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| TABLE OF CONTENTS                                                                                                                                                                                                                                          |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                                                                                                                                       |   |
|                                                                                                                                                                                                                                                       | Page |
| Section One                                                                                                                                                                                                                                                |   |
|                                                                                                                                                                                                                                                       |   |
| 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.......................................................................................................................................................................................................................         | 18 |
|                                                                                                                                                                                                                                                       |   |
| Management’s Report on Internal Control Over Financial Reporting............................................................................................................................................                                         | 20 |
|                                                                                                                                                                                                                                                       |   |
| Section Two                                                                                                                                                                                                                                                |   |
|                                                                                                                                                                                                                                                       |   |
| Report of Independent Registered Public Accounting Firm...............................................................................................................................................................                                     | 1 |
|                                                                                                                                                                                                                                                       |   |
| Consolidated Financial Statements..............................................................................................................................................................................................................            | 2 |
|                                                                                                                                                                                                                                                       |   |
| Notes to Consolidated Financial Statements............................................................................................................................................................................................                     | 6 |
|                                                                                                                                                                                                                                                       |   |
| Corporate Information..................................................................................................................................................................................................................................... | 52 |
|                                                                                                                                                                                                                                                       |   |   |
|                                                                                                                                                                                                                                                       |   |   |

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| Selected Financial Data                                                                                 |
|---------------------------------------------------------------------------------------------------------|
|                                                                                                    |
|                                                                                                    | At or for the Year Ended December, 31 |
|                                                                                                    | 2010 |   | 2009 |   | 2008 |   | 2007 |   | 2006 |
| Balance Sheet Data: (in thousands)                                                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Assets                                                                                                  | $ | 756,853 |   | $ | 654,198 |   | $ | 601,952 |   | $ | 460,795 |   | $ | 359,997 |
| Loans Net                                                                                               | $ | 611,950 |   | $ | 590,997 |   | $ | 539,883 |   | $ | 402,683 |   | $ | 306,044 |
| Securities Available for Sale                                                                           | $ | 27,730 |   | $ | 29,420 |   | $ | 31,930 |   | $ | 29,782 |   | $ | 24,530 |
| Securities Held to Maturity                                                                             | $ | 1,999 |   | $ | 2,509 |   | $ | 2,482 |   | $ | 2,456 |   | $ | 2,431 |
| Cash and Cash Equivalents                                                                               | $ | 57,628 |   | $ | 4,154 |   | $ | 7,270 |   | $ | 9,178 |   | $ | 11,261 |
| Deposits                                                                                                | $ | 604,722 |   | $ | 520,313 |   | $ | 495,327 |   | $ | 379,480 |   | $ | 289,929 |
| Borrowings                                                                                              | $ | 75,616 |   | $ | 67,831 |   | $ | 61,943 |   | $ | 40,322 |   | $ | 34,851 |
| Equity                                                                                                  | $ | 70,732 |   | $ | 61,973 |   | $ | 40,301 |   | $ | 36,417 |   | $ | 30,709 |
|                                                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Operational Data: (in thousands)                                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest Income                                                                                         | $ | 41,636 |   | $ | 40,395 |   | $ | 36,909 |   | $ | 33,186 |   | $ | 25,476 |
| Interest Expense                                                                                        |   | 11,350 |   |   | 15,734 |   |   | 19,291 |   |   | 17,595 |   |   | 12,023 |
| Net Interest Income                                                                                     |   | 30,286 |   |   | 24,661 |   |   | 17,618 |   |   | 15,591 |   |   | 13,453 |
| Provision for Loan Losses                                                                               |   | 9,001 |   |   | 5,300 |   |   | 2,063 |   |   | 1,161 |   |   | 940 |
| Net Interest Income after Provision for      Loan Losses                       |   | 21,285 |   |   | 19,361 |   |   | 15,555 |   |   | 14,430 |   |   | 12,513 |
| Noninterest Income (Loss)                                                                               |   | 2,757 |   |   | (540 | )  |   | (1,251 | )  |   | 1,491 |   |   | 857 |
| Noninterest Expense                                                                                     |   | 11,650 |   |   | 8,757 |   |   | 7,209 |   |   | 6,325 |   |   | 5,827 |
| Income Before Income Tax Expense                                                                        |   | 12,392 |   |   | 10,064 |   |   | 7,095 |   |   | 9,596 |   |   | 7,543 |
| Income Tax Expense                                                                                      |   | 4,895 |   |   | 3,964 |   |   | 2,848 |   |   | 3,744 |   |   | 2,919 |
| Net income attributable to Company      and noncontrolling (minority) interest |   | 7,497 |   |   | 6,100 |   |   | 4,247 |   |   | 5,852 |   |   | 4,624 |
| Net income attributable to      noncontrolling (minority) interest             |   | (157) |   |   | — |   |   | — |   |   | — |   |   | — |
| Preferred Stock Dividend and      Discount Accretion                           |   | 988 |   |   | 899 |   |   | — |   |   | — |   |   | — |
| Net Income Available to      Common Shareholders                               | $ | 6,352 |   | $ | 5,201 |   | $ | 4,247 |   | $ | 5,852 |   | $ | 4,624 |
|                                                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Per Share Data:                                                                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Basic Earnings per Common Share                                                                         | $ | 1.43 |   | $ | 1.17 |   | $ | 1.03 |   | $ | 1.46 |   | $ | 1.18 |
| Diluted Earnings per Common Share                                                                       | $ | 1.41 |   | $ | 1.17 |   | $ | 0.95 |   | $ | 1.29 |   | $ | 1.00 |
| Book Value per Common Share                                                                             | $ | 12.25 |   | $ | 10.30 |   | $ | 9.14 |   | $ | 9.00 |   | $ | 7.65 |
| Cash Dividends Declared per Share                                                                       | $ | — |   | $ | — |   | $ | — |   | $ | — |   | $ | 0.18 |
|                                                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Performance Ratios:                                                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Return on Average Assets                                                                                |   | 1.05% |   |   | 0.94% |   |   | 0.79% |   |   | 1.41% |   |   | 1.41% |
| Return on Average Common Equity                                                                         |   | 12.19% |   |   | 11.82% |   |   | 11.03% |   |   | 17.17% |   |   | 15.68% |
| Net Interest Margin                                                                                     |   | 4.60% |   |   | 3.97% |   |   | 3.36% |   |   | 3.88% |   |   | 4.25% |
| Efficiency Ratio                                                                                        |   | 33.26% |   |   | 33.88% |   |   | 36.80% |   |   | 38.70% |   |   | 40.70% |
|                                                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Capital Ratios:                                                                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Equity to Assets                                                                                        |   | 9.35% |   |   | 9.47% |   |   | 6.70% |   |   | 7.91% |   |   | 8.54% |
| Dividend Payout Ratio                                                                                   |   | 0.00% |   |   | 0.00% |   |   | 0.00% |   |   | 0.00% |   |   | 12.20% |
| Tier 1 Risk-based Capital1                                                                              |   | 12.93% |   |   | 13.02% |   |   | 9.89% |   |   | 11.10% |   |   | 13.30% |
| Total Risk-based Capital1                                                                               |   | 14.19% |   |   | 14.27% |   |   | 11.14% |   |   | 12.40% |   |   | 14.50% |
|                                                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Asset Quality Ratios:                                                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Non-Performing Loans/Total Loans                                                                        |   | 4.38% |   |   | 4.22% |   |   | 1.50% |   |   | 0.20% |   |   | 0.34% |
| Allowance for Loan Losses/Total Loans                                                                   |   | 2.36% |   |   | 2.06% |   |   | 1.42% |   |   | 1.40% |   |   | 1.45% |
| Allowance for Loan Losses/     Non-Performing Loans                            |   | 53.89% |   |   | 48.74% |   |   | 94.61% |   |   | 709.10% |   |   | 571.90% |
|                                                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| 1 Capital Ratios for Parke Bank                                                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

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|                                    |   | For the Years Ended December 31,         |    |
|-----------------------------------------|--------|-----------------------------------------------|---------|
|                                    |   | 2010                                          |    |   | 2009 |   |
|                                    |   | Average Balance                               |    |   | Interest Income/Expense |   |   | Yield/Cost |   |   | Average Balance |   |   | Interest Income/ Expense |   |   | Yield/ Cost |   |
|                                    |   | (amounts in thousands except Yield Cost data) |    |
| Assets                                  |   |                                          |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Loans                                   |   | $                                             | 622,716 |   |   | $ | 39,934 |   |   |   | 6.41 | % |   | $ | 587,047 |   |   | $ | 38,482 |   |   |   | 6.56 | % |
| Investment securities                   |   |                                          | 35,565  |   |   |   | 1,702 |   |   |   | 4.79 | % |   |   | 34,384 |   |   |   | 1,912 |   |   |   | 5.56 | % |
| Federal funds sold and cash equivalents |   |                                          | 87      |   |   |   | — |   |   |   | 0.00 | % |   |   | 188 |   |   |   | 1 |   |   |   | 0.53 | % |
| Total interest-earning assets           |   |                                          | 658,368 |   |   | $ | 41,636 |   |   |   | 6.32 | % |   |   | 621,619 |   |   | $ | 40,395 |   |   |   | 6.50 | % |
| Non-interest earning assets             |   |                                          | 57,747  |   |   |   |   |   |   |   |   |   |   |   | 33,657 |   |   |   |   |   |   |   |   |   |
| Allowance for loan losses               |   |                                          | (14,250 | )       |   |   |   |   |   |   |   |   |   |   | (9,616 | ) |   |   |   |   |   |   |   |   |
| Total assets                            |   | $                                             | 701,865 |   |   |   |   |   |   |   |   |   |   | $ | 645,660 |   |   |   |   |   |   |   |   |   |
|                                    |   |                                          |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Liabilities and Equity                  |   |                                          |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest bearing deposits               |   |                                          |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| NOWs                                    |   | $                                             | 12,936  |   |   |   | 154 |   |   |   | 1.19 | % |   | $ | 10,945 |   |   |   | 154 |   |   |   | 1.41 | % |
| Money markets                           |   |                                          | 89,866  |   |   |   | 1,045 |   |   |   | 1.16 | % |   |   | 70,533 |   |   |   | 1,033 |   |   |   | 1.46 | % |
| Savings                                 |   |                                          | 150,008 |   |   |   | 2,190 |   |   |   | 1.46 | % |   |   | 104,586 |   |   |   | 2,205 |   |   |   | 2.11 | % |
| Time deposits                           |   |                                          | 203,238 |   |   |   | 4,027 |   |   |   | 1.98 | % |   |   | 181,866 |   |   |   | 5,711 |   |   |   | 3.14 | % |
| Brokered certificates of deposit        |   |                                          | 86,235  |   |   |   | 2,184 |   |   |   | 2.53 | % |   |   | 136,168 |   |   |   | 4,582 |   |   |   | 3.36 | % |
| Total interest-bearing deposits         |   |                                          | 542,283 |   |   |   | 9,600 |   |   |   | 1.77 | % |   |   | 504,098 |   |   |   | 13,685 |   |   |   | 2.71 | % |
| Borrowings                              |   |                                          | 66,044  |   |   |   | 1,750 |   |   |   | 2.65 | % |   |   | 58,351 |   |   |   | 2,049 |   |   |   | 3.51 | % |
| Total interest-bearing liabilities      |   |                                          | 608,327 |   |   | $ | 11,350 |   |   |   | 1.87 | % |   |   | 562,449 |   |   | $ | 15,734 |   |   |   | 2.80 | % |
| Non-interest bearing deposits           |   |                                          | 20,040  |   |   |   |   |   |   |   |   |   |   |   | 20,068 |   |   |   |   |   |   |   |   |   |
| Other liabilities                       |   |                                          | 5,822   |   |   |   |   |   |   |   |   |   |   |   | 4,149 |   |   |   |   |   |   |   |   |   |
| Total liabilities                       |   |                                          | 634,189 |   |   |   |   |   |   |   |   |   |   |   | 586,666 |   |   |   |   |   |   |   |   |   |
| Equity                                  |   |                                          | 67,676  |   |   |   |   |   |   |   |   |   |   |   | 58,994 |   |   |   |   |   |   |   |   |   |
| Total liabilities and equity            |   | $                                             | 701,865 |   |   |   |   |   |   |   |   |   |   | $ | 645,660 |   |   |   |   |   |   |   |   |   |
| Net interest income                     |   |                                          |    |   |   | $ | 30,286 |   |   |   |   |   |   |   |   |   |   | $ | 24,661 |   |   |   |   |   |
| Interest rate spread                    |   |                                          |    |   |   |   |   |   |   |   | 4.45 | % |   |   |   |   |   |   |   |   |   |   | 3.70 | % |
| Net interest margin                     |   |                                          |    |   |   |   |   |   |   |   | 4.60 | % |   |   |   |   |   |   |   |   |   |   | 3.97 | % |

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|                               | Years ended December 31,  |   |
|------------------------------------|---------------------------|--------|
|                               | 2010 vs. 2009             |   | 2009 vs. 2008 |   |
|                               | Variance due to change in |   | Variance due to change in |   |
|                               | Average Volume            |   | Average Rate |   | Net Increase/ (Decrease) |   | Average Volume |   | Average Rate |   | Net Increase/ (Decrease) |   |
| Interest Income:                   |                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Loans (net of deferred costs/fees) | $                         | 2,336  |   | $ | (884 | )  | $ | 1,452 |   | $ | 7,585 |   | $ | (3,568 | )  | $ | 4,017 |   |
| Investment securities              |                      | 67     |   |   | (277 | )  |   | (210 | )  |   | (284 | )  |   | (54 | )  |   | (338 | )  |
| Federal funds sold                 |                      | (1     | )  |   | — |   |   | (1 | )  |   | (114 | )  |   | (79 | )  |   | (193 | )  |
| Total interest income              |                      | 2,402  |   |   | (1,161 | )  |   | 1,241 |   |   | 7,187 |   |   | (3,701 | )  |   | 3,486 |   |
|                               |                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest Expense:                  |                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Deposits                           |                      | 844    |   |   | (4,929 | )  |   | (4,085 | )  |   | 2,903 |   |   | (6,177 | )  |   | (3,274 | )  |
| Borrowed funds                     |                      | 236    |   |   | (535 | )  |   | (299 | )  |   | 136 |   |   | (419 | )  |   | (283 | )  |
| Total interest expense             |                      | 1,080  |   |   | (5,464 | )  |   | (4,384 | )  |   | 3,039 |   |   | (6,596 | )  |   | (3,557 | )  |
|                               |                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net interest income                | $                         | 1,322  |   | $ | 4,303 |   | $ | 5,625 |   | $ | 4,148 |   | $ | 2,895 |   | $ | 7,043 |   |
|                               |                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

