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, 2014 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. x

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, 2014, was approximately $69.4 million.

As of March 19, 2015 there were issued and outstanding 6,014,112 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, 2014. (Parts II and IV)

2. Portions of the Proxy Statement for the 2015 Annual Meeting of Shareholders. (Parts II and III)

FORM 10-K

FOR THE FISCAL YEAR ENDED DECEMBER 31, 2014

INDEX

PART 1		Page
Item 1.	Business	1
Item 1A.	Risk Factors	22
Item 1B.	Unresolved Staff Comments	22
Item 2.	Properties	23
Item 3.	Legal Proceedings	23
Item 4.	Mine Safety Disclosures	23
PART II
Item 5.	Market for Common Equity, Related stockholder Matters and Issuer Purchases of Equity Securities	23
Item 6.	Selected Financial Data	23
Item 7.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	23
Item 7A.	Quantitative and Qualitative Disclosures About Market Risk	24
Item 8.	Financial Statements and Supplementary Data	24
Item 9.	Changes and Disagreements with Accountants on Accounting and Financial Disclosure	24
Item 9A.	Controls and Procedures	24
Item 9B.	Other Information	24
PART III
Item 10.	Directors, Executive Officers and Corporate Governance	24
Item 11.	Executive Compensation	25
Item 12.	Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters	25
Item 13.	Certain Relationships and Related Transactions, and Director Independence	26
Item 14.	Principal Accountant Fees and Services	26
PART IV
Item 15.	Exhibits and Financial Statement Schedules	26
	Signatures

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, 2014, the Company had assets of $821.7 million,loans net of unearned income of $713.1 million, deposits of $647.9 million and equity of $102.9 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, 2014 no one industry sector concentration exceeded 10% of total loans. Refer to pages 4 through 6 for descriptions of the loan categories presented.

	At December 31,
	2014					2013					2012					2011					2010
	Amount		Percentage			Amount		Percentage			Amount		Percentage			Amount		Percentage			Amount		Percentage
	(Amounts in thousands, except percentages)
Commercial and Industrial	$	30,092		4.2	%	$	23,001		3.5	%	$	21,925		3.5	%	$	24,136		3.9	%	$	25,108		4.0	%
Real Estate Construction:
Residential		5,859		0.8			7,389		1.1			7,331		1.2			21,287		3.4			38,810		6.2
Commercial		47,921		6.7			43,749		6.7			41,875		6.6			50,361		8.1			57,651		9.2
Real Estate Mortgage:
Commercial - Owner Occupied		176,649		24.8			170,122		26.0			157,616		25.0			147,449		23.6			146,665		23.4
Commercial - Non-Owner Occupied		237,918		33.4			220,364		33.7			221,731		35.2			204,216		32.6			171,854		27.5
Residential - 1 to 4 Family		171,894		24.1			148,160		22.6			140,164		22.3			138,768		22.2			141,695		22.6
Residential - Multifamily		25,173		3.5			24,103		3.7			21,181		3.4			20,126		3.2			27,841		4.4
Consumer		17,555		2.5			17,653		2.7			17,889		2.8			18,774		3.0			17,115		2.7
Total Loans	$	713,061		100.0	%	$	654,541		100.00	%	$	629,712		100.0	%	$	625,117		100.00	%	$	626,739		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, 2014.

	Due within one year		Due after one through five years		Due after five years		Total
	(Amounts in thousands)
Commercial and Industrial	$	4,221	$	15,332	$	10,539	$	30,092
Real Estate Construction:
Residential		3,217		2,442		200		5,859
Commercial		23,146		16,577		8,198		47,921
Real Estate Mortgage:
Commercial - Owner Occupied		7,413		25,920		143,316		176,649
Commercial - Non-Owner Occupied		17,223		38,184		182,511		237,918
Residential - 1 to 4 Family		9,072		15,464		147,358		171,894
Residential – Multifamily		1,675		3,350		20,148		25,173
Consumer		1,490		154		15,911		17,555
Total Loans	$	67,457	$	117,423	$	528,181	$	713,061

The following table sets forth the dollar amount of loans in certain loan categories due one year or more after December 31, 2014, 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	$	5,097	$	20,774	$	25,871
Real Estate Construction:
Residential		—		2,642		2,642
Commercial		11,886		12,889		24,775
Real Estate Mortgage:
Commercial - Owner Occupied		5,932		163,305		169,237
Commercial - Non-Owner Occupied		37,808		182,887		220,695
Residential - 1 to 4 Family		76,249		86,573		162,822
Residential - Multifamily		1,998		21,500		23,498
Consumer		15,776		288		16,064
Total Loans	$	154,746	$	490,858	$	645,604

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 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 originates 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 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 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.

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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.

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, 2014, the Bank’s loan to one borrower limit was approximately $19.9 million and the Bank had no borrowers with loan balances in

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excess of this amount. At December 31, 2014, the Bank’s largest loan to one borrower was a loan for commercial real estate, with a balance of $12.7 million that was secured by the real estate.At December 31, 2014, 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 include non-accrual loans and performing TDR’s, were $61.5 million, $68.9 million, $87.6 million, $97.2 million and $112.0 million at December 31 2014, 2013, 2012, 2011, and 2010, respectively. Included in impaired loans at December 31, 2014, 2013, 2012, 2011 and 2010 were $42.2 million, $51.0 million, $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.

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

	At December 31,
	2014			2013			2012			2011			2010
	(Amounts in thousands, except percentages)
Loans accounted for on a non-accrual basis:
Commercial and Industrial	$	61		$	122		$	248		$	—		$	—
Real Estate Construction:
Residential		238			967			799			5,265			8,546
Commercial		10,773			9,908			12,958			7,703			6,701
Real Estate Mortgage:
Commercial - Owner Occupied		735			976			1,218			4,797			546
Commercial - Non-Owner Occupied		8,624			10,853			19,228			18,132			826
Residential - 1 to 4 Family		6,367			12,914			10,072			7,691			9,415
Residential – Multifamily		—			99			2,838			597			1,350
Consumer		94			115			188			274			61
Total non-accrual loans		26,892			35,954			47,549			44,459			27,445
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	$	26,892		$	35,954		$	47,549		$	44,459		$	27,445
Total non-performing loans as a percentage of loans		3.8	%		5.5	%		7.6	%		7.1	%		4.4	%

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, 2014, the Bank had $26.9 million of loans that were on a non-accrual basis.Gross interest income of $1.6 million would have been recorded during the year ended December 31, 2014 if these loans had been performing in accordance with their terms. Interest income of $647 thousand was recognized on these loans during the year ended December 31, 2014.

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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 “other assets especially mentioned” (“OAEM”); 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, 2014, the Bank had assets classified as follows:

	Loan Balance
	(Amounts in thousands)
OAEM		13,990
Substandard		38,119
	$	52,109

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, 2014 was $20.9 million. The real estate owned consisted of 19 properties, the largest being a condominium development located in Absecon, New Jersey at $9.1 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 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

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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.

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,
	2014			2013			2012			2011			2010
	(Dollars in thousands)
Balance at beginning of the period	$	18,560		$	18,936		$	19,323		$	14,789		$	12,404
Charge-offs:
Commercial and Industrial		(395	)		(4	)		(66	)		(22	)		(615	)
Real Estate Construction:
Residential		—			—			(1,326	)		(2,390	)		(3,893	)
Commercial		(16	)		—			(310	)		(494	)		(588	)
Real Estate Mortgage:
Commercial - Owner Occupied		(476	)		(77	)		(1,058	)		—			(189	)
Commercial - Non-Owner Occupied		(50	)		(2,641	)		(3,848	)		(426	)		—
Residential - 1 to 4 Family		(2,841	)		(554	)		(1,531	)		(2,643	)		(1,245	)
Residential – Multifamily		—			(8	)		—			—			(70	)
Consumer		(31	)		(3	)		(38	)		—			(16	)
Total charge-offs:		(3,809	)		(3,287	)		(8,177	)		(5,975	)		(6,616	)
Recoveries:
Commercial and Industrial		—			—			—			—			—
Real Estate Construction:
Residential		5			—			490			24			—
Commercial		—			—			—			—			—
Real Estate Mortgage:
Commercial - Owner Occupied		5			1			—			—			—
Commercial - Non-Owner Occupied		—			—			—			—			—
Residential - 1 to 4 Family		32			210			—			34			—
Residential - Multifamily		—			—			—			—			—
Consumer		—			—			—			1			—
Total recoveries:		42			211			490			59			—
Net recoveries (charge-offs)		(3,767	)		(3,076	)		(7,687	)		(5,916	)		(6,616	)
Provision for loan losses		3,250			2,700			7,300			10,450			9,001
Balance at end of period	$	18,043		$	18,560		$	18,936		$	19,323		$	14,789
Period-end loans outstanding (net of deferred costs/fees)	$	713,061		$	654,541		$	629,712		$	625,117		$	626,739
Average loans outstanding	$	669,771		$	644,735		$	612,342		$	630,570		$	622,716
Allowance as a percentage of period end loans		2.53	%		2.84	%		3.01	%		3.09	%		2.36	%
Net loans charged off as a percentage of average loans outstanding		0.57	%		0.51	%		1.34	%		0.95	%		1.06	%

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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,
	2014					2013					2012					2011					2010
	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	$	1,679		4.2	%	$	591		3.5	%	$	470		2.5	%	$	451		2.3	%	$	448		3.0	%
Real Estate Construction:
Residential		316		0.8			414		1.1			845		4.5			2,613		13.5			2,980		20.1
Commercial		3,015		6.7			948		6.7			1,115		5.9			1,971		10.2			1,576		10.7
Real Estate Mortgage:
Commercial - Owner  Occupied		3,296		24.8			4,735		26.0			4,095		21.6			2,714		14.1			2,620		17.7
Commercial - Non-Owner  Occupied		4,962		33.4			7,530		33.7			7,379		39.0			6,742		34.9			3,680		24.9
Residential - 1 to 4 Family		4,156		24.1			3,612		22.6			4,384		23.1			4,190		21.7			2,848		19.3
Residential - Multifamily		357		3.5			389		3.7			312		1.6			278		1.4			372		2.5
Consumer		262		2.5			341		2.7			336		1.8			148		0.8			130		0.9
Unallocated		—		0.0			—		0.0			—		0.0			216		1.1			135		0.9
Total Allowance	$	18,043		100.0	%	$	18,560		100.0	%	$	18,936		100.0	%	$	19,323		100.0	%	$	14,789		100.0	%

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Investment Activities

General. The investment policy of the Company 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 Company 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, 2014, 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, 2014, no one issuer of investment securities represented 10% or more of the Company’s stockholders’ equity.

	At December 31,
	2014		2013		2012
	(Amounts in thousands)
Securities Held to Maturity:
State and political subdivisions	$	2,141	$	2,103	$	2,066
Securities Available for Sale:
U.S. government-sponsored entities		—		—		7
Corporate debt obligations		522		506		1,524
Residential mortgage-backed securities		26,947		30,450		12,899
Collateralized mortgage obligations		390		595		974
Collateralized debt obligations		349		4,144		3,936
Total securities available for sale		28,208		35,695		19,340
Total	$	30,349	$	37,798	$	21,406

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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, 2014 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, 2014
	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		Fair Value
	(Amounts in thousands, except yields)
Securities Held to Maturity:
State and political subdivisions	$	—	—	%	$	—	—	%	$	2,141	2.53	%	$	2,141	2.54	%	$	2,377
Securities Available for Sale:
U.S. government sponsored entities	$	—	—	%	$	—	—	%	$	—	—	%	$	—	—	%	$	—
Corporate debt obligations		—	—			—	—			500	8.13			500	8.13			522
Residential mortgage-backed securities		171	3.89			1,177	2.84			24,904	2.79			26,252	2.80			26,947
Collateralized mortgage obligations		202	4.00			—	—			173	4.50			375	4.22			390
Collateralized debt obligations		—	—			—	—			806	0.00			806	0.00			349
Total securities available for sale		373	3.95			1,177	2.84			26,383	2.81			27,933	2.84			28,208
Total	$	373	3.95	%	$	1,177	2.84	%	$	28,524	2.79	%	$	30,074	2.82	%	$	30,585

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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 $20.3 million and $5.2 million at December 31, 2014 and 2013, 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 $20.3 million, $5.2 million and $21.8 million at December 31, 2014, 2013 and 2012, 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.

	2014
	Average Balance		Yield/Rate		Percent of Total
	(Amounts in thousands, except percentages)
NOWs	$	27,771		0.50%		4.35	%
Money markets		101,090		0.55%		15.85
Savings		210,380		0.59%		32.98
Time deposits		255,372		1.08%		40.04
Brokered CDs		6,785		0.72%		1.06
Total interest-bearing deposits		601,398		0.79%
Non-interest bearing demand deposits		36,493				5.72
Total deposits	$	637,891				100.00	%

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	2013
	Average Balance		Yield/Rate		Percent of Total
	(Amounts in thousands, except percentages)
NOWs	$	23,635		0.54%		3.82	%
Money markets		85,542		0.66%		13.81
Savings		232,635		0.68%		37.56
Time deposits		234,822		1.11%		37.91
Brokered CDs		12,000		1.19%		1.94
Total interest-bearing deposits		588,634		0.85%
Non-interest bearing demand deposits		30,714				4.96
Total deposits	$	619,348				100.00	%

	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	%

The following table indicates the amount of the Bank’s certificates of deposit of $250,000 or more by time remaining until maturity as of December 31, 2014.

Maturity Period	Certificates of Deposit
	(Amounts in thousands)
Within three months	$	6,121
Three through twelve months		15,227
Over twelve months		7,568
Total	$	28,916

Borrowings. Borrowings consist of subordinated debt and advances from the FHLB and other parties. Borrowings from the FHLB outstanding during 2014, 2013, and 2012, 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,
	2014			2013			2012
	(Amounts in thousands, except rates)
Amount outstanding at year end	$	62,755		$	68,683		$	43,851
Weighted average interest rates at year end		1.33	%		1.38	%		2.05	%
Maximum outstanding at any month end	$	64,139		$	68,683		$	53,997
Average outstanding	$	62,800		$	42,307		$	46,165
Weighted average interest rate during the year		1.33	%		1.80	%		2.04	%

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, 2014, the Bank had 55 full-time and 15 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.

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

16

customer provide additional credit or service to the bank, to the bank holding company, or to any other 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.

Non-Banking Activities. The business activities of the Company, as a bank holding company, are restricted by the BHCA. Under the BHC Act and the Federal Reserve Board’s bank holding company regulations, the Company may only engage in, or acquire or control voting securities or assets of a company engaged in, (1) banking or managing or controlling banks and other subsidiaries authorized under the BHC Act and (2) any BHCA activity the Federal Reserve Board has determined to be so closely related to banking or managing or controlling banks to be a proper incident thereto. These include any incidental activities necessary to carry on those activities, as well as a lengthy list of activities that the Federal Reserve Board has determined to be so closely related to the business of banking as to be a proper incident thereto.

Financial Modernization. The Gramm-Leach-Bliley Act permits greater affiliation among banks, securities firms, insurance companies, and other companies under a new type of financial services company known as a “financial holding company.” A financial holding company essentially is a bank holding company with significantly expanded powers. Financial holding companies are authorized by statute to engage in a number of financial activities previously impermissible for bank holding companies, including securities underwriting, dealing and market making; sponsoring mutual funds and investment companies; insurance underwriting and agency; and merchant banking activities. The Act also permits the Federal Reserve and the Treasury Department to authorize additional activities for financial holding companies if they are “financial in nature” or “incidental” to financial activities. A bank holding company may become a financial holding company if it and each of its subsidiary banks is well capitalized and well managed, and each of its subsidiary banks has at least a “satisfactory” CRA rating. A financial holding company must provide notice to the Federal Reserve within 30 days after commencing activities previously determined by statute or by the Federal Reserve Board and Department of the Treasury to be permissible. The Company has not submitted notice to the Federal Reserve Board of its intent to be deemed a financial holding company.

Regulatory Capital Requirements. The Federal Reserve has adopted capital adequacy guidelines pursuant to which it assesses the adequacy of capital in examining and supervising a bank holding company and in analyzing applications to it under the BHCA. The Federal Reserve’s capital adequacy guidelines are similar to those imposed on the Bank by the Federal Deposit Insurance Corporation (“FDIC”). See “Regulation of the Bank-Regulatory Capital Requirements” and “Recent Amendments to Regulatory Capital Requirements.”  The Federal Reserve, however, has adopted a policy statement that exempts bank holding companies with less than $500 million in consolidated assets that are not engaged in significant non-banking or off-balance sheet activities and that do not have a material amount of debt or equity securities registered with the SEC from its regulatory capital requirements.  As long as their

17

bank subsidiaries are well capitalized, such bank holding companies need only maintain a pro forma debt to equity ratio of less than 1.0 in order to pay dividends and repurchase stock and to be eligible for expedited treatment on applications.  Recently enacted legislation direct the Federal Reserve to extend this treatment to bank and thrift holding companies with consolidated assets of less than $1.0 billion.

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.

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.

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 was applied against the actual assessment until exhausted. Any funds remaining after June 30, 2013 were 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

18

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 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 are 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 0.0062% of insured deposits on an annualized basis in 2014. 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.

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At December 31, 2014, the Bank had the requisite capital levels to qualify as “well capitalized.”

Volcker Rule.  On July 21, 2015, banking entities, which include insured depository institutions, their holding companies and affiliates of either, will become subject to regulations implementing the so-called Volcker Rule of the Dodd-Frank Act, which prohibits proprietary trading for the entity’s own account in certain financial instruments, including securities, derivatives, futures and options but excluding loans, physical commodities and foreign exchange and currency.  Under the rules adopted by the federal financial regulatory agencies, the purchase or sale of a financial instrument that has been held for less than 60 days is presumed to be proprietary trading for the purpose of short-term resale or benefiting from short-term price movements or for another prohibited purpose unless the banking organization can demonstrate a contrary purpose.  Purchases and sales of financial instruments pursuant to repurchase and reverse repurchase agreements or securities lending agreements, however, are excluded from the definition of proprietary trading. Also excluded from the definition of proprietary trading are purchases and sales of financial instruments where the bank is acting solely as agent for a customer, as trustee for a pension or deferred compensation plan or in connection with the collection of debts previously contracted.  Purchases and sales of highly liquid securities that are not reasonably expected to result in short-term trading gains and in an amount consistent with near-term funding needs are excluded from proprietary trading if conducted pursuant to a documented liquidity management plan.  Certain proprietary trading activities are permitted if conducted in connection with underwriting or market-making activities or risk-mitigating hedging activities.  Proprietary trading is also permitted in U.S. government, agency and government sponsored-enterprise securities and obligations of states and political subdivisions and the FDIC but not in derivatives of the foregoing.

The Volcker Rule also prohibits banking entities from sponsoring or directly or indirectly acquiring as principal any ownership interest in a “covered fund” unless permitted by the rule.  For purposes of this prohibition, a covered fund is any investment fund such as a hedge or private equity fund that would be required to register as an investment company under SEC rules but for the statutory exemptions for funds held by not more than 100 persons or owned solely by high net worth investors, any exempt or substantively similar non-exempt commodity pool and certain foreign investment funds.  Excluded from the definition of covered fund are wholly owned subsidiaries of a banking entity or its affiliates, certain permissible joint ventures, insurance company separate accounts for which the banking entity is a beneficiary provided the banking entity does not control investment decisions on the underlying assets or participate in the profits for the separate account except in accordance with supervisory guidance regarding bank owned life insurance, certain vehicles for loan and other permissible securitizations, small business investment companies, public welfare companies permitted under the National Bank Act, business development companies, registered investment companies and investment funds exempt from SEC registration under other statutory  provisions.  Investments in pooled trust preferred securities are permitted if acquired before December 10, 2013 and the banking entity reasonably believes that the trust preferred securities in the pool were issued prior to May 19, 2010 by depository institution holding companies with less than $15 billion in assets or by mutual holding companies.

The Volcker Rule prohibits a banking entity from engaging in certain covered transactions, including loans and securities and asset purchases, with any covered fund for which it serves as investment manager, advisor or sponsor or that it organizes and offers.  Any transactions with a covered fund must be on terms as favorable to the banking entity as transactions with non-affiliates.  Finally, the Volcker Rule prohibits any otherwise permitted proprietary trading or covered fund activity that would involve a material conflict of interest between the banking entity and its customers, result in a material exposure of the banking entity to high risk assets or trading strategies or would pose a threat to the safety and soundness of the banking entity or the financial stability of the United States.

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Amendments to Regulatory Capital Requirements

In July 2013, the federal banking agencies approved amendments to their regulatory capital rules to conform them with the international regulatory standards agreed to by the Basel Committee on Banking Supervision in the accord often referred to as “Basel III”. The revisions 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. The new capital requirements apply to all banks and savings associations, bank holding companies with more than $500 million in assets and all savings and loan holding companies (other than certain savings and loan holding companies engaged in insurance underwriting and grandfathered diversified holding companies) regardless of asset size. The rules became effective for the institutions with assets over $250 billion and internationally active institutions starting in January 2014 and became effective for all other institutions in January 2015. The following discussion summarizes the changes which are believed most likely to affect the Company and the Bank.

New and Higher Capital Requirements. The regulations establish a new capital measure called “Common Equity Tier 1 Capital” which will 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. The amended rules require accumulated other comprehensive income to flow through to regulatory capital unless a one-time, irrevocable opt-out election is made in the first regulatory reporting period under the new rule. Depository institutions and their holding companies are required to maintain Common Equity Tier 1 Capital equal to 4.5% of risk-weighted assets by 2015.

The regulations increased the required ratio of Tier 1 Capital to risk-weighted assets from 4% to 6%. Tier 1 Capital consists of Common Equity Tier 1 Capital plus Additional Tier 1 Capital elements which include non-cumulative perpetual preferred stock. 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) will no longer qualify as Additional Tier 1 Capital. Trust preferred securities and other non-qualifying capital instruments issued prior to May 19, 2010 by bank and savings and loan holding companies with less than $15 billion in assets as of December 31, 2009 or by mutual holding companies may continue to be included in Tier 1 Capital but will be phased out over 10 years beginning in 2016 for all other banking organizations. These non-qualifying capital instruments, however, may be included in Tier 2 Capital which could also include qualifying subordinated debt. The amended regulations 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 will remain at 8%.

Capital Conservation Buffer Requirement. In addition to higher capital requirements, depository institutions and their holding companies are required to maintain a common equity Tier 1 capital conservation 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 conservation buffer requirement will be phased in over four years beginning in 2016. The capital conservation 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.

21

Changes to Prompt Corrective Action Capital Categories. The Prompt Corrective Action rules have been amended effective January 1, 2015 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 is 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 will 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 are 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 cannot be realized through net operating loss carrybacks will continue to be deducted. Deferred tax assets that can be realized through NOL carrybacks will not be deducted but will be subject to 100% risk weighting. Defined benefit pension fund assets, net of any associated deferred tax liability, will be deducted from Common Equity Tier 1 Capital unless the banking organization has unrestricted and unfettered access to such assets. Reciprocal cross-holdings of capital instruments in any other financial institutions will 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 are also required to deduct non-significant investments (less than 10% of outstanding stock) in the capital of other financial institutions (including investments in trust preferred securities) 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.

Changes in Risk-Weightings. The federal banking agencies did not adopt a proposed rule that would have significantly changed the risk-weighting for residential mortgages. Instead, the amended regulations continue to follow the previous capital rules which 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. The revised regulations apply a 250% risk-weighting to mortgage servicing rights, deferred tax assets that cannot be realized through NOL carrybacks and investments in the capital instruments of other financial institutions that are not deducted from capital. The revised regulations also created 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 for certain community development projects, agricultural land and 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 is made.

Item 1A. Risk Factors

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

Item 1B. Unresolved Staff Comments

None.

22

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, 2014, net property and equipment totaled approximately $4.5 million.

Item 3. Legal Proceedings

At December 31, 2014, the Company was not a party to any material legal proceedings.

Item 4. Mine Safety Disclosures

Not applicable

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 2014 Annual Report is incorporated herein by reference.

(b)   Not applicable.

(c)   There were no treasury stock repurchases during the fourth quarter of 2014.

Item 6. Selected Financial Data

The information contained under the section captioned “Selected Financial Data” in the 2014 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.

23

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.

(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 2014 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 2015 Annual Meeting of Stockholders (the “Proxy Statement”) is incorporated herein by reference.

24

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.

(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, 2014 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	311,870	$      9.29	—
Total	311,870	$      9.29	—

25

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
	•	Consolidated Balance Sheets as of December 31, 2014 and 2013
	•	Consolidated Statements of Income for the Years Ended December 31, 2014 and 2013
	•	Consolidated Statements of Equity for the Years Ended December 31, 2014 and 2013
	•	Consolidated Statements of Cash Flows for the Years Ended December 31, 2014 and 2013
	•	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	Bylaws of Parke Bancorp, Inc. (1)
3.3	Certificate of Amendment setting forth the terms of the Registrant’s 6.00% Non-Cumulative Perpetual Convertible Preferred Stock, Series B (3)
4.1	Specimen stock certificate of Parke Bancorp, Inc. (1)
10.1	Amended Employment Agreement Between Bancorp, Bank and Vito S. Pantilione (4)
10.2	Change in Control Agreement Between Bancorp, Bank and Elizabeth Milavsky, Paul Palmieri and David Middlebrook (4)
10.3	Supplemental Executive Retirement Plan (1)

26 

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 (5)
13	Annual Report to Shareholders for the fiscal year ended December 31, 2014
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
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).

(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 December 24, 2013.

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

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

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

27

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 20, 2015		/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 20, 2015.
/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
/s/ Fred G. Choate			/s/ Daniel J. Dalton
Fred G. Choate			Daniel J. Dalton
Director			Director
/s/ Arret F. Dobson
Arret F. Dobson			Anthony Jannetti
Director			Director
/s/ Edward Infantolino			/s/ Jeffrey H. Krippitz
Edward Infantolino			Jeffrey H. Krippitz
Director			Director
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.

2014 ANNUAL REPORT TO SHAREHOLDERS

PARKE BANCORP, INC.

2014 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	19
Management’s Report on Internal Control Over Financial Reporting	21
Section Two
Report of Independent Registered Public Accounting Firm	1
Consolidated Financial Statements	2
Notes to Consolidated Financial Statements	7
Corporate Information	50

To Our Shareholders:

We experienced continued improvement in the banking industry and the overall economy in 2014. The unemployment rate continued to inch lower as real estate activity and values experienced a long awaited expansion. Parke Bancorp, Inc. also moved forward in 2014, recording another year of record earnings. We are proud that we generated record earnings in two consecutive years in a very difficult market, however, there are still many challenges that lie ahead.

Parke Bancorp’s net income available to common shareholders increased to $9.3 million in 2014, up close to 10% from 2013. Equally important, is the fact that in 2013 we had had a $1.9 million non-recurring gain on the repayment of TARP, which reinforces the strong growth in core earnings in 2014. Our earnings per share were $1.55 in 2014, an increase of 9.6% from 2013. The core earnings of our Company continue to be very strong, as we maintain a critical focus on controlling expenses. Continual regulatory changes and increased requirements places pressure on the Company’s operating costs. Like all banks in the country, we are affected by all of the new banking regulations, along with those that remain to be implemented from the Dodd Frank Act, in addition to the new Basel III capital regulations that were implemented in 2015. That is the banking world today and we will do whatever is necessary to ensure that we are in full compliance with all new (and old) regulatory requirements.

We increased our loan portfolio by 9% to $713 million. This compares favorably to our peer group, especially those banks headquartered in South Jersey, an area which  is lagging behind the national recovery rate. We added two lenders to our staff in 2014 that has helped support our loan growth. We continue to expand our loan presence in the Philadelphia, Delaware and Montgomery county areas. The Company’s asset growth was 4% to $822 million, as we carefully managed our cash position, which was slightly elevated at the end of 2013. Our excess cash position dictated a slower deposit growth rate in 2014 of 3.4% to $648 million.

We continued to focus on reducing our non-performing assets in 2014, and although we are not satisfied, we made considerable progress. The Company’s non-performing loans decreased to $26.9 million as of December 31, 2014, a reduction of 25% from December 31, 2013, and our other real estate owned properties were reduced to $20.9 million as of December 31, 2014, a reduction of 28%. The major asset, over $9 million, in the OREO category is a project in Absecon. After several years of litigation and delays, we have started marketing this project. We have executed several agreements of sale and have started to close on individual units. We have maintained the same approach to our NPAs, aggressively working to reduce this class of assets while preserving shareholder capital. As of December 31, 2014 our NPAs were 5.8% of total assets, down from 8.2% as of December 31, 2013. The Company continues to have a strong allowance for loan losses, which was 2.5% of our total loan portfolio as of December 31, 2014. This is slightly less than the 2.8% reserve as of December 31, 2013, however, the improvement in our credit quality of the loan portfolio supports the adjustment. The ratio of allowance for loan losses to non-performing loans increased to 67.1% as of December 31, 2014, a 30% improvement from December 31, 2013.

1

The Company’s total shareholders’ equity increased 10% in 2014 to $103 million. The growth in equity was due to the retention of earnings. Our Tier 1 Leverage Ratio is 14.27%. A Well Capitalized Bank, as defined by banking regulations, is one with a minimum Tier 1 Leverage Ratio of 5% (among other measures). Our strong capital puts us in an excellent position to take advantage of opportunities that may arise in the market. This level of capital supports expansion of the Company through the possibility of acquisitions, in addition to supporting additional organic growth. The Company’s capital strength, combined with consistent strong earnings also supported the Board of Directors approving an increase in our cash dividend from 5 cents per share to 6 cents per share per quarter.

