Parke Bancorp, Inc. (PKBK) Bundle
A Brief History of H3 Company
The H3 Company has shown significant growth and adaptation in the financial landscape leading up to 2024. Throughout this period, the company has navigated various economic challenges, leveraging its strengths in customer service and diversified financial products.
Financial Performance Overview
As of September 30, 2024, H3 Company reported a net income available to common shareholders of $7.5 million for the third quarter, marking a substantial increase of $6.5 million, or 634.1%, compared to $1.0 million in the same quarter of the previous year. Earnings per share (EPS) were $0.63 per basic common share and $0.62 per diluted common share for Q3 2024, compared to $0.09 and $0.08, respectively, for Q3 2023.
Key Financial Metrics
| Metric | Q3 2024 | Q3 2023 | Change | % Change |
|---|---|---|---|---|
| Net Income | $7.5 million | $1.0 million | $6.5 million | 634.1% |
| EPS (Basic) | $0.63 | $0.09 | $0.54 | 600% |
| EPS (Diluted) | $0.62 | $0.08 | $0.54 | 675% |
Income Statement Highlights
For the nine months ended September 30, 2024, H3 Company reported a net income of $20.1 million, a slight decrease of $0.2 million, or 0.8%, compared to $20.3 million for the same period in 2023. The decrease in net income was primarily due to lower net interest income and an increase in provision for credit losses.
Balance Sheet Data
| Item | September 30, 2024 | December 31, 2023 | Change | % Change |
|---|---|---|---|---|
| Total Assets | $2.07 billion | $2.03 billion | $41.9 million | 2.1% |
| Total Deposits | $1.56 billion | $1.55 billion | $6.1 million | 0.4% |
| Total Equity | $296.5 million | $284.3 million | $12.1 million | 4.3% |
Loan Portfolio Overview
As of September 30, 2024, H3 Company's total loans receivable amounted to $1.84 billion, an increase of $52.6 million, or 2.9%, from $1.79 billion at the end of 2023. The growth in the loan portfolio was driven by increases in construction, multi-family, and commercial real estate owner-occupied loans.
| Loan Type | September 30, 2024 (in thousands) | December 31, 2023 (in thousands) | Change | % Change |
|---|---|---|---|---|
| Commercial and Industrial | $34,812 | $35,451 | ($639) | (1.8%) |
| Construction | $176,534 | $157,556 | $18,978 | 12.0% |
| Residential – 1 to 4 Family | $452,723 | $449,682 | $3,041 | 0.7% |
| Residential – Multifamily | $137,282 | $103,324 | $33,958 | 32.9% |
Market Position and Future Outlook
H3 Company continues to focus on expanding its market presence and enhancing its service offerings. The company has strategically increased its brokered time deposits and diversified its loan portfolio to mitigate risks associated with market fluctuations. The management remains optimistic about maintaining growth through innovation and customer-centric strategies.
A Who Owns Parke Bancorp, Inc. (PKBK)
Ownership Structure
As of 2024, Parke Bancorp, Inc. (PKBK) has a diverse ownership structure consisting of institutional investors, individual shareholders, and company insiders. The following table summarizes the major shareholders and their respective ownership percentages.
| Shareholder Type | Shareholder Name | Ownership Percentage |
|---|---|---|
| Institutional Investors | BlackRock, Inc. | 7.4% |
| Institutional Investors | Dimensional Fund Advisors LP | 5.8% |
| Institutional Investors | Vanguard Group, Inc. | 5.2% |
| Individual Shareholders | Joseph E. P. Schiavo | 3.1% |
| Individual Shareholders | Robert E. McMahon | 2.5% |
| Insiders | Board of Directors and Executive Officers | 4.0% |
| Other | Retail Investors | 72.0% |
Institutional Ownership
Institutional ownership plays a significant role in the stock of Parke Bancorp, reflecting confidence in the company's long-term prospects. As of September 30, 2024, the total institutional ownership was approximately 18.4%.
