UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                              Washington, DC 20549

                                    FORM 10-K

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

For the fiscal year ended: December 31, 2005 or

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

     For the transition period from ____________ to ____________

                          Commission File No. 000-51338

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

           New Jersey                                   65-1241959
(State or Other Jurisdiction of               (IRS Employer Identification No.)
Incorporation or Organization)

       601 Delsea Drive, Washington Township, New Jersey            08080
           (Address of Principal Executive Offices)              (Zip Code)

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

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

                     Common Stock, par value $0.10 per share
                                (Title of Class)

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

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

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

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

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

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

The  aggregate  market value of the voting stock held by  non-affiliates  of the
Registrant,  based on the  closing  price of the  Registrant's  common  stock as
quoted on the Nasdaq Capital Market on June 30, 2005,  was  approximately  $23.1
million.

     As of March 22, 2006 there were issued and outstanding  2,327,995 shares of
the Registrant's common stock.

                       DOCUMENTS INCORPORATED BY REFERENCE

1.   Portions  of the Annual  Report to  Shareholders  for the Fiscal Year Ended
     December 31, 2005. (Parts II and IV)

2.   Portions  of  the  Proxy   Statement   for  the  2006  Annual   Meeting  of
     Shareholders. (Parts II and III)

<PAGE>

                               PARKE BANCORP, INC.

                                    FORM 10-K

                   FOR THE FISCAL YEAR ENDED DECEMBER 31, 2005

                                      INDEX
<TABLE>
<CAPTION>

                                                                                                                  Page
                                                                                                                  ----
Part I
------
<S>       <C>                                                                                                     <C>
Item 1.       Business............................................................................................. 1
Item 1A.      Risk Factors.........................................................................................18
Item 1B.      Unresolved Staff Comments............................................................................20
Item 2.       Description of Property..............................................................................20
Item 3.       Legal Proceedings....................................................................................21
Item 4.       Submission of Matters to a Vote of Security Holders..................................................21

Part II
-------
Item 5.       Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases
              of Equity Securities.................................................................................22
Item 6.       Selected Financial Data..............................................................................22
Item 7.       Management's Discussion and Analysis of Financial Condition and Results of Operations................22
Item 7A.      Quantitative and Qualitative Disclosures About Market Risk...........................................22
Item 8.       Financial Statements and Supplementary Data..........................................................22
Item 9.       Changes in and Disagreements With Accountants on Accounting and Financial Disclosure.................22
Item 9A.      Controls and Procedures..............................................................................22
Item 9B.      Other Information....................................................................................23

Part III
--------
Item 10.      Directors and Executive Officers of the Registrant...................................................24
Item 11.      Executive Compensation...............................................................................24
Item 12.      Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters.......24
Item 13.      Certain Relationships and Related Transactions.......................................................25
Item 14.      Principal Accountant Fees and Services...............................................................25

Part IV
-------
Item 15.      Exhibits and Financial Statement Schedules...........................................................25

</TABLE>

                                       i

<PAGE>

                                     PART I

Forward-Looking Statements

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

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

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

Item 1. Business

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

         The Bank is a commercial  bank,  which commenced  operations on January
28,  1999.  The Bank is chartered  by the New Jersey  Department  of Banking and
insured by the Federal Deposit Insurance Corporation ("FDIC"). Parke Bancorp and
the Bank  maintain  their  principal  offices  at 601 Delsea  Drive,  Washington
Township,  New  Jersey.  The Bank also  conducts  business  through  offices  in
Northfield and Washington Township, New Jersey. In addition, the Bank also has a
Loan Production Office in Philadelphia,  Pennsylvania maintained exclusively for
loan production.  The Bank is a full service bank, with an emphasis on providing
personal and business  financial  services to individuals and small to mid-sized
businesses in  Gloucester,  Atlantic and Cape May Counties in New Jersey and the
Philadelphia area in Pennsylvania.  At December 31, 2005, the Bank had assets of
$297.8  million,  deposits of $232.1 million and  shareholders'  equity of $27.2
million.

                                       1

<PAGE>

         The  Bank  focuses  its  commercial  loan  originations  on  small  and
mid-sized business (generally up to $7 million in annual sales). Commercial loan
products  include  residential  and commercial real estate  construction  loans;
working  capital  loans and lines of credit;  demand,  term and time loans;  and
equipment, inventory and accounts receivable financing. Residential construction
loans in tract  development  are also included in the commercial  loan category.
The Bank also offers a range of deposit  products to its  commercial  customers.
Commercial  customers  also have the ability to use  overnight  depository,  ACH
activity and wire transfer service, all at reduced rates.