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|                                                         | As of December 31, 2010 |
|--------------------------------------------------------------|-------------------------|
|                                                         | 3 Months or Less        |   | Over 3 Months Through 12 Months |   | Over 1 Year Through 2 Years |   | Over 3 Years Through 5 Years |   | Over 5 Years Through 10 Years |   | Total |
| Interest-earning assets:                                     |                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Loans                                                        | $                       | 214,057 |   | $ | 40,451 |   | $ | 96,049 |   | $ | 247,846 |   | $ | 28,336 |   | $ | 626,739 |
| Investment securities                                        |                    | 6,535 |   |   | 2,094 |   |   | 3,876 |   |   | 7,977 |   |   | 10,068 |   |   | 30,550 |
| Federal funds sold and cash equivalents                      |                    | 56,161 |   |   | — |   |   | — |   |   | — |   |   | — |   |   | 56,161 |
| Total interest-earning assets                                | $                       | 276,753 |   | $ | 42,545 |   | $ | 99,925 |   | $ | 255,823 |   | $ | 38,404 |   | $ | 713,450 |
|                                                         |                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest-bearing liabilities::                               |                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Regular savings deposits                                     | $                       | 87,540 |   | $ | 12,506 |   | $ | 16,674 |   | $ | 33,348 |   | $ | 16,674 |   | $ | 166,742 |
| NOW and money market deposits                                |                    | 18,824 |   |   | 23,153 |   |   | 30,871 |   |   | 33,355 |   |   | 2,484 |   |   | 108,687 |
| Retail time deposits                                         |                    | 109,509 |   |   | 92,976 |   |   | 28,938 |   |   | 4,533 |   |   | — |   |   | 235,956 |
| Brokered time deposits                                       |                    | 26,316 |   |   | 42,854 |   |   | 849 |   |   | 150 |   |   | --- |   |   | 70,169 |
| Borrowed funds                                               |                    | 15,991 |   |   | 35,516 |   |   | 160 |   |   | 10,546 |   |   | 13,403 |   |   | 75,616 |
| Total interest-bearing liabilities                           | $                       | 258,180 |   | $ | 207,005 |   | $ | 77,492 |   | $ | 81,932 |   | $ | 32,561 |   | $ | 657,170 |
|                                                         |                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest rate sensitive gap                                  | $                       | 18,573 |   | $ | (164,460 | )  | $ | 22,433 |   | $ | 173,891 |   | $ | 5,843 |   | $ | 56,280 |
|                                                         |                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Cumulative interest rate gap                                 | $                       | 18,573 |   | $ | (145,887 | )  | $ | (123,454 | )  | $ | 50,437 |   | $ | 56,280 |   |   |   |
|                                                         |                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Ratio of rate-sensitive assets to rate-sensitive liabilities |                    | 107.19% |   |   | 20.55% |   |   | 128.95% |   |   | 312.24% |   |   | 117.94% |   |   | 108.56% |

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|                          |   | Payments Due by Period                   |
|-------------------------------|--------|------------------------------------------|
|                          |   | Amounts in thousands                     |
|                          |   | Less than 1 year                         |   | 1-3 Years |   | 4-5 years |   | More than 5 years |   | Total |
|                          |   |                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Retail time deposits          |   | $                                        | 202,485 |   | $ | 30,350 |   | $ | 3,121 |   | $ | — |   | $ | 235,956 |
| Brokered time deposits        |   |                                     | 69,170 |   |   | 999 |   |   | — |   |   | — |   |   | 70,169 |
| Borrowed funds                |   |                                     | 51,507 |   |   | 9,847 |   |   | 859 |   |   | 13,403 |   |   | 75,616 |
| Operating lease obligations   |   |                                     | 129 |   |   | 375 |   |   | 82 |   |   | 121 |   |   | 707 |
| Total contractual obligations |   | $                                        | 323,291 |   | $ | 41,571 |   | $ | 4,062 |   | $ | 13,524 |   | $ | 382,448 |
|                          |   |                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                          |   |                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                          |   | Amount of Commitments Expiring by Period |
|                          |   | Amounts in thousands                     |
|                          |   | Less than 1 year                         |   | 1-3 Years |   | 4-5 years |   | More than 5 years |   | Total |
|                          |   |                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Loan Commitments              |   | $                                        | 20,259 |   | $ | — |   | $ | — |   | $ | — |   | $ | 20,259 |
| Lines of Credit               |   |                                     | 29,956 |   |   | 6,220 |   |   | 1,693 |   | $ | 15,602 |   |   | 53,471 |
| Total Commitments             |   | $                                        | 50,215 |   | $ | 6,220 |   | $ | 1,693 |   | $ | 15,602 |   | $ | 73,730 |
|                          |   |                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |

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|   | 2010        |   | High   |   | Low    |
|--------|-------------|--------|--------|--------|--------|
|   |        |   |   |   |   |   |   |
|   | 1st Quarter |   | $      | 8.64   |   | $ | 7.05 |
|   | 2nd Quarter |   | $      | 11.93  |   | $ | 8.11 |
|   | 3rd Quarter |   | $      | 9.50   |   | $ | 8.30 |
|   | 4th Quarter |   | $      | 10.40  |   | $ | 8.59 |
|   |        |   |   |   |   |   |   |
|   | 2009        |   | High   |   | Low    |
|   |        |   |   |   |   |   |   |
|   | 1st Quarter |   | $      | 7.73   |   | $ | 3.87 |
|   | 2nd Quarter |   | $      | 8.95   |   | $ | 5.55 |
|   | 3rd Quarter |   | $      | 9.07   |   | $ | 7.50 |
|   | 4th Quarter |   | $      | 8.46   |   | $ | 6.82 |

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|   /s/ Vito S. Pantilione                |   |   /s/ John F. Hawkins                               |
|----------------------------------------------|--------|----------------------------------------------------------|
|   Vito S. Pantilione               |   |   John F. Hawkins                                   |
|   President and Chief Executive Officer |   |   Senior Vice President and Chief Financial Officer |

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| Contents                                                                                                                                                                                                                             |   |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
|                                                                                                                                                                                                                                 | Page   |
|                                                                                                                                                                                                                                 |   |
| Report of Independent Registered Public Accounting Firm ............................................................................................................................................................                 | 1      |
|                                                                                                                                                                                                                                 |   |
| Financial Statements                                                                                                                                                                                                                 |   |
| Consolidated Balance Sheets ........................................................................................................................................................................................................ | 2      |
| Consolidated Statements of Income .............................................................................................................................................................................................      | 3      |
| Consolidated Statements of Equity ..............................................................................................................................................................................................     | 4      |
| Consolidated Statements of Cash Flows .....................................................................................................................................................................................          | 5      |
| Notes to Consolidated Financial Statements ..............................................................................................................................................................................            | 6      |
|                                                                                                                                                                                                                                 |   |

----

----

| Parke Bancorp, Inc. and Subsidiaries                                                                                                                                              |         |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------|
|                                                                                                                                                                              |         |
| Consolidated Balance Sheets                                                                                                                                                       |         |
| December 31, 2010 and 2009                                                                                                                                                        |         |
| (in thousands except share data)                                                                                                                                                  | December 31, |   | December 31, |   |
|                                                                                                                                                                              | 2010         |   | 2009 |   |
| Assets                                                                                                                                                                            |         |   |   |   |   |   |
| Cash and due from financial institutions                                                                                                                                          | $            | 57,628 |   | $ | 4,099 |   |
| Federal funds sold and cash equivalents                                                                                                                                           |         | — |   |   | 55 |   |
| Cash and cash equivalents                                                                                                                                                         |         | 57,628 |   |   | 4,154 |   |
| Investment securities available for sale, at fair value                                                                                                                           |         | 27,730 |   |   | 29,420 |   |
| Investment securities held to maturity (fair value of $2,048  at December 31, 2010    and $2,404 at December 31, 2009)                              |         | 1,999 |   |   | 2,509 |   |
| Total investment securities                                                                                                                                                       |         | 29,729 |   |   | 31,929 |   |
| Loans held for sale                                                                                                                                                               |         | 11,454 |   |   | — |   |
| Loans, net of unearned income                                                                                                                                                     |         | 626,739 |   |   | 603,401 |   |
| Less: Allowance for loan and lease losses                                                                                                                                         |         | 14,789 |   |   | 12,404 |   |
| Net loans and leases                                                                                                                                                              |         | 611,950 |   |   | 590,997 |   |
| Accrued interest receivable                                                                                                                                                       |         | 3,273 |   |   | 2,808 |   |
| Premises and equipment, net                                                                                                                                                       |         | 4,279 |   |   | 2,861 |   |
| Other real estate owned (OREO)                                                                                                                                                    |         | 16,701 |   |   | — |   |
| Restricted stock, at cost                                                                                                                                                         |         | 3,040 |   |   | 3,094 |   |
| Bank owned life insurance (BOLI)                                                                                                                                                  |         | 5,362 |   |   | 5,184 |   |
| Other assets                                                                                                                                                                      |         | 13,437 |   |   | 13,171 |   |
| Total Assets                                                                                                                                                                      | $            | 756,853 |   | $ | 654,198 |   |
|                                                                                                                                                                              |         |   |   |   |   |   |
| Liabilities and Equity                                                                                                                                                            |         |   |   |   |   |   |
| Liabilities                                                                                                                                                                       |         |   |   |   |   |   |
| Deposits                                                                                                                                                                          |         |   |   |   |   |   |
| Noninterest-bearing deposits                                                                                                                                                      | $            | 23,168 |   | $ | 21,488 |   |
| Interest-bearing deposits                                                                                                                                                         |         | 581,554 |   |   | 498,825 |   |
| Total deposits                                                                                                                                                                    |         | 604,722 |   |   | 520,313 |   |
| FHLB borrowings                                                                                                                                                                   |         | 40,759 |   |   | 44,428 |   |
| Other borrowed funds                                                                                                                                                              |         | 21,454 |   |   | 10,000 |   |
| Subordinated debentures                                                                                                                                                           |         | 13,403 |   |   | 13,403 |   |
| Accrued interest payable                                                                                                                                                          |         | 828 |   |   | 821 |   |
| Other liabilities                                                                                                                                                                 |         | 4,955 |   |   | 3,260 |   |
| Total liabilities                                                                                                                                                                 |         | 686,121 |   |   | 592,225 |   |
| Equity                                                                                                                                                                            |         |   |   |   |   |   |
| Preferred stock, cumulative perpetual, $1,000 liquidation value; authorized 1,000,000 shares;     Issued: 16,288 shares at December 31, 2010 and December 31, 2009 |         | 15,683 |   |   | 15,508 |   |
| Common stock, $.10 par value; authorized 10,000,000 shares; Issued: 4,653,133 shares at     December 31, 2010; and 4,224,867 shares at December 31, 2009      |         | 465 |   |   | 421 |   |
| Additional paid-in capital                                                                                                                                                        |         | 41,931 |   |   | 37,020 |   |
| Retained earnings                                                                                                                                                                 |         | 15,494 |   |   | 14,071 |   |
| Accumulated other comprehensive loss                                                                                                                                              |         |    (693 | )  |   |    (2,867 | )  |
| Treasury stock, 210,900 shares at December 31, 2010; and 191,729 shares at December 31, 2009, at cost                                                                        |         | (2,180 | ) |   | (2,180 | )  |
| Total shareholders’ equity                                                                                                                                                  |         | 70,700 |   |   | 61,973 |   |
| Noncontrolling (minority) interest in consolidated subsidiaries                                                                                                                   |         | 32 |   |   | — |   |
| Total equity                                                                                                                                                                      |         | 70,732 |   |   | 61,973 |   |
| Total liabilities and equity                                                                                                                                                      | $            | 756,853 |   | $ | 654,198 |   |
|                                                                                                                                                                              |         |   |   |   |   |   |
| See accompanying notes to consolidated financial statements                                                                                                                       |         |

