|SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549


FORM 10-Q


[X]      
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(D)
OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2003



PARK BANCORP, INC. (Exact name of registrant as specified in its charter)
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|Delaware(State of incorporation)              
|----------------------------------------------
|36-4082530(I.R.S. Employer
Identification No.)

|5400 South Pulaski
Road, Chicago, Illinois
(Address of Principal Executive Offices)


60632
(ZIP Code)


(773) 582-8616
(Registrant's telephone number, including area code)



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 whether the
Registrant is an accelerated filer (as defined in Rule 12 b-2 of the Act).



Yes [    ]  No
[ X ]



Indicate the number of
shares outstanding of each of the issuer's classes of common stock as of the
latest practicable date.


As of October 31, 2003, the
Registrant had outstanding 1,154,995 shares of common stock.
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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|PARK BANCORP, INC.


Form 10-Q Quarterly Report


Index
|-------------------------------------------------------

|                               |    | Page                                                           
|------------------------------ | -- | ---------------------------------------------------------------
|                               |    |                                                                
|PART I  Financial Information
|Item 1                         |    | Financial Statements                                           
|Item 2                         |    | Management's Discussion and Analysis of Financial Condition and
|                               |    | Results of Operations                                          
|Item 3                         |    | Quantitative and Qualitative Disclosures About Market Risk     
|Item 4                         |    | Controls and Procedures                                        
|PART II  Other Information   
|Item 1                         |    | Legal Proceedings                                              
|Item 2                         |    | Changes in Securities                                          
|Item 3                         |    | Defaults Upon Senior Securities                                
|Item 4                         |    | Submission of Matters to a Vote of Securities Holders          
|Item 5                         |    | Other Information                                              
|Item 6                         |    | Exhibits and Reports on Form 8-K                               
|SIGNATURES                     | 13 |                                                                

|SAFE HARBOR
STATEMENT UNDER THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995


This report contains certain
forward-looking statements within the meaning of Section 27a of the Securities Act of
1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Park
Bancorp, Inc. (the Company) intends such forward-looking statements to be covered by the
safe harbor provisions for forward-looking statements contained in the Private Securities
Reform Act of 1995 as amended and is including this statement for purposes of these safe
harbor provisions. Forward-looking statements, which are based on certain assumptions and
describe future plans, strategies and expectations of the Company, are generally
identifiable by use of the words such as believe, expect,
intend, anticipate, estimate, project, or
similar expressions. The Companys ability to predict results or the actual effect of
future plans or strategies is inherently uncertain. Factors that could have a material
adverse effect on the operations and future prospects of the Company and its wholly owned
subsidiaries include, but are not limited to, changes in: interest rates; the economic
health of the local real estate market; general economic conditions;
legislative/regulatory provisions; monetary and fiscal policies of the U.S. Government,
including policies of the U.S. Treasury and the Federal Reserve Board; the quality or
composition of the loan or investment portfolios; demand for loan products; deposit flows;
competition; demand for financial services in the Companys market area; and
accounting principles, policies, and guidelines. These risks and uncertainties should be
considered in evaluating forward-looking statements and undue reliance should not be
placed on such statements
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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# PART IFINANCIAL INFORMATION

# ITEM 1.   FINANCIAL STATEMENTS

# Park Bancorp, Inc. and Subsidiaries
Consolidated Statements of Financial Condition
(In Thousands of dollars, except share data)
(Unaudited)

