Parke Bancorp, Inc. (PKBK) Stock Analysis

Why this analysis is different

• A sector-relative MoonshotScore — five pillars (business quality, financial safety, valuation, growth durability, momentum) re-ranked nightly against the full universe of US-listed common stocks.
• An AI Council read across up to eight perspectives — value, macro, quantitative, and momentum lenses — that shows where they disagree instead of averaging the tension away.
• Figures come straight from FMP and Yahoo Finance filings data. The AI writes the narrative around the numbers — it never edits the numbers.

Parke Bancorp, Inc. (PKBK) Financial Services Profile

Parke Bancorp, Inc., through Parke Bank, delivers personal and business financial solutions, emphasizing deposit and loan services for small to mid-sized businesses. Operating across New Jersey and Pennsylvania, the company distinguishes itself through a community-focused approach and a diverse portfolio of financial products, maintaining a steady presence in the regional banking sector.

What Is the Investment Thesis for PKBK?

With a P/E ratio of 8.89 and a profit margin of 28.1%, the company demonstrates solid profitability. A dividend yield of 2.35% offers income potential for investors. Key growth catalysts include expanding its loan portfolio and enhancing its digital banking services to attract a broader customer base. However, potential risks include increased competition from larger regional banks and the impact of fluctuating interest rates on its lending operations. The company's ability to maintain its strong asset quality and adapt to evolving customer preferences will be critical for sustained growth.

Based on FMP financials and quantitative analysis

PKBK Key Highlights

Market capitalization of $410M, indicating a solid valuation within the regional banking sector.

• P/E ratio of 8.89, suggesting the company is potentially undervalued compared to its earnings.
• Profit margin of 28.1%, reflecting efficient operations and strong profitability.
• Gross margin of 56.2%, indicating effective cost management and revenue generation.
• Dividend yield of 2.35%, providing a steady income stream for investors.

Who Are PKBK's Competitors?

PKBK is benchmarked below against 8 industry peers on price, market cap, and our AI MoonshotScore.

AI Score by Stock Expert AI · Price data: FMP / Yahoo Finance

What Are PKBK's Key Strengths?

Strong presence in local markets.

• Diversified loan portfolio.
• Solid profitability metrics.
• Experienced management team.

What Are PKBK's Weaknesses?

Limited geographic reach compared to larger banks.

• Reliance on traditional banking services.
• Smaller scale may limit investment in technology.
• Vulnerable to interest rate fluctuations.

What Could Drive PKBK Stock Higher?

Potential expansion into new markets within New Jersey and Pennsylvania.

• Continued growth in commercial and industrial lending.
• Enhancement of digital banking platform to attract new customers.

What Are the Key Risks for PKBK?

Financial-distress signal — its Altman Z-Score of -0.53 sits in the distress zone (elevated bankruptcy risk).

• Increased competition from larger regional and national banks.
• Economic downturn impacting loan quality and profitability.
• Fluctuations in interest rates affecting net interest margin.
• Regulatory changes increasing compliance costs.

What Are the Growth Opportunities for PKBK?

• Expanding the Loan Portfolio: Parke Bancorp can grow by strategically expanding its loan portfolio, particularly in commercial and industrial loans, targeting small to mid-sized businesses in its operating regions. The market for commercial loans in New Jersey and Pennsylvania is estimated at $50 billion, offering significant growth potential. This expansion should be coupled with rigorous credit risk management to maintain asset quality. Timeline: Ongoing.
• Enhancing Digital Banking Services: Investing in and enhancing its digital banking platform can attract a broader customer base, particularly younger demographics, and improve customer retention. The digital banking market is projected to reach $9.0 trillion in transaction value by 2028, presenting a substantial opportunity. This includes mobile banking apps, online bill payment, and other digital solutions. Timeline: Within 2 years.
• Increasing Deposit Base: Growing its deposit base through competitive interest rates and targeted marketing campaigns can provide a stable source of funding for lending activities. The deposit market in its operating regions is estimated at $75 billion. Offering specialized deposit products tailored to specific customer segments can further enhance deposit growth. Timeline: Ongoing.
• Strategic Branch Expansion: Expanding its branch network in underserved markets within New Jersey and Pennsylvania can increase its market presence and customer reach. Each new branch represents an opportunity to capture a larger share of the local banking market. Timeline: Within 3-5 years.
• Cross-Selling Financial Products: Leveraging its existing customer relationships to cross-sell additional financial products, such as wealth management services and insurance products, can increase revenue per customer and improve profitability. The market for wealth management services in its operating regions is estimated at $20 billion. Timeline: Ongoing.

What Are PKBK's Competitive Advantages?

