2,727,000		3,039,000
Financial Liabilities [Abstract]
Demand and savings deposits	367,159,000		356,440,000
Time deposits	270,048,000		278,415,000
Borrowings	43,851,000		74,010,000
Accrued interest payable	537,000		618,000
Fair Value [Member]
Financial Assets [Abstract]
Investment securities (available-for-sale and held-to-maturity)	21,406,000	[1]	24,597,000	[1]
Loans, net	632,723,000	[2]	622,801,000	[2]
Fair Value [Member] | Level 1 [Member]
Financial Assets [Abstract]
Cash and cash equivalents	76,866,000		110,228,000
Fair Value [Member] | Level 2 [Member]
Financial Assets [Abstract]
Restricted stock	2,223,000		3,565,000
Loans held for sale	495,000		225,000
Accrued interest receivable	2,727,000		3,039,000
Financial Liabilities [Abstract]
Demand and savings deposits	367,159,000		356,440,000
Time deposits	271,786,000		280,147,000
Borrowings	42,849,000		79,997,000
Accrued interest payable	537,000		618,000
Recurring [Member]
Assets and liabilities measured at fair value on a recurring basis [Abstract]
Securities Available for Sale	19,340,000		22,517,000
Recurring [Member] | Level 1 [Member]
Assets and liabilities measured at fair value on a recurring basis [Abstract]
Securities Available for Sale	0		0
Recurring [Member] | Level 2 [Member]
Assets and liabilities measured at fair value on a recurring basis [Abstract]
Securities Available for Sale	15,398,000		18,395,000
Recurring [Member] | Level 3 [Member]
Assets and liabilities measured at fair value on a recurring basis [Abstract]
Securities Available for Sale	3,942,000		4,122,000
Recurring [Member] | U.S. Government sponsored entities [Member]
Assets and liabilities measured at fair value on a recurring basis [Abstract]
Securities Available for Sale	7,000		1,011,000
Recurring [Member] | U.S. Government sponsored entities [Member] | Level 1 [Member]
Assets and liabilities measured at fair value on a recurring basis [Abstract]
Securities Available for Sale	0		0
Recurring [Member] | U.S. Government sponsored entities [Member] | Level 2 [Member]
Assets and liabilities measured at fair value on a recurring basis [Abstract]
Securities Available for Sale	7,000		1,011,000
Recurring [Member] | U.S. Government sponsored entities [Member] | Level 3 [Member]
Assets and liabilities measured at fair value on a recurring basis [Abstract]
Securities Available for Sale	0		0
Recurring [Member] | Corporate debt obligations [Member]
Assets and liabilities measured at fair value on a recurring basis [Abstract]
Securities Available for Sale	1,524,000		1,486,000
Recurring [Member] | Corporate debt obligations [Member] | Level 1 [Member]
Assets and liabilities measured at fair value on a recurring basis [Abstract]
Securities Available for Sale	0		0
Recurring [Member] | Corporate debt obligations [Member] | Level 2 [Member]
Assets and liabilities measured at fair value on a recurring basis [Abstract]
Securities Available for Sale	1,524,000		1,486,000
Recurring [Member] | Corporate debt obligations [Member] | Level 3 [Member]
Assets and liabilities measured at fair value on a recurring basis [Abstract]
Securities Available for Sale	0		0
Recurring [Member] | Residential mortgage-backed securities [Member]
Assets and liabilities measured at fair value on a recurring basis [Abstract]
Securities Available for Sale	12,899,000		14,461,000
Recurring [Member] | Residential mortgage-backed securities [Member] | Level 1 [Member]
Assets and liabilities measured at fair value on a recurring basis [Abstract]
Securities Available for Sale	0		0
Recurring [Member] | Residential mortgage-backed securities [Member] | Level 2 [Member]
Assets and liabilities measured at fair value on a recurring basis [Abstract]
Securities Available for Sale	12,899,000		14,461,000
Recurring [Member] | Residential mortgage-backed securities [Member] | Level 3 [Member]
Assets and liabilities measured at fair value on a recurring basis [Abstract]
Securities Available for Sale	0		0
Recurring [Member] | Collateralized mortgage-backed securities [Member]
Assets and liabilities measured at fair value on a recurring basis [Abstract]
Securities Available for Sale	974,000		1,594,000
Recurring [Member] | Collateralized mortgage-backed securities [Member] | Level 2 [Member]
Assets and liabilities measured at fair value on a recurring basis [Abstract]
Securities Available for Sale	968,000		1,437,000
Recurring [Member] | Collateralized mortgage-backed securities [Member] | Level 3 [Member]
Assets and liabilities measured at fair value on a recurring basis [Abstract]
Securities Available for Sale	6,000		157,000
Recurring [Member] | Collateralized debt obligations [Member]
Assets and liabilities measured at fair value on a recurring basis [Abstract]
Securities Available for Sale	3,936,000		3,965,000
Recurring [Member] | Collateralized debt obligations [Member] | Level 1 [Member]
Assets and liabilities measured at fair value on a recurring basis [Abstract]
Securities Available for Sale	0		0
Recurring [Member] | Collateralized debt obligations [Member] | Level 2 [Member]
Assets and liabilities measured at fair value on a recurring basis [Abstract]
Securities Available for Sale	0		0
Recurring [Member] | Collateralized debt obligations [Member] | Level 3 [Member]
Assets and liabilities measured at fair value on a recurring basis [Abstract]
Securities Available for Sale	3,936,000		3,965,000
Nonrecurring [Member]
Fair value on a non-recurring basis [Abstract]
Collateral dependent impaired loans	56,620,000		72,958,000
OREO	26,027,000		19,410,000
Nonrecurring [Member] | Level 1 [Member]
Fair value on a non-recurring basis [Abstract]
Collateral dependent impaired loans	0		0
OREO	0		0
Nonrecurring [Member] | Level 2 [Member]
Fair value on a non-recurring basis [Abstract]
Collateral dependent impaired loans	0		0
OREO	0		0
Nonrecurring [Member] | Level 3 [Member]
Fair value on a non-recurring basis [Abstract]
Collateral dependent impaired loans	56,620,000		72,958,000
OREO	$ 26,027,000		$ 19,410,000

[1] See the recurring fair value table above.

[2] For non-impaired loans, Level 2; for impaired loans, Level 3.

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Allowance for Loan Losses

12 Months Ended

Dec. 31, 2012

Allowance for Loan Losses [Abstract]

Allowance for Loan Losses

Note  5.   Allowance for Loan Losses

The allowance for loan losses is a reserve established through a provision for loan losses charged to expense, which represents management's best estimate of probable losses that have been incurred within the existing portfolio of loans. The allowance, in the judgment of management, is necessary to reserve for estimated loan losses and risks inherent in the loan portfolio. The Company's allowance for loan loss methodology includes allowance allocations calculated in accordance with ASC Topic 310, "Receivables" and allowance allocations calculated in accordance with ASC Topic 450, "Contingencies." Accordingly, the methodology is based on historical loss experience by type of credit and internal risk grade, specific homogeneous risk pools and specific loss allocations, with adjustments for current events and conditions. The Company's process for determining the appropriate level of the allowance for loan losses is designed to account for credit deterioration as it occurs. The provision for loan losses reflects loan quality trends, including the levels of and trends related to nonaccrual loans, past due loans, potential problem loans, criticized loans and net charge-offs or recoveries, among other factors. The provision for possible loan losses also reflects the totality of actions taken on all loans for a particular period. In other words, the amount of the provision reflects not only the necessary increases in the allowance for loan losses related to newly identified criticized loans, but it also reflects actions taken related to other loans including, among other things, any necessary increases or decreases in required allowances for specific loans or loan pools.