----

| (in thousands except share data)                                              |   | 2010   |      |   | 2009   |   |
|-------------------------------------------------------------------------------|--------|--------|-----------|--------|--------|--------|
| Interest income:                                                              |   |   |      |   |   |   |
| Interest and fees on loans                                                    |   | $      | 39,934    |   |   | $      | 38,482 |   |
| Interest and dividends on investments                                         |   |   | 1,702     |   |   |   | 1,912 |   |
| Interest on federal funds sold and cash equivalents                           |   |   | —   |   |   |   | 1 |   |
| Total interest income                                                         |   |   | 41,636    |   |   |   | 40,395 |   |
| Interest expense:                                                             |   |   |      |   |   |   |   |   |
| Interest on deposits                                                          |   |   | 9,600     |   |   |   | 13,685 |   |
| Interest on borrowings                                                        |   |   | 1,750     |   |   |   | 2,049 |   |
| Total interest expense                                                        |   |   | 11,350    |   |   |   | 15,734 |   |
| Net interest income                                                           |   |   | 30,286    |   |   |   | 24,661 |   |
| Provision for loan losses                                                     |   |   | 9,001     |   |   |   | 5,300 |   |
| Net interest income after provision for loan losses                           |   |   | 21,285    |   |   |   | 19,361 |   |
| Noninterest income (loss)                                                     |   |   |      |   |   |   |   |   |
| Loan fees                                                                     |   |   | 301       |   |   |   | 241 |   |
| Net income from BOLI                                                          |   |   | 178       |   |   |   | 180 |   |
| Service fees on deposit accounts                                              |   |   | 252       |   |   |   | 187 |   |
| Gain on sale of SBA loans                                                     |   |   | 1,789     |   |   |   | 313 |   |
| Other than temporary impairment losses                                        |   |   | (124      | )      |   |   | (2,482 | )  |
| Portion of loss recognized in other comprehensive income (OCI) (before taxes) |   |   | —   |   |   |   | 753 |   |
| Net impairment losses recognized in earnings                                  |   |   | (124      | )      |   |   | (1,729 | )  |
| Gain on sale of real estate owned                                             |   |   | 32        |   |   |   | 19 |   |
| Other                                                                         |   |   | 329       |   |   |   | 249 |   |
| Total noninterest income (loss)                                               |   |   | 2,757     |   |   |   | (540 | ) |
| Noninterest expense                                                           |   |   |      |   |   |   |   |   |
| Compensation and benefits                                                     |   |   | 5,250     |   |   |   | 4,114 |   |
| Professional services                                                         |   |   | 1,160     |   |   |   | 862 |   |
| Occupancy and equipment                                                       |   |   | 937       |   |   |   | 848 |   |
| Data processing                                                               |   |   | 344       |   |   |   | 292 |   |
| FDIC  insurance                                                     |   |   | 873       |   |   |   | 835 |   |
| OREO expense                                                                  |   |   | 622       |   |   |   | 126 |   |
| Other operating expense                                                       |   |   | 2,464     |   |   |   | 1,680 |   |
| Total noninterest expense                                                     |   |   | 11,650    |   |   |   | 8,757 |   |
| Income before income tax expense                                              |   |   | 12,392    |   |   |   | 10,064 |   |
| Income tax expense                                                            |   |   | 4,895     |   |   |   | 3,964 |   |
| Net income attributable to Company and noncontrolling (minority) interest     |   |   | 7,497     |   |   |   | 6,100 |   |
| Net income attributable to noncontrolling (minority) interest                 |   |   | (157      | )      |   |   | — |   |
| Net income attributable to Company                                            |   |   | 7,340     |   |   |   | 6,100 |   |
| Preferred stock dividend and discount accretion                               |   |   | 988       |   |   |   | 899 |   |
| Net income available to common shareholders                                   |   | $      | 6,352     |   |   | $      | 5,201 |   |
|                                                                          |   |   |      |   |   |   |   |   |
| Earnings per common share                                                     |   |   |      |   |   |   |   |   |
| Basic                                                                         |   | $      | 1.43      |   |   | $      | 1.17 |   |
| Diluted                                                                       |   | $      | 1.41      |   |   | $      | 1.17 |   |
| Weighted average shares outstanding                                           |   |   |      |   |   |   |   |   |
| Basic                                                                         |   |   | 4,438,926 |   |   |   | 4,434,490 |   |
| Diluted                                                                       |   |   | 4,497,217 |   |   |   | 4,434,490 |   |

----

| Parke Bancorp, Inc. and Subsidiaries                                             |   |
|----------------------------------------------------------------------------------|--------|
|                                                                             |   |
| Consolidated Statements of Equity                                                |   |
| Years Ended December 31, 2010 and 2009                                           |   |
| (in thousands)                                                                   |   |
|                                                                             |   | PreferredStock |   |   | CommonStock |   |   | AdditionalPaid-InCapital |   |   | Retained Earnings |   |   | Accumulated Other Comprehensive Income (Loss) |   |   | TreasuryStock |   |   | Total Shareholders' Equity |   |   | Non-Controlling (Minority) Interest |   |   | Total Equity |   |
| Balance, December 31, 2008                                                       |   | $ | — |   |   | $ | 414 |   |   | $ | 35,656 |   |   | $ | 8,870 |   |   | $ | (2,791 | ) |   | $ | (1,848 | ) |   | $ | 40,301 |   |   | $ | — |   |   | $ | 40,301 |   |
| Stock warrants exercised                                                         |   |   |   |   |   |   | 7 |   |   |   | 415 |   |   |   |   |   |   |   |   |   |   |   | (332 | ) |   |   | 90 |   |   |   |   |   |   |   | 90 |   |
| Stock compensation                                                               |   |   |   |   |   |   |   |   |   |   | 19 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 19 |   |   |   |   |   |   |   | 19 |   |
| Comprehensive income (loss):                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net income                                                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 6,100 |   |   |   |   |   |   |   |   |   |   |   | 6,100 |   |   |   |   |   |   |   | 6,100 |   |
| Non-credit unrealized losses on debt securities with OTTI, net of taxes          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | (451 | ) |   |   |   |   |   |   | (451 | ) |   |   |   |   |   |   | (451 | ) |
| Net unrealized gains on available for sale securities without OTTI, net of taxes |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 380 |   |   |   |   |   |   |   | 380 |   |   |   |   |   |   |   | 380 |   |
| Pension liability adjustments, net of tax                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | (5 | ) |   |   |   |   |   |   | (5 | ) |   |   |   |   |   |   | (5 | ) |
| Total comprehensive income                                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 6,024 |   |   |   | — |   |   |   | 6,024 |   |
| Preferred stock issued                                                           |   |   | 15,358 |   |   |   |   |   |   |   | 930 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 16,288 |   |   |   |   |   |   |   | 16,288 |   |
| Dividend on preferred stock (5% annually)                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   | (749 | ) |   |   |   |   |   |   |   |   |   |   | (749 | ) |   |   |   |   |   |   | (749 | ) |
| Accretion of discount on preferred stock                                         |   |   | 150 |   |   |   |   |   |   |   |   |   |   |   | (150 | ) |   |   |   |   |   |   |   |   |   |   | 0 |   |   |   |   |   |   |   | 0 |   |
| Balance, December 31, 2009                                                       |   |   | 15,508 |   |   |   | 421 |   |   |   | 37,020 |   |   |   | 14,071 |   |   |   | (2,867 | ) |   |   | (2,180 | ) |   |   | 61,973 |   |   |   | — |   |   |   | 61,973 |   |
|                                                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Stock options exercised                                                          |   |   |   |   |   |   |   |   |   |   | 32 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 32 |   |   |   |   |   |   |   | 32 |   |
| Capital contribution by noncontrolling (minority) interest                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 196 |   |   |   | 196 |   |
| Capital withdrawals by noncontrolling (minority) interest                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | (321 | ) |   |   | (321 | ) |
| 10% common stock dividend                                                        |   |   |   |   |   |   | 44 |   |   |   | 4,879 |   |   |   | (4,923 | ) |   |   |   |   |   |   |   |   |   |   | — |   |   |   |   |   |   |   | — |   |
| Dividends on fractional shares                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | (6 | ) |   |   |   |   |   |   |   |   |   |   | (6 | ) |   |   |   |   |   |   | (6 | ) |
| Comprehensive income (loss):                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net income                                                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 7,340 |   |   |   |   |   |   |   |   |   |   |   | 7,340 |   |   |   | 157 |   |   |   | 7,497 |   |
| Non-credit unrealized gains on debt securities with OTTI, net of taxes           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 124 |   |   |   |   |   |   |   | 124 |   |   |   |   |   |   |   | 124 |   |
| Net unrealized gains on available for sale securities without OTTI, net of taxes |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 2,007 |   |   |   |   |   |   |   | 2,007 |   |   |   |   |   |   |   | 2,007 |   |
| Pension liability adjustments, net of taxes                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 43 |   |   |   |   |   |   |   | 43 |   |   |   |   |   |   |   | 43 |   |
| Total comprehensive income                                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 9,514 |   |   |   | 157 |   |   |   | 9,671 |   |
| Dividend on preferred stock (5% annually)                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   | (813 | ) |   |   |   |   |   |   |   |   |   |   | (813 | ) |   |   |   |   |   |   | (813 | ) |
| Accretion of discount on preferred stock                                         |   |   | 175 |   |   |   |   |   |   |   |   |   |   |   | (175 | ) |   |   |   |   |   |   |   |   |   |   | — |   |   |   |   |   |   |   | — |   |
| Balance, December 31, 2010                                                       |   | $ | 15,683 |   |   | $ | 465 |   |   | $ | 41,931 |   |   | $ | 15,494 |   |   | $ | (693 | ) |   | $ | (2,180 | ) |   | $ | 70,700 |   |   | $ | 32 |   |   | $ | 70,732 |   |

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| Parke Bancorp, Inc. and Subsidiaries                                              |   |
|-----------------------------------------------------------------------------------|--------|
|                                                                              |   |
| Consolidated Statements of Cash Flows                                             |   |
| Years Ended December 31, 2010 and 2009                                            |   |
| (in thousands)                                                                    |   |
|                                                                              |   | 2010 |   |   | 2009 |   |
| Cash Flows from Operating Activities                                              |   |   |   |   |   |   |
| Net income                                                                        |   | $ | 7,497 |   |   | $ | 6,100 |   |
| Adjustments to reconcile net income to net cash provided by operating activities: |   |   |   |   |   |   |   |   |
| Depreciation and amortization                                                     |   |   | 348 |   |   |   | 312 |   |
| Provision for loan losses                                                         |   |   | 9,001 |   |   |   | 5,300 |   |
| Stock compensation                                                                |   |   | — |   |   |   | 19 |   |
| Bank owned life insurance                                                         |   |   | (178 | ) |   |   | (180 | ) |
| Supplemental executive retirement plan                                            |   |   | 508 |   |   |   | 384 |   |
| Gain on sale of SBA loans                                                         |   |   | (1,789 | ) |   |   | (313 | ) |
| SBA loans originated for sale                                                     |   |   | (28,392 | ) |   |   | (3,552 | ) |
| Proceeds from sale of SBA loans originated for sale                               |   |   | 31,386 |   |   |   | 3,197 |   |
| Gain on sale of other real estate owned                                           |   |   | (32 | ) |   |   | (19 | ) |
| Loss on write down of foreclosed assets                                           |   |   | — |   |   |   | 228 |   |
| Other than temporary decline in value of investments                              |   |   | 124 |   |   |   | 1,729 |   |
| Net accretion of purchase premiums and discounts on securities                    |   |   | (194 | ) |   |   | (109 | ) |
| Deferred income tax benefit                                                       |   |   | (1,726 | ) |   |   | (2,825 | ) |
| Changes in operating assets and liabilities:                                      |   |   |   |   |   |   |   |   |
| Increase in accrued interest receivable and other assets                          |   |   | 995 |   |   |   | (3,813 | ) |
| Increase in accrued interest payable and other accrued liabilities                |   |   | (1,478 | ) |   |   | 300 |   |
| Net cash provided by operating activities                                         |   |   | 16,070 |   |   |   | 6,758 |   |
| Cash Flows from Investing Activities                                              |   |   |   |   |   |   |   |   |
| Purchases of investment securities available for sale                             |   |   | (5,753 | ) |   |   | (8,636 | ) |
| Purchases of restricted stock                                                     |   |   | 54 |   |   |   | (511 | ) |
| Proceeds from maturities of investment securities available for sale              |   |   | 3,790 |   |   |   | 3,500 |   |
| Principal payments on mortgage-backed securities                                  |   |   | 7,784 |   |   |   | 5,880 |   |
| Proceeds from sale of other real estate owned                                     |   |   | 758 |   |   |   | 505 |   |
| Net increase in loans                                                             |   |   | (58,745 | ) |   |   | (57,060 | ) |
| Purchases of bank premises and equipment                                          |   |   | (1,766 | ) |   |   | (159 | ) |
| Net cash used in investing activities                                             |   |   | (53,878 | ) |   |   | (56,481 | ) |
| Cash Flows from Financing Activities                                              |   |   |   |   |   |   |   |   |
| Proceeds from issuance of preferred stock                                         |   |   |   |   |   |   | 16,288 |   |
| Payment of dividend on preferred stock                                            |   |   | (813 | ) |   |   | (645 | ) |
| Dividends on fractional shares                                                    |   |   | (6 | ) |   |   | — |   |
| Net distribution to non-controlling interest                                      |   |   | (125 | ) |   |   | — |   |
| Proceeds from exercise of stock options and warrants                              |   |   | 32 |   |   |   | 422 |   |
| Purchase of treasury stock                                                        |   |   | — |   |   |   | (332 | ) |
| Net increase in secured borrowings                                                |   |   | 11,454 |   |   |   | 2,025 |   |
| Proceeds from other borrowings                                                    |   |   | — |   |   |   | 29,500 |   |
| Payments of Federal Home Loan Bank advances                                       |   |   | (3,669 | ) |   |   | (25,637 | ) |
| Net increase in noninterest-bearing deposits                                      |   |   | 1,680 |   |   |   | (773 | ) |
| Net increase in interest-bearing deposits                                         |   |   | 82,729 |   |   |   | 25,759 |   |
| Net cash provided by financing activities                                         |   |   | 91,282 |   |   |   | 46,607 |   |
| (Decrease)/increase in cash and cash equivalents                                  |   |   | 53,474 |   |   |   | (3,116 | ) |
| Cash and Cash Equivalents, January 1,                                             |   |   | 4,154 |   |   |   | 7,270 |   |
| Cash and Cash Equivalents, December 31,                                           |   | $ | 57,628 |   |   | $ | 4,154 |   |
| Supplemental Disclosure of Cash Flow Information:                                 |   |   |   |   |   |   |   |   |
| Cash paid during the year for:                                                    |   |   |   |   |   |   |   |   |
| Interest on deposits and borrowed funds                                           |   | $ | 11,343 |   |   | $ | 16,435 |   |
| Income taxes                                                                      |   | $ | 8,350 |   |   | $ | 6,701 |   |
| Supplemental Schedule of Noncash Activities:                                      |   |   |   |   |   |   |   |   |
| Real estate acquired in settlement of loans                                       |   | $ | 16,778 |   |   | $ | 430 |   |
|                                                                              |   |   |   |   |   |   |   |   |
| See accompanying notes to consolidated financial statements                       |   |   |   |   |   |   |   |   |

