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| New Jersey                                                     |   | 65-1241959                        |
|----------------------------------------------------------------|--------|-----------------------------------|
| (State or other jurisdiction of incorporation or organization) |   | (IRS Employer Identification No.) |
|                                                           |   |                              |
| 601 Delsea Drive, Washington Township, New Jersey              |   | 08080                             |
| (Address of principal executive offices)                       |   | (Zip Code)                        |

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|                        |                                                                                  | Page   |
|-----------------------------|---------------------------------------------------------------------------------------|--------|
| Part I                      | FINANCIAL INFORMATION                                                                 |   |
|                        |                                                                                  |   |
| Item 1.                     | Financial Statements                                                                  | 1      |
| Item 2.                     | Management's Discussion and Analysis of Financial Condition and Results of Operations | 41     |
| Item 3.                     | Quantitative and Qualitative Disclosures About Market Risk                            | 53     |
| Item 4.                     | Controls and Procedures                                                               | 53     |
|                        |                                                                                  |   |
| Part II                     | OTHER INFORMATION                                                                     |   |
|                        |                                                                                  |   |
| Item 1.                     | Legal Proceedings                                                                     | 53     |
| Item 1A.                    | Risk Factors                                                                          | 53     |
| Item 2.                     | Unregistered Sales of Equity Securities and Use of Proceeds                           | 53     |
| Item 3.                     | Defaults Upon Senior Securities                                                       | 53     |
| Item 4.                     | Mine Safety Disclosures                                                               | 54     |
| Item 5.                     | Other Information                                                                     | 54     |
| Item 6.                     | Exhibits                                                                              | 54     |
|                        |                                                                                  |   |
| SIGNATURES                  |                                                                                  |
|                        |                                                                                  |   |
| EXHIBITS and CERTIFICATIONS |                                                                                  |

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| Parke Bancorp, Inc. and Subsidiaries                                                                                                                       |   |
|------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
| Consolidated Balance Sheets                                                                                                                                |   |
| (unaudited)                                                                                                                                                |   |
| (in thousands except share and per share data)                                                                                                             |   |
|                                                                                                                                                       |   | June 30, |   |   | December 31, |   |
|                                                                                                                                                       |   | 2012 |   |   | 2011 |   |
| Assets                                                                                                                                                     |   |   |   |   |   |   |
| Cash and due from financial institutions                                                                                                                   |   | $ | 4,401 |   |   | $ | 3,733 |   |
| Federal funds sold and cash equivalents                                                                                                                    |   |   | 114,578 |   |   |   | 106,495 |   |
| Total Cash and cash equivalents                                                                                                                            |   |   | 118,979 |   |   |   | 110,228 |   |
|                                                                                                                                                       |   |   |   |   |   |   |   |   |
| Investment securities available for sale, at fair value                                                                                                    |   |   | 23,428 |   |   |   | 22,517 |   |
| Investment securities held to maturity (fair value of  $2,153  at June 30, 2012 and $2,080 at December 31, 2011)                       |   |   | 2,049 |   |   |   | 2,032 |   |
| Total investment securities                                                                                                                                |   |   | 25,477 |   |   |   | 24,549 |   |
|                                                                                                                                                       |   |   |   |   |   |   |   |   |
| Loans held for sale                                                                                                                                        |   |   | - |   |   |   | 225 |   |
|                                                                                                                                                       |   |   |   |   |   |   |   |   |
| Loans, net of unearned income                                                                                                                              |   |   | 604,877 |   |   |   | 625,117 |   |
| Less: Allowance for loan losses                                                                                                                            |   |   | 18,325 |   |   |   | 19,323 |   |
| Net loans                                                                                                                                                  |   |   | 586,552 |   |   |   | 605,794 |   |
|                                                                                                                                                       |   |   |   |   |   |   |   |   |
| Accrued interest receivable                                                                                                                                |   |   | 2,969 |   |   |   | 3,039 |   |
| Bank premises and equipment, net                                                                                                                           |   |   | 4,130 |   |   |   | 4,122 |   |
| Other real estate owned (OREO)                                                                                                                             |   |   | 26,727 |   |   |   | 19,410 |   |
| Restricted stock, at cost                                                                                                                                  |   |   | 2,227 |   |   |   | 3,565 |   |
| Bank owned life insurance (BOLI)                                                                                                                           |   |   | 5,632 |   |   |   | 5,541 |   |
| Other assets                                                                                                                                               |   |   | 15,857 |   |   |   | 14,265 |   |
| Total Assets                                                                                                                                               |   | $ | 788,550 |   |   | $ | 790,738 |   |
| Liabilities and Equity                                                                                                                                     |   |   |   |   |   |   |   |   |
| Liabilities                                                                                                                                                |   |   |   |   |   |   |   |   |
| Deposits                                                                                                                                                   |   |   |   |   |   |   |   |   |
| Noninterest-bearing deposits                                                                                                                               |   | $ | 32,879 |   |   | $ | 31,146 |   |
| Interest-bearing deposits                                                                                                                                  |   |   | 625,851 |   |   |   | 603,709 |   |
| Total deposits                                                                                                                                             |   |   | 658,730 |   |   |   | 634,855 |   |
|                                                                                                                                                       |   |   |   |   |   |   |   |   |
| FHLB borrowings                                                                                                                                            |   |   | 20,529 |   |   |   | 50,607 |   |
| Other borrowed funds                                                                                                                                       |   |   | 10,000 |   |   |   | 10,000 |   |
| Subordinated debentures                                                                                                                                    |   |   | 13,403 |   |   |   | 13,403 |   |
| Accrued interest payable                                                                                                                                   |   |   | 615 |   |   |   | 618 |   |
| Other liabilities                                                                                                                                          |   |   | 5,192 |   |   |   | 3,982 |   |
| Total liabilities                                                                                                                                          |   |   | 708,469 |   |   |   | 713,465 |   |
| Equity                                                                                                                                                     |   |   |   |   |   |   |   |   |
| Preferred stock, cumulative perpetual, $1,000 liquidation value; authorized 1,000,000 shares; Issued: 16,288 shares at June 30, 2012 and December 31, 2011 |   |   | 15,965 |   |   |   | 15,868 |   |
| Common stock, $.10 par value; authorized 10,000,000 shares; Issued: 5,594,793 shares at June 30, 2012 and 5,097,078 shares December 31, 2011          |   |   | 560 |   |   |   | 510 |   |
| Additional paid-in capital                                                                                                                                 |   |   | 48,869 |   |   |   | 45,844 |   |
| Retained earnings                                                                                                                                          |   |   | 17,899 |   |   |   | 17,808 |   |
| Accumulated other comprehensive loss                                                                                                                       |   |   | (570 | ) |   |   | (626 | ) |
| Treasury stock, 210,900 shares at June 30, 2012 and December 31, 2011, at cost                                                                             |   |   | (2,180 | ) |   |   | (2,180 | ) |
| Total shareholders’ equity                                                                                                                           |   |   | 80,543 |   |   |   | 77,224 |   |
| Noncontrolling (minority) interest in consolidated subsidiaries                                                                                            |   |   | (462 | ) |   |   | 49 |   |
| Total equity                                                                                                                                               |   |   | 80,081 |   |   |   | 77,273 |   |
| Total liabilities and equity                                                                                                                               |   | $ | 788,550 |   |   | $ | 790,738 |   |
| See accompanying notes to consolidated financial statements                                                                                                |   |

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| Parke Bancorp Inc. and Subsidiaries                                           |   |
|-------------------------------------------------------------------------------|--------|
| CONSOLIDATED STATEMENTS OF INCOME                                             |   |
| (unaudited)                                                                   |   |
|  (in thousands except share and per share data)                          |   |
|                                                                          |   | For the six months ended June 30, |   |   | For the three months ended June 30, |   |
|                                                                          |   | 2012 |   |   | 2011 |   |   | 2012 |   |   | 2011 |   |
|                                                                          |   |   |   |
| Interest income:                                                              |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest and fees on loans                                                    |   | $ | 18,871 |   |   | $ | 19,890 |   |   | $ | 9,358 |   |   | $ | 10,074 |   |
| Interest and dividends on investments                                         |   |   | 540 |   |   |   | 704 |   |   |   | 252 |   |   |   | 330 |   |
| Interest on federal funds sold and cash equivalents                           |   |   | 119 |   |   |   | 44 |   |   |   | 66 |   |   |   | 27 |   |
| Total interest income                                                         |   |   | 19,530 |   |   |   | 20,638 |   |   |   | 9,676 |   |   |   | 10,431 |   |
| Interest expense:                                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest on deposits                                                          |   |   | 3,459 |   |   |   | 4,005 |   |   |   | 1,687 |   |   |   | 1,950 |   |
| Interest on borrowings                                                        |   |   | 475 |   |   |   | 714 |   |   |   | 233 |   |   |   | 362 |   |
| Total interest expense                                                        |   |   | 3,934 |   |   |   | 4,719 |   |   |   | 1,920 |   |   |   | 2,312 |   |
| Net interest income                                                           |   |   | 15,596 |   |   |   | 15,919 |   |   |   | 7,756 |   |   |   | 8,119 |   |
| Provision for loan losses                                                     |   |   | 4,300 |   |   |   | 4,500 |   |   |   | 2,050 |   |   |   | 2,100 |   |
| Net interest income after provision for loan losses                           |   |   | 11,296 |   |   |   | 11,419 |   |   |   | 5,706 |   |   |   | 6,019 |   |
| Noninterest income (loss):                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Loan fees                                                                     |   |   | 159 |   |   |   | 164 |   |   |   | 105 |   |   |   | 101 |   |
| Net income from BOLI                                                          |   |   | 91 |   |   |   | 88 |   |   |   | 46 |   |   |   | 44 |   |
| Service fees on deposit accounts                                              |   |   | 104 |   |   |   | 108 |   |   |   | 54 |   |   |   | 53 |   |
| Gain on sale of SBA loans                                                     |   |   | 1,357 |   |   |   | 3,142 |   |   |   | 755 |   |   |   | 899 |   |
| Other than temporary impairment losses                                        |   |   | — |   |   |   | (57 | ) |   |   | — |   |   |   | (37 | ) |
| Portion of loss recognized in other comprehensive income (OCI) (before taxes) |   |   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |
| Net impairment losses recognized in earnings                                  |   |   | — |   |   |   | (57 | ) |   |   | — |   |   |   | (37 | ) |
| Gain (loss) on sale of real estate owned                                      |   |   | (625 | ) |   |   | 52 |   |   |   | (537 | ) |   |   | — |   |
| Other                                                                         |   |   | 528 |   |   |   | 117 |   |   |   | 108 |   |   |   | 60 |   |
| Total noninterest income                                                      |   |   | 1,614 |   |   |   | 3,614 |   |   |   | 531 |   |   |   | 1,120 |   |
| Noninterest expense:                                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Compensation and benefits                                                     |   |   | 2,852 |   |   |   | 2,822 |   |   |   | 1,410 |   |   |   | 1,408 |   |
| Professional services                                                         |   |   | 776 |   |   |   | 645 |   |   |   | 500 |   |   |   | 389 |   |
| Occupancy and equipment                                                       |   |   | 531 |   |   |   | 503 |   |   |   | 267 |   |   |   | 242 |   |
| Data processing                                                               |   |   | 203 |   |   |   | 224 |   |   |   | 109 |   |   |   | 114 |   |
| FDIC insurance                                                                |   |   | 546 |   |   |   | 685 |   |   |   | 276 |   |   |   | 343 |   |
| OREO Expense                                                                  |   |   | 687 |   |   |   | 212 |   |   |   | 318 |   |   |   | 117 |   |
| Other operating expense                                                       |   |   | 1,902 |   |   |   | 1,366 |   |   |   | 1,110 |   |   |   | 649 |   |
| Total noninterest expense                                                     |   |   | 7,497 |   |   |   | 6,457 |   |   |   | 3,990 |   |   |   | 3,262 |   |
| Income before income tax expense                                              |   |   | 5,413 |   |   |   | 8,576 |   |   |   | 2,247 |   |   |   | 3,877 |   |
| Income tax expense                                                            |   |   | 1,529 |   |   |   | 3,444 |   |   |   | 257 |   |   |   | 1,564 |   |
| Net income attributable to Company and noncontrolling (minority) interest     |   |   | 3,884 |   |   |   | 5,132 |   |   |   | 1,990 |   |   |   | 2,313 |   |
| Net income attributable to noncontrolling (minority) interest                 |   |   | (248 | ) |   |   | (696 | ) |   |   | (141 | ) |   |   | (169 | ) |
| Net income attributable to Company                                            |   |   | 3,636 |   |   |   | 4,436 |   |   |   | 1,849 |   |   |   | 2,144 |   |
| Preferred stock dividend and discount accretion                               |   |   | 504 |   |   |   | 499 |   |   |   | 253 |   |   |   | 250 |   |
| Net income available to common shareholders                                   |   | $ | 3,132 |   |   | $ | 3,937 |   |   | $ | 1,596 |   |   |   | 1,894 |   |
|                                                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Earnings per common share                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Basic                                                                         |   | $ | 0.58 |   |   | $ | 0.73 |   |   | $ | 0.30 |   |   | $ | 0.35 |   |
| Diluted                                                                       |   | $ | 0.58 |   |   | $ | 0.71 |   |   | $ | 0.30 |   |   | $ | 0.35 |   |
| Weighted average shares outstanding                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Basic                                                                         |   |   | 5,375,176 |   |   |   | 5,374,561 |   |   |   | 5,375,792 |   |   |   | 5,374,561 |   |
| Diluted                                                                       |   |   | 5,379,758 |   |   |   | 5,513,923 |   |   |   | 5,381,121 |   |   |   | 5,451,221 |   |
| See accompanying notes to consolidated financial statements                   |   |
|                                                                          |   |

