UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                              WASHINGTON, DC 20549

                                    FORM 10-K

                                  ANNUAL REPORT
                        PURSUANT TO SECTIONS 13 OR 15(D)
                     OF THE SECURITIES EXCHANGE ACT OF 1934
(Mark One)
[X]  ANNUAL REPORT  PURSUANT TO SECTION 13 OR 15(d) OF THE  SECURITIES  EXCHANGE
     ACT OF 1934

For the fiscal year ended: December 31, 2006 or

[ ]  TRANSITION  REPORT  PURSUANT  TO  SECTION  13 OR  15(d)  OF THE  SECURITIES
     EXCHANGE ACT OF 1934

For the transition period from ____________ to ____________

                          Commission File No. 000-51338

                               PARKE BANCORP, INC.
             (Exact Name of Registrant as Specified in Its Charter)
<TABLE>
<CAPTION>

<S>                                                                                         <C>
                               NEW JERSEY                                                   65-1241959
(State or Other Jurisdiction of Incorporation or Organization)              (IRS Employer Identification No.)

            601 DELSEA DRIVE, WASHINGTON TOWNSHIP, NEW JERSEY                                  08080
                (Address of Principal Executive Offices)                                    (Zip Code)
</TABLE>

Registrant's telephone number, including area code: 856-256-2500

           Securities registered pursuant to Section 12(b) of the Act:

      Title of each class             Name of each exchange on which registered
      -------------------             -----------------------------------------
COMMON STOCK, $0.10 PAR VALUE                 THE NASDAQ STOCK MARKET LLC

        Securities registered pursuant to Section 12(g) of the Act: NONE

Indicate by check mark if the  registrant is a well-known  seasoned  issuer,  as
defined in Rule 405 of the Securities Act.
                                                                  YES [ ] NO [X]

Indicate  by  check  mark if the  registrant  is not  required  to file  reports
pursuant to Section 13 or Section 15(d) of the Act.
                                                                  YES [ ] NO [X]

Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the  preceding 12 months (or for such  shorter  period that the  registrant  was
required  to file  such  reports),  and  (2) has  been  subject  to such  filing
requirements for the past 90 days. YES [X] NO [ ]

Indicate by check mark if disclosure of delinquent  filers  pursuant to Item 405
of Regulation  S-K is not contained  herein,  and will not be contained,  to the
best of registrant's  knowledge,  in definitive proxy or information  statements
incorporated by reference in Part III of this Form 10-K or any amendment to this
Form 10-K. [X]

Indicate by check mark whether the registrant is a large  accelerated  filer, an
accelerated  filer, or a  non-accelerated  filer. See definition of "accelerated
filer and large  accelerated  filer" in Rule 12b-2 of the Exchange  Act.  (Check
one):

Large accelerated  filer [ ] Accelerated  filer [ ] Non-accelerated  filer [X]

Indicate by check mark whether the  registrant is a shell company (as defined by
Rule 12b-2 of the Exchange Act).                                  YES [ ] NO [X]

The  aggregate  market value of the voting stock held by  non-affiliates  of the
Registrant,  based on the  closing  price of the  Registrant's  common  stock as
quoted on the Nasdaq Capital Market on June 30, 2006,  was  approximately  $29.2
million.

     As of March 22, 2007 there were issued and outstanding  2,873,860 shares of
the Registrant's common stock.

                       DOCUMENTS INCORPORATED BY REFERENCE

1.   Portions  of the Annual  Report to  Shareholders  for the Fiscal Year Ended
     December 31, 2006. (Parts II and IV)

2.   Portions  of  the  Proxy   Statement   for  the  2007  Annual   Meeting  of
     Shareholders. (Parts II and III)
<PAGE>
                               PARKE BANCORP, INC.

                                    FORM 10-K

                   FOR THE FISCAL YEAR ENDED DECEMBER 31, 2006
<TABLE>
<CAPTION>
                                      INDEX

                                                                                                                  Page
                                                                                                                  ----
<S>           <C>                                                                                                  <C>
Part I
------
Item 1.       Business............................................................................................. 1
Item 1A.      Risk Factors.........................................................................................17
Item 1B.      Unresolved Staff Comments............................................................................19
Item 2.       Properties...........................................................................................19
Item 3.       Legal Proceedings....................................................................................20
Item 4.       Submission of Matters to a Vote of Security Holders..................................................21

Part II
-------
Item 5.       Market for Registrant's Common Equity, Related Stockholder Matters and
                  Issuer Purchases of Equity Securities............................................................21
Item 6.       Selected Financial Data..............................................................................22
Item 7.       Management's Discussion and Analysis of Financial Condition and Results of Operations................22
Item 7A.      Quantitative and Qualitative Disclosures About Market Risk...........................................22
Item 8.       Financial Statements and Supplementary Data..........................................................22
Item 9.       Changes in and Disagreements With Accountants on Accounting and Financial Disclosure.................22
Item 9A.      Controls and Procedures..............................................................................22
Item 9B.      Other Information....................................................................................22

Part III
--------
Item 10.      Directors, Executive Officers and Corporate Governance...............................................23
Item 11.      Executive Compensation...............................................................................23
Item 12.      Security Ownership of Certain Beneficial Owners and Management and
                  Related Stockholder Matters......................................................................23
Item 13.      Certain Relationships and Related Transactions, and Director Independence............................24
Item 14.      Principal Accounting Fees and Services...............................................................24

Part IV
-------
Item 15.      Exhibits and Financial Statement Schedules...........................................................24

</TABLE>

<PAGE>
                                     PART I

FORWARD-LOOKING STATEMENTS

     Parke Bancorp,  Inc. (the  "Company") may from time to time make written or
oral  "forward-looking   statements,"  including  statements  contained  in  the
Company's  filings with the Securities and Exchange  Commission  (including this
Annual  Report  on Form  10-K  and  the  exhibits  hereto),  in its  reports  to
shareholders and in other communications by the Company,  which are made in good
faith by the Company  pursuant to the "safe  harbor"  provisions  of the Private
Securities Litigation Reform Act of 1995.

     These forward-looking  statements involve risks and uncertainties,  such as
statements  of the  Company's  plans,  objectives,  expectations,  estimates and
intentions,  that are subject to change based on various important factors (some
of which are beyond the Company's control). The following factors, among others,
could cause the Company's  financial  performance to differ  materially from the
plans,  objectives,  expectations,  estimates and  intentions  expressed in such
forward-looking statements: the strength of the United States economy in general
and the  strength of the local  economies  in which the  Company's  wholly-owned
subsidiary,  Parke Bank (the "Bank"),  conducts operations;  the effects of, and
changes in, trade,  monetary and fiscal  policies and laws,  including  interest
rate  policies  of the  Board  of  Governors  of  the  Federal  Reserve  System,
inflation,  interest  rates,  market  and  monetary  fluctuations;   the  timely
development  of and  acceptance of new products and services of the Bank and the
perceived  overall value of these products and services by users,  including the
features,  pricing and quality  compared to competitors'  products and services;
the impact of changes in financial  services'  laws and  regulations  (including
laws  concerning  taxes,  banking,  securities  and  insurance);   technological
changes;  changes in consumer spending and saving habits; and the success of the
Company at managing the risks resulting from these factors.

     The Company cautions that the listed factors are not exclusive. The Company
does not undertake to update any forward-looking  statement,  whether written or
oral, that may be made from time to time by or on behalf of the Company.

ITEM 1.       BUSINESS

     The Company is a bank holding  company  incorporated  under the laws of the
State of New Jersey in January 2005 for the sole purpose of becoming the holding
company of the Bank.  The Company  commenced  operations  on June 1, 2005,  upon
completion of the  reorganization  of the Bank into the holding  company form of
organization  following  approval of the  reorganization  by shareholders of the
Bank at its 2005 Annual  Meeting of  Shareholders.  The  Company's  business and
operations primarily consist of its ownership of the Bank.

     The Bank is a commercial  bank,  which commenced  operations on January 28,
1999. The Bank is chartered by the New Jersey  Department of Banking and insured
by the Federal Deposit  Insurance  Corporation  ("FDIC").  Parke Bancorp and the
Bank maintain their principal offices at 601 Delsea Drive,  Washington Township,
New Jersey.  The Bank also conducts  business  through offices in Northfield and
Washington Township, New Jersey, and in Philadelphia, Pennsylvania. In addition,
the Bank also has a Loan Production  Office in Millville,  New Jersey maintained
exclusively  for loan  production.  The  Bank is a full  service  bank,  with an
emphasis on providing  personal and business  financial  services to individuals
and small to mid-sized businesses in Gloucester,  Atlantic and Cape May Counties
in New Jersey and the Philadelphia  area in Pennsylvania.  At December 31, 2006,
the Company had assets of $360.0 million,  loans of $310.6 million,  deposits of
$289.9 million and shareholders' equity of $30.7 million.

                                       1
<PAGE>
     The Bank focuses its commercial  loan  originations  on small and mid-sized
business (generally up to $25 million in annual sales). Commercial loan products
include  residential  and commercial  real estate  construction  loans;  working
capital loans and lines of credit;  demand,  term and time loans; and equipment,
inventory and accounts receivable financing.  Residential  construction loans in
tract  development are also included in the commercial  loan category.  The Bank
also offers a range of deposit products to its commercial customers.  Commercial
customers  also have the ability to use overnight  depository,  ACH activity and
wire transfer service, all at reduced rates.

     The  Bank's  retail  banking  activities  emphasize  consumer  deposit  and
checking  accounts.  An extensive range of these services is offered by the Bank
to meet the varied  needs of its  customers  in all age  groups.  In addition to
traditional  products and services,  the Bank offers  contemporary  products and
services, such as debit cards and Internet banking. Retail lending activities by
the Bank include residential  mortgage loans, home equity lines of credit, fixed
rate second mortgages, new and used auto loans and overdraft protection.

MARKET AREA

     Substantially  all of the Bank's  business is with  customers in its market
areas of Southern New Jersey and the Philadelphia area of Pennsylvania.  Most of
the Bank's customers are individuals and small and medium-sized businesses which
are  dependent  upon the  regional  economy.  Adverse  changes in  economic  and
business  conditions  in the Bank's  markets could  adversely  affect the Bank's
borrowers, their ability to repay their loan and to borrow additional funds, and
consequently the Bank's financial condition and performance.