The level of the allowance reflects management's continuing evaluation of industry concentrations, specific credit risks, loan loss experience, current loan portfolio quality, present economic, political and regulatory conditions and unidentified losses inherent in the current loan portfolio. Portions of the allowance may be allocated for specific credits; however, the entire allowance is available for any credit that, in management's judgment, should be charged off. While management utilizes its best judgment and information available, the ultimate adequacy of the allowance is dependent upon a variety of factors beyond the Company's control, including, among other things, the performance of the Company's loan portfolio, the economy, changes in interest rates and the view of the regulatory authorities toward loan classifications.

The allowances established for probable losses on specific loans are based on a regular analysis and evaluation of problem loans. Loans are classified based on an internal credit risk grading process that evaluates, among other things: (i) the obligor's ability to repay; (ii) the underlying collateral, if any; and (iii) the economic environment and industry in which the borrower operates. This analysis is performed at the relationship manager level for all commercial loans. When a loan has a grade of 6 or higher, the loan is analyzed to determine whether the loan is impaired and, if impaired, the need to specifically allocate a portion of the allowance for loan losses to the loan. Specific valuation allowances are determined by analyzing the borrower's ability to repay amounts owed, collateral deficiencies, the relative risk grade of the loan and economic conditions affecting the borrower's industry, among other things.

Historical valuation allowances are calculated based on the historical loss experience of specific types of loans. The Company calculates historical loss ratios for pools of similar loans with similar characteristics based on the proportion of actual charge-offs experienced to the total population of loans in the pool. The historical loss ratios are periodically updated based on actual charge-off experience. A historical valuation allowance is established for each pool of similar loans based upon the product of the historical loss ratio and the total dollar amount of the loans in the pool. The Company's pools of similar loans include similarly risk-graded groups of commercial loans, commercial real estate loans, consumer real estate loans and consumer and other loans.

General valuation allowances are based on general economic conditions and other qualitative risk factors both internal and external to the Company. In general, such valuation allowances are determined by evaluating, among other things: (i) the experience, ability and effectiveness of the bank's lending management and staff; (ii) the effectiveness of the Bank's loan policies, procedures and internal controls; (iii) changes in asset quality; (iv) changes in loan portfolio volume; (v) the composition and concentrations of credit; (vi) the impact of competition on loan structuring and pricing; (vii) the effectiveness of the internal loan review function; (viii) the impact of environmental risks on portfolio risks; and (ix) the impact of rising interest rates on portfolio risk. Management evaluates the degree of risk that each one of these components has on the quality of the loan portfolio on a quarterly basis. Each component is determined to have either a high, high-moderate, moderate, low-moderate or low degree of risk. The results are then input into a "general allocation matrix" to determine an appropriate general valuation allowance.

An analysis of the allowance for loan losses as of and for the years ended December 31, 2012 and 2011 is as follows:

Allowance for Loan Losses:	For the year ended December 31, 2012
	Beginning Balance		Charge-offs		Recoveries		Provisions		Ending Balance
	(Amounts in thousands)
Commercial and Industrial	$	451	$	(66)	$	—	$	85	$	470
Real Estate Construction:
Residential		2,613		(1,326)		490		(932)		845
Commercial		1,971		(310)		—		(546)		1,115
Real Estate Mortgage:
Commercial – Owner Occupied		2,714		(1,058)		—		2,439		4,095
Commercial – Non-owner Occupied		6,742		(3,848)		—		4,485		7,379
Residential – 1 to 4 Family		4,190		(1,531)		—		1,725		4,384
Residential – Multifamily		278		—		—		34		312
Consumer		148		(38)		—		226		336
Unallocated		216		—		—		(216)		—
Total	$	19,323	$	(8,177)	$	490	$	7,300	$	18,936

Allowance for Loan Losses:	For the year ended December 31, 2011
	Beginning Balance		Charge-offs		Recoveries		Provisions		Ending Balance
	(Amounts in thousands)
Commercial and Industrial	$	448	$	(22)	$	—	$	25	$	451
Real Estate Construction:
Residential		2,980		(2,390)		24		1,999		2,613
Commercial		1,576		(494)		—		889		1,971
Real Estate Mortgage:
Commercial – Owner Occupied		2,508		—		—		206		2,714
Commercial – Non-owner Occupied		3,792		(426)		—		3,376		6,742
Residential – 1 to 4 Family		2,848		(2,643)		34		3,951		4,190
Residential – Multifamily		372		—		—		(94)		278
Consumer		130		—		1		17		148
Unallocated		135		—		—		81		216
Total	$	14,789	$	(5,975)	$	59	$	10,450	$	19,323

Allowance for Loan Losses, at December 31, 2012	Individually evaluated for impairment		Collectively evaluated for impairment		Total
	(Amounts in thousands)
Commercial and Industrial	$	10	$	460	$	470
Real Estate Construction:
Residential		24		821		845
Commercial		96		1,019		1,115
Real Estate Mortgage:
Commercial – Owner Occupied		216		3,879		4,095
Commercial – Non-owner Occupied		1,053		6,326		7,379
Residential – 1 to 4 Family		301		4,083		4,384
Residential – Multifamily		6		306		312
Consumer		—		336		336
Unallocated		—		—		—
Total	$	1,706	$	17,230	$	18,936

Allowance for Loan Losses, at December 31, 2011	Individually evaluated for impairment		Collectively evaluated for impairment		Total
	(Amounts in thousands)
Commercial and Industrial	$	—	$	451	$	451
Real Estate Construction:
Residential		1,297		1,316		2,613
Commercial		380		1,591		1,971
Real Estate Mortgage:
Commercial – Owner Occupied		23		2,691		2,714
Commercial – Non-owner Occupied		2,526		4,216		6,742
Residential – 1 to 4 Family		600		3,590		4,190
Residential – Multifamily		33		245		278
Consumer		—		148		148
Unallocated		—		216		216
Total	$	4,859	$	14,464	$	19,323

Loans, at December 31, 2012:	Individually evaluated for impairment		Collectively evaluated for impairment		Total
	(Amounts in thousands)
Commercial and Industrial	$	748	$	21,177	$	21,925
Real Estate Construction:
Residential		987		6,344		7,331
Commercial		14,879		26,996		41,875
Real Estate Mortgage:
Commercial – Owner Occupied		6,594		151,022		157,616
Commercial – Non-owner Occupied		48,415		173,316		221,731
Residential – 1 to 4 Family		12,550		127,614		140,164
Residential – Multifamily		3,215		17,966		21,181
Consumer		188		17,701		17,889
Total	$	87,576	$	542,136	$	629,712

Loans, at December 31, 2011:	Individually evaluated for impairment		Collectively evaluated for impairment		Total
	(Amounts in thousands)
Commercial and Industrial	$	603	$	23,533	$	24,136
Real Estate Construction:
Residential		8,610		12,677		21,287
Commercial		16,227		34,134		50,361
Real Estate Mortgage:
Commercial – Owner Occupied		7,536		139,913		147,449
Commercial – Non-owner Occupied		48,244		155,972		204,216
Residential – 1 to 4 Family		11,865		126,903		138,768
Residential – Multifamily		3,865		16,261		20,126
Consumer		229		18,545		18,774
Total	$	97,179	$	527,938	$	625,117

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Bank Premises and Equipment

12 Months Ended

Dec. 31, 2012

Bank Premises and Equipment [Abstract]

Bank Premises and Equipment

Note  6.   Bank Premises and Equipment

A summary of the cost and accumulated depreciation and amortization of Company premises and equipment as of December 31, 2012 and 2011 is as follows:

	Estimated Useful lives	2012			2011
		(Amounts in thousands)
Land		$	820		$	820
Building and improvements	40 yrs-Life of lease		3,992			4,059
Furniture and equipment	5 - 10 years		1,800			1,508
Total premises and equipment			6,612			6,387
Less: accumulated depreciation and amortization			(2,623	)		(2,265	)
Premises and equipment, net		$	3,989		$	4,122

Depreciation and amortization expense was $358 thousand and $366 thousand in 2012 and 2011, respectively.

