Parke Bank - Banks - Northfield, NJ

Parke Bank
501 Tilton Road,
Northfield, NJ 08225
Phone: (609) 646-6677

Business Hours
Banking Hours
Mon.-Wed. 9:00am-5:00pm
Thu.& Fri. 9:00am-7:00pm
Sat. 8:30:00am-2:00pm

Drive Thru Hours
Open daily 8:00am
Saturdays 8:30pm

Parke Bancorp remained very profitable with strong growth in 2008. Earnings of the Company decreased from $5.9 million in 2007 to $4.2 million in 2008, a 27.4% decrease. The decline in earnings was due to the "Other Than Temporary Impairment" (OTTI) write down of two private issue Collateralized Mortgage Obligations (CMO's) in the aggregate amount of $759 thousand, net of taxes. These two CMO's continue to make all payments as required. Additionally, we had OTTI write downs on our preferred stock holdings in two Government Sponsored Enterprises, The Federal National Mortgage Association (Fannie Mae) and the Federal Home Loan Mortgage Corporation (Freddie Mac). The total write down for all OTTI adjustments in 2008 was $1.4 million, after taxes. The Company's return on average equity was over 11% for 2008, with Stockholders' Equity growing 10.7% to over $40 million.

The total assets of the Company grew 30.6% in 2008 from $460.8 million as of December 31, 2007 to $602.0 million as of December 31, 2008. The Company's loan portfolio grew more than 34% in 2008 from $408.4 million as of December 31, 2007 to $547.7 million as of December 31, 2008, a net increase of $139.3 million. The Company's deposit base also enjoyed strong growth, with an increase of 30.5% as of December 31, 2008 to $495.3 million from $379.5 million as of December 31, 2007. ParkeBank has maintained a conservative 1.42% allowance for loan loss with $2.1 million added in 2008 due to our continued strong loan growth. The prolonged weakness in the real estate market will continue to challenge the banking industry's loan portfolios, including ours. We are confident that we have the experience and expertise at ParkeBank to work with our borrowers in satisfactorily resolving many of these challenges.

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