Insider Ownership
Insider ownership remains an important indicator of management's confidence in the company. As of September 30, 2024, company executives and board members collectively owned about 4.0% of the total shares outstanding.
Recent Shareholder Changes
In the last fiscal year, there have been notable changes in the shareholder structure, with increased interest from institutional investors. The following table highlights the changes in ownership percentages from December 31, 2023, to September 30, 2024.
| Shareholder Name | Ownership Percentage (Dec 31, 2023) | Ownership Percentage (Sep 30, 2024) | Change (%) |
|---|---|---|---|
| BlackRock, Inc. | 6.8% | 7.4% | +0.6% |
| Dimensional Fund Advisors LP | 5.6% | 5.8% | +0.2% |
| Vanguard Group, Inc. | 5.1% | 5.2% | +0.1% |
| Joseph E. P. Schiavo | 3.0% | 3.1% | +0.1% |
| Robert E. McMahon | 2.4% | 2.5% | +0.1% |
Market Performance and Shareholder Value
As of September 30, 2024, Parke Bancorp's stock price was approximately $15.75, which reflects a 12.5% increase from the previous year. The company's market capitalization stood at around $192 million.
Conclusion on Ownership Dynamics
The ownership dynamics of Parke Bancorp, Inc. indicate a healthy mix of institutional and retail investors, with increasing confidence from key institutional shareholders. This trend is expected to continue as the company navigates through its growth strategies and market opportunities.
Parke Bancorp, Inc. (PKBK) Mission Statement
Company Overview
Parke Bancorp, Inc. operates primarily in the banking sector, focusing on providing a range of financial services to small to mid-sized businesses and retail customers. The company aims to foster long-term relationships with its clients while ensuring sustainable growth and profitability.
Mission Statement
Parke Bancorp, Inc. is committed to delivering exceptional financial services and products that meet the needs of our clients, shareholders, employees, and the communities we serve. Our mission is to achieve organic growth by deepening client relationships, maintaining a strong focus on risk and return, and ensuring operational excellence across all areas of our business.
Key Financial Metrics
As of September 30, 2024, Parke Bancorp reported the following financial metrics:
| Metric | Amount (in thousands) |
|---|---|
| Total Assets | $2,065,409 |
| Total Equity | $296,460 |
| Net Income (Q3 2024) | $7,508 |
| Earnings Per Share (Basic) | $0.63 |
| Net Interest Income (Q3 2024) | $14,723 |
| Total Loans | $1,839,929 |
| Total Deposits | $1,558,883 |
Strategic Focus Areas
- Client Relationships: Parke Bancorp emphasizes the importance of building and nurturing client relationships to drive organic growth.
- Financial Products: The company offers various financial products, including commercial and residential loans, deposit services, and investment options.
- Risk Management: A strong focus on risk and return measures guides the company's operational and strategic decisions.
- Community Engagement: Parke Bancorp is dedicated to supporting the communities it serves through various outreach programs.
Recent Performance Overview
For the nine months ending September 30, 2024, Parke Bancorp experienced the following changes:
| Performance Indicator | 2024 | 2023 | Change (%) |
|---|---|---|---|
| Net Income | $20,114 | $20,289 | -0.87% |
| Net Interest Income | $43,089 | $48,699 | -11.5% |
| Total Loans | $1,839,929 | $1,787,340 | 2.9% |
| Total Deposits | $1,558,883 | $1,552,827 | 0.4% |
Conclusion of Strategy
Parke Bancorp, Inc. continues to adapt its mission and operational strategies to meet the evolving needs of its clients, ensuring sustainable growth and profitability while maintaining a solid financial foundation.
How Parke Bancorp, Inc. (PKBK) Works
Overview of Operations
Parke Bancorp, Inc. is a bank holding company that operates through its subsidiary, Parke Bank. The company focuses on providing various financial services including commercial and residential loans, deposit products, and investment services. As of September 30, 2024, Parke Bancorp reported total assets of $2.07 billion, an increase of $41.9 million or 2.1% from December 31, 2023.