The Company has non-cancelable operating lease agreements related to its Northfield and Philadelphia branch offices. The term of the Northfield lease is for 5 years and runs through May 2017 with one 5-year renewal option. The term of the Philadelphia lease is for 10 years and runs through June 2016 with two 5-year renewal options. The Company is responsible for its pro-rata share of real estate taxes, and all insurance, utilities, maintenance and repair costs for the benefit of the branch offices.  At December 31, 2012, the required future minimum rental payments under these leases and other equipment operating leases are as follows:

Years Ending December 31,	(Amounts in thousands)
2013		140
2014		140
2015		140
2016		107
2017		31
Total minimum lease payments	$	558

Rent expense was approximately $138 thousand in 2012 and $125 thousand in 2011.

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Deposits

12 Months Ended

Dec. 31, 2012

Deposits [Abstract]

Deposits

Note  8.   Deposits

Deposits at December 31, 2012 and 2011 consisted of the following:

	2012		2011
	(Amounts in thousands)
Demand deposits, noninterest-bearing	$	30,342	$	31,146
Demand deposits, interest-bearing		21,249		19,307
Money market deposits		84,946		92,576
Savings deposits		230,621		213,411
Time deposits of $100,000 or more		109,941		108,598
Other time deposits		138,356		146,867
Brokered time deposits		21,752		22,950
Total deposits	$	637,207	$	634,855

Scheduled maturities of certificates of deposit at December 31, 2012 are as follows:

Years Ending December 31,	(Amounts in thousands)
2013	$	195,898
2014		43,484
2015		10,350
2016		8,151
2017		12,166
Thereafter		—
Total	$	270,049

Deposits from related parties totaled approximately $5,767,000 and $6,705,000 at December 31, 2012 and 2011, respectively.

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Deposits (Tables)

12 Months Ended

Dec. 31, 2012

Deposits [Abstract]

Summary of Deposits

Deposits at December 31, 2012 and 2011 consisted of the following:

	2012		2011
	(Amounts in thousands)
Demand deposits, noninterest-bearing	$	30,342	$	31,146
Demand deposits, interest-bearing		21,249		19,307
Money market deposits		84,946		92,576
Savings deposits		230,621		213,411
Time deposits of $100,000 or more		109,941		108,598
Other time deposits		138,356		146,867
Brokered time deposits		21,752		22,950
Total deposits	$	637,207	$	634,855

Scheduled maturities of certificates of deposit

Scheduled maturities of certificates of deposit at December 31, 2012 are as follows:

Years Ending December 31,	(Amounts in thousands)
2013	$	195,898
2014		43,484
2015		10,350
2016		8,151
2017		12,166
Thereafter		—
Total	$	270,049

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OREO (Details) (USD $)	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
OREO [Abstract]
Increase in real estate owned	$ 6,700,000
Real estate, not qualify for sales treatment			12,800,000
Number of Real Estate Properties owned	33
Valuation allowance related to OREO	0	0
OREO expense	1,529,000	642,000
Other Real Estate, Foreclosed Assets, and Repossessed Assets [Abstract]
Balance at beginning of period	19,410,000	16,701,000
Real estate acquired in settlement of loans	11,095,000	1,879,000
Sales of real estate	(3,533,000)	(3,414,000)
Gain/(loss) on sale of real estate	(388,000)	(44,000)
Write-down of real estate carrying values	(750,000)	(514,000)
Capitalized improvements to real estate	223,000	4,802,000
Balance at end of period	$ 26,057,000	$ 19,410,000

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Shareholders' Equity

12 Months Ended

Dec. 31, 2012

Shareholders' Equity [Abstract]

Shareholders' Equity

Note  13.   Shareholders' Equity

Common Stock Dividend:  In May 2012 and May 2011 the Company paid a 10% common stock dividend to shareholders (488,383 and 443,945 shares respectively). All share and per share information has been retroactively adjusted to give effect to this stock dividend for the periods presented.

Treasury Stock:  No transactions occurred in 2012 or 2011 for the repurchase of Company stock.

Stock Options:  In 1999, 2002 and 2003, the shareholders approved the Company's Employee Stock Option Plans and in 2005 the shareholders approved the Company's Directors and Employee Stock Option Plan (the "Plans"). The Plans are "non-qualified" stock option plans.  Reserved for issuance upon the exercise of options granted or to be granted by the Board of Directors is an aggregate of 148,181 shares of common stock as of December 31, 2012.  All options issued under the Plans were fully vested upon issuance.  All directors and certain officers and employees of the Company have been granted options under the Plans.  All stock option amounts and prices included in the following discussions have been adjusted for stock dividends.

There were no option awards, and hence no net compensation expenses for both 2012 and 2011.

Option awards are granted with an exercise price equal to the market price of the Company's stock at the date of the grant.  No options were awarded or exercised in 2012. All options issued have 10 year contractual terms and were fully vested as of December 31, 2012.

At December 31, 2012, there were 148,181 shares available for grant under the Plans.

The following table summarizes stock option activity for the year ended December 31, 2012.

Options	Shares	Weighted Average Exercise Price		Weighted Average Remaining Contractual Life	Aggregate Intrinsic Value
Outstanding at January 1, 2012	415,708	$	9.01
Granted	—	$	—
Exercised	9,332	$	3.75
Expired/terminated	49,534	$	8.25
Outstanding at December 31, 2012	356,842	$	9.36	2.4	$	—
Exercisable at December 31, 2012	356,842	$	9.36	2.4	$	—

Stock options outstanding and exercisable at December 31, 2012 are as follows:

Range of Exercise Prices	Number Outstanding		Weighted Average Remaining Contractual Life		Weighted Average Exercise Price
$5.25		55,287		0.4	$	5.25
$7.42		11,010		1.3	$	7.42
$8.91		44,424		2.2	$	8.91
$10.39		229,285		3.0	$	10.39
$11.28		16,836		3.8	$	11.28
		356,842		2.4	$	9.36

Preferred Stock: On October 3, 2008 Congress passed the Emergency Economic Stabilization Act of 2008 (EESA), which provides the U.S. Secretary of the Treasury with broad authority to implement certain actions to help restore stability and liquidity to the U.S. markets. One of the provisions resulting from EESA is the Treasury Capital Purchase Program (CPP) which provided for the direct equity investment of perpetual preferred stock by the U.S. Treasury in qualified financial institutions. This program was voluntary and requires an institution to comply with several restrictions and provisions, including limits on executive compensation, stock redemptions, and declaration of dividends. The CPP provided for a minimum investment of 1% of Risk-Weighted-Assets, with a maximum investment of the lesser of 3% of Risk-Weighted Assets or $25 billion.  The perpetual preferred stock has a dividend rate of 5% per year until the fifth anniversary of the Treasury investment and a dividend of 9%, thereafter. The CPP also requires the Treasury to receive warrants for common stock equal to 15% of the capital invested by the U.S. Treasury.