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| Parke Bancorp Inc. and Subsidiaries                         |                              |
|-------------------------------------------------------------|-----------------------------------|
| CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME             |                              |
| (unaudited)                                                 |                              |
|                                                        | For the six months ended June 30, |   |
|                                                        | 2012                              |   | 2011 |   |
|                                                        | (in thousands)                    |   |
| Net income attributable to Company and                      |                              |   |   |   |   |   |
| other comprehensive income net of tax                       |                              | $ | 3,636 |   |   | $ | 4,436 |   |
| Unrealized gains on securities:                             |                              |   |   |   |   |   |   |   |
| Non-credit unrealized gains on securities with OTTI         |                              |   | 100 |   |   |   | 34 |   |
| Net unrealized (losses) gains on securities without OTTI    |                              |   | (51 | ) |   |   | 70 |   |
| Total unrealized gains on securities                        |                              |   | 49 |   |   |   | 104 |   |
| Pension liability adjustments                               |                              |   | 7 |   |   |   | 20 |   |
| Total other comprehensive income                            |                              |   | 56 |   |   |   | 124 |   |
| Total comprehensive income                                  |                              | $ | 3,692 |   |   | $ | 4,560 |   |
| See accompanying notes to consolidated financial statements |                              |

| Parke Bancorp Inc. and Subsidiaries                         |                                |
|-------------------------------------------------------------|-------------------------------------|
| CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME             |                                |
| (unaudited)                                                 |                                |
|                                                        | For the three months ended June 30, |   |
|                                                        | 2012                                |   | 2011 |   |
|                                                        | (in thousands)                      |   |
| Net income attributable to Company and                      |                                |   |   |   |   |   |
| other comprehensive income net of tax                       |                                | $ | 1,849 |   |   | $ | 2,144 |   |
| Unrealized gains on securities:                             |                                |   |   |   |   |   |   |   |
| Non-credit unrealized gains on securities with OTTI         |                                |   | 100 |   |   |   | 30 |   |
| Net unrealized (losses) gains on securities without OTTI    |                                |   | (23 | ) |   |   | 129 |   |
| Total unrealized gains on securities                        |                                |   | 77 |   |   |   | 159 |   |
| Pension liability adjustments                               |                                |   | 4 |   |   |   | 9 |   |
| Total other comprehensive income                            |                                |   | 81 |   |   |   | 168 |   |
| Total comprehensive income                                  |                                | $ | 1,930 |   |   | $ | 2,312 |   |
| See accompanying notes to consolidated financial statements |                                |

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|                                                             |   | Parke Bancorp, Inc. and Subsidiaries                    |   |   |
|------------------------------------------------------------------|--------|---------------------------------------------------------|--------|--------|
|                                                             |   |  CONSOLIDATED STATEMENTS OF CHANGE IN TOTAL EQUITY |   |   |
|                                                             |   |  (unaudited)                                       |   |   |
|                                                             |   |                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |  Accumulated |   |   |   |   |   |   |   |   |  Non- |   |   |   |   |   |
|                                                             |   |                                                    |   |   |  Shares of |   |   |   |   |   |  Additional |   |   |   |   |   |  Other |   |   |   |   |   |  Total |   |   |  Controlling |   |   |   |   |   |
|                                                             |   |  Preferred                                         |   |   |  Common |   |   |  Common |   |   |  Paid-In |   |   |  Retained |   |   |  Comprehensive |   |   |  Treasury |   |   |  Shareholders' |   |   |  (Minority) |   |   |  Total |   |   |
|                                                             |   |  Stock                                             |   |   |  Stock |   |   |  Stock |   |   |  Capital |   |   |  Earnings |   |   |  Loss |   |   |  Stock |   |   |  Equity |   |   |  Interest |   |   |  Equity |   |   |
|                                                             |   |  (in thousands except share data)                  |   |   |
| Balance, December 31, 2011                                       |   | $                                                       | 15,868 |   |   |   | 5,097,078 |   |   | $ | 510 |   |   | $ | 45,844 |   |   | $ | 17,808 |   |   | $ | (626 | )  |   | $ | (2,180 | )  |   | $ | 77,224 |   |   | $ | 49 |   |   | $ | 77,273 |   |   |
| Capital withdrawals by noncontrolling (minority) interest        |   |                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | (759 | )  |   |   | (759 | ) |   |
| Stock options exercised                                          |   |                                                    |   |   |   |   | 9,332 |   |   |   | 1 |   |   |   | 34 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 35 |   |   |   |   |    |   |   | 35 |   |   |
| Treasury stock purchased (42,035 shares)                         |   |                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| 10% common stock dividend                                        |   |                                                    |   |   |   |   | 488,383 |   |   |   | 49 |   |   |   | 2,991 |   |   |   | (3,041 | ) |   |   |   |   |   |   |   |   |   |   | (1 | ) |   |   |   |   |   |   | (1 | ) |
| Comprehensive income:                                            |   |                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net income                                                       |   |                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 3,636 |   |   |   |   |   |   |   |   |   |   |   | 3,636 |   |   |   | 248 |   |   |   | 3,884 |   |   |
| Non-credit unrealized gain on securities with OTTI, net of taxes |   |                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 100 |   |   |   |   |   |   |   | 100 |   |   |   |   |   |   |   | 100 |   |   |
| Net unrealized( loss) on securities without OTTI, net of taxes   |   |                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | (51 | )  |   |   |   |   |   |   | (51 | ) |   |   |   |   |   |   | (51 | )  |   |
| Pension liability adjustments, net of taxes                      |   |                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 7 |   |   |   |   |   |   |   | 7  |   |   |   |   |   |   |   | 7 |   |   |
| Total comprehensive income                                       |   |                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 3,692 |   |   |   | 248 |   |   |   | 3,940 |   |   |
|                                                             |   |                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Dividend on preferred stock (5% annually)                        |   |                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | (407 | )  |   |   |   |   |   |   |   |   |   |   | (407 | )  |   |   |   |   |   |   | (407 | ) |   |
| Accretion of discount on preferred stock                         |   | 97                                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 97 | )  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                             |   |                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance, June 30, 2012                                           |   | $                                                       | 15,965 |   |   |   | 5,594,793 |   |   | $ | 560 |   |   | $ | 48,869 |   |   | $ | 17,899 |   |   | $ | (570 | ) |   | $ | (2,180 | ) |   | $ | 80,543 |   |   | $ | (462 | ) |   | $ | 80,081 |   |
|                                                             |   |                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| See accompanying notes to consolidated financial statements      |   |