|                                                                  | September 30,2003 |  | December 31,2002 |        
|----------------------------------------------------------------- | ----------------- |  | ---------------- | -------
|ASSETS                                                            |                   |  |                  |        
|Cash and due from banks                                           |                   |  | $                | 2,418  
|Federal funds sold                                                |                   |  |                  | 893    
|Interest-bearing deposit accounts in other financial institutions |                   |  |                  | 2,974  
|                                                                  |                   |  |                  |        
|Total cash and cash equivalents                                   |                   |  |                  | 6,285  
|Time deposits with other financial institutions                   |                   |  |                  | 1,143  
|Securities available-for-sale                                     |                   |  |                  | 75,124 
|Loans receivable, net                                             |                   |  |                  | 155,400
|Federal Home Loan Bank stock                                      |                   |  |                  | 11,907 
|Premises and equipment, net                                       |                   |  |                  | 3,159  
|Accrued interest receivable                                       |                   |  |                  | 1,149  
|Bank-owned life insurance                                         |                   |  |                  | 5,570  
|Other assets                                                      |                   |  |                  | 1,186  
|                                                                  |                   |  |                  |        
|Total assets                                                      |                   |  | $                | 260,923
|                                                                  |                   |  |                  |        
|LIABILITIES AND STOCKHOLDERS' EQUITY                              |                   | 
|                                                                  |                   | 
|Liabilities                                                       |                   | 
|Deposits                                                          |                   | 
|                                                                  |                   | 
|Non-interest-bearing                                              |                   |  | $                | 5,471  
|Interest-bearing                                                  |                   |  |                  | 167,972
|                                                                  |                   |  |                  |        
|Total deposits                                                    |                   |  |                  | 173,443
|Securities sold under repurchase agreements                       |                   |  |                  | 8,217  
|Advances from borrowers for taxes and insurance                   |                   |  |                  | 1,019  
|Federal Home Loan Bank advances                                   |                   |  |                  | 47,513 
|Accrued interest payable                                          |                   |  |                  | 193    
|Other liabilities                                                 |                   |  |                  | 1,391  
|                                                                  |                   |  |                  |        
|Total liabilities                                                 |                   |  |                  | 231,776
|Stockholders' Equity                                              |                   | 
|Preferred stock, $.01 par value per share, authorized            
|1,000,000 shares; none issued and outstanding                     |                   |  |                  |       
|Common stock, $.01 par value per share, authorized                |                   | 
|9,000,000 shares;  issued 2,733,138 and 2,719,131 shares          |                   |  |                  | 27     
|Additional paid-in capital                                        |                   |  |                  | 27,446 
|Retained earnings                                                 |                   |  |                  | 28,489 
|Treasury stock, 1,578,143 and 1,493,836 shares, at cost           |                   |  |                  | (26,655
|Unearned ESOP shares                                              |                   |  |                  | (869   
|Accumulated other comprehensive income                            |                   |  |                  | 709    
|                                                                  |                   |  |                  |        
|Total stockholders' equity                                        |                   |  |                  | 29,147 
|                                                                  |                   |  |                  |        
|Total liabilities and stockholders' equity                        |                   |  | $                | 260,923
|                                                                  |                   |  |                  |        
|                                                                  |                   | 

See notes to consolidated financial statements.

1

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# Park Bancorp, Inc. and Subsidiaries
Consolidated Statements of Income
(In Thousands of dollars, except share data)
(Unaudited)

|                                               | Three MonthsEnded September 30, |  | Nine MonthsEnded September 30, |      
|---------------------------------------------- | ------------------------------- |  | ------------------------------ | -----
|
|Interest income                                |                                 |  |                                |      
|Loans receivable                               |                                 |  | $                              | 2,604
|Securities                                     |                                 |  |                                | 780  
|Other interest-bearing deposits                |                                 |  |                                | 49   
|                                               |                                 |  |                                |      
|Total                                          |                                 |  |                                | 3,433
|Interest expense                               |                                 | 
|Deposits                                       |                                 |  |                                | 925  
|Federal Home Loan Bank advances                |                                 | 
|and other borrowings                           |                                 |  |                                | 534  
|                                               |                                 |  |                                |      
|Total                                          |                                 |  |                                | 1,459
|                                               |                                 |  |                                |      
|Net interest income                            |                                 |  |                                | 1,974
|Provision for loan losses                      |                                 |  |                                |     
|                                               |                                 |  |                                |      
|Net interest income after provision for        |                                 | 
|loan losses                                    |                                 |  |                                | 1,974
|Noninterest income                             |                                 | 
|Gain on sale of real estate held for expansion |                                 |  |                                |     
|Gain on sale of securities available-for-sale  |                                 |  |                                | 65   
|Service fee income                             |                                 |  |                                | 105  
|Earnings on bank-owned life insurance          |                                 |  |                                | 72   
|Other operating income                         |                                 |  |                                | 132  
|                                               |                                 |  |                                |      
|Total noninterest income                       |                                 |  |                                | 374  
|Noninterest expense                            |                                 | 
|Compensation and benefits                      |                                 |  |                                | 830  
|Occupancy and equipment                        |                                 |  |                                | 260  
|Other operating expenses                       |                                 |  |                                | 217  
|                                               |                                 |  |                                |      
|Total noninterest expense                      |                                 |  |                                | 1,307
|                                               |                                 |  |                                |      
|Income before income taxes                     |                                 |  |                                | 1,041
|Income tax expense                             |                                 |  |                                | 349  
|                                               |                                 |  |                                |      
|Net income                                     |                                 |  | $                              | 692  
|                                               |                                 |  |                                |      
|Basic earnings per share                       |                                 |  | $                              | .64  
|Diluted earnings per share                     |                                 |  | $                              | .59  
|Comprehensive income                           |                                 |  | $                              | 416  
|                                               |                                 |  |                                |      
|                                               |                                 |  |                                |      

See notes to consolidated financial statements.