The Company received an investment in cumulative perpetual preferred stock of $16,288,000 on January 30, 2009.  These proceeds were allocated between the preferred stock and warrants based on relative fair value in accordance with FASB ASC Topic 470, Debt with Conversion and Other Options. The allocation of proceeds resulted in a discount on the preferred stock that will be accreted over five years. The Company issued 359,135 common stock warrants to the U.S. Treasury and $930 thousand of those proceeds were allocated to the warrants. The warrants are accounted for as equity securities. The warrants have a contractual life of 10 years and an exercise price of $6.79 per share of common stock.

In November of 2012, the U.S. Treasury held an auction and sold its investment in the preferred stock to institutional investors. Restrictions related to the CPP have been lifted. The warrants for 399,006 shares of common stock, with an exercise price of $6.12 per share, remain outstanding as of December 31, 2012.

The Company has recorded dividends in the approximate amount of $815 thousand for each of the years ended December 31, 2012 and 2011. All dividend amounts through December 31, 2012 have been paid. The preferred stock qualifies for and is accounted for as equity securities and is included in the Company's Tier I capital on the date of receipt.

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Subsequent Events

12 Months Ended

Dec. 31, 2012

Subsequent Events [Abstract]

Subsequent Events

Note  18.  Subsequent Events

Management has evaluated subsequent events through the date of issuance of the financial statements and does not believe any such events warrant recording or disclosure in these financial statements.

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Allowance for Loan Losses (Details) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011
Allowance for Loan Losses [Abstract]
Grade for a loan to be evaluated for impairment, minimum	6
Allowance for Loan Losses [Roll Forward]
Beginning Balance	$ 19,323	$ 14,789
Charge-offs	(8,177)	(5,975)
Recoveries	490	59
Provisions	7,300	10,450
Ending Balance	18,936	19,323
Loans and Allowances for Loan Losses [Abstract]
Allowances for loan losses, Individually evaluated for impairment	1,706	4,859
Allowances for loan losses, Collectively evaluated for impairment	17,230	14,464
Allowance for loan losses	18,936	19,323
Loans, Individually evaluated for impairment	87,576	97,179
Loans, Collectively evaluated for impairment	542,136	527,938
Loans	629,712	625,117
Commercial and industrial [Member]
Allowance for Loan Losses [Roll Forward]
Beginning Balance	451	448
Charge-offs	(66)	(22)
Recoveries	0	0
Provisions	85	25
Ending Balance	470	451
Loans and Allowances for Loan Losses [Abstract]
Allowances for loan losses, Individually evaluated for impairment	10	0
Allowances for loan losses, Collectively evaluated for impairment	460	451
Allowance for loan losses	470	451
Loans, Individually evaluated for impairment	748	603
Loans, Collectively evaluated for impairment	21,177	23,533
Loans	21,925	24,136
Real estate construction [Member] | Residential [Member]
Allowance for Loan Losses [Roll Forward]
Beginning Balance	2,613	2,980
Charge-offs	(1,326)	(2,390)
Recoveries	490	24
Provisions	(932)	1,999
Ending Balance	845	2,613
Loans and Allowances for Loan Losses [Abstract]
Allowances for loan losses, Individually evaluated for impairment	24	1,297
Allowances for loan losses, Collectively evaluated for impairment	821	1,316
Allowance for loan losses	845	2,613
Loans, Individually evaluated for impairment	987	8,610
Loans, Collectively evaluated for impairment	6,344	12,677
Loans	7,331	21,287
Real estate construction [Member] | Commercial [Member]
Allowance for Loan Losses [Roll Forward]
Beginning Balance	1,971	1,576
Charge-offs	(310)	(494)
Recoveries	0	0
Provisions	(546)	889
Ending Balance	1,115	1,971
Loans and Allowances for Loan Losses [Abstract]
Allowances for loan losses, Individually evaluated for impairment	96	380
Allowances for loan losses, Collectively evaluated for impairment	1,019	1,591
Allowance for loan losses	1,115	1,971
Loans, Individually evaluated for impairment	14,879	16,227
Loans, Collectively evaluated for impairment	26,996	34,134
Loans	41,875	50,361
Real estate mortgage [Member] | Commercial - Owner Occupied [Member]
Allowance for Loan Losses [Roll Forward]
Beginning Balance	2,714	2,508
Charge-offs	(1,058)	0
Recoveries	0	0
Provisions	2,439	206
Ending Balance	4,095	2,714
Loans and Allowances for Loan Losses [Abstract]
Allowances for loan losses, Individually evaluated for impairment	216	23
Allowances for loan losses, Collectively evaluated for impairment	3,879	2,691
Allowance for loan losses	4,095	2,714
Loans, Individually evaluated for impairment	6,594	7,536
Loans, Collectively evaluated for impairment	151,022	139,913
Loans	157,616	147,449
Real estate mortgage [Member] | Commercial - Non-owner Occupied [Member]
Allowance for Loan Losses [Roll Forward]
Beginning Balance	6,742	3,792
Charge-offs	(3,848)	(426)
Recoveries	0	0
Provisions	4,485	3,376
Ending Balance	7,379	6,742
Loans and Allowances for Loan Losses [Abstract]
Allowances for loan losses, Individually evaluated for impairment	1,053	2,526
Allowances for loan losses, Collectively evaluated for impairment	6,326	4,216
Allowance for loan losses	7,379	6,742
Loans, Individually evaluated for impairment	48,415	48,244
Loans, Collectively evaluated for impairment	173,316	155,972
Loans	221,731	204,216
Real estate mortgage [Member] | Residential - 1 to 4 family [Member]
Allowance for Loan Losses [Roll Forward]
Beginning Balance	4,190	2,848
Charge-offs	(1,531)	(2,643)
Recoveries	0	34
Provisions	1,725	3,951
Ending Balance	4,384	4,190
Loans and Allowances for Loan Losses [Abstract]
Allowances for loan losses, Individually evaluated for impairment	301	600
Allowances for loan losses, Collectively evaluated for impairment	4,083	3,590
Allowance for loan losses	4,384	4,190
Loans, Individually evaluated for impairment	12,550	11,865
Loans, Collectively evaluated for impairment	127,614	126,903
Loans	140,164	138,768
Real estate mortgage [Member] | Residential - Multifamily [Member]
Allowance for Loan Losses [Roll Forward]
Beginning Balance	278	372
Charge-offs	0	0
Recoveries	0	0
Provisions	34	(94)
Ending Balance	312	278
Loans and Allowances for Loan Losses [Abstract]
Allowances for loan losses, Individually evaluated for impairment	6	33
Allowances for loan losses, Collectively evaluated for impairment	306	245
Allowance for loan losses	312	278
Loans, Individually evaluated for impairment	3,215	3,865
Loans, Collectively evaluated for impairment	17,966	16,261
Loans	21,181	20,126
Consumer [Member]
Allowance for Loan Losses [Roll Forward]
Beginning Balance	148	130
Charge-offs	(38)	0
Recoveries	0	1
Provisions	226	17
Ending Balance	336	148
Loans and Allowances for Loan Losses [Abstract]
Allowances for loan losses, Individually evaluated for impairment	0	0
Allowances for loan losses, Collectively evaluated for impairment	336	148
Allowance for loan losses	336	148
Loans, Individually evaluated for impairment	188	229
Loans, Collectively evaluated for impairment	17,701	18,545
Loans	17,889	18,774
Unallocated [Member]
Allowance for Loan Losses [Roll Forward]
Beginning Balance	216	135
Charge-offs	0	0
Recoveries	0	0
Provisions	(216)	81
Ending Balance	0	216
Loans and Allowances for Loan Losses [Abstract]
Allowances for loan losses, Individually evaluated for impairment	0	0
Allowances for loan losses, Collectively evaluated for impairment	0	216
Allowance for loan losses	$ 0	$ 216

