PARKE BANCORP, INC.

                       2005 ANNUAL REPORT TO SHAREHOLDERS


<PAGE>

                               PARKE BANCORP, INC.
                       2005 ANNUAL REPORT TO SHAREHOLDERS

                                TABLE OF CONTENTS

                                                                            Page

Letter to Shareholders.........................................................1

Selected Financial Data........................................................3

Management's Discussion and Analysis of
     Financial Condition and Results of Operations.............................4

Market Prices and Dividends...................................................14

Report of Independent Registered Public Accounting Firm......................F-1

Consolidated Financial Statements............................................F-2

Notes to Consolidated Financial Statements...................................F-7

Corporate Information.................................................Back Cover

                              --------------------

Parke Bancorp,  Inc. (the  "Company") may from time to time make written or oral
"forward-looking  statements,"  including  statements  contained  in this Annual
Report and in other  communications  by the Company which are made in good faith
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, 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  bank
subsidiary,  Parke 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
rate, market and monetary fluctuations; the timely development of and acceptance
of new products and services of Parke Bank and the  perceived  overall  value of
these  products and services by customers,  including the features,  pricing and
quality  compared to  competitors'  products and services;  the  willingness  of
customers  to  substitute  competitors'  products  and services for Parke Bank's
products and services;  the success of Parke Bank in gaining regulatory approval
of its products and services,  when required; the impact of changes in financial
services'  laws and  regulations  (including  laws  concerning  taxes,  banking,
securities  and  insurance);  technological  changes;  acquisitions;  changes in
consumer  spending and saving habits;  and the success of Parke Bank at managing
these risks.

                                                                             iii

<PAGE>

                               PARKE BANCORP, INC.


To Our Shareholders:

The Delaware  Valley's economic engine helped support the sixth consecutive year
of record  profits  for Parke  Bank.  The real  estate  market and the  business
community, from the Jersey Shore to Philadelphia,  remained strong despite eight
interest  rate  increases  by the Federal  Reserve and  record-high  oil prices.
Continued  interest  rate hikes  increased  pressure on the  banking  industry's
already  shrinking net interest margin.  Parke Bank turned these challenges into
opportunities,  with assets growing 33% to $297.8 million and profits increasing
28% to $3.5  million,  supported in part by the growth in our loan  portfolio of
37% to over $259 million.  The growth in our loan portfolio was primarily funded
by a 29% growth in our deposits, which now exceeds $232 million.

During 2005,  Parke Bank reorganized into the holding company form of ownership.
Through  new  business  trust  subsidiaries  of our new holding  company,  Parke
Bancorp,  Inc.,  we raised  approximately  $8.5 million  through the sale of $10
million in trust preferred  securities,  strengthening  our financial  position.
Parke  Bancorp  has also  given us the  opportunity  to  pursue  other  business
opportunities,  including the opportunity to open a full-service  bank branch in
Philadelphia.  We are pleased to report that we selected  1610 Spruce  Street as
our first  full-service  branch in  Philadelphia.  We hope to start  renovations
soon,  with the branch  opening  planned  for the third  quarter  of 2006.  Paul
Palmieri,  our Senior Vice President in charge of the  Philadelphia  region,  is
already  hard at work  growing  our loan  portfolio  and  relationships  in this
market. Continued bank consolidations have provided Parke Bank with an excellent
opportunity  to  offer  quality  personal  banking  services  to the  residents,
businesses and professionals in the Center City area. The personal attention and
competitive  banking  products  that  we  provide  to our  customers  are  being
well-received in this exciting new market for Parke Bank. Our new branch will be
staffed with fine banking professionals committed to the Parke Bank's "Return to
Better Banking" philosophy.

We are also supporting our growth in the Vineland/Millville market in Cumberland
County  with the  hiring of Milton  Witte.  Milton  is a great  addition  to our
management team and brings a wealth of experience and expertise to our bank. The
Vineland/Millville  area is one of the fastest  growing areas in the New Jersey,
with the  construction  of thousands  of  residential  homes  approved and under
development.  Commercial  development has also exploded along Delsea Drive, with
many national and regional  retail chains  opening  flagship  stores.  Plans are
under way to open a loan production office in this area, in addition to actively
pursuing a quality,  full-service branch location.  The Parke Bank philosophy of
personal  service,  competitive  banking products and our commitment to a prompt
response to our customers' requests will offer a clear alternative to the people
and businesses in this area.

                                                                               1

<PAGE>

We continue to explore  opportunities in other areas of the region that would be
strategically  ideal to support the growth of our bank and  enhance  shareholder
value.  Once again,  the banking industry is facing many obstacles in 2006, with
increased  banking and SEC  regulations,  higher  interest  rates and a volatile
economy.  Changes in the political environment,  both nationally and abroad pose
significant  challenges to  forecasting  the direction of interest rates and the
economy.  We will  continue  to work very  hard to turn  these  challenges  into
opportunities  that will further enhance  shareholder  value while maintaining a
sound banking institution.





/s/C.R. "Chuck" Pennoni                    /s/Vito S. Pantilione

C.R. "Chuck" Pennoni                       Vito S. Pantilione
Chairman                                   President and Chief Executive Officer

<PAGE>

                             SELECTED FINANCIAL DATA
                  (Dollars in thousands, except per share data)

<TABLE>
<CAPTION>
                                            At or for the Year Ended December 31,
                                    --------------------------------------------------------
                                      2005        2004        2003        2002        2001
                                    --------    --------    --------    --------    --------
<S>                                <C>         <C>         <C>         <C>         <C>
BALANCE SHEET DATA:
Assets ..........................   $297,810    $224,339    $174,004    $130,903    $ 81,955
Loans Receivable, Net ...........   $255,461    $185,986    $144,078    $ 93,762    $ 62,403
Securities--Available for Sale...   $ 22,023    $ 24,043    $ 14,323    $ 22,903    $ 12,913
Securities--Held to Maturity ....   $  2,406    $    548    $    779    $    250    $    250
Cash and Cash Equivalents .......   $  4,380    $  1,802    $  4,267    $  7,540    $  4,627
Deposits ........................   $232,056    $179,585    $142,447    $107,548    $ 65,609
Borrowings ......................   $ 35,967    $ 20,379    $ 10,340    $  4,949    $  6,835
Shareholders' Equity ............   $ 27,193    $ 22,829    $ 19,993    $ 17,628    $  8,553

OPERATIONS DATA:
Interest Income .................   $ 17,336    $ 11,766    $  9,445    $  6,612    $  4,884
Interest Expense ................      6,684       3,747       3,182       2,960       2,647
                                    --------    --------    --------    --------    --------
Net Interest Income .............     10,652       8,019       6,263       3,652       2,237
Provision for Loan Losses .......      1,180         825         923         499         374
                                    --------    --------    --------    --------    --------
Net Interest Income after
   Provision for Loan Losses ....      9,472       7,194       5,340       3,153       1,863
Non-Interest Income .............        896         861         779         488         443
Non-Interest Expense ............      4,544       3,589       2,838       2,079       1,564
                                    --------    --------    --------    --------    --------
Income Before Income Taxes ......      5,824       4,466       3,281       1,562         742
Income Tax Expense ..............      2,330       1,744       1,279         620         302
                                    --------    --------    --------    --------    --------
Net Income ......................   $  3,494    $  2,722    $  2,002    $    942    $    440
                                    ========    ========    ========    ========    ========

SELECTED FINANCIAL RATIOS:
Ratio of Equity to Assets .......       9.13%      10.18%      11.49%      13.47%      10.44%
Book Value/Common Share .........   $  11.75    $  10.50    $   9.33    $   8.47    $   7.73
Dividends declared per Share ....   $      -    $      -    $      -    $      -    $      -
Basic Income per Common Share ...   $   1.55    $   1.26    $   0.96    $   0.78    $   0.39
Diluted Income per Common Share..   $   1.32    $   1.05    $   0.85    $   0.77    $   0.39
Return on Average Assets ........       1.35%       1.45%       1.33%       0.94%       0.69%
Return on Average Equity ........      13.91%      13.24%      10.76%       9.56%       5.28%
Net Interest Margin .............       4.33%       4.58%       4.40%       3.84%       3.55%
Non-Interest Expense/Average
   Assets .......................       1.76%       1.91%       1.88%       2.07%       2.44%
Non-Interest Income/Average
   Assets .......................       0.35%       0.46%       0.52%       0.49%       0.69%
Non-Performing Loans/Loans(1)           1.01%       0.16%       0.55%       1.15%       1.19%
Allowance for Loan
   Losses/Loans(1) ..............       1.38%       1.39%       1.54%       1.40%       1.32%
Dividend Payout Patio ...........          -           -           -           -           -
</TABLE>
---------------
(1)  Total loans before allowance for loan losses

                                                                               3

<PAGE>

           MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
                            AND RESULTS OF OPERATION

Forward Looking Statements

         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 the Proxy Statement and the Annual
Report on Form 10-K, including the exhibits), in its reports to shareholders and
in other  communications  by the  Company,  which are made in good  faith by the
Company.

         These forward-looking statements involve risks and uncertainties,  such
as statements of the Company's plans,  objectives,  expectations,  estimates and
intentions, which 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 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 Bank at managing  the risks  resulting  from these  factors.  The
Company cautions that the listed factors are not exclusive.

Overview

         The  Company's  results of operations  are  dependent  primarily on the
Bank's net interest income,  which is the difference between the interest income
earned on its  interest-earning  assets,  such as loans and securities,  and the
interest expense paid on its interest-bearing  liabilities, such as deposits and
borrowings. The Bank also generates non-interest income such as service charges,
BOLI income and other fees. The Bank's  non-interest  expenses primarily consist
of employee compensation and benefits,  occupancy expenses,  marketing expenses,
data processing costs and other operating expenses.  The Bank is also subject to
losses from its loan portfolio if borrowers fail to meet their obligations.  The
Bank's results of operations are also significantly affected by general economic
and  competitive  conditions,  particularly  changes in market  interest  rates,
government policies and actions of regulatory agencies.

         We  recorded  net income of  $3,494,421,  or $1.32 per  diluted  share,
$2,721,758,  or $1.05 per diluted  share,  and  $2,001,899,  or $.85 per diluted
share, for 2005, 2004 and 2003,  respectively.  Pre-tax earnings were $5,824,065
for 2005 compared to $4,465,858 for 2004 and $3,281,336 for 2003.

         Total  assets  increased  by  $73.5  million,   or  32.7%,   reflecting
significant increases in loans. Loans outstanding increased by $69.5 million, or
37.4%, while investment securities remained constant at $24.4 million.  Deposits
also grew by $52.5 million,  or 29.2%.  Borrowings  experienced a 76.5% or $15.6
million increase.  The issuance of $10 million of trust securities  enhanced our
capital position for asset expansion.  Growth in loans and deposits reflects our
continued efforts in business development and advertising.  Shareholders' Equity
increased  $4.4  million or 19.1%,  as a result of earnings  and the exercise of
stock warrants and options.

4

<PAGE>

         The  principal  objective  of this  financial  review  is to  provide a
discussion and an overview of our consolidated  financial  condition and results
of  operations.   This  discussion  should  be  read  in  conjunction  with  the
accompanying financial statements and related notes.

                                                                               5

<PAGE>

         Comparative  Average  Balances,  Yields and Rates.  The following table
sets  forth  for  the  periods   indicated  the  Company's   average  volume  of
interest-earning assets and interest-bearing  liabilities and average yields and
rates.  Changes  in net  interest  income  from  period  to period  result  from
increases  or  decreases  in the volume and mix of  interest-earning  assets and
interest-bearing liabilities, increases or decreases in the average rates earned
and paid on such  assets and  liabilities  and the  availability  of  particular
sources of funds, such as non-interest-bearing deposits.

<TABLE>
<CAPTION>
                                                                                   For the Year Ended
                                              --------------------------------------------------------------------------------------
                                                    December 31, 2005              December 31, 2004          December 31, 2003
                                              ---------------------------   ---------------------------   --------------------------

                                               Average   Income/   Yield/    Average   Income/   Yield/    Average  Income/   Yield/
                                               Balance   Expense    Rate     Balance   Expense    Rate     Balance  Expense    Rate
                                               -------   -------    ----     -------   -------    ----     -------  -------    ----
                                                                                         (Dollars in thousands)
<S>                                          <C>        <C>         <C>    <C>        <C>         <C>    <C>        <C>       <C>
Assets:
Loans (net of deferred costs/fees)(1).......  $219,217   $16,108     7.3%   $154,764   $10,978     7.1%   $120,797   $8,699    7.2%
                                              --------   -------     ---    --------   -------     ---    --------   ------    ---
Investment securities.......................    24,276     1,159     4.8%     17,219       750     4.4%     18,877      724    3.8%
Federal funds sold..........................     2,107        69     3.3%      3,044        38     1.3%      1,847       21    1.2%
                                              --------   -------            --------   -------            --------   ------
     Total interest-earning assets..........   245,600    17,336     7.1%    175,027    11,766     6.7%    141,521    9,444    6.7%
                                              ========   =======            ========   =======            ========   ======

Allowance for loan losses...................    (3,009)                       (2,280)                       (1,729)
Other assets................................    15,322                        14,802                        10,979
                                              --------                      --------                      --------
     Total assets...........................  $257,913                      $187,549                      $150,771
                                              ========                      ========                      ========

Liabilities and Shareholders' Equity:
Interest-bearing deposits:
   Regular savings deposits.................  $ 29,200   $   797     2.7%   $ 22,160   $   464     2.1%   $ 22,104   $  493    2.2%
   NOW & money market savings...............    23,729       416     1.8%     28,511       477     1.7%     24,351      381    1.6%
   Time deposits............................   138,587     4,599     3.3%     91,104     2,584     2.8%     67,298    2,139    3.2%
                                              --------   -------            --------   -------            --------   ------
     Total interest-bearing deposits........   191,516     5,812     3.0%    141,775     3,525     2.5%    113,754    3,013    2.6%

Borrowed funds                                  22,376       872     3.9%     10,272       221     2.2%      7,828      168    2.1%
                                              --------   -------            --------   -------            --------   ------
     Total interest-bearing liabilities.....   213,892   $ 6,684     3.1%    152,047   $ 3,746     2.5%    121,582   $3,181    2.6%
                                                         =======                       =======                       ======

Non-interest-bearing demand deposits........    16,946                        13,422                         9,270
Other liabilities...........................     1,948                         1,520                         1,311
Shareholders' equity........................    25,127                        20,559                        18,608
                                              --------                      --------                      --------
     Total liabilities and
     shareholders' equity...................  $257,913                      $187,549                      $150,771
                                              ========                      ========                      ========

Interest rate spread (average yield
   less average rate).......................                         4.0%                          4.2%                        4.1%
Net interest income (interest income
   less interest expense)...................             $10,652                       $ 8,020                       $6,263
                                                         =======                       =======                       ======
Net interest margin (net interest
   income/average interest-earning assets)..                         4.3%                          4.6%                        4.4%
</TABLE>

---------------------------
(1)  Non-accrual loans are included in the calculation of average balances.

6
<PAGE>

Return on Equity and Assets

<TABLE>
<CAPTION>
                                                                         December 31,
                                                           --------------------------------------------
                                                            2005             2004              2003
                                                            ----             ----              ----
<S>                                                        <C>               <C>              <C>
        Return on average assets..................           1.35%             1.45%            1.33%
        Return on average equity..................          13.91%            13.24%           10.76%
        Dividend payout ratio.....................           0                 0                0
        Average equity to average assets ratio....           9.74%            10.96%           12.34%
</TABLE>

         Rate/Volume Analysis. For each category of interest-earning  assets and
interest-bearing liabilities, information is provided on changes attributable to
(i) changes in volume (i.e.,  changes in volume  multiplied by the old rate) and
(ii)  changes in rate (i.e.,  changes in rate  multiplied  by old  volume).  For
purposes  of this table,  changes  attributable  to both rate and volume,  which
cannot be segregated,  have been allocated  proportionately to the change due to
volume and the change due to rate.

