UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

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

For the quarterly period ended: June 30, 2024

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)	(IRS Employer Identification No.)
601 Delsea Drive, Washington Township, New Jersey	08080
(Address of principal executive offices)	(Zip Code)

856-256-2500

(Registrant's telephone number, including area code)

N/A

(Former name, former address and former fiscal year, if changed since last report)

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

Title of each class	Trading Symbols	Name of Each Exchange on Which Registered
Common Stock, par value $0.10 per share	PKBK	The Nasdaq Stock Market, LLC

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 [☒]                No [☐]

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).

Yes [☒]                No [☐]

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

Large accelerated filer [☐]       Accelerated filer [ ]         Non-accelerated filer [X]        Smaller reporting company [X] Emerging growth company [☐ ] 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

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

Yes [☐ ]                No [☒]

As of August 2, 2024, there were 11,977,398 shares of the registrant's common stock ($0.10 par value) outstanding.

INDEX

		Page
Part I	FINANCIAL INFORMATION
Item 1.	Financial Statements	1
	Consolidated Balance Sheets as of June 30, 2024 and December 31, 2023 (unaudited)	1
	Consolidated Statements of Income for the three and six months ended June 30, 2024 and 2023 (unaudited)	2
	Consolidated Statements of Comprehensive Income for the three and six months ended June 30, 2024 and 2023 (unaudited)	3
	Consolidated Statements of Equity for the three and six months ended June 30, 2024 and 2023 (unaudited)	4
	Consolidated Statements of Cash Flow for the six months ended June 30, 2024 and 2023 (unaudited)	6
	Notes to Consolidated Financial Statements (unaudited)	7
Item 2.	Management's Discussion and Analysis of Financial Condition and Results of Operations	24
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	33
Item 4.	Controls and Procedures	33
Part II	OTHER INFORMATION
Item 1.	Legal Proceedings	33
Item 1A.	Risk Factors	34
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	34
Item 3.	Defaults Upon Senior Securities	34
Item 4.	Mine Safety Disclosures	34
Item 5.	Other Information	34
Item 6.	Exhibits	35
SIGNATURES		36

PART I. FINANCIAL INFORMATION

Item 1. Financial Statements

Parke Bancorp, Inc. and Subsidiaries

Consolidated Balance Sheets

(unaudited)

(Dollars in thousands except per share data)

	June 30, 2024		December 31, 2023
Assets
Cash and due from banks	$	6,840	$	12,716
Interest bearing deposits with banks	160,838		167,660
Cash and cash equivalents	167,678		180,376
Investment securities available for sale, at fair value	6,258		7,095
Investment securities held to maturity, net of allowance for credit losses of $0 at June 30, 2024 and December 31, 2023 (fair value of $7,564 at June 30, 2024 and $7,892 at December 31, 2023)	9,251		9,292
Total investment securities	15,509		16,387
Loans, net of unearned income	1,805,141		1,787,340
Less: Allowance for credit losses	(32,425)		(32,131)
Net loans	1,772,716		1,755,209
Accrued interest receivable	9,067		8,555
Premises and equipment, net	5,441		5,579
Restricted stock	9,982		7,636
Bank owned life insurance (BOLI)	28,738		28,415
Deferred tax asset	9,262		9,262
Other real estate owned (OREO)	1,558		1,550
Other	7,187		10,531
Total assets	$	2,027,138	$	2,023,500
Liabilities and Shareholders' Equity
Liabilities
Deposits
Noninterest-bearing deposits	$	198,761	$	232,189
Interest-bearing deposits	1,297,680		1,320,638
Total deposits	1,496,441		1,552,827
FHLBNY borrowings	175,000		125,000
Subordinated debentures	43,206		43,111
Accrued interest payable	5,052		4,146
Other	14,639		14,099
Total liabilities	1,734,338		1,739,183
Shareholders' Equity
Preferred stock, 1,000,000 shares authorized, $1,000 liquidation value Series B non-cumulative convertible; 325 shares and 375 shares outstanding at June 30, 2024 and December 31, 2023, respectively	325		375
Common stock, $0.10 par value; authorized 15,000,000 shares; Issued: 12,254,220 shares and 12,240,821 shares at June 30, 2024 and December 31, 2023, respectively	1,225		1,224
Additional paid-in capital	136,946		136,700
Retained earnings	157,725		149,437
Accumulated other comprehensive loss	(406)		(404)
Treasury stock, 284,522 shares at June 30, 2024 and December 31, 2023, at cost	(3,015)		(3,015)
Total shareholders’ equity	292,800		284,317
Total liabilities and shareholders' equity	$	2,027,138	$	2,023,500

See accompanying notes to the unaudited consolidated financial statements

1

Parke Bancorp Inc. and Subsidiaries

CONSOLIDATED STATEMENTS OF INCOME

(unaudited)

(Dollars in thousands except per share data)

	For the Three Months Ended June 30,				For the Six Months Ended June 30,
	2024		2023		2024		2023
Interest income:
Interest and fees on loans	$	28,732	$	25,763	$	56,815	$	50,307
Interest and dividends on investments	248		227		497		437
Interest on deposits with banks	1,209		1,277		2,354		2,547
Total interest income	30,189		27,267		59,666		53,291
Interest expense:
Interest on deposits	13,684		9,079		27,141		16,661
Interest on borrowings	2,193		2,321		4,159		3,615
Total interest expense	15,877		11,400		31,300		20,276
Net interest income	14,312		15,867		28,366		33,015
Provision for (recovery of) credit losses	483		500		687		(1,900)
Net interest income after provision for (recovery of) credit losses	13,829		15,367		27,679		34,915
Non-interest income
Service fees on deposit accounts	359		931		738		2,146
Gain on sale of SBA loans	25		—		25		—
Other loan fees	163		241		402		419
Bank owned life insurance income	162		147		322		290
Other	492		277		776		523
Total non-interest income	1,201		1,596		2,263		3,378
Non-interest expense
Compensation and benefits	3,070		2,940		6,289		6,581
Professional services	551		494		996		1,087
Occupancy and equipment	672		645		1,313		1,290
Data processing	264		367		629		668
FDIC insurance and other assessments	322		347		653		573
OREO expense	236		198		589		370
Other operating expense	1,120		1,381		2,301		2,562
Total non-interest expense	6,235		6,372		12,770		13,131
Income before income tax expense	8,795		10,591		17,172		25,162
Income tax expense	2,340		2,461		4,566		5,902
Net income attributable to Company	6,455		8,130		12,606		19,260
Less: Preferred stock dividend	(5)		(7)		(11)		(14)
Net income available to common shareholders	$	6,450	$	8,123	$	12,595	$	19,246
Earnings per common share
Basic	$	0.54	$	0.68	$	1.05	$	1.61
Diluted	$	0.53	$	0.67	$	1.04	$	1.59
Weighted average common shares outstanding
Basic	11,962,197		11,945,424		11,960,487		11,944,794
Diluted	12,119,359		12,119,004		12,125,546		12,139,899

See accompanying notes to the unaudited consolidated financial statements

2

Parke Bancorp Inc. and Subsidiaries

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(unaudited)

(Dollars in thousands)

	For the Three Months Ended June 30,				For the Six Months Ended June 30,
	2024		2023		2024		2023
Net income attributable to the Company	$	6,455	$	8,130	$	12,606	$	19,260
Unrealized gain (loss) on investment securities	32		(61)		(3)		22
Tax impact on unrealized (gain) loss	(8)		16		1		(6)
Total unrealized gain (loss) on investment securities	24		(45)		(2)		16
Comprehensive income attributable to the Company	$	6,479	$	8,085	$	12,604	$	19,276

See accompanying notes to the unaudited consolidated financial statements

3

Parke Bancorp, Inc. and Subsidiaries

CONSOLIDATED STATEMENTS OF EQUITY

(unaudited)

(Dollars in thousands except share data)

Periods ended June 30, 2024

	Shares of Preferred Stock Outstanding	Preferred Stock		Shares of Common Stock issued	Common Stock		Additional Paid-In Capital		Retained Earnings		Accumulated Other Comprehensive Income (Loss)		Treasury Stock		Total Shareholders' Equity
Three Months Ended
Balance, March 31, 2024	375	$	375	12,247,343	$	1,225	$	136,801	$	153,430	$	(430)	$	(3,015)	$	288,386
Net income	—	—		—	—		—		6,455		—		—		6,455
Preferred stock shares conversion	(50)	(50)		6,877	—		49		—		—		—		(1)
Other comprehensive income	—	—		—	—		—		—		24		—		24
Stock compensation expense	—	—		—	—		96		—		—		—		96
Dividend on preferred stock ($15.00 per share)	—	—		—	—		—		(5)		—		—		(5)
Dividend on common stock ($0.18 per share)	—	—		—	—		—		(2,155)		—		—		(2,155)
Balance, June 30, 2024	325	$	325	12,254,220	$	1,225	$	136,946	$	157,725	$	(406)	$	(3,015)	$	292,800
Six Months Ended
Balance, December 31, 2023	375	$	375	12,240,821	$	1,224	$	136,700	$	149,437	$	(404)	$	(3,015)	$	284,317
Net income	—	—		—	—		—		12,606		—		—		12,606
Common stock options exercised	—	—		6,522	1		55		—		—		—		56
Preferred stock shares conversion	(50)	(50)		6,877	—		49		—		—		—		(1)
Other comprehensive loss	—	—		—	—		—		—		(2)		—		(2)
Stock compensation expense	—	—		—	—		142		—		—		—		142
Dividend on preferred stock ($30.00 per share)	—	—		—	—		—		(11)		—		—		(11)
Dividend on common stock ($0.36 per share)	—	—		—	—		—		(4,307)		—		—		(4,307)
Balance, June 30, 2024	325	$	325	12,254,220	$	1,225	$	136,946	$	157,725	$	(406)	$	(3,015)	$	292,800

See accompanying notes to the unaudited consolidated financial statements

4

Parke Bancorp, Inc. and Subsidiaries

CONSOLIDATED STATEMENTS OF EQUITY

(unaudited)

(Dollars in thousands except share data)