2

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# Park Bancorp, Inc. and Subsidiaries
Consolidated Statements of Cash Flows
(In thousands of dollars)
(Unaudited)

|                                                                            | Nine Months EndedSeptember 30,
|--------------------------------------------------------------------------- | ------------------------------
|
|CASH FLOWS FROM OPERATING ACTIVITIES                                        |                               
|Net income                                                                  |                               
|Adjustments to reconcile net income to net cash from                        |                               
|operating activities                                                        |                               
|Net premium amortization on securities                                      |                               
|Gain on sale of securities available-for-sale                               |                               
|Gain on sale of real estate held for expansion                              |                               
|Earnings on bank-owned life insurance                                       |                               
|Provision for loan losses                                                   |                               
|Depreciation                                                                |                               
|ESOP compensation expense                                                   |                               
|Federal Home Loan Bank stock dividends                                      |                               
|Net change in:                                                              |                               
|Accrued interest receivable                                                 |                               
|Accrued interest payable                                                    |                               
|Other assets                                                                |                               
|Other liabilities                                                           |                               
|                                                                            |                               
|Net cash from operating activities                                          |                               
|CASH FLOWS FROM INVESTING ACTIVITIES                                        |                               
|Purchase of securities available-for-sale                                   |                               
|Proceeds from sales, calls, and maturities of securities available-for-sale |                               
|Principal repayments on mortgage-backed securities                          |                               
|Net increase in loans                                                       |                               
|Proceeds from sale of real estate held for expansion                        |                               
|Purchase of Federal Home Loan Bank stock                                    |                               
|Purchase of premises and equipment                                          |                               
|                                                                            |                               
|Net cash from investing activities                                          |                               
|CASH FLOWS FROM FINANCING ACTIVITIES                                        |                               
|Net change in deposits                                                      |                               
|Net change in repurchase agreements                                         |                               
|Net change in advances from borrowers for taxes and insurance               |                               
|Proceeds from in Federal Home Loan Bank advances                            |                               
|Repayments of Federal Home Loan Bank advances                               |                               
|Dividends paid                                                              |                               
|Stock options exercised                                                     |                               
|Purchase of treasury stock                                                  |                               
|                                                                            |                               
|Net cash from financing activities                                          |                               
|                                                                            |                               
|Net change in cash and cash equivalents                                     |                               
|Cash and cash equivalents at beginning of period                            |                               
|                                                                            |                               
|Cash and cash equivalents at end of period                                  |                               
|                                                                            |                               

See notes to consolidated financial statements.

3

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# Park Bancorp, Inc.
Consolidated Statements of Stockholders' Equity
Nine Months Ended September 30, 2003 and 2002
(In thousands of dollars, except share data)
(Unaudited)