The banking industry has changed dramatically, especially in the industry’s approach to branching. Parke Bank has always maintained a very conservative approach to branching, which has supported a strong deposit base, while minimizing operational expenses. However, we remain focused on the market for opportunities to expand our footprint and franchise value. We are currently working on opening a new full service branch in Philadelphia. If successful, we anticipate opening this new branch by the 1st quarter of 2016. We are also evaluating an opportunity to open a “high-tech” limited service branch in Camden County. This branch would have the location that could take advantage of the new ATM technology that can provide virtually every in-branch service with limited space and personnel.

There are a wide variety of economic forecasts that are presented daily by many “experts”. These forecasts range from an inevitable pause, or recession in the economy to a strong robust expansion. The only thing that remains clear is that there will continue to be many challenges facing the economy and the banking industry. Compressed interest margins, increased regulatory pressure, and fierce competition for deposits and loans are at the top of the list. Our Board of Directors and staff will continue to work very hard to enhance shareholder value, while maintaining a safe and sound approach to banking, while facing these challenges head on. Strategically expanding our footprint, pursuing potential acquisition opportunities, reducing our NPAs and maintaining strict controls on our expenses will be the continued focus of our Company. Our shareholders have placed their trust in us, which we appreciate and don’t take for granted. We will continue to work hard every day to maintain that trust.

/s/ C.R. Pennoni                                                                                                                               /s/ Vito S. Pantione

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
	2014			2013		2012		2011		2010
Balance Sheet Data: (in thousands)
Assets	$		821,706	$	794,943	$	770,477	$	790,738	$	756,853
Loans, Net	$		695,018	$	635,981	$	610,776	$	605,794	$	611,950
Securities Available for Sale	$		28,208	$	35,695	$	19,340	$	22,517	$	27,730
Securities Held to Maturity	$		2,141	$	2,103	$	2,066	$	2,032	$	1,999
Cash and Cash Equivalents	$		36,238	$	45,661	$	76,866	$	110,228	$	57,628
OREO	$		20,931	$	28,910	$	26,057	$	19,410	$	16,701
Deposits	$		647,933	$	626,768	$	637,207	$	634,855	$	604,722
Borrowings	$		62,755	$	68,683	$	43,851	$	74,010	$	75,616
Equity	$		103,050	$	93,964	$	83,543	$	77,273	$	70,732
Operational Data: (in thousands)
Interest Income	$		38,132	$	36,784	$	37,746	$	41,309	$	41,684
Interest Expense			5,579		5,795		7,424		9,231		11,350
Net Interest Income			32,553		30,989		30,322		32,078		30,334
Provision for Loan Losses			3,250		2,700		7,300		10,450		9,001
Net Interest Income after Provision for Loan Losses			29,303		28,289		23,022		21,628		21,333
Noninterest Income			7,631		3,426		4,368		4,725		2,709
Noninterest Expense			18,911		18,852		15,079		12,625		11,650
Income Before Income Tax Expense			18,023		12,863		12,311		13,728		12,392
Income Tax Expense			5,711		3,625		4,242		5,524		4,895
Net Income Attributable to Company and Noncontrolling Interest			12,312		9,238		8,069		8,204		7,497
Net Income Attributable to Noncontrolling Interest			(1,839)		(1,667)		(756)		(932)		(157)
Discount on Retirement of Preferred Shares			—		1,948		—		—		—
Preferred Stock Dividend and Discount Accretion			1,200		1,058		1,012		1,000		988
Net Income Available to Common Shareholders	$		9,273	$	8,461	$	6,301	$	6,272	$	6,352
Per Share Data: 1
Basic Earnings per Common Share	$		1.55	$	1.42	$	1.06	$	1.06	$	1.08
Diluted Earnings per Common Share	$		1.32	$	1.42	$	1.06	$	1.05	$	1.05
Book Value per Common Share	$		14.07	$	12.57	$	11.35	$	10.40	$	9.42
Performance Ratios:
Return on Average Assets			1.30%		1.01%		0.94%		0.97%		1.05%
Return on Average Common Equity			11.77%		12.04%		9.70%		10.51%		12.19%
Net Interest Margin			4.33%		4.36%		4.12%		4.46%		4.44%
Efficiency Ratio			47.06%		54.78%		43.12%		34.18%		33.26%
Capital Ratios:
Equity to Assets			12.53%		11.64%		10.84%		9.77%		9.35%
Dividend Payout			1.79%		—		—		—		—
Tier 1 Risk-based Capital2			15.97%		15.65%		14.99%		14.17%		12.93%
Total Risk-based Capital2			17.22%		16.92%		16.26%		15.44%		14.19%
Asset Quality Ratios:
Nonperforming Loans/Total Loans			3.77%		5.49%		7.55%		7.11%		4.38%
Allowance for Loan Losses/Total Loans			2.53%		2.84%		3.01%		3.09%		2.36%
Allowance for Loan Losses/Non-performing Loans			67.09%		51.62%		39.82%		43.46%		53.89%
1 Per share computations give retroactive effect to stock dividends declared in each of 2010-2014
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 its 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 Company 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 $9.3 million, or $1.32 per diluted share, and $8.5 million, or $1.42 per diluted share, for 2014 and 2013, respectively. Pre-tax earnings amounted to $18.0 million for 2014 and $12.9 million for 2013.

4

Total assets of $821.7 million at December 31, 2014 represented an increase of $26.8 million, or 3.4%, from December 31, 2013. Total gross loans amounted to $713.1 million at year end 2014 for an increase of $58.5 million, or 8.9% from December 31, 2013. Deposits increased by $21.2 million, an increase of 3.4%. Total shareholders’ equity at December 31, 2014 amounted to $102.9 million and increased $9.2 million, or 9.8%, 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,
	2014								2013
	Average Balance			Interest Income/ Expense		Yield/ Cost			Average Balance			Interest Income/ Expense		Yield/ Cost
	(Amounts in thousands except Yield/ Cost data)
Assets
Loans	$	669,771		$	36,967		5.52	%	$	644,735		$	35,944		5.58	%
Investment securities		36,259			1,054		2.91	%		22,852			731		3.20	%
Federal funds sold and cash equivalents		46,384			111		0.24	%		42,489			109		0.26	%
Total interest-earning assets		752,414		$	38,132		5.07	%		710,076		$	36,784		5.18	%
Noninterest earning assets		71,594								63,226
Allowance for loan losses		(18,746	)							(20,287	)
Total assets	$	805,262							$	753,015
Liabilities and Equity
Interest bearing deposits
NOWs	$	27,771		$	139		0.50	%	$	23,635		$	127		0.54	%
Money markets		101,090			559		0.55	%		85,542			561		0.66	%
Savings		210,380			1,238		0.59	%		232,635			1,591		0.68	%
Time deposits		255,372			2,761		1.08	%		234,822			2,610		1.11	%
Brokered certificates of deposit		6,785			49		0.72	%		12,000			143		1.19	%
Total interest-bearing deposits		601,398			4,746		0.79	%		588,634			5,032		0.85	%
Borrowings		62,800			833		1.33	%		42,307			763		1.80	%
Total interest-bearing liabilities		664,198		$	5,579		0.84	%		630,941		$	5,795		0.92	%
Noninterest bearing deposits		36,493								30,714
Other liabilities		5,411								4,687
Total liabilities		706,102								666,342
Equity		99,160								86,673
Total liabilities and equity	$	805,262							$	753,015
Net interest income				$	32,553							$	30,989
Interest rate spread							4.23	%							4.26	%
Net interest margin							4.33	%							4.36	%

6

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,
	2014 vs. 2013								2013 vs. 2012
	Variance due to change in								Variance due to change in
	Average Volume		Average Rate			Net Increase/ (Decrease)			Average Volume			Average Rate			Net Increase/ (Decrease)
	(Amounts in thousands)
Interest Income:
Loans (net of deferred costs/fees)	$	1,385	$	(362	)	$	1,023		$	1,874		$	(2,404	)	$	(530	)
Investment securities		395		(72	)		323			(128	)		(167	)		(295	)
Federal funds sold		10		(8	)		2			(136	)		(1	)		(137	)
Total interest income		1,790		(442	)		1,348			1,610			(2,572	)		(962	)
Interest Expense:
Deposits		111		(397	)		(286	)		(271	)		(1,180	)		(1,451	)
Borrowed funds		306		(236	)		70			(82	)		(96	)		(178	)
Total interest expense		417		(633	)		(216	)		(353	)		(1,276	)		(1,629	)
Net interest income	$	1,373	$	191		$	1,564		$	1,963		$	(1,296	)	$	667

7

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)
2014
Interest income	$	9,373	$	9,417	$	9,736	$	9,606
Interest expense		1,372		1,407		1,403		1,397
Net interest income		8,001		8,010		8,333		8,209
Provision for loan losses		1,000		250		1,000		1,000
Income before income tax expense		3,462		6,837		4,099		3,625
Income tax expense		1,136		2,149		1,264		1,162
Net income		2,206		3,455		2,486		2,326
Net income available to common shareholders		1,906		3,155		2,186		2,026
Net income per common share:
Basic	$	0.32	$	0.53	$	0.36	$	0.34
Diluted	$	0.28	$	0.44	$	0.31	$	0.29
2013
Interest income	$	9,510	$	9,008	$	8,975	$	9,291
Interest expense		1,366		1,340		1,493		1,596
Net interest income		8,144		7,668		7,482		7,695
Provision for loan losses		500		200		1,000		1,000
Income before income tax expense		2,161		3,520		3,568		3,614
Income tax expense		837		1,377		1,397		1,413
Net income		1,324		2,143		2,171		2,201
Discount on retirement of preferred shares		1,948		—		—		—
Net income available to common shareholders		3,078		1,770		1,731		1,882
Net income per common share:
Basic	$	0.51	$	0.30	$	0.28	$	0.33
Diluted	$	0.51	$	0.30	$	0.28	$	0.33

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. 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.

Other Real Estate Owned (“OREO”). OREO consists of real estate properties which are recorded at fair value. All properties have an independent third-party full appraisal to determine the value, less cost to sell (a range of 5% to 10%) and other costs. The appraisal is 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.

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 basis. 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

9

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, 2014 and 2013

Net Interest Income. 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 increased $1.6 million, or 5.0%, to $32.6 million for 2014, from $31.0 million for 2013. We experienced a slight decrease in our interest rate spread of 3 basis points, to 4.23% for 2014, from 4.26% for 2013. Our net interest margin also decreased 3 basis points, to 4.33% for 2014, from 4.36% for 2013. The increase in net interest income is attributable to the combined effects of an increase in the average balance of loans, a lower yield on loans and a lower average cost of deposits.

Interest income increased $1.3 million, or 3.7%, to $38.1 million for 2014, from $36.8 million for 2013. The increase is attributable to higher loan volumes partially offset by lower yields on all categories of interest-earning assets. Average loans for the year were $669.8 million compared to $644.7 million for 2013, while average loan yields were 5.52% for 2014 compared to 5.58% for 2013.

Interest expense decreased $216,000, or 3.7%, to $5.6 million for 2014, from $5.8 million for 2013. The decrease is primarily attributable to a decline in the cost of funds offset by higher deposit volumes. Average deposits for the year were $601.4 million compared to $588.6 million for 2013, while average deposit rates were 0.79% for 2014 compared to 0.85% for 2013.

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 $7.6 million in 2014 versus $3.4 million in 2013.

The Company recognized $5.0 million in gains from the sale of the guaranteed portion of SBA loans in 2014, compared to a gain of $2.2 million in 2013. The increase is partially attributable to the selling of loans originated in 2013.

Loan fees were $1.1 million in 2014, an increase from $702,000 in 2013. Loan fees consist primarily of prepayment fees. These loan fees are variable in nature and are dependent upon the borrowers’ course of action.

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During 2013, the Company was required to write-down $955,000 related to three collateralized debt obligations (“CDOs”) primarily secured by trust preferred securities (“TruPS”). The three securities were sold in 2014 generating a gain of $178,000.

Other noninterest income, which includes ATM fees, debit card fees, early CD withdrawal penalties, rental income and other miscellaneous income, amounted to $1.3 million in 2014 and $1.2 million in 2013.

Noninterest Expense. Noninterest expense for 2014 was $18.9 million, unchanged from 2013.

Compensation and benefits expense for 2014 was $7.3 million, an increase of $573,000 over 2013. The increase is attributable to routine salary increases, higher benefits expense and increased staff.

Professional services in 2014 amounted to $1.4 million, a decrease of $190,000 from 2013. The decrease reflects our lower level of troubled assets.

OREO expenses decreased to $3.9 million in 2014, from $4.6 million in 2013. The expenses are related to the carrying costs of OREO including property taxes, insurance and maintenance. During 2013 the Company established a reserve for potential loss on the sale of OREO totaling $2.4 million which was included in the expense for 2013.

Other operating expense increased to $3.8 million in 2014, from $3.2 million in 2013. Other operating expense is primarily 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 $5.7 million for 2014, compared to $3.6 million for 2013, resulting in effective tax rates of 35.3% and 32.4% for the respective years. The rate difference is due to a retroactive change in the calculation of income tax expense at our SBA company.

Discount on Retirement of Preferred Shares. During the fourth quarter of 2013, the Company completed a private placement of newly designated 6.00% Non-Cumulative Perpetual Convertible Preferred Stock, Series B, with a liquidation preference of $1,000 per share. The Company sold 20,000 shares in the placement for gross proceeds of $20.0 million. Proceeds after expenses were $18.5 million. The Company utilized a portion of the proceeds to repurchase and retire 16,288 shares of outstanding Fixed Rate Cumulative Perpetual Preferred Stock, Series A (the “Series A Preferred Stock” that was originally issued to the U.S. Treasury under TARP and was subsequently sold by the U.S. Treasury to private investors.) The Company was able to repurchase these shares for an aggregate price of $14.34 million, a discount of $1.95 million.

Financial Condition at December 31, 2014 and December 31, 2013

At December 31, 2014, the Company’s total assets increased to $821.7 million from $794.9 million at December 31, 2013, an increase of $26.8 million or 3.4%.

Cash and cash equivalents decreased $9.4 million to $36.2 million at December 31, 2014, from $45.6 million at December 31, 2013. The decrease in cash was utilized to fund loan growth.

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Total investment securities decreased to $30.3 million at December 31, 2014 ($28.2 million classified as available for sale or 92.9%) from $37.8 million at December 31, 2013, a decrease of $7.5 million or 19.7%. The decrease was primarily due to the sale of three TruPS collateralized debt investment securities.

Total gross loans increased to $713.1 million at December 31, 2014, from $654.6 million at December 31, 2013, an increase of $58.5 million or 8.9%.

OREO at December 31, 2014 was $20.9 million, compared to $28.9 million at December 31, 2013, a decrease of $8.0 million. OREO consisted of 19 properties, the largest being a condominium development in Absecon. The decrease was primarily due to the sale of OREO property.

BOLI increased to $11.5 million at December 31, 2014, from $11.1 million at December 31, 2013, an increase of $358,000 or 3.2% due to accumulated earnings.

Other assets increased to $3.8 million at December 31, 2014, from $1.0 million at December 31, 2013, an increase of $2.8 million due to a change in prepaid income taxes.

At December 31, 2014, the Bank’s total deposits increased to $647.9 million from $626.8 million at December 31, 2013, an increase of $21.1 million or 3.4%. Noninterest bearing deposits increased $6.6 million, or 18.3%, to $42.6 million at December 31, 2014, from $36.0 million at December 31, 2013. NOW and money market accounts increased $13.1 million, or 10.6%, to $136.0 million at December 31, 2014, from $122.9 million at December 31, 2013. Savings accounts decreased $30.2 million, or 13.4%, to $194.3 million at December 31, 2014, from $224.5 million at December 31, 2013. The decrease was primarily attributable to the Company’s efforts to shift the accounts to term deposit products. Retail certificates of deposit increased $16.7 million, or 7.0%, to $254.8 million at December 31, 2014, from $238.1 million at December 31, 2013. Brokered deposits increased $15.1 million to $20.3 million at December 31, 2014, from $5.2 million at December 31, 2013.

Borrowings decreased to $62.8 million at December 31, 2014 from $68.7 million at December 31, 2013, a decrease of $5.9 million or 8.6%. Due to the increased deposit balances, the Company was less reliant on FHLB borrowings.

Total shareholders’ equity increased to $102.9 million at December 31, 2014 from $93.7 million at December 31, 2013, an increase of $9.2 million or 9.8%, due to the retention of earnings.

12

Asset Quality

The Company attempts to manage the risk characteristics of its loan portfolio through various control processes, such as credit evaluations 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, changes in the composition and volume of the loan portfolio, overall portfolio quality, current national and local economic conditions which may affect borrowers' ability to repay, and other factors which may warrant current recognition.

Delinquent loans decreased $9.8 million to $29.8 million, or 4.2% of total loans, at December 31, 2014, from $39.6 million, or 6.1% of total loans, at December 31, 2013. Delinquent loan balances by number of days delinquent at December 31, 2014 were: 31 to 89 days --- $2.9 million and 90 days and greater --- $26.9 million. Loans 90 days and more past due are no longer accruing interest. December 31, 2013 delinquent loan balances by number of days were: 31 to 89 days --- $3.6 million and 90 days and greater --- $36.0 million.

At December 31, 2014, the Company had $26.9 million in nonperforming loans, or 3.8% of total loans, a decrease from $36.0 million, or 5.5% of total loans, at December 31, 2013. The three largest relationships in nonperforming loans are a $6.7 million land development loan, a $3.5 million real estate development loan and a $2.8 million residential mortgage loan.

At December 31, 2014, the Company had $47.8 million in nonperforming assets, which includes $26.9 million of nonperforming loans and $20.9 million of OREO, or 5.8% of total assets, a decrease from $64.9 million, or 8.2% of total assets at December 31, 2013.

At December 31, 2014, the Company had $61.5 million in loans deemed impaired, a decrease from $68.9 million at December 31, 2013. Included in impaired loans are TDRs that were in compliance with their modified terms and therefore are accruing, totaling $32.7 million and $32.9 million at December 31, 2014 and December 31, 2013, respectively.

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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 $3.3 million for 2014, compared to $2.7 million for 2013. Net loan charge-offs/recoveries were $3.8 million in 2014 and $3.1 million in 2013.

At December 31, 2014, the Company’s allowance for loan losses decreased to $18.0 million, from $18.6 million at December 31, 2013, a decrease of $517,000 or 2.8%. The ratio of the allowance for loan loss to total loans decreased to 2.5% of loans at December 31, 2014, from 2.8% of loans at December 31, 2013. The allowance for loan losses to nonperforming loans coverage ratio increased to 67.1% at December 31, 2014, from 51.6% at December 31, 2013.

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, 2014. We continue to aggressively manage all loan relationships. Credit monitoring and tracking systems are established. Updated appraisals are being obtained, where appropriate, to ensure that collateral values are sufficient to cover outstanding loan balances. 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.

14

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.

15

Rate Sensitivity Analysis.The interest rate sensitivity position as of December 31, 2014, is presented in the table below. Assets and liabilities are scheduled based on maturity or re-pricing 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, 2014, our interest sensitive liabilities exceeded interest sensitive assets within a one year period by $55.4 million, or 60.0%, of total assets.

	As of December 31, 2014
	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	$	92,579		$	111,406		$	201,362		$	181,543		$	126,171		$	713,061
Investment securities		5,686			3,254			6,263			6,074			9,072			30,349
Federal funds sold and cash equivalents		32,205			—			—			—			—			32,205
Total interest-earning assets	$	130,470		$	114,660		$	207,625		$	187,617		$	135,243		$	775,615
Interest-bearing liabilities:
Regular savings deposits	$	9,237		$	27,709		$	74,477		$	66,312		$	16,565		$	194,300
NOW and money market deposits		7,923			23,771			62,865			37,812			3,602			135,973
Retail time deposits		57,260			117,893			64,247			15,391			—			254,791
Brokered time deposits		11,751			8,405			159			—			—			20,315
Borrowed funds		23,403			13,202			21,150			5,000			—			62,755
Total interest-bearing liabilities	$	109,574		$	190,980		$	222,898		$	124,515		$	20,167		$	668,134
Interest rate sensitive gap	$	20,896		$	(76,320	)	$	(15,273	)	$	63,102		$	115,076		$	107,481
Cumulative interest rate gap	$	20,896		$	(55,424	)	$	(70,697	)	$	(7,595	)	$	107,481		$	—
Ratio of rate-sensitive assets to rate-sensitive liabilities		119.07	%		60.04	%		93.15	%		150.68	%		670.62	%		116.09	%

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 110.1% and 104.4% at December 31, 2014 and December 31, 2013, respectively. Funds received from new and existing depositors provided a large source of liquidity during 2014 and 2013. 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.

16

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 $20.3 million and $5.2 million at December 31, 2014 and December 31, 2013, 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, 2014, the Bank maintained unused lines of credit with the FHLBNY totaling $44.0 million.

As of December 31, 2014, the Bank's investment securities portfolio included $26.6 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, 2014 and 2013, commitments to extend credit amounted to approximately $52.8 million and $33.5 million, respectively.

17

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, 2014 and 2013, standby letters of credit with customers were $6.8 million and $6.1 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, 2014. 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, 2014.

	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		$	175,153		$	64,247		$	15,391		$	—		$	254,791
Brokered time deposits			20,156			159			—			—			20,315
Borrowed funds			23,202			21,150			5,000			13,403			62,755
Operating lease obligations			140			138			—			—			278
Total contractual obligations		$	218,651		$	85,694		$	20,391		$	13,403		$	338,139
	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		$	32,751		$	—		$	—		$	—		$	32,751
Lines of Credit			17,991			16,103			986			17,732			52,812
Total Commitments		$	50,742		$	16,103		$	986		$	17,732		$	85,563

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.

18

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 and cash dividends declared during each quarter of the last two fiscal years. Prices reflect a 10% stock dividend paid in May 2013.

2014	Cash Dividends Paid		High			Low
1st Quarter	$	0.00		$	12.07		$	8.82
2nd Quarter	$	0.00		$	12.03		$	10.80
3rd Quarter	$	0.05		$	11.89		$	10.50
4th Quarter	$	0.05		$	11.55		$	10.07
2013
1st Quarter	$	0.00		$	6.79		$	4.58
2nd Quarter	$	0.00		$	8.33		$	6.36
3rd Quarter	$	0.00		$	9.06		$	7.73
4th Quarter	$	0.00		$	9.05		$	8.58

The number of shareholders of record of common stock as of March 12, 2015, was approximately 398. This does not reflect the number of persons or entities who held stock in nominee or "street" name through various brokerage firms. At March 12, 2015, there were 6,014,112 shares of our common stock outstanding.

In June of 2014, the Company instituted a quarterly cash dividend of $0.05 per share, paying the dividend in July 2014 and October 2014, totaling $598,000. In January 2015 the Company announced an increase to $0.06 a share beginning in April 2015. 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.

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.

19

Pursuant to the terms of the Series B Preferred Stock, the Company may not pay a cash dividend on the common stock unless all dividends on the Series B Preferred Stock for the then-current dividend period have been paid or set aside.

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).

20

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 in 1992. 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, 2014.

March 20, 2015

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

21

Parke Bancorp, Inc. and Subsidiaries

Consolidated Financial Report

December 31, 2014

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, 2014 and 2013 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, 2014 and 2013, 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 20, 2015

1

Parke Bancorp, Inc. and Subsidiaries
Consolidated Balance Sheets
December 31, 2014 and 2013
(Amounts in thousands except share and per share data)	December 31,			December 31,
	2014			2013
Assets
Cash and due from financial institutions	$	4,033		$	4,278
Federal funds sold and cash equivalents		32,205			41,383
Cash and cash equivalents		36,238			45,661
Investment securities available for sale, at fair value		28,208			35,695
Investment securities held to maturity (fair value of $2,377 at December 31, 2014 and $2,155 December 31, 2013)		2,141			2,103
Total investment securities		30,349			37,798
Loans held for sale		2,932			12,069
Loans, net of unearned income		713,061			654,541
Less: Allowance for loan losses		(18,043	)		(18,560	)
Net loans		695,018			635,981
Accrued interest receivable		2,827			2,717
Premises and equipment, net		4,490			3,864
Other real estate owned (OREO)		20,931			28,910
Restricted stock, at cost		3,152			3,618
Bank owned life insurance (BOLI)		11,464			11,106
Deferred tax asset		10,518			12,260
Other assets		3,787			959
Total Assets	$	821,706		$	794,943
Liabilities and Equity
Liabilities
Deposits
Noninterest-bearing deposits	$	42,554		$	35,986
Interest-bearing deposits		605,379			590,782
Total deposits		647,933			626,768
FHLBNY borrowings		49,352			55,280
Subordinated debentures		13,403			13,403
Accrued interest payable		445			423
Other liabilities		7,523			5,105
Total liabilities		718,656			700,979
Equity
Preferred stock, 1,000,000 shares authorized, $1,000 liquidation value Series B non-cumulative convertible; issued: 20,000 shares at December 31, 2014 and December 31, 2013		20,000			20,000
Common stock, $.10 par value; authorized 15,000,000 shares; Issued:  6,208,259 shares at December 31, 2014 and 6,193,710 shares at  December 31, 2013		621			619
Additional paid-in capital		51,316			51,204
Retained earnings		32,983			24,308
Accumulated other comprehensive income (loss)		165			(235	)
Treasury stock, 210,900 shares at December 31, 2014 and December  31, 2013, at cost		(2,180	)		(2,180	)
Total shareholders’ equity		102,905			93,716
Noncontrolling interest in consolidated subsidiaries		145			248
Total equity		103,050			93,964
Total liabilities and equity	$	821,706		$	794,943
See accompanying notes to consolidated financial statements

2

Parke Bancorp, Inc. and Subsidiaries
Consolidated Statements of Income
Years Ended December 31, 2014 and 2013
(Amounts in thousands except share and per share data)	2014			2013
Interest income:
Interest and fees on loans	$	36,967		$	35,944
Interest and dividends on investments		1,054			731
Interest on federal funds sold and cash equivalents		111			109
Total interest income		38,132			36,784
Interest expense:
Interest on deposits		4,746			5,032
Interest on borrowings		833			763
Total interest expense		5,579			5,795
Net interest income		32,553			30,989
Provision for loan losses		3,250			2,700
Net interest income after provision for loan losses		29,303			28,289
Noninterest income
Gain on sale of SBA loans		5,040			2,225
Gain on sale of investment securities		178			251
Loan fees		1,071			702
Net income from BOLI		359			363
Service fees on deposit accounts		269			268
Other than temporary impairment losses		—			(955	)
Loss on sale and write-down of real estate owned		(596	)		(662	)
Other		1,310			1,234
Total noninterest income		7,631			3,426
Noninterest expense
Compensation and benefits		7,306			6,733
Professional services		1,456			1,646
Occupancy and equipment		1,165			1,087
Data processing		484			482
FDIC insurance		858			1,127
OREO expense		3,883			4,563
Other operating expense		3,759			3,214
Total noninterest expense		18,911			18,852
Income before income tax expense		18,023			12,863
Income tax expense		5,711			3,625
Net income attributable to Company and noncontrolling interest		12,312			9,238
Net income attributable to noncontrolling interest		(1,839	)		(1,667	)
Net income attributable to Company		10,473			7,571
Discount on retirement of preferred shares		—			1,948
Preferred stock dividend and discount accretion		(1,200	)		(1,058	)
Net income available to common shareholders	$	9,273		$	8,461
Earnings per common share
Basic	$	1.55		$	1.42
Diluted	$	1.32		$	1.42
Weighted average shares outstanding
Basic		5,991,226			5,964,018
Diluted		7,924,859			5,965,568
See accompanying notes to consolidated financial statements

3

Parke Bancorp, Inc. and Subsidiaries
Consolidated Statements of Comprehensive Income
Years Ended December 31, 2014 and 2013
	For the Year ended December 31,
	2014			2013
	(Amounts in thousands)
Net income available to common shareholders	$	9,273		$	8,461
Unrealized gains on securities:
Non-credit related unrealized gains on securities with OTTI		—			42
Unrealized gains on securities without OTTI		844			815
Less re-class adjustment for gains on securities included in
net income		(178	)		(251	)
Tax Impact		(266	)		(242	)
Total unrealized gains on securities		400			364
Gross pension liability adjustments		—			243
Tax Impact		—			(97	)
Total pension liability adjustment		—			146
Total other comprehensive income		400			510
Total comprehensive income	$	9,673		$	8,971
See accompanying notes to consolidated financial statements

4

Parke Bancorp, Inc. and Subsidiaries
Consolidated Statements of Equity
Years Ended December 31, 2014 and 2013
(Amounts in thousands except share data)
	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
Balance, December 31, 2012	$	16,065			5,594,793	$	560	$	48,869			$	21,068		$	(745	)	$	(2,180	)	$	83,637		$	(94	)	$	83,543
Capital withdrawals by noncontrolling interest																									(1,325	)		(1,325	)
Stock options exercised					57,591		6		284													290						290
Issuance of Series B preferred stock		20,000							(1,461	)												18,539						18,539
Repurchase of Series A preferred stock		(16,288	)										1,948									(14,340	)					(14,340	)
Repurchase of TARP warrants									(930	)			(720	)								(1,650	)					(1,650	)
10% common stock dividend					541,326		53		4,442				(4,501	)								(6	)					(6	)
Net income													7,571									7,571			1,667			9,238
Changes in other comprehensive income																510						510						510
Accrued dividend payable													(19	)								(19	)					(19	)
Dividend on preferred stock													(816	)								(816	)					(816	)
Accretion of discount on preferred stock		223											(223	)
Balance, December 31, 2013	$	20,000			6,193,710	$	619	$	51,204			$	24,308		$	(235	)	$	(2,180	)	$	93,716		$	248		$	93,964
Capital withdrawals by noncontrolling interest																									(1,942	)		(1,942	)
Stock options exercised					14,549		2		112													114						114
Net income													10,473									10,473			1,839			12,312
Changes in other comprehensive income																400						400						400
Dividend on preferred stock													(1,200	)								(1,200	)					(1,200	)
Dividend on common stock													(598	)								(598	)					(598	)
Balance, December 31, 2014	$	20,000			6,208,259	$	621	$	51,316			$	32,983		$	165		$	(2,180	)	$	102,905		$	145		$	103,050
See accompanying notes to consolidated financial statements

5

Parke Bancorp, Inc. and Subsidiaries
Consolidated Statements of Cash Flows
Years Ended December 31, 2014 and 2013
(Amounts in thousands)	2014			2013
Cash Flows from Operating Activities
Net income	$	12,312		$	9,238
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		348			337
Provision for loan losses		3,250			2,700
Bank owned life insurance income		(358	)		(363	)
Supplemental executive retirement plan expense		—			33
Gain on sale of SBA loans		(5,040	)		(2,225	)
SBA loans originated for sale		(34,538	)		(29,471	)
Proceeds from sale of SBA loans originated for sale		48,714			20,122
Loss/Gain on sale & write down of other real estate owned, net		596			662
Contribution of OREO property		22			—
Provision for OREO		1,493			2,417
Net accretion of purchase premiums and discounts on securities		9			(135	)
Net gain from sales and write-downs of investment securities		(178	)		(251	)
Deferred income tax benefit		1,789			(126	)
Other than temporary decline in value of investments		—			955
Changes in operating assets and liabilities:
Decrease in accrued interest receivable and other assets		(2,930	)		334
Increase in accrued interest payable and other accrued liabilities		1,041			1,164
Net cash provided by operating activities		26,530			5,391
Cash Flows from Investing Activities
Purchases of investment securities available for sale		—			(22,026	)
Redemptions/purchases of restricted stock		466			(1,395	)
Proceeds from sale and call of securities available for sale		3,974			1,508
Proceeds from maturities and principal payments on mortgage backed securities		4,311			4,178
Proceeds from sale of other real estate owned		11,851			4,223
Advances on other real estate owned		(186	)		(252	)
Net increase in loans		(68,084	)		(37,808	)
Purchases of bank premises and equipment		(118	)		(113	)
Net cash used in investing activities		(47,786	)		(51,685	)
Cash Flows from Financing Activities
Cash payment of dividends		(1,575	)		(816	)
Cash payment of fractional shares on 10% stock dividend		—			(2	)
Minority interest capital withdrawal, net		(1,942	)		(1,325	)
Proceeds from exercise of stock options and warrants		114			290
Redemption from sale of TARP warrants		—			(1,650	)
Proceeds from the issuance of Series B preferred stock, net		—			18,539
Repurchase of Series A preferred stock		—			(14,340	)
Net decrease in other borrowed funds		—			(10,000	)
Net (decrease) increase in FHLBNY and short term borrowings		(5,928	)		34,832
Net increase in noninterest-bearing deposits		6,567			5,644
Net increase (decrease) in interest-bearing deposits		14,597			(16,083	)
Net cash provided by financing activities		11,833			15,089
Decrease in cash and cash equivalents		(9,423	)		(31,205	)
Cash and Cash Equivalents, January 1,		45,661			76,866
Cash and Cash Equivalents, December 31,	$	36,238		$	45,661
Supplemental Disclosure of Cash Flow Information:
Cash paid during the year for:
Interest on deposits and borrowed funds	$	5,557		$	5,909
Income taxes	$	5,300		$	4,795
Supplemental Schedule of Noncash Activities:
Real estate acquired in settlement of loans	$	5,797		$	9,903
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 its deposits are 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 subsidiary, Parke Bank. 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, 2014 and 2013, 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, 2014 and 2013, 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 and the loss taken into earnings.