     Additionally,  most of the Bank's loans are secured by real estate  located
in Southern New Jersey and the  Philadelphia  area. A decline in local  economic
conditions could adversely affect the values of such real estate.  Consequently,
a decline in local  economic  conditions may have a greater effect on the Bank's
earnings  and  capital  than on the  earnings  and  capital of larger  financial
institutions whose real estate loan portfolios are geographically diverse.

COMPETITION

     The Bank faces significant competition, both in making loans and attracting
deposits.  The Bank's  competition  in both areas comes  principally  from other
commercial banks,  thrift and savings  institutions,  including savings and loan
associations  and credit  unions,  and other  types of  financial  institutions,
including  brokerage firms and credit card companies.  The Bank faces additional
competition  for deposits  from  short-term  money market mutual funds and other
corporate and government securities funds.

     Most of the  Bank's  competitors,  whether  traditional  or  nontraditional
financial  institutions,   have  a  longer  history  and  significantly  greater
financial  and  marketing  resources  than does the Bank.  Among the  advantages
certain of these  institutions  have over the Bank are their  ability to finance
wide-ranging and effective advertising campaigns,  to access international money
markets and to allocate their  investment  resources to regions of highest yield
and demand.  Major banks  operating  in the  primary  market area offer  certain
services,  such as  international  banking  and  trust  services,  which are not
offered directly by the Bank.

     In  commercial  transactions,  the Bank's legal  lending  limit to a single
borrower enables the Bank to compete effectively for the business of individuals
and smaller enterprises. However, the Bank's legal lending limit is considerably
lower  than that of various  competing  institutions,  which have  substantially
greater capitalization. The Bank has a relatively smaller capital base than most
other competing  institutions  which,  although above regulatory  minimums,  may
constrain the Bank's effectiveness in competing for loans.

                                       2
<PAGE>
LENDING ACTIVITIES

     COMPOSITION OF LOAN PORTFOLIO. Set forth below is selected data relating to
the  composition  of the  Bank's  loan  portfolio  by type of loan at the  dates
indicated.  (1) Except as set forth  below,  the Bank had no  concentrations  of
loans exceeding 10% of its loans.
<TABLE>
<CAPTION>
                                                                     At December 31,
                                     ---------------------------------------------------------------------------------
                                                2006                        2005                        2004
                                     ------------------------    ------------------------    -------------------------
                                        Amount        Percent        Amount       Percent        Amount        Percent
                                        ------        -------        ------       -------        ------        -------
<S>                                  <C>                 <C>     <C>                  <C>    <C>                  <C>
Commercial.......................    $ 13,436,690        4.3%    $  11,053,481        4.3%   $   9,708,142        5.1%
Real estate construction:
   Residential...................        2,464,820       0.8         1,174,233        0.5        1,252,811        0.7
   Commercial....................       69,254,592      22.3        70,156,767       27.1       37,270,464       19.8
Real estate mortgage:
   Residential...................       19,727,682       6.4        17,308,735        6.7       16,360,109        8.7
   Commercial....................      198,667,009      64.0       154,287,964       59.6      120,051,646       63.6
Consumer.........................        7,004,513       2.2         5,053,908        1.8        3,963,818        2.1
                                     -------------     -----     -------------      -----    -------------      -----
     Total Loans.................    $ 310,555,306     100.0%    $ 259,035,088      100.0%   $ 188,606,990      100.0%
                                     =============     =====     =============      =====    =============      =====

 <CAPTION>
                                                         At December 31,
                                        ----------------------------------------------------
                                                   2003                        2002
                                        ------------------------    ------------------------
                                            Amount       Percent        Amount       Percent
                                            ------       -------        ------       -------
<S>                                     <C>                  <C>    <C>                  <C>
Commercial.......................       $   8,799,899        6.0%   $   7,035,669        7.4%
Real estate construction:
   Residential...................           2,164,811        1.5        1,370,266        1.4
   Commercial....................          29,896,562       20.4       17,122,397       18.0
Real estate mortgage:
   Residential...................          18,013,087       12.3       13,188,780       13.9
   Commercial....................          84,054,063       57.5       53,503,768       56.3
Consumer.........................           3,405,909        2.3        2,874,330        3.0
                                        -------------      -----    -------------      -----
     Total Loans.................       $ 146,334,331      100.0%   $  95,095,210      100.0%
                                        =============      =====    =============      ======
<FN>
------------------------------------
(1)  Amounts  presented  include  adjustments for related  unamortized  deferred
     costs and fees.
</FN>
</TABLE>

                                       3
<PAGE>

     LOAN MATURITY.  The following table sets forth the contractual  maturity of
certain loan categories at December 31, 2006.
<TABLE>
<CAPTION>
                                                                   Due after
                                                Due within        1 through 5         Due after
                                                  1 year             years             5 years            Total
                                                  ------             -----             -------            -----
<S>                                           <C>               <C>                 <C>               <C>
Commercial................................    $   9,622,980     $    3,813,710      $          -      $  13,436,690
Real estate construction:
   Residential............................        2,464,820                  -                 -          2,464,820
   Commercial.............................       54,545,380          7,262,395         7,446,817         69,254,592
Real estate mortgage:
   Residential............................                -                  -                 -         19,727,682
   Commercial.............................                -                  -                 -        198,667,009
Consumer..................................                -                  -                 -          7,004,513
                                              -------------      -------------      ------------      -------------
     Total loans..........................    $ 180,178,091      $  73,340,250      $ 57,036,965      $ 310,555,306
                                              =============      =============      ============      =============
</TABLE>

     The  following  table sets forth the dollar amount of loans in certain loan
categories  due  one  year  or  more  after   December  31,  2006,   which  have
predetermined  interest  rates and which have  floating or  adjustable  interest
rates.
<TABLE>
<CAPTION>
                                                                             Floating or
                                                      Fixed Rates(1)       Adjustable Rates          Total
                                                      --------------       ----------------          -----
<S>                                                   <C>                   <C>                  <C>
Commercial.........................................   $   3,128,630         $    685,080         $   3,813,701
Real estate construction:
   Residential.....................................               -                    -                     -
   Commercial......................................      14,709,212                    -            14,709,212
Real estate mortgage:
   Residential.....................................       9,305,544            8,472,479            17,778,023
   Commercial......................................      29,250,997           57,831,290            87,082,287
Consumer...........................................       2,446,450            4,547,533             6,993,983
                                                      -------------         ------------         -------------
     Total loans...................................   $  58,840,833         $ 71,536,382         $ 130,377,215
                                                      =============         ============         =============
<FN>
----------
(1)  Construction loans are adjustable rate loans, however, due to interest rate
     floors, they have been reclassified as fixed rate loans.
</FN>
</TABLE>

     COMMERCIAL LOANS. The Bank originates  secured loans for business purposes.
Loans are made to provide  working capital to businesses in the form of lines of
credit,  which may be secured by real estate,  accounts  receivable,  inventory,
equipment or other assets.  The financial  condition and cash flow of commercial
borrowers  are  closely  monitored  by the  submission  of  corporate  financial
statements,  personal financial statements and income tax returns. The frequency
of  submissions  of  required  financial  information  depends  on the  size and
complexity of the credit and the  collateral  that secures the loan.  The Bank's
general  policy is to obtain  personal  guarantees  from the  principals  of the
commercial  loan  borrowers.  Such loans are made to  businesses  located in the
Bank's market area.

     Commercial  business loans generally  involve a greater degree of risk than
residential mortgage loans and carry larger loan balances. This increased credit
risk is a result of several factors, including the concentration of principal in
a limited number of loans and borrowers, the mobility of collateral, the effects
of general  economic  conditions and the increased  difficulty of evaluating and
monitoring  these  types of loans.  Unlike  residential  mortgage  loans,  which
generally are made on the basis of the borrower's ability to make repayment from
his or her  employment  and other income and which are secured by real  property
whose value tends to be more easily  ascertainable,  commercial  business  loans
typically are made on the basis of the borrower's ability to make repayment from
the cash flow of the borrower's business.

                                       4
<PAGE>

As a result, the availability of funds for the repayment of commercial  business
loans may be  substantially  dependent on the success of the business itself and
the general economic  environment.  If the cash flow from business operations is
reduced, the borrower's ability to repay the loan may be impaired.

     REAL ESTATE DEVELOPMENT AND CONSTRUCTION LOANS. The Bank has emphasized the
origination of construction  loans to individuals and real estate  developers in
its market area. The advantages of  construction  lending are that the market is
typically less competitive than more standard  mortgage  products,  the interest
rate  typically  charged is a variable  rate,  which permits the Bank to protect
against sudden changes in its costs of funds,  and the fees or "points"  charged
by the  Bank to its  customers  can be  amortized  over  the  shorter  term of a
construction  loan,  typically,  one to two  years,  which  permits  the Bank to
recognize  income  received over a shorter period of time. The Bank from time to
time structures  construction  loans in excess of the legal lending limit of the
Bank,  with  respect  to which the Bank  sells  participation  interests  in the
construction  loans  to other  lenders,  while  maintaining  and  servicing  the
construction loan.

     The  Bank  provides  interim  real  estate   acquisition   development  and
construction  loans to builders  and  developers.  Real estate  development  and
construction  loans to provide  interim  financing  on the property are based on
acceptable  percentages of the appraised value of the property securing the loan
in each case. Real estate  development and construction loan funds are disbursed
periodically  at  pre-specified  stages of  completion.  Interest rates on these
loans are generally  adjustable.  The Bank  carefully  monitors these loans with
on-site inspections and control of disbursements. These loans are generally made
on properties located in the Bank's market area.

     Development  and  construction  loans are secured by the  properties  under
development and personal guarantees are typically  obtained.  Further, to assure
that reliance is not placed solely in the value of the underlying property,  the
Bank  considers the financial  condition and  reputation of the borrower and any
guarantors,  the amount of the  borrower's  equity in the  project,  independent
appraisals, costs estimates and pre-construction sale information.

     Loans to residential builders are for the construction of residential homes
for which a binding sales contract exists and the  prospective  buyers have been
pre-qualified for permanent mortgage financing.  Loans to residential developers
are made only to developers with a proven sales record.  Generally,  these loans
are  extended  only when the  borrower  provides  evidence  that the lots  under
development will be sold to potential buyers satisfactory to the Bank.