----

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| •   | Reduction (absolute or contingent) of the stated interest rate; |
|---------------------|-----------------------------------------------------------------|

----

----

| •   | Extension of the maturity date or dates at a stated interest rate lower than the current market rate for new debt with similar risk; |
|---------------------|--------------------------------------------------------------------------------------------------------------------------------------|

| •   | Reduction (absolute or contingent) of the face amount or maturity amount of the debt as stated in the instrument or other agreement; or |
|---------------------|-----------------------------------------------------------------------------------------------------------------------------------------|

| •   | Reduction (absolute or contingent) of accrued interest. |
|---------------------|---------------------------------------------------------|

| TDRs are reported as impaired loans. |
|--------------------------------------|

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|                                                                            |   | 2010                   |   |   | 2009   |   |
|---------------------------------------------------------------------------------|--------|------------------------|--------|--------|--------|--------|
|                                                                            |   | (amounts in thousands) |   |
| Net Income:                                                                     |   | $                      | 7,497  |   |   | $      | 6,100 |   |
| Non-credit unrealized gains (losses) on available for sale securities with OTTI |   |                   | 81     |   |   |   | (2,482 | ) |
| Unrealized gains (losses) on available for sale securities without OTTI         |   |                   | 3,346  |   |   |   | 634 |   |
| Reclassification adjustment for net losses realized in income                   |   |                   | 124    |   |   |   | 1,729 |   |
| Minimum pension liability                                                       |   |                   | 43     |   |   |   | (9 | ) |
| Tax impact                                                                      |   |                   | (1,420 | )      |   |   | 52 |   |
| Comprehensive income                                                            |   |                   | 9,671  |   |   |   | 6,024 |   |
| Net income attributable to noncontrolling (minority) interest                   |   |                   | (157   | )      |   |   | — |   |
| Comprehensive income attributable to Company                                    |   | $                      | 9,514  |   |   | $      | 6,024 |   |

----

----

|                                                                    |   | 2010                   |   |   | 2009   |   |
|-------------------------------------------------------------------------|--------|------------------------|--------|--------|--------|--------|
|                                                                    |   | (amounts in thousands) |   |
| Securities                                                              |   |                   |   |   |   |   |
| Non-credit unrealized losses on available for sale securities with OTTI |   | $                      | (548   | )      |   | $      | (753 | ) |
| Unrealized losses on available for sale securities without OTTI         |   |                   | (273   | )      |   |   | (3,619 | ) |
| Minimum pension liability                                               |   |                   | (201   | )      |   |   | (244 | ) |
|                                                                    |   |                   |   |   |   |   |   |   |
| Tax impact                                                              |   |                   | 329    |   |   |   | 1,749 |   |
|                                                                    |   | $                      | (693   | )      |   | $      | (2,867 | ) |

|                                                                                            |   | 2010   |      |   | 2009   |   |
|-------------------------------------------------------------------------------------------------|--------|--------|-----------|--------|--------|--------|
|                                                                                            |   |   |      |   |   |   |
| Average number of common shares outstanding                                                     |   |   | 4,438,926 |   |   |   | 4,434,490 |   |
| Effect of dilutive warrants                                                                     |   |   | 58,292    |   |   |   | — |   |
| Average number of common shares outstanding used to calculate diluted earnings per common share |   |   | 4,497,217 |   |   |   | 4,434,490 |   |

----

----

| 1)   | A reporting entity should provide fair value measurement disclosures for each class of assets and liabilities. A class is often a subset of assets or liabilities within a line item in the statement of financial position. A reporting entity needs to use judgment in determining the appropriate classes of assets and liabilities. |
|----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2)   | A reporting entity should provide disclosures about the valuation techniques and inputs used to measure fair value for both recurring and nonrecurring fair value measurements that fall in either Level 2 or Level 3. |
|----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

----

----

|  As of December 31, 2010          |                   | Amortizedcost |    | Grossunrealizedgains |    | Grossunrealizedlosses |    | Other-than-temporaryimpairmentsin OCI |   | Fair value |    |
|----------------------------------------|------------------------|---------------|---------|----------------------|---------|-----------------------|---------|---------------------------------------|--------|------------|---------|
|  Available for sale:              | (amounts in thousands) |          |
|                                   |                   |          |    |                 |    |                  |
| U.S. Government sponsored entities     | $                      | 3,006         |    | $                    | 14      |                  | $       | 95                                    |   | $          | — |   | $ | 2,925 |   |
| Corporate debt obligations             |                   | 2,000         |    |                 | 94      |                  |    | —                               |   |       | — |   |   | 2,094 |   |
| Residential mortgage-backed securities | 15,938                 |          | 645     |                 | 24      |                  | — |                                  | 16,559 |       |
| Collateralized mortgage obligations    | 2,045                  |          | 107     |                 | — |                  | — |                                  | 2,152  |       |
| Collateralized debt obligations        | 5,562                  |          | — |                 | 1,014   |                  | 548     |                                  | 4,000  |       |
| Total available for sale               | $                      | 28,551        |    | $                    | 860     |                  | $       | 1,133                                 |   | $          | 548     |   | $ | 27,730 |   |
|                                   |                   |          |    |                 |    |                  |    |                                  |   |       |
|  Held to maturity:                |                   |          |    |                 |    |                  |    |                                  |   |       |
| States and political subdivisions      | $                      | 1,999         |    | $                    | 60      |                  | $       | 11                                    |   | $          | — |   | $ | 2,048 |   |

----

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

|  As of December 31, 2009          |                   | Amortizedcost |    | Grossunrealizedgains |    | Grossunrealizedlosses |    | Other-than-temporaryimpairmentsin OCI |   | Fair value |    |
|----------------------------------------|------------------------|---------------|---------|----------------------|---------|-----------------------|---------|---------------------------------------|--------|------------|---------|
|  Available for sale:              | (amounts in thousands) |          |
|                                   |                   |          |    |                 |    |                  |
| U.S. Government sponsored entities     | $                      | 3,273         |    | $                    | — |                  | $       | 41                                    |   | $          | — |   | $ | 3,232 |   |
| Corporate debt obligations             |                   | 2,000         |    |                 | 17      |                  |    | 47                                    |   |       | — |   |   | 1,970 |   |
| Residential mortgage-backed securities | 19,098                 |          | 679     |                 | 79      |                  | — |                                  | 19,698 |       |
| Collateralized mortgage obligations    | 3,859                  |          | 68      |                 | 50      |                  | 68      |                                  | 3,809  |       |
| Collateralized debt obligations        | 5,562                  |          | — |                 | 4,166   |                  | 685     |                                  | 711    |       |
| Total available for sale               | $                      | 33,792        |    | $                    | 764     |                  | $       | 4,383                                 |   | $          | 753     |   | $ | 29,420 |   |
|                                   |                   |          |    |                 |    |                  |    |                                  |   |       |
|  Held to maturity:                |                   |          |    |                 |    |                  |    |                                  |   |       |
| States and political subdivisions      | $                      | 2,509         |    | $                    | 10      |                  | $       | 115                                   |   | $          | — |   | $ | 2,404 |   |

|                                                                           |   | AmortizedCost          |    |   | FairValue |   |
|--------------------------------------------------------------------------------|--------|------------------------|---------|--------|-----------|--------|
|                                                                           |   | (amounts in thousands) |    |
| Available for sale:                                                            |   |                   |    |
| Due within one year                                                            |   | $                      | — |   |      | $      | — |   |
| Due after one year through five years                                          |   |                   | 1,000   |   |      |   | 1,014 |   |
| Due after five years through ten years                                         |   |                   | 2,000   |   |      |   | 1,905 |   |
| Due after ten years                                                            |   |                   | 7,568   |   |      |   | 6,100 |   |
| Residential mortgage-backed securities and collateralized mortgage obligations |   |                   | 17,983  |   |      |   | 18,711 |   |
| Total  available for sale                                            |   | $                      | 28,551  |   |      | $      | 27,730 |   |

| Held to maturity:                      |   |   |    |
|----------------------------------------|--------|--------|---------|
| Due within one year                    |   | $      | — |   |   | $ | — |   |
| Due after one year through five years  |   |   | — |   |   |   | — |   |
| Due after five years through ten years |   |   | — |   |   |   | — |   |
| Due after ten years                    |   |   | 1,999   |   |   |   | 2,048 |   |
| Total held to maturity                 |   | $      | 1,999   |   |   | $ | 2,048 |   |

----

----

| As of December 31, 2010                                                        |   | Less Than 12 Months    |    |   | 12 Months or Greater |   |    | Total     |   |
|--------------------------------------------------------------------------------|--------|------------------------|---------|--------|----------------------|--------|---------|-----------|--------|
| Description of Securities                                                      |   | FairValue              |    |   | UnrealizedLosses     |   |    | FairValue |   |   | UnrealizedLosses |   |   | FairValue |   |   | UnrealizedLosses |   |
|                                                                           |   | (amounts in thousands) |    |
| Available for sale:                                                            |   |                   |    |   |                 |   |    |      |   |   |   |   |   |   |   |   |   |   |
| U.S. Government sponsored entities                                             |   | $                      | 1,905   |   |                 | $      | 95      |      |   | $ | — |   |   | $ | — |   |   | $ | 1,905 |   |   | $ | 95 |   |
| Corporate debt obligations                                                     |   |                   | — |   |                 |   | — |      |   |   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |
| Residential mortgage-backed securities and collateralized mortgage obligations |   |                   | 4,807   |   |                 |   | 24      |      |   |   | — |   |   |   | — |   |   |   | 4,807 |   |   |   | 24 |   |
| Collateralized debt obligations                                                |   |                   | — |   |                 |   | — |      |   |   | 3,736 |   |   |   | 1,014 |   |   |   | 3,736 |   |   |   | 1,014 |   |
| Total available for sale                                                       |   | $                      | 6,712   |   |                 | $      | 119     |      |   | $ | 3,736 |   |   | $ | 1,014 |   |   | $ | 10,448 |   |   | $ | 1,133 |   |
|                                                                           |   |                   |    |   |                 |   |    |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Held to maturity:                                                              |   |                   |    |   |                 |   |    |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| States and political subdivisions                                              |   | $                      | 1,229   |   |                 | $      | 11      |      |   | $ | — |   |   | $ | — |   |   | $ | 1,229 |   |   | $ | 11 |   |

----

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

| As of December 31, 2009                                                        |   | Less Than 12 Months    |    |   | 12 Months or Greater |   |    | Total     |   |
|--------------------------------------------------------------------------------|--------|------------------------|---------|--------|----------------------|--------|---------|-----------|--------|
| Description of Securities                                                      |   | FairValue              |    |   | UnrealizedLosses     |   |    | FairValue |   |   | UnrealizedLosses |   |   | FairValue |   |   | UnrealizedLosses |   |
|                                                                           |   | (amounts in thousands) |    |
| Available for sale:                                                            |   |                   |    |   |                 |   |    |      |   |   |   |   |   |   |   |   |   |   |
| U.S. Government sponsored entities                                             |   | $                      | 3,225   |   |                 | $      | 41      |      |   | $ | — |   |   | $ | — |   |   | $ | 3,225 |   |   | $ | 41 |   |
| Corporate debt obligations                                                     |   |                   | — |   |                 |   | — |      |   |   | 653 |   |   |   | 47 |   |   |   | 653 |   |   |   | 47 |   |
| Residential mortgage-backed securities and collateralized mortgage obligations |   |                   | 6,289   |   |                 |   | 129     |      |   |   | — |   |   |   | — |   |   |   | 6,289 |   |   |   | 129 |   |
| Collateralized debt obligations                                                |   |                   | — |   |                 |   | — |      |   |   | 585 |   |   |   | 4,166 |   |   |   | 585 |   |   |   | 4,166 |   |
| Total available for sale                                                       |   | $                      | 9,514   |   |                 | $      | 170     |      |   | $ | 1,238 |   |   | $ | 4,213 |   |   | $ | 10,752 |   |   | $ | 4,383 |   |
|                                                                           |   |                   |    |   |                 |   |    |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Held to maturity:                                                              |   |                   |    |   |                 |   |    |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| States and political subdivisions                                              |   | $                      | — |   |                 | $      | — |      |   | $ | 610 |   |   | $ | 115 |   |   | $ | 610 |   |   | $ | 115 |   |

----

----

----

----

|                                                                               |   | 2010                   |    |   | 2009   |   |
|------------------------------------------------------------------------------------|--------|------------------------|---------|--------|--------|--------|
|                                                                               |   | (Amounts in thousands) |    |
| Beginning balance                                                                  |   | $                      | 4,008   |   |   | $      | 2,279 |   |
| Initial credit impairment                                                          |   |                   | — |   |   |   | 1,105 |   |
| Subsequent credit impairments                                                      |   |                   | 124     |   |   |   | 624 |   |
| Reductions for amounts recognized in earnings due to intent or requirement to sell |   |                   | — |   |   |   | — |   |
| Reductions for securities sold                                                     |   |                   | — |   |   |   | — |   |
| Reductions for securities deemed worthless                                         |   |                   | 1,475   |   |   |   | — |   |
| Reductions for increases in cash flows expected to be collected                    |   |                   | — |   |   |   | — |   |
| Ending balance                                                                     |   | $                      | 2,657   |   |   | $      | 4,008 |   |