Periods ended June 30, 2023

	Shares of Preferred Stock Outstanding	Preferred Stock		Shares of Common Stock issued	Common Stock		Additional Paid-In Capital		Retained Earnings		Accumulated Other Comprehensive (Loss) Income		Treasury Stock		Total Shareholders' Equity
Three Months Ended
Balance, March 31, 2023	445	$	445	12,231,193	$	1,223	$	136,341	$	138,577	$	(465)	$	(3,015)	$	273,106
Net income	—	—		—	—		—		8,130		—		—		8,130
Other comprehensive loss	—	—		—	—		—		—		(45)		—		(45)
Stock compensation expense	—	—		—	—		106		—		—		—		106
Dividend on preferred stock ($15.00 per share)	—	—		—	—		—		(7)		—		—		(7)
Dividend on common stock ($0.18 per share)	—	—		—	—		—		(2,150)		—		—		(2,150)
Balance, June 30, 2023	445	$	445	12,231,193	$	1,223	$	136,447	$	144,550	$	(510)	$	(3,015)	$	279,140
Six Months Ended
Balance, December 31, 2022	445	$	445	12,225,097	$	1,223	$	136,201	$	131,706	$	(526)	$	(3,015)	$	266,034
Cumulative effect of adoption of ASU 2016-3	—	—		—	—		—		(2,102)		—		—		(2,102)
Net income	—	—		—	—		—		19,260		—		—		19,260
Common stock options exercised	—	—		6,096	—		33		—		—		—		33
Other comprehensive income	—	—		—	—		—		—		16		—		16
Stock compensation expense	—	—		—	—		213		—		—		—		213
Dividend on preferred stock ($30.00 per share)	—	—		—	—		—		(14)		—		—		(14)
Dividend on common stock ($0.36 per share)	—	—		—	—		—		(4,300)		—		—		(4,300)
Balance, June 30, 2023	445	$	445	12,231,193	$	1,223	$	136,447	$	144,550	$	(510)	$	(3,015)	$	279,140

See accompanying notes to the unaudited consolidated financial statements

5

Parke Bancorp Inc. and Subsidiaries

CONSOLIDATED STATEMENTS OF CASH FLOWS

(unaudited)

(Dollars in thousands)

	For the Six Months Ended June 30,
	2024		2023
Cash Flows from Operating Activities:
Net income	$	12,606	$	19,260
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	286		175
Provision for (recovery of) credit losses	687		(1,900)
Increase in value of bank owned life insurance	(322)		(290)
Gain on sale of SBA loans	(25)		—
SBA loans originated for sale	(300)		—
Proceeds from sale of SBA loans originated for sale	325		—
Net accretion of purchase premiums and discounts on securities	(22)		(17)
Stock based compensation	142		213
Net changes in:
Decrease (increase) in accrued interest receivable and other assets	2,824		(2,911)
Increase in accrued interest payable and other accrued liabilities	1,048		186
Net cash provided by operating activities	17,249		14,716
Cash Flows from Investing Activities:
Repayments and maturities of investment securities available for sale	824		953
Repayments and maturities of investment securities held to maturity	73		72
Net increase in loans	(17,796)		(34,698)
(Purchases) sales of bank premises and equipment	(53)		129
Redemptions of restricted stock	3,600		855
Purchases of restricted stock	(5,946)		(5,803)
Net cash used in investing activities	(19,298)		(38,492)
Cash Flows from Financing Activities:
Cash dividends	(4,318)		(4,314)
Proceeds from exercise of stock options	56		33
Conversion of Series B preferred stock	(1)		—
Decrease in FHLBNY long-term borrowings	(75,000)		—
Net increase in FHLBNY short-term borrowings	125,000		103,000
Increase in Federal Reserve short-term borrowings	—		10,000
Net decrease in noninterest-bearing deposits	(33,428)		(81,554)
Net decrease in interest-bearing deposits	(22,958)		(48,042)
Net cash used in financing activities	(10,649)		(20,877)
Net decrease in cash and cash equivalents	(12,698)		(44,653)
Cash and Cash Equivalents, January 1,	180,376		182,150
Cash and Cash Equivalents, June 30,	$	167,678	$	137,497
Supplemental Disclosure of Cash Flow Information:
Interest paid	$	30,394	$	19,210
Income taxes paid	$	1,702	$	9,962
Non-cash Investing and Financing Items
Loans transferred to OREO	$	—	$	123
Accrued dividends payable	$	2,160	$	2,157

See accompanying notes to the unaudited consolidated financial statements

6

Notes to Consolidated Financial Statements (Unaudited)

NOTE 1. ORGANIZATION

Parke Bancorp, Inc. (the “Company, we, us, our”) 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 has six 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, 1150 Haddon Avenue, Collingswood, New Jersey, 1610 Spruce Street, Philadelphia, Pennsylvania, and 1032 Arch Street, Philadelphia, Pennsylvania. The Bank also has a loan office located at 1817 East Venango Street, Philadelphia, Pennsylvania.

NOTE 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Basis of Financial Statement Presentation: We prepared our consolidated financial statements in accordance with accounting principles generally accepted in the United States of America ("GAAP"). The accompanying consolidated financial statements include the accounts of the Company and its wholly-owned subsidiary, Parke Bank (including certain partnership interests). Parke Capital Trust I, Parke Capital Trust II and Parke Capital Trust III are wholly-owned subsidiaries but are not consolidated as they do not meet the requirements for consolidation under applicable accounting guidance. We have eliminated inter-company balances and transactions. We have also reclassified certain prior year amounts to conform to the current year presentation, which did not have a material impact on our consolidated financial condition or results of operations.

The accompanying interim financial statements should be read in conjunction with the annual financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2023. The accompanying interim financial statements for the three and six months ended June 30, 2024 and 2023 are unaudited. The balance sheet as of December 31, 2023, was derived from the audited financial statements. In the opinion of management, these financial statements include all normal and recurring adjustments necessary for a fair statement of the results for such interim periods. Results of operations for the three and six months ended June 30, 2024 are not necessarily indicative of the results for the full year or any other period.

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 credit losses, the valuation of deferred income taxes, and the carrying value of other real estate owned ("OREO").

7

NOTE 3. INVESTMENT SECURITIES

The following is a summary of the Company's investments in available for sale and held to maturity securities as of June 30, 2024 and December 31, 2023: 

As of June 30, 2024	Amortized cost		Gross unrealized gains		Gross unrealized losses		Fair value
	(Dollars in thousands)
Available for sale:
Residential mortgage-backed securities	$	6,804	$	1	$	547	$	6,258
Total available for sale	$	6,804	$	1	$	547	$	6,258
Held to maturity:
Residential mortgage-backed securities	$	5,332	$	—	$	1,179	$	4,153
States and political subdivisions	3,919		5		513		3,411
Total held to maturity	$	9,251	$	5	$	1,692	$	7,564

As of December 31, 2023	Amortized cost		Gross unrealized gains		Gross unrealized losses		Fair value
	(Dollars in thousands)
Available for sale:
Residential mortgage-backed securities	$	7,639	$	3	$	547	$	7,095
Total available for sale	$	7,639	$	3	$	547	$	7,095
Held to maturity:
Residential mortgage-backed securities	$	5,406	$	—	$	1,054	$	4,352
States and political subdivisions	3,886		38		384		3,540
Total held to maturity	$	9,292	$	38	$	1,438	$	7,892

8

The amortized cost and fair value of debt securities classified as available for sale and held to maturity, by contractual maturity as of June 30, 2024 are as follows:

	Amortized Cost		Fair Value
	(Dollars in thousands)
Available for sale:
Due within one year	$	—	$	—
Due after one year through five years	2,576		2,406
Due after five years through ten years	850		788
Due after ten years	3,378		3,064
Total available for sale	$	6,804	$	6,258
Held to maturity:
Due within one year	$	—	$	—
Due after one year through five years	1,446		1,451
Due after five years through ten years	1,507		1,205
Due after ten years	6,298		4,908
Total held to maturity	$	9,251	$	7,564

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

The Company did not sell any securities during the three and six months ended June 30, 2024 or 2023. The following tables show the gross unrealized losses and fair value of the Company's available for sale investments for which an allowance for credit losses has not been recorded, which are aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position at June 30, 2024 and December 31, 2023:

As of June 30, 2024	Less Than 12 Months				12 Months or Greater				Total
Description of Securities	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
	(Dollars in thousand)
Available for sale:
Residential mortgage-backed securities	$	130	$	1	$	6,070	$	546	$	6,200	$	547
Total available for sale	$	130	$	1	$	6,070	$	546	$	6,200	$	547

As of December 31, 2023	Less Than 12 Months				12 Months or Greater				Total
Description of Securities	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
	(Dollars in thousands)
Available for sale:
Residential mortgage-backed securities	$	25	$	—	$	6,870	$	547	$	6,895	$	547
Total available for sale	$	25	$	—	$	6,870	$	547	$	6,895	$	547

On at least a quarterly basis, we review all debt securities that are in an unrealized loss position for a credit loss. An investment security is deemed impaired if the fair value of the investment is less than its amortized cost. Amortized cost includes adjustments (if any) made to the cost basis of an investment for accretion, amortization, and previous other-than-temporary impairments. For individual debt securities classified as available for sale, we determine whether a decline in fair value below the amortized cost has resulted from a credit loss or other factors. If the decline in fair value is due to credit, we will record the portion of the impairment loss relating to credit through an allowance for credit losses. Impairment that has not been recorded through an allowance for credit losses is recorded through other comprehensive income, net of applicable taxes.

The Company’s unrealized loss for the debt securities classified as available for sale is comprised of 11 securities in the less than 12 months loss position and 16 securities in the 12 months or greater loss position at June 30, 2024. These securities are

9

mortgage-backed securities that had unrealized losses issued or guaranteed by the US government or US government sponsored entities. The unrealized losses associated with those mortgage-backed securities are generally driven by changes in interest rates and are not due to credit losses given the explicit or implicit guarantees provided by the U.S. government. Because the Company does not intend to sell the securities and it is not more likely than not that the Company will be required to sell these investments before recovery of their amortized cost basis, the Company does not consider the unrealized loss in these securities to be credit losses at June 30, 2024.

The Company classifies the held-to-maturity debt securities into the following major security types: residential mortgage backed, and state and political subdivisions. These securities are highly rated with a history of no credit losses, and are assigned ratings based on the most recent data from ratings agencies depending on the availability of data for the security. Credit ratings of held-to-maturity debt securities, which are a significant input in calculating the expected credit loss, are reviewed on a quarterly basis. Based on the credit ratings of our held-to-maturity securities and our historical experience including no losses, we have determined that an allowance for credit loss on the held-to-maturity portfolio is not required. Because the Company does not intend to sell the securities and it is not more likely than not that the Company will be required to sell these investments before recovery of their amortized cost basis, the Company does not consider the unrealized loss in these securities to be credit losses at June 30, 2024.

NOTE 4. LOANS AND ALLOWANCE FOR CREDIT LOSSES ON LOANS

At June 30, 2024 and December 31, 2023, the Company had $1.81 billion and $1.79 billion, respectively, in loans receivable outstanding. Outstanding balances include $2.1 million and $2.7 million at June 30, 2024 and December 31, 2023, respectively, for net deferred loan costs, and unamortized discounts.