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 these stocks 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, management considers 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 provisions. 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 TDR 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;

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•   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 Company’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, changes in values of collateral 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

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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-impaired loans and is based on historical charge-off experience and incurred 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.

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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 will 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, 2014 or 2013. The Company does not have an accrual for uncertain tax positions as of December 31, 2014 or 2013, 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 2011 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 2010 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, 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 2013 financial statements have been reclassified to conform to the 2014 presentation. Such reclassifications have no impact on prior year earnings and shareholders’ equity.

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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.

Accumulated other comprehensive income (loss) consisted of the following at December 31, 2014 and 2013:

	2014			2013
	(Amounts in thousands)
Securities:
Non-credit unrealized losses on available for sale securities with OTTI	$	(457	)	$	(457	)
Unrealized gains on available for sale securities without OTTI		732			65
Tax impact		(110	)		157
	$	165		$	(235	)

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 outstanding and convertible preferred stock. 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 2013 (Note 13). Earnings per common share have been computed based on the following for 2014 and 2013:

	2014		2013
	(dollars in thousands, except share data)
Basic earnings per common share
Net income available to common shareholders	$	9,273	$	8,461
Average common shares outstanding		5,991,226		5,964,018
Basic earnings per common share	$	1.55	$	1.42
Diluted earnings per common share
Net income available to common shareholders	$	9,273	$	8,461
Dividend on Preferred Series B		1,200		—
Net income available to common shareholders pre dividend on Preferred Series B	$	10,473	$	8,461
Average common shares outstanding		5,991,226		5,964,018
Dilutive potential common shares		1,933,633		1,645
Total diluted average common shares outstanding		7,924,859		5,965,663
Diluted earnings per common share	$	1.32	$	1.42

For 2014 and 2013, options to purchase 0 shares and 319,586 shares, respectively, were outstanding but were not included in the computation of diluted EPS because the options’ common stock equivalents and preferred stock 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.

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Recently Issued Accounting Pronouncements:

In January 2014, the FASB issued ASU 2014-04, "Receivables-Troubled Debt Restructurings by Creditors (Subtopic 310-40): Reclassification of Residential Real Estate Collateralized Consumer Mortgage Loans upon Foreclosure." ASU 2014-04 clarifies that an in-substance repossession or foreclosure occurs, and a creditor is considered to have received physical possession of residential real estate property collateralizing a consumer mortgage loan, upon either (a) the creditor obtaining legal title to the residential real estate property upon completion of a foreclosure or (b) the borrower conveying all interest in the residential real estate property to the creditor to satisfy that loan through completion of a deed in lieu of foreclosure or through a similar legal agreement. Additionally, ASU 2014-04 requires interim and annual disclosure of both (a) the amount of foreclosed residential real estate property held by the creditor and (b) the recorded investment in consumer mortgage loans collateralized by residential real estate property that are in the process of foreclosure according to local requirements of the applicable jurisdiction. The amendments in ASU 2014-04 are effective for fiscal years, and interim periods within those years, beginning after December 15, 2014. An entity can elect to adopt the amendments using either a modified retrospective transition method or a prospective transition method. Early adoption is permitted. The Company is currently evaluating the impact of these amendments.

In May 2014, the FASB issued Accounting Standards Update No. 2014-09, “Revenue from Contracts with Customers (ASU 2014-09),” which supersedes nearly all existing revenue recognition guidance under U.S. GAAP. The core principle of ASU 2014-09 is to recognize revenues when promised goods or services are transferred to customers in an amount that reflects the consideration to which an entity expects to be entitled for those goods or services. ASU 2014-09 defines a five step process to achieve this core principle and, in doing so, more judgment and estimates may be required within the revenue recognition process than are required under existing U.S. GAAP. The standard is effective for annual periods beginning after December 15, 2016, and interim periods therein, using either of the following transition methods: (i) a full retrospective approach reflecting the application of the standard in each prior reporting period with the option to elect certain practical expedients, or (ii) a retrospective approach with the cumulative effect of initially adopting ASU 2014-09 recognized at the date of adoption (which includes additional footnote disclosures). We are currently evaluating the impact of our pending adoption of ASU 2014-09 on our consolidated financial statements and have not yet determined the method by which we will adopt the standard in 2017.

In June 2014, the FASB issued ASU No. 2014-11, Repurchase-to-Maturity Transactions, Repurchase Financings, and Disclosures, which changes the accounting for repurchase-to-maturity transactions (repos-to-maturity) and enhances the required disclosures for repurchase agreements and other similar transactions (repos). Repos-to-maturity and the repurchase financings will be accounted for as secured borrowings. In addition, the standard requires new disclosures for repos. ASU No. 2014-11 provisions are effective for the first interim or annual period beginning after December 15, 2014. There was no significant impact to amounts reported in the consolidated financial position or results of operations from the adoption of the ASU.

In August 2014, the FASB issued ASU No. 2014-14, Classification of Certain Government-Guaranteed Mortgage Loans upon Foreclosure, which will require creditors to derecognize certain foreclosed government-guaranteed mortgage loans and to recognize a separate other receivable that is measured at the amount the creditor expects to recover from the guarantor, and to treat the guarantee and the receivable as a single unit of account. ASU 2014-14 is effective for public business entities for annual

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periods, and interim periods within those annual periods, beginning after December 15, 2014. The Company is currently evaluating the impact of these amendments.

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, 2014 or 2013, 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, 2014 and 2013: 

As of December 31, 2014	Amortized cost			Gross unrealized gains			Gross unrealized losses			Other than temporary impairments in OCI			Fair value
Available for sale:	(Amounts in thousands)
Corporate debt obligations		$	500		$	22		$	—		$	—		$	522
Residential mortgage-backed securities			26,252			754			59			—			26,947
Collateralized mortgage obligations			375			15			—			—			390
Collateralized debt obligations			806			—			—			457			349
Total available for sale		$	27,933		$	791		$	59		$	457		$	28,208
Held to maturity:
States and political subdivisions		$	2,141		$	236		$	—		$	—		$	2,377

As of December 31, 2013	Amortized cost			Gross unrealized gains			Gross unrealized losses			Other than temporary impairments in OCI			Fair value
Available for sale:	(Amounts in thousands)
Corporate debt obligations		$	500		$	6		$	—		$	—		$	506
Residential mortgage-backed securities			30,422			285			257			—			30,450
Collateralized mortgage obligations			564			31			—			—			595
Collateralized debt obligations			4,601			—			—			457			4,144
Total available for sale		$	36,087		$	322		$	257		$	457		$	35,695
Held to maturity:
States and political subdivisions		$	2,103		$	52		$	—		$	—		$	2,155

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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, 2014, 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		—		—
Due after ten years		1,306		871
Residential mortgage-backed securities and collateralized mortgage obligations		26,627		27,337
Total available for sale	$	27,933	$	28,208

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		2,141		2,377
Total held to maturity	$	2,141	$	2,377

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.

During the year ending December 31, 2014, the Company sold three investment securities with a carrying value of $4.0 million, recognizing a gain of $178,000. During the year ending December 31, 2013, the Company sold 2 investment securities with a carrying value of $6,500, recognizing a gain of $250,496.

Securities with a carrying value of $15.0 million and $12.3 million, respectively, were pledged to secure public deposits at December 31, 2014 and 2013.

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, 2014 and December 31, 2013:

As of December 31, 2014	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:
Residential mortgage-backed securities		$	3,968		$	59		$	—		$	—		$	3,968		$	59
Total available for sale		$	3,968		$	59		$	—		$	—		$	3,968		$	59

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As of December 31, 2013	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:
Residential mortgage-backed securities		$	25,286		$	257		$	—		$	—		$	25,286		$	257
Total available for sale		$	25,286		$	257		$	—		$	—		$	25,286		$	257

Residential Mortgage-Backed Securities

The unrealized losses on the Company’s investment in mortgage-backed securities relates to eight securities. The losses were caused by movement in interest rates. The securities were issued by FNMA, a government sponsored entity. 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 the investment in these securities to be OTTI at December 31, 2014.

Other Than Temporarily Impaired Debt Securities

The Company assesses whether we intend to sell or whether 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 OTTI 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

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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 2014 and 2013:

	2014			2013
	(Amounts in thousands)
Beginning balance	$	1,126		$	1,219
Initial credit impairment		—			—
Subsequent credit impairments		—			—
Increases for impairment recognized in earnings due to intent or requirement to sell		—			955
Reductions for securities sold		(955	)		(994	)
Reductions for securities deemed worthless(1)		—			(54	)
Reductions for increases in cash flows expected to be collected		—			—
Ending balance	$	171		$	1,126

(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, 2014 and 2013 are as follows:

	2014		2013
	(Amounts in thousands)
Available for sale securities:
Realized gains	$	178	$	251
Realized (losses)		—		—
Other than temporary impairment		—		(955	)
Total available for sale securities	$	178	$	(704	)
Held to maturity securities:
Realized gains	$	—	$	—
Realized (losses)		—		—
Other than temporary impairment		—		—
Total held to maturity securities	$	—	$	—

During 2014, the Company recognized a gain of $178,000 from the sale of three trust preferred securities.

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Note 4.  Loans

The portfolio of loans outstanding consists of:

	December 31, 2014					December 31, 2013
	Amount		Percentage of Total Loans			Amount		Percentage of Total Loans
	(Amounts in thousands)
Commercial and Industrial	$	30,092		4.2	%	$	23,001		3.5	%
Real Estate Construction:
Residential		5,859		0.8			7,389		1.1
Commercial		47,921		6.7			43,749		6.7
Real Estate Mortgage:
Commercial – Owner Occupied		176,649		24.8			170,122		26.0
Commercial – Non-owner Occupied		237,918		33.4			220,364		33.7
Residential – 1 to 4 Family		171,894		24.1			148,160		22.6
Residential – Multifamily		25,173		3.5			24,103		3.7
Consumer		17,555		2.5			17,653		2.7
Total Loans	$	713,061		100.0	%	$	654,541		100.0	%

At December 31, 2014 and 2013, approximately $180.7 million and $132.4 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.

The Company 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 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 information depends on the size and complexity of the credit and the collateral that secures the loan. The Company’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 Company’s market area.

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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 analyses 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, including multi-family 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, 2014, approximately 42.6% of the outstanding principal balance of the Company’s commercial real estate loans were secured by owner-occupied properties.

The Company 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 Company 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 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

19

presented to management. The Company maintains a risk monitoring program through 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. No one industry sector exceeds 10% of total loans.

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 2014 and 2013 is as follows:

	2014			2013
	(Amounts in thousands)
Balance, beginning of year	$	19,636		$	18,889
Advances		5,644			1,799
Less: repayments		(4,897	)		(1,052	)
Balance, end of year	$	20,383		$	19,636

An age analysis of past due loans by class follows:

December 31, 2014	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	$	—	$		1,874	$		61	$		1,935	$		28,157	$	30,092	$		—
Real Estate Construction:
Residential		—			—			238			238			5,621		5,859			—
Commercial		—			—			10,773			10,773			37,148		47,921			—
Real Estate Mortgage:
Commercial – Owner Occupied		—			—			735			735			175,914		176,649			—
Commercial – Non-owner Occupied		—			—			8,624			8,624			229,294		237,918			—
Residential – 1 to 4 Family		629			20			6,367			7,016			164,878		171,894			—
Residential – Multifamily		364			—			—			364			24,809		25,173			—
Consumer		—			—			94			94			17,461		17,555			—
Total Loans	$	993	$		1,894	$		26,892	$		29,779	$		683,282	$	713,061	$		—

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December 31, 2013	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	$	—	$		—	$		122	$		122	$		22,879	$	23,001	$		—
Real Estate Construction:
Residential		—			—			967			967			6,422		7,389			—
Commercial		—			—			9,908			9,908			33,841		43,749			—
Real Estate Mortgage:
Commercial – Owner Occupied		710			1,438			976			3,124			166,998		170,122			—
Commercial – Non-owner Occupied		—			478			10,853			11,331			209,033		220,364			—
Residential – 1 to 4 Family		1,013			—			12,914			13,927			134,233		148,160			—
Residential – Multifamily		—			—			99			99			24,004		24,103			—
Consumer		32			—			115			147			17,506		17,653			—
Total Loans	$	1,755	$		1,916	$		35,954	$		39,625	$		614,916	$	654,541	$		—

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 that are secured by real estate 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 costs 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 within a 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 six 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, 2014	Recorded Investment		Unpaid Principal Balance		Related Allowance
	(Amounts in thousands)
With no related allowance recorded:
Commercial and Industrial	$	61	$	401	$	—
Real Estate Construction:
Residential		—		—		—
Commercial		4,033		4,161		—
Real Estate Mortgage:
Commercial – Owner Occupied		735		1,132		—
Commercial – Non-owner Occupied		8,175		10,616		—
Residential – 1 to 4 Family		2,548		3,291		—
Residential – Multifamily		—		—		—
Consumer		94		94		—
		15,646		19,695		—
With an allowance recorded:
Commercial and Industrial		2,346		2,346		1,040
Real Estate Construction:
Residential		238		979		238
Commercial		10,025		10,025		2,535
Real Estate Mortgage:
Commercial – Owner Occupied		5,216		5,245		114
Commercial – Non-owner Occupied		22,232		22,232		828
Residential – 1 to 4 Family		5,412		5,575		573
Residential – Multifamily		364		364		5
Consumer		—		—		—
		45,833		46,766		5,333
Total:
Commercial and Industrial		2,407		2,747		1,040
Real Estate Construction:
Residential		238		979		238
Commercial		14,058		14,186		2,535
Real Estate Mortgage:
Commercial – Owner Occupied		5,951		6,377		114
Commercial – Non-owner Occupied		30,407		32,848		828
Residential – 1 to 4 Family		7,960		8,866		573
Residential – Multifamily		364		364		5
Consumer		94		94		—
	$	61,479	$	66,461	$	5,333

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December 31, 2013	Recorded Investment		Unpaid Principal Balance		Related Allowance
	(Amounts in thousands)
With no related allowance recorded:
Commercial and Industrial	$	—	$	—	$	—
Real Estate Construction:
Residential		780		1,521		—
Commercial		9,568		9,592		—
Real Estate Mortgage:
Commercial – Owner Occupied		787		842		—
Commercial – Non-owner Occupied		10,853		13,153		—
Residential – 1 to 4 Family		9,892		10,084		—
Residential – Multifamily		99		306		—
Consumer		65		65		—
		32,044		35,563		—
With an allowance recorded:
Commercial and Industrial		622		622		131
Real Estate Construction:
Residential		187		661		21
Commercial		2,168		2,225		290
Real Estate Mortgage:
Commercial – Owner Occupied		5,752		5,782		331
Commercial – Non-owner Occupied		22,234		22,234		801
Residential – 1 to 4 Family		5,430		5,857		338
Residential – Multifamily		370		370		6
Consumer		49		49		23
		36,812		37,800		1,941
Total:
Commercial and Industrial		622		622		131
Real Estate Construction:
Residential		967		2,182		21
Commercial		11,736		11,817		290
Real Estate Mortgage:
Commercial – Owner Occupied		6,539		6,624		331
Commercial – Non-owner Occupied		33,087		35,387		801
Residential – 1 to 4 Family		15,322		15,941		338
Residential – Multifamily		469		676		6
Consumer		114		114		23
	$	68,856	$	73,363	$	1,941

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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, 2014 and 2013:

	Year Ended December 31,
	2014				2013
	Average Recorded Investment		Interest Income Recognized		Average Recorded Investment		Interest Income Recognized
	(Amounts in thousands)
Commercial and Industrial	$	2,686	$	129	$	622	$	31
Real Estate Construction:
Residential		816		—		1,476		—
Commercial		15,434		323		12,023		128
Real Estate Mortgage:
Commercial – Owner Occupied		6,966		303		6,557		301
Commercial – Non-owner Occupied		34,854		1,369		38,859		1,386
Residential – 1 to 4 Family		9,196		242		16,177		382
Residential – Multifamily		366		20		1,359		83
Consumer		94		1		115		3
Total	$	70,412	$	2,387	$	77,188	$	2,314

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 $32.7 million and $32.9 million with related allowances of $812,000 and $1.1 million as of December 31, 2014 and December 31, 2013, respectively. Non-performing TDRs totaled $9.5 million and $18.1 million with related allowances of $293,000 and $71,000 as of December 31, 2014 and December 31, 2013, respectively. All TDRs are classified as impaired loans and are included in the impaired loan disclosures above.

There were no loans modified during the years ended December 31, 2014 and 2013.

There was one loan of $187,000 that was modified and deemed a TDR that subsequently defaulted during 2013.

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.

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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, 2014 and 2013 is as follows:

At December 31, 2014	Pass		OAEM		Substandard		Doubtful		Total
	(Amounts in thousands)
Commercial and Industrial	$	27,104	$	642	$	2,346	$	—	$	30,092
Real Estate Construction:
Residential		5,621		—		238		—		5,859
Commercial		34,255		2,893		10,773		—		47,921
Real Estate Mortgage:
Commercial – Owner Occupied		170,685		4,051		1,913		—		176,649
Commercial – Non-owner Occupied		218,230		5,791		13,897		—		237,918
Residential – 1 to 4 Family		162,787		613		8,494		—		171,894
Residential – Multifamily		24,809		—		364		—		25,173
Consumer		17,461		—		94		—		17,555
Total	$	660,952	$	13,990	$	38,119	$	—	$	713,061

At December 31, 2013	Pass		OAEM		Substandard		Doubtful		Total
	(Amounts in thousands)
Commercial and Industrial	$	20,270	$	1,916	$	815	$	—	$	23,001
Real Estate Construction:
Residential		6,422		—		967		—		7,389
Commercial		25,519		—		18,230		—		43,749
Real Estate Mortgage:
Commercial – Owner Occupied		162,606		2,293		5,223		—		170,122
Commercial – Non-owner Occupied		198,321		10,835		11,208		—		220,364
Residential – 1 to 4 Family		131,792		1,925		14,443		—		148,160
Residential – Multifamily		22,580		1,054		469		—		24,103
Consumer		17,538		—		115		—		17,653
Total	$	585,048	$	18,023	$	51,470	$	—	$	654,541

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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, 2014 and 2013 is as follows:

Allowance for Loan Losses:	For the year ended December 31, 2014
	Beginning Balance		Charge-offs			Recoveries		Provisions			Ending Balance
	(Amounts in thousands)
Commercial and Industrial	$	591	$	(395	)	$	—	$	1,483		$	1,679
Real Estate Construction:
Residential		414		—			5		(103	)		316
Commercial		948		(16	)		—		2,083			3,015
Real Estate Mortgage:
Commercial – Owner Occupied		4,735		(476	)		5		(968	)		3,296
Commercial – Non-owner Occupied		7,530		(50	)		—		(2,518	)		4,962
Residential – 1 to 4 Family		3,612		(2,841	)		32		3,353			4,156
Residential – Multifamily		389		—			—		(32	)		357
Consumer		341		(31	)		—		(48	)		262
Unallocated		—		—			—		—			—
Total	$	18,560	$	(3,809	)	$	42	$	3,250		$	18,043

Allowance for Loan Losses:	For the year ended December 31, 2013
	Beginning Balance		Charge-offs			Recoveries		Provisions			Ending Balance
	(Amounts in thousands)
Commercial and Industrial	$	470	$	(4	)	$	—	$	125		$	591
Real Estate Construction:
Residential		845		—			—		(431	)		414
Commercial		1,115		—			—		(167	)		948
Real Estate Mortgage:
Commercial – Owner Occupied		4,095		(77	)		1		716			4,735
Commercial – Non-owner Occupied		7,379		(2,641	)		—		2,792			7,530
Residential – 1 to 4 Family		4,384		(554	)		210		(428	)		3,612
Residential – Multifamily		312		(8	)		—		85			389
Consumer		336		(3	)		—		8			341
Unallocated		—		—			—		—			—
Total	$	18,936	$	(3,287	)	$	211	$	2,700		$	18,560

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Allowance for Loan Losses, at December 31, 2014	Individually evaluated for impairment		Collectively evaluated for impairment		Total
	(Amounts in thousands)
Commercial and Industrial	$	1,040	$	639	$	1,679
Real Estate Construction:
Residential		238		78		316
Commercial		2,535		480		3,015
Real Estate Mortgage:
Commercial – Owner Occupied		114		3,182		3,296
Commercial – Non-owner Occupied		828		4,134		4,962
Residential – 1 to 4 Family		573		3,583		4,156
Residential – Multifamily		5		352		357
Consumer		—		262		262
Total	$	5,333	$	12,710	$	18,043

Allowance for Loan Losses, at December 31, 2013	Individually evaluated for impairment		Collectively evaluated for impairment		Total
	(Amounts in thousands)
Commercial and Industrial	$	131	$	460	$	591
Real Estate Construction:
Residential		21		393		414
Commercial		290		658		948
Real Estate Mortgage:
Commercial – Owner Occupied		331		4,404		4,735
Commercial – Non-owner Occupied		801		6,729		7,530
Residential – 1 to 4 Family		338		3,274		3,612
Residential – Multifamily		6		383		389
Consumer		23		318		341
Total	$	1,941	$	16,619	$	18,560

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Loans, at December 31, 2014:	Individually evaluated for impairment		Collectively evaluated for impairment		Total
	(Amounts in thousands)
Commercial and Industrial	$	2,407	$	27,685	$	30,092
Real Estate Construction:
Residential		238		5,621		5,859
Commercial		14,058		33,863		47,921
Real Estate Mortgage:
Commercial – Owner Occupied		5,951		170,698		176,649
Commercial – Non-owner Occupied		30,407		207,511		237,918
Residential – 1 to 4 Family		7,960		163,934		171,894
Residential – Multifamily		364		24,809		25,173
Consumer		94		17,461		17,555
Total	$	61,479	$	651,582	$	713,061

Loans, at December 31, 2013:	Individually evaluated for impairment		Collectively evaluated for impairment		Total
	(Amounts in thousands)
Commercial and Industrial	$	622	$	22,379	$	23,001
Real Estate Construction:
Residential		967		6,422		7,389
Commercial		11,736		32,013		43,749
Real Estate Mortgage:
Commercial – Owner Occupied		6,539		163,583		170,122
Commercial – Non-owner Occupied		33,087		187,277		220,364
Residential – 1 to 4 Family		15,322		132,838		148,160
Residential – Multifamily		469		23,634		24,103
Consumer		114		17,539		17,653
Total	$	68,856	$	585,685	$	654,541

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Note 6.  Company Premises and Equipment

A summary of the cost and accumulated depreciation and amortization of Company premises and equipment as of December 31, 2014 and 2013 is as follows:

	Estimated Useful lives	2014			2013
		(Amounts in thousands)
Land		$	820		$	820
Building and improvements	12 years		4,947			4,091
Furniture and equipment	9.6 years		2,031			1,913
Total premises and equipment			7,798			6,824
Less: accumulated depreciation and amortization			(3,308	)		(2,960	)
Premises and equipment, net		$	4,490		$	3,864

Depreciation and amortization expense was $348,000 and $337,000 in 2014 and 2013, 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, 2014, the required future minimum rental payments under these leases and other equipment operating leases are as follows:

Years Ending December 31,	(Amounts in thousands)
2015		140
2016		107
2017		31
Total minimum lease payments	$	278

Rent expense was approximately $134,600 in 2014 and $140,000 in 2013.

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Note 7.  OREO

OREO at December 31, 2014 was $20.9 million, compared to $28.9 million at December 31, 2013, a decrease of $8.0 million. The real estate owned at December 31, 2014 consisted of 19 properties, the largest being a condominium development at $9.1 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 2014, the Company disposed of $11.9 million of OREO, recognizing a gain of $722,000, compared to $4.2 million of OREO sold in 2013, recognizing a loss of $141,000. Also during 2014, the Company wrote down OREO property by $1.3 million, compared to $521,000 of write-downs in 2013, based on a decline in appraised values. There was a valuation allowance related to OREO of $1.5 million as of December 31, 2014, compared to a valuation allowance related to OREO of $2.4 million as of December 31, 2013. Operating expenses related to OREO, net of related income, for 2014 and 2013, were $3.9 million and $4.6 million, respectively.

An analysis of OREO activity for the years ended December 31, 2014 and 2013 is as follows:

	For the Year Ended December 31,
	2014			2013
	(Amounts in thousands)
Balance at beginning of period	$	28,910		$	26,057
Real estate acquired in settlement of loans		5,797			9,903
Allowance for OREO		(1,493	)		(2,417	)
Sales of real estate		(11,851	)		(4,223	)
Gain (loss) on sale of real estate		722			(141	)
Write-down of real estate carrying values		(1,318	)		(521	)
Donated property		(22	)		—
Reimbursement of funds		(251	)		—
Capitalized improvements to real estate		437			252
Balance at end of period	$	20,931		$	28,910

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Note 8.  Deposits

Deposits at December 31, 2014 and 2013 consisted of the following:

	2014		2013
	(Amounts in thousands)
Demand deposits, noninterest-bearing	$	42,554	$	35,986
Demand deposits, interest-bearing		28,652		29,197
Money market deposits		107,321		93,743
Savings deposits		194,300		224,486
Time deposits of $250,000 or more		28,916		21,561
Other time deposits		225,875		216,579
Brokered time deposits		20,315		5,216
Total deposits	$	647,933	$	626,768

Scheduled maturities of certificates of deposit at December 31, 2014 are as follows:

Years Ending December 31,	(Amounts in thousands)
2015	$	195,309
2016		40,438
2017		23,968
2018		11,841
2019		3,550
Thereafter		—
Total	$	275,106

Deposits from related parties totaled approximately $4,964,000 and $5,446,000 at December 31, 2014 and 2013, respectively.

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Note 9.  Borrowings

An analysis of borrowings as of December 31, 2014 and 2013 is as follows:

		2014			2013
	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	$	—	—	$	—	—
Other repurchase agreements	July 2013	$	—	—	$	—	—
Federal Home Loan Bank advances	Less than one year	$	23,202	0.58%	$	19,900	1.18%
	One to three years		21,150	1.35%		18,380	0.90%
	Three to five years		5,000	2.06%		17,000	1.75%
	Five to ten years		—	—		—	—
	Total	$	49,352		$	55,280
Subordinated debentures, capital trusts	November 2035	$	5,155	1.89%	$	5,155	1.90%
	November 2035		5,155	1.89%		5,155	1.90%
	September 2037		3,093	1.74%		3,093	1.74%
	Total	$	13,403		$	13,403

At December 31, 2014, the Company had a $93.4 million line of credit from the FHLBNY, of which $49.4 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 1.89% at December 31, 2014. 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.