<TABLE>
<CAPTION>

                                                           Year's Ended December 31,
                               -------------------------------------------------------------------------------------
                                            2005 vs. 2004                              2004 vs. 2003
                               ----------------------------------------    -----------------------------------------
                                      Variance Due to Changes In                Variance Due to Changes In
                               ----------------------------------------    -----------------------------------------
                                                                 Net                                       Net
                                 Average         Average      Increase/       Average        Average      Increase/
                                 Volume           Rate       (Decrease)       Volume           Rate       (Decrease)
                               -----------    -----------    -----------   -----------    -----------    -----------
<S>                           <C>            <C>            <C>           <C>            <C>            <C>
Interest Income:
   Loans (net of deferred
     costs/fees) ...........   $ 4,576,187    $   554,203    $ 5,130,390   $ 2,409,394    $  (130,276)   $ 2,279,118
   Investment securities           310,506         98,651        409,157       (72,209)        97,818         25,609
   Federal funds sold ......       (12,181)        42,890         30,709        14,984          1,637         16,621
                               -----------    -----------    -----------   -----------    -----------    -----------

Total interest income ......     4,874,512        695,744      5,570,256     2,352,169        (30,821)     2,321,348
                               -----------    -----------    -----------   -----------    -----------    -----------

Interest Expense:
   Deposits ................     1,243,516      1,044,265      2,287,781       696,636       (186,075)       510,561
   Borrowed funds ..........       266,290        383,751        650,041        52,686          1,214         53,900
                               -----------    -----------    -----------   -----------    -----------    -----------

Total interest expense .....     1,509,806      1,428,016      2,937,822       749,322       (184,861)       564,461
                               -----------    -----------    -----------   -----------    -----------    -----------

Net interest income ........   $ 3,364,706    $  (732,272)   $ 2,632,434   $ 1,602,847    $   154,040    $ 1,756,887
                               ===========    ===========    ===========   ===========    ===========    ===========

</TABLE>

Critical Accounting Policies

         Allowance  for  Losses  on  Loans.  The  allowance  for loan  losses is
established  as losses are  estimated to have  occurred  through a provision for
loan losses.  Loans that are determined to be uncollectible  are charged against
the allowance account,  and subsequent  recoveries,  if any, are credited to the
allowance.  When evaluating the adequacy of the allowance,  an assessment of the
loan portfolio will typically  include  changes in the composition and volume of
the loan portfolio,  overall portfolio quality and past loss experience,  review
of  specific  problem  loans,  current  economic  conditions  which  may  affect
borrowers'  ability  to repay,  and other  factors  which  may  warrant  current
recognition.  Such periodic assessments may, in management's  judgment,  require
the Company to recognize additions or reductions to the allowance.

                                                                               7

<PAGE>

Operating Results for the Years Ended December 31, 2005, 2004 and 2003

         Net  Interest  Income/Margins.  Our  primary  source of earnings is net
interest   income,   which  is  the   difference   between   income   earned  on
interest-earning  assets, such as loans and investment securities,  and interest
expense incurred on the interest-bearing  sources of funds, such as deposits and
borrowings.  The level of net  interest  income is  determined  primarily by the
average  balances  ("volume") and the rate spreads between the  interest-earning
assets and our funding sources.

         Net interest  income  increased to $10.7  million for 2005  compared to
$8.0  million  for 2004 and $6.3  million for 2003.  The 32.8%  increase in 2005
compared  to 2004 and 28.1%  increase in 2004  compared  to 2003 were  primarily
attributable  to the growth in average  interest-earning  assets,  which totaled
$245.6  million,  $175.0  million and $141.5  million  for 2005,  2004 and 2003,
respectively.

         Average  loans  increased  during  2005 by 41.6% to $219.2  million and
increased  by  28.1%  during  2004  to  $154.8  million  at  year-end.   Average
investments increased during 2005 by 41.0% to $24.3 million and decreased during
2004 by 8.8% to $17.2 million at year-end.

         Interest-earning  asset growth was funded by a $49.7 million, or 35.1%,
increase  in  average  interest-bearing  deposits  during  2005  and by a  $28.0
million, or 24.6%,  increase in average  interest-bearing  deposits during 2004.
The average  borrowed funds increased $12.1 million during 2005 and $2.4 million
during 2004.

         The  key  performance  measure  for net  interest  income  is the  "net
interest  margin," or net interest  income  divided by average  interest-earning
assets.  Our net  interest  margin is affected by loan  pricing,  mix of earning
assets,  and the  distribution  and pricing of deposits and borrowings.  Our net
interest margin was 4.3% for 2005,  compared to 4.6% for 2004 and 4.4% for 2003.
During 2005,  the yield on average  interest-earning  assets  increased to 7.1%,
while the cost of interest-bearing  liabilities  increased by 60 basis points to
3.1%.  During 2004,  the yield on average  interest-earning  assets  remained at
6.7%,  while the cost of  interest-bearing  liabilities  decreased  by one basis
point to 2.5%.

         Non-Interest  Income.  Non-interest  income is principally derived from
service fees on deposit accounts, BOLI income, fee income from loan services and
gains  on sale of  investment  securities.  Non-interest  income  for  2005  was
$896,367 compared to $860,986 for 2004 and $779,044 for 2003.

         Other fee income  increased to $720,882 for 2005 from $609,596 for 2004
and $496,237 for 2003 due primarily to increased  loan fees.  Loan fees included
in other fee income  consist of "exit  fees"  that are  charged on  construction
loans if the builder  sells the  property  before  completing  the  construction
project.  Exit fees are  intended  to  discourage  construction  borrowers  from
starting  projects and quickly  "flipping out" of the project before the project
is completed.

         The loss on sale of  securities  amounted to $9,240 for 2005. A gain on
sale of  securities  amounted  to $7,889 in 2004 and  $63,681  in 2003.  Service
charges  on  deposit  accounts  decreased  $58,776,  or  21.1%,  during  2005 to
$184,725. An increase of $24,375, or 11.1%, occurred during 2004 over 2003.

         Non-Interest  Expense.  Nearly all categories of  non-interest  expense
increased during 2005 and 2004.  Non-interest  expenses totaled $4.5 million for
2005  compared to $3.6 million for 2004 and $2.8 million for 2003,  increases of
$954,770,  or 26.6%, and $752,053,  or 26.5%,  for 2005 and 2004,  respectively.
These increases reflect greater costs associated with the growth of the Company,
including compensation and benefits, as well as increases in lending and deposit
activities.

8

<PAGE>

         Compensation and benefits increased $518,030, or 33.1%, during 2005 and
$294,406,  or 23.1%, during 2004, primarily due to staffing increases to support
loan and deposit growth,  as well as regular salary increases and higher benefit
costs. Occupancy,  equipment and data processing costs grew $2,471, or 0.3%, and
$166,969 or 21.1% for 2005 and 2004, respectively.

         Professional  services  fees and expenses  increased  by  $448,081,  or
154.4%,  during 2005.  Costs  associated with the holding company and additional
legal fees were the primary reason for the increase.  During 2004 a $118,688, or
69.2%,  an increase  over 2003 occurred  from normal  operations.  Marketing and
business development expenses increased by $112,060, or 63.9%, to $287,318,  due
to a major advertising  campaign conducted during 2005. Other operating expenses
decreased  $125,872,  or 21.0%, in 2005 because of less loan servicing costs and
increased to $272,767,  or 54.5%,  during 2004 due to expenses  associated  with
servicing loans.

         Income Taxes.  We recorded tax expenses of $2.3 million,  $1.7 million,
and $1.3 million in 2005, 2004 and 2003, respectively, for an effective tax rate
of 40.0% in 2005, 39.1% in 2004 and 39.0% in 2003.

Financial Condition at December 31, 2005 and December 31, 2004

         At December 31, 2005, we had total assets of $297.8  million,  compared
to $224.3 million at December 31, 2004,  representing an increase of 32.7%. This
increase was due to the continued expansion of business development efforts, and
continued  marketing of deposit and loan products.  The Company's overall growth
in its core  business,  generating  loans and  gathering of deposits grew at the
same rate as overall asset growth.

         Loans at  December  31, 2005 were  $259.0  million,  compared to $188.6
million at December 31, 2004, which represents an increase of $70.4 million,  or
37.3%.  Growth  occurred in all  categories of loans.  Investment  securities at
December 31, 2005 slightly decreased by $161,649, or 0.7%, to $24.4 million.

         Total  deposits  increased  by $52.5  million  to  $232.1  million,  an
increase of 29.2%, from $179.6 million at December 31, 2004.

         Borrowings  augmented  funding of assets by increasing by $15.6 million
or 76.5%,  to $36.0 million at December 31, 2005, from $20.4 million at December
31, 2004.

         Shareholders  equity  increased  by  $4.4  million.   The  increase  is
attributable  earnings  of $3.5  million and the  exercise of stock  options and
warrants offset by the purchase of treasury stock.

Loan Quality

         The  Company  attempts to manage the risk  characteristics  of its loan
portfolio  through  various  control  processes,  such as credit  evaluation  of
borrowers,   establishment   of  lending  limits  and   application  of  lending
procedures,  including the holding of adequate collateral and the maintenance of
compensating balances.  However, the Company seeks to rely primarily on the cash
flow of its borrowers as the  principal  source of  repayment.  Although  credit
policies are designed to minimize risk,  management  recognizes that loan losses
will occur and the amount of these losses will  fluctuate  depending on the risk
characteristics  of the loan portfolio as well as general and regional  economic
conditions.

         The  allowance  for loan losses  represents a reserve for losses in the
loan  portfolio.  The  adequacy  of the  allowance  for loan  loss is  evaluated
periodically  based on a review  of all  significant  loans,  with a

                                                                               9

<PAGE>

particular  emphasis  on  non-accruing  loans;  past due and  other  loans  that
management believes require special attention.

         For  significant   problem  loans,   management's  review  consists  of
evaluation of the  financial  strengths of the borrower and the  guarantor,  the
related  collateral,  and the effects of economic  conditions.  General reserves
against the remaining  loan  portfolio are based on analysis of historical  loan
loss  ratios,  loan  charge-offs,   delinquency   trends,   previous  collection
experience, and the risk rating on each individual loan along with an assessment
of the effects of external economic conditions.

         As  of  December  31,  2005,  we  had  approximately  $1.9  million  in
non-accruing loans,  compared with $240,816 at December 31, 2004 and $794,135 at
December 31, 2003. The increase in  non-accruing  loans was  attributable to two
borrower relationships, consisting of commercial and residential loans more than
90 days delinquent.  Foreclosure proceedings have been commenced, and we believe
the loans are adequately  collateralized.  Non-performing loans,  expressed as a
percentage  of total loans,  increased to 0.7% at December 31, 2005 from 0.1% at
December  31, 2004 and 0.5% at December 31,  2003.  At December  31,  2005,  the
allowance for loan losses was nearly twice the amount of non-accruing loans.

         The  provision  for loan  losses is a charge to earnings in the current
period to maintain the  allowance at a level  management  has  determined  to be
adequate  based upon factors noted above.  We made  provision for loan losses of
$1.2 million, $825,324 and $923,070 for 2005, 2004 and 2003, respectively.

         As of  December  31,  2005,  the  allowance  for loan  losses  was $3.6
million,  compared  to $2.6  million at December  31,  2004 and $2.3  million at
December 31, 2003, which represents a net increase of $953,161, or 36.4%, during
2005 and a net increase of $364,581,  or 16.2%,  during 2004.  The growth in the
allowance was driven by the growth and mix in the loan portfolio.

         The following table summarizes the allowance activities:

<TABLE>
<CAPTION>
                                                                     Years Ended December 31,
                                                        -------------------------------------------------
                                                              2005              2004              2003
                                                        -------------     -------------     -------------
<S>                                                    <C>               <C>               <C>
Allowance for loan losses, beginning of year ........   $   2,620,651     $   2,256,070     $   1,333,000
Loans charged off ...................................        (227,001)         (460,743)           (1,000)
Recoveries ..........................................               -                 -             1,000
Provision for loan losses ...........................       1,180,162           825,324           923,070
                                                        -------------     -------------     -------------
Allowance for loan losses, end of year ..............   $   3,573,812     $   2,620,651     $   2,256,070
                                                        =============     =============     =============
Loans (net of deferred costs/fees)
   period-end balance ...............................   $ 259,035,088     $ 188,606,990     $ 146,334,331
                                                        =============     =============     =============
Allowance as percentage of period-end loan balance...        1.4%              1.4%              1.5%
                                                        =============     =============     =============
</TABLE>

         Management's  judgment as to the level of 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. 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.  In addition an outside loan reviewer conducts an independent analysis
of the loan loss reserve to ensure completeness.

10

<PAGE>

Interest Rate Sensitivity and Liquidity

         Interest rate  sensitivity is an important  factor in the management of
the  composition  and  maturity  configurations  of earning  assets and  funding
sources.  The primary objective of  asset/liability  management is to ensure the
steady  growth of our primary  earnings  component,  net  interest  income.  Net
interest  income can fluctuate  with  significant  interest rate  movements.  To
lessen the impact of interest rate movements,  management endeavors to structure
the statement of financial condition so that re-pricing  opportunities exist for
both assets and liabilities in roughly  equivalent  amounts at approximately the
same time intervals.  Imbalances in these re-pricing  opportunities at any point
in time constitute interest rate sensitivity.

         The measurement of our interest rate  sensitivity,  or "gap," is one of
the principal techniques used in asset/liability management.  Interest sensitive
gap is the dollar difference  between assets and liabilities that are subject to
interest-rate  pricing within a given time period,  including both floating rate
or adjustable rate instruments and instruments that are approaching maturity.

         Our management and the Board of Directors  oversee the  asset/liability
management  function  through  the  asset/liability  committee  of the Board and
meeting periodically to monitor and manage the statement of financial condition,
control interest rate exposure,  and evaluate our pricing strategies.  The asset
mix of the statement of financial condition is continually evaluated in terms of
several  variables:  yield,  credit  quality,  appropriate  funding  sources and
liquidity.  Management  of  the  liability  mix of the  statement  of  financial
condition focuses on expanding the various funding sources.

         In  theory,  interest  rate risk can be  diminished  by  maintaining  a
nominal level of interest rate sensitivity.  In practice, this is made difficult
by a number of factors including  cyclical  variation in loan demand,  different
impacts on interest-sensitive assets and liabilities when interest rates change,
and the availability of funding sources. Accordingly, we undertake to manage the
interest-rate  sensitivity  gap by adjusting  the  maturity of and  establishing
rates on the earning asset  portfolio and certain  interest-bearing  liabilities
commensurate with management's  expectations  relative to market interest rates.
Management  generally  attempts  to  maintain a balance  between  rate-sensitive
assets and  liabilities  as the exposure  period is  lengthened  to minimize our
overall interest rate risk.

         Rate Sensitivity Analysis. The interest rate sensitivity position as of
December 31, 2005 is presented in the table below.  Assets and  liabilities  are
scheduled  based on maturity or  re-pricing  data except for mortgage  loans and
mortgage-backed  securities that are based on prevailing prepayment  assumptions
and core deposits which are based on core deposit  re-pricing  immediately.  The
difference between  rate-sensitive assets and rate-sensitive  liabilities or the
interest  rate  sensitivity  gap,  is shown at the  bottom of the  table.  As of
December  31,  2005,  our  interest  sensitive   liabilities  exceeded  interest
sensitive  assets within a one year period by $27.4  million,  or 0.24% of total
assets.