----

| Parke Bancorp Inc. and Subsidiaries                                               |   |
|-----------------------------------------------------------------------------------|--------|
| CONSOLIDATED STATEMENTS OF CASH FLOWS                                             |   |
| (unaudited)                                                                       |   |
|                                                                              |   | For the six months ended June 30, |   |
|                                                                              |   | 2012 |   |   | 2011 |   |
|                                                                              |   | (in thousands) |   |
| Cash Flows from Operating Activities                                              |   |   |   |   |   |   |
| Net income                                                                        |   | $ | 3,884 |   |   | $ | 5,132 |   |
| Adjustments to reconcile net income to net cash provided by operating activities: |   |   |   |   |   |   |   |   |
| Depreciation and amortization                                                     |   |   | 183 |   |   |   | 182 |   |
| Provision for loan losses                                                         |   |   | 4,300 |   |   |   | 4,500 |   |
| Bank owned life insurance                                                         |   |   | (91 | ) |   |   | (88 | ) |
| Supplemental executive retirement plan expense                                    |   |   | 68 |   |   |   | 225 |   |
| Gain on sale of SBA loans                                                         |   |   | (1,357 | ) |   |   | (3,142 | ) |
| SBA loans originated for sale                                                     |   |   | (12,784 | ) |   |   | (14,629 | ) |
| Proceeds from sale of SBA loans originated for sale                               |   |   | 14,366 |   |   |   | 16,277 |   |
| Loss (gain) on sale of other real estate owned                                    |   |   | 625 |   |   |   | (52 | ) |
| Other than temporary decline in value of investments                              |   |   | — |   |   |   | 57 |   |
| Net accretion of purchase premiums and discounts on securities                    |   |   | (11 | ) |   |   | (39 | ) |
| Deferred income tax benefit                                                       |   |   | 602 |   |   |   | — |   |
| Changes in operating assets and liabilities:                                      |   |   |   |   |   |   |   |   |
| Increase in accrued interest receivable and other assets                          |   |   | (2,031 | ) |   |   | (670 | ) |
| Increase (decrease) in accrued interest payable and other accrued liabilities     |   |   | 1,144 |   |   |   | (1,056 | ) |
| Net cash provided by operating activities                                         |   |   | 8,898 |   |   |   | 6,697 |   |
| Cash Flows from Investing Activities                                              |   |   |   |   |   |   |   |   |
| Purchases of investment securities available for sale                             |   |   | (4,148 | ) |   |   | — |   |
| Redemptions (purchases) of restricted stock                                       |   |   | 1,338 |   |   |   | (79 | ) |
| Proceeds from sale of securities available for sale                               |   |   | — |   |   |   | 500 |   |
| Proceeds from maturities, calls and principal payments on securities         |   |   | 3,189 |   |   |   | 2,192 |   |
| Proceeds from sale of other real estate owned                                     |   |   | 1,246 |   |   |   | 2,483 |   |
| Advances on other real estate owned                                               |   |   | (207 | ) |   |   | (3,730 | ) |
| Net decrease (increase) in loans                                                  |   |   | 5,961 |   |   |   | (6,985 | ) |
| Purchases of bank premises and equipment                                          |   |   | (191 | ) |   |   | (94 | ) |
| Net cash provided by (used in) investing activities                               |   |   | 7,188 |   |   |   | (5,713 | ) |
| Cash Flows from Financing Activities                                              |   |   |   |   |   |   |   |   |
| Payment of dividend on preferred stock                                            |   |   | (407 | ) |   |   | (408 | ) |
| Cash payment of fractional shares on 10% stock dividend                           |   |   | (1 | ) |   |   | (2 | ) |
| Minority interest capital withdrawal, net                                         |   |   | (759 | ) |   |   | (599 | ) |
| Net decrease in Federal Home Loan Bank and short term borrowings                  |   |   | (30,078 | ) |   |   | — |   |
| Proceeds from exercise of stock options and warrants                              |   |   | 35 |   |   |   | — |   |
| Payments of Federal Home Loan Bank advances                                       |   |   | — |   |   |   | (75 | ) |
| Net increase in noninterest-bearing deposits                                      |   |   | 1,733 |   |   |   | 1,868 |   |
| Net increase (decrease) in interest-bearing deposits                              |   |   | 22,142 |   |   |   | (4,711 | ) |
| Net cash used in financing activities                                             |   |   | (7,335 | ) |   |   | (3,927 | ) |
| Increase (decrease) in cash and cash equivalents                                  |   |   | 8,751 |   |   |   | (2,943 | ) |
| Cash and Cash Equivalents, beginning of period                                    |   |   | 110,228 |   |   |   | 57,628 |   |
| Cash and Cash Equivalents, end of period                                          |   | $ | 118,979 |   |   | $ | 54,685 |   |
| Supplemental Disclosure of Cash Flow Information:                                 |   |   |   |   |   |   |   |   |
| Cash paid during the year for:                                                    |   |   |   |   |   |   |   |   |
| Interest on deposits and borrowed funds                                           |   | $ | 3,937 |   |   | $ | 4,907 |   |
| Income taxes                                                                      |   | $ | 2,365 |   |   | $ | 3,444 |   |
| Supplemental Schedule of Noncash Activities:                                      |   |   |   |   |   |   |   |   |
| Real estate acquired in settlement of loans                                       |   | $ | 8,981 |   |   | $ | 682 |   |
|                                                                              |   |   |   |   |   |   |   |   |
| See accompanying notes to consolidated financial statements                       |   |   |   |   |   |   |   |   |

----

----

----

|  As of June 30, 2012              |                   | Amortizedcost |    | Grossunrealizedgains |    | Grossunrealizedlosses |    | Other-than-temporaryimpairmentsin OCI |   | Fair value |    |
|----------------------------------------|------------------------|---------------|---------|----------------------|---------|-----------------------|---------|---------------------------------------|--------|------------|---------|
|  Available for sale:              | (Amounts in thousands) |          |
|                                   |                   |          |    |                 |    |                  |
| U.S. Government sponsored entities     | $                      | 7             |    | $                    | — |                  | $       | —                               |   | $          | — |   | $ | 7 |   |
| Corporate debt obligations             |                   | 1,500         |    |                 | 45      |                  |    | —                               |   |       | — |   |   | 1,545 |   |
| Residential mortgage-backed securities | 15,911                 |          | 737     |                 | — |                  | — |                                  | 16,648 |       |
| Collateralized mortgage obligations    | 1,148                  |          | 130     |                 | — |                  | — |                                  | 1,278  |       |
| Collateralized debt obligations        | 5,556                  |          | — |                 | 1,114   |                  | 492     |                                  | 3,950  |       |
| Total available for sale               | $                      | 24,122        |    | $                    | 912     |                  | $       | 1,114                                 |   | $          | 492     |   | $ | 23,428 |   |
|                                   |                   |          |    |                 |    |                  |    |                                  |   |       |
|  Held to maturity:                |                   |          |    |                 |    |                  |    |                                  |   |       |
| States and political subdivisions      | $                      | 2,049         |    | $                    | 104     |                  | $       | —                               |   | $          | — |   | $ | 2,153 |   |

|  As of December 31, 2011          |                   | Amortizedcost |    | Grossunrealizedgains |    | Grossunrealizedlosses |    | Other-than-temporaryimpairmentsin OCI |   | Fair value |    |
|----------------------------------------|------------------------|---------------|---------|----------------------|---------|-----------------------|---------|---------------------------------------|--------|------------|---------|
|  Available for sale:              | (Amounts in thousands) |          |
|                                   |                   |          |    |                 |    |                  |
| U.S. Government sponsored entities     | $                      | 1,006         |    | $                    | 5       |                  | $       | —                               |   | $          | — |   | $ | 1,011 |   |
| Corporate debt obligations             |                   | 1,500         |    |                 | 43      |                  |    | 57                                    |   |       | — |   |   | 1,486 |   |
| Residential mortgage-backed securities | 13,697                 |          | 764     |                 | — |                  | — |                                  | 14,461 |       |
| Collateralized mortgage obligations    | 1,534                  |          | 73      |                 | — |                  | 13      |                                  | 1,594  |       |
| Collateralized debt obligations        | 5,556                  |          | — |                 | 1,080   |                  | 511     |                                  | 3,965  |       |
| Total available for sale               | $                      | 23,293        |    | $                    | 885     |                  | $       | 1,137                                 |   | $          | 524     |   | $ | 22,517 |   |
|                                   |                   |          |    |                 |    |                  |    |                                  |   |       |
|  Held to maturity:                |                   |          |    |                 |    |                  |    |                                  |   |       |
| States and political subdivisions      | $                      | 2,032         |    | $                    | 87      |                  | $       | 39                                    |   | $          | — |   | $ | 2,080 |   |

----

|                                                                           |   | AmortizedCost          |    |   | FairValue |   |
|--------------------------------------------------------------------------------|--------|------------------------|---------|--------|-----------|--------|
|                                                                           |   | (Amounts in thousands) |    |
| Available for sale:                                                            |   |                   |    |
| Due within one year                                                            |   | $                      | — |   |      | $      | — |   |
| Due after one year through five years                                          |   |                   | — |   |      |   | — |   |
| Due after five years through ten years                                         |   |                   | — |   |      |   | — |   |
| Due after ten years                                                            |   |                   | 7,062   |   |      |   | 5,512 |   |
| Residential mortgage-backed securities and collateralized mortgage obligations |   |                   | 17,060  |   |      |   | 17,926 |   |
| Total  available for sale                                            |   | $                      | 24,122  |   |      | $      | 23,438 |   |

| Held to maturity:                      |   |   |    |
|----------------------------------------|--------|--------|---------|
| Due within one year                    |   | $      | — |   |   | $ | — |   |
| Due after one year through five years  |   |   | — |   |   |   | — |   |
| Due after five years through ten years |   |   | — |   |   |   | — |   |
| Due after ten years                    |   |   | 2,049   |   |   |   | 2,153 |   |
| Total held to maturity                 |   | $      | 2,049   |   |   | $ | 2,153 |   |

----

| As of June 30, 2012               |   | Less Than 12 Months    |    |   | 12 Months or Greater |   |    | Total     |   |
|-----------------------------------|--------|------------------------|---------|--------|----------------------|--------|---------|-----------|--------|
| Description of Securities         |   | FairValue              |    |   | UnrealizedLosses     |   |    | FairValue |   |   | UnrealizedLosses |   |   | FairValue |   |   | UnrealizedLosses |   |
|                              |   | (Amounts in thousands) |    |
| Available for sale:               |   |                   |    |   |                 |   |    |      |   |   |   |   |   |   |   |   |   |   |
| Collateralized debt obligations   |   |                   | — |   |                 |   | — |      |   |   | 3,636 |   |   |   | 1,114 |   |   |   | 3,636 |   |   |   | 1,114 |   |
| Total available for sale          |   | $                      | — |   |                 | $      | — |      |   | $ | 3,636 |   |   | $ | 1,114 |   |   | $ | 3,636 |   |   | $ | 1,114 |   |
|                              |   |                   |    |   |                 |   |    |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Held to maturity:                 |   |                   |    |   |                 |   |    |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| States and political subdivisions |   | $                      | — |   |                 | $      | — |      |   | $ | — |   |   | $ | — |   |   | $ | — |   |   | $ | — |   |

| As of December 31, 2011           |   | Less Than 12 Months    |    |   | 12 Months or Greater |   |    | Total     |   |
|-----------------------------------|--------|------------------------|---------|--------|----------------------|--------|---------|-----------|--------|
| Description of Securities         |   | FairValue              |    |   | UnrealizedLosses     |   |    | FairValue |   |   | UnrealizedLosses |   |   | FairValue |   |   | UnrealizedLosses |   |
|                              |   | (Amounts in thousands) |    |
| Available for sale:               |   |                   |    |   |                 |   |    |      |   |   |   |   |   |   |   |   |   |   |
| Corporate debt obligations        |   |                   | — |   |                 |   | — |      |   |   | 443 |   |   |   | 57 |   |   |   | 443 |   |   |   | 57 |   |
| Collateralized debt obligations   |   |                   | — |   |                 |   | — |      |   |   | 3,670 |   |   |   | 1,080 |   |   |   | 3,670 |   |   |   | 1,080 |   |
| Total available for sale          |   | $                      | — |   |                 | $      | — |      |   | $ | 4,113 |   |   | $ | 1,137 |   |   | $ | 4,113 |   |   | $ | 1,137 |   |
|                              |   |                   |    |   |                 |   |    |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Held to maturity:                 |   |                   |    |   |                 |   |    |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| States and political subdivisions |   | $                      | 758     |   |                 | $      | 39      |      |   | $ | — |   |   | $ | — |   |   | $ | 758 |   |   | $ | 39 |   |