The portfolio segments of loans receivable at June 30, 2024 and December 31, 2023, consist of the following:

	June 30, 2024		December 31, 2023
	(Dollars in thousands)
Commercial and Industrial	$	35,954	$	35,451
Construction	179,662		157,556
Real Estate Mortgage:
Commercial – Owner Occupied	138,002		141,742
Commercial – Non-owner Occupied	351,325		369,909
Residential – 1 to 4 Family	443,968		449,682
Residential – 1 to 4 Family Investment	523,809		524,167
Residential – Multifamily	127,298		103,324
Consumer	5,123		5,509
Total Loan receivable	1,805,141		1,787,340
Allowance for credit losses on loans	(32,425)		(32,131)
Total loan receivable, net of allowance for credit losses on loans	$	1,772,716	$	1,755,209

10

An age analysis of past due loans by class at June 30, 2024 and December 31, 2023 is as follows:

June 30, 2024	30-59 Days Past Due		60-89 Days Past Due		Greater than 90 Days		Total Past Due		Current		Total Loans
	(Dollars in Thousands)
Commercial and Industrial	$	—	$	—	$	694	$	694	$	35,260	$	35,954
Construction	—		—		1,091		1,091		178,571		179,662
Real Estate Mortgage:
Commercial – Owner Occupied	—		—		1,117		1,117		136,885		138,002
Commercial – Non-owner Occupied	—		3,806		2,106		5,912		345,413		351,325
Residential – 1 to 4 Family	14		67		1,955		2,036		441,932		443,968
Residential – 1 to 4 Family Investment	—		1,256		—		1,256		522,553		523,809
Residential – Multifamily	—		—		—		—		127,298		127,298
Consumer	—		—		—		—		5,123		5,123
Total Loans	$	14	$	5,129	$	6,963	$	12,106	$	1,793,035	$	1,805,141

December 31, 2023	30-59 Days Past Due		60-89 Days Past Due		Greater than 90 Days		Total Past Due		Current		Total Loans
	(Dollars in thousands)
Commercial and Industrial	$	—	$	—	$	712	$	712	$	34,739	$	35,451
Construction	—		—		1,091		1,091		156,465		157,556
Real Estate Mortgage:
Commercial – Owner Occupied	—		—		1,117		1,117		140,625		141,742
Commercial – Non-owner Occupied	—		1,549		3,107		4,656		365,253		369,909
Residential – 1 to 4 Family	58		1,793		1,211		3,062		446,620		449,682
Residential – 1 to 4 Family Investment	—		440		—		440		523,727		524,167
Residential – Multifamily	—		—		—		—		103,324		103,324
Consumer	66		—		—		66		5,443		5,509
Total Loans	$	124	$	3,782	$	7,238	$	11,144	$	1,776,196	$	1,787,340

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

11

	June 30, 2024
(amounts in thousands)	Nonaccrual with no ACL		Nonaccrual with ACL		Total Nonaccrual		Loans Past Due Over 90 Days Still Accruing		Total Nonperforming
Commercial and Industrial	$	—	$	694	$	694	$	—	$	694
Construction	1,091		—		1,091		—		1,091
Commercial - Owner Occupied	717		400		1,117		—		1,117
Commercial - Non-owner Occupied	2,106		—		2,106		—		2,106
Residential - 1 to 4 Family	1,209		746		1,955		—		1,955
Residential - 1 to 4 Family Investment	—		—		—		—		—
Residential - Multifamily	—		—		—		—		—
Consumer	—		—		—		—		—
Total	$	5,123	$	1,840	$	6,963	$	—	$	6,963

	December 31, 2023
(amounts in thousands)	Nonaccrual with no ACL		Nonaccrual with ACL		Total Nonaccrual		Loans Past Due Over 90 Days Still Accruing		Total Nonperforming
Commercial and Industrial	$	277	$	435	$	712	$	—	$	712
Construction	1,091		—		1,091		—		1,091
Commercial - Owner Occupied	717		400		1,117		—		1,117
Commercial - Non-owner Occupied	3,107		—		3,107		—		3,107
Residential - 1 to 4 Family	1,211		—		1,211		—		1,211
Residential - 1 to 4 Family Investment	—		—		—		—		—
Residential - Multifamily	—		—		—		—		—
Consumer	—		—		—		—		—
Total	$	6,403	$	835	$	7,238	$	—	$	7,238

Allowance For Credit Losses (ACL)

We maintain the ACL at a level that we believe to be appropriate to absorb estimated credit losses in the loan portfolios as of the balance sheet date. We established our allowance in accordance with guidance provided in Accounting Standard Codification ("ASC") - Financial Instruments - Credit Losses ("ASC 326").

The allowance for credit losses represents management’s estimate of expected losses inherent in the Company’s lending activities excluding loans accounted for under fair value. The allowance for credit losses is maintained through charges to the provision for credit losses in the Consolidated Statements of Income as expected losses are estimated. 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 Company performs periodic reviews of its loan and lease portfolios to identify credit risks and to assess the overall collectability of those portfolios. The Company's allowance for credit losses includes a general component and an asset-specific component for collateral-dependent loans. To determine the asset-specific component of the allowance, the loans are evaluated individually based on the fair value of the underlying collateral. The Company generally measures the asset-specific allowance as the difference between the net realizable value of loan collateral and the recorded investment of a loan.

12

The general component of the allowance evaluates the impairments of pools of the loan portfolio collectively. It incorporates a historical valuation allowance and qualitative allowance. The historical valuation utilizes a vintage loss rate approach utilizing a third party software model. The vintage loss rate approach creates pools of loans based on the segments defined by management, and consists of commercial and industrial, construction, commercial - owner occupied, commercial - non-owner occupied, residential - 1 to 4 family, residential - 1 to 4 family investment, residential - multifamily, and consumer. The loan pools are aggregated by origination year. Charge-offs, net of recoveries, are allocated by the year of charge-off to each loan pool. An average life is prescribed to a pool of loans that were originated in a particular year. The actual charge-offs as a percent of total loans are calculated for each historical year, and projected for future years for each year within the average life time horizon. The sum of the actual charge-offs and projected charge-offs are divided by the average amortized origination amount for each respective year. Those charge-off percentages are added together to obtain an aggregated vintage loss percentage which is then multiplied by the outstanding loan balances to obtain a reserve requirement.

The qualitative allowance component is based on general economic conditions and other qualitative risk factors both internal and external to the Company. It is generally 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 lending policies, procedures and internal controls;(iii) volume and severity of loan credit quality; (iv) nature and volume of portfolio and term of loans (v) the composition and concentrations of credit; (vi) the effectiveness of the internal loan review system; and (vii) national and local economic trends and conditions, and industry conditions. 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.

The Company has elected to exclude accrued interest receivable from the measurement of the ACL. When a loan is placed on non-accrual status, any outstanding accrued interest is generally reversed against interest income.

The process of determining the level of the allowance for credit losses requires a high degree of estimate and judgment. It is reasonably possible that actual outcomes may differ from our estimates.

Allowance for Credit Losses on Off-Balance Sheet Credit Exposures

The Company estimates expected credit losses over the contractual period in which the Company is exposed to credit risk via a contractual obligation to extend credit, unless that obligation is unconditionally cancellable by the Company. The allowance for credit losses on off-balance sheet credit exposures is adjusted through the provision for credit loss expense. The estimate includes consideration of the likelihood that funding will occur and an estimate of expected credit losses on commitments expected to be funded over its estimated life. At June 30, 2024 and December 31, 2023, the allowance for credit losses on off-balance sheet credit exposures was $896.0 thousand and $499.0 thousand, respectively, on exposures totaling $177.7 million and $133.7 million, respectively.

13

The following tables present the information regarding the allowance for credit losses for the three and six months ended June 30, 2024 and 2023:

					Real Estate Mortgage
	Commercial and Industrial		Construction		Commercial Owner Occupied		Commercial Non-owner Occupied		Residential 1 to 4 Family		Residential 1 to 4 Family Investment		Residential Multifamily		Consumer		Total
	(Dollars in thousands)
Three months ended June 30, 2024
March 31, 2024	$	1,060	$	3,033	$	1,691	$	5,386	$	9,335	$	9,596	$	1,747	$	70	$	31,918
Charge-offs	—		—		—		—		—		—		—		(21)		(21)
Recoveries	2		—		1		—		—		—		—		—		3
Provisions (benefits)	6		959		(156)		28		(265)		87		(144)		10		525
Ending Balance at June 30, 2024	$	1,068	$	3,992	$	1,536	$	5,414	$	9,070	$	9,683	$	1,603	$	59	$	32,425
Allowance for credit losses
Six months ended June 30, 2024
December 31, 2023	$	926	$	3,347	$	1,795	$	7,108	$	9,061	$	8,783	$	1,049	$	62	$	32,131
Charge-offs	—		—		—		—		—		—		—		(21)		(21)
Recoveries	24		—		1		—		—		—		—		—		25
Provisions (benefits)	118		645		(260)		(1,694)		9		900		554		18		290
Ending Balance at June 30, 2024	$	1,068	$	3,992	$	1,536	$	5,414	$	9,070	$	9,683	$	1,603	$	59	$	32,425

During the quarter, the increase to the Construction portfolio was due to an increase in the portfolio balance that increased the loan exposure and also caused changes to the qualitative factors related to concentration levels within the portfolio segments. The decrease to the Commercial Owner Occupied, Residential 1 to 4 Family, and the Residential Multifamily portfolios is driven by changes to the qualitative factors related to concentration levels within the portfolio segments.

For the year to date, the increase in the Construction and Residential Multifamily portfolios was due to increases in the portfolio balances that increased the loan exposure and also caused changes to the qualitative factors related to concentration levels within the portfolio segments. The increase in the Residential 1 to 4 Family Investment portfolio was due to increase to the qualitative factors related to concentration and problem loan levels within the portfolio segments. The decrease to the Commercial Owner Occupied and Commercial Non-owner Occupied portfolios was due to decreases in the portfolio balances that decreased the loan exposure and also caused changes to the qualitative factors related to concentration levels within the portfolio segments.

14

					Real Estate Mortgage
	Commercial and Industrial		Construction		Commercial Owner Occupied		Commercial Non-owner Occupied		Residential 1 to 4 Family		Residential 1 to 4 Family Investment		Residential Multifamily		Consumer		Total
	(Dollars in thousands)
Three months ended June 30, 2023
March 31, 2023	$	738	$	3,599	$	1,876	$	8,076	$	7,806	$	8,070	$	1,238	$	104	$	31,507
Charge-offs	—		—		—		—		—		—		—		—		—
Recoveries	8		—		—		—		—		—		—		—		8
Provisions (benefits)	(156)		379		(7)		722		(96)		(330)		(6)		(6)		500
Ending Balance at June 30, 2023	$	590	$	3,978	$	1,869	$	8,798	$	7,710	$	7,740	$	1,232	$	98	$	32,015
Six months ended June 30, 2023
December 31, 2022	$	390	$	2,581	$	2,298	$	9,709	$	6,076	$	9,381	$	1,347	$	63	$	31,845
Impact of adoption ASC 326	168		1,899		(171)		(951)		1,782		(794)		(128)		53		1,858
Charge-offs	—		—		—		—		—		—		—		—		—
Recoveries	10		—		2		—		—		—		—		—		12
Provisions (benefits)	22		(502)		(260)		40		(148)		(847)		13		(18)		(1,700)
Ending Balance at September 30, 2022	$	590	$	3,978	$	1,869	$	8,798	$	7,710	$	7,740	$	1,232	$	98	$	32,015

During the quarter, the increase to provision for the Construction segment was due to an increase in the portfolio balance, while

the increase in provision to the Commercial Non-owner Occupied segment was driven by an increase to the specific reserve. The

credit provision during the quarter to the Commercial and Industrial and Residential 1-4 Family Investment segments were largely

driven by declines or slowdowns to growth within the portfolio that lowered the loan exposure and also caused changes to the

qualitative factors related to loan volume within the portfolio segments.