                                                                              11

<PAGE>

<TABLE>
<CAPTION>
                                                       As of December 31, 2005
                               ----------------------------------------------------------------------
                                             Over 3
                                             Months    Over 1 Year  Over 3 Years Over 5 Years
                                3 Months     Through     Through      Through      Through
                                 or Less    12 Months    3 Years      5 Years      30 Years    Total
                                 -------    ---------    -------      -------      --------    -----
                                                        (Dollars in thousands)
<S>                            <C>         <C>          <C>          <C>         <C>         <C>
Interest-earning assets:
   Loans ....................   $134,325    $ 16,136     $ 18,226     $ 86,572    $  3,776    $259,035
   Investment securities ....      1,612       1,314          994        2,889      18,097      24,906
   Federal funds sold .......          3           -            -            -           -           3
                                --------    --------     --------     --------    --------    --------
   Total interest-earning
     assets .................   $135,940    $ 17,450     $ 19,220     $ 89,461    $ 21,873    $283,944
                                ========    ========     ========     ========    ========    ========

Interest-bearing
   liabilities:
   Regular savings deposits..   $ 38,824    $  5,241     $  6,988     $ 13,977    $  6,988    $ 38,824
   NOW & money market
     savings deposits .......     22,371       4,245        5,660        7,237       1,578      22,371
   Time deposits ............     30,551      67,679       46,737        7,976           -     152,943
   Borrowed funds ...........     15,247       6,100        2,964       10,155       1,500      35,966
                                --------    --------     --------     --------    --------    --------
   Total interest-bearing
     liabilities ............   $106,993    $ 73,779     $ 49,701     $ 18,131    $  1,500    $250,104
                                ========    ========     ========     ========    ========    ========

Interest rate sensitive gap..   $ 28,947    $(56,329)    $(30,481)    $ 71,330    $ 20,373    $ 33,840

Cumulative interest rate
   gap ......................   $ 28,947    $(27,382)    $(57,863)    $ 13,467    $ 33,840    $      -

Ratio of rate sensitive
   assets to
   rate-sensitive
   liabilities ..............     1.27%       0.24%        0.38%        4.93%      14.58%       1.14%
</TABLE>

         Liquidity describes our ability to meet the financial  obligations that
arise out of the ordinary course of business.  Liquidity addresses the Company's
ability to meet deposit  withdrawals  on demand or at contractual  maturity,  to
repay borrowings as they mature,  and to fund current and planned  expenditures.
Liquidity is derived from  increased  repayment and income from  earning-assets.
Our loan to deposit  ratio was 111.6%,  105.0% and 102.7% at December  31, 2005,
December 31, 2004 and December 31, 2003,  respectively.  Funds received from new
and existing  depositors  provided a large  source of liquidity  during 2005 and
2004.  The Company seeks to rely  primarily on core  deposits from  customers to
provide  stable and  cost-effective  sources of funding to support local growth.
The Bank also  seeks to  augment  such  deposits  with  longer  term and  higher
yielding  certificates  of deposit.  To the extent that retail  deposits are not
adequate  to  fund  customer  loan  demand,  liquidity  needs  can be met in the
short-term  funds  market.  Longer  term  funding  requirements  can be obtained
through  advances from the Federal Home Loan Bank  ("FHLB").  As of December 31,
2005, the Bank maintained lines of credit with the FHLB totaling $23.9 million.

         As of December 31, 2005,  the Bank's  investment  securities  portfolio
included $9.1 million of  mortgage-backed  securities  that provide  significant
cash flow each month. The majority of the investment  portfolio is classified as
available for sale, is readily  marketable,  and is available to meet  liquidity
needs. The Bank's  residential real estate portfolio  includes loans,  which are
underwritten to secondary market criteria,  and provide an additional  source of
liquidity.   Presently  the  mortgage  portfolio  is  pledged  to  the  FHLB  as
collateral. Management is not aware of any known trends, demands, commitments or
uncertainties  that are  reasonably  likely  to result in  material  changes  in
liquidity.

12

<PAGE>

Off-Balance Sheet Arrangements

         The Bank is a party to financial  instruments  with  off-balance  sheet
risk in the  normal  course  of  business  to meet  the  financing  needs of its
customers.  These financial instruments include commitments to extend credit and
standby  letters of  credit.  These  instruments  involve,  to varying  degrees,
elements of credit risk in excess of the amount  recognized in the  consolidated
balance sheet. The contract or notional amounts of these instruments reflect the
extent of the  Bank's  involvement  in these  particular  classes  of  financial
instruments.  The Bank's exposure to credit loss in the event of  nonperformance
by the other party to the financial instruments for commitments to extend credit
and standby  letters of credit is  represented  by the  contractual  or notional
amount of those  instruments.  The Bank uses the same credit  policies in making
commitments  and  conditional  obligations  as  they  do  for  on-balance  sheet
instruments.

         Commitments  to extend  credit are  agreements to lend to a customer as
long as there is no  violation of any  condition  established  in the  contract.
Commitments  generally have fixed expiration dates or other termination  clauses
and may require  payment of a fee. Since many of the commitments are expected to
expire without being drawn upon, the total commitment amounts do not necessarily
represent  future  cash   requirements.   The  Bank  evaluates  each  customer's
credit-worthiness on a case-by-case basis. The amount of collateral obtained, if
deemed  necessary  upon  extension of credit,  is based on  management's  credit
evaluation.   Collateral  held  varies  but  may  include  accounts  receivable,
inventory, property, equipment and income-producing commercial properties. As of
December 31,  2005,  2004 and 2003,  commitments  to extend  credit  amounted to
approximately $101.8 million, $70.4 million and $35.2 million, respectively.

         Standby  letters of credit are  conditional  commitments  issued by the
Bank to guarantee  the  performance  of a customer to a third party.  The credit
risk  involved  in  issuing  letters of credit is  essentially  the same as that
involved in extending  loan  facilities to  customers.  As of December 31, 2005,
2004 and 2003, standby letters of credit with customers were $4.5 million,  $2.5
million and $2.3 million, respectively.

         The  Bank  does  not  issue  or hold  derivative  instruments  with the
exception of loan commitments and standby letters of credit.  These  instruments
are  issued  in  the  ordinary  course  of  business  to  meet  customer  needs.
Commitments  to fund  fixed-rate  loans were  immaterial  at December  31, 2005.
Variable-rate  commitments are generally issued for less than one year and carry
market  rates of  interest.  Such  instruments  are not likely to be affected by
annual rate caps triggered by rising  interest rates.  Management  believes that
off-balance sheet risk is not material to the results of operations or financial
condition.

Impact of Inflation and Changing Prices

         The consolidated  financial statements and notes presented elsewhere in
this Proxy  Statement have been prepared in accordance  with generally  accepted
accounting  principles,  which require the measurement of financial position and
operating results in terms of historical dollars without  considering the change
in the relative  purchasing  power of money over time and due to inflation.  The
impact of inflation is reflected in the increased cost of our operations. Unlike
most industrial companies, nearly all of our assets are monetary in nature. As a
result,  interest  rates have a greater  impact on our  performance  than do the
effects of general levels of inflation.  Interest rates do not necessarily  move
in the same direction or to the same extent as the price of goods and services.

                                                                              13

<PAGE>

Recent Accounting Pronouncements

         In December 2002, the Financial Accounting Standards Board (the "FASB")
issued Statement of Financial Accounting Standards ("SFAS") No. 148, "Accounting
for Stock-Based  Compensation - Transition and Disclosure - an amendment of FASB
Statement No. 123." This statement  provides  alternative  methods of transition
for a  voluntary  change  to the fair  value  based  method  of  accounting  for
stock-based  employee  compensation.  In  addition,  this  statement  amends the
disclosure requirements of SFAS No. 123 to require prominent disclosures in both
annual and  interim  financial  statements  about the method of  accounting  for
stock-based employee compensation and the effects of the method used on reported
results.

         In  December  2004,  the FASB  issued  SFAS  No.  123  (revised  2004),
"Share-Based Payment." This statement revises the original guidance contained in
SFAS No. 123 and supersedes  Accounting Principles Board ("APB") Opinion No. 25,
"Accounting  for  Stock  Issued to  Employees,  and its  related  implementation
guidance. Under SFAS No. 123 (revised 2004), a public entity such as the Company
will be required to measure the cost of employee  services  received in exchange
for an award of equity  instruments  based on the  grant-date  fair value of the
award (with limited  exceptions)  and recognize such cost over the period during
which an  employee is  required  to provide  service in exchange  for the reward
(usually  the  vesting  period).  For stock  options  and  similar  instruments,
grant-date fair value will be estimated using option-pricing models adjusted for
the unique  characteristics of instruments  (unless observable market prices for
the same or similar instruments are available). For public entities, such as the
Company,  SFAS No. 123 (revised  2004) is  effective as of the  beginning of the
first interim or annual  reporting  period that begins after  December 15, 2005.
The Company is currently  assessing the financial  statement  impact of adopting
SFAS No. 123(R).

                           MARKET PRICES AND DIVIDENDS

General

         The  Company's  or the Bank's  common stock has been traded in the over
the  counter  market and listed on the Nasdaq  Stock  Market  under the  trading
symbol of "PKBK" since it commenced trading upon completion of the Bank's public
offering on November 26, 2002.  The  following  table  reflects high and low bid
prices as reported on www.nasdaq.com  during each quarter of the last two fiscal
years.  The quotations  reflect  inter-dealer  prices,  without retail  mark-up,
markdown or commission and may not represent actual transactions. Prices reflect
a 20% stock dividend paid in December 2004.

        Quarter Ended                         High             Low
        -------------                         ----             ---

        March 31, 2004                       $14.58          $14.08
        June 30, 2004                        $14.33          $13.29
        September 30, 2004                   $14.60          $13.47
        December 31, 2004                    $19.45          $14.00

        March 31, 2005                       $19.40          $16.65
        June 30, 2005                        $16.85          $14.90
        September 30, 2005                   $19.99          $15.25
        December 31, 2005                    $21.71          $18.00

         The number of  shareholders  of record of common  stock as of March 22,
2006,  was  approximately  407.  This does not  reflect the number of persons or
entities who held stock in nominee or "street"  name through  various  brokerage
firms.  At March 22,  2006,  there were  2,327,995  shares of our  common  stock
outstanding. To date, the Company has not paid cash dividends.

14

<PAGE>

         Holders of the Company's common stock are entitled to receive dividends
when,  and if  declared  by the  Board  of  Directors  of out of  funds  legally
available therefor. The timing and amount of future dividends will be within the
discretion  of the  Board of  Directors  and  will  depend  on the  consolidated
earnings,  financial  condition,  liquidity,  and  capital  requirements  of the
Company and its subsidiaries,  applicable governmental regulations and policies,
and other factors  deemed  relevant by the Board.  To date,  the Company has not
paid cash dividends.

         The Company's ability to pay dividends is substantially  dependent upon
the dividends it receives from the Bank. Under current  regulations,  the Bank's
ability to pay dividends is restricted as follows.

         Under the New Jersey  Banking  Act of 1948,  a bank may declare and pay
dividends  only if after  payment of the dividend the capital  stock of the bank
will be unimpaired  and either the bank will have a surplus of not less than 50%
of its capital  stock or the payment of the dividend  will not reduce the bank's
surplus.

         The Federal Deposit  Insurance Act generally  prohibits all payments of
dividends by any insured bank that is in default of any  assessment to the FDIC.
Additionally,  because the FDIC may  prohibit a bank from  engaging in unsafe or
unsound  practices,  it is possible  that under certain  circumstances  the FDIC
could claim that a dividend payment  constitutes an unsafe or unsound  practice.
The New Jersey  Department  of Banking and  Insurance has similar power to issue
cease and desist  orders to  prohibit  what might  constitute  unsafe or unsound
practices. The payment of dividends may also be affected by other factors (e.g.,
the  need  to  maintain   adequate   capital  or  to  meet  loan  loss   reserve
requirements).

                                                                              15

<PAGE>

McGladrey & Pullen
Certified Public Accountants


Report of Independent Registered Public Accounting Firm



Directors and Shareholders
Parke Bancorp, Inc.
Sewell, New Jersey


We have audited the accompanying  consolidated  balance sheets of Parke Bancorp,
Inc.  and  Subsidiaries  as of  December  31,  2005  and  2004  and the  related
consolidated statements of income, shareholders' equity, and cash flows for each
of the three years in the period  ending  December  31,  2005.  These  financial
statements   are  the   responsibility   of  the   Company's   management.   Our
responsibility  is to express an opinion on these financial  statements based on
our audits.

We conducted our audits in accordance  with the standards of the Public  Company
Accounting Oversight Board (United States). Those standards require that we plan
and perform the audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement.  An audit includes examining, on a
test basis,  evidence  supporting  the amounts and  disclosures in the financial
statements.  An audit also includes assessing the accounting principles used and
significant  estimates  made by  management,  as well as evaluating  the overall
financial  statement  presentation.   We  believe  that  our  audits  provide  a
reasonable basis for our opinion.

In our opinion, the consolidated  financial statements referred to above present
fairly, in all material respects,  the financial position of Parke Bancorp, Inc.
and  Subsidiaries  as of December  31,  2005 and 2004,  and the results of their
operations and their cash flows for each of the three years in the period ending
December  31,  2005,  in  conformity  with U.S.  generally  accepted  accounting
principles.



/s/McGladrey & Pullen, LLP

Blue Bell, Pennsylvania
January 20, 2006

McGladrey & Pullen,  LLP is a member firm of RSM  International - an affiliation
of separate and independent legal entities.

                                      F-1
<PAGE>

Parke Bancorp, Inc. and Subsidiaries

Consolidated Balance Sheets
December 31, 2005 and 2004

<TABLE>
<CAPTION>
                                                                                        2005                  2004
--------------------------------------------------------------------------------------------------------------------
<S>                                                                           <C>                     <C>
Assets

Cash and due from banks                                                         $   4,377,196           $ 1,780,280
Federal funds sold                                                                      2,840                21,508
                                                                                ------------------------------------
   Cash and cash equivalents                                                        4,380,036             1,801,788
                                                                                ------------------------------------

Investment securities available for sale, at market value                          22,022,944            24,042,802
Investment securities held to maturity, at amortized cost
(market value 2005 - $2,322,985;  2004 - $540,740)                                  2,405,841               547,632
                                                                                ------------------------------------
   Total investment securities                                                     24,428,785            24,590,434
                                                                                ------------------------------------

Restricted stock, at cost                                                           1,348,900             1,064,200
                                                                                ------------------------------------

Loans                                                                             259,035,088           188,606,990
Less:  allowance for loan losses                                                   (3,573,812)           (2,620,651)
                                                                                ------------------------------------
   Total net loans                                                                255,461,276           185,986,339
                                                                                ------------------------------------

Bank premises and equipment, net                                                    3,079,876             3,247,179
Accrued interest receivable and other assets                                        9,111,571             7,648,623
                                                                                ------------------------------------

                                                                                $ 297,810,444         $ 224,338,563
                                                                                ====================================
</TABLE>

(Continued)

                                      F-2

<PAGE>

Parke Bancorp, Inc. and Subsidiaries

Consolidated Balance Sheets (Continued)
December 31, 2005 and 2004

<TABLE>
<CAPTION>
                                                                                       2005                  2004
---------------------------------------------------------------------------------------------------------------------
<S>                                                                               <C>                  <C>
Liabilities and Shareholders' Equity

Liabilities
  Deposits
    Noninterest-bearing demand                                                      $ 17,918,339         $ 15,960,444
    Interest-bearing                                                                 214,137,969          163,624,567
                                                                                    ---------------------------------
      Total deposits                                                                 232,056,308          179,585,011

  Borrowed funds                                                                       5,082,500            3,100,000
  Federal Home Loan Bank advances                                                     20,574,360           17,278,726
  Subordinated debentures                                                             10,310,000                    -
  Accrued interest payable and other accrued liabilities                               2,593,949            1,545,675
                                                                                    ---------------------------------
      Total liabilities                                                              270,617,117          201,509,412
                                                                                    ---------------------------------

Commitments and Contingencies (Notes 7 and 16)

Shareholders' Equity
  Common stock,
    $.10 par value, 10,000,000 shares authorized;
    2,317,364 and 2,175,559 shares issued
    at December 31, 2005 and 2004, respectively                                          231,736              217,556
  Preferred stock,
    1,000 shares authorized; no shares issued and outstanding                                  -                    -
  Additional paid-in capital                                                          20,511,410           19,390,102
  Retained earnings                                                                    6,787,118            3,292,697
  Accumulated other comprehensive loss                                                  (286,296)             (71,204)
  Treasury stock  (2,380 shares in 2005 and none in 2004), at cost                       (50,641)                   -
                                                                                    ---------------------------------
      Total shareholders' equity                                                      27,193,327           22,829,151
                                                                                    ---------------------------------

                                                                                    $297,810,444         $224,338,563
                                                                                    =================================
</TABLE>

See Notes to Consolidated Financial Statements.