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Parent Company Only Financial Statements (Tables)

12 Months Ended

Dec. 31, 2012

Parent Company Only Financial Statements [Abstract]

Schedule of condensed financial information of the parent company

Condensed financial information of the parent company only is presented in the following two tables:

Balance Sheets	December 31,
	2012		2011
	(Amounts in thousands)
Assets:
Cash	$	53	$	257
Investments in subsidiaries		97,114		90,277
Other assets		5		229
Total assets	$	97,172	$	90,763
Liabilities and Equity:
Subordinated debentures	$	13,403	$	13,403
Other liabilities		132		136
Equity		83,637		77,224
Total liabilities and equity	$	97,172	$	90,763
Statements of Income	Years ended December 31,
	2012		2011
	(Amounts in thousands)
Income:
Dividends from bank subsidiary	$	996	$	1,600
Other income		87		—
Expense:
Interest on subordinated debentures		282		256
Other expenses		269		295
		551		551
Income before income taxes		532		1,049
Provision for income taxes		—		—
Equity in undistributed income of subsidiaries		6,781		6,223
Net income		7,313		7,272
Preferred stock dividend and discount accretion		1,012		1,000
Net income available to common shareholders	$	6,301	$	6,272

Statements of Cash Flows
	Years ended December 31,
	2012			2011
	(Amounts in thousands)
Cash Flows from Operating Activities
Net income	$	7,313		$	7,272
Adjustments to reconcile net income to net cash provided by operating activities:
Equity in undistributed earnings of subsidiaries		(6,781	)		(6,223	)
Changes in operating assets and liabilities:
Increase in other assets		48			(93	)
Decrease in accrued interest payable and other accrued liabilities		(4	)		(28	)
Net cash provided by operating activities		576			928
Cash Flows from Investing Activities
Net cash used in investing activities		—			—
Cash Flows from Financing Activities
Proceeds from exercise of stock options		35
Payment of dividend on preferred stock		(815	)		(815	)
Net cash used in financing activities		(780	)		(815	)
Increase/(decrease) in cash and cash equivalents		(204	)		113
Cash and Cash Equivalents, January 1,		257			144
Cash and Cash Equivalents, December 31,	$	53		$	257

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Consolidated Statements of Comprehensive Income (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011
Consolidated Statements of Comprehensive Income [Abstract]
Net income attributable to Company	$ 7,313	$ 7,272
Unrealized gains on securities:
Non-credit unrealized loss on securities with OTTI, net of taxes	15	14
Net unrealized (losses) gains on securities without OTTI	(148)	13
Total unrealized (losses) gains on securities	(133)	27
Pension liability adjustments	14	31
Total other comprehensive (loss) income	(119)	58
Total comprehensive income	$ 7,194	$ 6,065

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Cash and Due from Banks

12 Months Ended

Dec. 31, 2012

Cash and Due from Banks [Abstract]

Cash and Due from Banks

Note  2.   Cash and Due from Banks

The Company maintains various deposit accounts with other banks to meet normal funds transaction requirements, to satisfy deposit reserve requirements, and to compensate other banks for certain correspondent services.  Management is responsible for assessing the credit risk of its correspondent banks.  The withdrawal or usage restrictions of these balances did not have a significant impact on the operations of the Company as of December 31, 2012 or 2011, because reserve requirements were covered by vault cash.

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Other Related Party Transactions (Details) (Director [Member], USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011
Director [Member]
Related Party Transaction [Line Items]
Related party transaction insurance cost	$ 361	$ 184
Employee benefits	$ 493	$ 420

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Description of Business and Summary of Significant Accounting Policies (Policies)

12 Months Ended

Dec. 31, 2012

Description of Business and Summary of Significant Accounting Policies [Abstract]

Principles of Consolidation

Principles of Consolidation:  The accompanying consolidated financial statements include the accounts of Parke Bancorp, Inc. and its wholly-owned subsidiaries, Parke Bank and Parke Capital Markets, an inactive corporation. Also included are the accounts of 44 Business Capital Partners LLC, a joint venture formed in 2009 to originate and service Small Business Administration ("SBA") loans. Parke Bank has a 51% ownership interest in the joint venture. Parke Capital Trust I, Parke Capital Trust II and Parke Capital Trust III are wholly-owned subsidiaries but are not consolidated because they do not meet the requirements for consolidation under applicable accounting guidance.  All significant inter-company balances and transactions have been eliminated.

Investment Securities

Investment Securities:  At December 31, 2012 and 2011, the Company held investment securities that would be held for indefinite periods of time, including securities that would be used as part of the Company's asset/liability management strategy and possibly sold in response to changes in interest rates, prepayments and similar factors.  These securities are classified as "available for sale" and are carried at fair value, with any temporary unrealized gains or losses reported as other comprehensive income, net of the related income tax effect.

At December 31, 2012 and 2011, the Company also reported investments in securities that were carried at cost, adjusted for amortization of premium and accretion of discount.  The Company has the intent and ability to hold these investment securities to maturity considering all reasonably foreseeable events or conditions.  These securities are classified as "held to maturity."

Declines in the fair value of individual debt securities below their cost that are deemed to be other than temporary result in write-downs of the individual securities to their fair value. Debt securities that are deemed to be other than temporarily impaired are reflected in earnings as realized losses to the extent impairment is related to credit losses. The amount of the impairment for debt securities related to other factors is recognized in other comprehensive income (loss). In evaluating other than temporary impairment losses, management considers (1) the length of time and the extent to which the fair value has been less than cost, (2) the reasons for the decline in value, (3) the financial position and access to capital of the issuer, including the current and future impact of any specific events, and (4) for fixed maturity securities, whether the Company intends to sell the security, or it is more likely than not that the Company will be required to sell the security before recovery of the cost basis, which may be maturity.

The amortization of premiums and accretion of discounts over the contractual lives of the related securities are recognized in interest income using the interest method.  Gains and losses on the sale of such securities are accounted for using the specific identification method.

Restricted Stock

Restricted Stock:  Restricted stock includes investments in the common stock of the Federal Home Loan Bank of New York ("FHLBNY") and the Atlantic Central Bankers Bank for which no market exists and, accordingly, is carried at cost. The stocks have no quoted market value and are subject to redemption restrictions. Management reviews for impairment based on the ultimate recoverability of the cost basis in the stock.The stocks' value is determined by the ultimate recoverability of the par value rather than by recognizing temporary declines. Management considers such criteria as the significance of the decline in net assets, if any, the length of time this situation has persisted and the financial performance of the issuers. In addition, any commitments by the FHLBNY to make payments required by law or regulation, the impact of legislative and regulatory changes on the customer base of the FHLBNY and the liquidity position of the FHLBNY.