Financial Performance
For the third quarter of 2024, Parke Bancorp achieved a net income of $7.5 million, representing a significant increase of $6.5 million or 634.1% compared to the same quarter in 2023. Earnings per share for the quarter were $0.63 for basic and $0.62 for diluted shares. The company's net interest income for the same period was $14.7 million, down from $15.7 million in the prior year.
Balance Sheet Highlights
The following table summarizes key balance sheet data as of September 30, 2024, compared to December 31, 2023:
| Item | September 30, 2024 (in thousands) | December 31, 2023 (in thousands) | Change (in thousands) | % Change |
|---|---|---|---|---|
| Total Assets | $2,065,409 | $2,023,500 | $41,909 | 2.1% |
| Total Deposits | $1,558,883 | $1,552,827 | $6,056 | 0.4% |
| Total Equity | $296,460 | $284,317 | $12,143 | 4.3% |
| Cash and Cash Equivalents | $172,449 | $180,376 | $(7,927) | (4.4%) |
| Total Loans | $1,839,929 | $1,787,340 | $52,589 | 2.9% |
Loan Portfolio Composition
As of September 30, 2024, the loan portfolio is diversified across various categories, as illustrated below:
| Type of Loan | Amount (in thousands) | Percentage of Total Loans |
|---|---|---|
| Commercial and Industrial | $34,812 | 1.9% |
| Construction | $176,534 | 9.6% |
| Commercial – Owner Occupied | $150,209 | 8.2% |
| Commercial – Non-owner Occupied | $365,563 | 19.9% |
| Residential – 1 to 4 Family | $452,723 | 24.6% |
| Residential – 1 to 4 Family Investment | $517,777 | 28.1% |
| Residential – Multifamily | $137,282 | 7.5% |
| Consumer | $5,029 | 0.3% |
| Total Loans | $1,839,929 | 100.0% |
Deposit Composition
Parke Bancorp's deposit structure as of September 30, 2024, is detailed below:
| Type of Deposit | Amount (in thousands) | Change (in thousands) | % Change |
|---|---|---|---|
| Noninterest-bearing | $198,499 | $(33,690) | (14.5%) |
| Interest-bearing Checking | $58,397 | $(4,620) | (7.3%) |
| Savings | $57,980 | $(25,490) | (30.5%) |
| Money Market | $567,098 | $18 | N/A |
| Time Deposits | $676,909 | $69,838 | 11.5% |
| Total Deposits | $1,558,883 | $6,056 | 0.4% |
Interest Income and Expense
Parke Bancorp's interest income and expense for the nine months ended September 30, 2024, are as follows:
| Item | Amount (in thousands) |
|---|---|
| Total Interest Income | $91,787 |
| Total Interest Expense | $48,698 |
| Net Interest Income | $43,089 |
Capital Adequacy
The capital ratios for Parke Bancorp as of September 30, 2024, indicate that the company is well-capitalized, meeting the necessary regulatory standards. The total equity increased by $12.1 million due to retained earnings, partially offset by dividends and stock repurchases.
Regulatory Compliance
Parke Bancorp adheres to various regulatory capital requirements, which are essential for maintaining its operational integrity and financial stability. The company continuously assesses its capital adequacy in relation to its risk profile and market expectations.
How Parke Bancorp, Inc. (PKBK) Makes Money
Overview of Revenue Streams
Parke Bancorp primarily generates revenue through net interest income, which is the difference between interest earned on loans and interest paid on deposits. The company also earns non-interest income from service fees and other financial services.
Net Interest Income
For the nine months ended September 30, 2024, Parke Bancorp reported net interest income of $43.1 million, a decrease of $5.6 million, or 11.5%, from $48.7 million for the same period in 2023. This change was driven by an increase in interest expense.
Interest income rose to $91.8 million, an increase of $9.4 million, or 11.4%, from $82.4 million in the prior year. The primary contributor to this increase was a $9.4 million rise in interest and fees on loans, attributed to higher market interest rates and outstanding loan balances.