                                      F-3
<PAGE>

Parke Bancorp, Inc. and Subsidiaries

Consolidated Statements of Income
Years Ended December 31, 2005, 2004 and 2003

<TABLE>
<CAPTION>
                                                              2005              2004             2003
---------------------------------------------------------------------------------------------------------
<S>                                                        <C>               <C>               <C>
Interest and Dividend Income
  Interest and fees on loans                               $ 16,108,210      $ 10,977,820      $ 8,698,702
  Interest and dividends on securities                        1,159,004           749,847          724,238
  Interest on federal funds sold                                 68,830            38,121           21,500
                                                           -----------------------------------------------
    Total interest and dividend income                       17,336,044        11,765,788        9,444,440
                                                           -----------------------------------------------

Interest Expense
  Interest on deposits                                        5,812,487         3,524,706        3,014,145
  Interest on borrowings                                        871,468           221,427          167,527
                                                           -----------------------------------------------
    Total interest expense                                    6,683,955         3,746,133        3,181,672
                                                           -----------------------------------------------

      Net interest income                                    10,652,089         8,019,655        6,262,768

Provision for Loan Losses                                     1,180,162           825,324          923,070
                                                           -----------------------------------------------
      Net interest income after provision for loan losses     9,471,927         7,194,331        5,339,698
                                                           -----------------------------------------------

Noninterest Income
  Service charges on deposit accounts                           184,725           243,501          219,126
  Other fee income                                              720,882           609,596          496,237
  Net gain (loss) on the sale of securities                      (9,240)            7,889           63,681
                                                           -----------------------------------------------
    Total noninterest income                                    896,367           860,986          779,044
                                                           -----------------------------------------------

Noninterest Expenses
  Compensation and benefits                                   2,085,301         1,567,271       1,272,865
  Occupancy, equipment and data processing                      960,059           957,588         790,619
  Marketing and business development                            287,318           175,258         101,857
  Professional services                                         738,307           290,226         171,538
  Other operating expenses                                      473,244           599,116         500,527
                                                           -----------------------------------------------
    Total noninterest expenses                                4,544,229         3,589,459        2,837,406
                                                           -----------------------------------------------

Income Before Income Tax Expense                              5,824,065         4,465,858        3,281,336

Income Tax Expense                                            2,329,644         1,744,100        1,279,437
                                                           -----------------------------------------------

    Net income                                              $ 3,494,421       $ 2,721,758      $ 2,001,899
                                                           ===============================================
Net Income Per Common Share:
  Basic                                                     $      1.55       $      1.26      $      0.96
                                                           ===============================================
  Diluted                                                   $      1.32       $      1.05      $      0.85
                                                           ===============================================

Weighted Average Shares Outstanding:
  Basic                                                       2,247,928         2,152,069        2,088,730
                                                           ===============================================
  Diluted                                                     2,644,256         2,598,864        2,351,230
                                                           ===============================================
</TABLE>

See Notes to Consolidated Financial Statements.

                                      F-4
<PAGE>
Parke Bancorp, Inc. and Subsidiaries

Consolidated Statements of Shareholders' Equity
Years Ended December 31, 2005, 2004 and 2003

<TABLE>
<CAPTION>
                                                                                          Accumulated
                                                              Additional                     Other                       Total
                                                   Common       Paid-In       Retained   Comprehensive   Treasury     Shareholders'
                                                   Stock        Capital       Earnings   Income (Loss)     Stock         Equity
-----------------------------------------------------------------------------------------------------------------------------------
<S>                                            <C>         <C>            <C>            <C>           <C>            <C>
Balance, December 31, 2002                      $ 157,606   $ 15,963,324   $  1,306,860   $  200,123    $         -    $ 17,627,913
  Stock options and warrants exercised              4,877        500,756              -            -              -         505,633
  10% common stock dividend                        16,140      2,721,272     (2,737,820)           -              -            (408)
  Comprehensive income:
    Net income - 2003                                   -              -      2,001,899            -      2,001,899
    Change in net unrealized gain on securities
      available for sale, net of reclassification
      adjustment and tax effects                        -              -              -     (142,430)             -        (142,430)
                                                                                                                       ------------
         Total comprehensive income                                                                                       1,859,469
                                                -----------------------------------------------------------------------------------
Balance, December 31, 2003                        178,623     19,185,352        570,939       57,693              -      19,992,607
  Stock options and warrants exercised              2,696        241,490              -            -              -         244,186
  20% common stock dividend                        36,237        (36,740)             -            -              -            (503)
  Comprehensive income:
    Net income - 2004                                   -              -      2,721,758            -              -       2,721,758
    Change in net unrealized gain on securities
      available for sale, net of reclassification
      adjustment and tax effects                        -              -              -     (128,897)             -        (128,897)
                                                                                                                       ------------
         Total comprehensive income                                                                                       2,592,861
                                                -----------------------------------------------------------------------------------
Balance, December 31, 2004                        217,556     19,390,102      3,292,697      (71,204)             -      22,829,151
  Stock options and warrants exercised             14,180      1,121,308              -            -              -       1,135,488
  Treasury stock purchased                              -              -              -            -        (50,641)        (50,641)
  Comprehensive income:
    Net income - 2005                                   -              -      3,494,421            -              -       3,494,421
    Change in net unrealized loss on securities
      available for sale, net of reclassification
      adjustment and tax effects                        -              -              -     (215,092)             -        (215,092)
                                                                                                                       ------------
         Total comprehensive income                                                                                       3,279,329
                                                -----------------------------------------------------------------------------------
Balance, December 31, 2005                      $ 231,736   $ 20,511,410   $  6,787,118   $ (286,296)   $   (50,641)   $ 27,193,327
                                                ===================================================================================
</TABLE>

See Notes to Consolidated Financial Statements.

                                      F-5
<PAGE>
Parke Bancorp, Inc. and Subsidiaries

Consolidated Statements of Cash Flows
Years Ended December 31, 2005, 2004 and 2003

<TABLE>
<CAPTION>
                                                                              2005              2004              2003
----------------------------------------------------------------------------------------------------------------------------
<S>                                                                     <C>               <C>                 <C>
Cash Flows from Operating Activities
  Net income                                                                $ 3,494,421       $ 2,721,758         2,001,899
  Adjustments to reconcile net income to
    net cash provided by operating activities:
  Depreciation and amortization                                                 264,105           251,482           194,874
  Provision for loan losses                                                   1,180,162           825,324           923,070
  Realized losses (gains) on sales of securities                                  9,240            (7,889)          (63,681)
  Net (accretion) amortization of purchase premiums
    and discounts on securities                                                 (72,795)            2,995            (6,714)
  Deferred income tax benefit                                                  (387,382)          (45,972)         (290,700)
  Changes in operating assets and liabilities:
  Increase in accrued interest receivable and other assets                     (932,172)         (717,345)         (857,385)
  Increase in accrued interest payable and other accrued liabilities          1,048,274           321,277           445,204
                                                                          -------------------------------------------------
      Net cash provided by operating activities                               4,603,853         3,351,630         2,346,567
                                                                          -------------------------------------------------

Cash Flows from Investing Activities
  Purchases of investment securities held to maturity                        (1,854,018)                -          (549,682)
  Purchases of investment securities available for sale                      (5,559,000)      (15,054,401)       (6,376,623)
  Purchases of restricted stock                                                (284,700)         (566,900)         (201,300)
  Proceeds from sales of investment securities available for sale             5,092,055         1,071,509         8,905,271
  Proceeds from maturities of investment securities available for sale                -         2,000,000         2,500,000
  Principal payments on mortgage-backed securities                            2,187,681         2,304,558         3,385,509
  Purchase of bank-owned life insurance                                               -                 -        (2,000,000)
  Net increase in loans                                                     (70,655,099)      (42,733,402)      (51,239,121)
  Purchases of bank premises and equipment                                      (96,802)         (259,248)         (839,313)
                                                                          -------------------------------------------------
      Net cash used in investing activities                                 (71,169,883)      (53,237,884)      (46,415,259)
                                                                          -------------------------------------------------

Cash Flows from Financing Activities
  Proceeds from exercise of stock options and warrants                        1,135,488           243,683           505,225
  Purchase of treasury stock                                                    (50,641)                -                 -
  Proceeds from borrowings                                                   27,652,500        18,850,000         8,000,000
  Repayment of borrowings                                                   (12,064,366)       (8,811,397)       (2,608,567)
  Net increase in interest-bearing deposits                                  50,513,402        33,923,365        30,791,290
  Net increase in noninterest-bearing deposits                                1,957,895         3,215,135         4,107,624
                                                                          -------------------------------------------------
      Net cash provided by financing activities                              69,144,278        47,420,786        40,795,572
                                                                          -------------------------------------------------
      Increase (Decrease) In Cash and Cash Equivalents                        2,578,248        (2,465,468)       (3,273,120)

Cash and Cash Equivalents, January 1,                                         1,801,788         4,267,256         7,540,376
                                                                          -------------------------------------------------
Cash and Cash Equivalents, December 31,                                   $   4,380,036       $ 1,801,788       $ 4,267,256
                                                                          =================================================
Supplemental Disclosure of Cash Flow Information:
  Cash paid during the year for:
    Interest on deposits and borrowed funds                               $   5,992,826       $ 3,681,682       $ 3,171,116
                                                                          =================================================
    Income taxes                                                          $   2,466,000       $ 2,179,000       $ 1,492,000
                                                                          =================================================
</TABLE>

See Notes to Consolidated Financial Statements.

                                      F-6
<PAGE>

Parke Bancorp, Inc. and Subsidiaries

Notes to Consolidated Financial Statements
--------------------------------------------------------------------------------

Note 1.   Description of Business and Summary of Significant Accounting Policies

Description of Business: Parke Bancorp, Inc. ("Parke Bancorp") is a bank holding
company headquartered in Sewell, New Jersey. Through subsidiaries, Parke Bancorp
provides individuals,  corporations and other businesses,  and institutions with
commercial and retail banking services,  principally  loans and deposits.  Parke
Bancorp  was  incorporated  in  January  2005 under the laws of the State of New
Jersey for the sole purpose of becoming  the holding  company of Parke Bank (the
"Bank").

Parke Bank (the "Bank") is a commercial  bank,  which was incorporated on August
25, 1998, and commenced operations on January 28, 1999. The Bank is chartered by
the New Jersey  Department  of Banking and  Insurance and insured by the Federal
Deposit  Insurance  Corporation.  The Bank maintains its principal office at 601
Delsea Drive,  Washington Township, New Jersey, and two additional branch office
locations,  one at 501 Tilton Road, Northfield,  New Jersey and the other at 567
Egg Harbor Road,  Washington Township,  New Jersey. In addition,  the Bank has a
loan production office in Philadelphia, Pennsylvania.

The   accounting  and  financial   reporting   policies  of  Parke  Bancorp  and
Subsidiaries (the "Company") conform to accounting principles generally accepted
in the United  States of America  and to general  practices  within the  banking
industry.  The policies that materially  affect the  determination  of financial
position, results of operations and cash flows are summarized below.

Principles of Consolidation:  The accompanying consolidated financial statements
include the accounts of Parke Bancorp,  Inc. and its  wholly-owned  subsidiaries
Parke Bank and Parke  Capital  Markets.  Parke Capital Trust I and Parke Capital
Trust II are wholly-owned  subsidiaries but are not consolidated because they do
not  meet  the  requirements.   All  significant   inter-company   balances  and
transactions have been eliminated.

Investment  Securities:  Investment  securities are classified  under one of the
following  categories:  "held to maturity" and accounted for at historical cost,
adjusted for accretion of discounts and amortization of premiums; "available for
sale" and accounted for at fair market value,  with unrealized  gains and losses
reported as a separate  component of  shareholders'  equity;  or  "trading"  and
accounted for at fair market value, with unrealized gains and losses reported as
a component of net income. The Company does not hold trading securities.

At December 31, 2005 and 2004, the Company held investment securities that would
be held for indefinite periods of time,  including securities that would be used
as part of the Company's  asset/liability  management strategy and possibly sold
in response to changes in interest rates, prepayments and similar factors. These
securities are classified as "available for sale" and are carried at fair value,
with any temporary  unrealized gains or losses reported as a separate  component
of other comprehensive income, net of the related income tax effect.

Also,  at  December  31,  2005 and 2004,  the Company  reported  investments  in
securities that were carried at cost,  adjusted for  amortization of premium and
accretion  of  discount.  The  Company  has the intent and ability to hold these
investment securities to maturity considering all reasonably  foreseeable events
or conditions. These securities are classified as "held to maturity."

Declines in the fair value of individual available for sale and held to maturity
securities  below their cost that are other than temporary result in write-downs
of the individual securities to their fair value, and the losses are included in
noninterest  income in the  statements  of  operations.  Factors  affecting  the
determination of whether an other-than-temporary impairment has occurred include
a downgrading of the security by rating agency,  a significant  deterioration in
the financial condition of the issuer, the length of time a security has been in
a loss  position,  or that  management  would not have the intent and ability to
hold a security  for a period of time  sufficient  to allow for any  anticipated
recovery in fair value.

                                      F-7
<PAGE>

Parke Bancorp, Inc. and Subsidiaries

Notes to Consolidated Financial Statements
--------------------------------------------------------------------------------

Note 1.   Description of Business and Summary of Significant Accounting Policies
          (Continued)

Investment Securities (Continued): The amortization of premiums and accretion of
discounts over the contractual lives of the related  securities,  are recognized
in interest  income using the interest  method.  Gains and losses on the sale of
such securities are accounted for using the specific identification method.

Restricted Stock:  Restricted stock includes  investments in the common stock of
the  Federal  Home Loan Bank of New York  ("FHLBNY")  and the  Atlantic  Central
Bankers Bank for which no market exists and, accordingly, is carried at cost.

Loans:  The  Company  makes  commercial,  real  estate  and  consumer  loans  to
customers.  A substantial  portion of the loan portfolio is represented by loans
in the Southern New Jersey and Philadelphia,  Pennsylvania  markets. The ability
of the  Company's  debtors to honor their  contracts is dependent  upon the real
estate and general  economic  conditions in this area. Loans that management has
the intent and ability to hold for the  foreseeable  future or until maturity or
pay-off  generally are reported at their  outstanding  unpaid principal  amount,
adjusted for charge-offs, the allowance for loan losses and any deferred fees or
costs on  originated  loans.  Interest  income on loans is  recognized as earned
based  on  contractual   interest  rates  applied  to  daily  principal  amounts
outstanding.

Loans-Nonaccrual:  Loans are  placed on  nonaccrual  status  and the  accrual of
interest  income  ceases when a default of  principal  or interest  exists for a
period of ninety days except when, in management's  judgment,  the collection of
principal and interest is reasonably  anticipated (i.e. the loan is well secured
and in the process of  collection).  Interest  receivable  on  nonaccrual  loans
previously credited to income is reversed, and subsequently recognized as income
only as received if the collection of principal is reasonably assured. Loans are
returned  to  accrual  status  when  all  the  principal  and  interest  amounts
contractually  due are  brought  current  and  future  payments  are  reasonably
assured.