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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 1.89%. 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 1.74% at December 31, 2014. 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.

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Note 10.  Income Taxes

Income tax expense for 2014 and 2013 consisted of the following:

	2014		2013
	(Amounts in thousands)
Current tax expense:
Federal	$	2,938	$	2,657
State		984		1,094
		3,922		3,751
Deferred tax benefit		1,789		(126	)
Income tax expense	$	5,711	$	3,625

The components of the net deferred tax asset at December 31, 2014 and 2013 were as follows:

	2014			2013
	(Amounts in thousands)
Deferred tax assets
Allowance for loan losses	$	6,849		$	7,204
Stock compensation		—			29
Depreciation		349			162
SERP		1,271			2,222
Capitalized OREO expense		1,984			1,563
OTTI write down on securities		65			437
Nonaccrued interest		952			1,528
Discount accretion		—			27
		11,470			13,172
Deferred tax liabilities:
Deferred loan costs		(842	)		(755	)
Unrealized gains and losses		(110	)		(157	)
		(952	)		(912	)
Net deferred tax asset	$	10,518		$	12,260

A reconciliation of the Company’s effective income tax rate with the statutory federal rate for 2014 and 2013 is as follows:

	2014			2013
	(Amounts in thousands)
At Federal statutory rate	$	6,128		$	4,373
Adjustments resulting from:
State income taxes, net of Federal tax benefit		675			727
Noncontrolling interest		(625	)		(1,422	)
Tax exempt income		(31	)		(30	)
Dividend exclusion		—			(22	)
BOLI		(122	)		(127	)
Nondeductible expenses		5			—
Other		(319	)		126
	$	5,711		$	3,625

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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 2011, and by the State of New Jersey for years before 2010.

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 $135,000 in 2014 and $230,000 in 2013. The unfunded benefit obligation, which was included in other liabilities, was approximately $3,350,000 at December 31, 2014 and $3,218,000 at December 31, 2013.

The benefit obligation at December 31, 2014 and December 31, 2013 was calculated as follows:

	2014			2013
	(Amounts in thousands)
Benefit obligation, January 1	$	3,218		$	3,137
Service cost		(50	)		(55	)
Interest cost		176			170
Loss (gain)		6			(34	)
Benefit obligation, December 31	$	3,350		$	3,218

The net periodic pension cost for 2014 and 2013 was calculated as follows:

	2014			2013
	(Amounts in thousands)
Service cost	$	(50	)	$	(55	)
Interest cost		176			170
Loss (gain)		9			115
	$	135		$	230

The discount rate used in determining the actuarial present value of the projected benefit obligation was 5.5% for both 2014 and 2013. Annual benefit payments are estimated at $0 for 2015, $126,000 for 2016, $252,000 for 2017, $314,000 for 2018, $344,000 for 2019 through 2031, and $583,000 through 2039.

The Company has a 401(k) 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 2014 was $118,000 and $122,000 in 2013.

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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 required 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 required 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.

Effective May 19, 2014, the FDIC and the Department terminated the Consent Orders entered into between Parke Bank, the Company’s wholly owned subsidiary, and the FDIC and the Department.

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, 2014 and 2013, that the Company and the Bank met all capital adequacy requirements to which they are subject.

As of December 31, 2014 and 2013, 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, 2014 that management believes have changed the Bank's capital category.

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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, 2014	(Amounts in thousands except ratios)
Total Risk Based Capital	$	123,539		17.23	%	$	57,367		8	%	$	N/A		N/A
(to Risk Weighted Assets)
Tier 1 Capital	$	114,593		15.98	%	$	28,684		4	%	$	N/A		N/A
(to Risk Weighted Assets)
Tier 1 Capital	$	114,593		14.12	%	$	32,460		4	%	$	N/A		N/A
(to Average Assets)
As of December 31, 2013
Total Risk Based Capital	$	115,554		17.04	%	$	54,259		8	%	$	N/A		N/A
(to Risk Weighted Assets)
Tier 1 Capital	$	106,952		15.77	%	$	27,130		4	%	$	N/A		N/A
(to Risk Weighted Assets)
Tier 1 Capital	$	106,952		13.94	%	$	30,463		4	%	$	N/A		N/A
(to Average Assets)
Parke Bank
As of December 31, 2014
Total Risk Based Capital	$	123,609		17.22	%	$	57,426		8	%	$	71,783		10	%
(to Risk Weighted Assets)
Tier 1 Capital	$	114,664		15.97	%	$	28,713		4	%	$	43,070		6	%
(to Risk Weighted Assets)
Tier 1 Capital	$	114,664		14.27	%	$	32,150		4	%	$	40,188		5	%
(to Average Assets)
As of December 31, 2013
Total Risk Based Capital	$	114,744		16.92	%	$	54,259		8	%	$	67,824		10	%
(to Risk Weighted Assets)
Tier 1 Capital	$	106,142		15.65	%	$	27,130		4	%	$	40,694		6	%
(to Risk Weighted Assets)
Tier 1 Capital	$	106,142		13.94	%	$	30,463		4	%	$	38,079		5	%
(to Average Assets)

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Note 13.  Shareholders’ Equity

Common Stock Dividend: In July 2014 and October 2014 the Company paid a cash dividend of $0.05 a share, totaling $598,000. In May 2013 the Company paid a 10% common stock dividend to shareholders, 541,326 shares. All 2013 share and per share information has been retroactively adjusted to give effect to this stock dividend.

Treasury Stock: No transactions occurred in 2014 or 2013 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. 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 2014 and 2013.

Option awards are granted with an exercise price equal to the market price of the Company’s stock at the date of the grant. All options issued have 10 year contractual terms and were fully vested as of December 31, 2014.

The following table summarizes stock option activity for the year ended December 31, 2014.

Options	Shares	Weighted Average Exercise Price		Weighted Average Remaining Contractual Life	Aggregate Intrinsic Value
Outstanding at January 1, 2014	331,694	$	9.20
Exercised	14,549	$	7.77
Expired/terminated	5,275	$	7.60
Outstanding at December 31, 2014	311,870	$	9.29	0.9	$	704,760
Exercisable at December 31, 2014	311,870	$	9.29	0.9	$	704,760

Stock options outstanding and exercisable at December 31, 2014 are as follows:

Exercise Prices	Number Outstanding	Weighted Average Remaining Contractual Life
$8.10	47,753	0.2
$9.45	245,598	1.0
$10.26	18,519	1.8
	311,870	0.9

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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 required 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 had a dividend rate of 5% per year until the fifth anniversary of the Treasury investment and a dividend of 9%, thereafter. The CPP also required 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 Fixed Rate Cumulative Perpetual Preferred Stock, Series A, of $16.3 million 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 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 were accounted for as equity securities.

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 were lifted.

In June of 2013, the U.S. Treasury held an auction to sell the warrants and the Company was the successful bidder thereby redeeming the outstanding warrants from the U.S. Treasury at a cost of $1.7 million.

In December of 2013, the Company completed a private placement of newly designated 6.00% Non-Cumulative Perpetual Convertible Preferred Stock, Series B, with a liquidation preference of $1,000 per share. The Company sold 20,000 shares in the placement for gross proceeds of $20.0 million. Each share of Series B Preferred Stock is convertible, at the option of the holder into 93.9496 shares of Common Stock. Upon full conversion of the Series B Preferred Stock, the Company will issue up to 1,878,992 shares of Common Stock assuming that the Conversion Rate does not change. The Conversion Rate and the total number of shares to be issued would be adjusted for stock dividends, stock splits and other corporate actions. The Conversion Rate was set using a conversion price for the common stock of $10.64, which was approximately 20% over the closing price of the common stock on October 10, 2013, the day the Series B Preferred Stock was priced. Proceeds after expenses were $18.5 million. Parke Bancorp utilized a portion of the proceeds to repurchase and retire 16,288 shares of outstanding Fixed Rate Cumulative Perpetual Preferred Stock, Series A. The Company was able to repurchase these shares for an aggregate price of $14.34 million, a discount of $1.9 million.

The Company has recorded dividends on preferred stock in the approximate amount of $1.2 million and $1.1 million for the years ended December 31, 2014 and 2013 respectively. All dividend amounts through December 31, 2014 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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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 $252,000 in 2014 and $323,000 in 2013. 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 $582,000 in 2014 and $539,000 in 2013.

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, 2014 and 2013, commitments to extend credit amounted to approximately $52.8 million and $33.5 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, 2014 and 2013, standby letters of credit with customers were $6.8 million and $6.1 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, 2014. 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.

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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.

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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 TruPS.

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).

44

The table below presents the balances of assets and liabilities measured at fair value on a recurring basis at December 31, 2014 and 2013.

Financial Assets	Level 1		Level 2		Level 3		Total
	(Amounts in thousands)
Securities Available for Sale
As of December 31, 2014
Corporate debt obligations		—		522		—		522
Residential mortgage-backed securities		—		26,947		—		26,947
Collateralized mortgage-backed securities		—		390		—		390
Collateralized debt obligations		—		—		349		349
Total	$	—	$	27,859	$	349	$	28,208
As of December 31, 2013
Corporate debt obligations		—		506		—		506
Residential mortgage-backed securities		—		30,450		—		30,450
Collateralized mortgage-backed securities				595		—		595
Collateralized debt obligations		—		—		4,144		4,144
Total	$	—	$	31,551	$	4,144	$	35,695

For the year ended December 31, 2014, 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
	2014			2013
	(Amounts in thousands)
Beginning balance at January 1,	$	4,144		$	3,942
Total net losses included in:
Other comprehensive gain (loss) – CDO’s		—			202
Settlements		(3,795	)		—
Net transfers into Level 3		—			—
Ending balance December 31,	$	349		$	4,144

45

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, 2014
Collateral dependent impaired loans	$	—	$	—	$	35,711	$	35,711
OREO	$	—	$	—	$	20,931	$	20,931
As of December 31, 2013
Collateral dependent impaired loans	$	—	$	—	$	41,311	$	41,311
OREO	$	—	$	—	$	28,910	$	28,910

Collateral dependent impaired loans, which are measured in accordance with FASB ASC Topic 310 “Receivables”, for impairment, had a carrying amount of $35.7 million and $41.3 million at December 31, 2014 and December 31, 2013 respectively, with a valuation allowance of $4.7 million and $1.0 million at December 31, 2014 and December 31, 2013 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 real estate properties which are recorded at fair value. All properties have an independent third-party full appraisal to determine the fair value, less cost to sell (a range of 5% to 10%) and other costs, such as unpaid real estate taxes, that have been identified. 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.

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.

46

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, 2014 and December 31, 2013:

	Level in Fair Value Hierarchy	December 31, 2014				December 31, 2013
		Carrying Value		Fair Value		Carrying Value		Fair Value
		(Amounts in thousands)
Financial Assets:
Cash and cash equivalents	Level 1	$	36,238		36,238	$	45,661	$	45,661
Investment securities AFS	(1)		28,208		28,208		35,695		35,695
Investment securities HTM	Level 2		2,141		2,377		2,103		2,155
Restricted stock	Level 2		3,152		3,152		3,618		3,618
Loans held for sale	Level 2		2,932		3,328		12,069		13,698
Loans, net	(2)		695,018		698,843		635,981		641,449
Accrued interest receivable	Level 2		2,827		2,827		2,717		2,717
Financial Liabilities:
Demand and savings deposits	Level 2	$	372,827		372,827	$	383,412	$	383,412
Time deposits	Level 2		275,106		276,528		243,356		245,094
Borrowings	Level 2		62,755		60,297		68,683		64,185
Accrued interest payable	Level 2		445		445		423		423

(1)See the recurring fair value table above.

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

47

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,
	2014		2013
	(Amounts in thousands)
Assets:
Cash	$	138	$	1,097
Investments in subsidiaries		116,378		106,311
Other assets		56		5
Total assets	$	116,572	$	107,413
Liabilities and Equity:
Subordinated debentures	$	13,403	$	13,403
Other liabilities		264		294
Equity		102,905		93,716
Total liabilities and equity	$	116,572	$	107,413
Statements of Income	Years ended December 31,
	2014		2013
	(Amounts in thousands)
Income:
Dividends from bank subsidiary	$	1,180	$	2,684
Other income		—		—
Total income		1,180		2,684
Expense:
Interest on subordinated debentures		251		255
Salary		80		160
Other expenses		51		100
Total expenses		382		515
Income before income taxes		798		2,169
Equity in undistributed income of subsidiaries		9,675		5,402
Net income		10,473		7,571
Discount on Series A preferred stock		—		1,948
Preferred stock dividend and discount accretion		(1,200)		(1,058)
Net income available to common shareholders	$	9,273	$	8,461

48

Statements of Cash Flows
	Years ended December 31,
	2014			2013
	(Amounts in thousands)
Cash Flows from Operating Activities
Net income	$	10,473		$	7,571
Adjustments to reconcile net income to net cash provided by operating activities:
Equity in undistributed earnings of subsidiaries		(9,675	)		(5,402	)
Changes in operating assets and liabilities:
Increase in other assets		—			—
(Decrease) increase in accrued interest payable and other accrued liabilities		(30	)		161
Net cash provided by operating activities		768			2,330
Cash Flows from Investing Activities
Net cash used in investing activities		—			—
Cash Flows from Financing Activities
Proceeds from issuance of Series B preferred stock, net		—			18,539
Redemption of Series A preferred stock		(250	)		(14,340	)
Proceeds from exercise of stock options		114			290
Payment of dividend on preferred stock and common stock		(1,575	)		(816	)
Other, net		(16	)		(4,959	)
Net cash used in financing activities		(1,727	)		(1,286	)
(Decrease)/increase in cash and cash equivalents		(959	)		1,044
Cash and Cash Equivalents, January 1,		1,097			53
Cash and Cash Equivalents, December 31,	$	138		$	1,097

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.

49

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		Daniel J. Dalton
Chairman of the Board of Directors		Vice Chairman of the Board of Directors
Chairman - Pennoni Associates		Former Vice President with Brown
		& Brown
	Vito S. Pantilione
	President, Chief Executive and Director
Fred G. Choate Director	Arret F. Dobson Director		Edward Infantolino Director
President of Greater Philadelphia Venture Capital Corporation	Real Estate Developer		President of Ocean Internal Medicine Associates, P.A.
Anthony J. Jannetti Director	Jeffrey H. Kripitz Director		Jack C. Sheppard, Jr. Director
President of Anthony J. Jannetti, Inc.	Owner of Jeff Kripitz Agency		Executive Vice President with Gallagher Bollinger Insurance
	Ray H. Tresch Director
	Former 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 Computershare 480 Washington Boulevard Jersey City, NJ 07310	Independent Auditors McGladrey LLP 751 Arbor Way, Suite 200 Blue Bell, PA 19422		Special Counsel Jones Walker LLP 1227 25th Street, N.W. Suite 200 West Washington, D.C. 20037

50

PARKE BANK

Officers
Vito S. Pantilione		Elizabeth A. Milavsky
President & Chief Executive Officer		Executive Vice President & Chief Operating Officer
John F. Hawkins		Ralph Gallo
Senior Vice President & Chief Financial Officer		Senior Vice President & Chief Workout Officer
David O. Middlebrook		Paul E. Palmieri
Senior Vice President & Chief Credit Officer		Senior Vice President & Senior Loan Officer
Daniel Sulpizio		Dolores M. Calvello
Senior Vice President		Vice President
Allen M. Bachman		Kathleen A. Conover
Vice President		Vice President
Timothy Cole		Gil Eubank
Vice President		Vice President
Todd Detwiler		Lisa Perkins
Vice President		Vice President
Nino Lombardo		James S. Talarico
Vice President & Controller		Vice President
Marlon R. Soriano		Roxanne Melfe
Vice President		Assistant Vice President
Frank Zangari		Nicholas Pantilione
Vice President		Assistant Vice President
Marysharon Mitchell		Bart Seaman
Assistant Vice President		Assistant Vice President
Mary Ann Seal		Jennifer Schok
Assistant Vice President		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

EX-21

Subsidiaries of the Registrant

 Parent

 Parke Bancorp, Inc.

Subsidiary	State or Other Jurisdiction Of Incorporation	Percentage Ownership
Parke Bank	New Jersey	100%
Parke Capital Trust I	Delaware	100%
Parke Capital Trust II	Delaware	100%
Parke Capital Trust III	Delaware	100%
		100%
Subsidiaries of Parke Bank		100%
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 20, 2015, relating to our audit of the 2014 Consolidated Financial Statements of Parke Bancorp, Inc., which appear in the Annual Report on Form 10-K of Parke Bancorp, Inc. for the year ended December 31, 2014.

/s/ McGladrey LLP

Blue Bell, Pennsylvania

March 20, 2015

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, 2014;

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 20, 2015	/s/ Vito S. Pantilone
		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, 2014;

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 20, 2015	/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, 2014 (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 20, 2015

XML

Fair Value (Tables)

12 Months Ended

Dec. 31, 2014

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, 2014 and 2013.

Financial Assets	Level 1		Level 2		Level 3		Total
	(Amounts in thousands)
Securities Available for Sale
As of December 31, 2014
Corporate debt obligations		—		522		—		522
Residential mortgage-backed securities		—		26,947		—		26,947
Collateralized mortgage-backed securities		—		390		—		390
Collateralized debt obligations		—		—		349		349
Total	$	—	$	27,859	$	349	$	28,208
As of December 31, 2013
Corporate debt obligations		—		506		—		506
Residential mortgage-backed securities		—		30,450		—		30,450
Collateralized mortgage-backed securities				595		—		595
Collateralized debt obligations		—		—		4,144		4,144
Total	$	—	$	31,551	$	4,144	$	35,695

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
	2014			2013
	(Amounts in thousands)
Beginning balance at January 1,	$	4,144		$	3,942
Total net losses included in:
Other comprehensive gain (loss) – CDO's		—			202
Settlements		(3,795	)		—
Net transfers into Level 3		—			—
Ending balance December 31,	$	349		$	4,144

Fair Value on a Non-recurring Basis

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, 2014
Collateral dependent impaired loans	$	—	$	—	$	35,711	$	35,711
OREO	$	—	$	—	$	20,931	$	20,931
As of December 31, 2013
Collateral dependent impaired loans	$	—	$	—	$	41,311	$	41,311
OREO	$	—	$	—	$	28,910	$	28,910

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, 2014 and December 31, 2013:

				December 31, 2014				December 31, 2013
	Level in Fair Value Hierarchy			Carrying Value		Fair Value		Carrying Value		Fair Value
				(Amounts in thousands)
Financial Assets:
Cash and cash equivalents	Level 1			$	36,238		36,238	$	45,661	$	45,661
Investment securities AFS		(1	)		28,208		28,208		35,695		35,695
Investment securities HTM	Level 2				2,141		2,377		2,103		2,155
Restricted stock	Level 2				3,152		3,152		3,618		3,618
Loans held for sale	Level 2				2,932		3,328		12,069		13,698
Loans, net		(2	)		695,018		698,843		635,981		641,449
Accrued interest receivable	Level 2				2,827		2,827		2,717		2,717
Financial Liabilities:
Demand and savings deposits	Level 2			$	372,827		372,827	$	383,412	$	383,412
Time deposits	Level 2				275,106		276,528		243,356		245,094
Borrowings	Level 2				62,755		60,297		68,683		64,185
Accrued interest payable	Level 2				445		445		423		423

XML

Retirement Plans (Details) (USD $)	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013
Defined benefit plan net periodic benefit cost [Abstract]
Discount rate of benefit obligation (in hundredths)	5.50%	5.50%
Defined Benefit Plan, Expected Future Benefit Payments, Fiscal Year Maturity [Abstract]
Estimated annual benefit payments for 2015	$ 0
Estimated annual benefit payments for 2016	126,000
Estimated annual benefit payments for 2017	252,000
Estimated annual benefit payments for 2018	314,000
Estimated annual benefit payments for 2019	344,000
Estimated annual benefit payments for 2031 through 2039	583,000
Employee contribution (in hundredths)	3.00%
Plan expenses	118,000	122,000
Supplemental Employee Retirement Plans [Member]
Defined Benefit Plan Disclosure [Line Items]
Unfunded benefit obligation	3,350,000	3,218,000
Defined benefit plan change in benefit obligation [Roll Forward]
Benefit obligation, January 1	3,218,000	3,137,000
Service cost	(50,000)	(55,000)
Interest cost	176,000	170,000
Loss (gain)	6,000	(34,000)
Benefit obligation, December 31	3,350,000	3,218,000
Defined benefit plan net periodic benefit cost [Abstract]
Service cost	(50,000)	(55,000)
Interest cost	176,000	170,000
Loss (gain)	9,000	115,000
Net periodic benefit cost	$ 135,000	$ 230,000

XML

Allowance for Loan Losses (Details) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2014 Grade	Dec. 31, 2013
Allowance for Loan Losses [Abstract]
Grade for a loan to be evaluated for impairment, minimum	6
Allowance for Loan Losses [Roll Forward]
Beginning Balance	$ 18,560	$ 18,936
Charge-offs	(3,809)	(3,287)
Recoveries	42	211
Provisions	3,250	2,700
Ending Balance	18,043	18,560
Loans and Allowances for Loan Losses [Abstract]
Allowances for loan losses, Individually evaluated for impairment	5,333	1,941
Allowances for loan losses, Collectively evaluated for impairment	12,710	16,619
Allowance for loan losses	18,043	18,560
Loans, Individually evaluated for impairment	61,479	68,856
Loans, Collectively evaluated for impairment	651,582	585,685
Loans	713,061	654,541
Commercial and Industrial [Member]
Allowance for Loan Losses [Roll Forward]
Beginning Balance	591	470
Charge-offs	(395)	(4)
Recoveries	0	0
Provisions	1,483	125
Ending Balance	1,679	591
Loans and Allowances for Loan Losses [Abstract]
Allowances for loan losses, Individually evaluated for impairment	1,040	131
Allowances for loan losses, Collectively evaluated for impairment	639	460
Allowance for loan losses	1,679	591
Loans, Individually evaluated for impairment	2,407	622
Loans, Collectively evaluated for impairment	27,685	22,379
Loans	30,092	23,001
Residential [Member]
Allowance for Loan Losses [Roll Forward]
Beginning Balance	414	845
Charge-offs	0	0
Recoveries	5	0
Provisions	(103)	(431)
Ending Balance	316	414
Loans and Allowances for Loan Losses [Abstract]
Allowances for loan losses, Individually evaluated for impairment	238	21
Allowances for loan losses, Collectively evaluated for impairment	78	393
Allowance for loan losses	316	414
Loans, Individually evaluated for impairment	238	967
Loans, Collectively evaluated for impairment	5,621	6,422
Loans	5,859	7,389
Commercial [Member]
Allowance for Loan Losses [Roll Forward]
Beginning Balance	948	1,115
Charge-offs	(16)	0
Recoveries	0	0
Provisions	2,083	(167)
Ending Balance	3,015	948
Loans and Allowances for Loan Losses [Abstract]
Allowances for loan losses, Individually evaluated for impairment	2,535	290
Allowances for loan losses, Collectively evaluated for impairment	480	658
Allowance for loan losses	3,015	948
Loans, Individually evaluated for impairment	14,058	11,736
Loans, Collectively evaluated for impairment	33,863	32,013
Loans	47,921	43,749
Commercial - Owner Occupied [Member]
Allowance for Loan Losses [Roll Forward]
Beginning Balance	4,735	4,095
Charge-offs	(476)	(77)
Recoveries	5	1
Provisions	(968)	716
Ending Balance	3,296	4,735
Loans and Allowances for Loan Losses [Abstract]
Allowances for loan losses, Individually evaluated for impairment	114	331
Allowances for loan losses, Collectively evaluated for impairment	3,182	4,404
Allowance for loan losses	3,296	4,735
Loans, Individually evaluated for impairment	5,951	6,539
Loans, Collectively evaluated for impairment	170,698	163,583
Loans	176,649	170,122
Commercial - Non-owner Occupied [Member]
Allowance for Loan Losses [Roll Forward]
Beginning Balance	7,530	7,379
Charge-offs	(50)	(2,641)
Recoveries	0	0
Provisions	(2,518)	2,792
Ending Balance	4,962	7,530
Loans and Allowances for Loan Losses [Abstract]
Allowances for loan losses, Individually evaluated for impairment	828	801
Allowances for loan losses, Collectively evaluated for impairment	4,134	6,729
Allowance for loan losses	4,962	7,530
Loans, Individually evaluated for impairment	30,407	33,087
Loans, Collectively evaluated for impairment	207,511	187,277
Loans	237,918	220,364
Residential - 1 to 4 Family [Member]
Allowance for Loan Losses [Roll Forward]
Beginning Balance	3,612	4,384
Charge-offs	(2,841)	(554)
Recoveries	32	210
Provisions	3,353	(428)
Ending Balance	4,156	3,612
Loans and Allowances for Loan Losses [Abstract]
Allowances for loan losses, Individually evaluated for impairment	573	338
Allowances for loan losses, Collectively evaluated for impairment	3,583	3,274
Allowance for loan losses	4,156	3,612
Loans, Individually evaluated for impairment	7,960	15,322
Loans, Collectively evaluated for impairment	163,934	132,838
Loans	171,894	148,160
Residential - Multifamily [Member]
Allowance for Loan Losses [Roll Forward]
Beginning Balance	389	312
Charge-offs	0	(8)
Recoveries	0	0
Provisions	(32)	85
Ending Balance	357	389
Loans and Allowances for Loan Losses [Abstract]
Allowances for loan losses, Individually evaluated for impairment	5	6
Allowances for loan losses, Collectively evaluated for impairment	352	383
Allowance for loan losses	357	389
Loans, Individually evaluated for impairment	364	469
Loans, Collectively evaluated for impairment	24,809	23,634
Loans	25,173	24,103
Consumer [Member]
Allowance for Loan Losses [Roll Forward]
Beginning Balance	341	336
Charge-offs	(31)	(3)
Recoveries	0	0
Provisions	(48)	8
Ending Balance	262	341
Loans and Allowances for Loan Losses [Abstract]
Allowances for loan losses, Individually evaluated for impairment	0	23
Allowances for loan losses, Collectively evaluated for impairment	262	318
Allowance for loan losses	262	341
Loans, Individually evaluated for impairment	94	114
Loans, Collectively evaluated for impairment	17,461	17,539
Loans	17,555	17,653
Unallocated [Member]
Allowance for Loan Losses [Roll Forward]
Beginning Balance	0	0
Charge-offs	0	0
Recoveries	0	0
Provisions	0	0
Ending Balance	0	0
Loans and Allowances for Loan Losses [Abstract]
Allowance for loan losses	$ 0	$ 0

XML

Regulatory Matters (Details) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2014	Dec. 31, 2013
Parke Bancorp Inc. [Member]
Total Risk Based Capital (to Risk Weighted Assets) [Abstract]
Actual, Amount	$ 123,539	$ 115,554
For Capital Adequacy Purposes, Amount	57,367	54,259
Tier 1 Capital (to Risk Weighted Assets) [Abstract]
Actual, Amount	114,593	106,952
For Capital Adequacy Purposes, Amount	28,684	27,130
Total Risk Based Capital and Tier 1 Capital (to Risk Weighted Assets) [Abstract]
Total Risk Based Capital, Actual, Ratio (in hundredths)	17.23%	17.04%
Total Risk Based Capital, For Capital Adequacy Purposes, Ratio (in hundredths)	8.00%	8.00%
Tier 1 Capital, Actual, Ratio (in hundredths)	15.98%	15.77%
Tier 1 Capital, For Capital Adequacy Purposes, Ratio (in hundredths)	4.00%	4.00%
Tier 1 Capital (to Average Assets) [Abstract]
Actual, Amount	114,593	106,952
For Capital Adequacy Purposes, Amount	32,460	30,463
Tier 1 Capital (to Average Assets) [Abstract]
Actual, Ratio (in hundredths)	14.12%	13.94%
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	123,609	114,744
For Capital Adequacy Purposes, Amount	57,426	54,259
To be Well-Capitalized Under Prompt Corrective Action Provisions, Amount	71,783	67,824
Tier 1 Capital (to Risk Weighted Assets) [Abstract]
Actual, Amount	114,664	106,142
For Capital Adequacy Purposes, Amount	28,713	27,130
To be Well-Capitalized Under Prompt Corrective Action Provisions, Amount	43,070	40,694
Total Risk Based Capital and Tier 1 Capital (to Risk Weighted Assets) [Abstract]
Total Risk Based Capital, Actual, Ratio (in hundredths)	17.22%	16.92%
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)	15.97%	15.65%
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	114,664	106,142
For Capital Adequacy Purposes, Amount	32,150	30,463
To be Well-Capitalized Under Prompt Corrective Action Provisions, Amount	$ 40,188	$ 38,079
Tier 1 Capital (to Average Assets) [Abstract]
Actual, Ratio (in hundredths)	14.27%	13.94%
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%