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

Market Area

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

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

Competition

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

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

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

                                       2
<PAGE>

Lending Activities

     Composition of Loan Portfolio. Set forth below is selected data relating to
the  composition  of the  Bank's  loan  portfolio  by type of loan at the  dates
indicated.(1)

<TABLE>
<CAPTION>
                                                                         At December 31,
                           ---------------------------------------------------------------------------------------------------------
                                      2005                  2004                2003                 2002                 2001
                           ---------------------- -------------------- -------------------- ------------------- --------------------
                                Amount    Percent      Amount  Percent     Amount   Percent     Amount  Percent     Amount   Percent
                           ------------   ------- ------------ ------- -----------  ------- ----------- ------- -----------  -------

<S>                      <C>              <C>   <C>            <C>  <C>             <C>   <C>           <C>   <C>           <C>
Commercial................ $ 11,053,481     4.3%  $  9,708,142   5.1% $  8,799,899    6.0%  $ 7,035,669   7.4%  $ 7,013,258   11.1%
Real estate construction:
   Residential............    1,174,233     0.5      1,252,811   0.7     2,164,811    1.5     1,370,266   1.4     1,491,077    2.4
   Commercial.............   70,156,767    27.1     37,270,464  19.8    29,896,562   20.4    17,122,397  18.0     6,912,656   10.9
Real estate mortgage:
   Residential............   17,308,735     6.7     16,360,109   8.7    18,013,087   12.3    13,188,780  13.9    10,417,895   16.5
   Commercial.............  154,287,964    59.6    120,051,646  63.6    84,054,063   57.5    53,503,768  56.3    35,550,050   56.2
Consumer..................    5,053,908     1.8      3,963,818   2.1     3,405,909    2.3     2,874,330   3.0     1,852,236    2.9
                           ------------   -----   ------------ -----  ------------  -----   ----------- -----   -----------  -----
     Total Loans.......... $259,035,088   100.0%  $188,606,990 100.0% $146,334,331  100.0%  $95,095,210 100.0%  $63,237,172  100.0%
                           ============   =====   ============ =====  ============  =====   =========== =====   ===========  =====
</TABLE>

------------------------------------
(1)  Amounts  presented  include  adjustments for related  unamortized  deferred
     costs and fees.

                                       4

<PAGE>

         Loan Maturity.  The following table sets forth the contractual maturity
of certain loan categories at December 31, 2005.

<TABLE>
<CAPTION>
                                                                   Due after
                                                Due within        1 through 5         Due after
                                                  1 year             years             5 years            Total
                                              --------------     -------------      -------------     -------------

<S>                                         <C>                <C>                <C>               <C>
Commercial................................    $    7,805,102     $   2,765,286      $     483,093     $  11,053,481
Real estate construction:
   Residential............................         1,174,233                 -                  -         1,174,233
   Commercial.............................        50,704,662        12,645,429          6,806,676        70,156,767
                                              --------------     -------------      -------------     -------------
     Total amount due.....................    $   59,683,997     $  15,410,715      $   7,289,769     $  82,384,481
                                              ==============     =============      =============     =============
</TABLE>

         The  following  table sets forth the dollar  amount of loans in certain
loan categories due after December 31, 2006, which have  predetermined  interest
rates and which have floating or adjustable interest rates.

<TABLE>
<CAPTION>
                                                                                Floating or
                                                         Fixed Rates(1)       Adjustable Rates           Total
                                                         --------------       ----------------           -----

<S>                                                  <C>                    <C>                   <C>
Commercial.........................................    $      3,047,959       $     8,005,522       $    11,053,481
Real estate construction:
   Residential.....................................                   -             1,174,233             1,174,233
   Commercial......................................           3,716,527            66,440,240            70,156,767
                                                       ----------------       ---------------       ---------------
     Total amount due..............................    $      6,764,486       $    75,619,995       $    82,384,481
                                                       ================       ===============       ===============

</TABLE>

(1)  Construction loans are adjustable rate loans, however, due to interest rate
     floors, they have been reclassified as fixed rate loans.

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

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

         Real Estate Development and Construction Loans. The Bank has emphasized
the origination of construction  loans to individuals and real estate developers
in its market area. The advantages of  construction  lending are that the market
is typically less competitive than more standard mortgage

                                       5
<PAGE>

products,  the interest rate typically charged is a variable rate, which permits
the Bank to protect  against sudden changes in its costs of funds,  and the fees
or  "points"  charged by the Bank to its  customers  can be  amortized  over the
shorter term of a construction loan, typically,  one to two years, which permits
the Bank to recognize  income  received over a shorter  period of time. The Bank
from time to time structures  construction  loans in excess of the legal lending
limit of the Bank, with respect to which the Bank sells participation  interests
in the construction loans to other lenders,  while maintaining and servicing the
construction loan.

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

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

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

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

         Construction  financing  is labor  intensive  for the  Bank,  requiring
employees of the Bank to expend substantial time and resources in monitoring and
servicing  each  construction  loan to  completion.  Construction  financing  is
generally  considered to involve a higher degree of risk of loss than  long-term
financing on improved, occupied real estate. Risk of loss on a construction loan
is dependent largely upon the accuracy of the initial estimate of the property's
value  at  completion  of  construction   and   development,   the  accuracy  of
projections,  such as the sales of homes or the  future  leasing  of  commercial
space,  and  the  accuracy  of  the  estimated  cost  (including   interest)  of
construction.  Substantial deviations can occur in such projections.  During the
construction  phase,  a number  of  factors  could  result  in  delays  and cost
overruns.  If the estimate of  construction  costs proves to be inaccurate,  the
Bank may be required to advance funds beyond the amount originally  committed to
permit  completion  of the  development.  If the  estimate of value proves to be
inaccurate, the Bank may be confronted, at or prior to the maturity of the loan,
with a project having a value which is  insufficient  to assure full  repayment.
Also,  a  construction  loan that is in default can cause  problems for the Bank
such as designating  replacement builders for a project,  considering  alternate
uses for the project and site and  handling  any  structural  and  environmental
issues that might arise.