Loans-Restructured:  Restructured  loans are those  loans  whose terms have been
modified because of deterioration in the financial  condition of the borrower to
provide for a reduction  of either  interest or principal or an extension of the
payment period.

Concentration  of Credit Risk: The Company's  loans are generally to diversified
customers  in Southern  New Jersey and the  Philadelphia  area of  Pennsylvania.
Loans to general building contractors,  general merchandise stores, restaurants,
motels, warehouse space, and real estate ventures (including construction loans)
constitute a majority of commercial loans. The  concentrations of credit by type
of loan are set forth in Note 4. Generally,  loans are  collateralized by assets
of the borrower and are expected to be repaid from the  borrower's  cash flow or
proceeds from the sale of selected assets of the borrower.

Loan Fees:  Loan fees and direct costs  associated  with loan  originations  are
netted and deferred.  The deferred amount is recognized as an adjustment to loan
interest  over the term of the related  loans using the  interest  method.  Loan
brokerage  fees,  which  represent  commissions  earned for  facilitating  loans
between borrowers and other Company's, are recorded in income as earned.

Allowance for Loan Losses:  The allowance for loan losses is maintained  through
charges to the provision for loan losses in the Statement of Operation as losses
are estimated to have occurred  through a provision for loan losses.  Loans that
are  determined  to be  uncollectible  are charged  against the  allowance,  and
subsequent recoveries,  if any, are credited to the allowance.  The allowance is
an amount that management  believes will be adequate to absorb  estimated losses
relating to specifically  identified loans, as well as probable credit losses in
the balance of the loan portfolio,  based on an evaluation of  collectability of
existing loans and prior loss  experience.  When  evaluating the adequacy of the
allowance, an assessment of the loan portfolio will typically include changes in
the composition and volume of the loan portfolio,  overall portfolio quality and
past loss  experience,  review  of  specific  problem  loans,  current  economic
conditions which may affect borrowers' ability to repay, and other factors which
may warrant current recognition.  Such periodic assessments may, in management's
judgment,  require the  Company to  recognize  additions  or  reductions  to the
allowance.

                                      F-8
<PAGE>

Parke Bancorp, Inc. and Subsidiaries

Notes to Consolidated Financial Statements
--------------------------------------------------------------------------------

Note 1.   Description of Business and Summary of Significant Accounting Policies
          (Continued)

Allowance for Loan Losses (Continued):  Various regulatory agencies periodically
review the adequacy of the  Company's  allowance  for loan losses as an integral
part of their  examination  process.  Such  agencies  may require the Company to
recognize  additions or reductions to the allowance based on their evaluation of
information available to them at the time of their examination. It is reasonably
possible that the above factors may change significantly and, therefore,  affect
management's determination of the allowance for loan losses in the near term.

A loan is considered  impaired when, based on current information and events, it
is probable that the Company will be unable to collect the scheduled payments of
principal or interest  when due according to the  contractual  terms of the loan
agreement.  Factors  considered by management in determining  impairment include
payment status,  collateral  value, and the probability of collecting  scheduled
principal and interest  payments when due. Loans that  experience  insignificant
payment delays and payment shortfalls  generally are not classified as impaired.
Management  determines the significance of payment delays and payment shortfalls
on a case-by-case  basis,  taking into  consideration  all of the  circumstances
surrounding  the loan and the borrower,  including the length of the delay,  the
reasons for the delay,  the borrower's  prior payment record,  and the amount of
the  shortfall in relation to the  principal  and interest  owed.  Impairment is
measured  on a loan by loan basis for  commercial  loans by either  the  present
value of expected future cash flows  discounted at the loans effective  interest
rate, the loan's obtainable market price, or the fair value of the collateral if
the loan is collateral dependent.

Large groups of smaller balance homogeneous loans are collectively evaluated for
impairment.  Accordingly,  the Company does not separately  identify  individual
consumer and residential loans for impairment disclosures.

Interest  Rate Risk:  The  Company is  principally  engaged in the  business  of
attracting  deposits from the general public and using these deposits,  together
with other borrowed and brokered funds, to make commercial, commercial mortgage,
residential  mortgage,  and consumer loans,  and to invest in overnight and term
investment  securities.  Inherent in such  activities is interest rate risk that
results from  differences in the maturities  and re-pricing  characteristics  of
these assets and liabilities. For this reason, management regularly monitors the
level of interest rate risk and the potential impact on net income.

Bank Premises and Equipment: Bank premises and equipment are stated at cost less
accumulated depreciation and amortization.  Depreciation is computed and charged
to expense using the straight-line method over the estimated useful lives of the
assets,  generally three to seven years. Leasehold improvements are amortized to
expense over the shorter of the term of the  respective  lease or the  estimated
useful  life of the  improvements,  generally  terms  ranging  from ten to forty
years.

Income Taxes:  The amount  provided for federal  income taxes is based on income
reported for consolidated financial statement purposes.

Deferred taxes are provided on a liability  method  whereby  deferred tax assets
are  recognized  for  deductible   temporary   differences  and  operating  loss
carryforwards  and deferred tax liabilities are recognized for taxable temporary
differences.  Temporary  differences  are the  difference  between the  reported
amounts of assets and liabilities  and their tax bases.  Deferred tax assets are
reduced by a valuation allowance when, in the opinion of management,  it is more
likely than not that some  portion or all of the deferred tax assets will not be
realized.  Deferred tax assets and  liabilities  are adjusted for the effects of
changes in tax laws and rates on the date of enactment.  Realization of deferred
tax assets is dependent on generating sufficient taxable income in the future.

                                      F-9
<PAGE>

Parke Bancorp, Inc. and Subsidiaries

Notes to Consolidated Financial Statements
--------------------------------------------------------------------------------

Note 1.   Description of Business and Summary of Significant Accounting Policies
          (Continued)

Use of Estimates:  The  preparation of financial  statements in conformity  with
accounting  principles  generally  accepted  in the  United  States  of  America
requires  management to make estimates and assumptions  that affect the reported
amounts  of assets and  liabilities  and  disclosure  of  contingent  assets and
liabilities  at the date of the  financial  statements  and reported  amounts of
revenues and expenses during the reporting  period.  Actual results could differ
from those estimates.  Material  estimates that are particularly  susceptible to
significant  change in the near term include the  allowance  for loan losses and
the valuation of deferred income taxes.

Reclassification:  Certain  items in the 2004  financial  statements  have  been
reclassified to conform with the 2005  presentation with no affect on net income
or shareholder's equity.

Comprehensive  Income:  Accounting  principles generally require that recognized
revenue,  expenses, gains and losses be included in net income. However, certain
changes  in assets  and  liabilities,  such as  unrealized  gains and  losses on
available  for sale  securities,  are  reported as a separate  component  of the
equity  section of the balance  sheet.  Such items,  along with net income,  are
components of comprehensive income.

The  components  of other  comprehensive  income and  related tax effects are as
follows:

<TABLE>
<CAPTION>
                                                                          2005            2004           2003
                                                                       ------------------------------------------
<S>                                                                  <C>             <C>            <C>
Unrealized holding losses on available for sale securities             $ (367,719)     $ (206,939)    $ (173,703)
Reclassification adjustment for net losses (gains) realized in income       9,240          (7,889)       (63,681)
                                                                       ------------------------------------------
Net unrealized losses                                                    (358,479)       (214,828)      (237,384)
Tax effect                                                                143,387          85,931         94,954
                                                                       ------------------------------------------
     Net-of-tax amount                                                 $ (215,092)     $ (128,897)    $ (142,430)
                                                                       ==========================================
</TABLE>


Earnings  Per Common  Share:  Basic  earnings  per common  share is  computed by
dividing net income by the weighted average number of common shares  outstanding
during the period.  Diluted  earnings  per common share  considers  common stock
equivalents  (when dilutive)  outstanding  during the period such as options and
warrants  outstanding.  Both basic and diluted  earnings per share  computations
give retroactive  effect to stock dividends declared in 2004 (Note 14). Earnings
per common share have been computed  based on the  following for 2005,  2004 and
2003:

<TABLE>
<CAPTION>
                                                                          2005            2004           2003
                                                                       ------------------------------------------
<S>                                                                   <C>             <C>            <C>
Net income                                                             $3,494,421      $2,721,758     $2,001,899
                                                                       ==========================================

Average number of common shares outstanding                             2,247,928       2,152,069      2,088,730
Effect of dilutive options                                                396,328         446,795        262,500
                                                                       ------------------------------------------

Average number of common shares outstanding used
to calculate diluted earnings per common share                          2,644,256       2,598,864      2,351,230
                                                                       ==========================================
</TABLE>

Statement  of Cash  Flows:  Cash  and  cash  equivalents  include  cash on hand,
balances  due from  banks  and  federal  funds  sold.  For the  purposes  of the
statement of cash flows, changes in loans and deposits are shown on a net basis.

                                      F-10
<PAGE>

Parke Bancorp, Inc. and Subsidiaries

Notes to Consolidated Financial Statements
--------------------------------------------------------------------------------

Note 1.   Description of Business and Summary of Significant Accounting Policies
          (Continued)

Stock-Based  Employee   Compensation:   The  Company  has  stock-based  employee
compensation plans which are more fully described in Note 14. As permitted under
generally accepted accounting  principles,  grants of options under the plan are
accounted for under the recognition  and  measurement  principles of APB Opinion
No. 25, Accounting for Stock Issued to Employees,  and related  Interpretations.
Because  options  granted  under  the plans had an  exercise  price  equal to or
greater  than the market  value of the  underlying  common  stock on the date of
grant, no stock-based employee  compensation cost is included in determining net
income.  The following  table  illustrates the effect on net income and earnings
per share for 2005,  2004 and 2003 if the  Company  had  applied  the fair value
recognition   provisions  of  Financial   Accounting  Standards  Board  ("FASB")
Statement  No.  123,  Accounting  for  Stock-Based  Employee  Compensation,   to
stock-based  employee  compensation.  Both basic and diluted  calculations  give
retroactive effect to stock dividends declared.

<TABLE>
<CAPTION>
                                                                           2005            2004           2003
                                                                       -------------------------------------------
<S>                                                                    <C>             <C>            <C>
Net income, as reported                                                 $3,494,421      $2,721,758     $2,001,899

Deduct total stock-based compensation expense
determined under the fair value method for all
awards, net of related tax effects                                        (670,000)        (41,000)      (114,000)
                                                                       -------------------------------------------
  Pro forma net income                                                  $2,824,421      $2,680,758     $1,887,899
                                                                       ===========================================

Earnings per share:
Basic:
  As reported                                                                $1.55           $1.26          $0.96
  Pro forma                                                                  $1.26           $1.25          $0.90
Diluted:
  As reported                                                                $1.32           $1.05          $0.85
  Pro forma                                                                  $1.07           $1.03          $0.80

</TABLE>

Recent Accounting Pronouncements:

EITF  Issue  03-1  The  Meaning  of  Other-Than-Temporary   Impairment  and  Its
Application to Certain Investments

In March 2004, the Financial  Accounting  Standards Board ("FASB") released EITF
Issue 03-1, The Meaning of  Other-Than-Temporary  Impairment and Its Application
to Certain  Investments  ("Issue 03-1") which provides  guidance for determining
when an  investment  is  impaired  and  whether  the  impairment  is other  than
temporary.  In  September  2004,  the FASB  approved  for  issuance a FASB Staff
Position  ("FSP") on Issue  03-1.  This  position  delayed the  effective  date,
originally set for periods  beginning  after June 15, 2004, for the  measurement
and recognition  guidance contained in paragraphs 10-20 of Issue 03-1.  However,
it  did  not  suspend  the   requirements   to  recognize   other-than-temporary
impairments as required by existing authoritative  literature. On June 29, 2005,
the  FASB  decided  not  to  provide  additional  guidance  on  the  meaning  of
other-than-temporary  impairment  and directed the staff to propose a final FSP,
EITF Issue 03-1-a,  which will supersede Issue 03-1. The final FSP (retitled FSP
FAS 115-1 and FAS 124-1, The Meaning of Other-Than-Temporary  Impairment and Its
Application of Certain  Investments) was issued on November 3, 2005 and replaces
the guidance set forth in certain  paragraphs  of Issue 03-1 with  references to
existing  other-than-temporary  impairment  guidance.  The  final  FSP  is to be
applied  prospectively  and is effective  for the Company  beginning  January 1,
2006.  The  Company  does not expect  application  of the FSP to have a material
impact on the consolidated financial statements.

                                      F-11

<PAGE>

Parke Bancorp, Inc. and Subsidiaries

Notes to Consolidated Financial Statements
--------------------------------------------------------------------------------

Note 1.   Description of Business and Summary of Significant Accounting Policies
          (Continued)

Recent Accounting Pronouncements (Continued):

Statement No. 123 (Revised) Share-Based Payment ("SFAS No. 123(R)")

In December 2004, the FASB issued SFAS No. 123(R), which establishes  accounting
standards for transactions in which an entity  exchanges its equity  instruments
for goods or services.  SFAS No. 123(R) also addresses  transactions in which an
entity  incurs  liabilities  in exchange for goods or services that are based on
the fair value of the entity's equity instruments. SFAS No. 123(R) covers a wide
range  of  share-based   compensation   arrangements  including  stock  options,
restricted  stock plans,  performance-based  stock  awards,  stock  appreciation
rights,  and employee stock purchase plans.  SFAS No. 123(R)  replaces  existing
requirements under SFAS No. 123, "Accounting for Stock-Based  Compensation," and
eliminates  the ability to account  for  share-based  compensation  transactions
using APB Opinion No. 25. The  provisions  for SFAS No. 123(R) are effective for
the  Company on  January 1, 2006.  As of  December  31,  2005,  all of the stock
options the Company has granted have been vested and therefore  will not require
any  stock-based  employee  compensation  expense  to be  recognized  in  future
periods. The financial impact of any stock options granted in the future will be
determined using the Black-Scholes option pricing model.


Note 2.   Cash and Due from Banks

The Company  maintains  various deposit accounts with other banks to meet normal
funds transaction requirements, to satisfy deposit reserve requirements,  and to
compensate  other  banks  for  certain  correspondent  services.  Management  is
responsible  for  assessing  the credit  risk of its  correspondent  banks.  The
withdrawal or usage  restrictions  of these  balances did not have a significant
impact on the operations of the Company as of December 31, 2005, because reserve
requirements were covered by vault cash.


Note 3.   Investment Securities

The Company's investment securities as of December 31, 2005 were as follows:

<TABLE>
<CAPTION>
                                                                       Gross           Gross
                                                     Amortized       Unrealized      Unrealized         Market
                                                       Cost            Gains           Losses           Value
                                                  -----------------------------------------------------------------
<S>                                                  <C>             <C>           <C>             <C>
Available For Sale
------------------
U.S. Government sponsored entities                   $  6,533,381      $     60     $ 331,051 60    $  6,202,390
Corporates                                              6,317,394        13,047           14,143       6,316,298
Stock                                                     500,000             -                -         500,000
Mortgage-backed securities                              9,149,322        13,671          158,737       9,004,256
                                                  ---------------------------------------------------------------
Total securities available for sale                  $ 22,500,097      $ 26,778        $ 503,931    $ 22,022,944
                                                  ===============================================================
Held to Maturity
----------------
Municipals                                           $  2,405,841      $      -        $  82,856    $  2,322,985
                                                  ===============================================================
</TABLE>

                                      F-12
<PAGE>

Parke Bancorp, Inc. and Subsidiaries

Notes to Consolidated Financial Statements
--------------------------------------------------------------------------------

Note 3.   Investment Securities (Continued)

The Company's investment securities as of December 31, 2004 were as follows:

<TABLE>
<CAPTION>
                                                              Gross            Gross
                                           Amortized        Unrealized       Unrealized        Market
                                             Cost             Gains            Losses          Value
                                        ---------------------------------------------------------------
<S>                                      <C>               <C>              <C>          <C>
Available For Sale
------------------
U.S. Government sponsored entities        $ 8,886,211       $  10,883        $ 226,864    $  8,670,230
Mutual Funds                                3,237,520                           41,192       3,196,328
Mortgage-backed securities                 12,037,745         178,090           39,591      12,176,244
                                        ---------------------------------------------------------------
Total securities available for sale      $ 24,161,476       $ 188,973        $ 307,647    $ 24,042,802
                                        ===============================================================
Held to Maturity
----------------
Municipals                               $    547,632       $       -        $   6,892    $    540,740
                                        ===============================================================
</TABLE>

The  amortized  cost and  estimated  market value of  investment  securities  at
December 31, 2005 by contractual maturities are shown below. Expected maturities
may differ from contractual  maturities for  mortgage-backed  securities because
the mortgages  underlying the  securities  may be called or prepaid  without any
penalties;  therefore,  these  securities  are  not  included  in  the  maturity
categories in the following maturity summary.