XML

Loans, Impaired Loans and Troubled Debt Restructurings (Details) (USD $)	12 Months Ended
	Dec. 31, 2014 Quarter	Dec. 31, 2013 Contract
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	6 months
Recorded Investment [Abstract]
With no related allowance recorded	$ 15,646,000	$ 32,044,000
With an allowance recorded	45,833,000	36,812,000
Total recorded investment	61,479,000	68,856,000
Unpaid Principal Balance [Abstract]
With no related allowance recorded	19,695,000	35,563,000
With an allowance recorded	46,766,000	37,800,000
Total unpaid principal balance	66,461,000	73,363,000
Related Allowance [Abstract]
With no related allowance recorded	0	0
With an allowance recorded	5,333,000	1,941,000
Total related allowance	5,333,000	1,941,000
Average Recorded Investment	70,412,000	77,188,000
Interest Income Recognized	2,387,000	2,314,000
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	32,700,000	32,900,000
Allowance for performing TDRs	812,000	1,100,000
Non-Performing TDRs	9,500,000	18,100,000
Allowance for nonperforming TDRs	293,000	71,000
Number of TDRs with subsequent payment default		1
Subsequent Default, Recorded Investment		187,000
Commercial and Industrial [Member]
Recorded Investment [Abstract]
With no related allowance recorded	61,000	0
With an allowance recorded	2,346,000	622,000
Total recorded investment	2,407,000	622,000
Unpaid Principal Balance [Abstract]
With no related allowance recorded	401,000	0
With an allowance recorded	2,346,000	622,000
Total unpaid principal balance	2,747,000	622,000
Related Allowance [Abstract]
With no related allowance recorded	0	0
With an allowance recorded	1,040,000	131,000
Total related allowance	1,040,000	131,000
Average Recorded Investment	2,686,000	622,000
Interest Income Recognized	129,000	31,000
Residential [Member]
Recorded Investment [Abstract]
With no related allowance recorded	0	780,000
With an allowance recorded	238,000	187,000
Total recorded investment	238,000	967,000
Unpaid Principal Balance [Abstract]
With no related allowance recorded	0	1,521,000
With an allowance recorded	979,000	661,000
Total unpaid principal balance	979,000	2,182,000
Related Allowance [Abstract]
With no related allowance recorded	0	0
With an allowance recorded	238,000	21,000
Total related allowance	238,000	21,000
Average Recorded Investment	816,000	1,476,000
Interest Income Recognized	0	0
Commercial [Member]
Recorded Investment [Abstract]
With no related allowance recorded	4,033,000	9,568,000
With an allowance recorded	10,025,000	2,168,000
Total recorded investment	14,058,000	11,736,000
Unpaid Principal Balance [Abstract]
With no related allowance recorded	4,161,000	9,592,000
With an allowance recorded	10,025,000	2,225,000
Total unpaid principal balance	14,186,000	11,817,000
Related Allowance [Abstract]
With no related allowance recorded	0	0
With an allowance recorded	2,535,000	290,000
Total related allowance	2,535,000	290,000
Average Recorded Investment	15,434,000	12,023,000
Interest Income Recognized	323,000	128,000
Commercial - Owner Occupied [Member]
Recorded Investment [Abstract]
With no related allowance recorded	735,000	787,000
With an allowance recorded	5,216,000	5,752,000
Total recorded investment	5,951,000	6,539,000
Unpaid Principal Balance [Abstract]
With no related allowance recorded	1,132,000	842,000
With an allowance recorded	5,245,000	5,782,000
Total unpaid principal balance	6,377,000	6,624,000
Related Allowance [Abstract]
With no related allowance recorded	0	0
With an allowance recorded	114,000	331,000
Total related allowance	114,000	331,000
Average Recorded Investment	6,966,000	6,557,000
Interest Income Recognized	303,000	301,000
Commercial - Non-owner Occupied [Member]
Recorded Investment [Abstract]
With no related allowance recorded	8,175,000	10,853,000
With an allowance recorded	22,232,000	22,234,000
Total recorded investment	30,407,000	33,087,000
Unpaid Principal Balance [Abstract]
With no related allowance recorded	10,616,000	13,153,000
With an allowance recorded	22,232,000	22,234,000
Total unpaid principal balance	32,848,000	35,387,000
Related Allowance [Abstract]
With no related allowance recorded	0	0
With an allowance recorded	828,000	801,000
Total related allowance	828,000	801,000
Average Recorded Investment	34,854,000	38,859,000
Interest Income Recognized	1,369,000	1,386,000
Residential - 1 to 4 Family [Member]
Recorded Investment [Abstract]
With no related allowance recorded	2,548,000	9,892,000
With an allowance recorded	5,412,000	5,430,000
Total recorded investment	7,960,000	15,322,000
Unpaid Principal Balance [Abstract]
With no related allowance recorded	3,291,000	10,084,000
With an allowance recorded	5,575,000	5,857,000
Total unpaid principal balance	8,866,000	15,941,000
Related Allowance [Abstract]
With no related allowance recorded	0	0
With an allowance recorded	573,000	338,000
Total related allowance	573,000	338,000
Average Recorded Investment	9,196,000	16,177,000
Interest Income Recognized	242,000	382,000
Residential - Multifamily [Member]
Recorded Investment [Abstract]
With no related allowance recorded	0	99,000
With an allowance recorded	364,000	370,000
Total recorded investment	364,000	469,000
Unpaid Principal Balance [Abstract]
With no related allowance recorded	0	306,000
With an allowance recorded	364,000	370,000
Total unpaid principal balance	364,000	676,000
Related Allowance [Abstract]
With no related allowance recorded	0	0
With an allowance recorded	5,000	6,000
Total related allowance	5,000	6,000
Average Recorded Investment	366,000	1,359,000
Interest Income Recognized	20,000	83,000
Consumer [Member]
Recorded Investment [Abstract]
With no related allowance recorded	94,000	65,000
With an allowance recorded	0	49,000
Total recorded investment	94,000	114,000
Unpaid Principal Balance [Abstract]
With no related allowance recorded	94,000	65,000
With an allowance recorded	0	49,000
Total unpaid principal balance	94,000	114,000
Related Allowance [Abstract]
With no related allowance recorded	0	0
With an allowance recorded	0	23,000
Total related allowance	0	23,000
Average Recorded Investment	94,000	115,000
Interest Income Recognized	$ 1,000	$ 3,000

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Deposits (Tables)

12 Months Ended

Dec. 31, 2014

Deposits [Abstract]

Summary of Deposits

Deposits at December 31, 2014 and 2013 consisted of the following:

	2014		2013
	(Amounts in thousands)
Demand deposits, noninterest-bearing	$	42,554	$	35,986
Demand deposits, interest-bearing		28,652		29,197
Money market deposits		107,321		93,743
Savings deposits		194,300		224,486
Time deposits of $250,000 or more		28,916		21,561
Other time deposits		225,875		216,579
Brokered time deposits		20,315		5,216
Total deposits	$	647,933	$	626,768

Scheduled Maturities of Certificates of Deposit

Scheduled maturities of certificates of deposit at December 31, 2014 are as follows:

Years Ending December 31,	(Amounts in thousands)
2015	$	195,309
2016		40,438
2017		23,968
2018		11,841
2019		3,550
Thereafter		—
Total	$	275,106

XML

Other Related Party Transactions (Details) (Director [Member], USD $)	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013
Director [Member]
Related Party Transaction [Line Items]
Related party transaction insurance cost	$ 252,000	$ 323,000
Employee benefits	$ 582,000	$ 539,000

XML

Subsequent Events

12 Months Ended

Dec. 31, 2014

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.

XML

OREO (Details) (USD $)	12 Months Ended
	Dec. 31, 2014 Property	Dec. 31, 2013	Dec. 31, 2010
OREO [Abstract]
Decrease in real estate owned	$ 8,000,000
Number of real estate properties owned	19
Real estate, not qualify for sales treatment			9,100,000
OREO expense, net of related income	3,900,000	4,600,000
Analysis of OREO activity [Abstract]
Balance at beginning of period	28,910,000	26,057,000
Real estate acquired in settlement of loans	5,797,000	9,903,000
Allowance for OREO	(1,493,000)	(2,417,000)
Sales of real estate	(11,851,000)	(4,223,000)
Gain (loss) on sale of real estate	722,000	(141,000)
Write-down of real estate carrying values	(1,318,000)	(521,000)
Donated property	(22,000)	0
Reimbursement of funds	(251,000)	0
Capitalized improvements to real estate	437,000	252,000
Balance at end of period	$ 20,931,000	$ 28,910,000

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Investment Securities (Details) (USD $)	12 Months Ended
	Dec. 31, 2014 Security		Dec. 31, 2013 Security
Available for sale [Abstract]
Amortized cost	$ 27,933,000		$ 36,087,000
Gross unrealized gains	791,000		322,000
Gross unrealized losses	59,000		257,000
Other than temporary impairments in OCI	457,000		457,000
Securities Available for Sale	28,208,000		35,695,000
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	0
Due after ten years	1,306,000
Residential mortgage-backed securities and collateralized mortgage obligations	26,627,000
Total available-for-sale	27,933,000
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	0
Due after ten years	871,000
Residential mortgage-backed securities and collateralized mortgage obligations	27,337,000
Total available-for-sale securities	28,208,000		35,695,000
Available for sale [Abstract]
Less Than 12 Months, Fair Value	3,968,000		25,286,000
Less Than 12 Months, Unrealized Losses	59,000		257,000
12 Months or Greater, Fair value	0		0
12 Months or Greater, Unrealized Losses	0		0
Total, Fair Value	3,968,000		25,286,000
Total, Unrealized Losses	59,000		257,000
Changes in credit loss component of credit-impaired debt securities [Roll Forward]
Beginning balance	1,126,000		1,219,000
Initial credit impairment	0		0
Subsequent credit impairments	0		0
Increases for impairment recognized in earnings due to intent or requirement to sell	0		955,000
Reductions for securities sold	(955,000)		(994,000)
Reductions for securities deemed worthless	0	[1]	(54,000)	[1]
Reductions for increases in cash flows expected to be collected	0		0
Ending balance	171,000		1,126,000
Available for sale securities [Abstract]
Realized gains	178,000		251,000
Realized (losses)	0		0
Other than temporary impairment	0		(955,000)
Total available-for-sale securities	178,000		(704,000)
Held to maturity [Abstract]
Amortized cost	2,141,000		2,103,000
Fair value	2,377,000		2,155,000
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	2,141,000
Amortized cost	2,141,000		2,103,000
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	2,377,000
Total held to maturity fair value	2,377,000		2,155,000
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
Number of security sold during period	3		2
Investment security sold, carrying value	4,000,000		6,500
Gain on sale of investments security	178,000		250,496
Carrying value of securities pledged to secure public deposits	15,000,000		12,300,000
States and Political Subdivisions [Member]
Held to maturity [Abstract]
Amortized cost	2,141,000		2,103,000
Gross unrealized gains	236,000		52,000
Gross unrealized losses	0		0
Other than temporary impairments in OCI	0		0
Fair value	2,377,000		2,155,000
Held to maturity, Amortized Cost [Abstract]
Amortized cost	2,141,000		2,103,000
Held to maturity, Fair Value [Abstract]
Total held to maturity fair value	2,377,000		2,155,000
Corporate Debt Obligations [Member]
Available for sale [Abstract]
Amortized cost	500,000		500,000
Gross unrealized gains	22,000		6,000
Gross unrealized losses	0		0
Other than temporary impairments in OCI	0		0
Securities Available for Sale	522,000		506,000
Available for sale, Fair Value [Abstract]
Total available-for-sale securities	522,000		506,000
Residential Mortgage-backed Securities [Member]
Available for sale [Abstract]
Amortized cost	26,252,000		30,422,000
Gross unrealized gains	754,000		285,000
Gross unrealized losses	59,000		257,000
Other than temporary impairments in OCI	0		0
Securities Available for Sale	26,947,000		30,450,000
Available for sale, Fair Value [Abstract]
Total available-for-sale securities	26,947,000		30,450,000
Available for sale [Abstract]
Less Than 12 Months, Fair Value	3,968,000		25,286,000
Less Than 12 Months, Unrealized Losses	59,000		257,000
12 Months or Greater, Fair value	0		0
12 Months or Greater, Unrealized Losses	0		0
Total, Fair Value	3,968,000		25,286,000
Total, Unrealized Losses	59,000		257,000
Collateralized Debt Obligations [Abstract]
Number of securities issued	8
Collateralized Mortgage Obligations [Member]
Available for sale [Abstract]
Amortized cost	375,000		564,000
Gross unrealized gains	15,000		31,000
Gross unrealized losses	0		0
Other than temporary impairments in OCI	0		0
Securities Available for Sale	390,000		595,000
Available for sale, Fair Value [Abstract]
Total available-for-sale securities	390,000		595,000
Collateralized Debt Obligations [Member]
Available for sale [Abstract]
Amortized cost	806,000		4,601,000
Gross unrealized gains	0		0
Gross unrealized losses	0		0
Other than temporary impairments in OCI	457,000		457,000
Securities Available for Sale	349,000		4,144,000
Available for sale, Fair Value [Abstract]
Total available-for-sale securities	$ 349,000		$ 4,144,000

[1] Reduction due to credit losses applied to private label CMO tranche.

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Regulatory Matters (Tables)

12 Months Ended

Dec. 31, 2014

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, 2014	(Amounts in thousands except ratios)
Total Risk Based Capital	$	123,539		17.23	%	$	57,367		8	%	$	N/	A		N/	A
(to Risk Weighted Assets)
Tier 1 Capital	$	114,593		15.98	%	$	28,684		4	%	$	N/	A		N/	A
(to Risk Weighted Assets)
Tier 1 Capital	$	114,593		14.12	%	$	32,460		4	%	$	N/	A		N/	A
(to Average Assets)
As of December 31, 2013
Total Risk Based Capital	$	115,554		17.04	%	$	54,259		8	%	$	N/	A		N/	A
(to Risk Weighted Assets)
Tier 1 Capital	$	106,952		15.77	%	$	27,130		4	%	$	N/	A		N/	A
(to Risk Weighted Assets)
Tier 1 Capital	$	106,952		13.94	%	$	30,463		4	%	$	N/	A		N/	A
(to Average Assets)
Parke Bank
As of December 31, 2014
Total Risk Based Capital	$	123,609		17.22	%	$	57,426		8	%	$	71,783			10	%
(to Risk Weighted Assets)
Tier 1 Capital	$	114,664		15.97	%	$	28,713		4	%	$	43,070			6	%
(to Risk Weighted Assets)
Tier 1 Capital	$	114,664		14.27	%	$	32,150		4	%	$	40,188			5	%
(to Average Assets)
As of December 31, 2013
Total Risk Based Capital	$	114,744		16.92	%	$	54,259		8	%	$	67,824			10	%
(to Risk Weighted Assets)
Tier 1 Capital	$	106,142		15.65	%	$	27,130		4	%	$	40,694			6	%
(to Risk Weighted Assets)
Tier 1 Capital	$	106,142		13.94	%	$	30,463		4	%	$	38,079			5	%
(to Average Assets)

XML

Borrowings (Details) (USD $)	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013
Amount [Abstract]
Federal Home Loan Bank advances	$ 49,352,000	$ 55,280,000
Weighted Average Rate [Abstract]
Subordinated debentures	13,403,000	13,403,000
Line of credit facility amount outstanding	49,400,000
Subordinated Debentures - Capital Trusts [Abstract]
Description of variable rate basis	3 month LIBOR plus a spread of 400 to 959 basis points
Federal Home Loan Bank Repurchase Agreements [Member]
Analysis of borrowings [Abstract]
Borrowed funds, Maturity Date	May 31, 2013
Borrowed funds	0	0
Weighted Average Rate [Abstract]
Weighted Average Rate (in hundredths)	0.00%	0.00%
Other Repurchase Agreements [Member]
Analysis of borrowings [Abstract]
Borrowed funds, Maturity Date	Jul. 31, 2013
Borrowed funds	0	0
Weighted Average Rate [Abstract]
Weighted Average Rate (in hundredths)	0.00%	0.00%
Federal Home Loan Bank Advances [Member]
Amount [Abstract]
Advances maturing in less than one year	23,202,000	19,900,000
Advances maturing in one to three years	21,150,000	18,380,000
Advances maturing in three to five years	5,000,000	17,000,000
Advances maturing in five to ten years	0	0
Federal Home Loan Bank advances	49,352,000	55,280,000
Weighted Average Rate [Abstract]
Advances maturing in less than one year (in hundredths)	0.58%	1.18%
Advances maturing in one to three years (in hundredths)	1.35%	0.90%
Advances maturing in three to five years (in hundredths)	2.06%	1.75%
Advances maturing in five to ten years (in hundredths)	0.00%	0.00%
Line of credit facility maximum borrowing capacity	93,400,000
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]
Borrowed funds, Maturity Date	Nov. 30, 2035
Weighted Average Rate [Abstract]
Subordinated debentures	5,155,000	5,155,000
Weighted Average Rate (in hundredths)	1.89%	1.90%
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 II [Member]
Analysis of borrowings [Abstract]
Borrowed funds, Maturity Date	Nov. 30, 2035
Weighted Average Rate [Abstract]
Subordinated debentures	5,155,000	5,155,000
Weighted Average Rate (in hundredths)	1.89%	1.90%
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]
Borrowed funds, Maturity Date	Sep. 30, 2037
Weighted Average Rate [Abstract]
Subordinated debentures	3,093,000	3,093,000
Weighted Average Rate (in hundredths)	1.74%	1.74%
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%

XML

Loans, Credit Quality Indicators (Details) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2014 Scale	Dec. 31, 2013
Financing Receivable, Recorded Investment [Line Items]
Loans	713,061	$ 654,541
Minimum [Member]
Financing Receivable, Recorded Investment [Line Items]
Loan scale for risk grade points range	1
Maximum [Member]
Financing Receivable, Recorded Investment [Line Items]
Loan scale for risk grade points range	7
Commercial and Industrial [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans	30,092	23,001
Residential [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans	5,859	7,389
Commercial [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans	47,921	43,749
Commercial - Owner Occupied [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans	176,649	170,122
Commercial - Non-owner Occupied [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans	237,918	220,364
Residential - 1 to 4 Family [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans	171,894	148,160
Residential - Multifamily [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans	25,173	24,103
Consumer [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans	17,555	17,653
Pass [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans	660,952	585,048
Pass [Member] | Commercial and Industrial [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans	27,104	20,270
Pass [Member] | Residential [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans	5,621	6,422
Pass [Member] | Commercial [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans	34,255	25,519
Pass [Member] | Commercial - Owner Occupied [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans	170,685	162,606
Pass [Member] | Commercial - Non-owner Occupied [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans	218,230	198,321
Pass [Member] | Residential - 1 to 4 Family [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans	162,787	131,792
Pass [Member] | Residential - Multifamily [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans	24,809	22,580
Pass [Member] | Consumer [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans	17,461	17,538
OAEM [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans	13,990	18,023
OAEM [Member] | Commercial and Industrial [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans	642	1,916
OAEM [Member] | Residential [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans	0	0
OAEM [Member] | Commercial [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans	2,893	0
OAEM [Member] | Commercial - Owner Occupied [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans	4,051	2,293
OAEM [Member] | Commercial - Non-owner Occupied [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans	5,791	10,835
OAEM [Member] | Residential - 1 to 4 Family [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans	613	1,925
OAEM [Member] | Residential - Multifamily [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans	0	1,054
OAEM [Member] | Consumer [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans	0	0
Substandard [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans	38,119	51,470
Substandard [Member] | Commercial and Industrial [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans	2,346	815
Substandard [Member] | Residential [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans	238	967
Substandard [Member] | Commercial [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans	10,773	18,230
Substandard [Member] | Commercial - Owner Occupied [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans	1,913	5,223
Substandard [Member] | Commercial - Non-owner Occupied [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans	13,897	11,208
Substandard [Member] | Residential - 1 to 4 Family [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans	8,494	14,443
Substandard [Member] | Residential - Multifamily [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans	364	469
Substandard [Member] | Consumer [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans	94	115
Doubtful [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans	0	0
Doubtful [Member] | Commercial and Industrial [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans	0	0
Doubtful [Member] | Residential [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans	0	0
Doubtful [Member] | Commercial [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans	0	0
Doubtful [Member] | Commercial - Owner Occupied [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans	0	0
Doubtful [Member] | Commercial - Non-owner Occupied [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans	0	0
Doubtful [Member] | Residential - 1 to 4 Family [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans	0	0
Doubtful [Member] | Residential - Multifamily [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans	0	0
Doubtful [Member] | Consumer [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans	0	$ 0

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Cash and Due from Banks

12 Months Ended

Dec. 31, 2014

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, 2014 or 2013, because reserve requirements were covered by vault cash.

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Loans (Details) (USD $)	Dec. 31, 2014	Dec. 31, 2013
Portfolio of loans outstanding [Abstract]
Loans Amount	$ 713,061,000	$ 654,541,000
Percentage of Total Loans (in hundredths)	100.00%	100.00%
Loans pledged	180,700,000	132,400,000
Loan Origination/Risk Management [Abstract]
Outstanding principal balance (in hundredths)	42.60%
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	30,092,000	23,001,000
Percentage of Total Loans (in hundredths)	4.20%	3.50%
Residential [Member]
Portfolio of loans outstanding [Abstract]
Loans Amount	5,859,000	7,389,000
Percentage of Total Loans (in hundredths)	0.80%	1.10%
Commercial [Member]
Portfolio of loans outstanding [Abstract]
Loans Amount	47,921,000	43,749,000
Percentage of Total Loans (in hundredths)	6.70%	6.70%
Commercial - Owner Occupied [Member]
Portfolio of loans outstanding [Abstract]
Loans Amount	176,649,000	170,122,000
Percentage of Total Loans (in hundredths)	24.80%	26.00%
Commercial - Non-owner Occupied [Member]
Portfolio of loans outstanding [Abstract]
Loans Amount	237,918,000	220,364,000
Percentage of Total Loans (in hundredths)	33.40%	33.70%
Residential - 1 to 4 Family [Member]
Portfolio of loans outstanding [Abstract]
Loans Amount	171,894,000	148,160,000
Percentage of Total Loans (in hundredths)	24.10%	22.60%
Residential - Multifamily [Member]
Portfolio of loans outstanding [Abstract]
Loans Amount	25,173,000	24,103,000
Percentage of Total Loans (in hundredths)	3.50%	3.70%
Consumer [Member]
Portfolio of loans outstanding [Abstract]
Loans Amount	$ 17,555,000	$ 17,653,000
Percentage of Total Loans (in hundredths)	2.50%	2.70%

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Loans (Tables)

12 Months Ended

Dec. 31, 2014

Loans [Abstract]

Portfolio of Loans Outstanding

The portfolio of loans outstanding consists of:

	December 31, 2014					December 31, 2013
	Amount		Percentage of Total Loans			Amount		Percentage of Total Loans
	(Amounts in thousands)
Commercial and Industrial	$	30,092		4.2	%	$	23,001		3.5	%
Real Estate Construction:
Residential		5,859		0.8			7,389		1.1
Commercial		47,921		6.7			43,749		6.7
Real Estate Mortgage:
Commercial – Owner Occupied		176,649		24.8			170,122		26.0
Commercial – Non-owner Occupied		237,918		33.4			220,364		33.7
Residential – 1 to 4 Family		171,894		24.1			148,160		22.6
Residential – Multifamily		25,173		3.5			24,103		3.7
Consumer		17,555		2.5			17,653		2.7
Total Loans	$	713,061		100.0	%	$	654,541		100.0	%

Analysis of Loans to Related Parties

An analysis of the activity of such related party loans for 2014 and 2013 is as follows:

	2014				2013
	(Amounts in thousands)
Balance, beginning of year		$	19,636			$	18,889
Advances			5,644				1,799
Less: repayments			(4,897	)			(1,052	)
Balance, end of year		$	20,383			$	16,636

Age Analysis of Past Due Loans by Class

An age analysis of past due loans by class follows:

December 31, 2014	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	$	—	$	1,874	$	61	$	1,935	$	28,157	$	30,092	$	—
Real Estate Construction:
Residential		—		—		238		238		5,621		5,859		—
Commercial		—		—		10,773		10,773		37,148		47,921		—
Real Estate Mortgage:
Commercial – Owner Occupied		—		—		735		735		175,914		176,649		—
Commercial – Non-owner Occupied		—		—		8,624		8,624		229,294		237,918		—
Residential – 1 to 4 Family		629		20		6,367		7,016		164,878		171,894		—
Residential – Multifamily		364		—		—		364		24,809		25,173		—
Consumer		—		—		94		94		17,461		17,555		—
Total Loans	$	993	$	1,894	$	26,892	$	29,779	$	683,282	$	713,061	$	—

December 31, 2013	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	$	—	$	—	$	122	$	122	$	22,879	$	23,001	$	—
Real Estate Construction:
Residential		—		—		967		967		6,422		7,389		—
Commercial		—		—		9,908		9,908		33,841		43,749		—
Real Estate Mortgage:
Commercial – Owner Occupied		710		1,438		976		3,124		166,998		170,122		—
Commercial – Non-owner Occupied		—		478		10,853		11,331		209,033		220,364		—
Residential – 1 to 4 Family		1,013		—		12,914		13,927		134,233		148,160		—
Residential – Multifamily		—		—		99		99		24,004		24,103		—
Consumer		32		—		115		147		17,506		17,653		—
Total Loans	$	1,755	$	1,916	$	35,954	$	39,625	$	614,916	$	654,541	$	—

Impaired Loans

Impaired loans are set forth in the following tables.

December 31, 2014	Recorded Investment		Unpaid Principal Balance		Related Allowance
	(Amounts in thousands)
With no related allowance recorded:
Commercial and Industrial	$	61	$	401	$	—
Real Estate Construction:
Residential		—		—		—
Commercial		4,033		4,161		—
Real Estate Mortgage:
Commercial – Owner Occupied		735		1,132		—
Commercial – Non-owner Occupied		8,175		10,616		—
Residential – 1 to 4 Family		2,548		3,291		—
Residential – Multifamily		—		—		—
Consumer		94		94		—
		15,646		19,695		—
With an allowance recorded:
Commercial and Industrial		2,346		2,346		1,040
Real Estate Construction:
Residential		238		979		238
Commercial		10,025		10,025		2,535
Real Estate Mortgage:
Commercial – Owner Occupied		5,216		5,245		114
Commercial – Non-owner Occupied		22,232		22,232		828
Residential – 1 to 4 Family		5,412		5,575		573
Residential – Multifamily		364		364		5
Consumer		—		—		—
		45,833		46,766		5,333
Total:
Commercial and Industrial		2,407		2,747		1,040
Real Estate Construction:
Residential		238		979		238
Commercial		14,058		14,186		2,535
Real Estate Mortgage:
Commercial – Owner Occupied		5,951		6,377		114
Commercial – Non-owner Occupied		30,407		32,848		828
Residential – 1 to 4 Family		7,960		8,866		573
Residential – Multifamily		364		364		5
Consumer		94		94		—
	$	61,479	$	66,461	$	5,333

December 31, 2013	Recorded Investment		Unpaid Principal Balance		Related Allowance
	(Amounts in thousands)
With no related allowance recorded:
Commercial and Industrial	$	—	$	—	$	—
Real Estate Construction:
Residential		780		1,521		—
Commercial		9,568		9,592		—
Real Estate Mortgage:
Commercial – Owner Occupied		787		842		—
Commercial – Non-owner Occupied		10,853		13,153		—
Residential – 1 to 4 Family		9,892		10,084		—
Residential – Multifamily		99		306		—
Consumer		65		65		—
		32,044		35,563		—
With an allowance recorded:
Commercial and Industrial		622		622		131
Real Estate Construction:
Residential		187		661		21
Commercial		2,168		2,225		290
Real Estate Mortgage:
Commercial – Owner Occupied		5,752		5,782		331
Commercial – Non-owner Occupied		22,234		22,234		801
Residential – 1 to 4 Family		5,430		5,857		338
Residential – Multifamily		370		370		6
Consumer		49		49		23
		36,812		37,800		1,941
Total:
Commercial and Industrial		622		622		131
Real Estate Construction:
Residential		967		2,182		21
Commercial		11,736		11,817		290
Real Estate Mortgage:
Commercial – Owner Occupied		6,539		6,624		331
Commercial – Non-owner Occupied		33,087		35,387		801
Residential – 1 to 4 Family		15,322		15,941		338
Residential – Multifamily		469		676		6
Consumer		114		114		23
	$	68,856	$	73,363	$	1,941

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, 2014 and 2013:

	Year Ended December 31,
	2014				2013
	Average Recorded Investment		Interest Income Recognized		Average Recorded Investment		Interest Income Recognized
	(Amounts in thousands)
Commercial and Industrial	$	2,686	$	129	$	622	$	31
Real Estate Construction:
Residential		816		—		1,476		—
Commercial		15,434		323		12,023		128
Real Estate Mortgage:
Commercial – Owner Occupied		6,966		303		6,557		301
Commercial – Non-owner Occupied		34,854		1,369		38,859		1,386
Residential – 1 to 4 Family		9,196		242		16,177		382
Residential – Multifamily		366		20		1,359		83
Consumer		94		1		115		3
Total	$	70,412	$	2,387	$	77,188	$	2,314

Analysis of Credit Risk Profile by Internally Assigned Grades

An analysis of the credit risk profile by internally assigned grades as of December 31, 2014 and 2013 is as follows:

At December 31, 2014	Pass		OAEM		Substandard		Doubtful		Total
	(Amounts in thousands)
Commercial and Industrial	$	27,104	$	642	$	2,346	$	—	$	30,092
Real Estate Construction:
Residential		5,621		—		238		—		5,859
Commercial		34,255		2,893		10,773		—		47,921
Real Estate Mortgage:
Commercial – Owner Occupied		170,685		4,051		1,913		—		176,649
Commercial – Non-owner Occupied		218,230		5,791		13,897		—		237,918
Residential – 1 to 4 Family		162,787		613		8,494		—		171,894
Residential – Multifamily		24,809		—		364		—		25,173
Consumer		17,461		—		94		—		17,555
Total	$	660,952	$	13,990	$	38,119	$	—	$	713,061

At December 31, 2013	Pass		OAEM		Substandard		Doubtful		Total
	(Amounts in thousands)
Commercial and Industrial	$	20,270	$	1,916	$	815	$	—	$	23,001
Real Estate Construction:
Residential		6,422		—		967		—		7,389
Commercial		25,519		—		18,230		—		43,749
Real Estate Mortgage:
Commercial – Owner Occupied		162,606		2,293		5,223		—		170,122
Commercial – Non-owner Occupied		198,321		10,835		11,208		—		220,364
Residential – 1 to 4 Family		131,792		1,925		14,443		—		148,160
Residential – Multifamily		22,580		1,054		469		—		24,103
Consumer		17,538		—		115		—		17,653
Total	$	585,048	$	18,023	$	51,470	$	—	$	654,541

