Parke Bancorp, Inc. (PKBK): Business Model Canvas [Dec-2025 Updated]

You're looking to cut through the noise and see exactly how Parke Bancorp, Inc. is positioning itself in late 2025, right? After two decades analyzing bank balance sheets, I can tell you their model is deceptively simple: deep local expertise in real estate lending, backed by a fortress balance sheet-think a CET1 ratio over 20%-and an impressive efficiency ratio of just 36.60% as of Q2 2025. This isn't just about having a $1.93 billion loan book; it's about the disciplined execution that turns that into $54.6 million in Net Interest Income year-to-date through Q3 2025. Dive into the nine blocks below to see the partnerships and activities that keep this community-focused strategy running so leanly.

Parke Bancorp, Inc. (PKBK) - Canvas Business Model: Key Partnerships

Federal Home Loan Bank of New York (FHLBNY) for borrowings

• Total borrowings stood at $83.4M as of September 30, 2025.
• This represented a reduction from $188.3M at December 31, 2024.
• The repayment of $75.0M in FHLB advances contributed to funding cost relief in the third quarter of 2025.
• Total borrowings were $148.3M at March 31, 2025, following a repayment of $40.0M of FHLBNY term borrowings during Q1 2025.

Federal Deposit Insurance Corporation (FDIC) for deposit insurance

• Parke Bank's deposits are insured up to the maximum legal amount by the FDIC.
• Total deposits reached $1.75 billion at September 30, 2025.
• This was an increase of $121.5 million or 7.5% compared to December 31, 2024.
• Total deposits were $1.67 billion at March 31, 2025.

Core banking and data processing system vendors

Parke Bancorp, Inc. operates through its wholly owned subsidiary, Parke Bank, which provides services through retail branches and other channels.

Banking regulators (e.g., New Jersey Department of Banking)

• Parke Bank is chartered by the New Jersey Department of Banking.
• There is a stated risk regarding the possibility of additional corrective actions or limitations on the operations of Parke Bancorp and Parke Bank being imposed by banking regulators.

Correspondent banks for interbank services

Parke Bank funds its lending business primarily with deposits generated through retail deposits and commercial relationships.

You can see the key funding and liability movements below, which highlight the shifting reliance on external funding sources like FHLBNY versus core deposits.

Parke Bancorp, Inc. (PKBK) - Canvas Business Model: Key Activities

You're looking at the core actions Parke Bancorp, Inc. takes to run its business as of late 2025. It's all about smart lending, sticky deposits, cost discipline, and modernizing the tech stack.

Originating and servicing real estate and construction loans

The engine here is loan generation, especially in real estate and construction sectors. For the nine months ended September 30, 2025, Parke Bancorp, Inc. reported new originations totaling $144 million year-to-date. Total loans on the balance sheet grew to $1.96 billion as of September 30, 2025, which was a 4.9% increase year-to-date. Interest and fees on loans, a direct result of this activity, hit $34.9 million for the third quarter of 2025, marking a 15.8% year-over-year increase. Management noted that the provision for credit losses increased year-to-date to $1.9 million, which was tied to growth in the construction and commercial non-owner occupied portfolios.

Here's a quick look at the growth driving the interest income:

• Loans as of June 30, 2025: $1.93 billion.
• Construction loan portfolio growth from March 31, 2025, to June 30, 2025: $37.4 million.
• Increase in commercial non-owner occupied and construction loan balances from December 31, 2024, to June 30, 2025: $66.6 million.

Generating and retaining core customer deposits

Keeping funding costs manageable means attracting and keeping core deposits, moving away from more expensive sources. Total deposits for Parke Bancorp, Inc. reached $1.75 billion as of September 30, 2025, representing a 7.5% increase year-to-date. This growth involved a strategic shift in the funding mix. For the nine months ending September 30, 2025, money market deposits increased by $273.3 million, while time deposits decreased by $135.2 million. This preference for money market accounts over brokered time deposits is a key retention activity.