<TABLE>
<CAPTION>
                                                          Available For Sale                 Held to Maturity
                                                  -----------------------------------------------------------------
                                                       Amortized         Market          Amortized         Market
                                                         Cost            Value             Cost            Value
                                                  -----------------------------------------------------------------
<S>                                                 <C>             <C>               <C>             <C>
Maturing within one year                             $          -    $          -      $         -     $         -
Maturing after one year but within five years           3,026,191       2,997,690          538,055         523,697
Maturing after five years, but within ten years                 -               -                -               -
Maturing after ten years                                9,824,584       9,520,998        1,867,786       1,799,288
                                                  -----------------------------------------------------------------
                                                       12,850,775      12,518,688        2,405,841       2,322,985
Mortgage-backed securities                              9,149,322       9,004,256                -               -
Stock                                                     500,000         500,000                -               -
                                                  -----------------------------------------------------------------
     Total securities                                $ 22,500,097    $ 22,022,944      $ 2,405,841     $ 2,322,985
                                                  =================================================================
</TABLE>


Gross realized gains on the sale of investment  securities were $53,770 in 2005,
$8,043  in 2004  and  $75,814  in 2003.  Gross  realized  losses  on the sale of
investments securities were $63,010 in 2005, $155 in 2004 and $12,133 in 2003.

As of December 31, 2005, approximately  $13,273,000 of investment securities are
pledged as collateral for borrowed funds (Note 10). In addition, securities with
a carrying value of $478,595 were pledged to secure public  deposits at December
31, 2005.

As of December 31, 2004, approximately  $12,187,192 of investment securities are
pledged as collateral for borrowed funds (Note 10). In addition, securities with
a carrying value of $558,880 were pledged to secure public  deposits at December
31, 2004.

                                      F-13

<PAGE>

Parke Bancorp, Inc. and Subsidiaries

Notes to Consolidated Financial Statements
--------------------------------------------------------------------------------

Note 3.   Investment Securities (Continued)

The fair value of securities with  unrealized  losses by length of time that the
individual  securities  have been in a continuous  loss position at December 31,
2005, are as follows:

<TABLE>
<CAPTION>

                                                    Continuous Unrealized Losses      Continuous Unrealized Losses
                                                  Existing for Less Than 12 Months  Existing for More Than 12 Months
                                                  ------------------------------------------------------------------
                                                                        Unrealized                       Unrealized
                                                     Market Value         Losses      Market Value         Losses
                                                  -----------------------------------------------------------------
<S>                                                 <C>                <C>            <C>               <C>
Available For Sale
------------------
U.S. Government sponsored entities                   $  3,427,330       $  56,051      $ 2,275,000       $ 275,000
Corporates                                                513,200          12,991          746,318           1,152
Stock                                                           -               -                -               -
Mortgage-backed securities                              6,225,181         158,132          153,736             605
                                                  -----------------------------------------------------------------
                                                       10,165,711         227,174        3,175,054         276,757
Held to Maturity
----------------
Municipals                                              1,799,287          68,499          523,698          14,357
                                                  -----------------------------------------------------------------
Total temporarily impaired securities                $ 11,964,998       $ 295,673      $ 3,698,752       $ 291,114
                                                  =================================================================
</TABLE>

Management  does not believe any individual  unrealized  loss as of December 31,
2005 represents an other-than-temporary impairment. A total of 25 securities are
included in the continuous  unrealized portion, of which 22 are in the available
for sale category.  The unrealized  losses on these securities are primarily due
to changes in general  market  interest  rates.  The  Company  believes  it will
collect all amounts  contractually due on these securities as it has the ability
to hold these  securities until the fair value is at least equal to the carrying
value. Should the impairment become other-than-temporary,  the carrying value of
the  investment  will be reduced  and the  unrealized  loss be  recorded  in the
statement of income.

The fair value of securities with  unrealized  losses by length of time that the
individual  securities  have been in a continuous  loss position at December 31,
2004 are as follows:

<TABLE>
<CAPTION>

                                                    Continuous Unrealized Losses      Continuous Unrealized Losses
                                                  Existing for Less Than 12 Months  Existing for More Than 12 Months
                                                  ------------------------------------------------------------------
                                                                        Unrealized                       Unrealized
                                                     Market Value         Losses      Market Value         Losses
                                                  -----------------------------------------------------------------
<S>                                                 <C>                <C>            <C>               <C>
Available For Sale
------------------
U.S. Government sponsored entities                    $   746,250        $     94      $ 2,050,000       $ 226,770
Mutual funds                                               74,888             196        3,121,440          40,996
Mortgage-backed securities                              2,167,568          39,591                -               -
                                                  -----------------------------------------------------------------
                                                        2,988,706          39,881        5,171,440         267,766
Held to Maturity
----------------
Municipals                                                      -               -          540,740           6,892
                                                  -----------------------------------------------------------------
Total temporarily impaired securities                 $ 2,988,706        $ 39,881      $ 5,712,180       $ 274,658
                                                  =================================================================
</TABLE>

                                      F-14
<PAGE>

Parke Bancorp, Inc. and Subsidiaries

Notes to Consolidated Financial Statements
--------------------------------------------------------------------------------


Note 4.   Loans

The composition of net loans as of December 31, 2005 and 2004 are as follows:

                                                     2005            2004
                                                  ------------------------------

Commercial                                        $ 236,013,459   $ 167,376,451
Residential real estate                              18,482,968      17,612,920
Consumer                                              5,053,908       3,963,818
                                                  ------------------------------
Total loans                                         259,550,335     188,953,189
Less: allowance for loan losses                      (3,573,812)     (2,620,651)
Less: net deferred loan fees                           (515,247)       (346,199)
                                                  ------------------------------
     Net loans                                    $ 255,461,276   $ 185,986,339
                                                  ==============================


At  December  31,  2005 and 2004,  approximately  $16,358,000  and  $14,970,000,
respectively,  of residential real estate and consumer loans were pledged to the
FHLBNY on borrowings (Note 10).


Note 5.   Loans and Deposits to Related Parties

In the normal  course of  business,  the Company has granted  loans to officers,
directors and their affiliates (related parties).  In the opinion of management,
the terms of these loans,  including interest rates and collateral,  are similar
to those prevailing for comparable  transactions with other customers and do not
involve more than a normal risk of collectability.

An analysis of the activity of such related  party loans for 2005 and 2004 is as
follows:



                                                     2005            2004
                                                  ------------------------------

Balance, beginning of year                         $ 10,325,629    $ 10,219,179
Advances                                              5,619,948       8,761,251
Less: repayments                                     (3,597,951)     (8,654,801)
                                                  ------------------------------
Balance, end of year                               $ 12,347,626    $ 10,325,629
                                                  ==============================

                                      F-15
<PAGE>

Parke Bancorp, Inc. and Subsidiaries

Notes to Consolidated Financial Statements
--------------------------------------------------------------------------------

Note 6.   Allowance for Loan Losses

An analysis of the allowance for loan losses for 2005 and 2004 is as follows:

<TABLE>
<CAPTION>
                                                          2005            2004             2003
                                                  -------------------------------------------------

<S>                                                  <C>             <C>              <C>
Balance, beginning of year                            $ 2,620,651     $ 2,256,070      $ 1,333,000
Provision for loan losses                               1,180,162         825,324          923,070
Charge offs                                              (227,001)       (460,743)          (1,000)
Recoveries                                                      -               -            1,000
                                                  -------------------------------------------------
Balance, end of year                                  $ 3,573,812     $ 2,620,651      $ 2,256,070
                                                  =================================================
</TABLE>

Information  about impaired  loans and nonaccrual  loans as of and for the years
ended December 31, 2005 and 2004 is as follows:

                                                          2005           2004
                                                      --------------------------

Impaired loans with a valuation allowance             $   511,211    $   240,816
Impaired loans without a valuation allowance                    -              -
                                                      --------------------------
Total impaired loans                                  $   511,211    $   240,816
                                                      ==========================
Related allowance for loan losses for impaired loans  $    60,181    $   114,135
                                                      ==========================
Nonaccrual loans                                      $ 1,935,000    $   240,816
                                                      ==========================
Loans past due ninety days or more and still
  accruing interest                                   $   665,000    $    54,859
                                                      ==========================
Average monthly balance of impaired loans
  (based on month-end balances)                       $   457,000    $   709,000
                                                      ==========================
Interest income recognized on cash basis
  on impaired loans                                   $    36,914    $    12,674
                                                      ==========================

Interest  income of $66,000,  $64,000 and  $29,000  would have been  recorded on
non-accrual  loans in accordance  with their  original  terms in 2005,  2004 and
2003, respectively.

                                      F-16
<PAGE>

Parke Bancorp, Inc. and Subsidiaries

Notes to Consolidated Financial Statements
--------------------------------------------------------------------------------

Note 7.   Bank Premises and Equipment

A  summary  of the  cost  and  accumulated  depreciation  of Bank  premises  and
equipment as of December 31, 2005 and 2004 is as follows:

                                                       2005            2004
                                                   ----------------------------

Land                                                 $ 470,000     $   470,000
Building and improvements                            2,587,564       2,536,512
Furniture and equipment                                873,017         882,812
                                                   ----------------------------
Total premises and equipment                         3,930,581       3,889,324
Less: accumulated depreciation
and amortization                                      (850,705)       (642,145)
                                                   ----------------------------
   Premises and equipment, net                     $ 3,079,876     $ 3,247,179
                                                   ============================

Depreciation  expense  was  $264,105 in 2005,  $251,482 in 2004 and  $194,874 in
2003.

The  Company  has a  non-cancelable  operating  lease  agreement  related to its
Northfield  branch  office.  The term of the lease is for 10 years through March
2011 with two  5-year  renewal  options.  The  Company  is  responsible  for its
pro-rata share of real estate taxes, and all insurance,  utilities,  maintenance
and repair costs for the benefit of the branch  office.  The company has a month
to month lease for the loan production office in Philadelphia,  Pennsylvania. In
addition,  the Company leases certain computer software under an operating lease
expiring 2008. At December 31, 2005, the required  future rental  payments under
these leases are as follows:

        Years Ending December 31,
        -----------------------------------------------------

                2006                            $   187,000
                2007                                203,000
                2008                                204,000
                2009                                 68,000
                2010                                 69,000
             Thereafter                              29,000
                                                -----------
        Total minimum lease payments            $   760,000
                                                ===========

Rent expense was approximately $176,000 in 2005, $165,000 in 2004 and $53,000 in
2003.


Note 8.   Bank-Owned Life Insurance

The Bank has  purchased  $4,500,000  of  Bank-owned  life  insurance on selected
officers,  which amount is recorded at its cash surrender  value and is included
in  "accrued   interest   receivable  and  other  assets"  in  the  accompanying
consolidated  balance  sheets.  There  are no  restrictions  on  the  use of any
proceeds  and at  December  31,  2005 and 2004 there were no loans  outstanding.
Earnings from the policies,  which amounted to  approximately  $186,000 in 2005,
$199,000 in 2004 and $180,000 in 2003, are credited to "other fee income" in the
accompanying Statement of Income.

                                      F-17
<PAGE>

Parke Bancorp, Inc. and Subsidiaries

Notes to Consolidated Financial Statements
--------------------------------------------------------------------------------

Note 9.   Deposits

Deposits at December 31, 2005 and 2004 consisted of the following:

                                                     2005            2004
                                                  ------------------------------

Demand deposits, noninterest-bearing              $  17,918,339    $ 15,960,444
Demand deposits, interest-bearing                    22,371,195      28,327,050
Savings deposits                                     38,823,726      26,320,106
Time deposits of $100,000 or more                    95,282,066      56,628,000
Other time deposits                                  57,660,982      52,349,411
                                                  ------------------------------
     Total deposits                               $ 232,056,308   $ 179,585,011
                                                  ==============================

Time deposits included brokered deposits totaling approximately  $67,159,000 and
$38,880,000 and at December 31, 2005 and 2004, respectively.

Scheduled  maturities  of  certificates  of deposit at December  31, 2005 are as
follows:

        Years Ending December 31,
        -----------------------------------------------------

                2006                            $    98,230,399
                2007                                 38,856,108
                2008                                  7,881,030
                2009                                  3,597,173
                2010                                  4,378,338
                                                ---------------
                                                $   152,943,048
                                                ===============

Deposits from related parties totaled approximately $5,740,000 and $6,092,000 at
December 31, 2005 and 2004, respectively.


Note 10.   Borrowings

An analysis of borrowings as of December 31, 2005 and 2004 is as follows:

<TABLE>
<CAPTION>
                                                                                      2005                      2004
                                                                        ------------------------------------------------------
                                                        Maturity Date          Amount        Rate        Amount         Rate
------------------------------------------------------------------------------------------------------------------------------
<S>                                                 <C>               <C>                <C>       <C>              <C>
Borrowed funds:

Federal Home Loan Bank Repurchase Agreements          June 2006              $ 1,000,000     3.05%     $ 1,000,000      3.05%
                                                      December 2006            1,100,000     3.33%       1,100,000      3.33%
Repurchase agreements                                 February 2005                    -         -       1,000,000      2.40%
                                                      January 2006               982,500     3.99%               -          -
                                                      February 2006            1,000,000     4.33%               -          -
                                                      March 2006               1,000,000     4.49%               -          -
                                                                             ------------              ------------
                                                                             $ 5,082,500               $ 3,100,000
                                                                             ============              ============
</TABLE>

                                      F-18
<PAGE>

Parke Bancorp, Inc. and Subsidiaries

Notes to Consolidated Financial Statements
--------------------------------------------------------------------------------

Note 10.   Borrowings (Continued)

<TABLE>
<CAPTION>

                                                                              2005                      2004
                                                                        ------------------------------------------------------
                                                        Maturity Date        Amount        Rate        Amount         Rate
------------------------------------------------------------------------------------------------------------------------------

<S>                                               <C>                   <C>                <C>       <C>            <C>
Federal Home Loan Bank  Advances                      January 2005          $          -         -    $  8,000,000      1.94%
                                                      July 2005                        -         -       1,000,000      1.57%
                                                      December 2005                    -         -       2,000,000      3.10%
                                                      January 2006             6,610,000     4.08%               -          -
                                                      February 2006              250,000     4.52%               -          -
                                                      March 2006                 250,000     4.61%               -          -
                                                      April 2006               1,000,000     4.46%               -          -
                                                      June 2006                  250,000     4.78%               -          -
                                                      October 2006             1,000,000     4.70%               -          -
                                                      December 2006            1,750,000     4.05%       1,000,000      3.41%
                                                      January 2007               464,360     4.73%         528,726      4.73%
                                                      December 2007              750,000     4.92%               -          -
                                                      June 2008                  750,000     3.89%         750,000      3.89%
                                                      December 2008            1,000,000     4.97%               -          -
                                                      June 2009                4,000,000     4.07%       4,000,000      4.07%
                                                      December 2010            1,000,000     5.05%               -          -
                                                      December 2015            1,500,000     5.02%               -          -
                                                                            -------------             -------------
                                                                            $ 20,574,360              $ 17,278,726
                                                                            =============             =============
Subordinated debentures - capital trusts              November 2035         $  5,155,000     6.04%    $          -          -
                                                      November 2035            5,155,000     6.25%               -          -
                                                                            -------------             -------------
                                                                            $ 10,310,000              $          -
                                                                            =============             =============
</TABLE>

At December  31,  2005,  the Company had a  $23,870,500  line of credit from the
FHLBNY. In addition, the Company has available a $23,870,500 one-month overnight
re-pricing line of credit.