     The Bank also originates  loans to individuals  for  construction of single
family  dwellings.  These  loans are for the  construction  of the  individual's
primary   residence.   They  are  typically   secured  by  the  property   under
construction,   occasionally  include  additional  collateral  (such  as  second
mortgage on the borrower's present home), and commonly have maturities of six to
twelve months.

     Construction financing is labor intensive for the Bank, requiring employees
of the Bank to expend substantial time and resources in monitoring and servicing
each  construction  loan to  completion.  Construction  financing  is  generally
considered to involve a higher degree of risk of loss than  long-term  financing
on  improved,  occupied  real  estate.  Risk of loss on a  construction  loan is
dependent  largely upon the accuracy of the initial  estimate of the  property's
value  at  completion  of  construction   and   development,   the  accuracy  of
projections,  such as the sales of homes or the  future  leasing  of  commercial
space,  and  the  accuracy  of  the  estimated  cost  (including   interest)  of
construction.  Substantial deviations can occur in such projections.  During the
construction  phase,  a number  of  factors  could  result  in  delays  and cost
overruns.  If the estimate of  construction  costs proves to be inaccurate,  the
Bank may be required to advance funds beyond the amount originally  committed to
permit  completion  of the  development.  If the  estimate of value proves to be
inaccurate, the Bank may be confronted, at or prior to the maturity of the loan,

                                       5
<PAGE>

with a project having a value which is  insufficient  to assure full  repayment.
Also,  a  construction  loan that is in default can cause  problems for the Bank
such as designating  replacement builders for a project,  considering  alternate
uses for the project and site and  handling  any  structural  and  environmental
issues that might arise.

     COMMERCIAL REAL ESTATE MORTGAGE LOANS.  The Bank originates  mortgage loans
secured by commercial  real estate.  Such loans are primarily  secured by office
buildings,  retail  buildings,  warehouses and general  purpose  business space.
Although  terms  may  vary,  the  Bank's  commercial  mortgages  generally  have
maturities of twenty years, but re-price within five years.

     Loans secured by commercial real estate are generally  larger and involve a
greater degree of risk than one- to four-family  residential  mortgage loans. Of
primary  concern in  commercial  and  multi-family  real  estate  lending is the
borrower's  creditworthiness  and the feasibility and cash flow potential of the
project.  Payments on loans secured by income  properties are often dependent on
successful operation or management of the properties.  As a result, repayment of
such loans may be subject to a greater extent than residential real estate loans
to adverse conditions in the real estate market or the economy.

     The Bank  seeks to reduce the risks  associated  with  commercial  mortgage
lending by generally  lending in its primary market area and obtaining  periodic
financial  statements  and tax  returns  from  borrowers.  It is also the Bank's
general  policy  to  obtain  personal  guarantees  from  the  principals  of the
borrowers and assignments of all leases related to the collateral.

     RESIDENTIAL REAL ESTATE MORTGAGE LOANS. The Bank originates  adjustable and
fixed-rate  residential  mortgage  loans.  Such  mortgage  loans  are  generally
originated under terms, conditions and documentation acceptable to the secondary
mortgage  market.  Although  the Bank has  placed  all of these  loans  into its
portfolio,  a  substantial  majority of such loans can be sold in the  secondary
market or pledged for potential borrowings.

     CONSUMER LOANS.  The Bank offers a variety of consumer  loans.  These loans
are typically secured by residential real estate or personal property, including
automobiles.  Home equity loans  (closed-end  and lines of credit) are typically
made up to 80% of the appraised or assessed  value of the property  securing the
loan in each case,  less the amount of any existing prior liens on the property,
and generally  have maximum  terms of ten years,  although the Bank does offer a
90% loan to value  product if certain  conditions  related to the  borrower  and
property are  satisfied.  The interest  rates on second  mortgages are generally
fixed, while interest rates on home equity lines of credit are variable.

     LOANS TO ONE BORROWER.  Federal  regulations limit loans to one borrower in
an amount equal to 15% of unimpaired capital and unimpaired surplus. At December
31, 2006, the Bank's loan to one borrower limit was  approximately  $6.7 million
and the Bank had 13 borrowers  with loan balances in excess of $5.0 million.  At
December  31,  2006,  the Bank's  largest  loan to one  borrower  was a loan for
construction and development,  with a balance of $6.7 million and was secured by
real estate.  This loan is scheduled to be funded in stages after the houses are
sold. At December 31, 2006,  this loan was current and  performing in accordance
with the terms of the loan agreement.

     The size of loans which the Bank can offer to  potential  borrowers is less
than  the  size of  loans  which  many of the  Bank's  competitors  with  larger
capitalization  are able to offer.  The Bank may  engage in loan  participations
with  other  banks  for  loans in excess of the  Bank's  legal  lending  limits.
However, no assurance can be given that such participations will be available at
all or on terms which are favorable to the Bank and its customers.

                                       6
<PAGE>

NON-PERFORMING AND PROBLEM ASSETS

     NON-PERFORMING ASSETS.  Non-accrual loans are those on which the accrual of
interest has ceased. Loans are generally placed on non-accrual status if, in the
opinion of management,  collection is doubtful, or when principal or interest is
past due 90 days or more unless the collateral is considered sufficient to cover
principal  and interest and the loan is in the process of  collection.  Interest
accrued,  but not collected at the date a loan is placed on non-accrual  status,
is reversed and charged against  interest  income.  Subsequent cash receipts are
applied  either to the  outstanding  principal  or recorded as interest  income,
depending on management's assessment of ultimate collectability of principal and
interest. Loans are returned to an accrual status when the borrower's ability to
make  periodic  principal  and interest  payments has returned to normal  (i.e.,
brought current with respect to principal or interest or  restructured)  and the
paying  capacity of the  borrower  and/or the  underlying  collateral  is deemed
sufficient to cover principal and interest.

     Impaired loans are measured  based on the present value of expected  future
discounted  cash  flows,  the market  price of the loan or the fair value of the
underlying  collateral if the loan is collateral  dependent.  The recognition of
interest income on impaired loans is the same as for non-accrual loans discussed
above.

     The following table sets forth information  regarding  non-accrual loans at
the  dates  indicated.  As of the  dates  indicated,  the  Bank did not have any
troubled   restructurings  as  defined  in  Statement  of  Financial  Accounting
Standards No. 15.
<TABLE>
<CAPTION>
                                                                                At December 31,
                                                     ---------------------------------------------------------------------
                                                        2006           2005           2004          2003           2002
                                                     ----------    -----------    -----------   -----------    -----------
<S>                                                 <C>            <C>            <C>           <C>            <C>
Loans accounted for on a non-accrual basis:
Commercial.......................................   $    90,850    $    50,000    $         -   $         -    $         -
Real estate construction:
   Residential...................................             -              -        240,816       289,257        289,000
   Commercial....................................             -              -              -             -              -
Real estate mortgage:
   Residential...................................             -         20,000              -       504,878        742,067
   Commercial....................................       686,933      1,865,000              -             -              -
Consumer.........................................        11,021              -              -             -              -
                                                     ----------    -----------    -----------   -----------    -----------
     Total.......................................       788,804      1,935,000        240,816       794,135      1,031,067
                                                     ----------    -----------    -----------   -----------    -----------

Accruing loans delinquent 90 days or more:
Commercial.......................................             -              -              -             -              -
Real estate construction:
   Residential...................................             -              -              -             -              -
   Commercial....................................             -              -              -             -              -
Real estate mortgage:
   Residential...................................             -              -         54,859             -              -
   Commercial....................................       267,150        665,000              -             -         50,000
Consumer.........................................             -              -              -             -              -
                                                     ----------    -----------    -----------   -----------    -----------
     Total.......................................       267,150        665,000         54,859             -         50,000
                                                     ----------    -----------    -----------   -----------    -----------
         Total non-performing loans..............    $1,055,954    $ 2,590,000    $   295,675   $   794,135    $ 1,081,067
                                                     ==========    ===========    ===========   ===========    ===========

Total non-performing loans as a
   percentage of net loans.......................          0.34%          1.01%          0.16%         0.55%          1.15%
                                                     ==========    ===========    ===========   ===========    ===========
</TABLE>

     When a loan is more than 30 days  delinquent,  the borrower is contacted by
mail or phone and payment is requested. If the delinquency continues, subsequent
efforts are made to contact the delinquent borrower.  In certain instances,  the
Registrant may modify the loan or grant a limited moratorium on loan payments to
enable the borrower to reorganize their financial affairs. If the loan

                                       7
<PAGE>

continues in a delinquent  status for 90 days or more, the Registrant  generally
will initiate foreclosure proceedings.

     Loans are generally  placed on non-accrual  status when either principal or
interest is 90 days or more past due.  Interest accrued and unpaid at the time a
loan is placed on non-accrual  status is charged against interest  income.  Such
interest,  when  ultimately  collected,  is  credited  to income  in the  period
received. At December 31, 2006, the Bank had $788,804 of loans that were held on
a non-accrual  basis.  Gross interest income of $51,000 would have been recorded
during the year ended  December 31, 2006 if these loans had been  performing  in
accordance  with their terms.  Interest  income of $71,791 was recorded on these
loans during the year ended  December 31, 2006.  At December 31, 2006,  the Bank
did not have any  loans  not  classified  as  non-accrual,  90 days  past due or
restructured  but where known  information  about  possible  credit  problems of
borrowers  caused  management to have serious  concerns as to the ability of the
borrowers  to  comply  with  present  loan  repayment  terms  and may  result in
disclosure as non-accrual, 90 days past due or restructured.

     CLASSIFIED ASSETS.  Federal Regulations provide for a classification system
for problem assets of insured  institutions.  Under this Classification  System,
problem assets of insured  institutions are classified as substandard,  doubtful
or loss.  An asset is  considered  "substandard"  if it  involves  more  than an
acceptable level of risk due to a deteriorating financial condition, unfavorable
history of the borrower,  inadequate payment capacity,  insufficient security or
other negative  factors within the industry,  market or management.  Substandard
loans have clearly defined  weaknesses  which can jeopardize the timely payments
of the loan.

     Assets  classified as "doubtful"  exhibit all of the weakness defined under
the Substandard  Category but with enough risk to present a high  probability of
some principal loss on the loan, although not yet fully ascertainable in amount.
Assets  classified as "loss" are those  considered  un-collectable  or of little
value, even though a collection effort may continue after the classification and
potential charge-off.