Managing interest rate risk and asset quality

Managing the spread between what Parke Bancorp, Inc. earns on assets and pays on liabilities, while keeping an eye on credit quality, is crucial. The Net Interest Margin (NIM) expanded to 3.83% in the third quarter of 2025, up from 3.41% in the second quarter of 2025. Asset quality metrics showed some movement. Nonperforming loans (NPLs) stood at $12.4 million, or 0.63% of total loans, as of September 30, 2025. The Allowance for Credit Losses (ACL) coverage against non-accrual loans remained robust at 272.8%, with the ACL to total loans ratio at 1.73% on that date.

Here's a comparison of key asset quality and margin figures:

Maintaining tight expense control for efficiency ratio improvement

Controlling non-interest expenses directly impacts profitability, which is clearly reflected in the efficiency ratio. Parke Bancorp, Inc. achieved a quarterly efficiency ratio of 34.09% for the third quarter of 2025. The year-to-date efficiency ratio as of September 30, 2025, was 35.68%, a significant improvement from 41.37% for the same period in 2024. This reflects management's focus on tight cost control, as they noted in their commentary. For context, the efficiency ratio in Q2 2025 was 35.75%.

Upgrading data processing systems and digital banking

The bank is actively investing in technology to support its operations and compete digitally. In the first quarter of 2025, management specifically mentioned they continue to invest in upgrading their data processing system and are utilizing AI tools to capture more of the market's digital wallet. This focus on digital services was also cited as a factor contributing to the bank's efficiency in 2024.

The commitment to technology is a structural activity supporting the efficiency gains seen across 2025:

• Efficiency Ratio Q3 2025: 34.09%.
• Efficiency Ratio Q1 2024: 43.2%.
• Total Assets as of September 30, 2025: $2.17 billion.

Finance: draft 13-week cash view by Friday.

Parke Bancorp, Inc. (PKBK) - Canvas Business Model: Key Resources

You're looking at the core assets Parke Bancorp, Inc. (PKBK) relies on to execute its community banking strategy. These aren't just line items; they're the engine room, so let's look at the hard numbers as of mid-2025.

The primary tangible resource is the loan book, which is the main income driver. As of June 30, 2025, the loan portfolio stood at over $1.93 billion. This growth, partially supported by adding lending staff, fueled higher interest income. The bank also maintains a very solid funding base, evidenced by total deposits reaching $1.69 billion on the same date. Honestly, that deposit growth, up 3.8% from year-end 2024, shows customer trust in their local presence.

Capital strength is another critical resource, giving Parke Bancorp, Inc. (PKBK) the buffer to navigate market volatility. The Common Equity Tier 1 (CET1) ratio was reported as above 20% at the end of June 2025, which is well above regulatory minimums. This strong capital position is further reflected in the reported equity level.

Here's a quick look at some key balance sheet metrics from the second quarter of 2025:

Physical presence and human capital form the intangible backbone. Parke Bancorp, Inc. (PKBK) relies on its physical footprint to serve its primary markets in Southern New Jersey and Philadelphia. This network consists of 7 branch offices located across key areas.

The dedicated staff are essential for maintaining those customer relationships and driving loan generation. Key personnel resources include:

• Dedicated lending staff for portfolio growth.
• Relationship management staff for client retention.
• Staff supporting an efficiency ratio of 36.60% as of June 30, 2025.
• Personnel operating across the 7 branch offices.

The physical locations are strategically placed to serve the core customer base in Philadelphia and surrounding counties and Southern New Jersey. These include locations in Washington Township (two offices), Northfield, Galloway Township, and Collingswood in New Jersey, plus offices in Center City Philadelphia and Chinatown in Philadelphia. That physical accessibility is a key resource for a community bank, defintely.

Parke Bancorp, Inc. (PKBK) - Canvas Business Model: Value Propositions

You're looking at Parke Bancorp, Inc.'s core promises to its customers and the market, which center on specialized lending, personal service, and a commitment to asset quality within a defined geographic footprint. This isn't about chasing every market segment; it's about doing a few things very well in the Philadelphia/South Jersey area.

Deep expertise in commercial and residential real estate lending

Parke Bancorp, Inc. focuses its lending strength on real estate, which underpins its business strategy. The total gross loans stood at $1.93 billion as of June 30, 2025, growing from $1.88 billion at March 31, 2025. The provision for credit losses in the third quarter of 2025 was tied to growth in the construction and commercial non-owner occupied portfolios, showing where the lending focus is being applied. The bank's core mission includes offering commercial and industrial loans, real estate financing, and residential mortgages.