----

----

|                                |   | 2010                   |    |   | 2009   |   |
|-------------------------------------|--------|------------------------|---------|--------|--------|--------|
|                                |   | (Amounts in thousands) |    |
| Available for sale securities:      |   |                   |    |   |   |   |
| Realized gains                      |   | $                      | — |   |   | $      | — |   |
| Realized (losses)                   |   |                   | — |   |   |   | — |   |
| Other than temporary impairment     |   |                   | (124    | )      |   |   | (1,729 | ) |
| Total available for sale securities |   | $                      | (124    | )      |   | $      | (1,729 | ) |
|                                |   |                   |    |   |   |   |   |   |
| Held to maturity securities:        |   |                   |    |   |   |   |   |   |
| Realized gains                      |   | $                      | — |   |   | $      | — |   |
| Realized (losses)                   |   |                   | — |   |   |   | — |   |
| Other than temporary impairment     |   |                   | — |   |   |   | — |   |
| Total held to maturity securities   |   | $                      | 0       |   |   | $      | 0 |   |

----

----

----

----

|                            |   | 2010                   |    |   | 2009   |   |
|---------------------------------|--------|------------------------|---------|--------|--------|--------|
|                            |   | (Amounts in thousands) |    |
|                            |   |                   |    |   |   |   |
| Commercial                      |   | $                      | 25,108  |   |   | $      | 20,174 |   |
| Real estate construction:       |   |                   |    |   |   |   |   |   |
| Residential                     |   |                   | 38,810  |   |   |   | 61,865 |   |
| Commercial                      |   |                   | 57,651  |   |   |   | 44,726 |   |
| Real estate mortgage:           |   |                   |    |   |   |   |   |   |
| Residential                     |   |                   | 169,536 |   |   |   | 154,385 |   |
| Commercial                      |   |                   | 318,519 |   |   |   | 309,226 |   |
| Consumer                        |   |                   | 17,115  |   |   |   | 13,025 |   |
| Total Loans                     |   |                   | 626,739 |   |   |   | 603,401 |   |
| Less: allowance for loan losses |   |                   | (14,789 | )      |   |   | (12,404 | ) |
| Net loans                       |   | $                      | 611,950 |   |   | $      | 590,997 |   |

----

----

----

----

|                       |   | 2010                   |   |   | 2009   |   |
|----------------------------|--------|------------------------|--------|--------|--------|--------|
|                       |   | (Amounts in thousands) |   |
|                       |   |                   |   |   |   |   |
| Balance, beginning of year |   | $                      | 23,644 |   |   | $      | 20,500 |   |
| Advances                   |   |                   | 1,781  |   |   |   | 3,230 |   |
| Less: repayments           |   |                   | (1,402 | )      |   |   | (86 | ) |
| Balance, end of year       |   | $                      | 24,023 |   |   | $      | 23,644 |   |

----

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

|                      | 30-59 Days Past Due    |    | 60-89 Days Past Due |   | Greater than 90 Days and NotAccruing |   | Total Past Due |    | Current |   |   | Total Loans |   | Loans > 90 Days and Accruing |
|---------------------------|------------------------|---------|---------------------|--------|--------------------------------------|--------|----------------|---------|---------|--------|--------|-------------|--------|---------------------------------|
|                      | (Amounts in thousands) |
|                      |                   |    |                |   |                                 |   |           |    |    |   |   |        |   |                            |   |   |   |   |   |   |
| Commercial                | $                      | 212     |                | $      | 98                                   |   | $              | — |    | $      | 310    |        | $      | 24,798                          |   | $ | 25,108 |   | $ | — |
| Real estate construction: |                   |    |                |   |                                 |   |           |    |    |   |   |        |   |                            |   |   |   |   |   |   |
| Residential               |                   | 1,657   |                |   | —                              |   |           | 8,546   |    |   | 10,203 |        |   | 28,607                          |   |   | 38,810 |   |   | — |
| Commercial                |                   | 75      |                |   | —                              |   |           | 6,701   |    |   | 6,776  |        |   | 50,875                          |   |   | 57,651 |   |   | — |
| Real estate mortgage:     |                   |    |                |   |                                 |   |           |    |    |   |   |        |   |                            |   |   |   |   |   |   |
| Residential               |                   | 1,139   |                |   | 2,161                                |   |           | 9,415   |    |   | 12,715 |        |   | 156,821                         |   |   | 169,536 |   |   | — |
| Commercial                |                   | 4,833   |                |   | 5,670                                |   |           | 2,722   |    |   | 13,225 |        |   | 305,294                         |   |   | 318,519 |   |   | — |
| Consumer                  |                   | — |                |   | —                              |   |           | 61      |    |   | 61     |        |   | 17,054                          |   |   | 17,115 |   |   | — |
| Total                     | $                      | 7,916   |                | $      | 7,929                                |   | $              | 27,445  |    | $      | 43,290 |        | $      | 583,449                         |   | $ | 626,739 |   | $ | — |
|                      |                   |    |                |   |                                 |   |           |    |    |   |   |        |   |                            |   |   |   |   |   |   |

----

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

|                                 |   | Recorded Investment    |    |   | Unpaid Principal Balance |   |    | Related Allowance |   |   | Average Recorded Investment |   |   | Interest Income Recognized1 |    |
|--------------------------------------|--------|------------------------|---------|--------|--------------------------|--------|---------|-------------------|--------|--------|-----------------------------|--------|--------|-----------------------------|---------|
|                                 |   | (Amounts in thousands) |    |
| With no related allowance recorded:  |   |                   |    |   |                     |   |    |              |   |   |                        |   |   |                        |    |
| Commercial                           |   | $                      | 785     |   |                     | $      | 785     |              |   | $      | —                     |   |   | $                           | 509     |   |   | $ | 11 |   |
| Residential real estate construction |   |                   | 13,180  |   |                     |   | 14,147  |              |   |   | —                     |   |   |                        | 12,789  |   |   |   | 106 |   |
| Commercial real estate construction  |   |                   | 18,181  |   |                     |   | 18,770  |              |   |   | —                     |   |   |                        | 7,845   |   |   |   | 214 |   |
| Residential real estate mortgage     |   |                   | 8,540   |   |                     |   | 8,637   |              |   |   | —                     |   |   |                        | 7,881   |   |   |   | 230 |   |
| Commercial real estate mortgage      |   |                   | 42,303  |   |                     |   | 42,303  |              |   |   | —                     |   |   |                        | 16,203  |   |   |   | 1,562 |   |
| Consumer                             |   |                   | 61      |   |                     |   | 61      |              |   |   | —                     |   |   |                        | 31      |   |   |   | — |   |
|                                 |   |                   | 83,050  |   |                     |   | 84,703  |              |   |   | —                     |   |   |                        | 45,258  |   |   |   | 2,123 |   |
|                                 |   |                   |    |   |                     |   |    |              |   |   |                        |   |   |                        |    |   |   |   |   |   |
| With an allowance recorded:          |   |                   |    |   |                     |   |    |              |   |   |                        |   |   |                        |    |   |   |   |   |   |
| Commercial                           |   |                   | — |   |                     |   | — |              |   |   | —                     |   |   |                        | — |   |   |   | — |   |
| Residential real estate construction |   |                   | 6,599   |   |                     |   | 7,820   |              |   |   | 2,091                       |   |   |                        | 6,576   |   |   |   | 70 |   |
| Commercial real estate construction  |   |                   | — |   |                     |   | — |              |   |   | —                     |   |   |                        | — |   |   |   | — |   |
| Residential real estate mortgage     |   |                   | 12,946  |   |                     |   | 13,113  |              |   |   | 562                         |   |   |                        | 5,462   |   |   |   | 389 |   |
| Commercial real estate mortgage      |   |                   | 9,428   |   |                     |   | 9,548   |              |   |   | 198                         |   |   |                        | 4,064   |   |   |   | 525 |   |
| Consumer                             |   |                   | — |   |                     |   | — |              |   |   | —                     |   |   |                        | — |   |   |   | — |   |
|                                 |   |                   | 28,973  |   |                     |   | 30,481  |              |   |   | 2,851                       |   |   |                        | 16,102  |   |   |   | 984 |   |
|                                 |   |                   |    |   |                     |   |    |              |   |   |                        |   |   |                        |    |   |   |   |   |   |
| Total:                               |   |                   |    |   |                     |   |    |              |   |   |                        |   |   |                        |    |   |   |   |   |   |
| Commercial                           |   |                   | 785     |   |                     |   | 785     |              |   |   | —                     |   |   |                        | 509     |   |   |   | 11 |   |
| Residential real estate construction |   |                   | 19,779  |   |                     |   | 21,967  |              |   |   | 2,091                       |   |   |                        | 19,365  |   |   |   | 176 |   |
| Commercial real estate construction  |   |                   | 18,181  |   |                     |   | 18,770  |              |   |   | —                     |   |   |                        | 7,845   |   |   |   | 214 |   |
| Residential real estate mortgage     |   |                   | 21,486  |   |                     |   | 21,750  |              |   |   | 562                         |   |   |                        | 13,343  |   |   |   | 619 |   |
| Commercial real estate mortgage      |   |                   | 46,371  |   |                     |   | 46,491  |              |   |   | 198                         |   |   |                        | 20,267  |   |   |   | 2,087 |   |
| Consumer                             |   |                   | 61      |   |                     |   | 61      |              |   |   | —                     |   |   |                        | 31      |   |   |   | — |   |
|                                 |   | $                      | 112,023 |   |                     | $      | 115,184 |              |   | $      | 2,851                       |   |   | $                           | 61,360  |   |   | $ | 3,107 |   |

----

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

| (Amounts in thousands)                                     |   |
|------------------------------------------------------------|--------|
|                                                       |   |   |   |
| Impaired loans with a valuation allowance                  |   | $ | 22,681 |   |
| Impaired loans without a valuation allowance               |   |   | 28,208 |   |
| Total impaired loans                                       |   | $ | 50,889 |   |
|                                                       |   |   |   |   |
| Related allowance for loan losses for impaired loans       |   | $ | 3,555 |   |
|                                                       |   |   |   |   |
| Nonaccrual loans                                           |   | $ | 25,452 |   |
|                                                       |   |   |   |   |
| Average monthly balance of impaired loans                  |   | $ | 34,601 |   |
|                                                       |   |   |   |   |
| Interest income recognized on cash basis on impaired loans |   | $ | 10 |   |

| 1.   | Good:  Borrower exhibits the strongest overall financial condition and represents the most creditworthy profile. |
|----------------|----------------------------------------------------------------------------------------------------------------------------|

| 2.   | Satisfactory (A):  Borrower reflects a well balanced financial condition, demonstrates a high level of creditworthiness and typically will have a strong banking relationship with Parke Bank. |
|----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 3.   | Satisfactory (B):  Borrower exhibits a balanced financial condition and does not expose the Bank to more than a normal or average overall amount of risk.  Loans are considered fully collectable. |
|----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 4.   | Watch List:  Borrower reflects a fair financial condition, but there exists an overall greater than average risk. Risk is deemed acceptable by virtue of increased monitoring and control over borrowings.  Probability of timely repayment is present. |
|----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 5.   | Other Assets Especially Mentioned (OAEM):  Financial condition is such that assets in this category have a potential weakness or pose unwarranted financial risk to the Bank even though the asset value is not currently impaired.  Asset does not currently warrant adverse classification but if not corrected could weaken and could create future increased risk exposure. Includes loans which require an increased degree of monitoring or servicing as a result of internal or external changes. |
|----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 6.   | Substandard:  This classification represents more severe cases of #5 (OAEM) characteristics that require increased monitoring.  Assets are characterized by the distinct possibility that the Bank will sustain some loss if the deficiencies are not corrected. Assets are inadequately protected by |
|----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

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

|    | the current net worth and paying capacity of the borrower or of the collateral. Asset has a well defined weakness or weaknesses that impairs the ability to repay debt and jeopardizes the timely liquidation or realization of the collateral at the asset’s net book value. |
|--------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 7.   | Doubtful:  Assets which have all the weaknesses inherent in those assets classified #6 (Substandard) but the risks are more severe relative to financial deterioration in capital and/or asset value; accounting/evaluation techniques may be questionable and the overall possibility for collection in full is highly improbable. Borrowers in this category require constant monitoring, are considered work out loans and present the potential for future loss to the bank |
|----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                 |   | Pass                   |    |   | OAEM   |   |   | Substandard |   |   | Doubtful |   |   | Total  |    |
|--------------------------------------|--------|------------------------|---------|--------|--------|--------|--------|-------------|--------|--------|----------|--------|--------|--------|---------|
| At December 31, 2010                 |   | (Amounts in thousands) |    |
| Commercial                           |   | $                      | 23,823  |   |   | $      | 500    |        |   | $      | 785      |   |   | $      | — |   |   | $ | 25,108 |   |
| Residential real estate construction |   |                   | 12,132  |   |   |   | 6,899  |        |   |   | 19,779   |   |   |   | — |   |   |   | 38,810 |   |
| Commercial real estate construction  |   |                   | 38,570  |   |   |   | 900    |        |   |   | 18,181   |   |   |   | — |   |   |   | 57,651 |   |
| Residential real estate mortgage     |   |                   | 153,142 |   |   |   | 4,290  |        |   |   | 12,104   |   |   |   | — |   |   |   | 169,536 |   |
| Commercial real estate mortgage      |   |                   | 255,577 |   |   |   | 44,473 |        |   |   | 18,469   |   |   |   | — |   |   |   | 318,519 |   |
| Consumer                             |   |                   | 15,559  |   |   |   | 1,495  |        |   |   | 61       |   |   |   | — |   |   |   | 17,115 |   |
| Total                                |   | $                      | 498,803 |   |   | $      | 58,557 |        |   | $      | 69,379   |   |   | $      | — |   |   | $ | 626,739 |   |
|                                 |   |                   |    |   |   |   |   |        |   |   |     |   |   |   |    |   |   |   |   |   |

