1. A local community bank, like a scaled-down version of PNC Bank or Truist.

2. The neighborhood bank for small businesses and individuals in parts of New Jersey and Philadelphia, similar to a localized Bank of America.

• Deposit Accounts: The company offers various deposit products including checking, savings, time, money market, and individual retirement accounts, as well as certificates of deposit.
• Loan Services: Parke Bank provides a comprehensive loan portfolio comprising commercial and industrial, construction, commercial and residential real estate mortgage, and consumer loans.
• Digital Banking: Customers can utilize internet banking and online bill payment services for convenient financial management.
• Debit Cards: The bank offers debit cards for easy access to funds and transaction processing.

Parke Bancorp (PKBK) is a bank holding company that operates Parke Bank, providing financial services. As such, it does not have "major customers" in the traditional sense of a few large companies that purchase its products, nor does it sell primarily to other companies whose names can be listed. Instead, it serves a broad base of individuals and businesses within its operating regions.

Based on the company description, Parke Bancorp primarily serves the following categories of customers:

1. Individuals: This category includes individuals seeking personal financial services such as checking, savings, time, money market, and individual retirement accounts, as well as consumer loans, debit cards, internet banking, and online bill payment services.
2. Small to Mid-Sized Businesses: This category encompasses small to mid-sized businesses looking for commercial financial services, including business deposit accounts (checking, savings, money market), commercial and industrial loans, construction loans, and commercial real estate mortgage loans.

Vito S. Pantilione, President and Chief Executive Officer

Mr. Pantilione has served as President, CEO, and Director of Parke Bancorp since its formation in 2005, and led Parke Bank since its inception in 1998. His background includes senior roles at multiple financial institutions, and he was previously the President and owner of Eagle Valley, a diversified mortgage company in Philadelphia, Pennsylvania. From 1991 to 1994, he was President of First Commercial Bank of Philadelphia. Additionally, he was the President and owner of Interstate Mortgage Management, a mortgage brokerage company in Southern New Jersey, and served as Executive Vice President of First Federal Savings of Hammonton. He is also a founder of Parke Bank.

Jonathan D. Hill, Senior Vice President and Chief Financial Officer

Mr. Hill joined Parke Bancorp in December 2023, bringing over two decades of financial and accounting experience. Prior to joining the company, he held numerous roles at Republic Bank from December 2021 to December 2023, including Senior Vice President, Managing Director of Finance, Interim Chief Financial Officer, and Controller. Before Republic Bank, Mr. Hill was Senior Vice President, Senior Finance Manager-Mergers and Acquisitions for M&T Bank from August 2017 to December 2021. He also worked for Glenmede in various finance and accounting roles from September 2002 to August 2017.

Ralph Gallo, Executive Vice President and Chief Operating Officer

Mr. Gallo joined Parke Bank in 2010 and is responsible for branch operations, IT, human resources, loan workout, and internal audit. He possesses over forty years of banking experience, primarily in banking operations and customer relationship management. He previously managed Lockbox, Research & Adjustments, and International Operations for commercial banking customers as a Vice President at Mellon Bank. As a Vice President at Image Remit, he managed a private label multi-state lockbox operation.

Nicholas Pantilione, Senior Vice President and Chief Lending Officer

Mr. Pantilione joined Parke Bancorp in 2005 through an internship and began full-time with the Bank in 2009. He has twelve years of lending experience and manages the bank's lending staff and business development.

Ralph Bonadies, Senior Vice President and Chief Risk Officer

Ralph Bonadies serves as the Senior Vice President and Chief Risk Officer for Parke Bancorp.

The key risks to Parke Bancorp (PKBK) are:

1. Regulatory Compliance Risk: Parke Bancorp's subsidiary, Parke Bank, operates under consent orders with the FDIC and the New Jersey Department of Banking and Insurance (NJDOBI) to enhance its Bank Secrecy Act (BSA) compliance program. This has resulted in increased compliance expenses and could lead to further regulatory actions if these issues are not adequately addressed. Additionally, the bank has received a "needs to improve" rating under the Community Reinvestment Act (CRA).
2. Cannabis Banking Risks: Parke Bancorp provides banking services to cannabis-related businesses, which, while legal under New Jersey state law, remain illegal under federal law. This discrepancy creates a risk of federal enforcement actions that could compel the company to cease providing services to the cannabis industry. As of December 31, 2024, cannabis-related deposits and loans constituted a significant portion of the company's business.
3. Interest Rate Risk: The company is exposed to interest rate risk, which can significantly impact its net interest margin and overall profitability. Fluctuations in market interest rates, particularly an increase in interest expenses due to higher rates and shifts in deposit mix, have contributed to a decline in net interest income.