For the six months ended June 30, 2023, the credit provision to the Construction, Commercial Owner Occupied, Residential 1 to 4

Family, and Residential 1 to 4 Family Investment segments was largely driven by declines or slowdowns to growth within the

portfolio that lowered loan exposure and also caused changes to the qualitative factors related to loan volume within the portfolio

segments, partially offset by increases in balances in the Construction and Residential 1 - 4 Family Investment segments.

Collateral-Dependent Loans

The following table presents the collateral-dependent loans by portfolio segment and collateral type at June 30, 2024:

(amounts in thousands)	Real Estate		Business Assets		Other
Commercial and Industrial	$	694	$	—	$	—
Construction	1,091		—		—
Commercial - Owner Occupied	1,117		—		—
Commercial - Non-owner Occupied	2,106		—		—
Residential - 1 to 4 Family	1,955		—		—
Residential - 1 to 4 Family Investment	—		—		—
Residential - Multifamily	—		—		—
Consumer	—		—		—
Total	$	6,963	$	—	$	—

15

The following table presents the collateral-dependent loans by portfolio segment and collateral type at December 31, 2023:

(amounts in thousands)	Real Estate		Business Assets		Other
Commercial and Industrial	$	712	$	—	$	—
Construction	1,091		—		—
Commercial - Owner Occupied	1,117		—		—
Commercial - Non-owner Occupied	3,107		—		—
Residential - 1 to 4 Family	1,211		—		—
Residential - 1 to 4 Family Investment	—		—		—
Residential - Multifamily	—		—		—
Consumer	—		—		—
Total	$	7,238	$	—	$	—

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 the 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 individually evaluated. The asset does not currently warrant adverse classification but if not corrected could weaken and could create future increased risk exposure. Includes loans that 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.

16

The following tables provide an analysis of loans by portfolio segment based on the credit quality indicators used to determine the allowance for credit losses, as of June 30, 2024.

(Dollars in thousands)	Term Loans Amortized Cost Basis by Origination Year												Revolving Loans at Amortized Cost Basis
As of June 30, 2024	2024		2023		2022		2021		2020		Prior				Total
Commercial and Industrial
Pass	$	1,053	$	4,567	$	1,378	$	31	$	709	$	7,402	$	20,120	$	35,260
OAEM	—		—		—		—		—		—		—		—
Substandard	—		—		417		—		—		—		277		694
Doubtful	—		—		—		—		—		—		—		—
	$	1,053	$	4,567	$	1,795	$	31	$	709	$	7,402	$	20,397	$	35,954
Current period gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Construction
Pass	$	—	$	319	$	2,637	$	—	$	195	$	—	$	175,420	$	178,571
OAEM	—		—		—		—		—		—		—		—
Substandard	—		—		—		—		—		1,091		—		1,091
Doubtful	—		—		—		—		—		—		—		—
	$	—	$	319	$	2,637	$	—	$	195	$	1,091	$	175,420	$	179,662
Current period gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Commercial – Owner Occupied
Pass	$	863	$	19,579	$	35,294	$	20,937	$	6,873	$	51,036	$	2,303	$	136,885
OAEM	—		—		—		—		—		—		—		—
Substandard	—		—		—		—		—		1,117		—		1,117
Doubtful	—		—		—		—		—		—		—		—
	$	863	$	19,579	$	35,294	$	20,937	$	6,873	$	52,153	$	2,303	$	138,002
Current period gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Commercial – Non-owner Occupied
Pass	$	25,758	$	15,818	$	75,158	$	32,396	$	24,388	$	158,602	$	1,739	$	333,859
OAEM	—		—		—		—		—		15,360		—		15,360
Substandard	—		—		—		—		249		1,857		—		2,106
Doubtful	—		—		—		—		—		—		—		—
	$	25,758	$	15,818	$	75,158	$	32,396	$	24,637	$	175,819	$	1,739	$	351,325
Current period gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Residential – 1 to 4 Family
Performing	$	20,992	$	55,594	$	113,448	$	58,170	$	31,790	$	158,536	$	3,483	$	442,013
Nonperforming	—		—		—		—		758		1,197		—		1,955
	$	20,992	$	55,594	$	113,448	$	58,170	$	32,548	$	159,733	$	3,483	$	443,968
Current period gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

17

Residential – 1 to 4 Family Investment
Performing	$	30,224	$	83,329	$	133,412	$	110,577	$	46,762	$	119,505	$	—	$	523,809
Nonperforming	—		—		—		—		—		—		—		—
	$	30,224	$	83,329	$	133,412	$	110,577	$	46,762	$	119,505	$	—	$	523,809
Current period gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Residential – Multifamily
Pass	$	997	$	5,298	$	45,801	$	25,747	$	12,020	$	37,435	$	—	$	127,298
OAEM	—		—		—		—		—		—		—		$	—
Substandard	—		—		—		—		—		—		—		$	—
Doubtful	—		—		—		—		—		—		—		—
	$	997	$	5,298	$	45,801	$	25,747	$	12,020	$	37,435	$	—	$	127,298
Current period gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Consumer
Performing	$	—	$	—	$	—	$	—	$	—	$	5,123	$	—	$	5,123
Nonperforming	—		—		—		—		—		—		—		—
	$	—	$	—	$	—	$	—	$	—	$	5,123	$	—	$	5,123
Current period gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	21	$	—	$	21

As of June 30, 2024, the Company was in the process of foreclosing on $6.4 million in loans, consisting of 12 residential 1 to 4 family loans with a principal balance of $1.9 million, two commercial - owner occupied loans with a principal balance of $1.1 million, and eight commercial - non-owner occupied loans with a principal balance of $3.3 million.

The following tables provide an analysis of loans by portfolio segment based on the credit quality indicators used to determine the allowance for credit losses, as of December 31, 2023.

(Dollars in thousands)	Term Loans Amortized Cost Basis by Origination Year												Revolving Loans at Amortized Cost Basis
As of December 31, 2023	2023		2022		2021		2020		2019		Prior				Total
Commercial and Industrial
Pass	$	4,724	$	1,269	$	87	$	759	$	598	$	7,154	$	20,148	$	34,739
OAEM	—		—		—		—		—		—		—		—
Substandard	—		435		—		—		—		—		277		712
Doubtful	—		—		—		—		—		—		—		—
	$	4,724	$	1,704	$	87	$	759	$	598	$	7,154	$	20,425	$	35,451
Current period gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Construction
Pass	$	323	$	3,335	$	4,499	$	195	$	—	$	—	$	148,113	$	156,465
OAEM	—		—		—		—		—		—		—		—
Substandard	—		—		—		—		—		1,091		—		1,091
Doubtful	—		—		—		—		—		—		—		—
	$	323	$	3,335	$	4,499	$	195	$	—	$	1,091	$	148,113	$	157,556
Current period gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

18

Commercial – Owner Occupied
Pass	$	19,842	$	36,030	$	21,536	$	7,104	$	8,346	$	45,249	$	2,518	$	140,625
OAEM	—		—		—		—		—		—		—		—
Substandard	—		—		—		—		—		1,117		—		1,117
Doubtful	—		—		—		—		—		—		—		—
	$	19,842	$	36,030	$	21,536	$	7,104	$	8,346	$	46,366	$	2,518	$	141,742
Current period gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Commercial – Non-owner Occupied
Pass	$	19,123	$	93,805	$	37,002	$	33,316	$	54,484	$	112,471	$	1,180	$	351,381
OAEM	—		—		—		—		—		15,421		—		15,421
Substandard	—		—		—		250		2,586		271		—		3,107
Doubtful	—		—		—		—		—		—		—		—
	$	19,123	$	93,805	$	37,002	$	33,566	$	57,070	$	128,163	$	1,180	$	369,909
Current period gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Residential – 1 to 4 Family
Performing	$	58,358	$	117,044	$	61,580	$	33,037	$	25,623	$	148,124	$	4,705	$	448,471
Nonperforming	155		—		—		285		771		—		—		1,211
	$	58,513	$	117,044	$	61,580	$	33,322	$	26,394	$	148,124	$	4,705	$	449,682
Current period gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Residential – 1 to 4 Family Investment
Performing	$	87,734	$	138,884	$	116,487	$	50,119	$	54,576	$	76,367	$	—	$	524,167
Nonperforming	—		—		—		—		—		—		—		—
	$	87,734	$	138,884	$	116,487	$	50,119	$	54,576	$	76,367	$	—	$	524,167
Current period gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Residential – Multifamily
Pass	$	2,292	$	23,030	$	27,006	$	12,159	$	9,989	$	28,848	$	—	$	103,324
OAEM	—		—		—		—		—		—		—		$	—
Substandard	—		—		—		—		—		—		—		$	—
Doubtful	—		—		—		—		—		—		—		—
	$	2,292	$	23,030	$	27,006	$	12,159	$	9,989	$	28,848	$	—	$	103,324
Current period gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Consumer
Performing	$	—	$	—	$	—	$	—	$	—	$	5,493	$	16	$	5,509
Nonperforming	—		—		—		—		—		—		—		—
	$	—	$	—	$	—	$	—	$	—	$	5,493	$	16	$	5,509
Current period gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

Modifications to Borrowers Experiencing Financial Difficulty

At June 30, 2024, the Company did not make any modifications to borrowers experiencing financial difficulty.

19

NOTE 5. EARNINGS PER SHARE (“EPS”)

The following tables set forth the calculation of basic and diluted EPS for the three and six-month periods ended June 30, 2024 and 2023.

	Three months ended June 30,				Six months ended June 30,
	2024		2023		2024		2023
	(Dollars in thousands except share and per share data)
Basic earnings per common share
Net income available to the Company	$	6,455	$	8,130	$	12,606	$	19,260
Less: Dividend on series B preferred stock	(5)		(7)		(11)		(14)
Net income available to common shareholders	6,450		8,123		12,595		19,246
Basic weighted-average common shares outstanding	11,962,197		11,945,424		11,960,487		11,944,794
Basic earnings per common share	$	0.54	$	0.68	$	1.05	$	1.61
Diluted earnings per common share
Net income available to common shares	$	6,450	$	8,123	$	12,595	$	19,246
Add: Dividend on series B preferred stock	5		7		11		14
Net income available to diluted common shares	6,455		8,130		12,606		19,260
Basic weighted-average common shares outstanding	11,962,197		11,945,424		11,960,487		11,944,794
Dilutive potential common shares	157,162		173,580		165,059		195,105
Diluted weighted-average common shares outstanding	12,119,359		12,119,004		12,125,546		12,139,899
Diluted earnings per common share	$	0.53	$	0.67	$	1.04	$	1.59

As of June 30, 2024 and December 31, 2023, there were 312,630 and 330,536 weighted average option shares outstanding, respectively, that were not included in the computation of diluted EPS because these shares were anti-dilutive.