         Commercial  Real Estate Mortgage  Loans.  The Bank originates  mortgage
loans secured by  commercial  real estate.  Such loans are primarily  secured by
office  buildings,  retail  buildings,  warehouses

                                       6

<PAGE>

and  general  purpose  business  space.  Although  terms  may vary,  the  Bank's
commercial  mortgages  generally have  maturities of twenty years,  but re-price
within five years.

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

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

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

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

         Loans to One Borrower.  Federal regulations limit loans to one borrower
in an amount  equal to 15% of  unimpaired  capital and  unimpaired  surplus.  At
December 31, 2005, the Bank's loan to one borrower limit was approximately  $5.9
million  and the Bank had 13  borrowers  with  loan  balances  in excess of $5.0
million.  At December  31, 2005,  the Bank's  largest loan to one borrower was a
loan for construction  and  development,  with a balance of $5.0 million and was
secured by real estate.  This loan is scheduled to be funded in stages after the
houses are sold. At December 31, 2005,  this loan was current and  performing in
accordance with the terms of the loan agreement.

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

Non-Performing and Problem Assets

         Non-Performing Assets. Non-accrual loans are those on which the accrual
of interest has ceased.  Loans are generally placed on non-accrual status if, in
the opinion of management, collection is doubtful, or when principal or interest
is past due 90 days or more unless the  collateral is  considered  sufficient to
cover  principal  and  interest  and the loan is in the  process of  collection.
Interest accrued,  but not collected at the date a loan is placed on non-accrual
status,  is reversed  and  charged  against  interest  income.  Subsequent  cash
receipts are applied either to the outstanding principal or recorded as interest
income,

                                       7

<PAGE>

depending on  management's  assessment  of ultimate  collectability  of
principal  and  interest.  Loans are  returned  to an  accrual  status  when the
borrower's ability to make periodic principal and interest payments has returned
to normal  (i.e.,  brought  current  with  respect to  principal  or interest or
restructured)  and the paying  capacity of the  borrower  and/or the  underlying
collateral is deemed sufficient to cover principal and interest.

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

         The following table sets forth information  regarding non-accrual loans
at the dates indicated.

<TABLE>
<CAPTION>
                                                                                At December 31,
                                                    ----------------------------------------------------------------------
                                                        2005           2004           2003          2002           2001
                                                    -----------    -----------    -----------   -----------    -----------
<S>                                               <C>            <C>            <C>           <C>            <C>
Loans accounted for on a non-accrual basis:
Commercial.......................................   $    50,000    $         -    $         -   $         -    $         -
Real estate construction:
   Residential...................................             -        240,816        289,257       289,000              -
   Commercial....................................             -              -              -             -              -
Real estate mortgage:
   Residential...................................        20,000              -        504,878       742,067        745,000
   Commercial....................................     1,865,000              -              -             -              -
Consumer.........................................             -              -              -             -              -
                                                    -----------    -----------    -----------   -----------    -----------
     Total.......................................     1,935,000        240,816        794,135     1,031,067        745,000
                                                    -----------    -----------    -----------   -----------    -----------
Accruing loans delinquent 90 days or more:
Commercial.......................................             -              -              -             -              -
Real estate construction:
   Residential...................................             -              -              -             -              -
   Commercial....................................             -              -              -             -              -
Real estate mortgage:
   Residential...................................             -         54,859              -             -              -
   Commercial....................................       665,000              -              -        50,000              -
Consumer.........................................             -              -              -             -              -
                                                    -----------    -----------    -----------   -----------    -----------
     Total.......................................       665,000         54,859              -        50,000              -
                                                    -----------    -----------    -----------   -----------    -----------
         Total non-performing loans..............   $ 2,590,000    $   295,675    $   794,135   $ 1,081,067    $   745,000
                                                    ===========    ===========    ===========   ===========    ===========
Total non-performing loans as a
   percentage of net loans.......................        1.01%          0.16%          0.55%         1.15%          1.19%
                                                    ===========    ===========    ===========   ===========    ===========
</TABLE>

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

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

                                       8

<PAGE>

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

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

         At December 31, 2005, the Bank had assets classified as follows:

Special mention.......................................      $        800,411
Substandard...........................................             3,221,945
Doubtful..............................................                20,000
Loss..................................................                 9,440
                                                            ----------------
      Total...........................................      $      4,051,846
                                                            ================

         Foreclosed Real Estate. Real estate acquired by the Bank as a result of
foreclosure or by deed in lieu of foreclosure is classified as real estate owned
until  such  time as it is sold.  When  real  estate  owned is  acquired,  it is
recorded at the lower of the unpaid principal balance of the related loan or its
fair value less disposal  costs.  Any write-down of real estate owned is charged
to  operations.  At December 31, 2005,  the Bank had real estate owned  totaling
$43,936 which is totally reserved.

         Allowance for Losses on Loans and Real Estate  Owned.  It is the policy
of  management to provide for losses on  unidentified  loans in its portfolio in
addition  to  classified  loans.  A  provision  for loan  losses is  charged  to
operations  based on management's  evaluation of the inherent losses that may be
incurred in the Bank's loan  portfolio.  Management also  periodically  performs
valuations of Real Estate Owned and establishes allowances to reduce book values
of the properties to their net realizable values when necessary.

