Executive Summary

Q3 2025 delivered strong sequential and year-over-year growth: revenue rose to $37.4M (+4.2% q/q) and diluted EPS reached $0.89 (+28.6% q/q; +43.5% y/y), driven by higher net interest income and lower borrowing costs following repayments of subordinated debt and FHLB advances .
Net interest margin expanded to 3.83% (vs 3.41% in Q2, 2.97% in Q3 2024) while the quarterly efficiency ratio improved to 34.09% (vs 35.75% in Q2, 40.74% in Q3 2024), reflecting tighter cost control and healthier spread dynamics .
Balance sheet de‑leveraging and deposit mix shift supported funding cost relief: total borrowings fell to $83.4M (from $188.3M at 12/31/24) and money market deposits increased while time deposits declined; total deposits reached $1.75B (+7.5% YTD) .
Asset quality remained solid with ACL at 1.73% of loans; nonperforming loans rose modestly to $12.4M (0.63% of loans), and loans past due 30–89 days were $2.5M (up $1.1M vs 12/31/24). Provision increased to support construction and commercial non‑owner occupied loan growth .
Potential catalysts: improving NIM, efficiency gains, ongoing de‑leveraging, and continued quarterly dividend ($0.18 per share declared Sept. 17 for Oct. 17 payment) .

What Went Well and What Went Wrong

What Went Well

Net interest income surged 37.0% y/y in Q3 to $20.2M and 26.8% YTD to $54.6M, driven by higher market rates and larger average loan balances .
Funding cost relief: interest expense decreased $1.1M y/y in Q3, aided by payoff of $30.0M subordinated notes and a $75.0M reduction in FHLB advances .
Operating efficiency improved: quarterly efficiency ratio fell to 34.09% (Q3) and YTD to 35.68% (vs 40.74% and 41.37% respectively in the prior year), with management highlighting “continued tight control of our expenses” .

What Went Wrong

Non‑interest income softness persisted: Q3 non‑interest income declined 5.6% y/y to $0.85M; YTD down 21.4% to $2.5M, reflecting lower loan fees, service fees, and other income .
Provision for credit losses increased: Q3 provision was $0.4M (vs a recovery of $0.1M in Q3 2024); YTD provision rose to $1.9M (+255% y/y), tied to growth in construction and commercial non‑owner occupied portfolios .
Asset quality modestly mixed: nonperforming loans rose to $12.4M (0.63% of loans) from $11.8M at 12/31/24; loans past due 30–89 days increased to $2.5M (up $1.1M vs 12/31/24), though ACL coverage remains robust at 272.8% of non‑accrual loans .

Financial Results

Core P&L, EPS and Margins

Metric	Q3 2024	Q1 2025	Q2 2025	Q3 2025
Revenue ($USD Millions)	$33.0	$34.7	$35.8	$37.4
Net Interest Income ($USD Millions)	$14.7	$16.6	$17.9	$20.2
Net Income to Common ($USD Millions)	$7.5	$7.8	$8.3	$10.6
Diluted EPS ($USD)	$0.62	$0.65	$0.69	$0.89
Net Interest Margin (%)	2.97%	3.21%	3.41%	3.83%
Efficiency Ratio (%)	40.74%	37.51%	35.75%	34.09%
ROAA (%)	1.49%	1.48%	1.56%	1.99%
ROACE (%)	10.08%	10.36%	10.69%	13.40%

Notes: Revenue reflects total interest income plus non‑interest income based on reported financial tables . Q3 2024 figures from comparative columns in Q3 2025 filing .

Interest Income/Expense Components

Component ($USD Millions)	Q3 2024	Q1 2025	Q2 2025	Q3 2025
Interest & Fees on Loans	$30.2	$31.5	$32.8	$34.9
Interest on Deposits with Banks	$1.7	$2.1	$2.0	$1.4
Interest & Dividends on Investments	$0.27	$0.29	$0.23	$0.22
Total Interest Income	$32.1	$33.8	$35.0	$36.5
Interest on Deposits (Expense)	$15.0	$15.2	$15.1	$15.4
Interest on Borrowings (Expense)	$2.4	$2.1	$2.0	$1.0
Total Interest Expense	$17.4	$17.2	$17.2	$16.3
Net Interest Income	$14.7	$16.6	$17.9	$20.2
Non‑interest Income	$0.90	$0.82	$0.82	$0.85
Non‑interest Expense	$6.37	$6.54	$6.68	$7.16

Balance Sheet and Asset Quality KPIs

KPI	Q3 2024	Q1 2025	Q2 2025	Q3 2025
Total Assets ($USD Billions)	$2.14	$2.14	$2.17	$2.17
Gross Loans ($USD Billions)	$1.87	$1.88	$1.93	$1.96
Total Deposits ($USD Billions)	$1.63	$1.67	$1.69	$1.75
Total Borrowings ($USD Millions)	$188.3	$148.3	$143.4	$83.4
Total Equity ($USD Millions)	$300.1	$305.9	$312.2	$314.8
Nonperforming Loans ($USD Millions)	$11.8	$11.1	$11.2	$12.4
NPLs / Total Loans (%)	0.63% (Q3’25) vs 0.59% (Q1’25)	0.59%	0.58%	0.63%
Allowance for Credit Losses ($USD Millions)	$32.6	$33.1	$33.8	$33.9
ACL / Total Loans (%)	1.74%	1.76%	1.75%	1.73%
ACL / Non‑accrual Loans (%)	276.5%	297.5%	301.5%	272.8%

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Dividend per Share	Q4 2025 payout (declared Sept. 17; payable Oct. 17, 2025)	$0.18 per share (prior declared June 20, 2025)	$0.18 per share (declared Sept. 17, 2025)	Maintained
Formal Financial Guidance (Revenue, Margins, OpEx, Tax)	Q4 2025 / FY 2025	Not provided	Not provided	N/A

Management did not issue quantitative revenue/margin/tax guidance; commentary focused on macro outlook, regulatory developments, and operating discipline .