NOTE 6. 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. 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.”

20

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 on a recurring basis. 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.

Investments in Available for Sale Securities:

Where quoted prices are available in an active market, securities or other assets are classified in Level 1 of the valuation hierarchy. If quoted market prices are not available for the specific security or available for sale loans, then fair values are provided by independent third-party valuation services. These valuation 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 are mortgage-backed securities.

The table below presents the balances of assets and liabilities measured at fair value on a recurring basis.

Financial Assets	Level 1		Level 2		Level 3		Total
	(Dollars in thousands)
Available for Sale Securities
As of June 30, 2024
Residential mortgage-backed securities	$	—	$	6,258	$	—	$	6,258
Total	$	—	$	6,258	$	—	$	6,258
As of December 31, 2023
Residential mortgage-backed securities	—		7,095		—		7,095
Total	$	—	$	7,095	$	—	$	7,095

For the six months ended June 30, 2024, there were no transfers between the levels within the fair value hierarchy. There were no level 3 assets or liabilities held during the three and six months ended June 30, 2024 and 2023.

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
	(Dollars in thousands)
As of June 30, 2024
Collateral-dependent loans	$	—	$	—	$	2,181	$	2,181
OREO	—		—		1,558		1,558
As of December 31, 2023
Collateral-dependent loans	$	—	$	—	$	1,655	$	1,655
OREO	—		—		1,550		1,550

21

Collateral-dependent loans are those loans that are accounted for under ASC 326, Financial Instruments - Credit Losses ("ASC 326"), in which the Bank has measured impairment generally based on the fair value of the loan’s collateral. Fair value is generally determined based upon independent third-party appraisals of the properties that collateralize the loans. These assets are generally classified as Level 3 fair values, based upon the lowest level of input that is significant to the fair value measurements.

OREO consists of real estate properties that are recorded at fair value based upon current appraised value, or agreements of sale, less estimated disposition costs using level 3 inputs. Properties are reappraised annually.

Fair Value of Financial Instruments

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

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

The following table summarizes the carrying amounts and fair values for financial instruments that are not carried at fair value at June 30, 2024 and December 31, 2023:

June 30, 2024	Carrying Amount		Fair Value
			Total		Level 1		Level 2		Level 3
	(Dollars in thousands)
Financial Assets:
Investment securities HTM	$	9,251	$	7,564	$	—	$	7,564	$	—
Loans, net	1,772,716		1,757,297		—		1,747,119		10,178
Financial Liabilities:
Time deposits	$	559,216	$	557,738	$	—	$	557,738	$	—
Borrowings	218,206		222,667		—		222,667		—

December 31, 2023	Carrying Amount		Fair Value
			Total		Level 1		Level 2		Level 3
	(Dollars in thousands)
Financial Assets:
Investment securities HTM	$	9,292	$	7,892	$	—	$	7,892	$	—
Loans, net	1,755,209		1,727,842		—		1,718,866		8,976
Financial Liabilities:
Time deposits	$	607,070	$	605,216	$	—	$	605,216	$	—
Borrowings	168,111		172,985		—		172,985		—

NOTE 7. COMMITMENTS AND CONTINGENCIES

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

22

classes of financial instruments. The Company’s exposure to the maximum possible credit risk 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 it does 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 the payment of a fee. 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. Since many of the commitments are expected to expire without being drawn upon, the total commitment amounts do not necessarily represent future cash requirements. Commitments to fund fixed-rate loans were immaterial at June 30, 2024. 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. As of June 30, 2024 and December 31, 2023, unused commitments to extend credit amounted to approximately $114.8 million and $93.8 million, respectively. At June 30, 2024 and December 31, 2023, the allowance for credit losses on off-balance sheet credit exposures was $896.0 thousand and $499 thousand, 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 June 30, 2024 and December 31, 2023, standby letters of credit with customers were $0.6 million and $1.5 million, respectively.

On June 26, 2024, the Bank entered into an agreement with the FHLBNY for a Municipal Letter of Credit ("MLOC") of $60.0 million. The MLOC is used to pledge against public deposits and the MLOC expires on September 25, 2024. There were no outstanding borrowings on the letters of credit as of June 30, 2024.

The Company also has entered into an employment contract with the President of the Company, which provides for continued payment of certain employment salary and benefits prior to the expiration date of the agreement and in the event of a change in control, as defined. The Company has also entered in Change-in-Control Severance Agreements with certain officers which provide for the payment of severance in certain circumstances following a change in control.

We provide banking services to customers that are licensed by various States to do business in the cannabis industry as growers, processors and dispensaries. Cannabis businesses are legal in these States, although they are not legal at the federal level. The U.S. Department of the Treasury’s Financial Crimes Enforcement Network (“FinCEN”) published guidelines in 2014 for financial institutions servicing state legal cannabis businesses. A financial institution that provides services to cannabis-related businesses can comply with Bank Secrecy Act (“BSA”) disclosure standards by following the FinCEN guidelines. We maintain stringent written policies and procedures related to the acceptance of such businesses and to the monitoring and maintenance of such business accounts. We conduct a significant due diligence review of the cannabis business before the business is accepted, including confirmation that the business is properly licensed by the applicable state. Throughout the relationship, we continue monitoring the business, including site visits, to ensure that the business continues to meet our stringent requirements, including maintenance of required licenses and periodic financial reviews of the business.

While we believe we are operating in compliance with the FinCEN guidelines, there can be no assurance that federal enforcement guidelines will not change. Federal prosecutors have significant discretion and there can be no assurance that the federal prosecutors will not choose to strictly enforce the federal laws governing cannabis. Any change in the Federal government’s enforcement position, could cause us to immediately cease providing banking services to the cannabis industry.

At June 30, 2024 and December 31, 2023, deposit balances from cannabis customers were approximately $142.5 million and $96.7 million, or 9.5% and 6.2% of total deposits, respectively, with three customers accounting for 66.1% and 60.6% of the total at June 30, 2024 and December 31, 2023. At June 30, 2024 and December 31, 2023, there were cannabis-related loans in the amounts of $29.5 million and $27.1 million, respectively.

23

ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Forward-Looking Statements

Throughout this report, "Parke Bancorp" and "the Company" refer to Parke Bancorp Inc., and its consolidated subsidiaries. The Company is collectively referred to as "we", "us" or "our". Parke Bank is referred to as the "Bank".

The Company may from time to time make written or oral "forward-looking statements" including statements contained in this Report and in other communications by the Company which are made in good faith pursuant to the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements, such as statements of the Company's plans, objectives, expectations, estimates and intentions, involve risks and uncertainties and 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 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 (the "Federal Reserve"), inflation, interest rate, market and monetary fluctuations; the potential adverse effects of the Consent Orders and any additional regulatory restrictions that may be imposed by banking regulators; the timely development of, and acceptance of, new products and services of the Company 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); the effect of any change in federal government enforcement of federal laws affecting the cannabis industry; technological changes; acquisitions; changes in consumer spending and saving habits; and the success of the Company at managing the risks involved in the foregoing.

Financial institutions can be affected by changing conditions in the real estate and financial markets. The effects of geopolitical instability, including the conflict between Russia and Ukraine and the war in Israel, foreign currency exchange volatility, volatility in global capital markets, inflationary pressures, and higher interest rates may meaningfully impact loan production, income levels, and the measurement of certain significant estimates such as the allowance for credit losses. Moreover, in a period of economic contraction, we may experience elevated levels of credit losses, reduced interest income, impairment of financial assets, diminished access to capital markets and other funding sources, and reduced demand for our products and services. Volatility in the housing markets, real estate values and unemployment levels results in significant write-downs of asset values by financial institutions. Our lending relationships are primarily with small to mid-sized businesses and individual consumers residing in and around southern New Jersey and Philadelphia, Pennsylvania. We focus our lending efforts primarily in three lending areas: residential mortgage loans, commercial mortgage loans, and construction loans. As a result of this geographic concentration, a significant broad-based deterioration in economic conditions in these areas could have a material adverse impact on the quality of our loan portfolio, results of operations and future growth potential.

Our operations are subject to risks and uncertainties surrounding our exposure to changes in the interest rate environment. Earnings and liquidity depend to a great extent on our interest rates. Interest rates are highly sensitive to many factors beyond our control, including competition, general economic conditions, geopolitical tensions and monetary and fiscal policies of various governmental and regulatory authorities, including the Federal Reserve. Conditions such as inflation, deflation, recession, unemployment and other factors beyond our control may also affect interest rates. The nature and timing of any changes in interest rates or general economic conditions and their effect on us cannot be controlled and are difficult to predict. If the rate of interest we pay on our interest-bearing liabilities increases more than the rate of interest we receive on our interest-earning assets, our net interest income, and therefore our earnings, could contract and be materially adversely affected. Our earnings could also be materially adversely affected if the rates on interest-earning assets fall more quickly than those on our interest-bearing liabilities. Changes in interest rates could also create competitive pressures, which could impact our liquidity position.

Changes in interest rates also can affect our ability to originate loans, our ability to obtain and retain deposits, and the value of interest-earning assets, and the ability to realize gains from the sale of such assets, which could all negatively impact shareholder's equity and regulatory capital.

The Company cautions that the foregoing list of important factors is not exclusive. The Company also cautions readers not to place undue reliance on these forward-looking statements, which reflect management's analysis only as of the date on which they are given. The Company is not obligated to publicly revise or update these forward-looking statements to reflect events or circumstances that arise after any such date.

24

Overview

The following discussion provides information about our results of operations, financial condition, liquidity and asset quality. We intend that this information facilitates your understanding and assessment of significant changes and trends related to our financial condition and results of operations. You should read this section in conjunction with "Management's Discussion and Analysis of Financial Condition and Results of Operations" included in our Annual Report on Form 10-K for the fiscal year ended December 31, 2023.

We are a bank holding company and are headquartered in Washington Township, New Jersey. Through the Bank, we provide personal and business financial services to individuals and small to mid-sized businesses primarily in New Jersey and Pennsylvania. The Bank has branches in Galloway Township, Northfield, Washington Township, Collingswood, New Jersey and Philadelphia, Pennsylvania, and a loan office in Philadelphia, Pennsylvania. The vast majority of our revenue and income is currently generated through the Bank.

We manage our Company for the long term. We are focused on the fundamentals of growing customers, loans, deposits and revenue and improving profitability, while investing for the future and managing risk, expenses and capital. We continue to invest in our products, markets and brand, and embrace our commitments to our customers, shareholders, employees and the communities where we do business. Our approach is concentrated on organically growing and deepening client relationships across our businesses that meet our risk/return measures.

We focus on small to mid-sized business and retail customers and offer a range of loan products, deposits services, and other financial products through our retail branches and other channels. The Company's results of operations are dependent primarily on its net interest income, which is the difference between the interest income earned on its interest earning-assets and the interest expense paid on its interest-bearing liabilities. In our operations, we have three major lines of lending: residential real estate mortgage, commercial real estate mortgage, and construction lending. Our interest income is primarily generated from our lending and investment activities. Our deposit products include checking, savings, money market accounts, and certificates of deposit. The majority of our deposit accounts are obtained through our retail banking business, which provides us with low cost funding to grow our lending efforts. The Company also generates income from loan and deposit fees and other non-interest related activities. The Company's non-interest expense primarily consists of employee compensation, administration, and other operating expenses.