     The Bank also internally  classifies  certain assets as "special  mention;"
such assets do not demonstrate a current potential for loss but are monitored in
response to negative trends which, if not reversed,  could lead to a substandard
rating in the future.

     When  an  insured   institution   classifies   problem   assets  as  either
"substandard"  or  "doubtful,"  it may establish  specific  allowances  for loan
losses in an amount deemed  prudent by management.  When an insured  institution
classifies  problem  assets as "loss," it is  required  either to  establish  an
allowance  for losses equal to 100% of that portion of the assets so  classified
or to charge off such amount.

     At December 31, 2006, the Bank had assets classified as follows:

Special mention.......................................  $6,308,539
Substandard...........................................   2,369,550
Doubtful..............................................      11,021
Loss..................................................           -
                                                        ----------
      Total...........................................  $8,689,110
                                                        ----------

     FORECLOSED  REAL  ESTATE.  Real estate  acquired by the Bank as a result of
foreclosure or by deed in lieu of foreclosure is classified as real estate owned
until  such  time as it is sold.  When  real  estate  owned is  acquired,  it is
recorded at the lower of the unpaid principal balance of the related loan or its
fair value less disposal  costs.  Any write-down of real estate owned is charged
to  operations.  At December 31, 2006,  the Bank had real estate owned  totaling
$1.25 million, which is valued at current fair market value.


                                       8
<PAGE>
     ALLOWANCE  FOR LOSSES ON LOANS AND REAL ESTATE  OWNED.  It is the policy of
management  to provide  for losses on  unidentified  loans in its  portfolio  in
addition  to  classified  loans.  A  provision  for loan  losses is  charged  to
operations  based on management's  evaluation of the inherent losses that may be
incurred in the Bank's loan  portfolio.  Management also  periodically  performs
valuations of Real Estate Owned and establishes allowances to reduce book values
of the properties to their net realizable values when necessary.

     Management's judgment as to the level of future losses on existing loans is
based on its internal review of the loan portfolio, including an analysis of the
borrowers'  current  financial  position,   the  consideration  of  current  and
anticipated   economic  conditions  and  their  potential  effects  on  specific
borrowers.  In determining the collectability of certain loans,  management also
considers the fair value of any  underlying  collateral.  However,  management's
determination  of the  appropriate  allowance  level is based  upon a number  of
assumptions about future events, which are believed to be reasonable,  but which
may or may not prove valid.  Thus, there can be no assurance that charge-offs in
future period will not exceed the  allowance for loan losses or that  additional
increases in the allowance for loan losses will not be required.

     The  following  table sets  forth  information  with  respect to the Bank's
allowance for losses on loans at the dates and for the periods indicated.
<TABLE>
<CAPTION>
                                                                     For the Year Ended December 31,
                                             -------------------------------------------------------------------------
                                                  2006             2005         2004           2003            2002
                                             ------------    ------------   ------------   ------------    -----------
<S>                                          <C>             <C>            <C>            <C>             <C>
Balance at beginning of period...............$  3,573,812    $  2,620,651   $  2,256,070   $  1,333,000    $   834,483
Charge-offs:
Commercial...................................           -               -              -              -              -
Real estate construction:
   Residential...............................           -               -              -              -              -
   Commercial................................           -        (227,001)             -              -              -
Real estate mortgage:
   Residential...............................           -               -       (460,743)             -              -
   Commercial................................           -               -              -              -              -
Consumer.....................................      (2,500)              -              -         (1,000)             -
                                             ------------    ------------   ------------   ------------    -----------
     Total charge-offs:......................      (2,500)       (227,001)      (460,743)        (1,000)             -
                                             ------------    ------------   ------------   ------------    -----------

Recoveries:
Commercial...................................           -               -              -              -              -
Real estate construction:
   Residential...............................           -               -              -              -              -
   Commercial................................           -               -              -              -              -
Real estate mortgage:
   Residential...............................           -               -              -              -              -
   Commercial................................           -               -              -              -              -
Consumer.....................................           -               -              -          1,000              -
                                             ------------    ------------   ------------   ------------    -----------
     Total recoveries:.......................           -               -              -          1,000              -
                                             ------------    ------------   ------------   ------------    -----------

Net charge-offs..............................      (2,500)       (227,001)      (460,743)             -              -
Provision for loan losses....................     939,692       1,180,162        825,324        923,070        498,517
                                             ------------    ------------   ------------   ------------    -----------
Balance at end of period.....................$  4,511,004    $  3,573,812   $  2,620,651   $  2,256,070    $ 1,333,000
                                             ============    ============   ============   ============    ===========
Period-end loans outstanding (net of
   deferred costs/fees)......................$310,555,306    $259,035,088   $188,606,990   $146,344,331    $95,095,210
                                             ============    ============   ============   ============    ===========
Average loans outstanding....................$286,691,000    $223,821,300   $154,794,200   $120,796,806    $78,245,329
                                             ============    ============   ============   ============    ===========
Allowance as a percentage of period
   end loans.................................        1.45%           1.38%          1.39%          1.54%          1.40%
                                             ============    ============   ============   ============    ===========
Net loans charged off as a percentage of
   average loans outstanding.................        0.00%           1.10%          0.30%          0.00%          0.00%
                                             ============    ============   ============   ============    ===========
</TABLE>

                                       9
<PAGE>
     ALLOCATION OF ALLOWANCE FOR LOAN LOSSES. The following table sets forth the
allocation of the Bank's allowance for loan losses by loan category at the dates
indicated.  The  portion  of the loan  loss  allowance  allocated  to each  loan
category does not represent the total available for future losses that may occur
within the loan category as the total loan loss allowance is a valuation reserve
applicable to the entire loan portfolio.
<TABLE>
<CAPTION>
                                                                  At December 31,
                             ----------------------------------------------------------------------------------------------------
                                  2006                 2005              2004                  2003               2002
                             --------------------- ------------------ -------------------  ------------------- ------------------
                                       Percent of          Percent of          Percent of           Percent of         Percent of
                                       Loans in             Loans in            Loans in             Loans in           Loans in
                                         Each               in Each               Each                 Each               Each
                                       Category             Category            Category             Category           Category
                                       to Total             to Total            to Total             to Total           to Total
Type of Loans:                Amount    Loans      Amount    Loans    Amount     Loans      Amount    Loans    Amount     Loans
--------------                ------    -----      ------    -----    ------     -----      ------    -----    ------     -----
<S>                        <C>            <C>    <C>           <C>   <C>           <C>   <C>            <C>  <C>            <C>
Commercial.................$  187,958     4.3%   $  153,674    4.3%  $  133,653    5.1%  $  135,364     6.0% $   98,642     7.4%
Real estate construction:
   Residential.............    24,648     0.8        17,869    0.5       18,344    0.7       33,841     1.5      18,662     1.4
   Commercial..............   847,029    22.3       968,503   27.1      518,889   19.8      460,238    20.4     239,940    18.0
Real estate mortgage:
   Residential.............   218,191     6.4       239,445    6.7      227,997    8.7      277,497    12.3     184,287    13.9
   Commercial.............. 3,184,846    64.0     2,129,992   59.6    1,666,734   63.6    1,297,240    57.5     750,479    56.3
Consumer...................    48,332     2.2        64,329    1.8       55,034    2.1       51,890     2.3      39,990     3.0
                           ----------   -----    ----------  -----   ----------  -----   ----------   -----  ----------   -----
Total Allowance            $4,511,004   100.0%   $3,573,812  100.0%  $2,620,651  100.0%  $2,256,070   100.0% $1,333,000   100.0%
                           ==========   =====    ==========  =====   ==========  =====   ==========   =====  ==========   =====
</TABLE>

                                       10
<PAGE>

INVESTMENT ACTIVITIES

     GENERAL.  The  investment  policy  of the  Bank is  established  by  senior
management  and  approved  by the Board of  Directors.  It is based on asset and
liability  management  goals and is  designed  to  provide a  portfolio  of high
quality  investments that foster interest income within acceptable interest rate
risk and  liquidity  guidelines.  In  accordance  with  SFAS No.  115,  the Bank
classifies  its  portfolio of investment  securities as "available  for sale" or
"held to maturity." At December 31, 2006, the Bank's  investment  policy allowed
investments in instruments  such as: (i) U.S.  Treasury  obligations,  (ii) U.S.
government  agency  or  government-sponsored  agency  obligations,  (iii)  local
municipal  obligations,  (iv)  mortgage-backed  securities,  (v) certificates of
deposit,  and (vi) investment grade corporate bonds, trust preferred  securities
and mutual funds. The Board of Directors may authorize additional investments.

     COMPOSITION OF INVESTMENT  SECURITIES  PORTFOLIO.  The following table sets
forth the carrying value of the Bank's  investment  securities  portfolio at the
dates  indicated.  For  additional  information,  see Note 3 of the Notes to the
Consolidated  Financial  Statements.  At December 31, 2006,  the Company did not
hold investment securities of any one issuer the book value of which exceeds 10%
of its stockholders' equity.
<TABLE>
<CAPTION>
                                                                                   At December 31,
                                                                 --------------------------------------------------
                                                                       2006              2005              2004
                                                                 --------------    --------------    --------------
<S>                                                              <C>               <C>               <C>
Securities Held to Maturity:
   Municipals.................................................   $    2,430,958    $    2,405,841    $      547,632
   Corporate trust preferred securities.......................                -                 -                 -
                                                                 --------------    --------------    --------------
     Total securities held to maturity........................        2,430,958         2,405,841           547,632
                                                                 --------------    --------------    --------------

Securities Available for Sale:
   U.S. government agency securities..........................                -                 -                 -
   U.S. government-sponsored entity securities................        6,415,780         6,202,390         8,670,230
   Municipals.................................................                -                 -                 -
   Mortgage-backed securities.................................        9,908,837         9,004,256        12,176,244
   Mutual funds...............................................                -                 -         3,196,328
   Corporate and trust preferred securities...................        8,205,450         6,316,298                 -
   Stock......................................................                -           500,000                 -
                                                                 --------------    --------------    --------------
     Total securities available for sale......................       24,530,067        22,022,944        24,042,802
                                                                 --------------    --------------    --------------
       Total..................................................   $   26,961,025    $   24,428,785    $   24,590,434
                                                                 ==============    ==============    ==============
</TABLE>


