Company Overview
Parke Bancorp, Inc. operates as the bank holding company for Parke Bank, which provides a comprehensive suite of personal and business financial services tailored for individuals and small to mid-sized businesses. The institution accepts various deposit products, including checking, savings, money market, time, and other traditional deposit services, forming the foundation of its lending and operational activities. This entity functions within the Financial Services sector, specifically categorized under the Banks - Regional industry, positioning it as a community-focused financial provider rather than a large-scale national bank. The company's current market capitalization stands at $334.43M, with annual revenue generated over the trailing twelve months reaching $77.38M and an employee count of 103. These figures indicate that Parke Bancorp, Inc. maintains a relatively modest scale typical of regional banks, where the market cap reflects a mid-tier presence in the regional banking landscape, while the revenue figure suggests a stable income stream derived from localized banking operations rather than massive economies of scale.
Financial Health
The company reported revenue of $77.38M and net income of $37.76M for the trailing twelve months, while EBITDA is not available in the provided data. The significant gap between revenue and net income reveals a highly efficient cost structure where the majority of top-line revenue is retained as profit, a characteristic often seen in banking models where operating expenses are relatively fixed compared to interest income. Free cash flow is listed as N/A, indicating that standard cash flow metrics are either not reported or are derived differently within the bank holding company structure, which affects the assessment of immediate financial flexibility using standard corporate metrics. Operating margins are robust at 68.9%, indicating high efficiency in core banking operations before interest on debt, while the gross margin is 0.0%, reflecting the standard nature of banking where cost of goods sold is negligible or integrated into operating expenses. The profit margin stands at 48.8%, demonstrating that nearly half of every dollar of revenue translates to bottom-line earnings after all expenses and taxes are accounted for. In terms of liquidity and leverage, the company holds $156.86M in cash against $145.79M in debt, resulting in a net positive cash position, though the debt-to-equity ratio is N/A and the current ratio is also N/A, which limits a precise assessment of short-term liquidity and leverage levels using traditional ratios. Return on Equity is 12.1% and Return on Assets is 1.7%, metrics that reveal management is effectively utilizing shareholder equity to generate returns, while the lower ROA is consistent with the capital-intensive nature of the banking industry where assets significantly exceed equity.
Valuation Assessment
The trailing P/E ratio is 8.94, while the forward P/E is N/A, implying that analysts or the market may not have a consensus on future earnings trajectory or that the forward metric is not currently calculable due to lack of projected data. The price-to-book ratio is 1.01, indicating that the market values the company at nearly exactly its book value, suggesting no significant market premium or discount relative to the tangible assets the bank holds. Alternative valuation metrics show a price-to-sales ratio of 4.32, while EV/EBITDA is N/A, suggesting that investors are valuing the bank primarily on its revenue generation capabilities rather than cash flow multiples or enterprise value metrics. The stock has traded between a 52-week high of $29.50 and a 52-week low of $16.94, providing a range within which the current price fluctuates based on market sentiment and sector performance. The beta value is 0.52, indicating that the stock price is significantly less volatile than the broader market, moving at roughly half the magnitude of the overall market index.
Growth & Income
Revenue growth year-over-year is 33.9%, while earnings growth year-over-year is 53.3%, demonstrating that earnings are growing substantially faster than revenue, which implies improving operational leverage or net interest margin expansion. The company offers a dividend yield of 2.6% with a payout ratio of 22.8%, a low payout ratio that suggests the company retains the majority of its earnings for reinvestment while still providing a steady income stream to shareholders. The low payout ratio relative to the strong profit margin indicates a sustainable dividend policy where the company can comfortably cover dividend payments even if earnings fluctuate. Overall, the company presents a profile of rapid earnings expansion supported by a conservative dividend approach that balances income distribution with capital retention for future growth.