At June 30, 2024, we had total assets of $2.03 billion, and total equity of $292.8 million. Net income available to common shareholders for the three and six months ended June 30, 2024 was $6.5 million and $12.6 million, respectively.

Results of Operations

Three Months Ended June 30, 2024 Compared to Three Months Ended June 30, 2023

Net Income: Our net income available to common shareholders for the second quarter of 2024 decreased $1.7 million, or 20.6%, to $6.5 million, compared to $8.1 million for the same period last year. Earnings per share were $0.54 per basic common share and $0.53 per diluted common share for the second quarter of 2024, compared to $0.68 per basic common share and $0.67 per diluted common share for the same period last year. The decrease was primarily due to higher interest expense, and a decrease in non-interest income.

Net Interest Income: Our net interest income was $14.3 million for the second quarter of 2024 compared to $15.9 million for the second quarter of 2023, a decrease of $1.6 million, or 9.8%. Net interest income decreased during the three months ended June 30, 2024, primarily due to an increase in interest expense on deposits and borrowings, partially offset by an increase in interest and fees on loans. Interest income increased $2.9 million, or 10.7%, during the three months ended June 30, 2024 as compared to the same period in the prior year. The increase in interest income was primarily due to an increase of $3.0 million in interest and fees on loans, due to higher loan balances and market interest rates, partially offset by a $0.1 million decrease in interest on deposits with banks. The increase in interest income was offset by an increase in interest expense during the three months ended June 30, 2024 of $4.5 million, or 39.3%, primarily due to an increase in market interest rates on deposits and the overall mix of deposits of $4.6 million, and increase in market interest rates.

25

Provision for credit losses: For the three months ended June 30, 2024, the provision for credit losses was $0.5 million, compared to a provision of $0.5 million for the three months ended June 30, 2023. The provision expense for the three months ended June 30, 2024, was primarily driven by an increase in the construction loan portfolio balance from the quarter ended March 31, 2024, which carries a higher loss factor than other loan portfolios.

Non-interest Income: Our non-interest income was $1.2 million for the three months ended June 30, 2024, a decrease of $0.4 million, compared to $1.6 million for the three months ended June 30, 2023. The decrease is primarily attributable to a decrease in service fees on deposit accounts of $0.6 million due to a decrease in cannabis deposit fee income, partially offset by an increase in other non-interest income of $0.2 million.

Non-interest Expense: Our non-interest expense decreased $0.1 million, or 2.1%, to $6.2 million for the three months ended June 30, 2024, from $6.4 million for the three months ended June 30, 2023. The decrease in non-interest expense was primarily due to a decrease in other operating expense of $0.3 million, and data processing expense of $0.1 million, partially offset by an increase in compensation and benefits of $0.1 million.

Income Tax: Income tax expense was $2.3 million on income before taxes of $8.8 million for the three months ended June 30, 2024, resulting in an effective tax rate of 26.6%, compared to income tax expense of $2.5 million on income before taxes of $10.6 million for the same period of 2023, resulting in an effective tax rate of 23.2%.

Six Months Ended June 30, 2024 Compared to Six Months Ended June 30, 2023

Net income: Our net income available to common shareholders for the six months ended June 30, 2024 decreased $6.7 million, or 34.6%, to $12.6 million compared to $19.2 million for the six months ended June 30, 2023. Earnings per share were $1.05 per basic common share and $1.04 per diluted common share for the six months ended June 30, 2024 compared to $1.61 per basic common share and $1.59 per diluted common share for the same period last year. The decrease in net income available to common shareholders primarily resulted from an increase in interest expense of $11.0 million, an increase in provision for credit losses of $2.6 million, and a decrease in non-interest income of $1.1 million, partially offset by an increase in interest income of $6.4 million.

Net interest income: Our net interest income decreased $4.6 million, or 14.1%, to $28.4 million for the six months ended June 30, 2024, compared to $33.0 million for the same period last year. Interest income for the six months ended June 30, 2024, increased $6.4 million to $59.7 million, or 12.0%, from $53.3 million for the same period of 2023. The increase in interest income was primarily due to an increase in interest and fees on loans of $6.5 million, primarily due to an increase in market interest rates and balances outstanding, partially offset by a decrease in interest earned on Federal Reserve Bank ("FRB") deposits of $0.2 million. Interest expense increased $11.0 million, or 54.4%, for the six months ended June 30, 2024, compared to the same period in 2023, primarily due to an increase in interest paid on deposits of $10.5 million, or 62.9%, primarily due to an increase in market interest rates and a shift in deposit mix. Further contributing to the increase in interest expense was an increase in interest on borrowings of $0.5 million, or 15.1%, due to an increase in borrowing levels and higher market interest rates.

Provision for credit losses: The provision for credit losses was $0.7 million for the six months ended June 30, 2024, compared to a recovery of provision for credit losses of $1.9 million for the six months ended June 30, 2023. The provision for credit losses for the six months ended June 30, 2024 was primarily driven by an increase in the outstanding loan balance of $17.8 million from the balance at December 31, 2023, specifically in the construction 1 - 4 family, and multi-family portfolios. The provision recovery of $1.9 million during the same period in 2023 was primarily related to decreases in loss factors related to the construction, commercial owner occupied, and residential 1 to 4 family investment portfolios. For more information about our provision for credit losses and our allowance for loan and lease losses and loss experience, see “Financial Condition-Allowance for Loan and Lease Losses” below and Note 4 - Loans And Allowance For Credit Losses on Loans to the unaudited consolidated financial statements.

Non-interest income: Our non-interest income was $2.3 million for the six months ended June 30, 2024, a decrease of $1.1 million, or 33.0%, compared to $3.4 million for the same period last year. The decrease is primarily attributable to a decrease in service fees on deposit accounts of $1.4 million, partially offset by an increase in other income of $0.3 million. Fee income for the six months ended June 30, 2024 from commercial deposit accounts of depositors who do business in the cannabis-related industry totaled $0.5 million, compared to $2.0 million for the same period last year. Fee income is included in service fees on deposit accounts in the accompanying Consolidated Statements of Income.

Non-interest expense: Our non-interest expense decreased $0.4 million to $12.8 million for the six months ended June 30, 2024, from $13.1 million for the six months ended June 30, 2023. The decrease in non-interest expense was primarily due to a decrease

26

in compensation and benefits of $0.3 million, and a decrease in other operating expense of $0.3 million, partially offset by an increase in OREO expense of $0.2 million.

Income Tax: Income tax expense was $4.6 million on income before taxes of $17.2 million for the six months ended June 30, 2024, resulting in an effective tax rate of 26.6%, compared to income tax expense of $5.9 million on income before taxes of $25.2 million for the same period of 2023, resulting in an effective tax rate of 23.5%.

Net Interest Income

Net interest income is the interest earned on investment securities, loans and other interest-earning assets minus the interest paid on deposits, short-term borrowings and long-term debt. The net interest margin is the average yield of net interest income on average earning assets. Net interest income and the net interest margin in any one period can be significantly affected by a variety of factors including the mix and overall size of our earning assets portfolio and the cost of funding those assets.

The following tables presents the average daily balances of assets, liabilities and equity and the respective interest earned or paid on interest-earning assets and interest-bearing liabilities, as well as average annualized rates, for the periods indicated.

	For the Three Months Ended June 30,
	2024						2023
	Average Balance		Interest Income/ Expense		Yield/ Cost		Average Balance		Interest Income/ Expense		Yield/ Cost
	(Dollars in thousands)
Assets
Loans*	$	1,781,492	$	28,732	6.49	%	$	1,770,151	$	25,763	5.84	%
Investment securities**	23,529		248		4.24	%	28,317		227		3.22	%
Interest bearing deposits	92,967		1,209		5.23	%	106,170		1,277		4.82	%
Total interest-earning assets	1,897,988		30,189		6.40	%	1,904,638		27,267		5.74	%
Other assets	65,383						79,378
Allowance for credit losses	(31,974)						(31,514)
Total assets	$	1,931,397					$	1,952,502
Liabilities and Shareholders’ Equity
Interest bearing deposits:
Checking	$	65,640	$	124	0.76	%	$	75,527	$	117	0.62	%
Money markets	603,216		7,322		4.88	%	339,266		3,310		3.91	%
Savings	69,228		199		1.16	%	139,664		445		1.28	%
Time deposits	415,179		4,316		4.18	%	509,816		3,861		3.04	%
Brokered certificates of deposit	125,983		1,723		5.50	%	111,682		1,346		4.83	%
Total interest-bearing deposits	1,279,246		13,684		4.30	%	1,175,955		9,079		3.10	%
Borrowings	157,132		2,193		5.61	%	215,520		2,321		4.32	%
Total interest-bearing liabilities	1,436,378		15,877		4.45	%	1,391,475		11,400		3.29	%
Non-interest bearing deposits	184,964						266,531
Other liabilities	17,635						16,516
Total non-interest bearing liabilities	202,599						283,047
Equity	292,420						277,980
Total liabilities and shareholders’ equity	$	1,931,397					$	1,952,502
Net interest income			$	14,312					$	15,867
Interest rate spread					1.95	%					2.45	%
Net interest margin					3.03	%					3.34	%

*The average balance of loans includes loans on nonaccrual.

**    Includes balances of FHLBNY and ACBB stock.

27

	For the Six Months Ended June 30,
	2024						2023
	Average Balance		Interest Income/ Expense		Yield/ Cost		Average Balance		Interest Income/ Expense		Yield/ Cost
	(Dollars in thousands)
Assets
Loans*	$	1,787,114	$	56,815	6.39	%	$	1,766,704	$	50,307	5.74	%
Investment securities**	23,322		497		4.29	%	26,883		437		3.28	%
Interest bearing deposits	90,434		2,354		5.23	%	111,619		2,547		4.60	%
Total interest-earning assets	1,900,870		59,666		6.31	%	1,905,206		53,291		5.64	%
Other assets	67,900						79,744
Allowance for credit losses	(32,137)						(31,677)
Total assets	$	1,936,633					$	1,953,273
Liabilities and Shareholders’ Equity
Interest bearing deposits:
Checking	$	68,956	$	390	1.14	%	$	79,381	$	247	0.63	%
Money markets	582,697		14,128		4.88	%	337,504		6,068		3.63	%
Savings	73,714		419		1.14	%	157,035		907		1.16	%
Time deposits	423,530		8,447		4.01	%	504,891		6,792		2.71	%
Brokered certificates of deposit	137,729		3,757		5.49	%	112,522		2,647		4.74	%
Total interest-bearing deposits	1,286,626		27,141		4.24	%	1,191,333		16,661		2.82	%
Borrowings	148,619		4,159		5.63	%	179,471		3,615		4.06	%
Total interest-bearing liabilities	1,435,245		31,300		4.39	%	1,370,804		20,276		2.98	%
Non-interest bearing deposits	194,021						291,310
Other liabilities	17,247						16,425
Total non-interest bearing liabilities	211,268						307,735
Equity	290,120						274,734
Total liabilities and shareholders’ equity	$	1,936,633					$	1,953,273
Net interest income			$	28,366					$	33,015
Interest rate spread					1.92	%					2.66	%
Net interest margin					3.00	%					3.49	%

*The average balance of loans includes loans on nonaccrual.