                                       11
<PAGE>

     INVESTMENT PORTFOLIO MATURITIES. The following table sets forth information
regarding the scheduled maturities,  carrying values, estimated fair values, and
weighted  average  yields for the Bank's  investments  securities  portfolio  at
December 31, 2006 by  contractual  maturity.  The following  table does not take
into  consideration  the  effects  of  scheduled  repayments  or the  effects of
possible prepayments.
<TABLE>
<CAPTION>
                                                                At December 31,
                           ---------------------------------------------------------------------------------------------------------
                           Within One Year   One to Five Years Five to Ten Years More than Ten Years   Total Investment Securities
                           ---------------   ----------------- ----------------- ------------------- -------------------------------
                          Carrying Average   Carrying  Average Carrying Average  Carrying Average  Carrying   Average
                           Value    Yield     Value     Yield   Value    Yield     Value   Yield     Value     Yield  Market Value
                           -----    -----     -----     -----   -----    -----     -----   -----     -----     -----  ------------
<S>                        <C>       <C>   <C>          <C>    <C>       <C>   <C>          <C>    <C>          <C>    <C>
Securities Held to Maturity:
---------------------------
   Municipals.............  $      -    -% $   544,898  3.97%  $        -    -% $ 1,886,060  6.38%  $ 2,430,958  5.85%  $ 2,425,629
                            -------- ----  -----------  ----   ---------- ----  -----------  ----   -----------  ----   -----------
     Total securities
     held to maturity.....         -    -%     544,898  3.97%           -    -%   1,886,060  6.38%    2,430,958  5.85%    2,425,629
                            -------- ----  -----------  ----   ---------- ----  -----------  ----   -----------  ----   -----------

Securities Available for Sale:
------------------------------
   U.S. government-
   sponsored entity
   securities.............   999,060 5.23%   2,481,320  4.99%   1,000,000 5.25%   1,935,400  6.18%    6,415,780  5.41%    6,415,780
   Mortgage-backed
   securities.............         -    -%           -     -%           -    -%   9,908,837  5.30%    9,908,837  5.30%    9,908,837
   Corporate securities...         -    -%     507,600  5.13%           -    -    7,697,850  5.39%    8,205,450  5.51%    8,205,450
                            -------- ----  -----------  ----   ---------- ----  -----------  ----   -----------  ----   -----------
     Total securities
     available for sale...  $989,060 5.23%   2,988,920  5.01%   1,000,000 5.25%  19,542,087  5.43%   24,530,067  5.40%   24,530,067
                            -------- ----  -----------  ----   ---------- ----  -----------  ----   -----------  ----   -----------
       Total..............  $999,060 5.23% $ 3,533,818  4.86%  $1,000,000 5.25% $21,428,147  5.51%  $26,961,025  5.44%  $26,955,696
                            ======== ====  ===========  ====   ========== ====  ===========  ====   ===========  ====   ===========
</TABLE>


                                       12
<PAGE>


SOURCES OF FUNDS

     GENERAL.  Deposits  are the major  external  source of the Bank's funds for
lending and other investment purposes. In addition to deposits, the Bank derives
funds  from  the  amortization,  prepayment  or sale  of  loans,  maturities  of
investment securities and operations.  Scheduled loan principal repayments are a
relatively  stable source of funds,  while deposit inflows and outflows and loan
prepayments are  significantly  influenced by general  interest rates and market
conditions.

     DEPOSITS.  The Bank offers  individuals  and  businesses  a wide variety of
accounts,  including  checking,  savings,  money  market  accounts,   individual
retirement accounts and certificates of deposit. Deposits are obtained primarily
from communities that the Bank serves,  however, the Bank held brokered deposits
of $87.6  million and $67 million at December  31, 2006 and 2005,  respectively.
Brokered  deposits are a more volatile  source of funding than core deposits and
do not increase the deposit franchise of the Bank. In a rising rate environment,
the Bank may be unwilling  or unable to pay a  competitive  rate.  To the extent
that such  deposits  do not remain  with the Bank,  they may need to be replaced
with  borrowings  which could  increase the Bank's cost of funds and  negatively
impact its interest rate spread, financial condition and results of operation.

     The following tables detail the average amount,  the average rate paid, and
the  percentage  of each  category to total  deposits  for the three years ended
December 31, 2006.
<TABLE>
<CAPTION>
                                                                At December 31, 2006
                                                     -----------------------------------------
                                                           Daily
                                                          Average         Average    Percent
                                                          Balance          Rate      of Total
                                                          -------          ----      --------
<S>                                                   <C>                 <C>         <C>
NOW and money market
   savings deposits................................   $  26,568,000       2.8%        10.2%
Regular savings deposits...........................      28,991,000       3.5%        11.1%
Time deposits......................................     188,040,000       4.5%        71.8%
                                                      -------------                  -----
     Total interest-bearing deposits...............     243,599,000                   93.1%

Non interest-bearing demand deposits...............      18,174,000                    6.9%
                                                      -------------                  -----
     Total deposits...................................$ 261,773,000                  100.0%
                                                      =============                  =====

<CAPTION>
                                                                At December 31, 2005
                                                     -----------------------------------------
                                                           Daily
                                                          Average         Average    Percent
                                                          Balance          Rate      of Total
                                                          -------          ----      --------
<S>                                                   <C>                 <C>         <C>
NOW and money market
   savings deposits................................   $  23,729,040       1.8%        11.4%
Regular savings deposits...........................      29,199,866       2.7%        14.0%
Time deposits......................................     138,586,970       3.3%        66.5%
                                                      -------------                  -----
     Total interest-bearing deposits...............     191,515,876                   91.9%

Non interest-bearing demand deposits...............      16,946,509                    8.1%
                                                      -------------                  -----
      Total deposits...............................   $ 208,462,385                  100.0%
                                                      =============                  =====

                                       13
<PAGE>

<CAPTION>
                                                                At December 31, 2004
                                                     -----------------------------------------
                                                           Daily
                                                          Average         Average    Percent
                                                          Balance          Rate      of Total
                                                          -------          ----      --------
<S>                                                   <C>                 <C>         <C>
NOW and money market
   savings deposits................................   $  28,510,645       1.7%        18.4%
Regular savings deposits...........................      22,160,550       2.1%        14.3%
Time deposits......................................      91,104,040       2.8%        58.7%
                                                      -------------                  -----
     Total interest-bearing deposits....................141,775,235                   91.4%

Non interest-bearing demand deposits...............      13,422,274                    8.6%
                                                      -------------                  -----
     Total deposits...................................$ 155,197,509                  100.0%
                                                      =============                  =====
</TABLE>

         The following table indicates the amount of the Bank's  certificates of
deposit of $100,000 or more by time remaining  until maturity as of December 31,
2006.

                                                    Certificates of
Maturity Period                                         Deposit
---------------                                         -------

Within three months..........................       $   27,141,290
Three through six months.....................           22,369,068
Six through twelve months....................           33,553,602
Over twelve months...........................           47,491,514
                                                    --------------
     Total...................................       $  130,555,474
                                                    ==============

     BORROWINGS.   Borrowings   consist   of  reverse   repurchase   agreements,
subordinated  debt  and  advances  from  the FHLB  and  other  parties.  Reverse
repurchase  agreements  were priced at origination and are payable in four years
or  less.  Borrowings  from  FHLB  outstanding  during  2006,  2005 and 2004 had
maturities of five years or less and cannot be prepaid without penalty.

     The following table sets forth information regarding the Bank's borrowings:
<TABLE>
<CAPTION>

                                                                                  December 31,
                                                           ----------------------------------------------------------
                                                                   2006                2005               2004
                                                           -----------------     -----------------  -----------------
<S>                                                        <C>                   <C>                <C>
Amount outstanding at year end.........................    $      34,851,370     $      35,966,860  $      20,378,726
Weighted average interest rates at year end............                 5.49%                 4.8%               2.8%
Maximum outstanding at any month end...................    $      41,092,497     $      35,966,860  $      20,378,726
Average outstanding....................................    $      34,321,000     $      28,172,795  $      10,721,726
Weighted average interest rate during the year.........                 5.2%                  3.1%               2.2%
</TABLE>

SUBSIDIARY ACTIVITY

     The  largest  subsidiary  of the  Company  is the  Bank.  The  Bank has two
subsidiaries,  Parke Capital Markets and Farm Folly.  Parke Capital Markets is a
corporation,  which was  formed in 2001 to  generate  fee  income  from  capital
markets financing  activities,  which include term financings.  Farm Folly, LLC,
which was  formed in 2006,  was  created  to hold the  Bank's  repossessed  real
estate.

PERSONNEL

     At December 31, 2006, the Bank had 35 full-time and 12 part-time employees.

                                       14
<PAGE>

REGULATION

     GENERAL.  Set forth  below is a brief  description  of  certain  laws which
relate to the regulation of the Bank and the Company.  The description  does not
purport  to be  complete  and is  qualified  in its  entirety  by  reference  to
applicable laws and regulations.

     HOLDING COMPANY REGULATION

     GENERAL.  The Company is a bank holding  company  within the meaning of the
Bank Holding Company Act of 1956 (the "BHC Act"),  and is regulated by the Board
of Governors of the Federal Reserve System (the "Federal  Reserve  Board").  The
Federal  Reserve  Board  has  enforcement  authority  over the  Company  and the
Company's non-bank  subsidiaries which also permits the Federal Reserve Board to
restrict or prohibit  activities that are determined to be a serious risk to the
subsidiary  bank.  This  regulation and oversight is intended  primarily for the
protection  of the  depositors  of the  Bank  and  not for  shareholders  of the
Company.

     As a bank holding company, the Company is required to file with the Federal
Reserve Board an annual  report and any  additional  information  as the Federal
Reserve Board may require under the BHC Act. The Federal Reserve Board will also
examine the Company and its subsidiaries.