----

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

----

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

|                                       | Commercial             |    | Residential Real Estate Construction |   | Commercial Real Estate Construction |   | Residential Real Estate Mortgage |    | Commercial Real Estate Mortgage |   | Consumer |   | Unallocated |    | Total  |
|--------------------------------------------|------------------------|---------|--------------------------------------|--------|-------------------------------------|--------|----------------------------------|---------|---------------------------------|--------|----------|--------|-------------|---------|--------|
|                                       | (Amounts in thousands) |
| Allowance for loan Losses:                 |                   |    |                                 |   |                                |   |                             |    |                            |   |     |   |        |    |   |   |   |   |   |   |   |   |   |
| Beginning balance                          | $                      | 214     |                                 | $      | 4,074                               |   | $                                | 498     |                            | $      | 1,451    |   | $           | 5,975   |   | $ | 102 |   | $ | 90 |   | $ | 12,404 |
| Charge-offs                                |                   | 615     |                                 |   | 3,893                               |   |                             | 588     |                            |   | 1,315    |   |        | 189     |   |   | 16 |   |   | — |   |   | 6,616 |
| Recoveries                                 |                   | — |                                 |   | —                             |   |                             | — |                            |   | —  |   |        | — |   |   | — |   |   | — |   |   | — |
| Provisions                                 |                   | 849     |                                 |   | 2,799                               |   |                             | 1,666   |                            |   | 3,084    |   |        | 514     |   |   | 44 |   |   | 45 |   |   | 9,001 |
| Ending balance                             | $                      | 448     |                                 | $      | 2,980                               |   | $                                | 1,576   |                            | $      | 3,220    |   | $           | 6,300   |   | $ | 130 |   | $ | 135 |   | $ | 14,789 |
|                                       |                   |    |                                 |   |                                |   |                             |    |                            |   |     |   |        |    |   |   |   |   |   |   |   |   |   |
| Allowance for loan Losses, ending balance: |                   |    |                                 |   |                                |   |                             |    |                            |   |     |   |        |    |   |   |   |   |   |   |   |   |   |
| Individually evaluated for impairment      | $                      | — |                                 | $      | 2,091                               |   | $                                | — |                            | $      | 562      |   | $           | 198     |   | $ | — |   | $ | — |   | $ | 2,851 |
| Collectively evaluated for impairment      |                   | 448     |                                 |   | 889                                 |   |                             | 1,576   |                            |   | 2,658    |   |        | 6,102   |   |   | 130 |   |   | 135 |   |   | 11,998 |
| Total                                      | $                      | 448     |                                 | $      | 2,980                               |   | $                                | 1,576   |                            | $      | 3,220    |   | $           | 6,300   |   | $ | 130 |   | $ | 135 |   | $ | 14,789 |
|                                       |                   |    |                                 |   |                                |   |                             |    |                            |   |     |   |        |    |   |   |   |   |   |   |   |   |   |
| Loans, ending balance:                     |                   |    |                                 |   |                                |   |                             |    |                            |   |     |   |        |    |   |   |   |   |   |   |   |   |   |
| Individually evaluated for impairment      | $                      | 785     |                                 | $      | 19,779                              |   | $                                | 18,181  |                            | $      | 21,486   |   | $           | 46,371  |   | $ | 61 |   |   |   |   | $ | 106,663 |
| Collectively evaluated for impairment      |                   | 24,323  |                                 |   | 19,031                              |   |                             | 39,470  |                            |   | 148,050  |   |        | 272,148 |   |   | 17,054 |   |   |   |   |   | 520,076 |
| Total                                      | $                      | 25,108  |                                 | $      | 38,810                              |   | $                                | 57,651  |                            | $      | 169,536  |   | $           | 318,519 |   | $ | 17,115 |   |   |   |   | $ | 626,739 |
|                                       |                   |    |                                 |   |                                |   |                             |    |                            |   |     |   |        |    |   |   |   |   |   |   |   |   |   |

| (Amounts in thousands)     |   |
|----------------------------|--------|
|                       |   |   |   |
| Balance, beginning of year |   | $ | 7,777 |   |
| Provision for loan losses  |   |   | 5,300 |   |
| Charge offs                |   |   | (673 | ) |
| Recoveries                 |   |   | — |   |
| Balance, end of year       |   | $ | 12,404 |   |

----

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

|                                            |   | 2010                   |   |   | 2009   |   |
|-------------------------------------------------|--------|------------------------|--------|--------|--------|--------|
|                                            |   | (Amounts in thousands) |   |
|                                            |   |                   |   |   |   |   |
| Land                                            |   | $                      | 820    |   |   | $      | 470 |   |
| Building and improvements                       |   |                   | 4,243  |   |   |   | 3,028 |   |
| Furniture and equipment                         |   |                   | 1,417  |   |   |   | 1,224 |   |
| Total premises and equipment                    |   |                   | 6,480  |   |   |   | 4,722 |   |
| Less: accumulated depreciation and amortization |   |                   | (2,201 | )      |   |   | (1,861 | ) |
| Premises and equipment, net                     |   | $                      | 4,279  |   |   | $      | 2,861 |   |

| Depreciation and amortization expense was $348,000 and $312,000 in 2010 and 2009, respectively. |
|-------------------------------------------------------------------------------------------------|

| Years Ending December 31,    |   | (Amounts in thousands) |   |
|------------------------------|--------|------------------------|--------|
|                         |   |                   |   |
| 2011                         |   | $                      | 129    |   |
| 2012                         |   |                   | 141    |   |
| 2013                         |   |                   | 152    |   |
| 2014                         |   |                   | 82     |   |
| 2015                         |   |                   | 82     |   |
| Thereafter                   |   |                   | 121    |   |
| Total minimum lease payments |   | $                      | 707    |   |

----

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

----

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

|                                 |   | 2010                   |    |   | 2009   |   |
|--------------------------------------|--------|------------------------|---------|--------|--------|--------|
|                                 |   | (Amounts in thousands) |    |
|                                 |   |                   |    |   |   |   |
| Demand deposits, noninterest-bearing |   | $                      | 23,168  |   |   | $      | 21,488 |   |
| Demand deposits, interest-bearing    |   |                   | 14,065  |   |   |   | 11,616 |   |
| Money market deposits                |   |                   | 94,622  |   |   |   | 83,640 |   |
| Savings deposits                     |   |                   | 166,742 |   |   |   | 141,687 |   |
| Time deposits of $100,000 or more    |   |                   | 109,214 |   |   |   | 71,100 |   |
| Other time deposits                  |   |                   | 126,742 |   |   |   | 94,692 |   |
| Brokered time deposits               |   |                   | 70,169  |   |   |   | 96,090 |   |
| Total deposits                       |   | $                      | 604,722 |   |   | $      | 520,313 |   |

| Years Ending December 31, |   | (Amounts in thousands) |    |
|---------------------------|--------|------------------------|---------|
|                      |   |                   |    |
| 2011                      |   | $                      | 271,655 |   |
| 2012                      |   |                   | 29,938  |   |
| 2013                      |   |                   | 1,411   |   |
| 2014                      |   |                   | 1,506   |   |
| 2015                      |   |                   | 1,615   |   |
| Thereafter                |   |                   | — |   |
| Total                     |   | $                      | 306,125 |   |

----

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

|                                         |   |                   |   | 2010                                 |   | 2009                  |
|----------------------------------------------|--------|------------------------|--------|--------------------------------------|--------|-----------------------|
|                                         |   | Maturity Date or Range |   | Amount                               |   | Weighted Average Rate |   | Amount |   | Weighted Average Rate |
|                                         |   |                   |   |                                 |   |                  |   |   |   |   |   |   |
|                                         |   |                   |   | (Amounts in thousands, except rates) |
| Borrowed funds:                              |   |                   |   |                                 |   |                  |   |   |   |   |   |   |
| Federal Home Loan Bank repurchase agreements |   | May 2013               |   | $                                    | 5,000  |                  | 2.65% |   | $ | 5,000 |   | 2.65% |
|                                         |   |                   |   |                                 |   |                  |   |   |   |   |   |   |
| Other repurchase agreements                  |   | July 2012              |   | $                                    | 5,000  |                  | 4.91% |   | $ | 5,000 |   | 4.91% |
|                                         |   |                   |   |                                 |   |                  |   |   |   |   |   |   |
| Secured Borrowings                           |   | March 31, 2011         |   | $                                    | 11,454 |                  | 0.0% |   |   | — |   | — |
|                                         |   |                   |   |                                 |   |                  |   |   |   |   |   |   |
| Federal Home Loan Bank advances              |   | Less than one year     |   | $                                    | 39,900 |                  | 1.95% |   | $ | 8,525 |   | 2.71% |
|                                         |   | One to three years     |   |                                 |   |                  |   |   |   | 34,900 |   | 2.08% |
|                                         |   | Three to five years    |   |                                 |   |                  |   |   |   | 1,003 |   | 5.02% |
|                                         |   | Five to ten years      |   |                                 | 859    |                  | 5.19% |   |   |      — |   | — |
|                                         |   | Total                  |   | $                                    | 40,759 |                  |   |   | $ | 44,428 |   |   |
|                                         |   |                   |   |                                 |   |                  |   |   |   |   |   |   |
| Subordinated debentures, capital trusts      |   | November 2035          |   | $                                    | 5,155  |                  | 1.94% |   | $ | 5,155 |   | 1.93% |
|                                         |   | November 2035          |   |                                 | 5,155  |                  | 1.94% |   |   | 5,155 |   | 6.25% |
|                                         |   | September 2037         |   |                                 | 3,093  |                  | 1.80% |   |   | 3,093 |   | 1.75% |
|                                         |   | Total                  |   | $                                    | 13,403 |                  |   |   | $ | 13,403 |   |   |
|                                         |   |                   |   |                                 |   |                  |   |   |   |   |   |   |

----

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

----

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

|                 |   | 2010                   |   |   | 2009   |   |
|----------------------|--------|------------------------|--------|--------|--------|--------|
|                 |   | (Amounts in thousands) |   |
|                 |   |                   |   |   |   |   |
| Current tax expense: |   |                   |   |   |   |   |
| Federal              |   | $                      | 4,984  |   |   | $      | 5,169 |   |
| State                |   |                   | 1,637  |   |   |   | 1,620 |   |
|                 |   |                   | 6,621  |   |   |   | 6,789 |   |
| Deferred tax benefit |   |                   | (1,726 | )      |   |   | (2,825 | ) |
| Income tax expense   |   | $                      | 4,895  |   |   | $      | 3,964 |   |

|                                     |   | 2010                   |   |   | 2009   |   |
|------------------------------------------|--------|------------------------|--------|--------|--------|--------|
|                                     |   | (Amounts in thousands) |   |
|                                     |   |                   |   |   |   |   |
| Deferred tax assets                      |   |                   |   |   |   |   |
| Allowance for loan losses                |   | $                      | 6,011  |   |   | $      | 4,903 |   |
| Investment securities available for sale |   |                   | 328    |   |   |   | 1,748 |   |
| Minimum pension liability                |   |                   | 1,900  |   |   |   | 1,405 |   |
| Stock compensation                       |   |                   | 30     |   |   |   | 29 |   |
| Depreciation                             |   |                   | 176    |   |   |   | 224 |   |
| Other                                    |   |                   | -      |   |   |   | 21 |   |
| Deferred gain on sale of loans           |   |                   | 529    |   |   |   | — |   |
| Capitalized OREO expense                 |   |                   | 264    |   |   |   | — |   |
| OTTI write down on securities            |   |                   | 1,300  |   |   |   | 1,603 |   |
|                                     |   |                   | 10,538 |   |   |   | 9,933 |   |
| Deferred tax liabilities:                |   |                   |   |   |   |   |   |   |
| Discount accretion                       |   |                   | (71    | )      |   |   | (118 | ) |
| Deferred loan costs                      |   |                   | (633   | )      |   |   | (513 | ) |
| BOLI                                     |   |                   | (515   | )      |   |   | (454 | ) |
|                                     |   |                   | (1,219 | )      |   |   | (1,085 | ) |
| Net deferred tax asset                   |   | $                      | 9,319  |   |   | $      | 8,848 |   |

|                                           |   | 2010                   |   |   | 2009   |   |
|------------------------------------------------|--------|------------------------|--------|--------|--------|--------|
|                                           |   | (Amounts in thousands) |   |
|                                           |   |                   |   |   |   |   |
| At Federal statutory rate                      |   | $                      | 4,337  |   |   | $      | 3,422 |   |
| Adjustments resulting from:                    |   |                   |   |   |   |   |   |   |
| State income taxes, net of Federal tax benefit |   |                   | 751    |   |   |   | 641 |   |
| Other                                          |   |                   | (193   | )      |   |   | (99 | ) |
|                                           |   | $                      | 4,895  |   |   | $      | 3,964 |   |

----

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

|                            |   | 2010                   |   |   | 2009   |   |
|---------------------------------|--------|------------------------|--------|--------|--------|--------|
|                            |   | (amounts in thousands) |   |
| Benefit obligation, January 1   |   | $                      | 2,237  |   |   | $      | 1,845 |   |
| Service cost                    |   |                   | 280    |   |   |   | 207 |   |
| Interest cost                   |   |                   | 130    |   |   |   | 106 |   |
| (Gain) loss                     |   |                   | 2      |   |   |   | 79 |   |
| Benefit obligation, December 31 |   | $                      | 2,649  |   |   | $      | 2,237 |   |

|                          |   | 2010                   |    |   | 2009   |   |
|-------------------------------|--------|------------------------|---------|--------|--------|--------|
|                          |   | (amounts in thousands) |    |
| Service cost                  |   | $                      | 280     |   |   | $      | 207 |   |
| Interest cost                 |   |                   | 130     |   |   |   | 106 |   |
| (Gain) loss                   |   |                   | 2       |   |   |   | 79 |   |
| Prior service cost recognized |   |                   | — |   |   |   | 26 |   |
|                          |   | $                      | 412     |   |   | $      | 418 |   |