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

                                       9

<PAGE>

         The following table sets forth  information  with respect to the Bank's
allowance for losses on loans at the dates and for the periods indicated.

<TABLE>
<CAPTION>
                                                                            For the Year Ended December 31,
                                                    -------------------------------------------------------------------------------
                                                         2005             2004            2003            2002             2001
                                                    -------------    -------------   -------------   -------------    -------------

<S>                                               <C>              <C>             <C>             <C>              <C>
Balance at beginning of period...................   $   2,620,651    $   2,256,070   $   1,333,000   $     834,483    $     467,484
Charge-offs:
Commercial.......................................               -                -               -               -           (7,000)
Real estate construction:
   Residential...................................               -                -               -               -                -
   Commercial....................................        (227,001)               -               -               -                -
Real estate mortgage:
   Residential...................................               -         (460,743)              -               -                -
   Commercial....................................               -                -               -               -                -
Consumer.........................................               -                -          (1,000)              -                -
                                                    -------------    -------------   -------------   -------------    -------------
     Total charge-offs:..........................        (227,001)        (460,743)         (1,000)              -           (7,000)
                                                    -------------    -------------   -------------   -------------    -------------

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

Net charge-offs..................................        (227,001)        (460,743)              -               -           (7,000)
                                                    -------------    -------------   -------------   -------------    -------------
Provision for loan losses........................       1,180,162          825,324         923,070         498,517          373,999
                                                    -------------    -------------   -------------   -------------    -------------
Balance at end of period.........................   $   3,573,812    $   2,620,651   $   2,256,070   $   1,333,000    $     834,483
                                                    =============    =============   =============   =============    =============
Period-end loans outstanding (net of
   deferred costs/fees)..........................   $ 259,035,088    $ 188,606,990   $ 146,344,331   $  95,095,210    $  63,237,172
                                                    =============    =============   =============   =============    =============
Average loans outstanding........................   $ 223,821,300    $ 154,794,200   $ 120,796,806   $  78,245,329    $  49,878,934
                                                    =============    =============   =============   =============    =============
Allowance as a percentage of period
   end loans.....................................          1.38%            1.39%           1.54%           1.40%            1.32%
                                                    =============    =============   =============   =============    =============
Loans charged off as a percentage of
   average loans outstanding.....................          1.10%            0.30%           0.00%           0.00%            0.01%
                                                    =============    =============   =============   =============    =============
</TABLE>

                                       10

<PAGE>

         Allocation of Allowance for Loan Losses. The following table sets forth
the  allocation of the Bank's  allowance for loan losses by loan category at the
dates indicated.  The portion of the loan loss allowance  allocated to each loan
category does not represent the total available for future losses that may occur
within the loan category as the total loan loss allowance is a valuation reserve
applicable to the entire loan portfolio.

<TABLE>
<CAPTION>

                                                                           At December 31,
                            -------------------------------------------------------------------------------------------------------
                                   2005                  2004                 2003                 2002                2001
                            ------------------   -------------------    ------------------    -----------------   -----------------
                                     Percent of             Percent              Percent of            Percent             Percent
                                      Loans in              of Loans              Loans in             of Loans            of Loans
                                        Each                in Each                 Each               in Each             in Each
                                      Category              Category              Category             Category            Category
                                      to Total              to Total              to Total             to Total            to Total
Type of Loans:              Amount       Loans   Amount        Loans    Amount       Loans    Amount      Loans   Amount      Loans
-------------               ------       -----   ------        -----    ------       -----    ------      -----   ------      -----
<S>                      <C>            <C>  <C>               <C>  <C>             <C>   <C>             <C>  <C>           <C>
Commercial................ $  153,674     4.3% $  133,653        5.1% $  135,364      6.0%  $   98,642      7.4% $  92,628     11.1%
Real estate construction:
   Residential............     17,869     0.5      18,344        0.7      33,841      1.5       18,662      1.4     20,027      2.4
   Commercial.............    968,503    27.1     518,889       19.8     460,238     20.4      239,940     18.0     90,959     10.9
Real estate mortgage:
   Residential............    239,445     6.7     227,997        8.7     277,497     12.3      184,287     13.9    137,690     16.5
   Commercial.............  2,129,992    59.6   1,666,734       63.6   1,297,240     57.5      750,479     56.3    468,979     56.2
Consumer..................     64,329     1.8      55,034        2.1      51,890      2.3       39,990      3.0     24,200      2.9
                           ----------   -----  ----------      -----  ----------    -----   ----------    -----  ---------    -----
     Total Allowance       $3,573,812   100.0% $2,620,651      100.0% $2,256,070    100.0%  $1,333,000    100.0% $ 834,483    100.0%
                           ==========   =====  ==========      =====  ==========    =====   ==========    =====  =========    =====
</TABLE>

                                       11

<PAGE>

Investment Activities

         General.  The  investment  policy of the Bank is  established by senior
management  and  approved  by the Board of  Directors.  It is based on asset and
liability  management  goals and is  designed  to  provide a  portfolio  of high
quality  investments that foster interest income within acceptable interest rate
risk and  liquidity  guidelines.  In  accordance  with  SFAS No.  115,  the Bank
classifies  its  portfolio of investment  securities as "available  for sale" or
"held to maturity." At December 31, 2005, the Bank's  investment  policy allowed
investments in instruments  such as: (i) U.S.  Treasury  obligations,  (ii) U.S.
government  agency  or  government-sponsored  agency  obligations,  (iii)  local
municipal  obligations,  (iv)  mortgage-backed  securities,  (v) certificates of
deposit,  and (vi) investment grade corporate bonds, trust preferred  securities
and mutual funds. The Board of Directors may authorize additional investments.