Loans

Loans:  The Company makes commercial, real estate and consumer loans to customers.  A substantial portion of the loan portfolio is represented by loans in the Southern New Jersey and Philadelphia, Pennsylvania markets.  The ability of the Company's debtors to honor their contracts is dependent upon the real estate and general economic conditions in this area.  Loans that management has the intent and ability to hold for the foreseeable future or until maturity or pay-off generally are reported at their outstanding unpaid principal amount, adjusted for charge-offs, the allowance for loan losses and any unamortized deferred fees or costs on originated loans.  Interest income on loans is recognized as earned based on contractual interest rates applied to daily principal amounts outstanding.

Loans-Nonaccrual

Loans-Nonaccrual:  Loans are placed on nonaccrual status when, in management's opinion, the borrower may be unable to meet contractual payment obligations as they become due, as well as when a loan is 90 days past due, unless the loan is well secured and in the process of collection, as required by regulatory provision. Loans may be placed on nonaccrual status regardless of whether or not such loans are considered past due. When interest accrual is discontinued, all unpaid accrued interest is reversed. Interest income is subsequently recognized only to the extent cash payments are received in excess of principal due.

Troubled Debt Restructurings

Troubled Debt Restructurings:  Troubled debt restructurings ("TDRs") are loans for which the Company, for legal or economic reasons related to a debtor's financial difficulties, has granted a concession to the debtor that it otherwise would not have considered. Concessions that result in the categorization of a loan as a troubled debt restructuring include:

•   Reduction (absolute or contingent) of the stated interest rate;

•   Extension of the maturity date or dates at a stated interest rate lower than the current market rate for new debt with similar risk;

•   Reduction (absolute or contingent) of the face amount or maturity amount of the debt as stated in the instrument or other agreement; or

•   Reduction (absolute or contingent) of accrued interest.

TDRs are reported as impaired loans. Interest income on TDR loans is recognized consistent with the Bank's nonaccrual loan policy stated above.

Loans Held for Sale

Loans Held for Sale:  Loans held for sale are the guaranteed portion of SBA loans and are carried at the lower of aggregate cost or fair value. The net amount of loan origination fees on loans sold is included in the carrying value and in the gain or loss on the sale. The Company originates loans to customers under an SBA program that generally provides for SBA guarantees of up to 75 percent of each loan.  When the sale of the guaranteed portion of an SBA loan occurs, with retained servicing, the premium received on the sale and the present value of future cash flows of the servicing assets represent gain on the sale and are recognized in income over the estimated life of the loan. Income and fees collected for servicing are credited to noninterest income, net of amortization of the related servicing asset.

Concentration of Credit Risk

Concentration of Credit Risk:  The Company's loans are generally to diversified customers in Southern New Jersey and the Philadelphia area of Pennsylvania.  Loans to general building contractors, general merchandise stores, restaurants, motels, warehouse space, and real estate ventures (including construction loans) constitute a majority of commercial loans.  The concentrations of credit by type of loan are set forth in Note 4.  Generally, loans are collateralized by assets of the borrower and are expected to be repaid from the borrower's cash flow or proceeds from the sale of selected assets of the borrower.

Loan Fees

Loan Fees:  Loan fees and direct costs associated with loan originations are netted and deferred.  The deferred amount is recognized as an adjustment to loan interest over the term of the related loans using the interest method.  Loan brokerage fees represent commissions earned for facilitating loans between borrowers and other companies and is recorded as loan fee income. Loan fee income also includes prepayment penalties on loans.

Allowance for Loan Losses

Allowance for Loan Losses:  The allowance for loan losses is maintained through charges to the provision for loan losses in the Consolidated Statements of Income as losses are estimated to have occurred.  Loans or portions thereof that are determined to be uncollectible are charged against the allowance, and subsequent recoveries, if any, are credited to the allowance.  The allowance is an amount that management believes will be adequate to absorb estimated losses relating to specifically identified loans, as well as probable credit losses in the balance of the loan portfolio, based on an evaluation of collectability of existing loans and prior loss experience.  When evaluating the adequacy of the allowance, an assessment of the loan portfolio will typically take into consideration changes in the composition and volume of the loan portfolio, overall portfolio quality and past loss experience, review of specific problem loans, current economic conditions which may affect borrowers' ability to repay, and other factors which may warrant current recognition.  Such periodic assessments may, in management's judgment, require the Company to recognize additions or reductions to the allowance.

Various regulatory agencies periodically review the adequacy of the Company's allowance for loan losses as an integral part of their examination process.  Such agencies may require the Company to recognize additions or reductions to the allowance based on their evaluation of information available to them at the time of their examination.  It is reasonably possible that the above factors may change significantly and, therefore, affect management's determination of the allowance for loan losses in the near term.

The allowance consists of specific and general components.  The specific component relates to loans that are classified as impaired, including TDRs.  For those loans that are classified as impaired, an allowance is established when the discounted cash flows (or collateral value for collateral dependent loans or observable market price) of the impaired loan is lower than the carrying value of that loan. The general component covers non-classified loans and is based on historical charge-off experience and expected losses given the Company's internal risk rating process. Other adjustments may be made to the allowance for pools of loans after an assessment of internal or external influences on credit quality that are not reflected in the historical loss or risk rating data.

A loan is considered impaired when, based on current information and events, it is probable that the Company will be unable to collect the scheduled payments of principal or interest when due according to the contractual terms of the loan agreement.  Loans that experience insignificant payment delays and payment shortfalls generally are not classified as impaired.  Management determines the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration all of the circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrower's prior payment record, and the amount of the shortfall in relation to the principal and interest owed.  Factors considered by management when evaluating impaired loans include payment status, collateral value, and the probability of collecting scheduled principal and interest payments when due.  Impairment is measured on a loan by loan basis for commercial loans by either the present value of expected future cash flows discounted at the loans effective interest rate, the loan's obtainable market price, or the fair value of the collateral if the loan is collateral dependent.

Large groups of smaller balance homogeneous loans are collectively evaluated for impairment.  Accordingly, the Company does not separately evaluate individual consumer loans for impairment.

Other Real Estate Owned (OREO)

Other Real Estate Owned ("OREO"):  Real estate acquired through foreclosure or other proceedings is carried at fair value less estimated costs of disposal. Costs of improving OREO are capitalized to the extent that the carrying value does not exceed its fair value less estimated selling costs. Subsequent valuation adjustments, if any, are recognized as a charge against current earnings. Holding costs are charged to expense. Gains and losses on sales are recognized in noninterest income as they occur.

Interest Rate Risk

Interest Rate Risk:  The Company is principally engaged in the business of attracting deposits from the general public and using these deposits, together with other borrowed and brokered funds, to make commercial, commercial mortgage, residential mortgage, and consumer loans, and to invest in overnight and term investment securities.  Inherent in such activities is interest rate risk that results from differences in the maturities and repricing characteristics of these assets and liabilities.  For this reason, management regularly monitors the level of interest rate risk and the potential impact on net income.

Bank Premises and Equipment

Bank Premises and Equipment:  Bank premises and equipment are stated at cost less accumulated depreciation and amortization.  Depreciation is computed and charged to expense using the straight-line method over the estimated useful lives of the assets, generally three years for computers and software, five to ten years for equipment and forty years for buildings.  Leasehold improvements are amortized to expense over the shorter of the term of the respective lease or the estimated useful life of the improvements.