----

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

----

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

|                      | Actual                               |   | For Capital Adequacy Purposes |   | To be Well- Capitalized Under Prompt Corrective Action Provisions |
|---------------------------|--------------------------------------|--------|-------------------------------|--------|-------------------------------------------------------------------|
| Parke Bancorp, Inc.       | Amount                               | Ratio  |                          | Amount | Ratio                                                             |   | Amount | Ratio |
| As of December 31, 2010   | (amounts in thousands except ratios) |
|                      |                                 |   |                          |   |                                                              |   |   |   |   |   |   |
| Total Risk Based Capital  | $                                    | 92,629 | 14.2%                         |   | $                                                                 | 52,183 | 8% |   |   | N/A | N/A |
| (to Risk Weighted Assets) |                                 |   |                          |   |                                                              |   |   |   |   |   |   |
|                      |                                 |   |                          |   |                                                              |   |   |   |   |   |   |
| Tier 1 Capital            | $                                    | 84,393 | 12.9%                         |   | $                                                                 | 26,092 | 4% |   |   | N/A | N/A |
| (to Risk Weighted Assets) |                                 |   |                          |   |                                                              |   |   |   |   |   |   |
|                      |                                 |   |                          |   |                                                              |   |   |   |   |   |   |
| Tier 1 Capital            | $                                    | 84,393 | 11.2%                         |   | $                                                                 | 30,062 | 4% |   |   | N/A | N/A |
| (to Average Assets)       |                                 |   |                          |   |                                                              |   |   |   |   |   |   |
|                      |                                 |   |                          |   |                                                              |   |   |   |   |   |   |
| As of December 31, 2009   |                                 |   |                          |   |                                                              |   |   |   |   |   |   |
|                      |                                 |   |                          |   |                                                              |   |   |   |   |   |   |
| Total Risk Based Capital  | $                                    | 85,394 | 14.3%                         |   | $                                                                 | 47,892 | 8% |   |   | N/A | N/A |
| (to Risk Weighted Assets) |                                 |   |                          |   |                                                              |   |   |   |   |   |   |
|                      |                                 |   |                          |   |                                                              |   |   |   |   |   |   |
| Tier 1 Capital            | $                                    | 77,840 | 13.7%                         |   | $                                                                 | 22,674 | 4% |   |   | N/A | N/A |
| (to Risk Weighted Assets) |                                 |   |                          |   |                                                              |   |   |   |   |   |   |
|                      |                                 |   |                          |   |                                                              |   |   |   |   |   |   |
| Tier 1 Capital            | $                                    | 77,840 | 11.9%                         |   | $                                                                 | 26,108 | 4% |   |   | N/A | N/A |
| (to Average Assets)       |                                 |   |                          |   |                                                              |   |   |   |   |   |   |
|                      |                                 |   |                          |   |                                                              |   |   |   |   |   |   |
| Parke Bank                |                                 |   |                          |   |                                                              |   |   |   |   |   |   |
| As of December 31, 2010   |                                 |   |                          |   |                                                              |   |   |   |   |   |   |
|                      |                                 |   |                          |   |                                                              |   |   |   |   |   |   |
| Total Risk Based Capital  | $                                    | 92,556 | 14.2%                         |   | $                                                                 | 52,181 | 8% |   | $ | 65,226 | 10% |
| (to Risk Weighted Assets) |                                 |   |                          |   |                                                              |   |   |   |   |   |   |
|                      |                                 |   |                          |   |                                                              |   |   |   |   |   |   |
| Tier 1 Capital            | $                                    | 84,321 | 12.9%                         |   | $                                                                 | 26,091 | 4% |   | $ | 39,136 | 6% |
| (to Risk Weighted Assets) |                                 |   |                          |   |                                                              |   |   |   |   |   |   |
|                      |                                 |   |                          |   |                                                              |   |   |   |   |   |   |
| Tier 1 Capital            | $                                    | 84,321 | 11.2%                         |   | $                                                                 | 30,062 | 4% |   | $ | 37,577 | 5% |
| (to Average Assets)       |                                 |   |                          |   |                                                              |   |   |   |   |   |   |
|                      |                                 |   |                          |   |                                                              |   |   |   |   |   |   |
| As of December 31, 2009   |                                 |   |                          |   |                                                              |   |   |   |   |   |   |
|                      |                                 |   |                          |   |                                                              |   |   |   |   |   |   |
| Total Risk Based Capital  | $                                    | 85,448 | 14.3%                         |   | $                                                                 | 47,890 | 8% |   | $ | 59,863 | 10% |
| (to Risk Weighted Assets) |                                 |   |                          |   |                                                              |   |   |   |   |   |   |
|                      |                                 |   |                          |   |                                                              |   |   |   |   |   |   |
| Tier 1 Capital            | $                                    | 77,922 | 13.0%                         |   | $                                                                 | 23,945 | 4% |   | $ | 35,918 | 6% |
| (to Risk Weighted Assets) |                                 |   |                          |   |                                                              |   |   |   |   |   |   |
|                      |                                 |   |                          |   |                                                              |   |   |   |   |   |   |
| Tier 1 Capital            | $                                    | 77,922 | 11.9%                         |   | $                                                                 | 26,124 | 4% |   | $ | 32,655 | 5% |
| (to Average Assets)       |                                 |   |                          |   |                                                              |   |   |   |   |   |   |

----

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

| Options                          | Shares  |   | Weighted Average Exercise Price |    | Weighted Average Remaining Contractual Life | Aggregate Intrinsic Value |
|----------------------------------|---------|--------|---------------------------------|---------|---------------------------------------------|---------------------------|
|                             |    |   |                            |    |                                        |                      |   |   |
| Outstanding at January 1, 2010   | 352,018 |   | $                               | 10.92   |                                        |                      |   |   |
| Granted                          | — |   | $                               | — |                                        |                      |   |   |
| Exercised                        | 5,907   |   | $                               | 5.33    |                                        |                      |   |   |
| Expired/terminated               | 2,500   |   | $                               | 11.38   |                                        |                      |   |   |
| Outstanding at December 31, 2010 | 343,611 |   | $                               | 11.02   |                                        | 4.3                       |   | $ | — |
|                             |    |   |                            |    |                                        |                      |   |   |
| Exercisable at December 31, 2010 | 343,611 |   | $                               | 11.02   |                                        | 4.3                       |   | $ | — |
|                             |    |   |                            |    |                                        |                      |   |   |
|                             |    |   |                            |    |                                        |                      |   |   |

----

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

|   Range of Exercise Prices |    | Number Outstanding |   | Weighted Average Remaining Contractual Life |   | Weighted Average Exercise Price |
|---------------------------------|---------|--------------------|--------|---------------------------------------------|--------|---------------------------------|
|                            |    |               |   |                                        |   |                            |
| $4.54                           | 20,855  |               | 1.3    |                                        | $      | 4.54                            |
| $6.35                           | 45,697  |               | 2.4    |                                        | $      | 6.35                            |
| $8.98                           | 9,107   |               | 3.3    |                                        | $      | 8.98                            |
| $10.78                          | 36,976  |               | 4.2    |                                        | $      | 10.78                           |
| $12.58 – 13.65            | 230,976 |               | 5.0    |                                        | $      | 12.64                           |
|                            | 343,611 |               | 4.3    |                                        | $      | 11.01                           |

----

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

----

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

----

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

|   | 3) | Inputs other than quoted prices that are observable, either directly or indirectly, for the term of the asset or liability (e.g., interest rates, yield curves, credit risks, prepayment speeds or volatilities) or “market corroborated inputs.” |
|--------|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 1) | Prices or valuation techniques that require inputs that are both unobservable (i.e. supported by little or no market activity) and that are significant to the fair value of the assets or liabilities. |
|--------|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 2) | These assets and liabilities include financial instruments whose value is determined using pricing models, discounted cash flow methodologies, or similar techniques, as well as instruments for which the determination of fair value requires significant management judgment or estimation. |
|--------|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

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

| Financial Assets                          |   | Level 1                |    |   | Level 2 |   |    | Level 3 |   |   | Total   |   |
|-------------------------------------------|--------|------------------------|---------|--------|---------|--------|---------|---------|--------|--------|---------|--------|
|                                      |   | (amounts in thousands) |    |
| Securities Available for Sale             |   |                   |    |   |    |   |    |    |   |   |    |   |
|                                      |   |                   |    |   |    |   |    |    |   |   |    |   |
| As of December 31, 2010                   |   |                   |    |   |    |   |    |    |   |   |    |   |
| U.S. Government sponsored entities        |   | $                      | — |   |    | $      | 2,925   |    |   | $      | — |   |   | $ | 2,925 |   |
| Corporate debt obligations                |   |                   | — |   |    |   | 2,094   |    |   |   | — |   |   |   | 2,094 |   |
| Residential mortgage-backed securities    |   |                   | — |   |    |   | 16,559  |    |   |   | — |   |   |   | 16,559 |   |
| Collateralized mortgage-backed securities |   |                   |    |   |    |   | 1,592   |    |   |   | 560     |   |   |   | 2,152 |   |
| Collateralized debt obligations           |   |                   | — |   |    |   | — |    |   |   | 4,000   |   |   |   | 4,000 |   |
| Total                                     |   | $                      | — |   |    | $      | 23,170  |    |   | $      | 4,560   |   |   | $ | 27,730 |   |
|                                      |   |                   |    |   |    |   |    |    |   |   |    |   |   |   |   |   |
|  As of December 31, 2009             |   |                   |    |   |    |   |    |    |   |   |    |   |   |   |   |   |
| U.S. Government sponsored entities        |   | $                      | — |   |    | $      | 3,232   |    |   | $      | — |   |   | $ | 3,232 |   |
| Corporate debt obligations                |   |                   | — |   |    |   | 1,970   |    |   |   | — |   |   |   | 1,970 |   |
| Residential mortgage-backed securities    |   |                   | — |   |    |   | 19,698  |    |   |   | — |   |   |   | 19,698 |   |
| Collateralized mortgage-backed securities |   |                   |    |   |    |   | 2,669   |    |   |   | 1,140   |   |   |   | 3,809 |   |
| Collateralized debt obligations           |   |                   | — |   |    |   | — |    |   |   | 711     |   |   |   | 711 |   |
| Total                                     |   | $                      | — |   |    | $      | 27,569  |    |   | $      | 1,851   |   |   | $ | 29,420 |   |

----

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

|                                             |   | Securities Available for Sale |    |
|--------------------------------------------------|--------|-------------------------------|---------|
|                                             |   | 2010                          |    | 2009 |   |
|                                             |   | (amounts in thousands)        |    |
| Beginning balance at January 1,                  |   | $                             | 1,851   |   |   | $ | 1,705 |   |
| Total net gains (losses) included in:            |   |                          |    |   |   |   |   |   |
| Net loss                                         |   |                          | (124    | ) |   |   | (1,729 | ) |
| Other comprehensive income (loss)                |   |                          | 3,384   |   |   |   | (405 | ) |
| Purchases, sales, issuances and settlements, net |   |                          | (551    | ) |   |   | — |   |
| Net transfers into Level 3                       |   |                          | — |   |   |   | 2,280 |   |
| Ending balance December 31,                      |   | $                             | 4,560   |   |   | $ | 1,851 |   |

| Financial Assets                                   |   | Level 1                |    |   | Level 2 |   |    | Level 3 |   |   | Total  |   |
|----------------------------------------------------|--------|------------------------|---------|--------|---------|--------|---------|---------|--------|--------|--------|--------|
|                                               |   | (amounts in thousands) |    |
| As of December 31, 2010                            |   |                   |    |   |    |   |    |    |   |   |   |   |
|       Impaired Loans |   | $                      | — |   |    | $      | — |    |   | $      | 26,122 |   |   | $ | 26,122 |   |
| OREO                                               |   |                   | — |   |    |   | — |    |   |   | 16,701 |   |   |   | 16,701 |   |
|                                               |   |                   |    |   |    |   |    |    |   |   |   |   |   |   |   |   |
| As of December 31, 2009                            |   |                   |    |   |    |   |    |    |   |   |   |   |   |   |   |   |
|       Impaired Loans |   | $                      | — |   |    | $      | — |    |   | $      | 19,126 |   |   | $ | 19,126 |   |

----

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

----

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

|                                                            |   | December 31, 2010      |           | December 31, 2009 |      |
|-----------------------------------------------------------------|--------|------------------------|----------------|-------------------|-----------|
| Carrying Value                                                  |   | FairValue              | Carrying Value |              | FairValue |   |
|                                                            |   | (amounts in thousands) |           |
| Financial Assets:                                               |   |
| Cash and cash equivalents                                       |   | $                      | 57,628         |              | $         | 57,628 |   | $ | 4,154 |   | $ | 4,154 |   |
| Investment securities (available for sale and held to maturity) |   |                   | 29,729         |              |      | 29,778 |   |   | 31,929 |   |   | 31,824 |   |
| Restricted stock                                                |   |                   | 3,040          |              |      | 3,040 |   |   | 3,094 |   |   | 3,094 |   |
| Loans held for sale                                             |   |                   | 11,454         |              |      | 11,454 |   |   | — |   |   | — |   |
| Loans, net                                                      |   |                   | 611,950        |              |      | 618,721 |   |   | 590,997 |   |   | 585,346 |   |
| Accrued interest receivable                                     |   |                   | 3,273          |              |      | 3,273 |   |   | 2,808 |   |   | 2,808 |   |
|                                                            |   |                   |           |              |      |   |   |   |   |   |   |   |   |
| Financial Liabilities:                                          |   |                   |           |              |      |   |   |   |   |   |   |   |   |
| Demand and savings deposits                                     |   | $                      | 298,598        |              | $         | 298,598 |   | $ | 257,566 |   | $ | 257,566 |   |
| Time deposits                                                   |   |                   | 306,124        |              |      | 307,776 |   |   | 261,882 |   |   | 264,901 |   |
| Borrowings                                                      |   |                   | 75,616         |              |      | 79,029 |   |   | 67,831 |   |   | 68,859 |   |
| Accrued interest payable                                        |   |                   | 828            |              |      | 828 |   |   | 821 |   |   | 821 |   |