• Digital-only Banks and Neobanks: These financial institutions operate without physical branches, leveraging technology to offer often higher interest rates on deposits, lower fees, and superior mobile-first banking experiences. This directly threatens Parke Bancorp's traditional branch-based model, potentially drawing away individuals and small to mid-sized businesses who prioritize convenience, cost-efficiency, and seamless digital interaction over physical branch access.
• Fintech Lenders and Alternative Financing Platforms: Companies specializing in specific types of loans (e.g., small business loans, consumer personal loans, niche real estate financing) utilize advanced algorithms and streamlined online processes. They can offer quicker approvals, more flexible terms, and greater convenience, potentially siphoning away portions of Parke Bancorp's loan portfolio by providing agile and efficient financing options without traditional banking overheads.

Parke Bancorp (symbol: PKBK) operates in a regional market encompassing parts of New Jersey and the Philadelphia, Pennsylvania area, offering a range of personal and business financial services. The addressable markets for its main products and services, primarily deposits and various types of loans, can be sized within these geographical regions.

New Jersey Market

• The overall Commercial Banking industry in New Jersey, which includes commercial, industrial, and consumer loans, as well as deposits, is projected to have a market size of approximately $50.6 billion in 2026.
• The Real Estate Loans & Collateralized Debt industry in New Jersey is estimated at $9.1 billion in 2026.
• Total deposits held by banks in New Jersey amounted to $431 billion as of Q2 2024.
• New home loans booked in New Jersey totaled $29.1 billion in 2024.
• Small business loans in New Jersey reached $21.6 billion.

Philadelphia, Pennsylvania Market

• For the broader Pennsylvania commercial banking industry, which includes services offered in Philadelphia, the market size is projected to be $43.2 billion in 2026.
• In Philadelphia, 60,899 purchase mortgage loans, collectively valued at $21.04 billion, are forecasted to be originated in 2024.
• Local deposits within the eight-county Philadelphia region were $204 billion in 2024.
• The Philadelphia commercial real estate lending sector shows a strategic focus on diverse property types, with significant demand in the multifamily market. The average commercial loan amount in Philadelphia stands at $1.4 million.

1. Growth in Commercial Real Estate and Construction Loans: Parke Bancorp has demonstrated consistent loan growth, particularly in its commercial real estate and construction loan portfolios. This segment has been a significant contributor to the company's gross loan increases, with commercial real estate rentals and construction loans showing substantial year-over-year increases. Continued expansion in these areas is expected to drive future interest income.
2. Net Interest Margin Expansion: The company has experienced a notable surge in its net interest margin (NIM), which directly translates to higher net interest income. This expansion is attributed to effective loan yield management and a favorable interest rate environment, allowing for higher yields on its loan portfolio. The ability to maintain or further expand its NIM will be crucial for revenue growth.
3. Increase in Deposits, particularly Core Deposits: Growth in total deposits, especially core deposits such as money market and interest checking accounts, provides a stable and often lower-cost funding source for the bank's lending activities. This deposit growth supports balance sheet strength and facilitates further loan originations, thereby contributing to increased net interest income.
4. Expansion of Cannabis Banking Services: Parke Bancorp has strategically entered the cannabis banking sector in New Jersey, serving cannabis-related businesses. This niche market has shown significant growth in deposit balances and presents a unique opportunity for revenue generation as the legal cannabis industry expands.
5. Geographic Expansion of Lending Capabilities: While primarily focused on Southern New Jersey and the Philadelphia area, Parke Bancorp has indicated a careful expansion of its lending footprint into new geographic areas, including South Carolina. Such strategic expansions to new markets can open up new avenues for loan origination and customer acquisition, contributing to overall revenue growth.

Share Repurchases

• On August 2, 2024, Parke Bancorp's Board of Directors approved a new stock repurchase program authorizing the buyback of up to 5% of the company's common stock over the subsequent twelve months.
• For the fiscal year ended December 31, 2025, the company repurchased 300,000 shares of common stock at a total cost of $6.5 million.
• In the fiscal year ended December 31, 2024, Parke Bancorp repurchased 200,000 shares of common stock at a cost of $4.3 million.

Share Issuance

• On January 27-28, 2026, a director exercised stock options to acquire 10,000 shares of common stock at $12.29 per share.

Capital Expenditures

• For the fiscal year ended December 31, 2025, Parke Bancorp increased operational investment to support growth, enhance digital channels, and strengthen risk management capabilities.