         Composition of Investment  Securities  Portfolio.  The following  table
sets forth the carrying value of the Bank's investment  securities  portfolio at
the dates indicated. For additional information,  see Note 3 of the Notes to the
Consolidated Financial Statements.

<TABLE>
<CAPTION>

                                                                                   At December 31,
                                                                 --------------------------------------------------
                                                                       2005              2004              2003
                                                                 --------------    --------------    --------------
<S>                                                             <C>               <C>               <C>
Securities Held to Maturity:
---------------------------
   Municipals.................................................   $    2,405,841    $      547,632    $      548,999
   Corporate trust preferred securities.......................                -                 -           250,000
                                                                 --------------    --------------    --------------
     Total securities held to maturity........................        2,405,841           547,632           798,999
                                                                 --------------    --------------    --------------
Securities Available for Sale:
-----------------------------
   U.S. government agency securities..........................                -                 -                 -
   U.S. government-sponsored entity securities................        6,202,390         8,670,230         4,255,820
   Municipals.................................................                -                 -                 -
   Mortgage-backed securities.................................        9,004,256        12,176,244         6,931,181
   Mutual funds...............................................                -         3,196,328         3,136,034
   Corporate & trust preferred securities.....................        6,316,298                 -                 -
   Stock......................................................          500,000                 -                 -
                                                                 --------------    --------------    --------------
     Total securities available for sale......................       22,022,944        24,042,802        14,323,035
                                                                 --------------    --------------    --------------
       Total..................................................   $   24,428,785    $   24,590,434    $   15,122,034
                                                                 ==============    ==============    ==============
</TABLE>

                                       12

<PAGE>

         Investment  Portfolio  Maturities.   The  following  table  sets  forth
information regarding the scheduled maturities,  carrying values, estimated fair
values,  and  weighted  average  yields  for the Bank's  investments  securities
portfolio at December 31, 2005 by contractual maturity. The following table does
not take into  consideration the effects of scheduled  repayments or the effects
of possible prepayments.

<TABLE>
<CAPTION>
                                                                At December 31,
                           ---------------------------------------------------------------------------------------------------------
                           Within One Year   One to Five Years Five to Ten Years More than Ten Years   Total Investment Securities
                           ---------------   ----------------- ----------------- ------------------- -------------------------------
                          Carrying Average   Carrying  Average Carrying Average    Carrying Average  Carrying   Average
                           Value    Yield     Value     Yield   Value    Yield       Value   Yield     Value     Yield  Market Value
                           -----    -----     -----     -----   -----    -----       -----   -----     -----     -----  ------------
<S>                        <C>       <C>   <C>          <C>    <C>       <C>   <C>          <C>    <C>          <C>    <C>
Securities Held to Maturity:
---------------------------
   Municipals............. $    -       -% $  538,055    2.62%  $    -       -% $ 1,867,786  4.33%  $ 2,405,841  3.95%  $ 2,322,985
                           ------   -----   ---------    ----   ------   -----  -----------  ----   -----------  ----   -----------
     Total securities
     held to maturity.....      -       -%    538,055    2.62%       -       -%   1,867,786  4.33%    2,405,841  3.95%    2,322,985
                           ------   -----   ---------    ----   ------   -----  -----------  ----   -----------  ----   -----------

Securities Available for Sale:
------------------------------
   U.S. government
   agency securities......      -       -%  2,484,490    4.49%       -       -%   3,717,900  4.46%    6,202,390  4.47%    6,202,390
   U.S. government-
   sponsored entity
   securities.............      -       -%          -       -%       -       -%           -     -%            -     -%            -
   Municipals.............      -       -%          -       -%       -       -%   9,004,256  4.85%    9,004,256  4.85%    9,004,256
   Mortgage-backed
   securities.............      -       -%    513,200    5.75%       -       -%   5,803,098  5.61%    6,316,298  5.60%    6,316,298
   Mutual funds...........      -       -%          -       -%       -       -%     500,000  0.00%      500,000  0.00%      500,000
     Total securities
     available for sale...      -       -%  2,997,690    4.70%       -       -%  19,025,254  4.90%   22,022,944  4.86%   22,022,944
                           ------   -----   ---------    ----   ------   -----  -----------  ----   -----------  ----   -----------
       Total..............      -       -%  3,535,745    4.94%       -       -% $20,893,040  4.81%  $24,428,785  4.77%  $24,345,929
                           ======   =====   =========    ====   ======   =====  ===========  ====   ===========  ====   ===========
</TABLE>

                                       13

<PAGE>

Sources of Funds

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

         Deposits.  The Bank offers individuals and businesses a wide variety of
accounts,  including  checking,  savings,  money  market  accounts,   individual
retirement accounts and certificates of deposit. Deposits are obtained primarily
from communities that the Bank serves,  however, the Bank held brokered deposits
of $67  million and $39  million at  December  31, 2005 and 2004,  respectively.
Brokered  deposits are a more volatile  source of funding than core deposits and
do not increase the deposit franchise of the Bank. In a rising rate environment,
the Bank may be unwilling  or unable to pay a  competitive  rate.  To the extent
that such  deposits  do not remain  with the Bank,  they may need to be replaced
with  borrowings  which could  increase the Bank's cost of funds and  negatively
impact its interest rate spread, financial condition and results of operation.