     Subsidiary  banks  of  a  bank  holding  company  are  subject  to  certain
restrictions  imposed by the BHC Act on extensions of credit to the bank holding
company  or any of its  subsidiaries,  on  investments  in the  stock  or  other
securities of the bank holding company or its subsidiaries, and on the taking of
such stock or securities as collateral  for loans to any borrower.  Furthermore,
under  amendments to the BHC Act and regulations of the Federal Reserve Board, a
bank  holding  company and its  subsidiaries  are  prohibited  from  engaging in
certain  tie-in  arrangements  in  connection  with any  extension  of credit or
provision of credit or  providing  any  property or  services.  Generally,  this
provision provides that a bank may not extend credit, lease or sell property, or
furnish any service to a customer on the  condition  that the  customer  provide
additional credit or service to the bank, to the bank holding company, or to any
other  subsidiary  of the bank  holding  company  or on the  condition  that the
customer not obtain other credit or service from a competitor  of the bank,  the
bank holding company, or any subsidiary of the bank.

     Extensions  of credit by the Bank to  executive  officers,  directors,  and
principal  shareholders  of the Bank or any  affiliate  thereof,  including  the
Company,  are subject to Section 22(h) of the Federal  Reserve Act,  which among
other  things,  generally  prohibits  loans to any  such  individual  where  the
aggregate amount exceeds an amount equal to 15% of a bank's  unimpaired  capital
and surplus,  plus an additional  10% of  unimpaired  capital and surplus in the
case of loans that are fully secured by readily marketable collateral.

     FEDERAL  SECURITIES  LAW. The Company's  common stock is  registered  under
Section  12(g) of the  Securities  Exchange  Act of 1934,  as amended (the "1934
Act"),  and  the  Company  is  subject  to  the  periodic  reporting  and  other
requirements of Section 12(g) of the 1934 Act, as amended.

     SARBANES-OXLEY  ACT OF 2002. The Sarbanes-Oxley Act of 2002 (the "SOX Act")
was enacted to address  corporate and accounting  fraud. The SEC has promulgated
new regulations  pursuant to the SOX Act and may continue to propose  additional
implementing  or clarifying  regulations  as necessary in furtherance of the SOX
Act.  The  passage  of the SOX Act by  Congress  and the  implementation  of new
regulations by the SEC subject publicly-traded  companies to additional and more
cumbersome reporting regulations and disclosure. Compliance with the SOX Act and
corresponding regulations may increase the Company's expenses.

                                       15
<PAGE>

REGULATION OF THE BANK

     The Bank  operates in a highly  regulated  industry.  This  regulation  and
supervision  establishes a comprehensive framework of activities in which a bank
may engage and is intended primarily for the protection of the deposit insurance
fund and depositors and not shareholders of the Bank.

     Any change in applicable statutory and regulatory requirements,  whether by
the New  Jersey  Department  of  Banking  and  Insurance,  the  Federal  Deposit
Insurance  Corporation (the "FDIC") or the United States Congress,  could have a
material  adverse  impact on the  Bank,  and its  operations.  The  adoption  of
regulations or the enactment of laws that restrict the operations of the Bank or
impose burdensome  requirements upon it could reduce its profitability and could
impair the value of the Bank's  franchise  which could hurt the trading price of
the Bank's stock.

     As a New  Jersey-chartered  commercial  bank,  the Bank is  subject  to the
regulation, supervision, and control of the New Jersey Department of Banking and
Insurance.  As an FDIC-insured  institution,  the Bank is subject to regulation,
supervision  and control of the FDIC, an agency of the federal  government.  The
regulations  of the FDIC and the New Jersey  Department of Banking and Insurance
affect  virtually  all  activities  of the Bank,  including the minimum level of
capital the Bank must maintain,  the ability of the Bank to pay  dividends,  the
ability of the Bank to expand through new branches or  acquisitions  and various
other matters.

     INSURANCE OF DEPOSITS.  The Bank's  deposits are insured up to a maximum of
$100,000 per depositor  under the Bank  Insurance Fund of the FDIC. The FDIC has
established  a  risk-based   assessment   system  for  all  insured   depository
institutions.  Under the risk-based assessment system, deposit insurance premium
rates range from 0-27 basis  points.  Currently,  the Bank's  deposit  insurance
premium has been assessed at zero basis points of deposits.

     Pursuant  to the  Reform  Act,  the FDIC has  determined  to  maintain  the
designated  reserve ratio at its current 1.25%.  The FDIC has also adopted a new
risk-based  premium system that provides for quarterly  assessments  based on an
insured  institution's  ranking  in one of four risk  categories  based on their
examination  ratings and capital  ratios.  Beginning  in 2007,  well-capitalized
institutions  with the CAMELS ratings of 1 or 2 will be grouped in Risk Category
I and will be assessed  for deposit  insurance at an annual rate of between five
and seven basis points with the assessment rate for an individual institution to
be  determined  according  to a  formula  based  on a  weighted  average  of the
institution's  individual  CAMEL  component  ratings plus either five  financial
ratios or the  average  ratings  of its  long-term  debt.  Institutions  in Risk
Categories  II,  III and IV will be  assessed  at annual  rates of 10, 28 and 43
basis points, respectively.  The Bank anticipates that it will be able to offset
its deposit insurance premium for 2007 with the special assessment credit.

     CAPITAL  ADEQUACY  GUIDELINES.  The Bank is subject to  risk-based  capital
guidelines  promulgated by the FDIC that are designed to make regulatory capital
requirements  more  sensitive to  differences  in risk profile  among banks,  to
account  for  off-balance  sheet  exposure,  and to minimize  disincentives  for
holding liquid assets. Under the guidelines,  assets and off-balance sheet items
are  assigned  to broad risk  categories,  each with  appropriate  weights.  The
resulting   capital   ratios   represent   capital  as  a  percentage  of  total
risk-weighted assets and off-balance sheet items.

     The  minimum  ratio of total  capital to  risk-weighted  assets  (including
certain off-balance sheet activities,  such as standby letters of credit) is 8%.
At least 4% of the total capital is required to be "Tier I Capital,"  consisting
of common  shareholders'  equity and qualifying  preferred  stock,  less certain
goodwill items and other  intangible  assets.  The remainder ("Tier II Capital")
may consist of (a) the allowance for loan losses of up to 1.25% of risk-weighted
assets,   (b)  excess  of  qualifying   preferred   stock,  (c)  hybrid

                                       16
<PAGE>

capital instruments,  (d) perpetual debt, (e) mandatory convertible  securities,
and (f) qualifying subordinated debt and intermediate-term preferred stock up to
50% of Tier I  capital.  Total  capital is the sum of Tier I and Tier II capital
less reciprocal holdings of other banking  organizations,  capital  instruments,
investments  in   unconsolidated   subsidiaries  and  any  other  deductions  as
determined by the FDIC  (determined  on a  case-by-case  basis or as a matter of
policy after formal rule-making).

     In addition to the risk-based  capital  guidelines,  the FDIC has adopted a
minimum  Tier I capital  (leverage)  ratio,  under which a bank must  maintain a
minimum level of Tier I capital to average total consolidated assets of at least
3% in the case of a bank that has the highest regulatory  examination rating and
is not  contemplating  significant  growth or  expansion.  All  other  banks are
expected to maintain a leverage  ratio of at least 100 to 200 basis points above
the stated minimum.

     At December 31, 2006,  the Company and the Bank had the  requisite  capital
levels to qualify as "well capitalized."

ITEM 1A. RISK FACTORS

     The  following is a summary of the material  risks related to an investment
in the Company's securities.

A  SIGNIFICANT  AMOUNT OF THE BANK'S  BUSINESS  IS  CONCENTRATED  IN REAL ESTATE
DEVELOPMENT AND CONSTRUCTION LENDING.

     At December 31, 2006,  approximately  23.1% of our loans are commercial and
residential real estate development and construction loans, which are secured by
the real estate  under  development.  Construction  lending  involves  extensive
risks.  In  addition  to the risk  that the  market  values  of the real  estate
securing  these  loans may  deteriorate,  these  loans are also  subject  to the
development  risks that the projects will not be completed in a timely manner or
according to original  specifications.  Real estate development and construction
projects  that are not  completed  in a timely  manner or  according to original
specifications  are  generally  less  marketable  than  projects  that are fully
developed,  and the loans  underlying  such  projects  may be subject to greater
losses  in the event  that the real  estate  collateral  becomes  the  source of
repayment.   Construction   projects  are  commonly   underwritten   based  upon
projections,  such as the sales of homes or future leasing of commercial spaces,
and substantial deviations from such projections can occur. Construction lending
is also  labor  intensive  for the  Bank,  requiring  Bank  employees  to expend
substantial  time and resources in monitoring  and servicing  each  construction
loan to  completion.  In addition,  a  construction  loan that is in default can
create  problems for the Bank,  such as designating  replacement  builders for a
project,  considering  alternate users for the project and site and handling any
structural or environmental issues that might arise. Such problems and the risks
inherent  in  construction  lending  may have a material  adverse  effect on the
Company's earnings and overall financial condition.

MOST OF THE BANK'S  LOANS ARE  SECURED,  IN WHOLE OR IN PART,  WITH REAL  ESTATE
COLLATERAL.

     In addition to the financial strength and cash flow  characteristics of the
borrower  in each  case,  the Bank  often  secures  its loans  with real  estate
collateral. At December 31, 2006, approximately 95% of the Bank's loans had real
estate as a primary,  secondary or tertiary  component of  collateral.  The real
estate  collateral in each case provides an alternate source of repayment in the
event of default by the borrower,  but such  collateral may deteriorate in value
during the time the credit is  extended.  If we are  required to  liquidate  the
collateral  securing a loan  during a period of reduced  real  estate  values to
satisfy the debt, our earnings and capital could be adversely affected.

                                       17
<PAGE>

SOME OF THE BANK'S ASSETS ARE CLASSIFIED AS NON-PERFORMING  ASSETS THAT MAY LOSE
FURTHER VALUE.

     The  Bank  has  non-performing  assets,  which at this  time  only  include
non-accruing loans. At December 31, 2006, the Bank's  non-performing  loans were
0.34% of outstanding net loans.  There is a possibility that the Bank's earnings
could be reduced in the event that the eventual  values of these  non-performing
assets are or become less than the values that we have assigned to them.

THE BANK MAY EXPERIENCE LOAN LOSSES IN EXCESS OF ITS ALLOWANCE.