XML

Investment Securities (Tables)

12 Months Ended

Dec. 31, 2014

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, 2014 and 2013: 

As of December 31, 2014	Amortized cost		Grossunrealized gains		Grossunrealized losses		Other thantemporaryimpairments in OCI		Fair value
Available for sale:	(Amounts in thousands)
Corporate debt obligations	$	500	$	22	$	—	$	—	$	522
Residential mortgage-backed securities		26,252		754		59		—		26,947
Collateralized mortgage obligations		375		15		—		—		390
Collateralized debt obligations		806		—		—		457		349
Total available for sale	$	27,933	$	791	$	59	$	457	$	28,208
Held to maturity:
States and political subdivisions	$	2,141	$	236	$	—	$	—	$	2,377

As of December 31, 2013	Amortized cost		Grossunrealized gains		Grossunrealized losses		Other thantemporaryimpairments in OCI		Fair value
Available for sale:	(Amounts in thousands)
Corporate debt obligations	$	500	$	6	$	—	$	—	$	506
Residential mortgage-backed securities		30,422		285		257		—		30,450
Collateralized mortgage obligations		564		31		—		—		595
Collateralized debt obligations		4,601		—		—		457		4,144
Total available for sale	$	36,087	$	322	$	257	$	457	$	35,695
Held to maturity:
States and political subdivisions	$	2,103	$	52	$	—	$	—	$	2,155

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, 2014, 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		—		—
Due after ten years		1,306		871
Residential mortgage-backed securities and collateralized mortgage obligations		26,627		27,337
Total available for sale	$	27,933	$	28,208

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		2,141		2,377
Total held to maturity	$	2,141	$	2,377

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, 2014 and December 31, 2013:

As of December 31, 2014	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:
Residential mortgage-backed securities		$	3,968		$	59		$	—		$	—		$	3,968		$	59
Total available for sale		$	3,968		$	59		$	—		$	—		$	3,968		$	59

As of December 31, 2013	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:
Residential mortgage-backed securities		$	25,286		$	257		$	—		$	—		$	25,286		$	257
Total available for sale		$	25,286		$	257		$	—		$	—		$	25,286		$	257

Changes in Credit Loss Component of Credit-impaired Debt Securities

Changes in the credit loss component of credit-impaired debt securities were as follows for 2014 and 2013:

	2014			2013
	(Amounts in thousands)
Beginning balance	$	1,126		$	1,219
Initial credit impairment		—			—
Subsequent credit impairments		—			—
Increases for impairment recognized in earnings due to intent or requirement to sell		—			955
Reductions for securities sold		(955	)		(994	)
Reductions for securities deemed worthless(1)		—			(54	)
Reductions for increases in cash flows expected to be collected		—			—
Ending balance	$	171		$	1,126

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

Summary of Investment Gains and Losses

A summary of investment gains and losses recognized in income during the years ended December 31, 2014 and 2013 are as follows:

	2014		2013
	(Amounts in thousands)
Available for sale securities:
Realized gains	$	178	$	251
Realized (losses)		—		—
Other than temporary impairment		—		(955	)
Total available for sale securities	$	178	$	(704	)
Held to maturity securities:
Realized gains	$	—	$	—
Realized (losses)		—		—
Other than temporary impairment		—		—
Total held to maturity securities	$	—	$	—

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Shareholders' Equity (Details) (USD $)	1 Months Ended			6 Months Ended	12 Months Ended			0 Months Ended
	Oct. 31, 2014	Jul. 31, 2014	May 31, 2013	Jun. 30, 2013	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2009	Oct. 10, 2013
Shareholders' Equity [Abstract]
Cash dividend (in dollars per share)	$ 0.05	$ 0.05
Cash dividend paid					$ 598,000
Common stock, dividend rate (in hundredths)			10.00%
Common stock dividend (in shares)			541,326
Repurchase of company stock					0	0
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Net compensation expenses					0	0
Contractual term					P10Y
Summary of stock option activity [Roll Forward]
Outstanding (in shares)					331,694
Exercised (in shares)					14,549
Expired/terminated (in shares)					5,275
Outstanding (in shares)					311,870	331,694
Exercisable (in shares)					311,870
Weighted Average Exercise Price [Roll Forward]
Outstanding (in dollars per share)					$ 9.20
Exercised (in dollars per share)					$ 7.77
Expired/terminated (in dollars per share)					$ 7.60
Outstanding (in dollars per share)					$ 9.29	$ 9.20
Exercisable (in dollars per share)					$ 9.29
Weighted Average Remaining Contractual Life [Abstract]
Options, Outstanding					0 years 10 months 24 days
Options, Exercisable					0 years 10 months 24 days
Aggregate Intrinsic Value, Outstanding					704,760
Aggregate Intrinsic Value, Exercisable					704,760
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Number of Outstanding Options (in shares)					311,870
Weighted Average Remaining Contractual Life					0 years 10 months 24 days
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%
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							16,300,000
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
Redemption of warrants				1,700,000
Perpetual Preferred Stock, liquidation preference (in dollars per share)					$ 1,000	$ 1,000
Perpetual Preferred Stock, Issued through placement (in shares)					20,000	20,000
Discount on Perpetual Preferred Stock					0	1,948,000
Dividend on preferred stock					1,200,000	1,100,000
Series A Preferred Stock [Member]
Preferred Stock [Abstract]
Number of Perpetual Preferred Stock repurchase and retired (in shares)						16,288
Aggregate repurchase price of Perpetual Preferred Stock						14,340,000
Discount on Perpetual Preferred Stock						1,900,000
Series B Preferred Stock [Member]
Preferred Stock [Abstract]
Perpetual preferred stock, dividend rate (in hundredths)						6.00%
Proceeds from issuance of perpetual preferred stock						18,500,000
Perpetual Preferred Stock, liquidation preference (in dollars per share)						$ 1,000
Perpetual Preferred Stock, Issued through placement (in shares)						20,000
Gross proceeds from issuance of Perpetual Preferred Stock						$ 20,000,000
Conversion rate of convertible stock (in shares)						93.9496
Shares issued upon conversion (in shares)						1,878,992
Conversion price (in dollars per share)								$ 10.64
Preferred stock redemption premium (in hundredths)								20.00%
$ 8.10 [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Range of Exercise Price (in dollars per share)					$ 8.10
Number of Outstanding Options (in shares)					47,753
Weighted Average Remaining Contractual Life					0 years 2 months 12 days
$ 9.45 [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Range of Exercise Price (in dollars per share)					$ 9.45
Number of Outstanding Options (in shares)					245,598
Weighted Average Remaining Contractual Life					1 year
$ 10.26 [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Range of Exercise Price (in dollars per share)					$ 10.26
Number of Outstanding Options (in shares)					18,519
Weighted Average Remaining Contractual Life					1 year 9 months 18 days

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Loans, Related Party Loans (Details) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013
Related party loans [Roll Forward]
Balance, beginning of year	$ 19,636	$ 18,889
Advances	5,644	1,799
Less: repayments	(4,897)	(1,052)
Balance, end of year	$ 20,383	$ 19,636

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Allowance for Loan Losses (Tables)

12 Months Ended

Dec. 31, 2014

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, 2014 and 2013 is as follows:

Allowance for Loan Losses:	For the year ended December 31, 2014
	Beginning Balance		Charge-offs			Recoveries		Provisions			Ending Balance
	(Amounts in thousands)
Commercial and Industrial	$	591	$	(395	)	$	—	$	1,483		$	1,679
Real Estate Construction:
Residential		414		—			5		(103	)		316
Commercial		948		(16	)		—		2,083			3,015
Real Estate Mortgage:
Commercial – Owner Occupied		4,735		(476	)		5		(968	)		3,296
Commercial – Non-owner Occupied		7,530		(50	)		—		(2,518	)		4,962
Residential – 1 to 4 Family		3,612		(2,841	)		32		3,353			4,156
Residential – Multifamily		389		—			—		(32	)		357
Consumer		341		(31	)		—		(48	)		26
Unallocated		—		—			—		—			—
Total	$	18,560	$	(3,809	)	$	42	$	3,250		$	18,043

Allowance for Loan Losses:	For the year ended December 31, 2013
	Beginning Balance		Charge-offs			Recoveries		Provisions			Ending Balance
	(Amounts in thousands)
Commercial and Industrial	$	470	$	(4	)	$	—	$	125		$	591
Real Estate Construction:
Residential		845		—			—		(431	)		414
Commercial		1,115		—			—		(167	)		948
Real Estate Mortgage:
Commercial – Owner Occupied		4,095		(77	)		1		716			4,735
Commercial – Non-owner Occupied		7,379		(2,641	)		—		2,792			7,530
Residential – 1 to 4 Family		4,384		(554	)		210		(428	)		3,612
Residential – Multifamily		312		(8	)		—		85			389
Consumer		336		(3	)		—		8			341
Unallocated		—		—			—		—			—
Total	$	18,936	$	(3,287	)	$	211	$	2,700		$	18,560

Allowance for Loan Losses, at December 31, 2014	Individually evaluated for impairment		Collectively evaluated for impairment		Total
	(Amounts in thousands)
Commercial and Industrial	$	1,040	$	639	$	1,679
Real Estate Construction:
Residential		238		78		316
Commercial		2,535		480		3,015
Real Estate Mortgage:
Commercial – Owner Occupied		114		3,182		3,296
Commercial – Non-owner Occupied		828		4,134		4,962
Residential – 1 to 4 Family		573		3,583		4,156
Residential – Multifamily		5		352		357
Consumer		—		262		262
Total	$	5,333	$	12,710	$	18,043

Allowance for Loan Losses, at December 31, 2013	Individually evaluated for impairment		Collectively evaluated for impairment		Total
	(Amounts in thousands)
Commercial and Industrial	$	131	$	460	$	591
Real Estate Construction:
Residential		21		393		414
Commercial		290		658		948
Real Estate Mortgage:
Commercial – Owner Occupied		331		4,404		4,735
Commercial – Non-owner Occupied		801		6,729		7,530
Residential – 1 to 4 Family		338		3,274		3,612
Residential – Multifamily		6		383		389
Consumer		23		318		341
Total	$	1,941	$	16,619	$	18,560

Loans, at December 31, 2014:	Individually evaluated for impairment		Collectively evaluated for impairment		Total
	(Amounts in thousands)
Commercial and Industrial	$	2,407	$	27,685	$	30,092
Real Estate Construction:
Residential		238		5,621		5,859
Commercial		14,058		33,863		47,921
Real Estate Mortgage:
Commercial – Owner Occupied		5,951		170,698		176,649
Commercial – Non-owner Occupied		30,407		207,511		237,918
Residential – 1 to 4 Family		7,960		163,934		171,894
Residential – Multifamily		364		24,809		25,173
Consumer		94		17,461		17,555
Total	$	61,479	$	651,582	$	713,061

Loans, at December 31, 2013:	Individually evaluated for impairment		Collectively evaluated for impairment		Total
	(Amounts in thousands)
Commercial and Industrial	$	622	$	22,379	$	23,001
Real Estate Construction:
Residential		967		6,422		7,389
Commercial		11,736		32,013		43,749
Real Estate Mortgage:
Commercial – Owner Occupied		6,539		163,583		170,122
Commercial – Non-owner Occupied		33,087		187,277		220,364
Residential – 1 to 4 Family		15,322		132,838		148,160
Residential – Multifamily		469		23,634		24,103
Consumer		114		17,539		17,653
Total	$	68,856	$	585,685	$	654,541

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Company Premises and Equipment (Tables)

12 Months Ended

Dec. 31, 2014

Company 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, 2014 and 2013 is as follows:

	Estimated
	Useful lives	2014			2013
		(Amounts in thousands)
Land		$	820		$	820
Building and improvements	12 years		4,947			4,091
Furniture and equipment	9.6 years		2,031			1,913
Total premises and equipment			7,798			6,824
Less: accumulated depreciation and amortization			(3,308	)		(2,960	)
Premises and equipment, net		$	4,490		$	3,864

Schedule of Future Minimum Rental Payments for Operating Leases

At December 31, 2014, the required future minimum rental payments under these leases and other equipment operating leases are as follows:

Years Ending December 31,	(Amounts in thousands)
2015		140
2016		107
2017		31
Total minimum lease payments	$	278

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Description of Business and Summary of Significant Accounting Policies

12 Months Ended

Dec. 31, 2014

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 its deposits are 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 subsidiary, Parke Bank. 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, 2014 and 2013, 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, 2014 and 2013, 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 and the loss taken into earnings.

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 these stocks 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, management considers 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 provisions. 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 TDR 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 Company'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, changes in values of collateral 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-impaired loans and is based on historical charge-off experience and incurred 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 will 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, 2014 or 2013. The Company does not have an accrual for uncertain tax positions as of December 31, 2014 or 2013, 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 2011 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 2010 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, 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 2013 financial statements have been reclassified to conform to the 2014 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.

Accumulated other comprehensive income (loss) consisted of the following at December 31, 2014 and 2013:

	2014				2013
	(Amounts in thousands)
Securities:
Non-credit unrealized losses on available for sale securities with OTTI		$	(457	)		$	(457	)
Unrealized gains on available for sale securities without OTTI			732				65
Tax impact			(110	)			157
		$	165			$	(235	)

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 outstanding and convertible preferred stock. 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 2013 (Note 13). Earnings per common share have been computed based on the following for 2014 and 2013:

	2014		2013
	(Amounts in thousands, except share data)
Basic earnings per common share
Net income available to common shareholders	$	9,273	$	8,461
Average common shares outstanding		5,991,226		5,964,018
Basic earnings per common share	$	1.55	$	1.42
Diluted earnings per common share
Net income available to common shareholders		9,273		8,461
Dividend on Preferred Series B		1,200		—
Net income available to common shareholders pre dividend on Preferred Series B	$	10,473	$	8,461
Average common shares outstanding		5,991,226		5,964,018
Dilutive potential common shares		1,935,633		1,645
Total diluted average common shares outstanding		7,926,859		5,965,663
Diluted earnings per common share	$	1.32	$	1.42

For 2014 and 2013, options to purchase 0 shares and 319,586 shares, respectively, were outstanding but were not included in the computation of diluted EPS because the options' common stock equivalents and preferred stock 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 January 2014, the FASB issued ASU 2014-04, "Receivables-Troubled Debt Restructurings by Creditors (Subtopic 310-40): Reclassification of Residential Real Estate Collateralized Consumer Mortgage Loans upon Foreclosure." ASU 2014-04 clarifies that an in-substance repossession or foreclosure occurs, and a creditor is considered to have received physical possession of residential real estate property collateralizing a consumer mortgage loan, upon either (a) the creditor obtaining legal title to the residential real estate property upon completion of a foreclosure or (b) the borrower conveying all interest in the residential real estate property to the creditor to satisfy that loan through completion of a deed in lieu of foreclosure or through a similar legal agreement. Additionally, ASU 2014-04 requires interim and annual disclosure of both (a) the amount of foreclosed residential real estate property held by the creditor and (b) the recorded investment in consumer mortgage loans collateralized by residential real estate property that are in the process of foreclosure according to local requirements of the applicable jurisdiction. The amendments in ASU 2014-04 are effective for fiscal years, and interim periods within those years, beginning after December 15, 2014. An entity can elect to adopt the amendments using either a modified retrospective transition method or a prospective transition method. Early adoption is permitted. The Company is currently evaluating the impact of these amendments.

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OREO (Tables)

12 Months Ended

Dec. 31, 2014

OREO [Abstract]

Analysis of OREO activity

An analysis of OREO activity for the years ended December 31, 2014 and 2013 is as follows:

	For the Year Ended December 31,
	2014			2013
	(Amounts in thousands)
Balance at beginning of period	$	28,910		$	26,057
Real estate acquired in settlement of loans		5,797			9,903
Allowance for OREO		(1,493	)		(2,417	)
Sales of real estate		(11,851	)		(4,223	)
Gain (loss) on sale of real estate		722			(141	)
Write-down of real estate carrying values		(1,318	)		(521	)
Donated property		(22	)		—
Reimbursement of funds		(251	)		—
Capitalized improvements to real estate		437			252
Balance at end of period	$	20,931		$	28,910

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Parent Company Only Financial Statements (Tables)

12 Months Ended

Dec. 31, 2014

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,
	2014				2013
	(Amounts in thousands)
Assets:
Cash		$	138			$	1,097
Investments in subsidiaries			116,378				106,311
Other assets			56				5
Total assets		$	116,572			$	107,413
Liabilities and Equity:
Subordinated debentures		$	13,403			$	13,403
Other liabilities			264				294
Equity			102,905				93,716
Total liabilities and equity		$	116,572			$	107,413
Statements of Income	Years ended December 31,
		2014			2013
	(Amounts in thousands)
Income:
Dividends from bank subsidiary		$	1,180			$	2,684
Other income			—				—
Total income			1,180				2,684
Expense:
Interest on subordinated debentures			251				255
Salary			80				160
Other expenses			51				100
Total expenses			382				515
Income before income taxes			798				2,169
Equity in undistributed income of subsidiaries			9,675				5,402
Net income			10,473				7,571
Discount on Series A preferred stock			—				1,948
Preferred stock dividend and discount accretion			(1,200	)			1,058
Net income available to common shareholders		$	9,273			$	8,461

Statements of Cash Flows
	Years ended December 31,
	2014			2013
	(Amounts in thousands)
Cash Flows from Operating Activities
Net income	$	10,473		$	7,571
Adjustments to reconcile net income to net cash provided by operating activities:
Equity in undistributed earnings of subsidiaries		(9,675	)		(5,402	)
Changes in operating assets and liabilities:
Increase in other assets		—			—
(Decrease) increase in accrued interest payable and other accrued liabilities		(30	)		161
Net cash provided by operating activities		768			2,330
Cash Flows from Investing Activities
Net cash used in investing activities		—			—
Cash Flows from Financing Activities
Proceeds from issuance of Series B preferred stock, net		—			18,539
Redemption of Series A preferred stock		(250	)		(14,340	)
Proceeds from exercise of stock options		114			290
Payment of dividend on preferred stock and common stock		(1,575	)		(816	)
Other, net		(16	)		(4,959	)
Net cash used in financing activities		(1,727	)		(1,286	)
(Decrease)/increase in cash and cash equivalents		(959	)		1,044
Cash and Cash Equivalents, January 1,		1,097			53
Cash and Cash Equivalents, December 31,	$	138		$	1,097

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Income Taxes (Details) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013
Current tax expense [Abstract]
Federal	$ 2,938	$ 2,657
State	984	1,094
Total	3,922	3,751
Deferred tax benefit	1,789	(126)
Income tax expense	5,711	3,625
Deferred tax assets [Abstract]
Allowance for loan losses	6,849	7,204
Stock compensation	0	29
Depreciation	349	162
SERP	1,271	2,222
Capitalized OREO expense	1,984	1,563
OTTI write down on securities	65	437
Nonaccrued interest	952	1,528
Discount accretion	0	27
Deferred tax assets	11,470	13,172
Deferred tax liabilities [Abstract]
Deferred loan costs	(842)	(755)
Unrealized gains and losses	(110)	(157)
Deferred tax liabilities	(952)	(912)
Net deferred tax asset	10,518	12,260
Reconciliation of effective income tax rate with statutory federal rate [Abstract]
At Federal statutory rate	6,128	4,373
Adjustments resulting from [Abstract]
State income taxes, net of Federal tax benefit	675	727
Noncontrolling interest	(625)	(1,422)
Tax exempt income	(31)	(30)
Dividend exclusion	0	(22)
BOLI	(122)	(127)
Nondeductible expenses	5	0
Other	(319)	126
Income tax expense	$ 5,711	$ 3,625

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Consolidated Balance Sheets (USD $) In Thousands, unless otherwise specified	Dec. 31, 2014	Dec. 31, 2013
Assets
Cash and due from financial institutions	$ 4,033	$ 4,278
Federal funds sold and cash equivalents	32,205	41,383
Cash and cash equivalents	36,238	45,661
Investment securities available for sale, at fair value	28,208	35,695
Investment securities held to maturity (fair value of $2,377 at December 31, 2014 and $2,155 December 31, 2013)	2,141	2,103
Total investment securities	30,349	37,798
Loans held for sale	2,932	12,069
Loans, net of unearned income	713,061	654,541
Less: Allowance for loan losses	(18,043)	(18,560)
Net loans	695,018	635,981
Accrued interest receivable	2,827	2,717
Premises and equipment, net	4,490	3,864
Other real estate owned (OREO)	20,931	28,910
Restricted stock, at cost	3,152	3,618
Bank owned life insurance (BOLI)	11,464	11,106
Deferred tax asset	10,518	12,260
Other assets	3,787	959
Total Assets	821,706	794,943
Deposits
Noninterest-bearing deposits	42,554	35,986
Interest-bearing deposits	605,379	590,782
Total deposits	647,933	626,768
FHLBNY borrowings	49,352	55,280
Subordinated debentures	13,403	13,403
Accrued interest payable	445	423
Other liabilities	7,523	5,105
Total liabilities	718,656	700,979
Equity
Preferred stock, 1,000,000 shares authorized, $1,000 liquidation value Series B non-cumulative convertible; issued: 20,000 shares at December 31, 2014 and December 31, 2013	20,000	20,000
Common stock, $.10 par value; authorized 15,000,000 shares; Issued: 6,208,259 shares at December 31, 2014 and 6,193,710 shares at December 31, 2013	621	619
Additional paid-in capital	51,316	51,204
Retained earnings	32,983	24,308
Accumulated other comprehensive income (loss)	165	(235)
Treasury stock, 210,900 shares at December 31, 2014 and December 31, 2013, at cost	(2,180)	(2,180)
Total shareholders' equity	102,905	93,716
Noncontrolling interest in consolidated subsidiaries	145	248
Total equity	103,050	93,964
Total liabilities and equity	$ 821,706	$ 794,943

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Loans, Nonaccrual and Past Due Loans (Details) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2014	Dec. 31, 2013
Age analysis of past due loans by class [Abstract]
30-59 Days Past Due	$ 993	$ 1,755
60-89 Days Past Due	1,894	1,916
Greater than 90 Days and Not Accruing	26,892	35,954
Total Past Due	29,779	39,625
Current	683,282	614,916
Loans	713,061	654,541
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	0
60-89 Days Past Due	1,874	0
Greater than 90 Days and Not Accruing	61	122
Total Past Due	1,935	122
Current	28,157	22,879
Loans	30,092	23,001
Loans > 90 Days and Accruing	0	0
Residential [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	238	967
Total Past Due	238	967
Current	5,621	6,422
Loans	5,859	7,389
Loans > 90 Days and Accruing	0	0
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	10,773	9,908
Total Past Due	10,773	9,908
Current	37,148	33,841
Loans	47,921	43,749
Loans > 90 Days and Accruing	0	0
Commercial - Owner Occupied [Member]
Age analysis of past due loans by class [Abstract]
30-59 Days Past Due	0	710
60-89 Days Past Due	0	1,438
Greater than 90 Days and Not Accruing	735	976
Total Past Due	735	3,124
Current	175,914	166,998
Loans	176,649	170,122
Loans > 90 Days and Accruing	0	0
Commercial - Non-owner Occupied [Member]
Age analysis of past due loans by class [Abstract]
30-59 Days Past Due	0	0
60-89 Days Past Due	0	478
Greater than 90 Days and Not Accruing	8,624	10,853
Total Past Due	8,624	11,331
Current	229,294	209,033
Loans	237,918	220,364
Loans > 90 Days and Accruing	0	0
Residential - 1 to 4 Family [Member]
Age analysis of past due loans by class [Abstract]
30-59 Days Past Due	629	1,013
60-89 Days Past Due	20	0
Greater than 90 Days and Not Accruing	6,367	12,914
Total Past Due	7,016	13,927
Current	164,878	134,233
Loans	171,894	148,160
Loans > 90 Days and Accruing	0	0
Residential - Multifamily [Member]
Age analysis of past due loans by class [Abstract]
30-59 Days Past Due	364	0
60-89 Days Past Due	0	0
Greater than 90 Days and Not Accruing	0	99
Total Past Due	364	99
Current	24,809	24,004
Loans	25,173	24,103
Loans > 90 Days and Accruing	0	0
Consumer [Member]
Age analysis of past due loans by class [Abstract]
30-59 Days Past Due	0	32
60-89 Days Past Due	0	0
Greater than 90 Days and Not Accruing	94	115
Total Past Due	94	147
Current	17,461	17,506
Loans	17,555	17,653
Loans > 90 Days and Accruing	$ 0	$ 0

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Consolidated Statements of Equity (USD $) In Thousands, except Share data	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, 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
Capital withdrawals by noncontrolling interest								(1,325)	(1,325)
Stock options exercised		6	284				290		290
Stock options exercised (in shares)		57,591
Issuance of Series B preferred stock	20,000		(1,461)				18,539		18,539
Repurchase of Series A preferred stock	(16,288)			1,948			(14,340)		(14,340)
Repurchase of TARP warrants			(930)	(720)			(1,650)		(1,650)
10% common stock dividend		53	4,442	(4,501)			(6)		(6)
10% common stock dividend (in shares)		541,326
Net income				7,571			7,571	1,667	9,238
Changes in other comprehensive income					510		510		510
Accrued dividend payable				(19)			(19)		(23)
Dividend on preferred stock				(816)			(816)		(816)
Accretion of discount on preferred stock	223			(223)
Balance at Dec. 31, 2013	20,000	619	51,204	24,308	(235)	(2,180)	93,716	248	93,964
Balance (in shares) at Dec. 31, 2013		6,193,710
Capital withdrawals by noncontrolling interest								(1,942)	(1,942)
Stock options exercised		2	112				114		114
Stock options exercised (in shares)		14,549							14,549
Net income				10,473			10,473	1,839	12,312
Changes in other comprehensive income					400		400		400
Dividend on preferred stock				(1,200)			(1,200)		(1,200)
Dividend on common stock				(598)			(598)		(598)
Balance at Dec. 31, 2014	$ 20,000	$ 621	$ 51,316	$ 32,983	$ 165	$ (2,180)	$ 102,905	$ 145	$ 103,050
Balance (in shares) at Dec. 31, 2014		6,208,259

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Fair Value (Details) (USD $)	12 Months Ended
	Dec. 31, 2014		Dec. 31, 2013
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	$ 28,208,000		$ 35,695,000
Fair value on a non-recurring basis [Abstract]
Carrying amount of impaired loans receivable	35,700,000		41,300,000
Valuation allowance	4,700,000		1,000,000
Financial Assets [Abstract]
Investment securities AFS	28,208,000		35,695,000
Investment securities HTM	2,377,000		2,155,000
Changes in Level 3 assets measured at fair value on a recurring basis [Roll Forward]
Beginning balance	4,144,000		3,942,000
Total net losses included in [Abstract]
Other comprehensive gain (loss) - CDO's	0		202,000
Settlements	(3,795,000)		0
Net transfers into Level 3	0		0
Ending balance	349,000		4,144,000
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]
Assets and liabilities measured at fair value on a recurring basis [Abstract]
Securities Available for Sale	28,208,000	[1]	35,695,000	[1]
Financial Assets [Abstract]
Investment securities AFS	28,208,000	[1]	35,695,000	[1]
Loans, net	695,018,000	[2]	635,981,000	[2]
Carrying Value [Member] | Level 1 [Member]
Financial Assets [Abstract]
Cash and cash equivalents	36,238,000		45,661,000
Carrying Value [Member] | Level 2 [Member]
Financial Assets [Abstract]
Investment securities HTM	2,141,000		2,103,000
Restricted stock	3,152,000		3,618,000
Loans held for sale	2,932,000		12,069,000
Accrued interest receivable	2,827,000		2,717,000
Financial Liabilities [Abstract]
Demand and savings deposits	372,827,000		383,412,000
Time deposits	275,106,000		243,356,000
Borrowings	62,755,000		68,683,000
Accrued interest payable	445,000		423,000
Fair Value [Member]
Assets and liabilities measured at fair value on a recurring basis [Abstract]
Securities Available for Sale	28,208,000	[1]	35,695,000	[1]
Financial Assets [Abstract]
Investment securities AFS	28,208,000	[1]	35,695,000	[1]
Loans, net	698,843,000	[2]	641,449,000	[2]
Fair Value [Member] | Level 1 [Member]
Financial Assets [Abstract]
Cash and cash equivalents	36,238,000		45,661,000
Fair Value [Member] | Level 2 [Member]
Financial Assets [Abstract]
Investment securities HTM	2,377,000		2,155,000
Restricted stock	3,152,000		3,618,000
Loans held for sale	3,328,000		13,698,000
Accrued interest receivable	2,827,000		2,717,000
Financial Liabilities [Abstract]
Demand and savings deposits	372,827,000		383,412,000
Time deposits	276,528,000		245,094,000
Borrowings	60,297,000		64,185,000
Accrued interest payable	445,000		423,000
Recurring [Member]
Assets and liabilities measured at fair value on a recurring basis [Abstract]
Securities Available for Sale	28,208,000		35,695,000
Financial Assets [Abstract]
Investment securities AFS	28,208,000		35,695,000
Recurring [Member] | Level 1 [Member]
Assets and liabilities measured at fair value on a recurring basis [Abstract]
Securities Available for Sale	0		0
Financial Assets [Abstract]
Investment securities AFS	0		0
Recurring [Member] | Level 2 [Member]
Assets and liabilities measured at fair value on a recurring basis [Abstract]
Securities Available for Sale	27,859,000		31,551,000
Financial Assets [Abstract]
Investment securities AFS	27,859,000		31,551,000
Recurring [Member] | Level 3 [Member]
Assets and liabilities measured at fair value on a recurring basis [Abstract]
Securities Available for Sale	349,000		4,144,000
Financial Assets [Abstract]
Investment securities AFS	349,000		4,144,000
Recurring [Member] | Corporate Debt Obligations [Member]
Assets and liabilities measured at fair value on a recurring basis [Abstract]
Securities Available for Sale	522,000		506,000
Financial Assets [Abstract]
Investment securities AFS	522,000		506,000
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
Financial Assets [Abstract]
Investment securities AFS	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	522,000		506,000
Financial Assets [Abstract]
Investment securities AFS	522,000		506,000
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
Financial Assets [Abstract]
Investment securities AFS	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	26,947,000		30,450,000
Financial Assets [Abstract]
Investment securities AFS	26,947,000		30,450,000
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
Financial Assets [Abstract]
Investment securities AFS	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	26,947,000		30,450,000
Financial Assets [Abstract]
Investment securities AFS	26,947,000		30,450,000
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
Financial Assets [Abstract]
Investment securities AFS	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	390,000		595,000
Financial Assets [Abstract]
Investment securities AFS	390,000		595,000
Recurring [Member] | Collateralized Mortgage-backed Securities [Member] | Level 1 [Member]
Assets and liabilities measured at fair value on a recurring basis [Abstract]
Securities Available for Sale	0
Financial Assets [Abstract]
Investment securities AFS	0
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	390,000		595,000
Financial Assets [Abstract]
Investment securities AFS	390,000		595,000
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	0		0
Financial Assets [Abstract]
Investment securities AFS	0		0
Recurring [Member] | Collateralized Debt Obligations [Member]
Assets and liabilities measured at fair value on a recurring basis [Abstract]
Securities Available for Sale	349,000		4,144,000
Financial Assets [Abstract]
Investment securities AFS	349,000		4,144,000
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
Financial Assets [Abstract]
Investment securities AFS	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
Financial Assets [Abstract]
Investment securities AFS	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	349,000		4,144,000
Financial Assets [Abstract]
Investment securities AFS	349,000		4,144,000
Nonrecurring [Member]
Fair value on a non-recurring basis [Abstract]
Collateral dependent impaired loans	35,711,000		41,311,000
OREO	20,931,000		28,910,000
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	35,711,000		41,311,000
OREO	$ 20,931,000		$ 28,910,000

[1] See the recurring fair value table above.