Personalized financial advice and dedicated bankers

The value proposition here is the human touch, moving away from large, impersonal institutions. Parke Bancorp, Inc. commits to leveraging modern technology while maintaining a personalized approach to customer service. This is supported by offering a full suite of deposit products, including checking, savings, money market accounts, and certificates of deposit (CDs), alongside business services like treasury management.

Simple, low-risk business model focused on asset quality

The bank emphasizes a simple, low-risk approach, largely justified by its significant exposure to residential mortgages. This focus translates directly into strong operational efficiency and capital strength. The efficiency ratio improved sequentially, moving from 37.1% in the first quarter of 2025 to 35.75% in the second quarter, and further to 34.09% by the third quarter of 2025. Furthermore, capital strength is evident, with the CET1 ratio reported as above 20% at the end of June 2025.

Here's a quick look at how asset quality metrics reflect this low-risk stance across recent quarters:

Community-oriented service in the Philadelphia/South Jersey area

Parke Bancorp, Inc. has carved out a market presence through a network of community-oriented branches, specifically serving Southern New Jersey and the Philadelphia metropolitan area. This local focus is key to understanding their customer relationships. The bank's total deposits grew to $1.75 billion as of September 30, 2025, up 7.5% from December 31, 2024.

High allowance for credit losses coverage of non-performing loans

The bank maintains a substantial buffer against potential credit issues, which is a direct reflection of its conservative underwriting. The allowance for credit losses (ACL) was $33.9 million at September 30, 2025, compared to non-performing loans (NPLs) of $12.4 million at the same date. This results in a coverage ratio that is very high, demonstrating significant protection.

• ACL to Non-Performing Loans coverage was 297.5% as of March 31, 2025.
• The ACL to NPL ratio was 272.8% at September 30, 2025.
• The bank's Return on Equity (ROE) for the first half of 2025 was 10.3%.
• Net income available to common shareholders was $7.8 million for Q1 2025.

Finance: draft 13-week cash view by Friday.

Parke Bancorp, Inc. (PKBK) - Canvas Business Model: Customer Relationships

You're looking at how Parke Bancorp, Inc. keeps its customers close, which is central to its community banking segment. The relationship model is built on a localized, high-touch approach, even as they manage a balance sheet that grew its gross loans to $1.93 billion as of June 30, 2025.

Dedicated, long-term relationship management model

Parke Bancorp, Inc. emphasizes relationship banking, which means they work closely with clients to understand their specific objectives and risk profiles. This focus supports a customer base that includes individuals and small to medium-sized businesses across Southern New Jersey and the Philadelphia metropolitan area. The bank operates with a lean structure, employing 108 total employees as of late 2025, which often translates to fewer layers between the client and decision-makers.

Personalized service through a community-bank branch network

Personalized service is delivered through a network of community-oriented branches. Parke Bank operates from its corporate headquarters in Washington Township, New Jersey, and maintains 7 branch offices. These locations serve customers primarily in Philadelphia and surrounding counties, plus Southern New Jersey. The bank offers a comprehensive suite of deposit products, including checking, savings, money market accounts, and certificates of deposit (CDs), all characterized by a focus on accessibility. Total deposits stood at $1.69 billion at September 30, 2025.

Digital self-service via internet banking and online bill pay

Parke Bancorp, Inc. is committed to leveraging modern technology alongside its personalized service approach. The bank provides core digital services to meet the needs of its broad spectrum of financial management customers. For business clients, this includes treasury management solutions like remote deposit capture and wire transfers, designed to streamline financial operations.

High-touch advisory for commercial and real estate clients

The advisory aspect is strongest in commercial lending, where Parke Bancorp focuses on commercial real estate, construction lending, and commercial and industrial (C&I) loans. The commercial real estate mortgage portfolio was $531.7 million at the end of 2024. Furthermore, the bank provides specialized services, such as being an SBA-preferred lender for SBA 7(a) and SBA 504 loans, which is crucial capital facilitation for entrepreneurs. A specific, high-touch segment is cannabis banking in New Jersey, where deposit balances from cannabis-related businesses grew to $151.9 million in 2024.