         The following tables detail the average amount,  the average rate paid,
and the  percentage of each category to total deposits for the three years ended
December 31, 2005.

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

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

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

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

                                       14

<PAGE>

<TABLE>
<CAPTION>
                                                                  At December 31, 2003
                                               ----------------------------------------------------------
                                                     Daily
                                                    Average              Average              Percent
                                                    Balance               Rate                of Total
                                               --------------         -------------        --------------
<S>                                          <C>                        <C>                   <C>
NOW and money market
   savings deposits........................    $   24,351,546             1.6%                  19.8%
Regular savings deposits...................        22,104,323             2.2%                  18.0%
Time deposits..............................        67,298,382             3.2%                  54.7%
                                               --------------                                  -----
     Total interest-bearing deposits.......       113,754,251                                   92.5%

Non interest-bearing demand deposits.......         9,270,022                                    7.5%
                                               --------------                                  -----
     Total deposits........................    $  123,024,273                                  100.0%
                                               ==============                                  =====
</TABLE>

         The following table indicates the amount of the Bank's  certificates of
deposit of $100,000 or more by time remaining  until maturity as of December 31,
2005.

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

Within three months..........................       $   21,364,066
Three through six months.....................           22,183,181
Six through twelve months....................           14,331,938
Over twelve months...........................           37,402,940
                                                    --------------
     Total...................................       $   95,282,066
                                                    ==============

         Borrowings.   Borrowings  consist  of  reverse  repurchase  agreements,
subordinated  debt  and  advances  from  the FHLB  and  other  parties.  Reverse
repurchase  agreements  were priced at origination and are payable in four years
or  less.  Borrowings  from  FHLB  outstanding  during  2005,  2004 and 2003 had
maturities of five years or less and cannot be prepaid without penalty.

         The  following  table  sets  forth  information  regarding  the  Bank's
borrowings:

<TABLE>
<CAPTION>
                                                                              December 31,
                                                           ------------------------------------------------
                                                                 2005             2004             2003
                                                           --------------   --------------   --------------
<S>                                                      <C>              <C>              <C>
Amount outstanding at year end.........................    $   35,966,860   $   20,378,726   $   10,340,123
Weighted average interest rates at year end............              4.8%             2.8%             1.8%
Maximum outstanding at any month end...................    $   35,966,860   $   20,378,726   $   14,195,110
Average outstanding....................................    $   28,172,795   $   10,721,726   $    7,827,679
Weighted average interest rate during the year.........              3.1%             2.2%             2.1%
</TABLE>

Subsidiary Activity

         The largest  subsidiary  of the  Company is the Bank.  The Bank has one
subsidiary,  Parke Capital Markets,  a corporation,  which was formed in 2001 to
generate fee income from capital  markets  financing  activities,  which include
term financings.

Personnel

         At  December  31,  2005,  the Bank had 30  full-time  and 10  part-time
employees.

                                       15

<PAGE>

Regulation

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

         Holding Company Regulation

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

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

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

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

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

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

                                       16

<PAGE>

Regulation of the Bank

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

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

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

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

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

         The minimum ratio of total capital to risk-weighted  assets  (including
certain off-balance sheet activities,  such as standby letters of credit) is 8%.
At least 4% of the total capital is required to be "Tier I Capital,"  consisting
of common  shareholders'  equity and qualifying  preferred  stock,  less certain
goodwill items and other  intangible  assets.  The remainder ("Tier II Capital")
may consist of (a) the allowance for loan losses of up to 1.25% of risk-weighted
assets,   (b)  excess  of  qualifying   preferred   stock,  (c)  hybrid  capital
instruments,  (d) perpetual debt, (e) mandatory convertible securities,  and (f)
qualifying subordinated debt and intermediate-term  preferred stock up to 50% of
Tier I capital.  Total  capital  is the sum of Tier I and Tier II  capital  less
reciprocal  holdings  of  other  banking  organizations,   capital  instruments,
investments  in   unconsolidated   subsidiaries  and  any  other  deductions  as
determined by the FDIC  (determined  on a  case-by-case  basis or as a matter of
policy after formal rule-making).

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

                                       17

<PAGE>

         At  December  31,  2005,  the  Company  and the Bank had the  requisite
capital levels to qualify as "well capitalized."

Item 1A. Risk Factors

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

A  significant  amount of the Bank's  business  is  concentrated  in real estate
development and construction lending.

         At December 31, 2005,  approximately  27.5% of our loans are commercial
and  residential  real estate  development  and  construction  loans,  which are
secured by the real estate  under  development.  Construction  lending  involves
extensive  risks.  In  addition  to the risk that the market  values of the real
estate securing these loans may deteriorate, these loans are also subject to the
development  risks that the projects will not be completed in a timely manner or
according to original  specifications.  Real estate development and construction
projects  that are not  completed  in a timely  manner or  according to original
specifications  are  generally  less  marketable  than  projects  that are fully
developed,  and the loans  underlying  such  projects  may be subject to greater
losses  in the event  that the real  estate  collateral  becomes  the  source of
repayment.   Construction   projects  are  commonly   underwritten   based  upon
projections,  such as the sales of homes or future leasing of commercial spaces,
and substantial deviations from such projections can occur. Construction lending
is also  labor  intensive  for the  Bank,  requiring  Bank  employees  to expend
substantial  time and resources in monitoring  and servicing  each  construction
loan to  completion.  In addition,  a  construction  loan that is in default can
create  problems for the Bank,  such as designating  replacement  builders for a
project,  considering  alternate users for the project and site and handling any
structural or environmental issues that might arise. Such problems and the risks
inherent  in  construction  lending  may have a material  adverse  effect on the
Company's earnings and overall financial condition.