• Strong local market presence in New Jersey and Pennsylvania.
• Established relationships with local businesses and communities.
• Diversified loan portfolio reduces risk.
• Focus on personalized customer service fosters loyalty.

What Does PKBK Do?

Parke Bancorp, Inc. was founded in 1999 and serves as the holding company for Parke Bank, a community bank providing financial services to individuals and small to mid-sized businesses. Headquartered in Washington Township, New Jersey, Parke Bank operates seven branch offices located in Galloway Township, Northfield, Washington Township, and Collingswood, New Jersey, as well as Philadelphia, Pennsylvania. The bank offers a range of deposit products, including checking, savings, time, money market, and individual retirement accounts, alongside certificates of deposit, catering to diverse customer needs. Its loan portfolio encompasses commercial and industrial loans, construction loans, commercial and residential real estate mortgage loans, and consumer loans, reflecting a balanced approach to lending. In addition to traditional banking services, Parke Bank provides debit cards, internet banking, and online bill payment services, enhancing customer convenience and accessibility. With a focus on personalized service and community engagement, Parke Bancorp aims to foster long-term relationships with its customers and support local economic growth.

What Products and Services Does PKBK Offer?

• Provides personal and business banking services.
• Offers checking, savings, and money market accounts.
• Provides commercial and industrial loans.
• Offers construction and real estate mortgage loans.
• Provides consumer loans.
• Offers debit cards and online banking services.
• Provides online bill payment services.

How Does PKBK Make Money?

• Generates revenue through interest income from loans.
• Earns fees from deposit accounts and other services.
• Manages risk through diversification of loan portfolio.
• Focuses on community banking to build customer relationships.

What Industry Does PKBK Operate In?

Parke Bancorp, Inc. operates within the regional banking sector, which is characterized by intense competition and evolving customer expectations. The industry is experiencing a shift towards digital banking solutions and personalized customer service. Regional banks face competition from larger national banks and fintech companies. Market trends include increasing regulatory scrutiny and the need for robust risk management practices. Parke Bancorp's focus on community banking and diverse loan portfolio positions it to capitalize on local market opportunities while navigating industry challenges.

Who Are PKBK's Key Customers?

• Individuals seeking personal banking services.
• Small to mid-sized businesses requiring commercial loans.
• Real estate developers needing construction financing.
• Consumers seeking mortgage and personal loans.

Company Profile

Parke Bancorp, Inc. operates in the Banks - Regional industry within the Financial Services sector. It is headquartered in Washington Township, US. The company is led by CEO Vito S. Pantilione. PKBK has traded publicly since 2003.

Return on equity for Parke Bancorp, Inc. stands at 13.0%, a gauge of how efficiently it converts shareholder capital into profit. Return on assets is 1.9%, showing how much profit it generates from its asset base. PKBK trades at a trailing price-to-earnings ratio of 8.89, below the Financial Services sector average of ~17.50x. Its free cash flow yield is 11.7%, a gauge of the cash the business throws off relative to its market value. A current ratio of 0.07 means current liabilities exceed short-term assets, a liquidity point worth watching. Its earnings yield is 10.9%, the inverse of the P/E and a quick read on earnings relative to price.

PKBK Valuation & Market Position

With a $410M market cap, Parke Bancorp, Inc. sits in the small-cap segment of the market. Relative to its peer group, PKBK's quantitative score of 91/100 is roughly in line with the peer average of 91/100.

Quarterly Financial Performance: Parke Bancorp, Inc.

Revenue for Parke Bancorp, Inc. came in at $3.9M during Q2 FY2026, a 89.6% contraction versus the preceding quarter. The company recorded net income of $12.2M, with diluted EPS of $1.03. Revenue has contracted over three consecutive quarters, which investors in this small-cap Financial Services stock should monitor closely. Across the four most recent quarters, PKBK averaged $0.96 in diluted EPS.

Parke Bancorp, Inc.'s Piotroski F-Score is 6/9, a 9-point checklist of profitability, leverage and efficiency — a middling fundamental profile. Its Altman Z-Score of -0.53 places it in the distress zone, a signal of elevated financial risk.

Over the past six months, Parke Bancorp, Inc. insiders filed 16 SEC Form 4 transactions — 9 sales and 7 purchases. On net that is roughly 14K shares disposed (about $435K), a signal worth weighing alongside the fundamentals.

PKBK Financials

PKBK Latest News

PKBK Analyst Consensus

PKBK MoonshotScore

Common Questions About PKBK (Financial Services)

Disclaimer: This content is for informational purposes only and does not constitute investment advice. Always do your own research and consult a financial advisor.

Official Resources