Direct engagement with business owners and individuals

Direct engagement is evident in the bank's lending approach, which involves working closely with clients to understand their specific business objectives. The bank actively participates in government-backed loan programs to facilitate growth opportunities for entrepreneurs. The growth of the loan portfolio, which increased by $92.0 million in the first nine months of 2025, reflects this direct engagement in funding client expansion.

Here's a quick look at the scale of customer balances as of mid-to-late 2025:

The bank's operational efficiency, reflected by an improved Efficiency Ratio of 35.68% as of September 30, 2025, suggests that this relationship focus is being managed with tight control over expenses.

Parke Bancorp, Inc. (PKBK) - Canvas Business Model: Channels

You're looking at how Parke Bancorp, Inc. gets its services-loans and deposits-to its customers across Philadelphia and Southern New Jersey. The physical footprint remains a core part of the strategy, even as digital adoption grows.

The network of 7 physical branch offices serves as the primary touchpoint for many clients. These locations are strategically placed to cover key markets in New Jersey and Pennsylvania. The corporate headquarters, where the main administrative and strategic decisions are made, is located in Washington Township, New Jersey.

Here's a quick breakdown of that physical distribution as of late 2025:

The direct sales force is critical for the lending side of the business. You see this in the growth figures; Parke Bancorp, Inc. added lending staff in 2025 to support increased loan demand. This direct engagement helped push the outstanding loan balance to $1.96 billion as of September 30, 2025, up from $1.88 billion at the end of 2024. New loan generation for the first nine months of 2025 hit $144 million.

For the retail and business customers, Parke Bancorp, Inc. uses its digital presence. The bank offers contemporary products that customers use daily, including Internet banking, and online bill payment. While direct usage statistics aren't public, the bank's ability to grow deposits shows these channels are active, even if the physical offices are the main draw for high-value commercial relationships.

Deposit generation relies heavily on both retail customers and commercial relationships, which fund the lending business. Total deposits reached $1.75 billion at September 30, 2025, marking a 7.5% increase, or $121.5 million, since December 31, 2024. A significant driver of this growth was the increase in money market deposits.

• Money market deposits increased by $128.4 million in the first quarter of 2025.
• For the first half of 2025, money market deposits grew by $199.6 million.
• This growth was partially offset by a decrease in brokered time deposits, such as a $88.9 million reduction in Q1 2025.

The blend of a focused physical network and direct lending staff, supported by essential digital tools, defines how Parke Bancorp, Inc. reaches its market.

Parke Bancorp, Inc. (PKBK) - Canvas Business Model: Customer Segments

You're looking at the core clientele for Parke Bancorp, Inc. as of mid-2025. Honestly, their customer base is tightly focused, which is typical for a community-oriented bank of this size, trading on NASDAQ under PKBK.

Small to mid-sized businesses in the local market represent a key segment, as Parke Bank offers commercial and industrial loans, as well as small business administration loans. They also provide treasury management services to these businesses.

For individuals seeking residential mortgages and deposit services, the bank is heavily involved in residential real estate lending. Their total deposits stood at $1.69 billion as of June 30, 2025. You can see the shift in how they are attracting those deposits:

• Money Market Deposits: Increased by $199.6 million in the first half of 2025.
• Brokered Time Deposits: Decreased by $124.1 million in the first half of 2025.
• Non-Interest Checking Deposits: Decreased by $9.9 million in the first half of 2025.

The focus on commercial real estate investors and developers is clear from their loan growth trends reported through the second quarter of 2025. They are actively growing specific commercial real estate-related portfolios. Here's the quick math on loan segment movements from March 31, 2025, to June 30, 2025:

The total loan book reached $1.93 billion by June 30, 2025.

The geographic concentration for Parke Bancorp, Inc. is quite specific, serving customers in Southern New Jersey and the Philadelphia metropolitan area. They operate a network of community-oriented branches in locations including Washington Township, Northfield, Galloway Township, and Collingswood in New Jersey, plus branches in Center City Philadelphia and Chinatown in Philadelphia.

Regarding specialized deposit clients, including a cannabis-related portfolio, Parke Bank is known to serve this sector, positioning itself as a trusted financial partner for businesses in its operating regions. While the specific dollar amount for the cannabis portfolio as of late 2025 isn't explicitly broken out in the latest public filings, the bank's overall business model includes providing a full suite of products to businesses.