----

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

|                                        |   | Three Months Ended                               |   |
|---------------------------------------------|--------|--------------------------------------------------|--------|
|                                        |   | December 31,                                     |   |   | September 30, |   |   | June 30, |   |   | March 31, |   |
|                                        |   | (Amounts in thousands, except per share amounts) |   |
| 2010                                        |   |                                             |   |   |   |   |   |   |   |   |   |   |
|                                        |   |                                             |   |   |   |   |   |   |   |   |   |   |
| Interest income                             |   | $                                                | 10,725 |   |   | $ | 10,472 |   |   | $ | 10,363 |   |   | $ | 10,076 |   |
| Interest expense                            |   |                                             | 2,779  |   |   |   | 2,820 |   |   |   | 2,798 |   |   |   | 2,953 |   |
| Net interest income                         |   |                                             | 7,946  |   |   |   | 7,652 |   |   |   | 7,565 |   |   |   | 7,123 |   |
| Provision for loan losses                   |   |                                             | 2,600  |   |   |   | 2,100 |   |   |   | 2,200 |   |   |   | 2,101 |   |
| Income before income tax expense            |   |                                             | 2,799  |   |   |   | 3,121 |   |   |   | 3,593 |   |   |   | 2,879 |   |
| Income tax expense                          |   |                                             | 1,093  |   |   |   | 1,180 |   |   |   | 1,470 |   |   |   | 1,152 |   |
| Net income                                  |   |                                             | 1,706  |   |   |   | 1,941 |   |   |   | 2,123 |   |   |   | 1,727 |   |
| Net income available to common shareholders |   |                                             | 1,468  |   |   |   | 1,581 |   |   |   | 1,757 |   |   |   | 1,546 |   |
|                                        |   |                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net income per common share:                |   |                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Basic                                       |   | $                                                | 0.33   |   |   | $ | 0.36 |   |   | $ | 0.40 |   |   | $ | 0.34 |   |
| Diluted                                     |   | $                                                | 0.33   |   |   | $ | 0.35 |   |   | $ | 0.39 |   |   | $ | 0.34 |   |
|                                        |   |                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                        |   |                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| 2009                                        |   |                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                        |   |                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest income                             |   | $                                                | 10,287 |   |   | $ | 10,128 |   |   | $ | 10,207 |   |   | $ | 9,773 |   |
| Interest expense                            |   |                                             | 3,299  |   |   |   | 3,765 |   |   |   | 4,071 |   |   |   | 4,599 |   |
| Net interest income                         |   |                                             | 6,988  |   |   |   | 6,363 |   |   |   | 6,136 |   |   |   | 5,174 |   |
| Provision for loan losses                   |   |                                             | 2,100  |   |   |   | 1,450 |   |   |   | 980 |   |   |   | 770 |   |
| Income before income tax expense            |   |                                             | 2,874  |   |   |   | 2,762 |   |   |   | 1,905 |   |   |   | 2,523 |   |
| Income tax expense                          |   |                                             | 1,176  |   |   |   | 1,067 |   |   |   | 726 |   |   |   | 995 |   |
| Net income                                  |   |                                             | 1,698  |   |   |   | 1,695 |   |   |   | 1,179 |   |   |   | 1,528 |   |
| Net income available to common shareholders |   |                                             | 1,453  |   |   |   | 1,450 |   |   |   | 935 |   |   |   | 1,363 |   |
|                                        |   |                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net income per common share:                |   |                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Basic                                       |   | $                                                | 0.33   |   |   | $ | 0.33 |   |   | $ | 0.21 |   |   | $ | 0.30 |   |
| Diluted                                     |   | $                                                | 0.33   |   |   | $ | 0.33 |   |   | $ | 0.21 |   |   | $ | 0.30 |   |
|                                        |   |                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

----

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

| Balance Sheets                                  | December 31,             |
|-------------------------------------------------|--------------------------|
|                                            | 2010                     |   | 2009 |
|                                            | (Amounts in thousands)   |
| Assets:                                         |                     |   |   |   |   |
| Cash                                            | $                        | 144 |   | $ | 117 |
| Investments in subsidiaries                     |                     | 84,118 |   |   | 75,410 |
| Other assets                                    |                     | 5 |   |   | — |
| Total assets                                    | $                        | 84,267 |   | $ | 75,527 |
|                                            |                     |   |   |   |   |
| Liabilities and Equity:                         |                     |   |   |   |   |
| Subordinated debentures                         | $                        | 13,403 |   | $ | 13,403 |
| Other liabilities                               |                     | 164 |   |   | 151 |
| Equity                                          |                     | 70,700 |   |   | 61,973 |
| Total liabilities and equity                    | $                        | 84,267 |   | $ | 75,527 |
|                                            |                     |   |   |   |   |
|                                            |                     |   |   |   |   |
| Statements of Income                            | Years ended December 31, |
|                                            | 2010                     |   | 2009 |
|                                            | (Amounts in thousands)   |
| Income:                                         |                     |   |   |   |   |
| Dividends from bank subsidiary                  | $                        | 1,600 |   | $ | 1,600 |
|                                            |                     |   |   |   |   |
| Expense:                                        |                     |   |   |   |   |
| Interest on subordinated debentures             |                     | 472 |   |   | 534 |
| Other expenses                                  |                     | 285 |   |   | 315 |
|                                            |                     | 757 |   |   | 849 |
| Income before income taxes                      |                     | 843 |   |   | 751 |
| Provision for income taxes                      |                     | — |   |   | — |
| Equity in undistributed income of subsidiaries  |                     | 6,497 |   |   | 5,349 |
| Net income                                      |                     | 7,340 |   |   | 6,100 |
| Preferred stock dividend and discount accretion |                     | 988 |   |   | 899 |
| Net income available to common shareholders     | $                        | 6,352 |   | $ | 5,201 |

----

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

| Statements of Cash Flows                                                          |   |
|-----------------------------------------------------------------------------------|--------|
|                                                                              |   | Years ended December 31, |   |
|                                                                              |   | 2010 |   |   | 2009 |   |
|                                                                              |   | (Amounts in thousands) |   |
| Cash Flows from Operating Activities                                              |   |   |   |   |   |   |
| Net income                                                                        |   | $ | 7,340 |   |   | $ | 6,100 |   |
| Adjustments to reconcile net income to net cash provided by operating activities: |   |   |   |   |   |   |   |   |
| Equity in undistributed earnings of subsidiaries                                  |   |   | (6,539 | ) |   |   | (5,349 | ) |
| Changes in operating assets and liabilities:                                      |   |   |   |   |   |   |   |   |
| Decrease (increase) in other assets                                               |   |   | — |   |   |   | 2 |   |
| Increase in accrued interest payable and other accrued liabilities                |   |   | 13 |   |   |   | 65 |   |
| Net cash provided by operating activities                                         |   |   | 814 |   |   |   | 818 |   |
| Cash Flows from Investing Activities                                              |   |   |   |   |   |   |   |   |
| Payments for investments in and advances to subsidiaries                          |   |   | — |   |   |   | (16,434 | ) |
| Net cash used in investing activities                                             |   |   | — |   |   |   | (16,434 | ) |
| Cash Flows from Financing Activities                                              |   |   |   |   |   |   |   |   |
| Proceeds from issuance of preferred stock                                         |   |   | — |   |   |   | 16,288 |   |
| Payment of dividend on preferred stock                                            |   |   | (813 | ) |   |   | (645 | ) |
|                                                                              |   |   | (6 | ) |   |   | — |   |
| Proceeds from exercise of stock options and warrants                              |   |   | 32 |   |   |   | 422 |   |
| Purchase of treasury stock                                                        |   |   |   |   |   |   | (332 | ) |
| Net cash provided by financing activities                                         |   |   | (787 | ) |   |   | 15,733 |   |
| Increase/(decrease) in cash and cash equivalents                                  |   |   | 27 |   |   |   | 117 |   |
| Cash and Cash Equivalents, January 1,                                             |   |   | 117 |   |   |   | — |   |
| Cash and Cash Equivalents, December 31,                                           |   | $ | 144 |   |   | $ | 117 |   |

----

| CORPORATE INFORMATION                                                                         |
|-----------------------------------------------------------------------------------------------|
|                                                                                          |   |   |
| PARKE BANCORP, INC                                                                            |
| 601 Delsea Drive                                                                              |
| Washington Township, NJ 08080                                                                 |
| (856) 256-2500                                                                                |
| www.parkebank.com                                                                             |
|                                                                                          |   |   |
| Board of Directors (Parke Bank and Parke Bancorp, Inc.)                                       |
|                                                                                          |   |   |
| Celestino R. (“Chuck”) Pennoni                                                    |   | Thomas Hedenberg |
| Chairman of the Board of Directors                                                            |   | Vice Chairman of the Board of Directors |
| Chairman & CEO - Pennoni Associates                                                       |   | Real Estate Developer |
|                                                                                          |   |   |
| Vito S. PantilionePresident, Chief Executive and Director                                     |
|                                                                                          |   |   |
| Fred G. ChoateDirector                                                                        | Daniel J. DaltonDirector | Arret F. DobsonDirector |
| President of Greater Philadelphia Venture Capital Corporation                                 | Vice President with Brown & Brown | Real Estate Developer |
|                                                                                          |   |   |
| Edward InfantolinoDirector                                                                    | Anthony J. JannettiDirector | Jeffrey H. KripitzDirector |
| President of Ocean Internal Medicine Associates, P.A.                                         | President of Anthony J. Jannetti, Inc. | Owner of Jeff Kripitz Agency |
|                                                                                          |   |   |
| Richard PhalinesDirector                                                                      | Jack C. Sheppard, Jr.Director | Ray H. TreschDirector |
| Co-owner of Concord Truss Company                                                             | Executive Vice President with Bollinger Insurance | Owner of Redy Mixt Konkrete |
|                                                                                          |
|                                                                                          | _______________________ |   |
|                                                                                          |   |   |
|                                                                                          | Parke Bancorp Officers |   |
|                                                                                          |   |   |
| Vito S. PantilionePresident andChief Executive Officer                                        | John F. HawkinsSenior  Vice President andChief Financial Officer | David O. MiddlebrookSenior Vice President andCorporate Secretary |
|                                                                                          | ________________________ |   |
|                                                                                          |   |   |
| Transfer Agent & RegistrarRegistrar and Transfer Company10 Commerce Dr.Cranford, NJ 07016 | Independent AuditorsMcGladrey & Pullen, LLP512 Township Line RoadOne Valley Square, Suite 250Blue Bell, PA 19422 | Special CounselMalizia Spidi & Fisch1227 25th Street, N.W.Suite 200 WestWashington, D.C. 20037 |

----

| Officers                                            |
|-----------------------------------------------------|
|                                                |   |
| Vito S. Pantilione                                  | Elizabeth A. Milavsky |
| President & Chief Executive Officer             | Executive Vice President & Chief Operating Officer |
|                                                |   |
| John F. Hawkins                                     | Robert Gehring |
| Senior Vice President & Chief Financial Officer | Senior Vice President & Chief Credit Officer |
|                                                |   |
| David O. Middlebrook                                | Paul E. Palmieri |
| Senior Vice President & Senior Loan Officer     | Senior Vice President, Philadelphia Region |
|                                                |   |
| Daniel Sulpizio                                     | Allen M. Bachman |
| Senior Vice President                               | Vice President |
|                                                |   |
| Dolores M. Calvello                                 | Ralph Gallo |
| Vice President                                      | Vice President & Chief Workout Officer |
|                                                |   |
| Anthony “Nino” Lombardo                 | Mark A. Prater |
| Vice President & Controller                     | Vice President & BSA Officer |
|                                                |   |
| Marlon R. Soriano                                   | James S. Talarico |
| Vice President                                      | Vice President |
|                                                |   |
| Milton H. Witte                                     | Evette M. Badecki |
| Vice President                                      | Assistant Vice President |
|                                                |   |
| Kathleen A. Conover                                 | Gil Eubank |
| Assistant Vice President                            | Assistant Vice President |
|                                                |   |
| Debra Miller                                        | Lisa Perkins |
| Assistant Vice President                            | Assistant Vice President |
|                                                |   |
| Mary Ann Seal                                       |
| Assistant Vice President                            |

|                              |                                     |                                     |
|-----------------------------------|------------------------------------------|------------------------------------------|
| Branches                          |
|                              |                                     |                                     |
| 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                           |
|                              |                                     |                                     |
| Philadelphia Office               | Galloway Township Office                 |
| 1610 Spruce Street                | 67 East Jimmie Leeds Road                |
| Philadelphia, PA  19103 | Galloway Township, NJ 08205              |
| (215) 772-1113                    | (609) 748-9700                           |

|                                     |                           |                          |
|------------------------------------------|--------------------------------|-------------------------------|
| Parke Bank                               | 44 Business Capital LLC        | Parke Capital Trust I         |
| 601 Delsea Drive                         | 1787 Sentry Parkway West       | Parke Capital Trust II        |
| Washington Township, NJ  08080 | Building 16, Suite 210         | Parke Capital Trust III       |
| (856) 256-2500                           | Blue Bell, PA  19422 | 601 Delsea Drive              |
| www.parkebank.com                        | (215) 985-4400                 | Washington Township, NJ 08080 |
|                                     | www.44businesscapital.com      | (856) 256-2500                |