**    Includes balances of FHLBNY and ACBB stock.

Financial Condition

General

At June 30, 2024, the Company’s total assets were $2.03 billion, an increase of $3.6 million, or 0.2%, from December 31, 2023. The increase in total assets was primarily attributable to an increase in loans receivable and an increase in restricted stock, partially offset by a decrease in cash and cash equivalents and a decrease in other assets. Loans increased $17.8 million, primarily due to increases in the construction and multi-family portfolios, partially offset by a decrease in the CRE non-owner occupied portfolio. Restricted stock increased $2.3 million due to an increase in FHLBNY advances. Cash and cash equivalents decreased $12.7 million, or 7.0%, primarily due to the increase in loans, and the decrease in deposits, partially offset by an increase in FHLBNY borrowings. Other assets decreased $3.3 million during the three months ended June 30, 2024, to $7.2 million at June 30, 2024, from $10.5 million at December 31, 2023, primarily driven by a decrease in prepaid taxes.

Total liabilities were $1.73 billion at June 30, 2024. This represented a $4.8 million, or 0.3%, decrease, from $1.74 billion at December 31, 2023. The decrease in total liabilities was primarily due to a decrease in deposits of $56.4 million, or 3.6%, to $1.50 billion at June 30, 2024, from $1.55 billion at December 31, 2023, partially offset by an increase in borrowings of $50.0 million, or 40.0%, to $218.2 million at June 30, 2024. The decrease in deposits was primarily due to a decrease in non-interest demand deposits of $33.4 million, a decrease in savings deposits of $16.4 million, and a decrease in time deposits of $44.7 million, partially offset by an increase in money market deposits of $42.8 million. The increase in borrowings was due to additional FHLBNY advances.

28

Total equity was $292.8 million and $284.3 million at June 30, 2024 and December 31, 2023, respectively, an increase of $8.5 million from December 31, 2023. The increase was primarily due to the retention of earnings, partially offset by the payment of $4.3 million of cash dividends.

The following table presents certain key condensed balance sheet data as of June 30, 2024 and December 31, 2023:

	June 30, 2024		December 31, 2023		Change		% Change
	(Dollars in thousands)
Cash and cash equivalents	$	167,678	$	180,376	$	(12,698)	(7.0)	%
Investment securities	15,509		16,387		(878)		(5.4)	%
Loans, net of unearned income	1,805,141		1,787,340		17,801		1.0	%
Allowance for credit losses	(32,425)		(32,131)		(294)		0.9	%
Total assets	2,027,138		2,023,500		3,638		0.2	%
Total deposits	1,496,441		1,552,827		(56,386)		(3.6)	%
FHLBNY borrowings	175,000		125,000		50,000		40.0	%
Subordinated debt	43,206		43,111		95		0.2	%
Total liabilities	1,734,338		1,739,183		(4,845)		(0.3)	%
Total equity	292,800		284,317		8,483		3.0	%
Total liabilities and equity	2,027,138		2,023,500		3,638		0.2	%

Cash and cash equivalents

Cash and cash equivalents decreased $12.7 million to $167.7 million at June 30, 2024 from $180.4 million at December 31, 2023, a decrease of 7.0%. The decrease was primarily due to an increase in loans, and a decrease in deposits, partially offset by an increase in borrowings.

Investment securities

Total investment securities decreased to $15.5 million at June 30, 2024, from $16.4 million at December 31, 2023, a decrease of $0.9 million or 5.4%. The decrease was attributed to normal pay downs. For detailed information on the composition and maturity distribution of our investment portfolio, see NOTE 3 - Investment Securities in the notes to the unaudited consolidated financial statements.

Loans

Our lending relationships are primarily with small to mid-sized businesses and individual consumers residing in and around Southern New Jersey and Philadelphia, Pennsylvania. We have also expanded our lending footprint in other areas, including New York and South Carolina. We focus our lending efforts primarily in three lending areas: residential mortgage loans, commercial mortgage loans, and construction loans.

We originate residential mortgage loans with adjustable and fixed-rates that are secured by 1- 4 family and multifamily residential properties. These loans are generally underwritten under terms, conditions and documentation acceptable to the secondary mortgage market. A substantial majority of such loans can be pledged for potential borrowings.

We originate commercial real estate loans that are secured by commercial real estate properties that are owner and non-owner occupied real estate properties. These loans are typically larger in dollar size and are primarily secured by office buildings, retail buildings, warehouses and general purpose business space. The commercial mortgage loans generally have maturities of twenty years, but re-price within five years.

The construction loans we originate provide real estate acquisition, development and construction funds to individuals and real estate developers. The loans are secured by the properties under development. The construction loan funds are disbursed periodically at pre-specified stages of completion.

29

We also originate commercial and industrial loans, which provide liquidity to businesses in the form of lines of credit and may be secured by accounts receivable, inventory, equipment or other assets. In addition, we have a consumer loan portfolio which provides loans to individual borrowers.

Loans receivable: Loans receivable increased to $1.81 billion at June 30, 2024, from $1.79 billion at December 31, 2023, an increase of $17.8 million, or 1.0%. The increase was primarily due to increases in the construction, and Residential - Multifamily loan portfolios, partially offset by a decrease in the Commercial - Non-Owner Occupied loan portfolio. Loans receivable as of June 30, 2024 and December 31, 2023, consisted of the following:

	June 30, 2024				December 31, 2023
	Amount		Percentage of Loans to total Loans		Amount		Percentage of Loans to total Loans		$ Change		% Change
	(Dollars in thousands)
Commercial and Industrial	$	35,954	2.0	%	$	35,451	2.0	%	$	503	1.4	%
Construction	179,662		10.0	%	157,556		8.8	%	22,106		14.0	%
Real Estate Mortgage:
Commercial – Owner Occupied	138,002		7.6	%	141,742		7.9	%	(3,740)		(2.6)	%
Commercial – Non-owner Occupied	351,325		19.5	%	369,909		20.7	%	(18,584)		(5.0)	%
Residential – 1 to 4 Family	443,968		24.6	%	449,682		25.2	%	(5,714)		(1.3)	%
Residential – 1 to 4 Family Investment	523,809		29.0	%	524,167		29.3	%	(358)		(0.1)	%
Residential – Multifamily	127,298		7.1	%	103,324		5.8	%	23,974		23.2	%
Consumer	5,123		0.3	%	5,509		0.3	%	(386)		(7.0)	%
Total Loans	$	1,805,141	100.0	%	$	1,787,340	100.0	%	$	17,801	1.0	%

Deposits

At June 30, 2024, total deposits decreased to $1.50 billion from $1.55 billion at December 31, 2023, a decrease of $56.4 million, or 3.6%. The decrease in deposits was primarily due to a decrease in noninterest-bearing deposits, savings deposits, and time deposit balances, partially offset by an increase in money market deposits balances. The decrease in the noninterest-bearing deposit balance was primarily driven by a $25.0 million decrease in our cannabis checking account, as well as a $9.6 million decrease in our business checking accounts. The decrease in the savings deposits was primarily due to a $12.3 million decrease in our preferred savings accounts. The decrease in our time deposits was primarily due to $34.8 million decrease in our 13 and 21 months CD promotional accounts, and an $8.0 million decrease in brokered time deposits. The increase in our money market deposits was primarily due to a $138.4 million increase in our premier money market accounts, $60.0 million of which was cannabis deposits, partially offset by a $75.1 million decrease in brokered money market accounts.

	June 30,		December 31,
	2024		2023		$ Change		% Change
	(Dollars in thousands)
Noninterest-bearing	$	198,761	$	232,189	$	(33,428)	(14.4)	%
Interest-bearing
Checking	61,534		63,017		(1,483)		(2.4)	%
Savings	67,089		83,470		(16,381)		(19.6)	%
Money market	609,841		567,080		42,761		7.5	%
Time deposits	559,216		607,071		(47,855)		(7.9)	%
Total deposits	$	1,496,441	$	1,552,827	$	(56,386)	(3.6)	%
Estimated uninsured deposits	$	500,988	$	622,966	$	(121,978)	(19.6)	%

30

Borrowings

Total borrowings were $218.2 million at June 30, 2024 and $168.1 million at December 31, 2023. The increase in borrowings is due to an increase of $50.0 million in FHLBNY advances. At June 30, 2024, $155.0 million of the outstanding FHLBNY advances have short-term maturities.

Equity

Total equity increased to $292.8 million at June 30, 2024 from $284.3 million at December 31, 2023, an increase of $8.5 million, or 3.0%, primarily due to the retention of earnings from the period, partially offset by the payment of $4.3 million in cash dividends.

Liquidity and Capital Resources

Liquidity is a measure of our ability to generate cash to support asset growth, meet deposit withdrawals, satisfy other contractual obligations, and otherwise operate on an ongoing basis. At June 30, 2024, our cash position was $167.7 million. We invest cash that is in excess of our immediate operating needs primarily in our interest-bearing account at the Federal Reserve.

Our primary source of funding has been deposits. Funds from other operations, financing arrangements, investment securities available-for-sale also provide significant sources of funding. The Company seeks to rely primarily on core deposits from customers to provide stable and cost-effective sources of funding to support loan growth. We focus on customer service which we believe has resulted in a history of customer loyalty. Stability, low cost and customer loyalty comprise key characteristics of core deposits.

We also use brokered deposits as a funding source. The Bank joined the IntraFi Financial Network to secure an additional alternative funding source. IntraFi provides the Bank an additional source of external funds through their weekly CDARS® settlement process, as well as their ICS® money market product. As of June 30, 2024, the Company had $72.2 million of brokered deposits sourced from IntraFi. Additionally, we have access to other brokered deposit funding sources that we utilize as a source of additional liquidity. During the 2nd quarter of 2024, we entered into relationships with Wells Fargo and Piper Sandler to obtain brokered deposits, and as of June 30, 2024, the Company had $90.3 million sourced from these broker relationships. While deposit accounts comprise the vast majority of our funding needs, we maintain secured borrowing lines with the FHLBNY. As of June 30, 2024, the Company had lines of credit with the FHLBNY of $1.04 billion, of which $175.0 million was outstanding, and an additional $60.0 million from a letter of credit for securing public funds. The remaining borrowing capacity was $804.5 million at June 30, 2024.

We had outstanding loan commitments of $114.8 million at June 30, 2024. Our loan commitments are normally originated with the full amount of collateral. 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 funding requirements for such commitments occur on a measured basis over time and would be funded by normal deposit growth.

The following is a discussion of our cash flows for the six months ended June 30, 2024 and 2023.