|                                            | CommonStock |  | AdditionalPaid-inCapital |    | RetainedEarnings |   | UnearnedESOPShares |  | TreasuryStock |        | AccumulatedOtherCompre-hensiveIncome (Loss) |   | TotalStock-holders'Equity |  
|------------------------------------------- | ----------- |  | ------------------------ | -- | ---------------- | - | ------------------ |  | ------------- | ------ | ------------------------------------------- | - | ------------------------- | -
|2002                                        |             |  |                          |    |                  |   |                    |  |               |        |                                             |   |                           |  
|Balance at January 1, 2002                  |             |  | $                        | 27 |                  | $ | 26,600             |  | $             | 25,845 |                                             | $ | (1,131                    | )
|Comprehensive income                        |             | 
|Net income                                  |             |  |                          |   |                  |   |                   |  |               | 1,605  |                                             |   |                          |  
|Change in fair value of securities         
|available-for-sale, net of reclassification
|and tax effects                             |             |  |                          |   |                  |   |                   |  |               |       |                                             |   |                          |  
|                                            |             |  |                          |    |                  |   |                    | 
|Total comprehensive income                  |             |  |                          |    |                  |   |                    |  |               |        |                                             |   |                           |  
|Exercise of 17,290 stock options            |             |  |                          |   |                  |   | 272                |  |               |       |                                             |   |                          |  
|Purchase of 18,200 shares of treasury stock |             |  |                          |   |                  |   |                   |  |               |       |                                             |   |                          |  
|Dividends declared ($.36 per share)         |             |  |                          |   |                  |   |                   |  |               | (436   | )                                           |   |                          |  
|ESOP shares earned                          |             |  |                          |   |                  |   | 140                |  |               |       |                                             |   | 114                       |  
|                                            |             |  |                          |    |                  |   |                    |  |               |        |                                             |   |                           |  
|Balance at September 30, 2002               |             |  | $                        | 27 |                  | $ | 27,012             |  | $             | 27,014 |                                             | $ | (1,017                    | )
|                                            |             |  |                          |    |                  |   |                    |  |               |        |                                             |   |                           |  
|2003                                        |             |  |                          |    |                 
|Balance at January 1, 2003                  |             |  | $                        | 27 |                  | $ | 27,050             |  | $             | 27,407 |                                             | $ | (979                      | )
|Comprehensive income                        |             | 
|Net income                                  |             |  |                          |   |                  |   |                    |  |               | 1,576  |                                             |   |                          |  
|Change in fair value of securities          |             | 
|available-for-sale, net of reclassification |             | 
|and tax effects                             |             |  |                          |   |                  |   |                   |  |               |       |                                             |   |                          |  
|                                            |             |  |                          |    |                  |   |                    | 
|Total comprehensive income                  |             |  |                          |    |                  |   |                    |  |               |        |                                             |   |                           |  
|Exercise of 14,007 stock options            |             |  |                          |   |                  |   | 221                |  |               |       |                                             |   |                          |  
|Purchase of 84,307 shares of treasury stock |             |  |                          |   |                  |   |                   |  |               |       |                                             |   |                          |  
|Dividends declared ($.45 per share)         |             |  |                          |   |                  |   |                   |  |               | (494   | )                                           |   |                          |  
|ESOP shares earned                          |             |  |                          |   |                  |   | 175                |  |               |       |                                             |   | 110                       |  
|                                            |             |  |                          |    |                  |   |                    |  |               |        |                                             |   |                           |  
|Balance at September 30, 2003               |             |  | $                        | 27 |                  | $ | 27,446             |  | $             | 28,489 |                                             | $ | (869                      | )
|                                            |             |  |                          |    |                  |   |                    |  |               |        |                                             |   |                           |  

See notes to consolidated financial statements.

4

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PARK BANCORP, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
SEPTEMBER 30, 2003
(table amounts in thousands of dollars, except share data)

Note 1  Basis of Presentation

The accompanying unaudited
consolidated financial statements include the accounts of Park Bancorp, Inc. (the Company)
and its wholly-owned subsidiaries, Park Federal Savings Bank (the Bank) and PBI
Development Company (PBI), and the Banks subsidiaries, GPS Company and GPS
Development Company (GPS), as of September 30, 2003 and December 31, 2002 and for the
nine-month and three-month periods ended September 30, 2003 and 2002. Significant
intercompany accounts and transactions have been eliminated in consolidation.

The accompanying unaudited interim
consolidated financial statements have been prepared pursuant to the rules and regulations
for reporting on Form 10-Q. Accordingly, certain disclosures required by generally
accepted accounting principles are not included herein. These interim statements should be
read in conjunction with the consolidated financial statements and notes thereto included
in the Companys 2002 Annual Report on Form 10-K filed with the Securities and
Exchange Commission. The December 31, 2002 balance sheet presented herein has been derived
from the audited financial statements included in the Companys 2002 Annual Report on
Form 10-K filed with the Securities and Exchange Commission, but does not include all
disclosures required by generally accepted accounting principles.

In the opinion of management of the
Company, the accompanying unaudited interim consolidated financial statements reflect all
adjustments (consisting of normal recurring adjustments) necessary for a fair presentation
of the consolidated financial position and consolidated results of operations for the
periods presented.

The results of operations for the
nine-month and three-month periods ended September 30, 2003 and 2002 are not necessarily
indicative of the results to be expected for the full year.

Note 2  Use of Estimates

The preparation of financial
statements in conformity with accounting principles generally accepted in the United
States of America requires management to make estimates and assumptions that affect the
reported amounts of assets and liabilities and disclosure of contingent assets and
liabilities at the date of the financial statements and the reported amounts of income and
expenses during the reporting period. Actual results could differ from those estimates.
The collectibility of loans, fair value of financial instruments, and status of
contingencies are particularly subject to change.