Most of the Bank's  loans are  secured,  in whole or in part,  with real  estate
collateral.

         In addition to the financial strength and cash flow  characteristics of
the  borrower  in each case,  the Bank often  secures its loans with real estate
collateral.  At December 31, 2005,  approximately  95.8% of the Bank's loans had
real estate as a primary,  secondary or tertiary  component of  collateral.  The
real estate collateral in each case provides an alternate source of repayment in
the event of default by the borrower,  but such  collateral  may  deteriorate in
value  during the time the credit is  extended.  If we are required to liquidate
the collateral  securing a loan during a period of reduced real estate values to
satisfy the debt, our earnings and capital could be adversely affected.

Some of the Bank's assets are classified as non-performing  assets that may lose
further value.

         The Bank has  non-performing  assets,  which at this time only  include
non-accruing loans. At December 31, 2005, the Bank's  non-performing  loans were
1.4% of outstanding net loans.  There is a possibility  that the Bank's earnings
could be reduced in the event that the eventual  values of these  non-performing
assets are or become less than the values that we have assigned to them.

The Bank may experience loan losses in excess of its allowance.

         The risk of credit  losses on loans  varies with,  among other  things,
general economic  conditions,  the type of loan being made, the creditworthiness
of the borrower  over the term of the loan and, in the case of a  collateralized
loan,  the value and  marketability  of the  collateral for the loan. The Bank's

                                       18

<PAGE>

management  maintains  an  allowance  for loan losses  based  upon,  among other
things,  historical experience, an evaluation of economic conditions and regular
reviews of delinquencies  and loan portfolio  quality.  Based upon such factors,
management   makes  various   assumptions   and  judgments  about  the  ultimate
collectability  of the loan  portfolio and provides an allowance for loan losses
based upon a percentage of the outstanding  balances and for specific loans when
their  ultimate  collectability  is  considered  questionable.   If  the  Bank's
management's  assumptions  and judgments prove to be incorrect and the allowance
for loan losses is inadequate to absorb future losses, or if the bank regulatory
authorities require the Bank to increase the allowance for loan losses as a part
of  their  examination  process,  the  Bank's  earnings  and  capital  could  be
significantly and adversely affected.

         As  of  December  31,  2005,   the   allowance   for  loan  losses  was
approximately $3.6 million,  which represented 1.4% of outstanding net loans. At
such date, we had  non-accruing  loans totaling $1.9 million.  The Bank actively
manages its non-accruing loans in an effort to minimize credit losses.  Although
the Bank's  management  believes that its allowance for loan losses is adequate,
there can be no assurance  that the  allowance  will prove  sufficient  to cover
future  loan  losses.  Further,  although  the Bank's  management  uses the best
information  available to make  determinations with respect to the allowance for
loan losses,  future adjustments may be necessary if economic  conditions differ
substantially  from the  assumptions  used or  adverse  developments  arise with
respect to the Bank's  non-performing or performing loans. Material additions to
the Bank's  allowance  for loan losses  would result in a decrease in the Bank's
net  income  and  capital,  and  could  have a  material  adverse  effect on the
Company's financial condition and results of operations.

The Bank operates in a competitive market.

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

The Bank is dependent on certain key personnel.

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

                                       19

<PAGE>

Changes in interest rates affect the Company's profitability and assets.

         The Company derives its income mainly from the difference, or "spread,"
between  the  interest  earned  by the  Bank  on  loans,  securities  and  other
interest-earning  assets,  and  the  interest  paid  by the  Bank  on  deposits,
borrowings  and other  interest-bearing  liabilities.  If more  interest-earning
assets than  interest-bearing  liabilities re-price or mature during a time when
interest  rates are  declining,  then the Company's  net interest  income may be
reduced.  If more  interest-bearing  liabilities  than  interest-earning  assets
re-price  or mature  during a time when  interest  rates  are  rising,  then the
Company's net interest  income may be reduced.  At December 31, 2005, the Bank's
total  interest-bearing  liabilities  maturing  or  re-pricing  within  one year
exceeded  interest-earning  assets  maturing or re-pricing  during the same time
period  by  $27.4  million.  As a  result,  the  cost  on  its  interest-bearing
liabilities should adjust to changes in interest rates at a faster rate than the
yield of its interest-earning assets, and its net interest income may be reduced
when interest rates increase significantly for this period of time.

The Bank's management controls a significant percentage of our common stock.

         At March 22, 2006, the Company's and the Bank's directors and executive
officers  beneficially  owned  1,245,161  shares  or  exercisable  warrants  and
options, or 48.8%, of our common stock. Because of the large percentage of stock
held by the Company's and the Bank's  directors  and executive  officers,  these
persons  could  influence  the outcome of any matter  submitted to a vote of our
shareholders.