[2] For non-impaired loans, Level 2; for impaired loans, Level 3.

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Income Taxes (Tables)

12 Months Ended

Dec. 31, 2014

Income Taxes [Abstract]

Schedule of Components of Income Tax Expense

Income tax expense for 2014 and 2013 consisted of the following:

	2014		2013
	(Amounts in thousands)
Current tax expense:
Federal	$	2,938	$	2,657
State		984		1,094
		3,922		3,751
Deferred tax benefit		1,789		(126	)
Income tax expense	$	5,711	$	3,625

Components of Net Deferred Tax Asset

The components of the net deferred tax asset at December 31, 2014 and 2013 were as follows:

	2014			2013
	(Amounts in thousands)
Deferred tax assets
Allowance for loan losses	$	6,849		$	7,204
Stock compensation		—			29
Depreciation		349			162
SERP		1,271			—
Capitalized OREO expense		1,984			1,563
OTTI write down on securities		65			437
Nonaccrued interest		952			1,528
Discount accretion		—			27
		11,470			13,172
Deferred tax liabilities:
Deferred loan costs		(842	)		(755	)
Unrealized gains and losses		(110	)		(157	)
		(952	)		(912	)
Net deferred tax asset	$	10,518		$	12,260

Reconciliation of Effective Income Tax Rate with Statutory Federal Rate

A reconciliation of the Company's effective income tax rate with the statutory federal rate for 2014 and 2013 is as follows:

	2014			2013
	(Amounts in thousands)
At Federal statutory rate	$	6,128		$	4,373
Adjustments resulting from:
State income taxes, net of Federal tax benefit		675			727
Noncontrolling interest		(625	)		(1,422	)
Tax exempt income		(31	)		(30	)
Dividend exclusion		—			(22	)
BOLI		(122	)		(127	)
Nondeductible expenses		5			—
Other		(319	)		126
	$	5,711		$	3,625

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Commitments and Contingencies

12 Months Ended

Dec. 31, 2014

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, 2014 and 2013, commitments to extend credit amounted to approximately $52.8 million and $33.5 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, 2014 and 2013, standby letters of credit with customers were $6.8 million and $6.1 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, 2014. 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 (Tables)

12 Months Ended

Dec. 31, 2014

Retirement Plans [Abstract]

Schedule of Benefit Obligation

The benefit obligation at December 31, 2014 and December 31, 2013 was calculated as follows:

	2014			2013
	(Amounts in thousands)
Benefit obligation, January 1	$	3,218		$	3,137
Service cost		(50	)		(55	)
Interest cost		176			170
Loss (gain)		6			(34	)
Benefit obligation, December 31	$	3,350		$	3,218

Schedule of Net Periodic Pension cost

The net periodic pension cost for 2014 and 2013 was calculated as follows:

	2014			2013
	(Amounts in thousands)
Service cost	$	(50	)	$	(55	)
Interest cost		176			170
Loss (gain)		9			115
	$	135		$	230

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Parent Company Only Financial Statements

12 Months Ended

Dec. 31, 2014

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,
	2014				2013
	(Amounts in thousands)
Assets:
Cash		$	138			$	1,097
Investments in subsidiaries			116,378				106,311
Other assets			56				5
Total assets		$	116,572			$	107,413
Liabilities and Equity:
Subordinated debentures		$	13,403			$	13,403
Other liabilities			264				294
Equity			102,905				93,716
Total liabilities and equity		$	116,572			$	107,413
Statements of Income	Years ended December 31,
		2014			2013
	(Amounts in thousands)
Income:
Dividends from bank subsidiary		$	1,180			$	2,684
Other income			—				—
Total income			1,180				2,684
Expense:
Interest on subordinated debentures			251				255
Salary			80				160
Other expenses			51				100
Total expenses			382				515
Income before income taxes			798				2,169
Equity in undistributed income of subsidiaries			9,675				5,402
Net income			10,473				7,571
Discount on Series A preferred stock			—				1,948
Preferred stock dividend and discount accretion			(1,200	)			1,058
Net income available to common shareholders		$	9,273			$	8,461

Statements of Cash Flows
	Years ended December 31,
	2014			2013
	(Amounts in thousands)
Cash Flows from Operating Activities
Net income	$	10,473		$	7,571
Adjustments to reconcile net income to net cash provided by operating activities:
Equity in undistributed earnings of subsidiaries		(9,675	)		(5,402	)
Changes in operating assets and liabilities:
Increase in other assets		—			—
(Decrease) increase in accrued interest payable and other accrued liabilities		(30	)		161
Net cash provided by operating activities		768			2,330
Cash Flows from Investing Activities
Net cash used in investing activities		—			—
Cash Flows from Financing Activities
Proceeds from issuance of Series B preferred stock, net		—			18,539
Redemption of Series A preferred stock		(250	)		(14,340	)
Proceeds from exercise of stock options		114			290
Payment of dividend on preferred stock and common stock		(1,575	)		(816	)
Other, net		(16	)		(4,959	)
Net cash used in financing activities		(1,727	)		(1,286	)
(Decrease)/increase in cash and cash equivalents		(959	)		1,044
Cash and Cash Equivalents, January 1,		1,097			53
Cash and Cash Equivalents, December 31,	$	138		$	1,097

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Consolidated Statements of Cash Flows (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013
Cash Flows from Operating Activities
Net income	$ 12,312	$ 9,238
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	348	337
Provision for loan losses	3,250	2,700
Bank owned life insurance income	(359)	(363)
Supplemental executive retirement plan expense	0	33
Gain on sale of SBA loans	(5,040)	(2,225)
SBA loans originated for sale	(34,538)	(29,471)
Proceeds from sale of SBA loans originated for sale	48,714	20,122
Loss/Gain on sale & write down of other real estate owned, net	596	662
Contribution of OREO property	22	0
Provision for OREO	1,493	2,417
Net accretion of purchase premiums and discounts on securities	9	(135)
Net gain from sales and write-downs of investment securities	(178)	(251)
Deferred income tax benefit	1,789	(126)
Other than temporary decline in value of investments	0	955
Changes in operating assets and liabilities:
Decrease in accrued interest receivable and other assets	(2,930)	334
Increase in accrued interest payable and other accrued liabilities	1,041	1,164
Net cash provided by operating activities	26,530	5,391
Cash Flows from Investing Activities
Purchases of investment securities available for sale	0	(22,026)
Redemptions/purchases of restricted stock	466	(1,395)
Proceeds from sale and call of securities available for sale	3,974	1,508
Proceeds from maturities and principal payments on mortgage backed securities	4,311	4,178
Proceeds from sale of other real estate owned	11,851	4,223
Advances on other real estate owned	(186)	(252)
Net increase in loans	(68,084)	(37,808)
Purchases of bank premises and equipment	(118)	(113)
Net cash used in investing activities	(47,786)	(51,685)
Cash Flows from Financing Activities
Cash payment of dividends	(1,575)	(816)
Cash payment of fractional shares on 10% stock dividend	0	(2)
Minority interest capital withdrawal, net	(1,942)	(1,325)
Proceeds from exercise of stock options and warrants	114	290
Redemption from sale of TARP warrants	0	(1,650)
Proceeds from the issuance of Series B preferred stock, net	0	18,539
Repurchase of Series A preferred stock	0	(14,340)
Net decrease in other borrowed funds	0	(10,000)
Net (decrease) increase in FHLBNY and short term borrowings	(5,928)	34,832
Net increase in noninterest-bearing deposits	6,567	5,644
Net increase (decrease) in interest-bearing deposits	14,597	(16,083)
Net cash provided by financing activities	11,833	15,089
Decrease in cash and cash equivalents	(9,423)	(31,205)
Cash and Cash Equivalents, January 1,	45,661	76,866
Cash and Cash Equivalents, December 31,	36,238	45,661
Cash paid during the year for:
Interest on deposits and borrowed funds	5,557	5,909
Income taxes	5,300	4,795
Supplemental Schedule of Noncash Activities:
Real estate acquired in settlement of loans	$ 5,797	$ 9,903

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Consolidated Balance Sheets (Parenthetical) (USD $) In Thousands, except Share data, unless otherwise specified	Dec. 31, 2014	Dec. 31, 2013
Assets
Investment securities held to maturity, fair value	$ 2,377	$ 2,155
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)	20,000	20,000
Common stock, par value (in dollars per share)	$ 0.10	$ 0.10
Common stock, authorized (in shares)	15,000,000	15,000,000
Common stock, issued (in shares)	6,208,259	6,193,710
Treasury stock, shares (in shares)	210,900	210,900

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Income Taxes

12 Months Ended

Dec. 31, 2014

Income Taxes [Abstract]

Income Taxes

Note 10. Income Taxes

Income tax expense for 2014 and 2013 consisted of the following:

	2014		2013
	(Amounts in thousands)
Current tax expense:
Federal	$	2,938	$	2,657
State		984		1,094
		3,922		3,751
Deferred tax benefit		1,789		(126	)
Income tax expense	$	5,711	$	3,625

The components of the net deferred tax asset at December 31, 2014 and 2013 were as follows:

	2014			2013
	(Amounts in thousands)
Deferred tax assets
Allowance for loan losses	$	6,849		$	7,204
Stock compensation		—			29
Depreciation		349			162
SERP		1,271			—
Capitalized OREO expense		1,984			1,563
OTTI write down on securities		65			437
Nonaccrued interest		952			1,528
Discount accretion		—			27
		11,470			13,172
Deferred tax liabilities:
Deferred loan costs		(842	)		(755	)
Unrealized gains and losses		(110	)		(157	)
		(952	)		(912	)
Net deferred tax asset	$	10,518		$	12,260

A reconciliation of the Company's effective income tax rate with the statutory federal rate for 2014 and 2013 is as follows:

	2014			2013
	(Amounts in thousands)
At Federal statutory rate	$	6,128		$	4,373
Adjustments resulting from:
State income taxes, net of Federal tax benefit		675			727
Noncontrolling interest		(625	)		(1,422	)
Tax exempt income		(31	)		(30	)
Dividend exclusion		—			(22	)
BOLI		(122	)		(127	)
Nondeductible expenses		5			—
Other		(319	)		126
	$	5,711		$	3,625

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 2011, and by the State of New Jersey for years before 2010.

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Document and Entity Information (USD $) In Millions, except Share data, unless otherwise specified	12 Months Ended
	Dec. 31, 2014	Jun. 30, 2014
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		$ 0
Entity Common Stock, Shares Outstanding	0
Document Fiscal Year Focus	2014
Document Fiscal Period Focus	FY
Document Type	10-K
Amendment Flag	false
Document Period End Date	Dec. 31, 2014

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Retirement Plans

12 Months Ended

Dec. 31, 2014

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 $135,000 in 2014 and $230,000 in 2013. The unfunded benefit obligation, which was included in other liabilities, was approximately $3,350,000 at December 31, 2014 and $3,218,000 at December 31, 2013.

The benefit obligation at December 31, 2014 and December 31, 2013 was calculated as follows:

	2014			2013
	(Amounts in thousands)
Benefit obligation, January 1	$	3,218		$	3,137
Service cost		(50	)		(55	)
Interest cost		176			170
Loss (gain)		6			(34	)
Benefit obligation, December 31	$	3,350		$	3,218

The net periodic pension cost for 2014 and 2013 was calculated as follows:

	2014			2013
	(Amounts in thousands)
Service cost	$	(50	)	$	(55	)
Interest cost		176			170
Loss (gain)		9			115
	$	135		$	230

The discount rate used in determining the actuarial present value of the projected benefit obligation was 5.5% for both 2014 and 2013. Annual benefit payments are estimated at $0 for 2015, $126,000 for 2016, $252,000 for 2017, $314,000 for 2018, $344,000 for 2019 through 2031, and $583,000 through 2039.

The Company has a 401(k) 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 2014 was $118,000 and $122,000 in 2013.

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Consolidated Statements of Income (USD $) In Thousands, except Share data, unless otherwise specified	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013
Interest income:
Interest and fees on loans	$ 36,967	$ 35,944
Interest and dividends on investments	1,054	731
Interest on federal funds sold and cash equivalents	111	109
Total interest income	38,132	36,784
Interest expense:
Interest on deposits	4,746	5,032
Interest on borrowings	833	763
Total interest expense	5,579	5,795
Net interest income	32,553	30,989
Provision for loan losses	3,250	2,700
Net interest income after provision for loan losses	29,303	28,289
Noninterest income
Gain on sale of SBA loans	5,040	2,225
Gain on sale of investment securities	178	251
Loan fees	1,071	702
Net income from BOLI	359	363
Service fees on deposit accounts	269	268
Other than temporary impairment losses	0	(955)
Loss on sale and write-down of real estate owned	(596)	(662)
Other	1,310	1,234
Total noninterest income	7,631	3,426
Noninterest expense
Compensation and benefits	7,306	6,733
Professional services	1,456	1,646
Occupancy and equipment	1,165	1,087
Data processing	484	482
FDIC insurance	858	1,127
OREO expense	3,883	4,563
Other operating expense	3,759	3,214
Total noninterest expense	18,911	18,852
Income before income tax expense	18,023	12,863
Income tax expense	5,711	3,625
Net income attributable to Company and noncontrolling interest	12,312	9,238
Net income attributable to noncontrolling interest	(1,839)	(1,667)
Net income attributable to Company	10,473	7,571
Discount on retirement of preferred shares	0	1,948
Preferred stock dividend and discount accretion	(1,200)	(1,058)
Net income available to common shareholders	$ 9,273	$ 8,461
Earnings per common share
Basic (in dollars per share)	$ 1.55	$ 1.42
Diluted (in dollars per share)	$ 1.32	$ 1.42
Weighted average shares outstanding
Basic (in shares)	5,991,226	5,964,018
Diluted (in shares)	7,924,859	5,965,568

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Allowance for Loan Losses

12 Months Ended

Dec. 31, 2014

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, 2014 and 2013 is as follows:

Allowance for Loan Losses:	For the year ended December 31, 2014
	Beginning Balance		Charge-offs			Recoveries		Provisions			Ending Balance
	(Amounts in thousands)
Commercial and Industrial	$	591	$	(395	)	$	—	$	1,483		$	1,679
Real Estate Construction:
Residential		414		—			5		(103	)		316
Commercial		948		(16	)		—		2,083			3,015
Real Estate Mortgage:
Commercial – Owner Occupied		4,735		(476	)		5		(968	)		3,296
Commercial – Non-owner Occupied		7,530		(50	)		—		(2,518	)		4,962
Residential – 1 to 4 Family		3,612		(2,841	)		32		3,353			4,156
Residential – Multifamily		389		—			—		(32	)		357
Consumer		341		(31	)		—		(48	)		26
Unallocated		—		—			—		—			—
Total	$	18,560	$	(3,809	)	$	42	$	3,250		$	18,043

Allowance for Loan Losses:	For the year ended December 31, 2013
	Beginning Balance		Charge-offs			Recoveries		Provisions			Ending Balance
	(Amounts in thousands)
Commercial and Industrial	$	470	$	(4	)	$	—	$	125		$	591
Real Estate Construction:
Residential		845		—			—		(431	)		414
Commercial		1,115		—			—		(167	)		948
Real Estate Mortgage:
Commercial – Owner Occupied		4,095		(77	)		1		716			4,735
Commercial – Non-owner Occupied		7,379		(2,641	)		—		2,792			7,530
Residential – 1 to 4 Family		4,384		(554	)		210		(428	)		3,612
Residential – Multifamily		312		(8	)		—		85			389
Consumer		336		(3	)		—		8			341
Unallocated		—		—			—		—			—
Total	$	18,936	$	(3,287	)	$	211	$	2,700		$	18,560

Allowance for Loan Losses, at December 31, 2014	Individually evaluated for impairment		Collectively evaluated for impairment		Total
	(Amounts in thousands)
Commercial and Industrial	$	1,040	$	639	$	1,679
Real Estate Construction:
Residential		238		78		316
Commercial		2,535		480		3,015
Real Estate Mortgage:
Commercial – Owner Occupied		114		3,182		3,296
Commercial – Non-owner Occupied		828		4,134		4,962
Residential – 1 to 4 Family		573		3,583		4,156
Residential – Multifamily		5		352		357
Consumer		—		262		262
Total	$	5,333	$	12,710	$	18,043

Allowance for Loan Losses, at December 31, 2013	Individually evaluated for impairment		Collectively evaluated for impairment		Total
	(Amounts in thousands)
Commercial and Industrial	$	131	$	460	$	591
Real Estate Construction:
Residential		21		393		414
Commercial		290		658		948
Real Estate Mortgage:
Commercial – Owner Occupied		331		4,404		4,735
Commercial – Non-owner Occupied		801		6,729		7,530
Residential – 1 to 4 Family		338		3,274		3,612
Residential – Multifamily		6		383		389
Consumer		23		318		341
Total	$	1,941	$	16,619	$	18,560

Loans, at December 31, 2014:	Individually evaluated for impairment		Collectively evaluated for impairment		Total
	(Amounts in thousands)
Commercial and Industrial	$	2,407	$	27,685	$	30,092
Real Estate Construction:
Residential		238		5,621		5,859
Commercial		14,058		33,863		47,921
Real Estate Mortgage:
Commercial – Owner Occupied		5,951		170,698		176,649
Commercial – Non-owner Occupied		30,407		207,511		237,918
Residential – 1 to 4 Family		7,960		163,934		171,894
Residential – Multifamily		364		24,809		25,173
Consumer		94		17,461		17,555
Total	$	61,479	$	651,582	$	713,061

Loans, at December 31, 2013:	Individually evaluated for impairment		Collectively evaluated for impairment		Total
	(Amounts in thousands)
Commercial and Industrial	$	622	$	22,379	$	23,001
Real Estate Construction:
Residential		967		6,422		7,389
Commercial		11,736		32,013		43,749
Real Estate Mortgage:
Commercial – Owner Occupied		6,539		163,583		170,122
Commercial – Non-owner Occupied		33,087		187,277		220,364
Residential – 1 to 4 Family		15,322		132,838		148,160
Residential – Multifamily		469		23,634		24,103
Consumer		114		17,539		17,653
Total	$	68,856	$	585,685	$	654,541

XML

Loans

12 Months Ended

Dec. 31, 2014

Loans [Abstract]

Loans

Note 4.  Loans

The portfolio of loans outstanding consists of:

	December 31, 2014					December 31, 2013
	Amount		Percentage of Total Loans			Amount		Percentage of Total Loans
	(Amounts in thousands)
Commercial and Industrial	$	30,092		4.2	%	$	23,001		3.5	%
Real Estate Construction:
Residential		5,859		0.8			7,389		1.1
Commercial		47,921		6.7			43,749		6.7
Real Estate Mortgage:
Commercial – Owner Occupied		176,649		24.8			170,122		26.0
Commercial – Non-owner Occupied		237,918		33.4			220,364		33.7
Residential – 1 to 4 Family		171,894		24.1			148,160		22.6
Residential – Multifamily		25,173		3.5			24,103		3.7
Consumer		17,555		2.5			17,653		2.7
Total Loans	$	713,061		100.0	%	$	654,541		100.0	%

At December 31, 2014 and 2013, approximately $180.7 million and $132.4 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.

The Company 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 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 information depends on the size and complexity of the credit and the collateral that secures the loan. The Company'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 Company's market area.

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 analyses 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, including multi-family 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, 2014, approximately 42.6% of the outstanding principal balance of the Company's commercial real estate loans were secured by owner-occupied properties.

The Company 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 Company 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 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.  The Company maintains a risk monitoring program through 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. No one industry sector exceeds 10% of total loans.

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 2014 and 2013 is as follows:

	2014				2013
	(Amounts in thousands)
Balance, beginning of year		$	19,636			$	18,889
Advances			5,644				1,799
Less: repayments			(4,897	)			(1,052	)
Balance, end of year		$	20,383			$	16,636

An age analysis of past due loans by class follows:

December 31, 2014	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	$	—	$	1,874	$	61	$	1,935	$	28,157	$	30,092	$	—
Real Estate Construction:
Residential		—		—		238		238		5,621		5,859		—
Commercial		—		—		10,773		10,773		37,148		47,921		—
Real Estate Mortgage:
Commercial – Owner Occupied		—		—		735		735		175,914		176,649		—
Commercial – Non-owner Occupied		—		—		8,624		8,624		229,294		237,918		—
Residential – 1 to 4 Family		629		20		6,367		7,016		164,878		171,894		—
Residential – Multifamily		364		—		—		364		24,809		25,173		—
Consumer		—		—		94		94		17,461		17,555		—
Total Loans	$	993	$	1,894	$	26,892	$	29,779	$	683,282	$	713,061	$	—

December 31, 2013	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	$	—	$	—	$	122	$	122	$	22,879	$	23,001	$	—
Real Estate Construction:
Residential		—		—		967		967		6,422		7,389		—
Commercial		—		—		9,908		9,908		33,841		43,749		—
Real Estate Mortgage:
Commercial – Owner Occupied		710		1,438		976		3,124		166,998		170,122		—
Commercial – Non-owner Occupied		—		478		10,853		11,331		209,033		220,364		—
Residential – 1 to 4 Family		1,013		—		12,914		13,927		134,233		148,160		—
Residential – Multifamily		—		—		99		99		24,004		24,103		—
Consumer		32		—		115		147		17,506		17,653		—
Total Loans	$	1,755	$	1,916	$	35,954	$	39,625	$	614,916	$	654,541	$	—

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 that are secured by real estate 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 costs 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 within a 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 six months of payment history and future collectability of principal and interest is assured.

Impaired loans are set forth in the following tables.

December 31, 2014	Recorded Investment		Unpaid Principal Balance		Related Allowance
	(Amounts in thousands)
With no related allowance recorded:
Commercial and Industrial	$	61	$	401	$	—
Real Estate Construction:
Residential		—		—		—
Commercial		4,033		4,161		—
Real Estate Mortgage:
Commercial – Owner Occupied		735		1,132		—
Commercial – Non-owner Occupied		8,175		10,616		—
Residential – 1 to 4 Family		2,548		3,291		—
Residential – Multifamily		—		—		—
Consumer		94		94		—
		15,646		19,695		—
With an allowance recorded:
Commercial and Industrial		2,346		2,346		1,040
Real Estate Construction:
Residential		238		979		238
Commercial		10,025		10,025		2,535
Real Estate Mortgage:
Commercial – Owner Occupied		5,216		5,245		114
Commercial – Non-owner Occupied		22,232		22,232		828
Residential – 1 to 4 Family		5,412		5,575		573
Residential – Multifamily		364		364		5
Consumer		—		—		—
		45,833		46,766		5,333
Total:
Commercial and Industrial		2,407		2,747		1,040
Real Estate Construction:
Residential		238		979		238
Commercial		14,058		14,186		2,535
Real Estate Mortgage:
Commercial – Owner Occupied		5,951		6,377		114
Commercial – Non-owner Occupied		30,407		32,848		828
Residential – 1 to 4 Family		7,960		8,866		573
Residential – Multifamily		364		364		5
Consumer		94		94		—
	$	61,479	$	66,461	$	5,333

December 31, 2013	Recorded Investment		Unpaid Principal Balance		Related Allowance
	(Amounts in thousands)
With no related allowance recorded:
Commercial and Industrial	$	—	$	—	$	—
Real Estate Construction:
Residential		780		1,521		—
Commercial		9,568		9,592		—
Real Estate Mortgage:
Commercial – Owner Occupied		787		842		—
Commercial – Non-owner Occupied		10,853		13,153		—
Residential – 1 to 4 Family		9,892		10,084		—
Residential – Multifamily		99		306		—
Consumer		65		65		—
		32,044		35,563		—
With an allowance recorded:
Commercial and Industrial		622		622		131
Real Estate Construction:
Residential		187		661		21
Commercial		2,168		2,225		290
Real Estate Mortgage:
Commercial – Owner Occupied		5,752		5,782		331
Commercial – Non-owner Occupied		22,234		22,234		801
Residential – 1 to 4 Family		5,430		5,857		338
Residential – Multifamily		370		370		6
Consumer		49		49		23
		36,812		37,800		1,941
Total:
Commercial and Industrial		622		622		131
Real Estate Construction:
Residential		967		2,182		21
Commercial		11,736		11,817		290
Real Estate Mortgage:
Commercial – Owner Occupied		6,539		6,624		331
Commercial – Non-owner Occupied		33,087		35,387		801
Residential – 1 to 4 Family		15,322		15,941		338
Residential – Multifamily		469		676		6
Consumer		114		114		23
	$	68,856	$	73,363	$	1,941

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, 2014 and 2013:

	Year Ended December 31,
	2014				2013
	Average Recorded Investment		Interest Income Recognized		Average Recorded Investment		Interest Income Recognized
	(Amounts in thousands)
Commercial and Industrial	$	2,686	$	129	$	622	$	31
Real Estate Construction:
Residential		816		—		1,476		—
Commercial		15,434		323		12,023		128
Real Estate Mortgage:
Commercial – Owner Occupied		6,966		303		6,557		301
Commercial – Non-owner Occupied		34,854		1,369		38,859		1,386
Residential – 1 to 4 Family		9,196		242		16,177		382
Residential – Multifamily		366		20		1,359		83
Consumer		94		1		115		3
Total	$	70,412	$	2,387	$	77,188	$	2,314

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 $32.7 million and $32.9 million with related allowances of $812,000 and $1.1 million as of December 31, 2014 and December 31, 2013, respectively. Non-performing TDRs totaled $9.5 million and $18.1 million with related allowances of $293,000 and $71,000 as of December 31, 2014 and December 31, 2013, respectively. All TDRs are classified as impaired loans and are included in the impaired loan disclosures above.

There were no loans modified during the years ended December 31, 2014 and 2013.

There was one loan of $187,000 that was modified and deemed a TDR that subsequently defaulted during 2013.

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, 2014 and 2013 is as follows:

At December 31, 2014	Pass		OAEM		Substandard		Doubtful		Total
	(Amounts in thousands)
Commercial and Industrial	$	27,104	$	642	$	2,346	$	—	$	30,092
Real Estate Construction:
Residential		5,621		—		238		—		5,859
Commercial		34,255		2,893		10,773		—		47,921
Real Estate Mortgage:
Commercial – Owner Occupied		170,685		4,051		1,913		—		176,649
Commercial – Non-owner Occupied		218,230		5,791		13,897		—		237,918
Residential – 1 to 4 Family		162,787		613		8,494		—		171,894
Residential – Multifamily		24,809		—		364		—		25,173
Consumer		17,461		—		94		—		17,555
Total	$	660,952	$	13,990	$	38,119	$	—	$	713,061

At December 31, 2013	Pass		OAEM		Substandard		Doubtful		Total
	(Amounts in thousands)
Commercial and Industrial	$	20,270	$	1,916	$	815	$	—	$	23,001
Real Estate Construction:
Residential		6,422		—		967		—		7,389
Commercial		25,519		—		18,230		—		43,749
Real Estate Mortgage:
Commercial – Owner Occupied		162,606		2,293		5,223		—		170,122
Commercial – Non-owner Occupied		198,321		10,835		11,208		—		220,364
Residential – 1 to 4 Family		131,792		1,925		14,443		—		148,160
Residential – Multifamily		22,580		1,054		469		—		24,103
Consumer		17,538		—		115		—		17,653
Total	$	585,048	$	18,023	$	51,470	$	—	$	654,541

XML

Fair Value

12 Months Ended

Dec. 31, 2014

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 TruPS.

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, 2014 and 2013.