5

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Note 3  Earnings Per Share

The following table presents a
reconciliation of the components used to compute basic and diluted earnings per share for
the three-month and nine-month periods ended September 30, 2003 and 2002.

|                                     | Three Months EndedSeptember 30, |  | Nine Months EndedSeptember 30,
|------------------------------------ | ------------------------------- |  | ------------------------------
|
|Basic earnings per share             |                                 |  |                               
|Net income as reported               |                                 |  | $                             
|Weighted average common              |                                 | 
|shares outstanding                   |                                 |  |                               
|                                     |                                 |  |                               
|Basic earnings per share             |                                 |  | $                             
|                                     |                                 |  |                               
|Earnings per share assuming dilution |                                 | 
|Net income available to common       |                                 | 
|shareholders                         |                                 |  | $                             
|                                     |                                 |  |                               
|Weighted average common shares       |                                 | 
|outstanding                          |                                 |  |                               
|Add dilutive effect of:              |                                 | 
|Stock options                        |                                 |  |                               
|                                     |                                 |  |                               
|Weighted average common and dilutive |                                 | 
|potential common shares outstanding  |                                 |  |                               
|                                     |                                 |  |                               
|Diluted earnings per share           |                                 |  | $                             
|                                     |                                 |  |                               

The following  table  illustrates
the effect on net income and earnings per share if expense was measured using the fair
value recognition of FASB Statement No. 123, Accounting for Stock-Based Compensation.

|                                         | Three Months Ended
September 30, |  | Nine Months Ended
September 30,
|---------------------------------------- | -------------------------------- |  | -------------------------------
|                                         |                                  |  |                                
|
|                                         |                                  |  |                                
|Net income as reported                   |                                  |  | $                              
|Deduct: Stock-based compensation expense |                                  | 
|Determined under fair value based method |                                  |  |                                
|                                         |                                  |  |                                
|Pro forma net income                     |                                  |  |                                
|                                         |                                  |  |                                
|Basic earnings per share                 |                                  |  |                                
|Pro forma basic earnings per share       |                                  |  |                                
|                                         |                                  |  |                                
|Diluted earnings per share               |                                  |  |                                
|Pro forma basic earnings per share       |                                  |  |                                

Note 4  Recently Adopted Accounting Standards

On January 1, 2003, the Company
adopted Interpretation 45, Guarantors Accounting and Disclosure Requirements for
Guarantees. On July 1, 2003, the Company adopted Statement 149, amendment of Statement 133
on Derivative Instruments and Hedging Activities, and Statement 150, Accounting of Certain
Financial Instruments with Characteristics of both Liabilities and Equities. On October 1,
2003, the Company adopted Interpretation 46, Consolidation of Variable Interest Entities.

Because the Company does not have
these instruments or is only nominally involved in these instruments, the new accounting
standards will not materially affect the Companys operating results or financial
condition.

6

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# ITEM 2.   MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

The following discussion compares the
financial condition of Park Bancorp, Inc. (Company) and its wholly owned subsidiaries,
Park Federal Savings Bank (Bank) and PBI Development Corporation, and the Banks
subsidiaries, at September 30, 2003 to its financial condition at December 31, 2002 and
the results of operations for the nine-month and three-month periods ended September 30,
2003 to the same periods in 2002. This discussion should be read in conjunction with the
interim financial statements and footnotes included herein.

FINANCIAL CONDITION

Total assets at September 30, 2003
were $260.9 million compared to $251.5 million at December 31, 2002, an increase of
$9.4 million. During the nine months ended September 30, 2003, securities increased $14.0
million, loans receivable increased $7.4 million and Federal Home Loan Bank stock
increased $4.6 million offset by $17.7 million decrease in cash and cash equivalents.

The allowance for loan losses was
$582,000 and $574,000 at September 30, 2003 and December 31, 2002, respectively.
Non-performing assets were $461,000 and $290,000 at September 30, 2003 and
December 31, 2002, respectively.

Total liabilities at September 30,
2003 were $231.8 million compared to $221.6 million at December 31, 2002, an increase
of $10.2 million, primarily due to increases of $9.5 million in deposits and $3.9 million
in Federal Home Loan Bank advances, offset by a decrease of $2.4 million in repurchase
agreements. Deposits continued to increase as a result of consumers hesitancy to
place funds in other investment vehicles such as the stock market in the current economic
environment. Federal Home Loan Bank advances increased as a result of management taking
advantage of low fixed rate term advances for asset/liability management purposes.

Stockholders equity at
September 30, 2003 was $29.1 million compared to $29.9 million at December 31, 2002. The
decrease was primarily attributable to the repurchase of 84,307 shares of common stock at
an average price of $25.67 and dividends declared of $494,000 offset by the net income of
the Company.