Cash provided by operating activities was $17.2 million in the six months ended June 30, 2024, compared to $14.7 million for the same period in the prior year. The increase in operating cash flow was primarily due to the decrease in accrued interest receivable and other assets, and the increase in provision for credit losses, partially offset by the decrease in net income.

Cash used in investing activities was $19.3 million in the six months ended June 30, 2024, compared to cash used in investing activities of $38.5 million in the same period last year. The decrease in cash used in the investing activities during the six months ended June 30, 2024, was primarily due to the decrease in cash outflow from the origination of loans, and the redemption of restricted stock, during the period.

Cash used in financing activities was $10.6 million in the six months ended June 30, 2024, compared to cash used in financing activities of $20.9 million in the same period last year. The decrease in cash used in financing activities during the six months ended June 30, 2024, was primarily due to lower decrease in noninterest-bearing deposits and interest-bearing deposits, and the

31

increase in FHLBNY short-term borrowings, partially offset by the decrease in FHLBNY long-term borrowings, and the decrease in Federal Reserve short-term borrowings.

Capital Adequacy

We utilize a comprehensive process for assessing the Company’s overall capital adequacy. We actively review our capital strategies in light of current and anticipated business risks, future growth opportunities, industry standards, and compliance with regulatory requirements. The assessment of overall capital adequacy depends on a variety of factors, including asset quality, liquidity, earnings stability, competitive forces, economic conditions, and strength of management. Our objective is to maintain capital at an amount commensurate with our risk profile and risk tolerance objectives, and to meet both regulatory and market expectations. We primarily manage our capital through the retention of earnings. We also use other means to manage our capital. Total equity increased $8.5 million at June 30, 2024, from December 31, 2023, primarily from the Company’s net income of $12.6 million for the period, net of common and preferred stock dividends of $4.3 million.

Banks and bank holding companies are subject to various regulatory capital requirements administered by federal banking agencies. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Bank and the Company must meet specific capital guidelines that involve quantitative measures of their assets, liabilities and certain off-balance sheet items, as calculated under the regulatory accounting practices. The capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings and other factors. Prompt corrective action provisions are not applicable to bank holding companies. Failure to meet minimum capital requirements can result in regulatory actions.

Under the capital rules issued by the Federal banking agencies, the Company and the Bank elected to exclude the effects of certain Accumulated Other Comprehensive Income (“AOCI”) items from its regulatory capital calculation. At June 30, 2024, the Bank and the Company were both considered “well capitalized”.

The following table presents the tier 1 regulatory capital leverage ratios of the Company and the Bank at June 30, 2024:

	Amount		Ratio		Amount		Ratio
	(Dollars in thousands except ratios)
	Company				Parke Bank
Tier 1 leverage	$	306,283	15.86	%	$	334,969	17.35	%

Critical Accounting Policies

The Company’s accounting policies are more fully described in Note 1 of the Consolidated Financial Statements included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2023. As disclosed in Note 1, the preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions about future events that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ significantly from those estimates. The Company believes that the following discussion addresses the Company’s most critical accounting policies, which are those that are most important to the portrayal of the Company’s financial condition and results of operations and require management’s most difficult, subjective and complex judgments.

Allowance for Credit Losses: Our allowances for credit losses represents management's best estimate of probable losses inherent in our investment and loan portfolios, excluding those loans accounted for under fair value. Our process for determining the allowance for credit losses is discussed in Note 1 to the Consolidated Financial Statements included in the Company's Annual Report on Form 10-K.

Our determination of the allowance for credit losses is based on periodic evaluations of the loan and lease portfolios and other relevant factors, broken down into vintage based on year of origination. These critical estimates include significant use of our own historical data and other qualitative, and quantitative data. These evaluations are inherently subjective, as they require material estimates and may be susceptible to significant change. Our allowance for credit losses is comprised of two components, a specific allowance and a general calculation. A specific allowance is calculated for loans and leases that do not share similar risk characteristics with other financial assets, and include collateral dependent loans. A loan is considered to be collateral dependent when foreclosure of the underlying collateral is probable. Parke has elected to apply the practical expedient to measure expected credit losses of a collateral dependent asset using the fair value of the collateral, less any estimated costs to sell, when foreclosure is not probable but repayment of the loan is expected to be provided substantially through the operation or sale of the collateral, and the borrower is experiencing financial difficulty. The general based component covers loans and leases on which there are

32

expected credit losses that are not yet individually identifiable. The allowance calculation and determination process is dependent on the use of key assumptions. Key reserve assumptions and estimation processes react to and are influenced by observed changes in loan portfolio performance experience, the financial strength of the borrower, projected industry outlook, and economic conditions.

The process of determining the level of the allowance for credit losses requires a high degree of judgment. To the extent actual outcomes differ from our estimates, additional provision for loan and lease losses may be required that would reduce future earnings.

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

Not applicable

ITEM 4. CONTROLS AND PROCEDURES

The Company’s management evaluated, with the participation of the Company’s Chief Executive Officer and Chief Financial Officer, the effectiveness of the Company’s disclosure controls and procedures, (as defined in Rule 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934, (the "Exchange Act")), as of the end of the period covered by this report. Based on that evaluation, the Chief Executive Officer and the Chief Financial Officer concluded that the Company’s disclosure controls and procedures are effective to ensure that information required to be disclosed by the Company in the reports that it files or submits under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission’s (“SEC”) rules and forms.

There were no changes in the Company's internal control over financial reporting that occurred during the Company's last fiscal quarter that have materially affected, or are reasonably likely to materially affect, the Company's internal control over financial reporting.

PART II. OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS

Absecon Gardens Condominium Association v. Parke Bank Matter

Absecon Gardens Condominium Association v. Parke Bank, One Mechanic Street, et al, Superior Court of New Jersey, Law Division, Atlantic County, Docket No. ATL-L-2321-21. The Company is the successor to the interests of the developer of the Absecon Gardens Condominium project in Absecon NJ. Some of the unit owners have suggested that the Company is responsible for contributions and/or repair for alleged damages purportedly relating to construction. The owners filed a Complaint, alleging that the damages total approximately $1.7 million. The matter is in the early stages of discovery so it is difficult to determine whether that amount accurately reflects the claimed damages, or whether the Company is in any way culpable for the damages. At this time it is too early to predict whether an unfavorable outcome will result. The Company is vigorously defending this matter. 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.

Mori Restaurant LLC v. Parke Bank Matter

On May 20, 2014, Parke Bank (the "Bank") loaned Voorhees Diner Corporation ("VDC") the original principal sum of $1.0 million for purposes of tenant fit out, and operation, of the Voorhees Diner situated at 320 Route 73, Voorhees, New Jersey 08043. VDC leased the Diner property under that certain Lease with Mori Restaurant LLC ("Mori") dated May 20, 2014. In connection with the loan from the Bank and as security therefor, VDC pledged its leasehold interest to the Bank. On March 6, 2015, the loan was modified, and the principal amount of the loan was increased to $1.4 million. On January 8, 2020, the Bank declared VDC in default of its loan obligations. Judgment was entered against VDC and in favor of the Bank, and the court appointed Alan I. Gould, Esquire, as the Receiver for the Voorhees Diner Corporation. Mr. Gould subsequently caused VDC's leasehold interest in the Diner property to be sold at sheriffs sale. The Bank's REO subsidiary, 320 Route 73 LLC, was the successful bidder and took title thereto. Mori Restaurant has filed counterclaims against 320 Route 73 LLC and the Bank for rent

33

allegedly accruing due during the period that the Receiver was in possession of the premises. As to all of Mori Restaurant’s claims, the Bank defendants’ primary, but not exclusive, defense in this matter is that, pursuant to that certain Fee Owner Consent executed by and between Mori Restaurant and the Bank, in November 2014, the lease between VDC and Mori Restaurant was terminated as a matter of law and neither the Bank nor 320 Route 73 LLC have liability to Mori Restaurant under the lease or otherwise. The Bank believes this suit is without merit, denies any and all liability and intends to vigorously defend against this matter.

Other than the foregoing, there were no material pending legal proceedings, other than ordinary routine litigation incidental to the business, to which the Company or any of its subsidiaries is a party or of which any of their property is the subject.

ITEM 1A. RISK FACTORS

Not applicable.

ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

(a)    Unregistered Sales of Equity Securities. Not Applicable.

(b)    Use of Proceeds. Not Applicable.

(c)    Issuer Purchases of Equity Securities. There were no repurchases of our common stock during the three months ended June 30, 2024.

ITEM 3. DEFAULTS UPON SENIOR SECURITIES

None.

ITEM 4. MINE SAFETY DISCLOSURES

Not applicable.

ITEM 5. OTHER INFORMATION

None.

34

ITEM 6. EXHIBITS

3.1	Certificate of Incorporation of Parke Bancorp, Inc. (1)
3.2	Bylaws of Parke Bancorp, Inc. (2)
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. (4)
31.1	Certification of CEO required by Rule 13a-14(a).
31.2	Certification of CFO required by Rule 13a-14(a).
32	Certification required by 18 U.S.C. §1350.
101	The following materials from the Company’s Form 10-Q for the quarter ended June 30, 2024, formatted in Inline XBRL (Extensible Business Reporting Language): (i) Consolidated Balance Sheets; (ii) Consolidated Statements of Income; (iii) Consolidated Statements of Comprehensive Income; (iv) Consolidated Statements of Equity; (v) Consolidated Statements of Cash Flows; and (vi) Notes to Consolidated Financial Statements.
101.INS	Inline XBRL Instance Document (The instance document does not appear in the interactive data file because its XBRL tags are embedded within the inline XBRL document)
101.SCH	Inline XBRL Taxonomy Extension Schema Document
101.CAL	Inline XBRL Taxonomy Extension Calculation Linkbase Document
101.DEF	Inline XBRL Taxonomy Extension Definition Linkbase Document
101.LAB	Inline XBRL Taxonomy Extension Labels Linkbase Document
101.PRE	Inline XBRL Taxonomy Extension Presentation Linkbase Document
104	Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101)

(1) Incorporated by Reference to Exhibit 3.1 to the Company’s Registration Statement on Form S-4 filed with the SEC on January 31, 2005 (File No. 333-122406).

(2) Incorporated by Reference to Exhibit 3.2 to the Company’s Annual Report on Form 10-K filed with the SEC on March 31, 2021.

(3) Incorporated by Reference to Exhibit 3.1 to the Company’s Current Report on Form 8-K filed with the SEC on December 24, 2013.

(4) Incorporated by Reference to Exhibit 4.1 to the Company's Registration Statement on Form S-4 filed with the SEC on January 31, 2005 (File No. 333-122406).

35

SIGNATURES

Pursuant to the requirements 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.
Date:	August 7, 2024	/s/ Vito S. Pantilione
		Vito S. Pantilione
		President and Chief Executive Officer (Principal Executive Officer)
Date:	August 7, 2024	/s/ Jonathan D. Hill
		Jonathan D. Hill
		Senior Vice President and Chief Financial Officer (Principal Accounting Officer)

36