Income Taxes

Income Taxes:  Deferred taxes are provided on a liability method whereby deferred tax assets are recognized for deductible temporary differences and operating loss carry forwards and deferred tax liabilities are recognized for taxable temporary differences.  Temporary differences are the difference

between the reported amounts of assets and liabilities and their tax bases.  Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized.  Deferred tax assets and liabilities are adjusted for the effects of changes in tax laws and rates on the date of enactment.  Realization of deferred tax assets is dependent on generating sufficient taxable income in the future.

When tax returns are filed, it is highly certain that some positions taken would be sustained upon examination by the taxing authorities, while others are subject to uncertainty about the merits of the position taken or the amount of the position that ultimately would be sustained. The benefit of a tax position is recognized in the financial statements in the period during which, based on all available evidence, management believes it is more-likely-than not that the position will be sustained upon examination, including the resolution of appeals or litigation processes, if any. The evaluation of a tax position taken is considered by itself and not offset or aggregated with other positions. Tax positions that meet the more likely-than not recognition threshold are measured as the largest amount of tax benefit that is more than 50 percent likely of being realized upon settlement with the applicable taxing authority. The portion of benefits associated with tax positions taken that exceeds the amount measured as described above is reflected as a liability for unrecognized tax benefits in the accompanying balance sheet along with any associated interest and penalties that would be payable to the taxing authorities upon examination.

Interest and penalties associated with unrecognized tax benefits would be recognized in income tax expense on the income statement.

The Company did not recognize any interest or penalties related to income tax during the years ended December 31, 2012 or 2011.  The Company does not have an accrual for uncertain tax positions as of December 31, 2012 or 2011, as deductions taken and benefits accrued are based on widely understood administrative practices and procedures and are based on clear and unambiguous tax law.  Tax returns for all years 2009 and thereafter are subject to further examination by tax authorities, with the exception of the State of New Jersey for which tax returns for all years 2008 and thereafter are subject to further examination.

Use of Estimates

Use of Estimates:  The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and reported amounts of revenues and expenses during the reporting period.  Actual results could differ from those estimates.  Material estimates that are particularly susceptible to significant change in the near term include the allowance for loan losses, other than temporary impairment losses on investment securities, the valuation of deferred income taxes, servicing assets and carrying value of OREO.

Segment Reporting

Segment Reporting:  The Company operates one reportable segment of business, "community banking".  Through its community banking segment, the Company provides a broad range of retail and community banking services.

Reclassifications

Reclassifications:  Certain items in the 2011 financial statements have been reclassified to conform to the 2012 presentation. Such reclassifications have no impact on prior year earnings and shareholders equity.

Comprehensive Income

Comprehensive Income:  Comprehensive income consists of net income and other gains and losses affecting shareholders' equity that, under GAAP, are excluded from net income, including unrealized gains and losses on available for sale securities and gains or losses, prior service costs or credits, and transition assets or obligations associated with pension or other postretirement benefits that have not been recognized as components of net periodic benefit cost.

The Company recognizes the overfunded or underfunded status of a defined benefit postretirement plan as an asset or a liability in the consolidated balance sheet and changes in that funded status through comprehensive income in the year the changes occur. The accounting guidance related to compensation-retirement benefits also requires an employer to measure the funded status of a plan as of the date of the employer's year-end statement of financial position.  The Company has recorded an expense for the unfunded status of $198 thousand and $450 thousand for the years ended December 31, 2012 and 2011, respectively, relating to a Supplemental Executive Retirement Plan ("SERP") (Note 11).

Accumulated other comprehensive loss consisted of the following at December 31, 2012 and 2011:

	2012			2011
	(Amounts in thousands)
Securities
Non-credit unrealized losses on available for sale securities with OTTI	$	(499	)	$	(524	)
Unrealized losses on available for sale securities without OTTI		(499	)		(252	)
Minimum pension liability		(244	)		(268	)
Tax impact		497			418
	$	(745	)	$	(626	)

Earnings Per Common Share

Earnings Per Common Share:  Basic earnings per common share is computed by dividing net income available to common shareholders by the weighted average number of common shares outstanding during the period.  Diluted earnings per common share considers common stock equivalents (when dilutive) outstanding during the period such as options and warrants outstanding.  To the extent that stock equivalents are anti-dilutive, they have been excluded from the earnings per share calculation. Both basic and diluted earnings per share computations give retroactive effect to a stock dividend declared and paid in 2012 and 2011 (Note 13).  Earnings per common share have been computed based on the following for 2012 and 2011:

	2012		2011
	(Amounts in thousands, except share data)
Basic earnings per common share
Net income available to common shareholders	$	6,301	$	6,272
Average common shares outstanding		5,379,558		5,374,561
Basic earnings per common share	$	1.17	$	1.17
Diluted earnings per common share
Net income available to common shareholders	$	6,301	$	6,272
Average common shares outstanding		5,379,558		5,374,561
Dilutive potential common shares		3,038		91,897
Total diluted average common shares outstanding		5,382,596		5,466,458
Diluted earnings per common share	$	1.17	$	1.15

For 2012 and 2011, options to purchase 301,553 shares and 335,214 shares, respectively, were outstanding but were not included in the computation of diluted EPS because the options' common stock equivalents were anti-dilutive.

Statement of Cash Flows

Statement of Cash Flows:  Cash and cash equivalents include cash and due from financial institutions and federal funds sold.  For the purposes of the statement of cash flows, changes in loans and deposits are shown on a net basis.

Recently Issued Accounting Pronouncements

Recently Issued Accounting Pronouncements:

In May 2011, FASB issued ASU 2011-04, Fair Value Measurement (Topic 820) - Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in U.S. GAAP and IFRSs. This ASU does not extend the use of fair value accounting, but provides guidance on how it should be applied where its use is already required or permitted. This guidance is to be applied prospectively and is effective during interim and annual periods beginning after December 15, 2011. Adoption of this guidance has not had a material impact on results of operations or financial condition.

In June 2011, the FASB issued guidance to improve the comparability, consistency and transparency of financial reporting and to increase the prominence of items reported in other comprehensive income. The amendments require that all non-owner changes in stockholders' equity be presented either in a single continuous statement of comprehensive income or in two separate but consecutive statements. The amendments do not change the items that must be reported in other comprehensive income or when an item of other comprehensive income must be reclassified to net income. The amendments are effective for interim and annual periods beginning after December 15, 2011 with retrospective application. The Company adopted the accounting standard on January 1, 2012, as required, with no material impact on its results of operations or financial position.

In April 2011, the FASB issued ASU No. 2011-03, Reconsideration of Effective Control for Repurchase Agreements. This ASU amends guidance clarifying when the Bank can recognize a sale upon the transfer of financial assets subject to a repurchase agreement. That determination is based, in part, on whether the Bank has maintained effective control over the transferred financial assets. Under the amended guidance, the FASB concluded that the assessment of effective control should focus on a transferor's contractual rights and obligations with respect to transferred financial assets, not on whether the transferor has the practical ability to perform in accordance with those rights or obligations. The amended guidance was effective for transactions that occur in interim and annual periods beginning on or after December 15, 2011. The Bank accounts for all of its existing repurchase agreements as secured borrowings and therefore, the adoption of this amended guidance on January 1, 2012 did not have a material impact on the Company's Consolidated Financial Statements.