RESULTS OF OPERATIONS

Net income increased $231,000 to
$692,000 for the quarter ended September 30, 2003 compared to the same period in 2002. Net
income decreased $29,000 to $1.6 million for the six months ended September 30, 2003
compared to the nine months ended June 30, 2002.

Net interest income increased
$170,000 to $2.0 million for the quarter ended September 30, 2003 compared to the same
period in 2002. Net interest income increased $217,000 to $5.5 million for the nine months
ended September 30, 2003 compared to the same period in 2002. The net interest margin
increased to 3.13% for the three-month period ended September 30, 2003, from 3.06% for the
three-month period ended September 30, 2002. This was largely due to an increase in the
spread to 2.92% for the three-month period ended September 30, 2003, from 2.76% for
three-month period ended September 30, 2002. The average yield on earning assets decreased
to 5.44% and 5.43% for the three-month and nine-month periods ended September 30, 2003,
respectively, from 6.20% and 6.33% for the three-month and nine-month periods ended
September 30, 2002, respectively. The average cost of funds also decreased to 2.52% and
2.72% for the three-month and nine-month periods ended September 30, 2003, respectively,
from 3.44% and 3.65% for the three-month and nine-month periods ended September 30, 2002,
respectively.

Management establishes provisions
for loan losses, which are charged to operations, at a level management believes is
appropriate to absorb probable incurred credit losses in the loan portfolio. In
evaluating the level of the allowance for loan losses, management considers historical
loss experience, the types of loans and the amount of loans in the loan portfolio,
adverse situations that may affect the borrowers ability to repay, estimated value
of any underlying collateral, peer group information, and prevailing economic conditions.
This evaluation is inherently subjective, as it requires estimates that are susceptible
to significant revision as more information becomes available

7

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or as future events change. The
provision for loan losses was $0 for the three-month and nine-month periods ended
September 30, 2003, respectively, and $30,000 and $80,000 for the three-month and
nine-month periods ended September 30, 2002. The decrease in the provision for loan
losses is a direct result of a decrease in the volume of loan participations purchased
which generally have a greater loss experience than other loans.

Management assesses the allowance for
loan losses on a quarterly basis and makes provisions for loan losses as necessary in
order to maintain the allowance. While management uses available information to recognize
losses on loans, future loan loss provisions may be necessary based on changes in economic
conditions. In addition, various regulatory agencies, as an integral part of their
examination process, periodically review the allowance for loan losses and may require us
to recognize additional provisions based on their judgment of information available to
them at the time of their examination. The allowance for loan losses as of September 30,
2003 is maintained at a level that represents managements best estimate of inherent
losses in the loan portfolio, and such losses were both probable and reasonably
estimatible.

Noninterest income increased $182,000
to $374,000 and decreased $51,000 to $836,000 for the three-month and nine-month periods
ended September 30, 2003, respectively, compared to the same periods in 2002. The increase
for the three-month period reflects an increase in fee income and receipt of a Bank
Enterprise Award from the Department of Treasury. The decrease for nine-month period
reflects a $126,000 gain on sale of land held for expansion during 2002. This land was
excess land that was adjacent to the Companys Westmont branch location.

Noninterest expense increased $17,000
to $1.3 million and increased $255,000 to $4.0 million for the three-month and nine-month
periods ended September 30, 2003, respectively, compared to the same periods in 2002. The
increase for both periods are due to higher compensation costs primarily increases in
employee benefits, health insurance and additional staffing.

The Companys federal income tax
expense increased $134,000 to $349,000 for the quarter ended September 30, 2003 compared
to the same period in 2002, while income tax expense increased $20,000 to $783,000 for the
nine-month period ended September 30, 2003 compared to the same period in 2002. The change
in income tax was attributable to changes in income before taxes.

LIQUIDITY AND CAPITAL RESOURCES

The Companys primary sources of
funds are deposits, principal and interest payments on loans and securities, proceeds from
maturities and calls of securities, FHLB advances, and securities sold under repurchase
agreements. While maturities and scheduled amortization of loans and securities are
predictable sources of funds, deposit flows and mortgage prepayments are greatly
influenced by general interest rates, economic conditions, and competition. The
Banks liquidity ratio was 46% at September 30, 2003.