Earnings Call Themes & Trends

No Q3 2025 earnings call transcript was available in the document repository; themes are derived from CEO commentary across quarterly releases .

Topic	Previous Mentions (Q-2 and Q-1)	Current Period (Q3 2025)	Trend
Tariffs/Macro Volatility	Q1/Q2 emphasized tariff negotiations, geopolitical unrest, and Fed policy uncertainty .	Continued macro uncertainty; 25bp Fed cut amid divergent views; noted government shutdown effects .	Persisting volatility, incremental policy easing.
Interest Rate Outlook	Fed “wait-and-see”; debate on timing/scale of cuts .	25bp reduction acknowledged; uncertainty remains on future path .	Slightly more accommodative; still uncertain.
Regulatory Environment	Noted strong capital/asset quality focus .	OCC/Fed statements easing some community-bank regulatory pressure (Fair Lending, enforcement parameters) .	Potentially supportive for operating flexibility.
Asset Quality	ACL ~1.74–1.76%; NPLs ~0.58–0.59%; noted past-due spike in Q2 due to specific borrowers .	ACL 1.73%; NPLs 0.63%; modest uptick in past-due vs YE; coverage remains strong .	Stable with pockets of pressure; robust coverage.
Loan Growth	Loans +0.8% (Q1), +3.6% (Q2) vs YE .	Loans +4.9% YTD to $1.96B; new originations $144M YTD .	Continued growth; mix tilting to construction and commercial non‑owner occupied .
Deposit Mix/Funding	Shift to money market; brokered time down .	Money market up $273.3M; time deposits down $135.2M; total deposits +7.5% YTD .	Favorable mix supporting NIM/efficiency.
De‑leveraging	FHLB borrowings reduced in Q1/Q2 .	Borrowings down to $83.4M; repaid $30M sub debt .	Accelerating de‑risking and interest expense relief.

Management Commentary

“Parke Bank experienced positive financial results in the 3rd quarter of 2025 with Net Income growing 41.6% to $10.6 million… supported by increased interest income due to the continued growth of our loan portfolio, in addition to continued tight control of our expenses with an improved Efficiency Ratio of 35.68% as of September 30, 2025, compared to 41.37% as of September 30, 2024.” — Vito S. Pantilione, CEO .
“We have repaid $30.0 million in subordinated debt, further strengthening our balance sheet and reducing our interest expense. We always look for new opportunities in the market, while operating a safe and sound financial institution.” .
“Recently, the OCC and the Federal Reserve regulatory agencies have released statements reducing some of the regulatory pressure currently on community banks… These and other changes should provide community banks with the long‑needed ability to better address their communities’ banking and neighborhood needs.” .
“New loan generation during the nine months ended September 30, 2025, was $144 million… This growth was partially supported by an increase in loan demand and adding lending staff to our company.” .

Q&A Highlights

No Q3 2025 earnings call transcript was available; Q&A highlights cannot be provided based on available documents [List: earnings-call-transcript not found].

Estimates Context

Wall Street consensus (S&P Global) for Q3 2025 EPS and revenue was unavailable for PKBK; therefore, estimate comparisons are not provided. Values retrieved from S&P Global.*

Metric	Q3 2025 Consensus	Q3 2025 Actual
EPS (Primary) ($USD)	Unavailable*	$0.89
Revenue ($USD Millions)	Unavailable*	$37.4

*Values retrieved from S&P Global.

Given the lack of consensus, analysts may adjust models to reflect stronger-than-expected NIM expansion, lower interest expense from de‑leveraging, and modestly higher provision aligned to loan mix shifts .

Key Takeaways for Investors

NIM and efficiency momentum: Q3 NIM at 3.83% and efficiency at 34.09% reflect both spread expansion and disciplined costs; trajectory improved versus Q2 and Q3 2024 .
De‑leveraging is a tangible tailwind: payoff of $30M sub notes and lower FHLB borrowings reduced interest expense, supporting EPS and ROE gains .
Loan growth continues with portfolio mix pivot: construction and commercial non‑owner occupied balances drove higher provisions; monitor mix‑related risk and potential future provisioning needs .
Asset quality stable but watchlist items matter: NPLs ticked up to 0.63% of loans; ACL coverage remains robust at 272.8% of non‑accrual loans .
Deposit mix beneficial: money market inflows and reduced time deposits improved funding dynamics; total deposits +7.5% YTD .
Capital and shareholder returns: equity rose to $314.8M; quarterly dividend maintained at $0.18 per share (Oct. 17 payment), signaling ongoing return capacity and capital discipline .
Macro/regulatory backdrop: a 25bp Fed cut and easing community‑bank regulatory pressure may support operations, but volatility and policy uncertainty persist; position for spread resilience and selective credit risk .

PARKE BANCORP, INC. (PKBK)·Q3 2025 Earnings Summary