     The risk of credit losses on loans varies with, among other things, general
economic  conditions,  the type of loan being made, the  creditworthiness of the
borrower  over the term of the loan and, in the case of a  collateralized  loan,
the  value  and  marketability  of the  collateral  for  the  loan.  The  Bank's
management  maintains  an  allowance  for loan losses  based  upon,  among other
things,  historical experience, an evaluation of economic conditions and regular
reviews of delinquencies  and loan portfolio  quality.  Based upon such factors,
management   makes  various   assumptions   and  judgments  about  the  ultimate
collectability  of the loan  portfolio and provides an allowance for loan losses
based upon a percentage of the outstanding  balances and for specific loans when
their  ultimate  collectability  is  considered  questionable.   If  the  Bank's
management's  assumptions  and judgments prove to be incorrect and the allowance
for loan losses is inadequate to absorb future losses, or if the bank regulatory
authorities require the Bank to increase the allowance for loan losses as a part
of  their  examination  process,  the  Bank's  earnings  and  capital  could  be
significantly and adversely affected.

     As of December 31, 2006,  the allowance  for loan losses was  approximately
$4.5 million, which represented 1.45% of outstanding net loans. At such date, we
had  non-accruing  loans  totaling  $789,000.  The  Bank  actively  manages  its
non-accruing  loans in an effort to minimize credit losses.  Although the Bank's
management believes that its allowance for loan losses is adequate, there can be
no  assurance  that the  allowance  will prove  sufficient  to cover future loan
losses.  Further,  although  the  Bank's  management  uses the best  information
available to make  determinations with respect to the allowance for loan losses,
future adjustments may be necessary if economic conditions differ  substantially
from the  assumptions  used or adverse  developments  arise with  respect to the
Bank's  non-performing  or performing  loans.  Material  additions to the Bank's
allowance  for loan losses  would  result in a decrease in the Bank's net income
and capital, and could have a material adverse effect on the Company's financial
condition and results of operations.

THE BANK OPERATES IN A COMPETITIVE MARKET.

     The Bank operates in a competitive environment,  competing for deposits and
loans with commercial banks,  savings associations and other financial entities.
Competition for deposits comes primarily from other  commercial  banks,  savings
associations,  credit unions, money market and mutual funds and other investment
alternatives. Competition for loans comes primarily from other commercial banks,
savings associations,  mortgage banking firms, credit unions and other financial
intermediaries.  Many of the  financial  intermediaries  operating in our market
area offer certain services,  such as trust investment and international banking
services,  which the Bank  does not  offer.  In  addition,  banks  with a larger
capitalization  and  financial  intermediaries  not  subject to bank  regulatory
restrictions  have larger lending limits and are thereby able to serve the needs
of larger customers. Finally, the Bank's continued growth and profitability will
depend upon its ability to attract and retain skilled managerial,  marketing and
technical personnel. Competition for qualified personnel in the banking industry
is intense,  and there can be no assurance  that the Bank will be  successful in
attracting and retaining such personnel.

                                       18
<PAGE>

THE BANK IS DEPENDENT ON CERTAIN KEY PERSONNEL.

     The success of the Bank depends,  to a great  extent,  upon the services of
Vito S. Pantilione,  the Bank's President and Chief Executive Officer, Robert A.
Kuehl,  the Bank's Senior Vice President and Chief Financial  Officer,  David O.
Middlebrook,  the Bank's  Senior Vice  President  and Senior Loan  Officer,  and
Elizabeth A. Milavsky,  the Bank's Senior Vice  President of Retail  Operations,
Human Resources and Compliance. The Bank has been able to retain the services of
Mr.  Pantilione since its inception and of Mr.  Middlebrook  since he joined the
Bank in 1999.  The Bank has needed,  from time to time, to recruit  personnel to
fill  vacant  positions  for  experienced  lending  and  credit   administration
officers. There can be no assurance that the Bank will continue to be successful
in recruiting  and retaining  the  necessary  personnel for the Bank's  lending,
operations,  accounting and  administrative  functions.  The Bank's inability to
hire or  retain  key  personnel  could  have a  material  adverse  effect on the
Company's results of operations.

CHANGES IN INTEREST RATES AFFECT THE COMPANY'S PROFITABILITY AND ASSETS.

     The Company  derives its income  mainly from the  difference,  or "spread,"
between  the  interest  earned  by the  Bank  on  loans,  securities  and  other
interest-earning  assets,  and  the  interest  paid  by the  Bank  on  deposits,
borrowings  and other  interest-bearing  liabilities.  If more  interest-earning
assets than  interest-bearing  liabilities re-price or mature during a time when
interest  rates are  declining,  then the Company's  net interest  income may be
reduced.  If more  interest-bearing  liabilities  than  interest-earning  assets
re-price  or mature  during a time when  interest  rates  are  rising,  then the
Company's net interest  income may be reduced.  At December 31, 2006, the Bank's
total  interest-earning  assets maturing or re-pricing  within one year exceeded
interest-bearing  liabilities maturing or re-pricing during the same time period
by $3.9  million.  As a  result,  the cost on its  interest-bearing  liabilities
should  adjust to changes in  interest  rates at a faster rate than the yield of
its  interest-earning  assets,  and its net interest  income may be reduced when
interest rates increase significantly for this period of time.

THE BANK'S MANAGEMENT CONTROLS A SIGNIFICANT PERCENTAGE OF OUR COMMON STOCK.

     At March 22, 2007,  the  Company's  and the Bank's  directors and executive
officers  beneficially  owned  1,419,739  shares  or  exercisable  warrants  and
options, or 49.4%, of our common stock. Because of the large percentage of stock
held by the Company's and the Bank's  directors  and executive  officers,  these
persons  could  influence  the outcome of any matter  submitted to a vote of our
shareholders.

ITEM 1B. UNRESOLVED STAFF COMMENTS

     None.

ITEM 2.  PROPERTIES

     (a) Properties.

     The Company's and the Bank's main office is located in Washington Township,
Gloucester  County,  New Jersey,  in an office building of approximately  13,000
square feet. The main office  facilities  include teller windows,  a lobby area,
drive-through  windows,  automated  teller  machine,  a  night  depository,  and
executive and  administrative  offices.  In December 2002, the Bank executed its
lease option to purchase the building for $1.5 million.

     The Bank also conducts  business from a full-service  office in Northfield,
New Jersey, a full-service office in Washington Township, Gloucester County, New
Jersey,  a  full-service  office  in

                                       19
<PAGE>

Philadelphia,  Pennsylvania,  and a loan  production  office  in  Millville  New
Jersey.  These offices were opened by the Bank in September 2002, February 2003,
August  2006  and  August  2006,   respectively.   The  Northfield  office,  the
Philadelphia  office and loan  production  office  are  leased.  The  Washington
Township office was purchased in February 2003.

     Management  considers the physical  condition of all offices to be good and
adequate  for the conduct of the Bank's  business.  At December  31,  2006,  net
property and equipment totaled approximately $3.4 million.

     (b) Investment Policies.

     See "Item 1.  Business"  above for a general  description  of the Company's
investment  policies,  which are implemented by the Bank. The Bank's investments
are  primarily  acquired to produce  income,  and to a lesser  extent,  possible
capital gain.

     (1)  Investments  in Real Estate or Interests in Real Estate.  See "Item 1.
          Business - Lending Activities."

     (2)  Investments in Real Estate Mortgages.  See "Item 1. Business - Lending
          Activities."

     (3)  Investments in Securities of or Interests in Persons Primarily Engaged
          in  Real  Estate   Activities.   See  "Item  1.   Business  -  Lending
          Activities."

     (c) Description of Real Estate and Operating Data.

         Not Applicable.

ITEM 3.  LEGAL PROCEEDINGS

     On  December  27,  2004,  Republic  First  Bank  filed an action  captioned
Republic  First Bank v. Parke Bank and Vito S.  Pantilione in the Superior Court
of New Jersey Law Division, Gloucester County. The Bank believes that the action
is without merit and intends to vigorously  defend against it. The suit alleges,
among other things, fraud, negligent misrepresentation, breach of fiduciary duty
and  breach of  contract  in  connection  with  certain  loans to two Parke Bank
customers in which Republic First Bank became a participant. Republic First Bank
is seeking  unspecified  damages and requesting that a receivership be appointed
for certain collateral.  The complaint in the action was served on us in January
2005.  The Bank filed an answer to the  complaint,  and the case is currently in
the discovery phase.

     On June 1, 2005,  Atlantic  Central Bankers Bank and New Century Bank filed
an action captioned  Atlantic Central Bankers Bank and New Century Bank v. Parke
Bank and Parke  Capital  Markets in the  Superior  Court of New Jersey  Chancery
Division,  Cape May County.  The Bank  believes that the action is without merit
and  intends  to  vigorously  defend  against  it.  The suit  alleges  breach of
participation agreements and fraudulent misrepresentation in connection with the
plaintiffs'  participations  in loans to the same  Parke Bank  customers  as the
Republic First Bank matter  discussed  above.  In August 2005,  the  plaintiffs'
motion for a preliminary injunction was denied, and they were ordered to pay the
Bank's expenses.  This case has been  consolidated  with the Republic First Bank
case.

                                       20
<PAGE>

     In December,  2006,  the Bank  reached a  preliminary  agreement  with both
Atlantic  Central Bankers Bank and New Century Bank.  Upon further  negotiations
with both Banks in 2007, a final agreement between the Bank and Atlantic Central
Bankers  Bank and New Century Bank was signed and  subsequently  approved by the
court  and the  action  was  dismissed  in  February,  2007.  As a result of the
settlement  there are no  longer  any  outstanding  legal  issues  or  potential
liability by the Bank relating to either  party.  Payments were recently made in
the amounts of $150,000 and $ 60,000,  respectively to Atlantic  Central Bankers
Bank and New  Century  Bank as a result  of the  settlements.  There has been no
subsequent change in the First Republic Bank action.

     On November 4, 2004,  Stephen P. Magenta and other  parties filed an action
captioned Stephen P. Magenta, et. al. v. General Insulation Services,  Inc., et.
al. in the Superior Court of New Jersey Law Division, Gloucester County, related
to the  alleged  embezzlement  of over $1 million by an  employee  of one of our
customers of funds maintained in accounts at the Bank. All but one of the claims
against  the Bank have been  dismissed.  The Bank  believes  that the  action is
without merit and intends to vigorously defend against it. In addition, the Bank
believes that this action is covered by its insurance.

     Other than the foregoing, at December 31, 2006, the Company was not a party
to any material legal proceedings.

ITEM 4.  SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS

     There were no matters  submitted to a vote of the security  holders  during
the fourth quarter of fiscal year 2006.