The Companys cash flows are
comprised of three primary classifications: cash flows from operating activities,
investing activities, and financing activities. Cash flows provided by operating
activities were $1.2 million and $851,000 in 2003 and 2002, respectively. Net cash from
investing activities consisted primarily of disbursements for loan originations and the
purchase of securities, offset by principal collections on loans, and proceeds from
maturing securities and paydowns on mortgage-backed securities. The net cash used in
investing activities were $26.5 million and $6.7 million in 2003 and 2002, respectively.
Net cash from financing activities consisted primarily of the activity in deposit
accounts, FHLB borrowings, and securities sold under repurchase agreements in addition to
the purchase of treasury stock. The net cash from financing activities was $7.6 million
and ($3.1) million in 2003 and 2002, respectively.

At September 30, 2003, the Bank
exceeded all of its regulatory capital requirements with a Tier 1 (core) capital level of
$ 24.0 million, or 9.4% of adjusted total assets, which is above the required level of
$10.3 million, or 4.0%; and total risk-based capital of $24.6 million, or 15.6% of
risk-weighted assets, which is above the required level of $12.6 million, or 8.0%. The
Bank at September 30, 2003 was categorized as well capitalized. Management is not aware of
any conditions or events since the most recent notification that would change the
Banks category.

8

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The Banks most liquid assets
are cash and short-term investments. The levels of these assets are dependent on the
Banks operating, financing, lending, and investing activities during any given
period. At September 30, 2003, cash and short-term investments totaled $6.3 million. The
Bank has other sources of liquidity if a need for additional funds arises, including the
repayment of loans and mortgage-backed securities. The Bank may also utilize FHLB advances
or the sale of securities available-for-sale as a source of funds.

At September 30, 2003, the Bank had
outstanding commitments to originate mortgage loans of $4.8 million, and $1.5 million in
standby letters of credit. The Bank anticipates that it will have sufficient funds
available to meet its current loan origination commitments. Certificate accounts that are
scheduled to mature in less than one year from September 30, 2003 totaled $77.1 million.
Management expects that a substantial portion of the maturing certificate accounts will be
renewed at the Bank. However, if a substantial portion of these deposits is not retained,
the Bank may utilize FHLB advances or raise interest rates on deposits to attract new
accounts, which may result in higher levels of interest expense.

Subsequent to December 31, 2002, the
Company entered into a $1.8 million contract to reconstruct the 55th Street
branch office. The construction started in 2003.

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# ITEM 3.   QUANTITATIVE AND QUALITATIVEDISCLOSURES ABOUT MARKET RISK

The Banks interest rate
sensitivity is monitored by management through the use of a model that estimates the
change in net portfolio value (NPV) over a range of interest rate scenarios. NPV is the
present value of expected cash flows from assets, liabilities, and off-balance-sheet
contracts. An NPV ratio, in any interest rate scenario, is defined as the NPV in that
scenario divided by the market value of assets in the same scenario. The Sensitivity
Measure is the decline in the NPV ratio, in basis points, caused by a 2% increase or
decrease in rates, whichever produces a larger decline. The higher an institutions
Sensitivity Measure is, the greater its exposure to interest rate risk is considered to
be. The OTS has incorporated an interest rate risk component into its regulatory capital
rule. Under the rule, an institution whose sensitivity measure exceeds 2% would be
required to deduct an interest rate risk component in calculating its total capital for
purposes of the risk-based capital requirement. As of June 30, 2003, the Banks most
recent sensitivity measure, as measured by the OTS, resulting from a 200 basis point
increase in interest rates was (17)% and would result in a $5.6 million reduction in the
NPV of the Bank. Accordingly, increases in interest rates would be expected to have a
negative impact on the Banks operating results. The NPV ratio sensitivity measure is
below the threshold at which the Bank could be required to hold additional risk-based
capital under OTS regulations.

Certain shortcomings are inherent in
the methodology used in the above interest rate risk measurements. Modeling changes in NPV
require the making of certain assumptions that may tend to oversimplify the manner in
which actual yields and costs respond to changes in market interest rates. First, the
models assume that the composition of the Banks interest sensitive assets and
liabilities existing at the beginning of a period remains constant over the period being
measured. Second, the models assume that a particular change in interest rates is
reflected uniformly across the yield curve regardless of the duration to maturity or
repricing of specific assets and liabilities. Third, the model does not take into account
the impact of the Banks business or strategic plans on the structure of
interest-earning assets and interest-bearing liabilities. Accordingly, although the NPV
measurement provides an indication of the Banks interest rate risk exposure at a
particular point in time, such measurement is not intended to and does not provide a
precise forecast of the effect of changes in market interest rates on the Banks net
interest income and will differ from actual results. The results of this modeling are
monitored by management and presented to the Board of Directors quarterly.