----

----

----

|                                                                               |   | For the Six Months EndedJune 30, |    |
|------------------------------------------------------------------------------------|--------|----------------------------------|---------|
|                                                                               |   | 2012                             |    |   | 2011 |   |
|                                                                               |   |                             |    |   |   |   |
|                                                                               |   | (Amounts in thousands)           |    |
| Beginning balance                                                                  |   | $                                | 1,950   |   |   | $ | 2,657 |   |
| Initial credit impairment                                                          |   |                             | — |   |   |   | — |   |
| Subsequent credit impairments                                                      |   |                             | — |   |   |   | 57 |   |
| Reductions for amounts recognized in earnings due to intent or requirement to sell |   |                             | — |   |   |   | — |   |
| Reductions for securities sold                                                     |   |                             | — |   |   |   | — |   |
| Reductions for securities deemed worthless                                         |   |                             | (399    | ) |   |   | 316 |   |
| Reductions for increases in cash flows expected to be collected                    |   |                             | — |   |   |   | — |   |
| Ending balance                                                                     |   | $                                | 1,551   |   |   | $ | 2,398 |   |

|                                                                               |   | For the Three Months EndedJune 30, |    |
|------------------------------------------------------------------------------------|--------|------------------------------------|---------|
|                                                                               |   | 2012                               |    |   | 2011 |   |
|                                                                               |   |                               |    |   |   |   |
|                                                                               |   | (Amounts in thousands)             |    |
| Beginning balance                                                                  |   | $                                  | 1,551   |   |   | $ | 2,596 |   |
| Initial credit impairment                                                          |   |                               | — |   |   |   | — |   |
| Subsequent credit impairments                                                      |   |                               | — |   |   |   | 37 |   |
| Reductions for amounts recognized in earnings due to intent or requirement to sell |   |                               | — |   |   |   | — |   |
| Reductions for securities sold                                                     |   |                               | — |   |   |   | — |   |
| Reductions for securities deemed worthless                                         |   |                               | — |   |   |   | 235 |   |
| Reductions for increases in cash flows expected to be collected                    |   |                               | — |   |   |   | — |   |
| Ending balance                                                                     |   | $                                  | 1,551   |   |   | $ | 2,398 |   |

----

|                                |   | For the Six Months EndedJune 30, |    |
|-------------------------------------|--------|----------------------------------|---------|
|                                |   | 2012                             |    |   | 2011 |   |
|                                |   |                             |    |   |   |   |
|                                |   | (Amounts in thousands)           |    |
| Available for sale securities:      |   |                             |    |   |   |   |
| Realized gains                      |   | $                                | — |   |   | $ | — |   |
| Realized (losses)                   |   |                             | — |   |   |   | — |   |
| Other than temporary impairment     |   |                             | — |   |   |   | (57 | ) |
| Total available for sale securities |   | $                                | — |   |   | $ | (57 | ) |
|                                |   |                             |    |   |   |   |   |   |
| Held to maturity securities:        |   |                             |    |   |   |   |   |   |
| Realized gains                      |   | $                                | — |   |   | $ | — |   |
| Realized (losses)                   |   |                             | — |   |   |   | — |   |
| Other than temporary impairment     |   |                             | — |   |   |   | — |   |
| Total held to maturity securities   |   | $                                | — |   |   | $ | — |   |

|                                |   | For the Three Months EndedJune 30, |    |
|-------------------------------------|--------|------------------------------------|---------|
|                                |   | 2012                               |    |   | 2011 |   |
|                                |   |                               |    |   |   |   |
|                                |   | (Amounts in thousands)             |    |
| Available for sale securities:      |   |                               |    |   |   |   |
| Realized gains                      |   | $                                  | — |   |   | $ | — |   |
| Realized (losses)                   |   |                               | — |   |   |   | — |   |
| Other than temporary impairment     |   |                               | — |   |   |   | (37 | ) |
| Total available for sale securities |   | $                                  | — |   |   | $ | (37 | ) |
|                                |   |                               |    |   |   |   |   |   |
| Held to maturity securities:        |   |                               |    |   |   |   |   |   |
| Realized gains                      |   | $                                  | — |   |   | $ | — |   |
| Realized (losses)                   |   |                               | — |   |   |   | — |   |
| Other than temporary impairment     |   |                               | — |   |   |   | — |   |
| Total held to maturity securities   |   | $                                  | — |   |   | $ | — |   |

----

|                                  |   | June 30, 2012          |    | December 31, 2011 |
|---------------------------------------|--------|------------------------|---------|-------------------|
|                                  |   | Amount                 |    |              | Percentage of Total Loans |   | Amount |   | Percentage of Total Loans |
|                                  |   | (Amounts in thousands) |
| Commercial and Industrial             |   | $                      | 22,541  |              |   |   | 3.7 | % |   | $ | 24,136 |   |   |   | 3.9 | % |   |
| Real Estate Construction:             |   |                   |    |              |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Residential                           |   |                   | 11,325  |              |   |   | 1.9 |   |   |   | 21,287 |   |   |   | 3.4 |   |   |
| Commercial                            |   |                   | 41,694  |              |   |   | 6.9 |   |   |   | 50,361 |   |   |   | 8.1 |   |   |
| Real Estate Mortgage:                 |   |                   |    |              |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Commercial – Owner Occupied     |   |                   | 140,002 |              |   |   | 23.1 |   |   |   | 147,449 |   |   |   | 23.6 |   |   |
| Commercial – Non-owner Occupied |   |                   | 210,569 |              |   |   | 34.9 |   |   |   | 204,216 |   |   |   | 32.6 |   |   |
| Residential – 1 to 4 Family     |   |                   | 139,105 |              |   |   | 23.0 |   |   |   | 138,768 |   |   |   | 22.2 |   |   |
| Residential - Multifamily             |   |                   | 20,777  |              |   |   | 3.4 |   |   |   | 20,126 |   |   |   | 3.2 |   |   |
| Consumer                              |   |                   | 18,864  |              |   |   | 3.1 |   |   |   | 18,774 |   |   |   | 3.0 |   |   |
| Total Loans                           |   | $                      | 604,877 |              |   |   | 100.0 | % |   | $ | 625,117 |   |   |   | 100.0 | % |   |
|                                  |   |                   |    |              |   |   |   |   |   |   |   |   |   |   |   |   |   |

----

----

| June 30, 2012             | 30-59 Days Past Due    |    | 60-89 Days Past Due |   | Greater than 90 Days and NotAccruing |   | Total Past Due |   | Current |   |   | Total Loans |   | Loans > 90 Days and Accruing |
|---------------------------|------------------------|---------|---------------------|--------|--------------------------------------|--------|----------------|--------|---------|--------|--------|-------------|--------|---------------------------------|
|                      | (Amounts in thousands) |
|                      |                   |    |                |   |                                 |   |           |   |    |   |   |        |   |                            |   |   |   |   |   |   |
| Commercial                | $                      | — |                |   | —                              |   |           | 308    |    |   | 308    |        |   | 22,233                          |   |   | 22,541 |   |   | — |
| Real Estate Construction: |                   |    |                |   |                                 |   |           |   |    |   |   |        |   |                            |   |   |   |   |   |   |
| Residential               |                   | — |                |   | —                              |   |           | 1,833  |    |   | 1,833  |        |   | 9,492                           |   |   | 11,325 |   |   | — |
| Commercial                |                   | — |                |   | 1,698                                |   |           | 8,056  |    |   | 9,754  |        |   | 31,940                          |   |   | 41,694 |   |   | — |
| Real Estate Mortgage:     |                   |    |                |   |                                 |   |           |   |    |   |   |        |   |                            |   |   |   |   |   |   |
| Residential               |                   | 2,974   |                |   | —                              |   |           | 6,948  |    |   | 9,922  |        |   | 149,960                         |   |   | 159,882 |   |   | — |
| Commercial                |                   | — |                |   | 1,227                                |   |           | 25,538 |    |   | 26,765 |        |   | 323,806                         |   |   | 350,571 |   |   | — |
| Consumer                  |                   | 108     |                |   | —                              |   |           | 191    |    |   | 299    |        |   | 18,565                          |   |   | 18,864 |   |   | — |
| Total                     | $                      | 3,082   |                |   | 2,925                                |   |           | 42,874 |    |   | 48,881 |        |   | 555,996                         |   |   | 604,877 |   |   | — |
|                      |                   |    |                |   |                                 |   |           |   |    |   |   |        |   |                            |   |   |   |   |   |   |

| December 31, 2011         | 30-59 Days Past Due    |    | 60-89 Days Past Due |   | Greater than 90 Days and NotAccruing |   | Total Past Due |    | Current |   |   | Total Loans |   | Loans > 90 Days and Accruing |
|---------------------------|------------------------|---------|---------------------|--------|--------------------------------------|--------|----------------|---------|---------|--------|--------|-------------|--------|---------------------------------|
|                      | (Amounts in thousands) |
|                      |                   |    |                |   |                                 |   |           |    |    |   |   |        |   |                            |   |   |   |   |   |   |
| Commercial                | $                      | 603     |                | $      | —                              |   | $              | — |    | $      | 603    |        | $      | 23,533                          |   | $ | 24,136 |   | $ | — |
| Real Estate Construction: |                   |    |                |   |                                 |   |           |    |    |   |   |        |   |                            |   |   |   |   |   |   |
| Residential               |                   | 350     |                |   | —                              |   |           | 5,265   |    |   | 5,615  |        |   | 15,672                          |   |   | 21,287 |   |   | — |
| Commercial                |                   | — |                |   | —                              |   |           | 7,703   |    |   | 7,703  |        |   | 42,658                          |   |   | 50,361 |   |   | — |
| Real Estate Mortgage:     |                   |    |                |   |                                 |   |           |    |    |   |   |        |   |                            |   |   |   |   |   |   |
| Residential               |                   | 2,587   |                |   | —                              |   |           | 8,288   |    |   | 10,875 |        |   | 148,019                         |   |   | 158,894 |   |   | — |
| Commercial                |                   | 2,932   |                |   | —                              |   |           | 22,929  |    |   | 25,861 |        |   | 325,804                         |   |   | 351,665 |   |   | — |
| Consumer                  |                   | — |                |   | —                              |   |           | 274     |    |   | 274    |        |   | 18,500                          |   |   | 18,774 |   |   | — |
| Total                     | $                      | 6,472   |                | $      | —                              |   | $              | 44,459  |    | $      | 50,931 |        | $      | 574,186                         |   | $ | 625,117 |   | $ | — |
|                      |                   |    |                |   |                                 |   |           |    |    |   |   |        |   |                            |   |   |   |   |   |   |