                                     PART II

ITEM 5.  MARKET  FOR  COMMON  EQUITY,  RELATED  SHAREHOLDER  MATTERS  AND ISSUER
         PURCHASES OF EQUITY SECURITIES

         (a)  The  information  contained under the section  captioned  "Market
              Prices and  Dividends"  in the  Company's  2006 Annual  Report is
              incorporated herein by reference.

         (b)  Not applicable.

         (c)  There were no  repurchases  of the Company's  stock in the fourth
              quarter  of 2006.

                                       21
<PAGE>

ITEM 6. SELECTED FINANCIAL DATA

     The information  contained under the section captioned  "Selected Financial
Data" in the 2006 Annual Report is incorporated herein by reference.

ITEM 7. MANAGEMENT'S  DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
        OF OPERATIONS

     The information contained in the section captioned "Management's Discussion
and Analysis of Financial  Condition  and Results of  Operations"  in the Annual
Report is incorporated herein by reference.

ITEM 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

     The information contained in the section captioned "Management's Discussion
and Analysis of Financial  Condition  and Results of Operations -- Interest Rate
Sensitivity and Liquidity -- Rate Sensitivity  Analysis" in the Annual Report is
incorporated herein by reference.

ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA

     The Company's  financial  statements  listed under Item 15 are incorporated
herein by reference.

ITEM  9. CHANGES  IN AND  DISAGREEMENTS  WITH  ACCOUNTANTS  ON  ACCOUNTING  AND
         FINANCIAL DISCLOSURE

     None.

ITEM 9A. CONTROLS AND PROCEDURES

     (a)  Evaluation  of  disclosure  controls  and  procedures.  Based on their
evaluation of the Company's  disclosure  controls and  procedures (as defined in
Rule 13a-15(e) under the Securities  Exchange Act of 1934 (the "Exchange Act")),
the Company's  principal  executive officer and principal financial officer have
concluded that as of the end of the period covered by this Annual Report on Form
10-K such  disclosure  controls  and  procedures  are  effective  to ensure that
information  required to be disclosed by the Company in reports that it files or
submits under the Exchange Act is recorded,  processed,  summarized and reported
within the time periods  specified in Securities and Exchange  Commission  rules
and forms.

     (b) Changes in internal control over financial  reporting.  During the last
quarter of the year under report,  there was no change in the Company's internal
control over financial reporting that has materially affected,  or is reasonably
likely to materially  affect,  the  Company's  internal  control over  financial
reporting.


ITEM 9B. OTHER INFORMATION

     Not applicable.
                                       22
<PAGE>

                                    PART III

ITEM 10.  DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE

     The  information  contained  under the headings  "Section 16(a)  Beneficial
Ownership Reporting  Compliance" and "Proposal I - Election of Directors" in the
Company's  Proxy  Statement  for its 2007 Annual  Meeting of  Stockholders  (the
"Proxy Statement") is incorporated herein by reference.

     The  Company has  adopted a Code of Ethics  that  applies to its  principal
executive officer,  principal financial officer, principal accounting officer or
controller or persons performing similar functions. A copy of the Code of Ethics
will be furnished  without  charge upon written  request to the Chief  Financial
Officer, Parke Bancorp, Inc., 601 Delsea Drive, Washington Township, New Jersey,
08080.

     There have been no material  changes to the  procedures  by which  security
holders may recommend  nominees to the Registrant's Board of Directors since the
date of the Registrant's last proxy statement mailed to its stockholders.

ITEM 11.  EXECUTIVE COMPENSATION

     The information  contained in the section captioned "Director and Executive
Officer   Compensation"  in  the  Proxy  Statement  is  incorporated  herein  by
reference.

ITEM 12.  SECURITY  OWNERSHIP OF CERTAIN  BENEFICIAL  OWNERS AND  MANAGEMENT AND
          RELATED STOCKHOLDER MATTERS

     (a) Security Ownership of Certain Beneficial Owners

     The information  contained in the section captioned  "Security Ownership of
Certain Beneficial Owners and Management" in the Proxy Statement is incorporated
herein by reference.

     (b) Security Ownership of Management

     The information  contained in the section captioned  "Security Ownership of
Certain Beneficial Owners and Management" in the Proxy Statement is incorporated
herein by reference.

     (c) Management of the Registrant  knows of no  arrangements,  including any
pledge by any person of securities of the Registrant, the operation of which may
at a subsequent date result in a change in control of the Registrant.

     (d) Securities Authorized for Issuance Under Equity Compensation Plans

     Set forth  below is  information  as of December  31, 2006 with  respect to
compensation   plans  under  which  equity  securities  of  the  Registrant  are
authorized for issuance.

                                       23
<PAGE>
<TABLE>
<CAPTION>
                                        EQUITY COMPENSATION PLAN INFORMATION

                                                  (a)                   (b)                            (c)
                                                                                              Number of securities
                                                                                             remaining available for
                                                                                              future issuance under
                                                                                               equity compensation
                                        Number of securities to       Weighted-average          plans (excluding
                                        be issued upon exercise      exercise price of       securities reflected in
                                        of outstanding options      outstanding options            column (a))
                                        ----------------------      -------------------            -----------
<S>                                                <C>                 <C>                           <C>
Equity compensation plans approved
     by shareholders.............                  348,248             $  13.52                     147,688
                                                   -------             --------                     -------
     TOTAL.......................                  348,248             $  13.52                     147,688
                                                   =======             ========                     =======
</TABLE>

ITEM  13.  CERTAIN   RELATIONSHIPS  AND  RELATED   TRANSACTIONS,   AND  DIRECTOR
           INDEPENDENCE

     The information  contained in the section captioned "Certain  Relationships
and Related  Transactions"  in the Proxy  Statement  is  incorporated  herein by
reference.

ITEM 14.   PRINCIPAL ACCOUNTING FEES AND SERVICES

     The information  contained in the section captioned  "Principal  Accounting
Fees and Services" in the Proxy Statement is incorporated herein by reference.

                                     PART IV

ITEM 15. EXHIBITS AND FINANCIAL STATEMENT SCHEDULES

     (a) Listed below are all financial statements and exhibits filed as part of
this report.


          1.   The following financial statements and the independent  auditors'
               report included in the Annual Report are  incorporated  herein by
               reference:

               o    Report of Independent Registered Public Accounting Firm

               o    Consolidated Balance Sheets as of December 31, 2006 and 2005

               o    Consolidated  Statements  of  Income  For  the  Years  Ended
                    December 31, 2006, 2005 and 2004

               o    Consolidated  Statements  of  Stockholders'  Equity  for the
                    Years Ended December 31, 2006, 2005 and 2004

                                       24
<PAGE>

               o    Consolidated  Statements  of Cash Flows for the Years  Ended
                    December 31, 2006, 2005 and 2004

               o    Notes to Consolidated Financial Statements

     2.   Schedules omitted as they are not applicable.

     3.   The  following  exhibits are  included in this Report or  incorporated
          herein by reference:

          3(i) Certificate of Incorporation of Parke Bancorp, Inc.*
          3(ii) Bylaws of Parke Bancorp, Inc.*
          4.1  Specimen stock certificate of Parke Bancorp, Inc.*
          4.2  Specimen common stock purchase warrant of Parke Bancorp, Inc.*
          10.1 Employment Agreement Between Bank and Vito S. Pantilione*
          10.2 Supplemental Executive Retirement Plan*
          10.3 1999 Stock Option Plan*
          10.4 2002 Stock Option Plan*
          10.5 2003 Stock Option Plan*
          10.6 2005 Stock Option Plan**
          13   Annual Report to Stockholders  for the fiscal year ended December
               31, 2006
          21   Subsidiaries of the Registrant
          23   Consent of McGladrey & Pullen, LLP
          31   Certifications  pursuant to Section 302 of the Sarbanes-Oxley Act
               of 2002
          32   Certifications  pursuant to Section 906 of the Sarbanes-Oxley Act
               of 2002

          *    Incorporated by reference to the Company's Registration Statement
               on Form S-4 filed with the SEC on January 31, 2005.

          **   Incorporated  by  reference  to the  Company's  Definitive  Proxy
               Statement filed with the SEC on December 20, 2005.


                                       25
<PAGE>

                                   SIGNATURES

         Pursuant to the  requirements  of Section 13 or 15(d) of the Securities
Exchange Act of 1934, the Registrant has duly caused this Report to be signed on
its behalf by the undersigned, thereunto duly authorized.

                                         PARKE BANCORP, INC.



Dated: March 30, 2007                    By: /s/ Vito S. Pantilione
                                             -----------------------------------
                                             Vito S. Pantilione
                                             President, Chief Executive Officer
                                             and Director


     Pursuant to the  requirement of the Securities  Exchange Act of 1934,  this
Report  has  been  signed  below  by the  following  persons  on  behalf  of the
Registrant and in the capacities and on March 30, 2007.

<TABLE>
<CAPTION>
<S>                                         <C>

                                                 /s/ Vito S. Pantilione
--------------------------------------------    -----------------------------------------------
Celestino R. Pennoni                            Vito S. Pantilione
Chairman                                        President, Chief Executive Officer and Director
                                                (Principal Executive Officer)

/s/ Fred G. Choate                              /s/ Daniel Dalton
--------------------------------------------    -----------------------------------------------
Fred G. Choate                                  Daniel Dalton
Director                                        Director


/s/ Robert A. Kuehl
--------------------------------------------    -----------------------------------------------
Robert A. Kuehl                                 Arret F. Dobson
Senior Vice President and                       Director
Chief Financial Officer
(Principal Financial and Accounting Officer)


/s/Thomas E. Hedenberg
--------------------------------------------    -----------------------------------------------
Thomas E. Hedenberg                             Edward Infantolino, M.D.
Director                                        Director

</TABLE>

<PAGE>
                             SIGNATURES (continued)

<TABLE>
<CAPTION>
<S>                                          <C>


/s/Anthony Jannetti
--------------------------------------------    -----------------------------------------------
Anthony Jannetti                                Jeff H. Kripitz
Director                                        Director


/s/Richard Phalines                             /s/Jack C. Sheppard, Jr.
--------------------------------------------    -----------------------------------------------
Richard Phalines                                Jack C. Sheppard, Jr.
Director                                        Director



--------------------------------------------
Ray H. Tresch
Director

</TABLE>