Certain  investment  securities  (Note 3),  loans (Note 4), and FHLBNY stock are
pledged as collateral for borrowings.

Subordinated  Debentures - Capital  Trusts:  On August 23, 2005,  Parke  Capital
Trust I, a Delaware  statutory  business trust and a wholly-owned  Subsidiary of
the Company,  issued  $5,000,000  of variable  rate capital  trust  pass-through
securities to investors.  The variable interest rate re-prices  quarterly at the
three-month  LIBOR plus 1.66% and was 6.04% at December 31, 2005.  Parke Capital
Trust I purchased  $5,155,000  of variable rate junior  subordinated  deferrable
interest  debentures from the Company.  The debentures are the sole asset of the
Trust. The terms of the junior subordinated debentures are the same as the terms
of the  capital  securities.  The  Company  has also  fully and  unconditionally
guaranteed  the  obligations  of the Trust  under the  capital  securities.  The
capital  securities are redeemable by the Company on or after November 23, 2010,
at par, or earlier if the deduction of related interest for federal income taxes
is prohibited, classification as Tier 1 Capital is no longer allowed, or certain
other  contingencies  arise. The capital  securities must be redeemed upon final
maturity of the  subordinated  debentures  on  November  23,  2035.  Proceeds of
approximately  $4,200,000  were  contributed to paid-in capital at the Bank. The
remaining $800,000 was retained at the Company for future use.

                                      F-19
<PAGE>
Parke Bancorp, Inc. and Subsidiaries

Notes to Consolidated Financial Statements
--------------------------------------------------------------------------------

Note 10.   Borrowings (Continued)

Subordinated Debentures - Capital Trusts (Continued):  On August 23, 2005, Parke
Capital  Trust  II, a  Delaware  statutory  business  trust  and a  wholly-owned
Subsidiary  of the Company,  issued  $5,000,000 of  fixed/variable  rate capital
trust  pass-through  securities  to investors.  Currently,  the interest rate is
fixed at 6.25%.  The  fixed/variable  interest rate  re-prices  quarterly at the
three-month LIBOR plus 1.66% beginning November 23, 2010. Parke Capital Trust II
purchased  $5,155,000 of variable rate junior  subordinated  deferrable interest
debentures from the Company. The debentures are the sole asset of the Trust. The
terms of the  junior  subordinated  debentures  are the same as the terms of the
capital securities.  The Company has also fully and  unconditionally  guaranteed
the  obligations  of  the  Trust  under  the  capital  securities.  The  capital
securities  are redeemable by the Company on or after November 23, 2010, at par,
or earlier if the  deduction  of related  interest  for federal  income taxes is
prohibited,  classification  as Tier 1 Capital is no longer allowed,  or certain
other  contingencies  arise. The capital  securities must be redeemed upon final
maturity of the  subordinated  debentures  on  November  23,  2035.  Proceeds of
approximately  $4,200,000  were  contributed to paid-in capital at the Bank. The
remaining $800,000 was retained at the Company for future use.

The  subordinates  debentures  are  classified as  liabilities  in the Company's
consolidated  balance  sheet at December  31, 2005 but a majority was allowed as
Tier I Capital for regulatory capital purposes (Note 13).


Note 11.   Income Taxes

The net deferred tax asset,  which is included in "accrued  interest  receivable
and other assets" at December 31, 2005 and 2004, includes the following:

<TABLE>
<CAPTION>
                                                     2005           2004
                                                 ----------------------------
<S>                                              <C>             <C>
Deferred tax assets                              $ 1,676,004     $ 1,034,350
Deferred tax liabilities                            (470,039)       (359,161)
                                                 ----------------------------
     Net deferred tax asset                      $ 1,205,965       $ 675,189
                                                 ============================
</TABLE>

Income tax expense for 2005, 2004 and 2003 consisted of the following:

<TABLE>
<CAPTION>
                                     2005            2004             2003
                                 ---------------------------------------------
<S>                             <C>             <C>              <C>
Current tax expense:
Federal                          $ 2,092,771     $ 1,357,072      $ 1,212,122
State                                624,255         433,000          358,015
                                 ---------------------------------------------
                                   2,717,026       1,790,072        1,570,137
Deferred tax (benefit)              (387,382)        (45,972)        (290,700)
                                 ---------------------------------------------
     Income tax expense          $ 2,329,644     $ 1,744,100      $ 1,279,437
                                 =============================================
</TABLE>

The components of the net deferred tax asset, which is included in other assets,
are as follows:

<TABLE>
<CAPTION>
                                                   2005            2004
                                               ----------------------------
<S>                                           <C>             <C>
Allowance for loan losses                      $ 1,354,558     $ 1,004,511
Deferred loan costs                               (213,276)       (213,276)
Securities available for sale                      190,857          47,470
Other                                             (126,174)       (163,516)
                                               ----------------------------
                                               $ 1,205,965       $ 675,189
                                               ============================
</TABLE>
                                      F-20
<PAGE>

Parke Bancorp, Inc. and Subsidiaries

Notes to Consolidated Financial Statements
--------------------------------------------------------------------------------

Note 11.   Income Taxes (Continued)

A reconciliation  of the Company's  effective income tax rate with the statutory
Federal rate for 2005, 2004 and 2003 is as follows:

<TABLE>
<CAPTION>
                                                   2005            2004             2003
                                               ---------------------------------------------
<S>                                           <C>             <C>              <C>
Tax expense at statutory rate (35%)            $ 2,038,423     $ 1,563,050      $ 1,148,467
Permanent differences and other, net                 3,513         (39,564)         (31,128)
State income taxes, net of Federal tax benefit     345,949         265,272          194,911
Benefit of income taxed at lower rates             (58,241)        (44,658)         (32,813)
                                               ---------------------------------------------
                                               $ 2,329,644     $ 1,744,100      $ 1,279,437
                                               =============================================
</TABLE>

Note 12.   Retirement Plans

Supplemental Executive Retirement Plan: The Company has a Supplemental Executive
Retirement  Plan  ("SERP")  covering  certain  members  of  management.  The net
periodic SERP pension cost was approximately  $246,000 in 2005, $207,000 in 2004
and $151,000 in 2003. The unfunded  accumulated  benefit  obligation,  which was
included in "accrued interest payable and other liabilities",  was approximately
$894,000 at December 31, 2005 and $672,000 at December 31, 2004.

Simple  IRA  Plan:  The  Company  has a simple  IRA Plan (the  "Plan")  covering
substantially  all  employees.  The Company is required to  contribute 2% of the
employees'   eligible  salary  to  the  Plan.  All  Company   contributions  are
immediately  vested.  Plan expense  amounted to  approximately  $33,000 in 2005,
$22,000 in 2004 and $16,000 in 2003.


Note 13.   Regulatory Matters

Capital  Ratios:  Parke  Bancorp and the Bank are subject to various  regulatory
capital  requirements  administered by the federal banking agencies.  Failure to
meet minimum capital  requirements can initiate certain mandatory - and possibly
additional discretionary - actions by regulators that, if undertaken, could have
a direct material effect on the Company's  financial  statements.  Under capital
adequacy  guidelines and the Regulatory  framework for prompt corrective action,
Parke Bancorp and the Bank must meet specific  capital  guidelines  that involve
quantitative measures of its assets, liabilities,  and certain off-balance-sheet
items as calculated under regulatory accounting practices. Parke Bancorp and the
Bank's  capital  amounts  and  classification  are also  subject to  qualitative
judgments  by the  regulators  about  components,  risk  weightings,  and  other
factors.

Quantitative  measures  established  by  regulation to ensure  capital  adequacy
require Parke Bancorp and the Bank to maintain  minimum  amounts and ratios (set
forth in the  following  table) of total and Tier I capital  (as  defined in the
regulations)  to  risk-weighted  assets (as defined),  and of Tier I capital (as
defined) to average assets (as defined). Management believes, as of December 31,
2005 and  2004,  that  Parke  Bancorp  and the Bank  meet all  capital  adequacy
requirements to which they are subject.

As of  December  31,  2005,  Parke  Bancorp  and the Bank  were  categorized  as
"well-capitalized"  under the regulatory framework for prompt corrective action.
At December 31, 2004, the Bank was categorized as  "well-capitalized"  under the
regulatory  framework for prompt corrective  action.  There are no conditions or
events  since  December  31,  2005 that  management  believes  have  changed any
subsidiary bank's capital category.

                                      F-21
<PAGE>

Parke Bancorp, Inc. and Subsidiaries

Notes to Consolidated Financial Statements
--------------------------------------------------------------------------------

Note 13.   Regulatory Matters (Continued)

Capital Ratios (Continued):  Parke Bancorp and the Bank's actual capital amounts
and ratios as of  December  31,  2005 and 2004 are  presented  in the  following
tables:

<TABLE>
<CAPTION>
                                                                              To Be Well Capitalized
                                                           For Capital             Prompt Under Corrective
                                        Actual           Adequacy Purposes       Action Provisions
                               -----------------------------------------------------------------------
Parke Bancorp, Inc.                Amount   Ratio          Amount   Ratio          Amount   Ratio
                               -----------------------------------------------------------------------
<S>                             <C>          <C>        <C>          <C>        <C>          <C>
As of December 31, 2005:
(amounts in thousands)
----------------------

Total Risk Based Capital         $ 40,737     16%        $ 20,856     8%         $ 26,070     10%
(to Risk Weighted Assets)

Tier I Capital                   $ 34,349     13%        $ 10,428     4%         $ 15,652     6%
(to Risk Weighted Assets)

Tier I Capital                   $ 34,349     12%        $ 11,370     4%         $ 14,212     5%
(to Average Assets)
</TABLE>

<TABLE>
<CAPTION>
                                                                              To Be Well Capitalized
                                                           For Capital             Prompt Under Corrective
                                        Actual           Adequacy Purposes       Action Provisions
                               -----------------------------------------------------------------------
Parke Bank                         Amount   Ratio          Amount   Ratio          Amount   Ratio
                               -----------------------------------------------------------------------
<S>                             <C>          <C>        <C>          <C>        <C>          <C>
As of December 31, 2005:
(amounts in thousands)
----------------------

Total Risk Based Capital         $ 39,416     15%        $ 20,825     8%         $ 26,031     10%
(to Risk Weighted Assets)

Tier I Capital                   $ 36,158     14%        $ 10,413     4%         $ 15,618     6%
(to Risk Weighted Assets)

Tier I Capital                   $ 36,158     13%        $ 11,370     4%         $ 14,213     5%
(to Average Assets)
</TABLE>


<TABLE>
<CAPTION>
                                                                              To Be Well Capitalized
                                                           For Capital             Prompt Under Corrective
                                        Actual           Adequacy Purposes       Action Provisions
                               -----------------------------------------------------------------------
Parke Bank                         Amount   Ratio          Amount   Ratio          Amount   Ratio
                               -----------------------------------------------------------------------
<S>                             <C>          <C>        <C>          <C>        <C>          <C>
As of December 31, 2004:
(amounts in thousands)
----------------------

Total Risk Based Capital         $ 25,254     13%        $ 15,042     8%         $ 18,802     10%
(to Risk Weighted Assets)

Tier I Capital                   $ 22,900     12%        $  7,521     4%         $ 11,281     6%
(to Risk Weighted Assets)

Tier I Capital                   $ 22,900     11%        $  8,301     4%         $ 10,376     5%
(to Average Assets)
</TABLE>

                                      F-22
<PAGE>

Parke Bancorp, Inc. and Subsidiaries

Notes to Consolidated Financial Statements
--------------------------------------------------------------------------------

Note 14.   Shareholders' Equity

Reorganization:  Parke Bancorp was  incorporated in 2005 for the sole purpose of
becoming the holding  company of the Bank.  Parke Bancorp  recognized the assets
and liabilities  transferred at the carrying amounts in the accounts of the Bank
as of June 1, 2005, the effective date of the  reorganization.  The accompanying
consolidated  financial  statements  are  presented as if the exchange of shares
occurred  as of January  1,  2003.  Pursuant  to the Plan of  Acquisition,  each
outstanding share of Parke Bank was converted  automatically by operation of law
into one share of Parke  Bancorp.  Parke  Bancorp had no  activity  prior to the
competition  of this  reorganization.  Parke  Bancorp  is  authorized  to  issue
10,000,000  shares of common  stock,  par  value  $0.10 per share and  1,000,000
shares of serial  preferred  stock,  par value  $0.10  per  share.  Options  and
warrants outstanding under the Bank's various Plans were converted automatically
by  operation  of law into  options and  warrants  to  purchase  shares of Parke
Bancorp on the same terms and conditions.

Common Stock  Dividend:  In December  2004,  the Company paid a 20% common stock
dividend (362,363 shares) to shareholders.  In December 2003, the Company paid a
10% common stock dividend (161,404 shares) to shareholders.

Stock Options and Warrants:  In 1999, 2002 and 2003, the  shareholders  approved
the Company's Employee Stock Option Plans and in 2005 the shareholders  approved
the Company's  Directors and Employee  Stock Option Plan (the "Plans") The Plans
are "non-qualified"  stock option plans. Reserved for issuance upon the exercise
of options granted or to be granted by the Board of Directors is an aggregate of
437,055  shares of common  stock.  All options  issued under the Plans are fully
vested upon  issuance.  All directors and certain  officers and employees of the
Company have been granted options under the Plans.  All stock option amounts and
prices  included  in the  following  discussions  have been  adjusted  for stock
dividends.

A summary of the status of options granted is as follows:

<TABLE>
<CAPTION>
                                                     2005                       2004                      2003
                                        --------------------------------------------------------------------------------
                                             Number       Exercise      Number      Exercise      Number      Exercise
                                           of Options      Price      of Options      Price     of Options      Price
                                        --------------------------------------------------------------------------------
<S>                                       <C>             <C>         <C>            <C>           <C>        <C>
Outstanding, beginning of year              133,367         $9.39       122,897        $8.88         74,796     $7.58
Granted                                     163,500        $20.50        12,420       $15.00         49,553    $10.61
Expired / terminated                           (360)       $10.61          (300)       $7.58              -         -
Exercised                                   (20,700)       $10.58        (1,650)       $7.58         (1,452)    $7.58
                                        ------------                 -----------                ------------
     Outstanding, end of year               275,807        $15.87       133,367        $9.39        122,897     $8.88
                                        ============                 ===========                ============
</TABLE>

Information  regarding options  outstanding and exercisable at December 31, 2005
is as follows:

                                 Number      Weighted-Average
                Exercise     Outstanding and    Remaining
                  Price        Exercisable   Contractual Life
             -------------------------------------------------

                   $7.58            65,292         4.6
                  $10.61            38,795         7.5
                  $15.00             8,220         8.1
                  $18.00            27,500         9.2
                  $21.00           136,000         9.9
                             --------------
                                   275,807
                             ==============

                                      F-23
<PAGE>

Parke Bancorp, Inc. and Subsidiaries

Notes to Consolidated Financial Statements
--------------------------------------------------------------------------------

Note 14.   Shareholders' Equity (Continued)

Stock Options and Warrants (Continued): At December 31, 2005, there were 138,073
shares available for grant under the Plans.