----

----

| June 30, 2012                        |   | Recorded Investment    |    |   | Unpaid Principal Balance |   |    | Related Allowance |   |
|--------------------------------------|--------|------------------------|---------|--------|--------------------------|--------|---------|-------------------|--------|
|                                 |   | (Amounts in thousands) |    |
| With no related allowance recorded:  |   |                   |    |   |                     |   |    |              |   |
| Commercial                           |   | $                      | 808     |   |                     | $      | 875     |              |   | $ | — |   |
| Residential Real Estate Construction |   |                   | 1,833   |   |                     |   | 3,159   |              |   |   | — |   |
| Commercial Real Estate Construction  |   |                   | 6,457   |   |                     |   | 6,457   |              |   |   | — |   |
| Residential Real Estate Mortgage     |   |                   | 10,516  |   |                     |   | 10,710  |              |   |   | — |   |
| Commercial Real Estate Mortgage      |   |                   | 47,909  |   |                     |   | 50,968  |              |   |   | — |   |
| Consumer                             |   |                   | 191     |   |                     |   | 227     |              |   |   | — |   |
|                                 |   |                   | 67,714  |   |                     |   | 72,396  |              |   |   | — |   |
|                                 |   |                   |    |   |                     |   |    |              |   |   |   |   |
| With an allowance recorded:          |   |                   |    |   |                     |   |    |              |   |   |   |   |
| Commercial                           |   |                   | — |   |                     |   | — |              |   |   | — |   |
| Residential Real Estate Construction |   |                   | 935     |   |                     |   | 1,372   |              |   |   | 56 |   |
| Commercial Real Estate Construction  |   |                   | 1,599   |   |                     |   | 2,057   |              |   |   | 16 |   |
| Residential Real Estate Mortgage     |   |                   | 4,232   |   |                     |   | 4,268   |              |   |   | 682 |   |
| Commercial Real Estate Mortgage      |   |                   | 10,708  |   |                     |   | 10,708  |              |   |   | 71 |   |
| Consumer                             |   |                   | — |   |                     |   | — |              |   |   | — |   |
|                                 |   |                   | 17,474  |   |                     |   | 18,405  |              |   |   | 825 |   |
|                                 |   |                   |    |   |                     |   |    |              |   |   |   |   |
| Total:                               |   |                   |    |   |                     |   |    |              |   |   |   |   |
| Commercial                           |   |                   | 808     |   |                     |   | 875     |              |   |   | — |   |
| Residential Real Estate Construction |   |                   | 2,768   |   |                     |   | 4,531   |              |   |   | 56 |   |
| Commercial Real Estate Construction  |   |                   | 8,056   |   |                     |   | 8,514   |              |   |   | 16 |   |
| Residential Real Estate Mortgage     |   |                   | 14,748  |   |                     |   | 14,978  |              |   |   | 682 |   |
| Commercial Real Estate Mortgage      |   |                   | 58,617  |   |                     |   | 61,676  |              |   |   | 71 |   |
| Consumer                             |   |                   | 191     |   |                     |   | 227     |              |   |   | — |   |
|                                 |   | $                      | 85,188  |   |                     | $      | 90,801  |              |   | $ | 825 |   |

----

| June 30, 2011                        |   | Recorded Investment    |    |   | Unpaid Principal Balance |   |    | Related Allowance |   |
|--------------------------------------|--------|------------------------|---------|--------|--------------------------|--------|---------|-------------------|--------|
|                                 |   | (Amounts in thousands) |    |
| With no related allowance recorded:  |   |                   |    |   |                     |   |    |              |   |
| Commercial                           |   | $                      | 594     |   |                     | $      | 594     |              |   | $ | — |   |
| Residential Real Estate Construction |   |                   | 4,756   |   |                     |   | 4,947   |              |   |   | — |   |
| Commercial Real Estate Construction  |   |                   | 16,146  |   |                     |   | 16,146  |              |   |   | — |   |
| Residential Real Estate Mortgage     |   |                   | 6,818   |   |                     |   | 6,890   |              |   |   | — |   |
| Commercial Real Estate Mortgage      |   |                   | 30,210  |   |                     |   | 30,209  |              |   |   | — |   |
| Consumer                             |   |                   | — |   |                     |   | — |              |   |   | — |   |
|                                 |   |                   | 58,524  |   |                     |   | 58,786  |              |   |   | — |   |
|                                 |   |                   |    |   |                     |   |    |              |   |   |   |   |
| With an allowance recorded:          |   |                   |    |   |                     |   |    |              |   |   |   |   |
| Commercial                           |   |                   | — |   |                     |   | — |              |   |   | — |   |
| Residential Real Estate Construction |   |                   | 6,427   |   |                     |   | 7,628   |              |   |   | 1,449 |   |
| Commercial Real Estate Construction  |   |                   | 1,659   |   |                     |   | 2,248   |              |   |   | 344 |   |
| Residential Real Estate Mortgage     |   |                   | 12,620  |   |                     |   | 13,310  |              |   |   | 1,077 |   |
| Commercial Real Estate Mortgage      |   |                   | 18,127  |   |                     |   | 18,247  |              |   |   | 246 |   |
| Consumer                             |   |                   | — |   |                     |   | — |              |   |   | — |   |
|                                 |   |                   | 38,833  |   |                     |   | 41,433  |              |   |   | 3,116 |   |
|                                 |   |                   |    |   |                     |   |    |              |   |   |   |   |
| Total:                               |   |                   |    |   |                     |   |    |              |   |   |   |   |
| Commercial                           |   |                   | 594     |   |                     |   | 594     |              |   |   | — |   |
| Residential Real Estate Construction |   |                   | 11,183  |   |                     |   | 12,575  |              |   |   | 1,449 |   |
| Commercial Real Estate Construction  |   |                   | 17,805  |   |                     |   | 18,394  |              |   |   | 344 |   |
| Residential Real Estate Mortgage     |   |                   | 19,438  |   |                     |   | 20,200  |              |   |   | 1,077 |   |
| Commercial Real Estate Mortgage      |   |                   | 48,337  |   |                     |   | 48,456  |              |   |   | 246 |   |
| Consumer                             |   |                   | — |   |                     |   | — |              |   |   | — |   |
|                                 |   | $                      | 97,357  |   |                     | $      | 100,219 |              |   | $ | 3,116 |   |

----

|                                 | Six Months Ended June 30,   |   |
|--------------------------------------|-----------------------------|--------|
|                                 | 2012                        |   | 2011 |   |
|                                 | Average Recorded Investment |   | Interest Income Recognized |   | Average Recorded Investment |   | Interest Income Recognized |   |
|                                 | (Amounts in thousands)      |   |
| Commercial                           |                        | $      | 856 |   |   | $ | 11 |   |   | $ | 594 |   |   | $ | 10 |   |
| Residential Real Estate Construction |                        |   | 3,658 |   |   |   | 45 |   |   |   | 12,211 |   |   |   | 188 |   |
| Commercial Real Estate Construction  |                        |   | 8,130 |   |   |   | 3 |   |   |   | 17,800 |   |   |   | 263 |   |
| Residential Real Estate Mortgage     |                        |   | 14,887 |   |   |   | 234 |   |   |   | 20,526 |   |   |   | 313 |   |
| Commercial Real Estate Mortgage      |                        |   | 60,372 |   |   |   | 1,143 |   |   |   | 51,617 |   |   |   | 1,342 |   |
| Consumer                             |                        |   | 210 |   |   |   | 2 |   |   |   | — |   |   |   | — |   |
| Total                                |                        | $      | 88,113 |   |   | $ | 1,438 |   |   | $ | 102,748 |   |   | $ | 2,116 |   |

|                                 | Three Months Ended June 30, |   |
|--------------------------------------|-----------------------------|--------|
|                                 | 2012                        |   | 2011 |   |
|                                 | Average Recorded Investment |   | Interest Income Recognized |   | Average Recorded Investment |   | Interest Income Recognized |   |
|                                 | (Amounts in thousands)      |   |
| Commercial                           |                        | $      | 730 |   |   | $ | 11 |   |   | $ | 594 |   |   | $ | 7 |   |
| Residential Real Estate Construction |                        |   | 5,180 |   |   |   | 27 |   |   |   | 12,267 |   |   |   | 86 |   |
| Commercial Real Estate Construction  |                        |   | 12,296 |   |   |   | — |   |   |   | 19,332 |   |   |   | 96 |   |
| Residential Real Estate Mortgage     |                        |   | 14,938 |   |   |   | 122 |   |   |   | 20,771 |   |   |   | 162 |   |
| Commercial Real Estate Mortgage      |                        |   | 56,717 |   |   |   | 668 |   |   |   | 52,077 |   |   |   | 638 |   |
| Consumer                             |                        |   | 190 |   |   |   | 1 |   |   |   | — |   |   |   | — |   |
| Total                                |                        | $      | 90,051 |   |   | $ | 829 |   |   | $ | 105,041 |   |   | $ | 989 |   |

----

| ·   | Whether there is a period of current payment history under the current terms, typically 6 months; |
|--------------------|---------------------------------------------------------------------------------------------------|

| ·   | Whether the loan is current at the time of restructuring; and |
|--------------------|---------------------------------------------------------------|

| ·   | Whether we expect the loan to continue to perform under the restructured terms with a debt coverage ratio that complies with the Bank’s credit underwriting policy of 1.25 times debt service. |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| June 30, 2012                                        | TDRs in compliance with their modified terms and accruing interest |   |    | TDRs that are not accruing interest |   |   | Total   |   |
|------------------------------------------------------|--------------------------------------------------------------------|--------|---------|-------------------------------------|--------|--------|---------|--------|
|                                                 | Balance                                                            |   |    | Count                               |   |   | Balance |   |   | Count |   |   | Balance |   |   | Count |   |
|                                                 | (loan balances in thousands)                                       |   |
| Commercial                                           |                                                               | $      | 500     |                                |   |   | 1       |   |   | $ | 250 |   |   |   | 1 |   |   | $ | 750 |   |   |   | 2 |   |
| Residential  Real Estate Construction      |                                                               |   | 935     |                                |   |   | 2       |   |   |   | 497 |   |   |   | 1 |   |   |   | 1,432 |   |   |   | 3 |   |
| Commercial Real Estate Construction                  |                                                               |   | — |                                |   |   | — |   |   |   | 4,820 |   |   |   | 3 |   |   |   | 4,820 |   |   |   | 3 |   |
| Commercial Real Estate Mortgage - Owner Occupied     |                                                               |   | 5,916   |                                |   |   | 6       |   |   |   | 2,064 |   |   |   | 4 |   |   |   | 7,980 |   |   |   | 10 |   |
| Commercial Real Estate Mortgage - Non-owner Occupied |                                                               |   | 27,163  |                                |   |   | 9       |   |   |   | 7,512 |   |   |   | 4 |   |   |   | 34,675 |   |   |   | 13 |   |
| Residential Real Estate Mortgage -Multifamily        |                                                               |   | 380     |                                |   |   | 1       |   |   |   | 3,201 |   |   |   | 1 |   |   |   | 3,581 |   |   |   | 2 |   |
| Residential Real Estate Mortgage -1 to 4 family      |                                                               |   | 6,787   |                                |   |   | 6       |   |   |   | 2,536 |   |   |   | 5 |   |   |   | 9,323 |   |   |   | 11 |   |
| Consumer                                             |                                                               |   | — |                                |   |   | — |   |   |   | 137 |   |   |   | 1 |   |   |   | 137 |   |   |   | 1 |   |
| Total                                                |                                                               | $      | 41,681  |                                |   |   | 25      |   |   | $ | 21,017 |   |   |   | 20 |   |   | $ | 62,698 |   |   |   | 45 |   |