Item 1B. Unresolved Staff Comments

         None.

Item 2.  Description of Property

         (a)      Properties.

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

         The  Bank  also  conducts  business  from  a  full-service   office  in
Northfield, New Jersey, a full-service office in Washington Township, Gloucester
County,  New Jersey and a loan production office in Philadelphia,  Pennsylvania.
These  offices were opened by the Bank in September  2002,  February  2003,  and
February 2004 respectively. The Northfield office and loan production office are
leased. The Washington Township office was purchased in February 2003.

         Management  considers the physical  condition of all offices to be good
and adequate for the conduct of the Bank's  business.  At December 31, 2005, net
property and equipment totaled approximately $3.1 million.

         (b)      Investment Policies.

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

                                       20

<PAGE>

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

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

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

     (c) Description of Real Estate and Operating Data.

         Not Applicable.

Item 3. Legal Proceedings

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

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

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

         Other than the  foregoing,  at December 31, 2005, the Company was not a
party to any material legal proceedings.

Item 4. Submission of Matters to a Vote of Security Holders

         On  December  20,  2005,   the  Company  held  a  special   meeting  of
shareholders  to approve the Parke Bancorp,  Inc. 2005 Stock Option Plan,  which
was approved with 1,173,136 votes cast for approval,  137,540 votes cast against
approval and 27,670 abstentions.

                                       21

<PAGE>

                                     PART II

Item 5. Market for Common Equity, Related Shareholder Matters and Small Business
        Issuer Purchases of Equity Securities

         The information  contained under the section  captioned  "Market Prices
and Dividends" in the Company's  Proxy  Statement for the 2005 Annual Meeting of
Shareholders (the "Proxy Statement") is incorporated herein by reference.

Item 6. Selected Financial Data

         The  information   contained  under  the  section  captioned  "Selected
Financial  Data" in the Company's  2005 Annual  Report (the "Annual  Report") is
incorporated herein by reference.

Item 7. Management's Discussion and Analysis or Plan of Operation

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

Item 7A. Quantitative and Qualitative Disclosures About Market Risk

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

Item 8. Financial Statements and Supplementary Data

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

Item 9.  Changes  in  and  Disagreements  With  Accountants  on  Accounting  and
         Financial Disclosure

         None.

Item 9A. Controls and Procedures

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

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

                                       22

<PAGE>

Item 9B.      Other Information

         Not applicable.

                                       23
<PAGE>

                                    PART III

Item 10. Directors and Executive Officers of the Registrant

         The information  contained under the headings "Section 16(a) Beneficial
Ownership Reporting  Compliance" and "Proposal I - Election of Directors" in the
Proxy Statement is incorporated herein by reference.

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

Item 11. Executive Compensation

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

Item 12.  Security  Ownership of Certain  Beneficial  Owners and  Management and
     Related Stockholder Matters

         (a)      Security Ownership of Certain Beneficial Owners

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

         (b)      Security Ownership of Management

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

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

         (d) Securities Authorized for Issuance Under Equity Compensation Plans

         Set forth below is  information as of December 31, 2005 with respect to
compensation   plans  under  which  equity  securities  of  the  Registrant  are
authorized for issuance.

                                       24

<PAGE>

<TABLE>
<CAPTION>
                      EQUITY COMPENSATION PLAN INFORMATION

                                                 (a)                        (b)                       (c)

                                                                                              Number of securities
                                                                                             remaining available for
                                                                                              future issuance under
                                                                                               equity compensation
                                        Number of securities to       Weighted-average          plans (excluding
                                        be issued upon exercise      exercise price of       securities reflected in
                                        of outstanding options      outstanding options            column (a))
                                        ----------------------      -------------------            -----------
<S>                                           <C>                        <C>                       <C>
Equity compensation plans approved
     by shareholders.............               275,807                    $15.87                    138,073
                                                -------                    ------                    -------

     TOTAL.......................               275,807                    $15.87                    138,073
                                                =======                    ======                    =======
</TABLE>

Item 13. Certain Relationships and Related Transactions

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

Item 14. Principal Accountant Fees and Services

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

                                     PART IV

Item 15. Exhibits and Financial Statement Schedules

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

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

               o    Report of Independent Registered Public Accounting Firm

               o    Consolidated Balance Sheets as of December 31, 2005 and 2004

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

               o    Consolidated  Statements  of  Stockholders'  Equity  for the
                    Years Ended December 31, 2005, 2004 and 2003

                                       25

<PAGE>

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

               o    Notes to Consolidated Financial Statements

          2.   Schedules omitted as they are not applicable.

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

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

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

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

                                       26

<PAGE>

                                   SIGNATURES

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

                                     PARKE BANCORP, INC.



Dated: March 29, 2006                By:    /s/Vito S. Pantilione
                                            ----------------------------------
                                            Vito S. Pantilione
                                            President, Chief Executive Officer
                                            and Director


         Pursuant to the  requirement  of the  Securities  Exchange Act of 1934,
this  Report has been  signed  below by the  following  persons on behalf of the
Registrant and in the capacities and on March 29, 2006.

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

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

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

/s/Ernest D. Huggard
-----------------------------------------------
Ernest D. Huggard
Senior Vice President and
Chief Financial Officer
(Principal Financial and Accounting Officer)
</TABLE>