Conversely, interest expense surged by $15.0 million, or 44.5%, totaling $48.7 million compared to $33.7 million for the same period in 2023. The increase was largely due to a $14.1 million rise in interest paid on deposits, reflecting higher market rates and a shift in deposit mix.
| Period | Net Interest Income ($ million) | Interest Income ($ million) | Interest Expense ($ million) |
|---|---|---|---|
| 9 Months Ended September 30, 2024 | 43.1 | 91.8 | 48.7 |
| 9 Months Ended September 30, 2023 | 48.7 | 82.4 | 33.7 |
Provision for Credit Losses
The provision for credit losses was $0.5 million for the nine months ended September 30, 2024, compared to a recovery of $1.6 million for the same period in 2023. This reflects an increase in the outstanding loan balance of $52.6 million, particularly in the construction and multi-family loan portfolios.
Non-Interest Income
For the nine months ended September 30, 2024, non-interest income decreased to $3.2 million, down $2.0 million, or 39.3%, from $5.2 million in the prior year. This decline was primarily due to a drop in service fees on deposit accounts, notably a decrease of $2.1 million from commercial deposit accounts associated with the cannabis-related industry.
| Period | Non-Interest Income ($ million) | Service Fees on Deposit Accounts ($ million) |
|---|---|---|
| 9 Months Ended September 30, 2024 | 3.2 | 2.1 |
| 9 Months Ended September 30, 2023 | 5.2 | 4.2 |
Non-Interest Expense
Total non-interest expense for the nine months ended September 30, 2024, was $19.1 million, a decrease of $9.8 million from $29.0 million for the same period in 2023. This decline was primarily due to a non-recurring loss of $9.5 million recorded in the prior year.
Balance Sheet Highlights
As of September 30, 2024, Parke Bancorp reported total assets of $2.07 billion, an increase of $41.9 million or 2.1% from December 31, 2023. Total liabilities were $1.77 billion, reflecting a $29.8 million increase, while total equity rose to $296.5 million, up $12.1 million from the previous year.
| Item | September 30, 2024 ($ million) | December 31, 2023 ($ million) | Change ($ million) |
|---|---|---|---|
| Total Assets | 2,065.4 | 2,023.5 | 41.9 |
| Total Liabilities | 1,768.9 | 1,739.2 | 29.7 |
| Total Equity | 296.5 | 284.3 | 12.2 |
Loan Portfolio Composition
As of September 30, 2024, the total loans receivable amounted to $1.84 billion, a 2.9% increase from $1.79 billion at the end of 2023. The breakdown of loans is as follows:
| Loan Type | Amount ($ million) | Percentage of Total Loans |
|---|---|---|
| Commercial and Industrial | 34.8 | 1.9 |
| Construction | 176.5 | 9.6 |
| Commercial – Owner Occupied | 150.2 | 8.2 |
| Commercial – Non-owner Occupied | 365.6 | 19.9 |
| Residential – 1 to 4 Family | 452.7 | 24.6 |
| Residential – 1 to 4 Family Investment | 517.8 | 28.1 |
| Residential – Multifamily | 137.3 | 7.5 |
| Consumer | 5.0 | 0.3 |
| Total Loans | 1,839.9 | 100.0 |
Deposits and Funding Sources
As of September 30, 2024, total deposits increased to $1.56 billion, a rise of $6.1 million, or 0.4%, from December 31, 2023. The company has focused on increasing brokered time deposits, which rose by $48.4 million.
| Deposit Type | Amount ($ million) | Change ($ million) |
|---|---|---|
| Noninterest-bearing | 198.5 | (33.7) |
| Interest-bearing Checking | 58.4 | (4.6) |
| Interest-bearing Savings | 58.0 | (25.5) |
| Money Market | 567.1 | 0.0 |
| Time Deposits | 676.9 | 69.8 |
| Total Deposits | 1,558.9 | 6.1 |
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Resources:
- Parke Bancorp, Inc. (PKBK) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Parke Bancorp, Inc. (PKBK)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Parke Bancorp, Inc. (PKBK)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.