| December 31, 2011                                    | TDRs in compliance with their modified terms and accruing interest |   |    | TDRs that are not accruing interest |   |   | Total   |   |
|------------------------------------------------------|--------------------------------------------------------------------|--------|---------|-------------------------------------|--------|--------|---------|--------|
|                                                 | Balance                                                            |   |    | Count                               |   |   | Balance |   |   | Count |   |   | Balance |   |   | Count |   |
|                                                 | (loan balances in thousands)                                       |   |
| Commercial                                           |                                                               | $      | 603     |                                |   |   | 1       |   |   | $ | — |   |   |   | — |   |   | $ | 603 |   |   |   | 1 |   |
| Residential  Real Estate Construction      |                                                               |   | 2,195   |                                |   |   | 2       |   |   |   | 2,832 |   |   |   | 3 |   |   |   | 5,027 |   |   |   | 5 |   |
| Commercial Real Estate Construction                  |                                                               |   | 500     |                                |   |   | 1       |   |   |   | 4,350 |   |   |   | 2 |   |   |   | 4,850 |   |   |   | 3 |   |
| Commercial Real Estate Mortgage - Owner Occupied     |                                                               |   | 2,740   |                                |   |   | 5       |   |   |   | 4,450 |   |   |   | 6 |   |   |   | 7,190 |   |   |   | 11 |   |
| Commercial Real Estate Mortgage - Non-owner Occupied |                                                               |   | 28,232  |                                |   |   | 9       |   |   |   | 9,196 |   |   |   | 5 |   |   |   | 37,428 |   |   |   | 14 |   |
| Residential Real Estate Mortgage -Multifamily        |                                                               |   | 3,268   |                                |   |   | 1       |   |   |   | 515 |   |   |   | 2 |   |   |   | 3,783 |   |   |   | 3 |   |
| Residential Real Estate Mortgage -1 to 4 family      |                                                               |   | 3,605   |                                |   |   | 7       |   |   |   | 4,340 |   |   |   | 6 |   |   |   | 7,945 |   |   |   | 13 |   |
| Consumer                                             |                                                               |   | — |                                |   |   | — |   |   |   | 137 |   |   |   | 1 |   |   |   | 137 |   |   |   | 1 |   |
| Total                                                |                                                               | $      | 41,143  |                                |   |   | 26      |   |   | $ | 25,820 |   |   |   | 25 |   |   | $ | 66,963 |   |   |   | 51 |   |

----

| Troubled Debt Restructurings                                  |   | For the six months ended June 30, 2012 |    |   | For the six months ended June 30, 2011 |   |
|---------------------------------------------------------------|--------|----------------------------------------|---------|--------|----------------------------------------|--------|
|                                                          |   | Number of Contracts                    |    |   | Pre-Modification Recorded Investment   |   |   | Post-Modification Recorded Investment |   |   | Number of Contracts |   |   | Pre-Modification Recorded Investment |   |   | Post-Modification Recorded Investment |   |
|                                                          |   | (Dollars in Thousands)                 |    |
|                                                          |   |                                   |    |   |                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Commercial and Industrial                                     |   |                                   | 2       |   |                                   | $      | 750 |   |   | $ | 750 |   |   |   | 1 |   |   | $ | 594 |   |   | $ | 594 |   |
| Construction:                                                 |   |                                   |    |   |                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|     Residential                           |   |                                   | 1       |   |                                   |   | 415 |   |   |   | 415 |   |   |   | 1 |   |   |   | 959 |   |   |   | 959 |   |
|     Commercial                            |   |                                   | — |   |                                   |   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |
| Real Estate Mortgage:                                         |   |                                   |    |   |                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|     Commercial – Owner Occupied     |   |                                   | 1       |   |                                   |   | 3,220 |   |   |   | 3,220 |   |   |   | 1 |   |   |   | 315 |   |   |   | 315 |   |
|     Commercial – Non-owner Occupied |   |                                   | 2       |   |                                   |   | 2,919 |   |   |   | 2,919 |   |   |   | 3 |   |   |   | 5,543 |   |   |   | 5,543 |   |
|     Residential – 1-4 Family        |   |                                   | 2       |   |                                   |   | 3,965 |   |   |   | 3,965 |   |   |   | 4 |   |   |   | 6,250 |   |   |   | 6,250 |   |
|     Residential – Multifamily       |   |                                   | 1       |   |                                   |   | 380 |   |   |   | 380 |   |   |   | 2 |   |   |   | 506 |   |   |   | 506 |   |
| Consumer                                                      |   |                                   | — |   |                                   |   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |
| Total                                                         |   |                                   | 9       |   |                                   | $      | 11,649 |   |   | $ | 11,649 |   |   |   | 12 |   |   | $ | 14,167 |   |   | $ | 14,167 |   |

| Troubled Debt Restructurings                                  |   | For the three months ended June 30, 2012 |    |   | For the three months ended June 30, 2011 |   |
|---------------------------------------------------------------|--------|------------------------------------------|---------|--------|------------------------------------------|--------|
|                                                          |   | Number of Contracts                      |    |   | Pre-Modification Recorded Investment     |   |   | Post-Modification Recorded Investment |   |   | Number of Contracts |   |   | Pre-Modification Recorded Investment |   |   | Post-Modification Recorded Investment |   |
|                                                          |   | (Dollars in Thousands)                   |    |
|                                                          |   |                                     |    |   |                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Commercial and Industrial                                     |   |                                     | 2       |   |                                     | $      | 750 |   |   | $ | 750 |   |   |   | 1 |   |   | $ | 594 |   |   | $ | 594 |   |
| Construction:                                                 |   |                                     |    |   |                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|     Residential                           |   |                                     | 1       |   |                                     |   | 415 |   |   |   | 415 |   |   |   | 1 |   |   |   | 959 |   |   |   | 959 |   |
|     Commercial                            |   |                                     | — |   |                                     |   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |
| Real Estate Mortgage:                                         |   |                                     |    |   |                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|     Commercial – Owner Occupied     |   |                                     | 1       |   |                                     |   | 3,220 |   |   |   | 3,220 |   |   |   | 1 |   |   |   | 315 |   |   |   | 315 |   |
|     Commercial – Non-owner Occupied |   |                                     | 2       |   |                                     |   | 2,919 |   |   |   | 2,919 |   |   |   | 2 |   |   |   | 4,002 |   |   |   | 4,002 |   |
|     Residential – 1-4 Family        |   |                                     | 2       |   |                                     |   | 3,965 |   |   |   | 3,965 |   |   |   | 3 |   |   |   | 5,943 |   |   |   | 5,943 |   |
|     Residential – Multifamily       |   |                                     | 1       |   |                                     |   | 380 |   |   |   | 380 |   |   |   | 2 |   |   |   | 506 |   |   |   | 506 |   |
| Consumer                                                      |   |                                     | — |   |                                     |   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |
| Total                                                         |   |                                     | 9       |   |                                     | $      | 11,649 |   |   | $ | 11,649 |   |   |   | 10 |   |   | $ | 12,319 |   |   | $ | 12,319 |   |

----

|   Troubled Debt RestructuringsThat Subsequently Defaulted |   | For the six months ended June 30, 2012 |   | For the six months ended June, 30 2011 |
|----------------------------------------------------------------|--------|----------------------------------------|--------|----------------------------------------|
| Number of Contracts                                            |   | Recorded Investment                    |   | Number of Contracts                    |   | Recorded Investment |
|                                                           |   | (Dollars in Thousands)                 |
|                                                           |   |                                   |   |                                   |   |   |   |   |   |   |
| Commercial and Industrial                                      |   | 1                                      |   | $                                      | 603 |   | — |   | $ | — |
| Construction:                                                  |   |                                   |   |                                   |   |   |   |   |   |   |
|     Residential                            |   | 1                                      |   |                                   | 1,004 |   | — |   |   | — |
|     Commercial                             |   | 1                                      |   |                                   | 500 |   | — |   |   | — |
| Real Estate Mortgage:                                          |   |                                   |   |                                   |   |   |   |   |   |   |
|     Commercial – Owner Occupied      |   | —                                |   |                                   | — |   | 5 |   |   | 4,131 |
|     Commercial – Non-owner Occupied  |   | 2                                      |   |                                   | 3,623 |   | 1 |   |   | 121 |
|     Residential – 1-4 Family         |   | 3                                      |   |                                   | 776 |   | 1 |   |   | 929 |
|     Residential – Multifamily        |   | 1                                      |   |                                   | 3,267 |   | — |   |   | — |
| Consumer                                                       |   | —                                |   |                                   | — |   | — |   |   | — |
| Total                                                          |   | 9                                      |   | $                                      | 9,773 |   | 7 |   | $ | 5,181 |

| Troubled Debt RestructuringsThat Subsequently Defaulted       |   | For the three months ended June 30, 2012 |   | For the three months ended June, 30 2011 |
|---------------------------------------------------------------|--------|------------------------------------------|--------|------------------------------------------|
| Number of Contracts                                           |   | Recorded Investment                      |   | Number of Contracts                      |   | Recorded Investment |
|                                                          |   | (Dollars in Thousands)                   |
|                                                          |   |                                     |   |                                     |   |   |   |   |   |   |
| Commercial and Industrial                                     |   | —                                  |   | $                                        | — |   | — |   | $ | — |
| Construction:                                                 |   |                                     |   |                                     |   |   |   |   |   |   |
|     Residential                           |   | —                                  |   |                                     | — |   | — |   |   | — |
|     Commercial                            |   | 1                                        |   |                                     | 500 |   | — |   |   | — |
| Real Estate Mortgage:                                         |   |                                     |   |                                     |   |   |   |   |   |   |
|     Commercial – Owner Occupied     |   | —                                  |   |                                     | — |   | 1 |   |   | 1,667 |
|     Commercial – Non-owner Occupied |   | —                                  |   |                                     | — |   | — |   |   | — |
|     Residential – 1-4 Family        |   | 2                                        |   |                                     | 566 |   | — |   |   | — |
|     Residential – Multifamily       |   | —                                  |   |                                     | — |   | — |   |   | — |
| Consumer                                                      |   | —                                  |   |                                     | — |   | — |   |   | — |
| Total                                                         |   | 3                                        |   | $                                        | 1,066 |   | 1 |   | $ | 1,667 |

----

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

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

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

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

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

| 6.   | Substandard:  This classification represents more severe cases of #5 (OAEM) with characteristics that require increased monitoring.  Assets are characterized by the distinct possibility that the Bank will sustain some loss if the deficiencies are not corrected. Assets are inadequately protected by the current net worth and paying capacity of the borrower or of the collateral. Asset has a well-defined weakness or weaknesses that impairs the ability to repay debt and jeopardizes the timely liquidation or realization of the collateral at the asset’s net book value. |
|----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