Finance: draft 13-week cash view by Friday.

Parke Bancorp, Inc. (PKBK) - Canvas Business Model: Cost Structure

You're looking at the cost base for Parke Bancorp, Inc. as of late 2025, and the numbers show a focus on managing funding costs while absorbing necessary operational increases. The largest single cost component remains the expense tied to funding the balance sheet.

The significant interest expense on deposits and borrowings for the first half of 2025 (H1 2025) hit $34.4 million. This reflects the market interest rate environment combined with shifts in the mix of deposits and borrowings Parke Bancorp, Inc. utilized to fund its growth.

Management has maintained a very tight grip on overhead, which is evident in the efficiency ratio. The operating efficiency improved, with the efficiency ratio at 36.60% as of June 30, 2025 (Q2 2025). This is a marked improvement from 41.69% as of June 30, 2024.

The total non-interest expense for the first six months of 2025 was $13.2 million, which was an increase of $0.4 million, or 3.5%, compared to the same period in 2024. This overall increase was driven by a few key areas, including personnel costs and technology investments.

Here's a look at the key cost elements for H1 2025 compared to H1 2024, based on the available data:

Regarding the specific operating costs that make up the non-interest expense:

• Compensation and employee benefits for staff increased by $0.3 million for the six months ended June 30, 2025, compared to the first half of 2024. This reflects the addition of lending staff to support loan generation.
• Technology and data processing system maintenance, reported as data processing expense, increased by $0.2 million for H1 2025 versus H1 2024. Parke Bancorp, Inc. has mentioned investing in upgrading its data processing system, utilizing AI tools.
• Professional services expense also contributed to the rise in non-interest expense.

The provision for credit losses for H1 2025 was $1.6 million, a notable increase from the $0.7 million recorded in the first half of 2024. This build was primarily to support growth in the commercial non-owner occupied and construction loan portfolios.

You can see the quarterly expense control in action:

• Non-interest expense for Q2 2025 was $6.7 million.
• For that quarter, compensation and benefits rose by $0.2 million year-over-year.
• Data processing expense also rose by $0.2 million in Q2 2025 versus Q2 2024.

Finance: draft 13-week cash view by Friday.

Parke Bancorp, Inc. (PKBK) - Canvas Business Model: Revenue Streams

You're looking at how Parke Bancorp, Inc. (PKBK) brings in its money, which is pretty standard for a community bank but with some strong recent performance, especially on the lending side. The core of the revenue engine is definitely the spread between what they earn on assets and what they pay for liabilities.

Here are the key revenue streams as of late 2025, grounded in the latest reported figures:

• Net Interest Income (NII) from loan portfolio: $54.6 million YTD Q3 2025.
• Interest and fees on loans: $64.2 million H1 2025.
• Interest earned on deposits held at the Federal Reserve Bank: Increased by $1.8 million for the six months ended June 30, 2025, compared to the same period in 2024.
• Non-interest income from service charges and fees: $1.6 million H1 2025.
• Repayment of principal and interest on real estate loans.

The growth in interest income is clearly tied to the loan book. For instance, in the third quarter of 2025, interest and fees on loans hit $34.9 million, up 15.8% year-over-year, driven by higher market rates and larger average loan portfolio balances.

To give you a clearer picture of the core income components around the mid-year mark, here's a breakdown:

The overall revenue picture for the nine months ending September 30, 2025, shows NII at $54.6 million, which was a 26.8% increase over the same period in 2024. Also, note that total revenue (interest income plus non-interest income) for Q3 2025 was reported as $37.4 million or $37.36 million.

The components driving the interest income are fairly straightforward:

• Growth in the loan portfolio, which reached over $1.9 billion in H1 2025.
• Higher asset yields repricing at a faster rate than deposit costs in H1 2025.
• The interest earned on balances held at the Federal Reserve Bank saw an increase of $1.8 million for the first half of 2025.

Non-interest income, while smaller, is also a stream, though it has seen some softness. For the three months ending September 30, 2025, non-interest income was $0.85 million, a slight decrease of 5.6% year-over-year.

Finance: draft the full nine-month revenue reconciliation by next Tuesday.