The following table shows the NPV and
projected change in the NPV of the Bank at June 30, 2003 assuming an instantaneous and
sustained change in market interest rates of 100, 200, and 300 basis points.

# Interest Rate Sensitivity of Net Portfolio Value (NPV)

| | Net Portfolio Value |  | NPV as a % ofPV of Assets |       
| | ------------------- |  | ------------------------- | ------
|
| | + 300 bp            |  | $                         | 22,753
| | + 200 bp            |  |                           | 26,968
| | + 100 bp            |  |                           | 30,614
| | 0 bp                |  |                           | 32,548
| | - 100 bp            |  |                           | 32,427
| | - 200 bp            |  |                           | N/A   
| | - 300 bp            |  |                           | N/A   

The Bank and the Company do not
maintain any securities for trading purposes. The Bank and the Company do not currently
engage in trading activities or use derivative instruments in a material amount to control
interest rate risk. In addition, interest rate risk is the most significant market risk
affecting the Bank and the Company. Other types of market risk, such as foreign currency
exchange risk and commodity price risk, do not arise in the normal course of the
Companys business activities and operations.

10

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Management has not yet completed the
computation of NPV as of September 30, 2003 but estimates that the results would not be
materially different than those presented above.

# ITEM 4.   CONTROLS AND PROCEDURES

Management, including the Chief
Executive Officer and Chief Financial Officer, has conducted an evaluation of the
effectiveness of disclosure controls and procedures, pursuant to Exchange Act Rule
13a-15(b), as of September 30, 2003. Based on that evaluation, the Chief Executive Officer
and Chief Financial Officer concluded that the Companys disclosure controls and
procedures are effective and no changes are required at this time.

In connection with the evaluation by
management, including the Chief Executive Officer and Chief Financial Officer, of the
Companys internal control over financial reporting, pursuant to Exchange Act Rule
13a-15(d), no changes during the quarter ended September 30, 2003 were identified that
have materially affected, or are reasonably likely to materially affect, the
Companys internal control over financial reporting.

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# PART IIOTHER INFORMATION

# ITEM 1.   LEGAL PROCEEDINGS.

| | None
| | ----

# ITEM 2.   CHANGES IN SECURITIES.

| | None
| | ----

# ITEM 3.   DEFAULTS UPON SENIOR SECURITIES.

| | None
| | ----

# ITEM 4.   SUBMISSION OF MATTERSTO A VOTE OF SECURITIES HOLDERS.

| | None
| | ----

# ITEM 5.   OTHER INFORMATION.

| | None
| | ----

# ITEM 6.   EXHIBITS AND REPORTSON FORM 8-K.

| |  | (a) |  | Exhibits
| |  | --- |  | --------

| |  |  | 31.1 |  | Certification
of David A. Remijas required by Rule 13a-14(a)
| |  |  | ---- |  | ------------------------------------------------------------

| |  |  | 31.2 |  | Certification
of Steven J. Pokrak required by Rule 13a-14(a)
| |  |  | ---- |  | ------------------------------------------------------------

| |  |  | 32.1 |  | Certification
Pursuant to 18 U.S.C. Section 1350, as adopted to Section 906 of the Sarbanes-Oxley Act
of 2002 from the Companys Chief Executive Officer (attached as an exhibit and
incorporated herein by reference.)
| |  |  | ---- |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| |  |  | 32.2 |  | Certification
Pursuant to 18 U.S.C. Section 1350, as adopted to Section 906 of the Sarbanes-Oxley Act
of 2002 from the Companys Chief Financial Officer (attached as an exhibit and
incorporated herein by reference.)
| |  |  | ---- |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| |  | (b) |  | Reports on Form 8-K. On August 1, 2003, Park Bancorp, Inc. announced earnings for the second
quarter, 2003 and on September 2, 2003, Park Bancorp, Inc. announced completion
of a stock repurchase program and adoption of a new stock repurchase program.
| |  | --- |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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SIGNATURES

Pursuant to the requirements 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.

|                        |  | PARK BANCORP, INC.                                    | 
|----------------------- |  | ----------------------------------------------------- | 
|Date: November 14, 2003 |  | /s/   David A. Remijas                                | 
|                        |  |                                                      
|                        |  | David A. RemijasPresident and Chief Executive Officer | 
|Date: November 14, 2003 |  | /s/   Steven J. Pokrak                                | 
|                        |  |                                                      
|                        |  | Steven J. PokrakTreasurer and Chief Financial Officer | 

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