----

|  At June 30, 2012               |   | Pass                   |    |   | OAEM   |   |    | Substandard |   |   | Doubtful |   |   | Total  |    |
|--------------------------------------|--------|------------------------|---------|--------|--------|--------|---------|-------------|--------|--------|----------|--------|--------|--------|---------|
|                                 |   | (Amounts in thousands) |    |
| Commercial                           |   | $                      | 15,341  |   |   | $      | 6,892   |        |   | $      | 308      |   |   | $      | — |   |   | $ | 22,541 |   |
| Residential Real Estate Construction |   |                   | 8,557   |   |   |   | — |        |   |   | 2,768    |   |   |   | — |   |   |   | 11,325 |   |
| Commercial Real Estate Construction  |   |                   | 18,215  |   |   |   | — |        |   |   | 23,479   |   |   |   | — |   |   |   | 41,694 |   |
| Residential Real Estate Mortgage     |   |                   | 143,057 |   |   |   | 6,742   |        |   |   | 10,083   |   |   |   | — |   |   |   | 159,882 |   |
| Commercial Real Estate Mortgage      |   |                   | 298,123 |   |   |   | 17,134  |        |   |   | 35,314   |   |   |   | — |   |   |   | 350,571 |   |
| Consumer                             |   |                   | 18,673  |   |   |   | — |        |   |   | 191      |   |   |   | — |   |   |   | 18,864 |   |
| Total                                |   | $                      | 501,966 |   |   | $      | 30,768  |        |   | $      | 72,143   |   |   | $      | — |   |   | $ | 604,877 |   |
|                                 |   |                   |    |   |   |   |    |        |   |   |     |   |   |   |    |   |   |   |   |   |

|  At December 31, 2011           |   | Pass                   |    |   | OAEM   |   |    | Substandard |   |   | Doubtful |   |   | Total  |    |
|--------------------------------------|--------|------------------------|---------|--------|--------|--------|---------|-------------|--------|--------|----------|--------|--------|--------|---------|
|                                 |   | (Amounts in thousands) |    |
| Commercial                           |   | $                      | 16,033  |   |   | $      | 7,500   |        |   | $      | 603      |   |   | $      | — |   |   | $ | 24,136 |   |
| Residential Real Estate Construction |   |                   | 12,327  |   |   |   | 350     |        |   |   | 8,610    |   |   |   | — |   |   |   | 21,287 |   |
| Commercial Real Estate Construction  |   |                   | 23,898  |   |   |   | — |        |   |   | 26,463   |   |   |   | — |   |   |   | 50,361 |   |
| Residential Real Estate Mortgage     |   |                   | 136,919 |   |   |   | 7,628   |        |   |   | 14,347   |   |   |   | — |   |   |   | 158,894 |   |
| Commercial Real Estate Mortgage      |   |                   | 293,477 |   |   |   | 14,270  |        |   |   | 43,918   |   |   |   | — |   |   |   | 351,665 |   |
| Consumer                             |   |                   | 18,500  |   |   |   | — |        |   |   | 274      |   |   |   | — |   |   |   | 18,774 |   |
| Total                                |   | $                      | 501,154 |   |   | $      | 29,748  |        |   | $      | 94,215   |   |   | $      | — |   |   | $ | 625,117 |   |
|                                 |   |                   |    |   |   |   |    |        |   |   |     |   |   |   |    |   |   |   |   |   |

----

----

| Allowance for Loan Losses:            |   | For the six month period ended June 30, 2012 |   |
|---------------------------------------|--------|----------------------------------------------|--------|
|                                  |   | Beginning Balance                            |   |   | Charge-offs |   |   | Recoveries |   |   | Provisions |   |   | Ending Balance |   |
|                                  |   | (Amounts in thousands)                       |   |
| Commercial and Industrial             |   | $                                            | 451    |   |   | $ | (66 | ) |   | $ | — |   |   | $ | 109 |   |   | $ | 494 |   |
| Real Estate Construction:             |   |                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Residential                           |   |                                         | 2,613  |   |   |   | (1,289 | ) |   |   | 37 |   |   |   | (71 | ) |   |   | 1,290 |   |
| Commercial                            |   |                                         | 1,971  |   |   |   | (311 | ) |   |   | — |   |   |   | (179 | ) |   |   | 1,481 |   |
| Real Estate Mortgage:                 |   |                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Commercial – Owner Occupied     |   |                                         | 2,714  |   |   |   | (748 | ) |   |   | — |   |   |   | 1,555 |   |   |   | 3,521 |   |
| Commercial – Non-owner Occupied |   |                                         | 6,742  |   |   |   | (2,938 | ) |   |   | — |   |   |   | 2,464 |   |   |   | 6,268 |   |
| Residential – 1 to 4 Family     |   |                                         | 4,190  |   |   |   | (350 | ) |   |   | 403 |   |   |   | 165 |   |   |   | 4,408 |   |
| Residential – Multifamily       |   |                                         | 278    |   |   |   | — |   |   |   | — |   |   |   | (10 | ) |   |   | 268 |   |
| Consumer                              |   |                                         | 148    |   |   |   | (36 | ) |   |   | — |   |   |   | 66 |   |   |   | 178 |   |
| Unallocated                           |   |                                         | 216    |   |   |   | — |   |   |   | — |   |   |   | 201 |   |   |   | 417 |   |
| Total                                 |   | $                                            | 19,323 |   |   | $ | (5,738 | ) |   | $ | 440 |   |   | $ | 4,300 |   |   | $ | 18,325 |   |

| Allowance for Loan Losses:            |   | For the six month period ended June 30, 2011 |   |
|---------------------------------------|--------|----------------------------------------------|--------|
|                                  |   | Beginning Balance                            |   |   | Charge-offs |   |   | Recoveries |   |   | Provisions |   |   | Ending Balance |   |
|                                  |   | (Amounts in thousands)                       |   |
| Commercial and Industrial             |   | $                                            | 448    |   |   | $ | (22 | ) |   | $ | — |   |   | $ | 70 |   |   | $ | 496 |   |
| Real Estate Construction:             |   |                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Residential                           |   |                                         | 2,980  |   |   |   | (2,727 | ) |   |   | — |   |   |   | 2,241 |   |   |   | 2,494 |   |
| Commercial                            |   |                                         | 1,576  |   |   |   | — |   |   |   | — |   |   |   | 501 |   |   |   | 2,077 |   |
| Real Estate Mortgage:                 |   |                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Commercial – Owner Occupied     |   |                                         | 2,508  |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | 2,508 |   |
| Commercial – Non-owner Occupied |   |                                         | 3,792  |   |   |   | — |   |   |   | — |   |   |   | 660 |   |   |   | 4,452 |   |
| Residential – 1 to 4 Family     |   |                                         | 2,848  |   |   |   | — |   |   |   | — |   |   |   | 846 |   |   |   | 3,694 |   |
| Residential – Multifamily       |   |                                         | 372    |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | 372 |   |
| Consumer                              |   |                                         | 130    |   |   |   | — |   |   |   | — |   |   |   | 13 |   |   |   | 143 |   |
| Unallocated                           |   |                                         | 135    |   |   |   | — |   |   |   | — |   |   |   | 169 |   |   |   | 304 |   |
| Total                                 |   | $                                            | 14,789 |   |   | $ | (2,749 | ) |   | $ | — |   |   | $ | 4,500 |   |   | $ | 16,540 |   |

----

|                                  |   | For the three month period ended June 30, 2012 |   |
|---------------------------------------|--------|------------------------------------------------|--------|
|                                  |   | Beginning Balance                              |   |   | Charge-offs |   |   | Recoveries |   |   | Provisions |   |   | Ending Balance |   |
|                                  |   | (Amounts in thousands)                         |   |
| Commercial and Industrial             |   | $                                              | 441    |   |   | $ | (66 | ) |   | $ | — |   |   | $ | 119 |   |   | $ | 494 |   |
| Real Estate Construction:             |   |                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Residential                           |   |                                           | 1,923  |   |   |   | (437 | ) |   |   | — |   |   |   | (196 | ) |   |   | 1,290 |   |
| Commercial                            |   |                                           | 1,513  |   |   |   | (180 | ) |   |   | — |   |   |   | 148 |   |   |   | 1,481 |   |
| Real Estate Mortgage:                 |   |                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Commercial – Owner Occupied     |   |                                           | 2,833  |   |   |   | (748 | ) |   |   | — |   |   |   | 1,436 |   |   |   | 3,521 |   |
| Commercial – Non-owner Occupied |   |                                           | 5,996  |   |   |   | (139 | ) |   |   | — |   |   |   | 411 |   |   |   | 6,268 |   |
| Residential – 1 to 4 Family     |   |                                           | 4,181  |   |   |   | (78 | ) |   |   | 402 |   |   |   | (97 | ) |   |   | 4,408 |   |
| Residential – Multifamily       |   |                                           | 254    |   |   |   | — |   |   |   | — |   |   |   | 14 |   |   |   | 268 |   |
| Consumer                              |   |                                           | 182    |   |   |   | (36 | ) |   |   | — |   |   |   | 32 |   |   |   | 178 |   |
| Unallocated                           |   |                                           | 234    |   |   |   | — |   |   |   | — |   |   |   | 185 |   |   |   | 417 |   |
| Total                                 |   | $                                              | 17,557 |   |   | $ | (1,684 | ) |   | $ | 402 |   |   | $ | 2,050 |   |   | $ | 18,325 |   |

|                                  |   | For the three month period ended June 30, 2011 |   |
|---------------------------------------|--------|------------------------------------------------|--------|
|                                  |   | Beginning Balance                              |   |   | Charge-offs |   |   | Recoveries |   |   | Provisions |   |   | Ending Balance |   |
|                                  |   | (Amounts in thousands)                         |   |
| Commercial and Industrial             |   | $                                              | 453    |   |   | $ | — |   |   | $ | — |   |   | $ | 43 |   |   | $ | 496 |   |
| Real Estate Construction:             |   |                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Residential                           |   |                                           | 2,315  |   |   |   | (31 | ) |   |   | — |   |   |   | 210 |   |   |   | 2,494 |   |
| Commercial                            |   |                                           | 2,050  |   |   |   | — |   |   |   | — |   |   |   | 27 |   |   |   | 2,077 |   |
| Real Estate Mortgage:                 |   |                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Commercial – Owner Occupied     |   |                                           | 2,495  |   |   |   | — |   |   |   | — |   |   |   | 13 |   |   |   | 2,508 |   |
| Commercial – Non-owner Occupied |   |                                           | 3,827  |   |   |   | — |   |   |   | — |   |   |   | 625 |   |   |   | 4,452 |   |
| Residential – 1 to 4 Family     |   |                                           | 3,055  |   |   |   | (323 | ) |   |   | — |   |   |   | 962 |   |   |   | 3,694 |   |
| Residential – Multifamily       |   |                                           | 332    |   |   |   | — |   |   |   | — |   |   |   | 40 |   |   |   | 372 |   |
| Consumer                              |   |                                           | 132    |   |   |   | — |   |   |   | — |   |   |   | 11 |   |   |   | 143 |   |
| Unallocated                           |   |                                           | 135    |   |   |   | — |   |   |   | — |   |   |   | 169 |   |   |   | 304 |   |
| Total                                 |   | $                                              | 14,794 |   |   | $ | (354 | ) |   | $ | — |   |   | $ | 2,100 |   |   | $ | 16,540 |   |