The Bank has adopted the  disclosure-only  provisions  of FASB No. 123. The Bank
accounts for its Plans in accordance  with Accounting  Principles  Board Opinion
No. 25 and related interpretations.  Accordingly,  no compensation cost has been
recognized for the Plan in 2005, 2004 or 2003. Compensation cost that would have
been  recognized  using the fair value  method  pursuant to FASB No. 123, if the
Bank had so elected,  would have been approximately  $1,117,000 in 2005, $68,000
in 2004 and $190,000 in 2003. The method of determining  pro-forma  compensation
cost for 2005,  2004 and 2003 was based on certain  assumptions,  including  the
past trading  ranges of the Bank's  stock,  volatility of 25%,  expected  option
lives of 5 - 7 years,  risk-free interest rate of 4%, and no expected payment of
dividends.

In connection with the Company's  initial stock offering in 1998,  approximately
732,000 (as adjusted for stock dividends in 2003 and 2004) warrants were issued.
These  warrants  have an  exercise  price of $7.58 per share and expire in 2008.
During 2005, 2004 and 2003, 122,156,  25,586 and 47,675 warrants were exercised,
respectively.


Note 15.   Other Related Party Transactions

A member of the Board of  Directors  is a principal  of a  commercial  insurance
agency that provides all the insurance coverage for the Company. The cost of the
insurance  was  approximately  $98,000 in 2005,  $102,000 in 2004 and $81,000 in
2003.  An insurance  agency  owned by another  Board  Member  provides  employee
benefits (medical insurance, life insurance, and disability insurance). The cost
of these  employee  benefits  totaled  $284,000  in 2005,  $197,000  in 2004 and
$151,000 in 2003.


Note 16.   Commitments and Contingencies

The Company has entered  into  employment  contract  with the  President  of the
Company, which provides for continued payment of certain employment salaries and
benefits in the event of a change in control, as defined.

The Company is a party to financial  instruments with off-balance  sheet risk in
the normal  course of business  to meet the  financing  needs of its  customers.
These  financial  instruments  include  commitments to extend credit and standby
letters of credit.  These instruments  involve, to varying degrees,  elements of
credit  risk in excess of the  amount  recognized  in the  consolidated  balance
sheet. The contract or notional amounts of these instruments  reflect the extent
of  the  Company's   involvement  in  these  particular   classes  of  financial
instruments.   The   Company's   exposure   to  credit  loss  in  the  event  of
nonperformance  by the other party to the financial  instruments for commitments
to extend credit and standby letters of credit is represented by the contractual
or  notional  amount of those  instruments.  The  Company  uses the same  credit
policies  in  making  commitments  and  conditional  obligations  as they do for
on-balance sheet instruments.

                                      F-24
<PAGE>

Parke Bancorp, Inc. and Subsidiaries

Notes to Consolidated Financial Statements
--------------------------------------------------------------------------------

Note 16.   Commitments and Contingencies (Continued)

Commitments  to extend  credit are  agreements  to lend to a customer as long as
there is no violation of any condition established in the contract.  Commitments
generally  have fixed  expiration  dates or other  termination  clauses  and may
require  payment of a fee. Since many of the  commitments are expected to expire
without  being  drawn  upon,  the total  commitment  amounts do not  necessarily
represent  future cash  requirements.  The  Company  evaluates  each  customer's
credit-worthiness on a case-by-case basis. The amount of collateral obtained, if
deemed  necessary  upon  extension of credit,  is based on  management's  credit
evaluation.   Collateral  held  varies  but  may  include  accounts  receivable,
inventory,   property,  plant  and  equipment  and  income-producing  commercial
properties.  As of December  31,  2005 and 2004,  commitments  to extend  credit
amounted to approximately $101,815,000 and $70,418,000, respectively.

Standby letters of credit are conditional  commitments  issued by the Company to
guarantee  the  performance  of a customer  to a third  party.  The credit  risk
involved in issuing  letters of credit is essentially  the same as that involved
in extending  loan  facilities to  customers.  As of December 31, 2005 and 2004,
standby  letters  of credit  with  customers  were  $4,536,000  and  $2,489,492,
respectively.

The Company does not issue or hold derivative  instruments with the exception of
loan commitments and standby letters of credit.  These instruments are issued in
the ordinary  course of business to meet  customer  needs.  Commitments  to fund
fixed-rate loans were immaterial at December 31, 2005. Variable-rate commitments
are generally  issued for less than one year and carry market rates of interest.
Such  instruments are not likely to be affected by annual rate caps triggered by
rising interest rates.  Management  believes that off-balance  sheet risk is not
material to the results of operations or financial condition.

In the normal  course of  business,  there are  outstanding  various  contingent
liabilities  such as claims and legal  action,  which are not  reflected  in the
financial  statements.  In the opinion of  management,  no  material  losses are
anticipated as a result of these actions or claims.


Note 17.   Fair Value of Financial Instruments

The  Company  discloses  estimated  fair  values for its  significant  financial
instruments. Because no market exists for a significant portion of the Company's
financial  instruments,  fair value  estimates are based on judgments  regarding
future   expected   loss   experience,   current   economic   conditions,   risk
characteristics  of  various  financial  instruments  and other  factors.  These
estimates  are  subjective  in nature and involve  uncertainties  and matters of
significant judgment and therefore cannot be determined with precision.  Changes
in assumptions could significantly affect the estimates.

The  following  fair  value  estimates,  methods  and  assumptions  were used to
estimate the fair value of each class of significant financial instruments,  for
which it is practical to estimate that value:

Cash and Cash  Equivalents:  The carrying  amount of cash and federal funds sold
approximates fair value.

Investment  Securities:  The fair value of  investment  securities is based upon
quoted market prices or dealer quotes.

Restricted Stock: The carrying value of restricted stock approximates fair value
based on redemption provisions.

Loans:  Fair values are estimated for portfolios of loans with similar financial
characteristics.  Loans are segregated by type such as  commercial,  residential
mortgage and other consumer. Each loan category is further segmented into groups
by fixed and adjustable rate interest terms and by performing and non-performing
categories.

                                      F-25
<PAGE>

Parke Bancorp, Inc. and Subsidiaries

Notes to Consolidated Financial Statements
--------------------------------------------------------------------------------

Note 17.   Fair Value of Financial Instruments (Continued)

Loans (Continued): The fair value of performing loans is typically calculated by
discounting  scheduled  cash  flows  through  their  estimated  maturity,  using
estimated  market  discount rates that reflect the credit and interest rate risk
inherent  in each  group  of  loans.  The  estimate  of  maturity  is  based  on
contractual  maturities  for  loans  within  each  group,  or on  the  Company's
historical experience with repayments for each loan classification,  modified as
required by an estimate of the effect of current economic conditions.

Fair value for nonperforming  loans is based on the discounted value of expected
future cash flows, discounted using a rate commensurate with the risk associated
with the  likelihood  of  repayment  and/or  the fair  value of  collateral  (if
repayment of the loan is collateral dependent).

For all loans,  assumptions  regarding the  characteristics  and  segregation of
loans, maturities,  credit risk, cash flows, and discount rates are judgmentally
determined using specific borrower and other available information.

Accrued Interest  Receivable and Payable:  The fair value of interest receivable
and payable is estimated to approximate the carrying amounts.

Deposits:  The fair value of deposits  with no stated  maturity,  such as demand
deposits,  checking accounts, savings and money market accounts, is equal to the
carrying  amount.  The fair  value of  certificates  of  deposit is based on the
discounted value of contractual cash flows, where the discount rate is estimated
using the rates currently offered for deposits of similar remaining maturities.

Borrowings:  The fair value of  borrowings is based on the  discounted  value of
estimated cash flows. The discounted rate is estimated using the rates currently
offered for similar advances.

Off-Balance Sheet Instruments:  Since the majority of the Company's  off-balance
sheet instruments consist of non fee-producing,  variable rate commitments,  the
Company has determined they do not have a distinguishable fair value.

The following table  summarizes  carrying  amounts and fair values for financial
instruments at December 31, 2005:

                                               Carrying Value    Fair Value
                                             --------------------------------
     Financial Assets:
       Cash and cash equivalents                $  4,380,036    $  4,380,036
       Investment securities                      24,428,785      24,345,929
       Restricted stock                            1,348,900       1,348,900
       Loans, net                                255,461,276     252,907,849
       Accrued interest receivable                 1,545,443       1,545,443

     Financial Liabilities:
       Demand deposits and savings deposits     $ 79,113,260    $ 79,113,260
       Time deposits                             152,943,048     154,935,630
       Borrowings                                 35,966,860      35,966,860
       Accrued interest payable                    1,073,713       1,073,713

                                      F-26
<PAGE>

Parke Bancorp, Inc. and Subsidiaries

Notes to Consolidated Financial Statements
--------------------------------------------------------------------------------

Note 17.   Fair Value of Financial Instruments (Continued)

The following table  summarizes  carrying  amounts and fair values for financial
instruments at December 31, 2004:

                                             Carrying Value    Fair Value
                                             ------------------------------
     Financial Assets:
       Cash and cash equivalents              $  1,801,788    $  1,801,788
       Investment securities                    24,590,434      24,583,542
       Restricted stock                          1,064,200       1,064,200
       Loans, net                              185,986,339     186,968,704
       Accrued interest receivable                 972,235         972,235

     Financial Liabilities:
       Demand deposits and savings deposits   $ 70,607,600    $ 70,607,600
       Time deposits                           108,977,411     108,745,773
       Borrowings                               20,378,726      20,378,726
       Accrued interest payable                    382,583         382,583


Note 18.   Quarterly Financial Data (unaudited)

The following  represents  summarized  unaudited quarterly financial data of the
Company which, in the opinion of management,  reflects  adjustments  (comprising
only normal recurring accruals) necessary for fair presentation.


Note 18.  Quarterly Financial Data (unaudited)

The following  represents  summarized  unaudited quarterly financial data of the
Company which, in the opinion of management,  reflects  adjustments  (comprising
only normal recurring accruals) necessary for fair presentation.

<TABLE>
<CAPTION>
                                                         Three Months Ended
                                   ----------------------------------------------------------------
                                    December 31,    September 30,     June 30,        March 31,
                                   ----------------------------------------------------------------
<S>                                   <C>             <C>             <C>             <C>
 2005
 ----

 Interest income                       $ 5,098,380     $ 4,434,368     $ 4,106,809     $ 3,696,487
 Interest expense                        2,092,613       1,810,909       1,515,232       1,265,201
 Net interest income                     3,005,767       2,623,459       2,591,577       2,431,286
 Provision for loan losses                 374,000         298,005         276,023         232,134
 Income before income tax expense        1,624,981       1,481,502       1,499,565       1,218,017
 Income tax expense                        655,994         592,100         595,550         486,000
 Net income                                968,987         889,402         904,015         732,017

 Net income per common share:
   Basic                               $      0.42     $      0.39     $      0.40     $      0.33
   Diluted                             $      0.36     $      0.34     $      0.35     $      0.28

 2004
 ----

 Interest income                       $ 3,188,760     $ 2,980,350     $ 2,839,127     $ 2,757,551
 Interest expense                        1,030,003         954,159         861,999         899,972
 Net interest income                     2,158,757       2,026,191       1,977,128       1,857,579
 Provision for loan losses                 425,913         101,951         184,585         112,875
 Income before income tax expense        1,109,120       1,258,605       1,074,408       1,023,725
 Income tax expense                        434,600         490,000         419,100         400,400
 Net income                                674,520         768,605         655,308         623,325

 Net income per common share:
   Basic                               $      0.30     $      0.36     $      0.31     $      0.29
   Diluted                             $      0.23     $      0.31     $      0.26     $      0.25
</TABLE>

                                      F-27

<PAGE>

<TABLE>
<CAPTION>
                              CORPORATE INFORMATION

                               PARKE BANCORP, INC.
                                601 Delsea Drive
                      Washington Township, New Jersey 08080
                                 (856) 256-2500

<S>                                     <C>                             <C>
                                                Board of Directors
    Celestino R. ("Chuck") Pennoni                  Fred Choate                        Daniel J. Dalton
  Chairman of the Board of Directors                 Director                              Director

                                        -----------------------------------

                                                     Officers

          Vito S. Pantilione                  Ernest D. Huggard, CPA                 David O. Middlebrook
            President and                    Senior Vice President and            Senior Vice President and
       Chief Executive Officer                Chief Financial Officer                Corporate Secretary

                                        -----------------------------------

            Local Counsel                                                            Independent Auditors
             Duane Morris                                                          McGladrey & Pullen, LLP
          One Liberty Place                                                         512 Township Line Road
        Philadelphia, PA 19103                                                   One Valley Square, Suite 250
                                                                                     Blue Bell, PA 19422

           Special Counsel                                                       Transfer Agent and Registrar
      Malizia Spidi & Fisch, PC                                                 Registrar and Transfer Company
      901 New York Avenue, N.W.                                                       10 Commerce Drive
            Suite 210 East                                                            Cranford, NJ 07016
        Washington, D.C. 20001

</TABLE>

<PAGE>

<TABLE>
<CAPTION>
                                                   PARKE BANK

<S>                                                       <C>
                                               Board of Directors

             Celestino R. ("Chuck") Pennoni                                  Vito S. Pantilione
           Chairman of the Board of Directors                 President, Chief Executive Officer and Director

                    Thomas Hedenberg                                          Arret F. Dobson
         Vice Chairman of the Board of Directors                                  Director

                    Daniel J. Dalton                                         Edward Infantolino
                        Director                                                  Director

                   Anthony J. Jannetti                                       Jeffrey H. Kripitz
                        Director                                                  Director

                    Richard Phalines                                       Jack C. Sheppard, Jr.
                        Director                                                  Director

                      Ray H. Tresch                                            Fred G. Choate
                        Director                                                  Director

                                   Victor Fabietti, CPA/Special Consultant to
                                             the Board of Directors

                                                    Officers

                   Vito S. Pantilione                                      Ernest D. Huggard, CPA
          President and Chief Executive Officer              Senior Vice President and Chief Financial Officer

                  David O. Middlebrook                                     Elizabeth A. Milavsky
              Senior Vice President, Senior                              Senior Vice President and
            Loan Officer, Corporate Secretary                              Systems/Retail Officer

                    Paul E. Palmieri                                           James Talerico
              Senior Vice President of the                                     Vice President
                   Philadelphia Region
                                                                                Milton Witte
                     John J. Murphy                                            Vice President
                        Treasurer
                                                                            Dolores M. Calvello
                    Allen M. Bachman                                      Assistant Vice President
                Assistant Vice President
                                                                            Kathleen A. Conover
                      Mary Ann Seal                                       Assistant Vice President
                Assistant Vice President
                                                                                Mark Prater
                                                                          Assistant Vice President

</TABLE>

<PAGE>

<TABLE>
<CAPTION>
                                                  BRANCH OFFICES

<S>                                   <C>                                 <C>
           Northfield Office                         Main Office                      Kennedy Office
            501 Tilton Road                      601 Delsea Drive                   567 Egg Harbor Road
         Northfield, NJ 08225              Washington Township, NJ 08080        Washington Township, NJ 08080
            (609) 646-6677                        (856) 256-2500                        (856) 582-6900

                                        -----------------------------------


                                              Loan Production Office
                                                1610 Spruce Street
                                              Philadelphia, PA 19103
                                                  (215) 772-1113

                                        -----------------------------------

              PARKE BANK                       PARKE CAPITAL MARKETS                PARKE CAPITAL TRUST I
           601 Delsea Drive                      601 Delsea Drive                   PARKE CAPITAL TRUST II
    Washington Township, NJ 08080          Washington Township, NJ 08080               601 Delsea Drive
            (856) 256-2500                        (856) 256-2500                Washington Township, NJ 08080
                                                                                        (856) 256-2500

</TABLE>