In December 2011, the FASB issued ASU No. 2011-11, Balance Sheet (Topic 210): Disclosures about Offsetting Assets and Liabilities.This ASU will require companies to disclose gross and net information about both instruments and transactions eligible for offset in the statement of financial position and instruments and transactions subject to an agreement similar to a master netting arrangement. The scope will include derivatives, sale and repurchase agreements and reverse sale and repurchase agreements, and securities borrowing and securities lending arrangements. The amendments are effective for interim and annual periods beginning on or after January 1, 2013. The amendment is not expected to impact the Company's financial condition, results of operations or cash flows.

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Regulatory Matters (Tables)

12 Months Ended

Dec. 31, 2012

Regulatory Matters [Abstract]

Quantitative measures established by regulation to ensure capital adequacy minimum amounts and ratios

To be categorized as well capitalized, the Bank must maintain minimum total risk based, Tier 1 risk based, and Tier 1 leverage ratios as set forth in the following tables.

	Actual					For Capital Adequacy Purposes					To be Well- Capitalized Under Prompt Corrective Action Provisions
Parke Bancorp, Inc.	Amount		Ratio			Amount		Ratio			Amount		Ratio
As of December 31, 2012	(Amounts in thousands except ratios)
Total Risk Based Capital	$	105,640		16.25	%	$	51,998		8	%	$	N/A		N/A
(to Risk Weighted Assets)
Tier 1 Capital	$	97,382		14.98	%	$	25,999		4	%	$	N/A		N/A
(to Risk Weighted Assets)
Tier 1 Capital	$	97,382		12.60	%	$	30,917		4	%	$	N/A		N/A
(to Average Assets)
As of December 31, 2011
Total Risk Based Capital	$	98,992		15.5	%	$	51,209		8	%		N/A		N/A
(to Risk Weighted Assets)
Tier 1 Capital	$	90,851		14.2	%	$	25,604		4	%		N/A		N/A
(to Risk Weighted Assets)
Tier 1 Capital	$	90,851		12.1	%	$	30,122		4	%		N/A		N/A
(to Average Assets)
Parke Bank
As of December 31, 2012
Total Risk Based Capital	$	105,714		16.26	%	$	51,998		8	%	$	64,998		10	%
(to Risk Weighted Assets)
Tier 1 Capital	$	97,456		14.99	%	$	25,999		4	%	$	38,999		6	%
(to Risk Weighted Assets)
Tier 1 Capital	$	97,456		12.61	%	$	30,917		4	%	$	38,646		5	%
(to Average Assets)
As of December 31, 2011
Total Risk Based Capital	$	98,817		15.4	%	$	51,208		8	%	$	64,010		10	%
(to Risk Weighted Assets)
Tier 1 Capital	$	90,676		14.2	%	$	25,604		4	%	$	38,406		6	%
(to Risk Weighted Assets)
Tier 1 Capital	$	90,676		12.0	%	$	30,122		4	%	$	37,652		5	%
(to Average Assets)

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Regulatory Matters

12 Months Ended

Dec. 31, 2012

Regulatory Matters [Abstract]

Regulatory Matters

Note  12.   Regulatory Matters

On April 9, 2012, the Bank entered into Consent Orders with the FDIC and the New Jersey Department of Banking and Insurance (the "Department").  Under the Consent Orders, the terms of which are substantially identical, the Bank is required, among other things, subject to review and approval by the FDIC and the Department: (i) to adopt and implement a plan to reduce the Bank's position in delinquent or classified assets; (ii) to adopt and implement a program providing for a periodic independent review of the Bank's loan portfolio and the identification of problem credits; (iii) to review and revise the Bank's loan policies and procedures to address identified lending deficiencies; and (iv) to adopt and implement a plan to reduce and manage each of the concentrations of credit identified by the FDIC and the Department.

The Consent Orders also require the Bank to obtain the prior approval of the FDIC and the Department before declaring or paying any dividend or appointing or changing the title or responsibilities of any director or senior executive officer.  Additional regulatory provisions require FDIC prior approval before the Bank enters into any employment agreement or other agreement or plan providing for the payment of a "golden parachute payment" or the making of any golden parachute payment.

Capital Ratios:  The Company (on a consolidated basis) and the Bank are subject to various regulatory capital requirements administered by the federal banking agencies.  Failure to meet minimum capital requirements can initiate certain mandatory and possibly additional discretionary, actions by regulators that, if undertaken, could have a direct material effect on the Company's financial statements.  Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Bank must meet specific capital guidelines that involve quantitative measures of its assets, liabilities, and certain off-balance-sheet items as calculated under regulatory accounting practices.  The Company and the Bank's capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings, and other factors.

Quantitative measures established by regulation to ensure capital adequacy require the Bank to maintain minimum amounts and ratios (set forth in the following table) of total and Tier I capital (as defined in the regulations) to risk-weighted assets (as defined), and of Tier I capital (as defined) to average assets (as defined).  Management believes, as of December 31, 2012 and 2011, that the Company and the Bank met all capital adequacy requirements to which they are subject.

As of December 31, 2012 and 2011, the Bank was categorized as "well-capitalized" under the regulatory framework for prompt corrective action.  Prompt corrective action provisions are not applicable to bank holding companies. There are no conditions or events since December 31, 2012 that management believes have changed the Bank's capital category.

To be categorized as well capitalized, the Bank must maintain minimum total risk based, Tier 1 risk based, and Tier 1 leverage ratios as set forth in the following tables.

	Actual					For Capital Adequacy Purposes					To be Well- Capitalized Under Prompt Corrective Action Provisions
Parke Bancorp, Inc.	Amount		Ratio			Amount		Ratio			Amount		Ratio
As of December 31, 2012	(Amounts in thousands except ratios)
Total Risk Based Capital	$	105,640		16.25	%	$	51,998		8	%	$	N/A		N/A
(to Risk Weighted Assets)
Tier 1 Capital	$	97,382		14.98	%	$	25,999		4	%	$	N/A		N/A
(to Risk Weighted Assets)
Tier 1 Capital	$	97,382		12.60	%	$	30,917		4	%	$	N/A		N/A
(to Average Assets)
As of December 31, 2011
Total Risk Based Capital	$	98,992		15.5	%	$	51,209		8	%		N/A		N/A
(to Risk Weighted Assets)
Tier 1 Capital	$	90,851		14.2	%	$	25,604		4	%		N/A		N/A
(to Risk Weighted Assets)
Tier 1 Capital	$	90,851		12.1	%	$	30,122		4	%		N/A		N/A
(to Average Assets)
Parke Bank
As of December 31, 2012
Total Risk Based Capital	$	105,714		16.26	%	$	51,998		8	%	$	64,998		10	%
(to Risk Weighted Assets)
Tier 1 Capital	$	97,456		14.99	%	$	25,999		4	%	$	38,999		6	%
(to Risk Weighted Assets)
Tier 1 Capital	$	97,456		12.61	%	$	30,917		4	%	$	38,646		5	%
(to Average Assets)
As of December 31, 2011
Total Risk Based Capital	$	98,817		15.4	%	$	51,208		8	%	$	64,010		10	%
(to Risk Weighted Assets)
Tier 1 Capital	$	90,676		14.2	%	$	25,604		4	%	$	38,406		6	%
(to Risk Weighted Assets)
Tier 1 Capital	$	90,676		12.0	%	$	30,122		4	%	$	37,652		5	%
(to Average Assets)