Financial Assets	Level 1		Level 2		Level 3		Total
	(Amounts in thousands)
Securities Available for Sale
As of December 31, 2014
Corporate debt obligations		—		522		—		522
Residential mortgage-backed securities		—		26,947		—		26,947
Collateralized mortgage-backed securities		—		390		—		390
Collateralized debt obligations		—		—		349		349
Total	$	—	$	27,859	$	349	$	28,208
As of December 31, 2013
Corporate debt obligations		—		506		—		506
Residential mortgage-backed securities		—		30,450		—		30,450
Collateralized mortgage-backed securities				595		—		595
Collateralized debt obligations		—		—		4,144		4,144
Total	$	—	$	31,551	$	4,144	$	35,695

For the year ended December 31, 2014, 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
	2014			2013
	(Amounts in thousands)
Beginning balance at January 1,	$	4,144		$	3,942
Total net losses included in:
Other comprehensive gain (loss) – CDO's		—			202
Settlements		(3,795	)		—
Net transfers into Level 3		—			—
Ending balance December 31,	$	349		$	4,144

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, 2014
Collateral dependent impaired loans	$	—	$	—	$	35,711	$	35,711
OREO	$	—	$	—	$	20,931	$	20,931
As of December 31, 2013
Collateral dependent impaired loans	$	—	$	—	$	41,311	$	41,311
OREO	$	—	$	—	$	28,910	$	28,910

Collateral dependent impaired loans, which are measured in accordance with FASB ASC Topic 310 "Receivables", for impairment, had a carrying amount of $35.7 million and $41.3 million at December 31, 2014 and December 31, 2013 respectively, with a valuation allowance of $4.7 million and $1.0 million at December 31, 2014 and December 31, 2013 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 real estate properties which are recorded at fair value. All properties have an independent third-party full appraisal to determine the fair value, less cost to sell (a range of 5% to 10%) and other costs, such as unpaid real estate taxes, that have been identified. 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.

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, 2014 and December 31, 2013:

				December 31, 2014				December 31, 2013
	Level in Fair Value Hierarchy			Carrying Value		Fair Value		Carrying Value		Fair Value
				(Amounts in thousands)
Financial Assets:
Cash and cash equivalents	Level 1			$	36,238		36,238	$	45,661	$	45,661
Investment securities AFS		(1	)		28,208		28,208		35,695		35,695
Investment securities HTM	Level 2				2,141		2,377		2,103		2,155
Restricted stock	Level 2				3,152		3,152		3,618		3,618
Loans held for sale	Level 2				2,932		3,328		12,069		13,698
Loans, net		(2	)		695,018		698,843		635,981		641,449
Accrued interest receivable	Level 2				2,827		2,827		2,717		2,717
Financial Liabilities:
Demand and savings deposits	Level 2			$	372,827		372,827	$	383,412	$	383,412
Time deposits	Level 2				275,106		276,528		243,356		245,094
Borrowings	Level 2				62,755		60,297		68,683		64,185
Accrued interest payable	Level 2				445		445		423		423

(1) See the recurring fair value table above.

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

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Regulatory Matters

12 Months Ended

Dec. 31, 2014

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 required 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 required 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.

Effective May 19, 2014, the FDIC and the Department terminated the Consent Orders entered into between Parke Bank, the Company's wholly owned subsidiary, and the FDIC and the Department.

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, 2014 and 2013, that the Company and the Bank met all capital adequacy requirements to which they are subject.

As of December 31, 2014 and 2013, 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, 2014 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, 2014	(Amounts in thousands except ratios)
Total Risk Based Capital	$	123,539		17.23	%	$	57,367		8	%	$	N/	A		N/	A
(to Risk Weighted Assets)
Tier 1 Capital	$	114,593		15.98	%	$	28,684		4	%	$	N/	A		N/	A
(to Risk Weighted Assets)
Tier 1 Capital	$	114,593		14.12	%	$	32,460		4	%	$	N/	A		N/	A
(to Average Assets)
As of December 31, 2013
Total Risk Based Capital	$	115,554		17.04	%	$	54,259		8	%	$	N/	A		N/	A
(to Risk Weighted Assets)
Tier 1 Capital	$	106,952		15.77	%	$	27,130		4	%	$	N/	A		N/	A
(to Risk Weighted Assets)
Tier 1 Capital	$	106,952		13.94	%	$	30,463		4	%	$	N/	A		N/	A
(to Average Assets)
Parke Bank
As of December 31, 2014
Total Risk Based Capital	$	123,609		17.22	%	$	57,426		8	%	$	71,783			10	%
(to Risk Weighted Assets)
Tier 1 Capital	$	114,664		15.97	%	$	28,713		4	%	$	43,070			6	%
(to Risk Weighted Assets)
Tier 1 Capital	$	114,664		14.27	%	$	32,150		4	%	$	40,188			5	%
(to Average Assets)
As of December 31, 2013
Total Risk Based Capital	$	114,744		16.92	%	$	54,259		8	%	$	67,824			10	%
(to Risk Weighted Assets)
Tier 1 Capital	$	106,142		15.65	%	$	27,130		4	%	$	40,694			6	%
(to Risk Weighted Assets)
Tier 1 Capital	$	106,142		13.94	%	$	30,463		4	%	$	38,079			5	%
(to Average Assets)

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Deposits

12 Months Ended

Dec. 31, 2014

Deposits [Abstract]

Deposits

Note 8. Deposits

Deposits at December 31, 2014 and 2013 consisted of the following:

	2014		2013
	(Amounts in thousands)
Demand deposits, noninterest-bearing	$	42,554	$	35,986
Demand deposits, interest-bearing		28,652		29,197
Money market deposits		107,321		93,743
Savings deposits		194,300		224,486
Time deposits of $250,000 or more		28,916		21,561
Other time deposits		225,875		216,579
Brokered time deposits		20,315		5,216
Total deposits	$	647,933	$	626,768

Scheduled maturities of certificates of deposit at December 31, 2014 are as follows:

Years Ending December 31,	(Amounts in thousands)
2015	$	195,309
2016		40,438
2017		23,968
2018		11,841
2019		3,550
Thereafter		—
Total	$	275,106

Deposits from related parties totaled approximately $4,964,000 and $5,446,000 at December 31, 2014 and 2013, respectively.

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Parent Company Only Financial Statements (Details) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2009	Dec. 31, 2012
Assets:
Other assets	$ 3,787	$ 959
Total Assets	821,706	794,943
Liabilities and Equity:
Subordinated debentures	13,403	13,403
Other liabilities	7,523	5,105
Equity	103,050	93,964		83,543
Total liabilities and equity	821,706	794,943
Income:
Total interest income	38,132	36,784
Expense:
Total interest expense	5,579	5,795
Income before income tax expense	18,023	12,863
Provision for income taxes	5,711	3,625
Net income attributable to Company	10,473	7,571
Discount on Series A preferred stock	0	1,948
Preferred stock dividend and discount accretion	1,200	1,058
Net income available to common shareholders	9,273	8,461
Cash Flows from Operating Activities
Net income	12,312	9,238
Changes in operating assets and liabilities:
(Decrease) increase in accrued interest payable and other accrued liabilities	1,041	1,164
Net cash provided by operating activities	26,530	5,391
Cash Flows from Investing Activities
Net cash used in investing activities	(47,786)	(51,685)
Cash Flows from Financing Activities
Proceeds from issuance of Series B preferred stock, net			16,300
Proceeds from exercise of stock options	114	290
Payment of dividend on preferred stock and common stock	(1,575)	(816)
Net cash provided by financing activities	11,833	15,089
(Decrease)/increase in cash and cash equivalents	(9,423)	(31,205)
Cash and Cash Equivalents, January 1,	45,661	76,866
Cash and Cash Equivalents, December 31,	36,238	45,661
Parent Company [Member]
Assets:
Cash	138	1,097
Investments in subsidiaries	116,378	106,311
Other assets	56	5
Total Assets	116,572	107,413
Liabilities and Equity:
Subordinated debentures	13,403	13,403
Other liabilities	264	294
Equity	102,905	93,716
Total liabilities and equity	116,572	107,413
Income:
Dividends from bank subsidiary	1,180	2,684
Other income	0	0
Total interest income	1,180	2,684
Expense:
Interest on subordinated debentures	251	255
Salary	80	160
Other expenses	51	100
Total interest expense	382	515
Income before income tax expense	798	2,169
Equity in undistributed income of subsidiaries	9,675	5,402
Net income attributable to Company	10,473	7,571
Discount on Series A preferred stock	0	1,948
Preferred stock dividend and discount accretion	(1,200)	1,058
Net income available to common shareholders	9,273	8,461
Cash Flows from Operating Activities
Net income	10,473	7,571
Adjustments to reconcile net income to net cash provided by operating activities:
Equity in undistributed earnings of subsidiaries	(9,675)	(5,402)
Changes in operating assets and liabilities:
Increase in other assets	0	0
(Decrease) increase in accrued interest payable and other accrued liabilities	(30)	161
Net cash provided by operating activities	768	2,330
Cash Flows from Investing Activities
Net cash used in investing activities	0	0
Cash Flows from Financing Activities
Proceeds from issuance of Series B preferred stock, net	0	18,539
Redemption of Series A preferred stock	(250)	(14,340)
Proceeds from exercise of stock options	114	290
Payment of dividend on preferred stock and common stock	(1,575)	(816)
Other, net	(16)	(4,959)
Net cash provided by financing activities	(1,727)	(1,286)
(Decrease)/increase in cash and cash equivalents	(959)	1,044
Cash and Cash Equivalents, January 1,	1,097	53
Cash and Cash Equivalents, December 31,	$ 138	$ 1,097

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Company Premises and Equipment

12 Months Ended

Dec. 31, 2014

Company Premises and Equipment [Abstract]

Company Premises and Equipment

Note 6.  Company Premises and Equipment

A summary of the cost and accumulated depreciation and amortization of Company premises and equipment as of December 31, 2014 and 2013 is as follows:

	Estimated
	Useful lives	2014			2013
		(Amounts in thousands)
Land		$	820		$	820
Building and improvements	12 years		4,947			4,091
Furniture and equipment	9.6 years		2,031			1,913
Total premises and equipment			7,798			6,824
Less: accumulated depreciation and amortization			(3,308	)		(2,960	)
Premises and equipment, net		$	4,490		$	3,864

Depreciation and amortization expense was $348,000 and $337,000 in 2014 and 2013, 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, 2014, the required future minimum rental payments under these leases and other equipment operating leases are as follows:

Years Ending December 31,	(Amounts in thousands)
2015		140
2016		107
2017		31
Total minimum lease payments	$	278

Rent expense was approximately $134,600 in 2014 and $140,000 in 2013.

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OREO

12 Months Ended

Dec. 31, 2014

OREO [Abstract]

OREO

Note 7.  OREO

OREO at December 31, 2014 was $20.9 million, compared to $28.9 million at December 31, 2013, a decrease of $8.0 million. The real estate owned at December 31, 2014 consisted of 19 properties, the largest being a condominium development at $9.1 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 2014, the Company disposed of $11.9 million of OREO, recognizing a gain of $722,000, compared to $4.2 million of OREO sold in 2013, recognizing a loss of $141,000. Also during 2014, the Company wrote down OREO property by $1.3 million, compared to $521,000 of write-downs in 2013, based on a decline in appraised values. There was a valuation allowance related to OREO of $1.5 million as of December 31, 2014, compared to a valuation allowance related to OREO of $2.4 million as of December 31, 2013. Operating expenses related to OREO, net of related income, for 2014 and 2013, were $3.9 million and $4.6 million, respectively.

An analysis of OREO activity for the years ended December 31, 2014 and 2013 is as follows:

	For the Year Ended December 31,
	2014			2013
	(Amounts in thousands)
Balance at beginning of period	$	28,910		$	26,057
Real estate acquired in settlement of loans		5,797			9,903
Allowance for OREO		(1,493	)		(2,417	)
Sales of real estate		(11,851	)		(4,223	)
Gain (loss) on sale of real estate		722			(141	)
Write-down of real estate carrying values		(1,318	)		(521	)
Donated property		(22	)		—
Reimbursement of funds		(251	)		—
Capitalized improvements to real estate		437			252
Balance at end of period	$	20,931		$	28,910

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Borrowings

12 Months Ended

Dec. 31, 2014

Borrowings [Abstract]

Borrowings

Note 9. Borrowings

An analysis of borrowings as of December 31, 2014 and 2013 is as follows:

		2014					2013
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	$	—		—		$	—		—
Other repurchase agreements	July 2013	$	—		—		$	—		—
Federal Home Loan Bank advances	Less than one year	$	23,202		0.58	%	$	19,900		1.18	%
One to three years			21,150		1.35	%		18,380		0.90	%
Three to five years			5,000		2.06	%		17,000		1.75	%
Five to ten years			—		—			—		—
Total		$	49,352				$	55,280
Subordinated debentures, capital trusts	November 2035	$	5,155		1.89	%	$	5,155		1.90	%
November 2035			5,155		1.89	%		5,155		1.90	%
September 2037			3,093		1.74	%		3,093		1.74	%
Total		$	13,403				$	13,403

At December 31, 2014, the Company had a $93.4 million line of credit from the FHLBNY, of which $49.4 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 1.89% at December 31, 2014. 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 1.89%. 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 1.74% at December 31, 2014. 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.

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Borrowings (Tables)

12 Months Ended

Dec. 31, 2014

Borrowings [Abstract]

Schedule of Analysis of Borrowings

An analysis of borrowings as of December 31, 2014 and 2013 is as follows:

		2014					2013
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	$	—		—		$	—		—
Other repurchase agreements	July 2013	$	—		—		$	—		—
Federal Home Loan Bank advances	Less than one year	$	23,202		0.58	%	$	19,900		1.18	%
One to three years			21,150		1.35	%		18,380		0.90	%
Three to five years			5,000		2.06	%		17,000		1.75	%
Five to ten years			—		—			—		—
Total		$	49,352				$	55,280
Subordinated debentures, capital trusts	November 2035	$	5,155		1.89	%	$	5,155		1.90	%
November 2035			5,155		1.89	%		5,155		1.90	%
September 2037			3,093		1.74	%		3,093		1.74	%
Total		$	13,403				$	13,403

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Deposits (Details) (USD $)	Dec. 31, 2014	Dec. 31, 2013
Summary of Deposits [Abstract]
Demand deposits, noninterest-bearing	$ 42,554,000	$ 35,986,000
Demand deposits, interest-bearing	28,652,000	29,197,000
Money market deposits	107,321,000	93,743,000
Savings deposits	194,300,000	224,486,000
Time deposits, $250,000 or more	28,916,000	21,561,000
Other time deposits	225,875,000	216,579,000
Brokered time deposits	20,315,000	5,216,000
Total deposits	647,933,000	626,768,000
Scheduled maturities of certificates of deposit [Abstract]
2015	195,309,000
2016	40,438,000
2017	23,968,000
2018	11,841,000
2019	3,550,000
Thereafter	0
Total	275,106,000
Deposits from related parties	$ 4,964,000	$ 5,446,000

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Other Related Party Transactions

12 Months Ended

Dec. 31, 2014

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 $252,000 in 2014 and $323,000 in 2013. 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 $582,000 in 2014 and $539,000 in 2013.

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

12 Months Ended

Dec. 31, 2014

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 subsidiary, Parke Bank. 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, 2014 and 2013, 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, 2014 and 2013, 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 and the loss taken into earnings.

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 these stocks 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, management considers 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 provisions. 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 TDR 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 Company'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, changes in values of collateral 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-impaired loans and is based on historical charge-off experience and incurred 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 will 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, 2014 or 2013. The Company does not have an accrual for uncertain tax positions as of December 31, 2014 or 2013, 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 2011 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 2010 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, 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 2013 financial statements have been reclassified to conform to the 2014 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.

Accumulated other comprehensive income (loss) consisted of the following at December 31, 2014 and 2013:

	2014				2013
	(Amounts in thousands)
Securities:
Non-credit unrealized losses on available for sale securities with OTTI		$	(457	)		$	(457	)
Unrealized gains on available for sale securities without OTTI			732				65
Tax impact			(110	)			157
		$	165			$	(235	)

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 outstanding and convertible preferred stock. 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 2013 (Note 13). Earnings per common share have been computed based on the following for 2014 and 2013:

	2014		2013
	(Amounts in thousands, except share data)
Basic earnings per common share
Net income available to common shareholders	$	9,273	$	8,461
Average common shares outstanding		5,991,226		5,964,018
Basic earnings per common share	$	1.55	$	1.42
Diluted earnings per common share
Net income available to common shareholders		9,273		8,461
Dividend on Preferred Series B		1,200		—
Net income available to common shareholders pre dividend on Preferred Series B	$	10,473	$	8,461
Average common shares outstanding		5,991,226		5,964,018
Dilutive potential common shares		1,935,633		1,645
Total diluted average common shares outstanding		7,926,859		5,965,663
Diluted earnings per common share	$	1.32	$	1.42

For 2014 and 2013, options to purchase 0 shares and 319,586 shares, respectively, were outstanding but were not included in the computation of diluted EPS because the options' common stock equivalents and preferred stock 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 January 2014, the FASB issued ASU 2014-04, "Receivables-Troubled Debt Restructurings by Creditors (Subtopic 310-40): Reclassification of Residential Real Estate Collateralized Consumer Mortgage Loans upon Foreclosure." ASU 2014-04 clarifies that an in-substance repossession or foreclosure occurs, and a creditor is considered to have received physical possession of residential real estate property collateralizing a consumer mortgage loan, upon either (a) the creditor obtaining legal title to the residential real estate property upon completion of a foreclosure or (b) the borrower conveying all interest in the residential real estate property to the creditor to satisfy that loan through completion of a deed in lieu of foreclosure or through a similar legal agreement. Additionally, ASU 2014-04 requires interim and annual disclosure of both (a) the amount of foreclosed residential real estate property held by the creditor and (b) the recorded investment in consumer mortgage loans collateralized by residential real estate property that are in the process of foreclosure according to local requirements of the applicable jurisdiction. The amendments in ASU 2014-04 are effective for fiscal years, and interim periods within those years, beginning after December 15, 2014. An entity can elect to adopt the amendments using either a modified retrospective transition method or a prospective transition method. Early adoption is permitted. The Company is currently evaluating the impact of these amendments.

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Company Premises and Equipment (Details) (USD $)	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013
Property, Plant and Equipment [Line Items]
Total premises and equipment	$ 7,798,000	$ 6,824,000
Less: accumulated depreciation and amortization	(3,308,000)	(2,960,000)
Premises and equipment, net	4,490,000	3,864,000
Depreciation and amortization expense	348,000	337,000
Future minimum rental payments under operating leases [Abstract]
2015	140,000
2016	107,000
2017	31,000
Total minimum lease payments	278,000
Rent expense	134,600	140,000
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	820,000	820,000
Building and Improvements [Member]
Property, Plant and Equipment [Line Items]
Estimated useful lives	12 years
Total premises and equipment	4,947,000	4,091,000
Furniture and Equipment [Member]
Property, Plant and Equipment [Line Items]
Estimated useful lives	9 years 7 months 6 days
Total premises and equipment	$ 2,031,000	$ 1,913,000

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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, 2014 Segment Branch	Dec. 31, 2013
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
Uncertain tax positions	0	0
Segment Reporting [Abstract]
Number of Reportable Segments	1
Securities [Abstract]
Non-credit unrealized losses on available for sale securities with OTTI	(457)	(457)
Unrealized gains on available for sale securities without OTTI	732	65
Tax impact	(110)	157
Accumulated other comprehensive income (loss), total	165	(235)
Basic earnings per common share [Abstract]
Net income available to common shareholders	9,273	8,461
Average common shares outstanding (in shares)	5,991,226	5,964,018
Basic earnings per common share (in dollars per share)	$ 1.55	$ 1.42
Diluted earnings per common share [Abstract]
Net income available to common shareholders	9,273	8,461
Dividend on Preferred Series B	1,200	0
Net income available to common shareholders pre dividend on Preferred Series B	$ 10,473	$ 8,461
Average common shares outstanding (in shares)	5,991,226	5,964,018
Dilutive potential common shares (in shares)	1,933,633	1,645
Total diluted average common shares outstanding (in shares)	7,924,859	5,965,568
Diluted earnings per common share (in dollars per share)	$ 1.32	$ 1.42
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)	0	319,586
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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Consolidated Statements of Comprehensive Income (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013
Consolidated Statements of Comprehensive Income [Abstract]
Net income available to common shareholders	$ 9,273	$ 8,461
Unrealized gains on securities:
Non-credit related unrealized gains on securities with OTTI	0	42
Unrealized gains on securities without OTTI	844	815
Less re-class adjustment for gains on securities included in net income	(178)	(251)
Tax impact	(266)	(242)
Total unrealized gains on securities	400	364
Gross pension liability adjustments	0	243
Tax impact	0	(97)
Total pension liability adjustment	0	146
Total other comprehensive income	400	510
Total comprehensive income	$ 9,673	$ 8,971

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Investment Securities

12 Months Ended

Dec. 31, 2014

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, 2014 and 2013: 

As of December 31, 2014	Amortized cost		Grossunrealized gains		Grossunrealized losses		Other thantemporaryimpairments in OCI		Fair value
Available for sale:	(Amounts in thousands)
Corporate debt obligations	$	500	$	22	$	—	$	—	$	522
Residential mortgage-backed securities		26,252		754		59		—		26,947
Collateralized mortgage obligations		375		15		—		—		390
Collateralized debt obligations		806		—		—		457		349
Total available for sale	$	27,933	$	791	$	59	$	457	$	28,208
Held to maturity:
States and political subdivisions	$	2,141	$	236	$	—	$	—	$	2,377

As of December 31, 2013	Amortized cost		Grossunrealized gains		Grossunrealized losses		Other thantemporaryimpairments in OCI		Fair value
Available for sale:	(Amounts in thousands)
Corporate debt obligations	$	500	$	6	$	—	$	—	$	506
Residential mortgage-backed securities		30,422		285		257		—		30,450
Collateralized mortgage obligations		564		31		—		—		595
Collateralized debt obligations		4,601		—		—		457		4,144
Total available for sale	$	36,087	$	322	$	257	$	457	$	35,695
Held to maturity:
States and political subdivisions	$	2,103	$	52	$	—	$	—	$	2,155

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, 2014, 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		—		—
Due after ten years		1,306		871
Residential mortgage-backed securities and collateralized mortgage obligations		26,627		27,337
Total available for sale	$	27,933	$	28,208

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		2,141		2,377
Total held to maturity	$	2,141	$	2,377

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.

During the year ending December 31, 2014, the Company sold three investment securities with a carrying value of $4.0 million, recognizing a gain of $178,000. During the year ending December 31, 2013, the Company sold 2 investment securities with a carrying value of $6,500, recognizing a gain of $250,496.

Securities with a carrying value of $15.0 million and $12.3 million, respectively, were pledged to secure public deposits at December 31, 2014 and 2013.

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, 2014 and December 31, 2013:

As of December 31, 2014	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:
Residential mortgage-backed securities		$	3,968		$	59		$	—		$	—		$	3,968		$	59
Total available for sale		$	3,968		$	59		$	—		$	—		$	3,968		$	59

As of December 31, 2013	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:
Residential mortgage-backed securities		$	25,286		$	257		$	—		$	—		$	25,286		$	257
Total available for sale		$	25,286		$	257		$	—		$	—		$	25,286		$	257

Residential Mortgage-Backed Securities

The unrealized losses on the Company's investment in mortgage-backed securities relates to eight securities. The losses were caused by movement in interest rates. The securities were issued by FNMA, a government sponsored entity. 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 the investment in these securities to be OTTI at December 31, 2014.

Other Than Temporarily Impaired Debt Securities

The Company assesses whether we intend to sell or whether 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 OTTI 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 2014 and 2013:

	2014			2013
	(Amounts in thousands)
Beginning balance	$	1,126		$	1,219
Initial credit impairment		—			—
Subsequent credit impairments		—			—
Increases for impairment recognized in earnings due to intent or requirement to sell		—			955
Reductions for securities sold		(955	)		(994	)
Reductions for securities deemed worthless(1)		—			(54	)
Reductions for increases in cash flows expected to be collected		—			—
Ending balance	$	171		$	1,126

⁽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, 2014 and 2013 are as follows:

	2014		2013
	(Amounts in thousands)
Available for sale securities:
Realized gains	$	178	$	251
Realized (losses)		—		—
Other than temporary impairment		—		(955	)
Total available for sale securities	$	178	$	(704	)
Held to maturity securities:
Realized gains	$	—	$	—
Realized (losses)		—		—
Other than temporary impairment		—		—
Total held to maturity securities	$	—	$	—

During 2014, the Company recognized a gain of $178,000 from the sale of three trust preferred securities.

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Commitments and Contingencies (Details) (USD $) In Millions, unless otherwise specified	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items]
Maximum period of variable rate	1 year
Commitments to Extend Credit [Member]
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items]
Off-balance sheet risks liability	52.8	$ 33.5
Standby Letters of Credit [Member]
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items]
Off-balance sheet risks liability	6.8	$ 6.1

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

12 Months Ended

Dec. 31, 2014

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

Accumulated Other Comprehensive Income (Loss)

Accumulated other comprehensive income (loss) consisted of the following at December 31, 2014 and 2013:

	2014				2013
	(Amounts in thousands)
Securities:
Non-credit unrealized losses on available for sale securities with OTTI		$	(457	)		$	(457	)
Unrealized gains on available for sale securities without OTTI			732				65
Tax impact			(110	)			157
		$	165			$	(235	)

Computation of Earnings Per Common Share

Earnings per common share have been computed based on the following for 2014 and 2013:

	2014		2013
	(Amounts in thousands, except share data)
Basic earnings per common share
Net income available to common shareholders	$	9,273	$	8,461
Average common shares outstanding		5,991,226		5,964,018
Basic earnings per common share	$	1.55	$	1.42
Diluted earnings per common share
Net income available to common shareholders		9,273		8,461
Dividend on Preferred Series B		1,200		—
Net income available to common shareholders pre dividend on Preferred Series B	$	10,473	$	8,461
Average common shares outstanding		5,991,226		5,964,018
Dilutive potential common shares		1,935,633		1,645
Total diluted average common shares outstanding		7,926,859		5,965,663
Diluted earnings per common share	$	1.32	$	1.42

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Shareholders' Equity (Tables)

12 Months Ended

Dec. 31, 2014

Shareholders' Equity [Abstract]

Schedule of Stock Options Activity

The following table summarizes stock option activity for the year ended December 31, 2014.

Options	Shares		Weighted Average Exercise Price		Weighted Average Remaining Contractual Life		Aggregate Intrinsic Value
Outstanding at January 1, 2014		331,694	$	9.20
Exercised		14,549	$	7.77
Expired/terminated		5,275	$	7.60
Outstanding at December 31, 2014		311,870	$	9.29		0.9	$	704,760
Exercisable at December 31, 2014		311,870	$	9.29		0.9	$	704,760

Schedule of Stock Options Outstanding and Exercisable

Stock options outstanding and exercisable at December 31, 2014 are as follows:

Exercise Prices	Number Outstanding		Weighted Average Remaining Contractual Life
$8.10		47,753		0.2
$9.45		245,598		1.0
$10.26		18,519		1.8
		311,870		0.9

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Shareholders' Equity

12 Months Ended

Dec. 31, 2014

Shareholders' Equity [Abstract]

Shareholders' Equity

Note 13. Shareholders' Equity

Common Stock Dividend: In July 2014 and October 2014 the Company paid a cash dividend of $0.05 a share, totaling $598,000. In May 2013 the Company paid a 10% common stock dividend to shareholders, 541,326 shares. All 2013 share and per share information has been retroactively adjusted to give effect to this stock dividend.

Treasury Stock: No transactions occurred in 2014 or 2013 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. 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 2014 and 2013.

Option awards are granted with an exercise price equal to the market price of the Company's stock at the date of the grant. All options issued have 10 year contractual terms and were fully vested as of December 31, 2014.

The following table summarizes stock option activity for the year ended December 31, 2014.

Options	Shares		Weighted Average Exercise Price		Weighted Average Remaining Contractual Life		Aggregate Intrinsic Value
Outstanding at January 1, 2014		331,694	$	9.20
Exercised		14,549	$	7.77
Expired/terminated		5,275	$	7.60
Outstanding at December 31, 2014		311,870	$	9.29		0.9	$	704,760
Exercisable at December 31, 2014		311,870	$	9.29		0.9	$	704,760

Stock options outstanding and exercisable at December 31, 2014 are as follows:

Exercise Prices	Number Outstanding		Weighted Average Remaining Contractual Life
$8.10		47,753		0.2
$9.45		245,598		1.0
$10.26		18,519		1.8
		311,870		0.9

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 required 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 had a dividend rate of 5% per year until the fifth anniversary of the Treasury investment and a dividend of 9%, thereafter. The CPP also required 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 Fixed Rate Cumulative Perpetual Preferred Stock, Series A, of $16.3 million 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 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 were accounted for as equity securities.

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 were lifted.

In June of 2013, the U.S. Treasury held an auction to sell the warrants and the Company was the successful bidder thereby redeeming the outstanding warrants from the U.S. Treasury at a cost of $1.7 million.

In December of 2013, the Company completed a private placement of newly designated 6.00% Non-Cumulative Perpetual Convertible Preferred Stock, Series B, with a liquidation preference of $1,000 per share. The Company sold 20,000 shares in the placement for gross proceeds of $20.0 million. Each share of Series B Preferred Stock is convertible, at the option of the holder into 93.9496 shares of Common Stock. Upon full conversion of the Series B Preferred Stock, the Company will issue up to 1,878,992 shares of Common Stock assuming that the Conversion Rate does not change. The Conversion Rate and the total number of shares to be issued would be adjusted for stock dividends, stock splits and other corporate actions. The Conversion Rate was set using a conversion price for the common stock of $10.64, which was approximately 20% over the closing price of the common stock on October 10, 2013, the day the Series B Preferred Stock was priced. Proceeds after expenses were $18.5 million. Parke Bancorp utilized a portion of the proceeds to repurchase and retire 16,288 shares of outstanding Fixed Rate Cumulative Perpetual Preferred Stock, Series A. The Company was able to repurchase these shares for an aggregate price of $14.34 million, a discount of $1.9 million.

The Company has recorded dividends on preferred stock in the approximate amount of $1.2 million and $1.1 million for the years ended December 31, 2014 and 2013 respectively. All dividend amounts through December 31, 2014 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.