----

| Allowance for Loan Losses, at June 30, 2012 |   | Individually evaluated for impairment |    |   | Collectively evaluated for impairment |   |   | Total  |   |
|---------------------------------------------|--------|---------------------------------------|---------|--------|---------------------------------------|--------|--------|--------|--------|
|                                        |   | (Amounts in thousands)                |    |
| Commercial and Industrial                   |   | $                                     | — |   |                                  | $      | 494    |   |   | $ | 494 |   |
| Real Estate Construction:                   |   |                                  |    |   |                                  |   |   |   |   |   |   |   |
| Residential                                 |   |                                  | 56      |   |                                  |   | 1,234  |   |   |   | 1,290 |   |
| Commercial                                  |   |                                  | 16      |   |                                  |   | 1,465  |   |   |   | 1,481 |   |
| Real Estate Mortgage:                       |   |                                  |    |   |                                  |   |   |   |   |   |   |   |
| Commercial – Owner Occupied           |   |                                  | 58      |   |                                  |   | 3,463  |   |   |   | 3,521 |   |
| Commercial – Non-owner Occupied       |   |                                  | 13      |   |                                  |   | 6,255  |   |   |   | 6,268 |   |
| Residential – 1 to 4 Family           |   |                                  | 682     |   |                                  |   | 3,726  |   |   |   | 4,408 |   |
| Residential – Multifamily             |   |                                  | — |   |                                  |   | 268    |   |   |   | 268 |   |
| Consumer                                    |   |                                  | — |   |                                  |   | 178    |   |   |   | 178 |   |
| Unallocated                                 |   |                                  | — |   |                                  |   | 417    |   |   |   | 417 |   |
| Total                                       |   | $                                     | 825     |   |                                  | $      | 17,500 |   |   | $ | 18,325 |   |

| Allowance for Loan Losses, at December 31, 2011 |   | Individually evaluated for impairment |    |   | Collectively evaluated for impairment |   |   | Total  |   |
|-------------------------------------------------|--------|---------------------------------------|---------|--------|---------------------------------------|--------|--------|--------|--------|
|                                            |   | (Amounts in thousands)                |    |
| Commercial and Industrial                       |   | $                                     | — |   |                                  | $      | 451    |   |   | $ | 451 |   |
| Real Estate Construction:                       |   |                                  |    |   |                                  |   |   |   |   |   |   |   |
| Residential                                     |   |                                  | 1,297   |   |                                  |   | 1,316  |   |   |   | 2,613 |   |
| Commercial                                      |   |                                  | 380     |   |                                  |   | 1,591  |   |   |   | 1,971 |   |
| Real Estate Mortgage:                           |   |                                  |    |   |                                  |   |   |   |   |   |   |   |
| Commercial – Owner Occupied               |   |                                  | 23      |   |                                  |   | 2,691  |   |   |   | 2,714 |   |
| Commercial – Non-owner Occupied           |   |                                  | 2,526   |   |                                  |   | 4,216  |   |   |   | 6,742 |   |
| Residential – 1 to 4 Family               |   |                                  | 600     |   |                                  |   | 3,590  |   |   |   | 4,190 |   |
| Residential – Multifamily                 |   |                                  | 33      |   |                                  |   | 245    |   |   |   | 278 |   |
| Consumer                                        |   |                                  | — |   |                                  |   | 148    |   |   |   | 148 |   |
| Unallocated                                     |   |                                  | — |   |                                  |   | 216    |   |   |   | 216 |   |
| Total                                           |   | $                                     | 4,859   |   |                                  | $      | 14,464 |   |   | $ | 19,323 |   |

----

|  Loans, at June 30, 2012:        |   | Individually evaluated for impairment |   |   | Collectively evaluated for impairment |   |    | Total  |   |
|---------------------------------------|--------|---------------------------------------|--------|--------|---------------------------------------|--------|---------|--------|--------|
|                                  |   | (Amounts in thousands)                |   |
| Commercial and Industrial             |   | $                                     | 808    |   |                                  | $      | 21,733  |   |   | $ | 22,541 |   |
| Real Estate Construction:             |   |                                  |   |   |                                  |   |    |   |   |   |   |   |
| Residential                           |   |                                  | 2,768  |   |                                  |   | 8,557   |   |   |   | 11,325 |   |
| Commercial                            |   |                                  | 8,056  |   |                                  |   | 33,638  |   |   |   | 41,694 |   |
| Real Estate Mortgage:                 |   |                                  |   |   |                                  |   |    |   |   |   |   |   |
| Commercial – Owner Occupied     |   |                                  | 8,481  |   |                                  |   | 131,521 |   |   |   | 140,002 |   |
| Commercial – Non-owner Occupied |   |                                  | 50,136 |   |                                  |   | 160,433 |   |   |   | 210,569 |   |
| Residential – 1 to 4 Family     |   |                                  | 11,167 |   |                                  |   | 127,938 |   |   |   | 139,105 |   |
| Residential – Multifamily       |   |                                  | 3,581  |   |                                  |   | 17,196  |   |   |   | 20,777 |   |
| Consumer                              |   |                                  | 191    |   |                                  |   | 18,673  |   |   |   | 18,864 |   |
| Total                                 |   | $                                     | 85,188 |   |                                  | $      | 519,689 |   |   | $ | 604,877 |   |

|  Loans, at December 31, 2011:    |   | Individually evaluated for impairment |   |   | Collectively evaluated for impairment |   |    | Total  |   |
|---------------------------------------|--------|---------------------------------------|--------|--------|---------------------------------------|--------|---------|--------|--------|
|                                  |   | (Amounts in thousands)                |   |
| Commercial and Industrial             |   | $                                     | 603    |   |                                  | $      | 23,533  |   |   | $ | 24,136 |   |
| Real Estate Construction:             |   |                                  |   |   |                                  |   |    |   |   |   |   |   |
| Residential                           |   |                                  | 8,610  |   |                                  |   | 12,677  |   |   |   | 21,287 |   |
| Commercial                            |   |                                  | 16,227 |   |                                  |   | 34,134  |   |   |   | 50,361 |   |
| Real Estate Mortgage:                 |   |                                  |   |   |                                  |   |    |   |   |   |   |   |
| Commercial – Owner Occupied     |   |                                  | 7,536  |   |                                  |   | 139,913 |   |   |   | 147,449 |   |
| Commercial – Non-owner Occupied |   |                                  | 48,244 |   |                                  |   | 155,972 |   |   |   | 204,216 |   |
| Residential – 1 to 4 Family     |   |                                  | 11,865 |   |                                  |   | 126,903 |   |   |   | 138,768 |   |
| Residential – Multifamily       |   |                                  | 3,865  |   |                                  |   | 16,261  |   |   |   | 20,126 |   |
| Consumer                              |   |                                  | 229    |   |                                  |   | 18,545  |   |   |   | 18,774 |   |
| Total                                 |   | $                                     | 97,179 |   |                                  | $      | 527,938 |   |   | $ | 625,117 |   |

----

|                                 |   | Actual |    |   | For Capital Adequacy Purposes |   |   | To be Well- Capitalized Under Prompt Corrective Action Provisions |   |
|--------------------------------------|--------|--------|---------|--------|-------------------------------|--------|--------|-------------------------------------------------------------------|--------|
| Parke Bancorp, Inc.                  |   | Amount |    |   | Ratio                         |   |   | Amount                                                            |   |   | Ratio |   |   | Amount |   |   | Ratio |   |
|                                 |   |   |    |   |                          |   |   |                                                              |   |   |   |   |   |   |   |   |   |   |
| As of June 30, 2012                  |   |   |    |   |                          |   |   |                                                              |   |   |   |   |   |   |   |   |   |   |
| (amounts in thousands except ratios) |   |   |    |   |                          |   |   |                                                              |   |   |   |   |   |   |   |   |   |   |
|                                 |   |   |    |   |                          |   |   |                                                              |   |   |   |   |   |   |   |   |   |   |
| Total Risk Based Capital             |   | $      | 101,989 |   |                          |   | 16.21  | %                                                                 |   | $ | 50,331 |   |   |   | 8 | % |   |   | N/A |   |   |   | N/A |   |
| (to Risk Weighted Assets)            |   |   |    |   |                          |   |   |                                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                 |   |   |    |   |                          |   |   |                                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Tier 1 Capital                       |   | $      | 94,113  |   |                          |   | 14.96  | %                                                                 |   | $ | 25,166 |   |   |   | 4 | % |   |   | N/A |   |   |   | N/A |   |
| (to Risk Weighted Assets)            |   |   |    |   |                          |   |   |                                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                 |   |   |    |   |                          |   |   |                                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Tier 1 Capital                       |   | $      | 94,113  |   |                          |   | 12.09  | %                                                                 |   | $ | 31,143 |   |   |   | 4 | % |   |   | N/A |   |   |   | N/A |   |
| (to Average Assets)                  |   |   |    |   |                          |   |   |                                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

|                                 |   | Actual |   |   | For Capital Adequacy Purposes |   |   | To be Well- Capitalized Under Prompt Corrective Action Provisions |   |
|--------------------------------------|--------|--------|--------|--------|-------------------------------|--------|--------|-------------------------------------------------------------------|--------|
| Parke Bancorp, Inc.                  |   | Amount |   |   | Ratio                         |   |   | Amount                                                            |   |   | Ratio |   |   | Amount |   |   | Ratio |   |
|                                 |   |   |   |   |                          |   |   |                                                              |   |   |   |   |   |   |   |   |   |   |
| As of December 31, 2011              |   |   |   |   |                          |   |   |                                                              |   |   |   |   |   |   |   |   |   |   |
| (amounts in thousands except ratios) |   |   |   |   |                          |   |   |                                                              |   |   |   |   |   |   |   |   |   |   |
|                                 |   |   |   |   |                          |   |   |                                                              |   |   |   |   |   |   |   |   |   |   |
| Total Risk Based Capital             |   | $      | 98,992 |   |                          |   | 15.46  | %                                                                 |   | $ | 51,209 |   |   |   | 8 | % |   |   | N/A |   |   |   | N/A |   |
| (to Risk Weighted Assets)            |   |   |   |   |                          |   |   |                                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                 |   |   |   |   |                          |   |   |                                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Tier 1 Capital                       |   | $      | 90,851 |   |                          |   | 14.19  | %                                                                 |   | $ | 25,604 |   |   |   | 4 | % |   |   | N/A |   |   |   | N/A |   |
| (to Risk Weighted Assets)            |   |   |   |   |                          |   |   |                                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                 |   |   |   |   |                          |   |   |                                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Tier 1 Capital                       |   | $      | 90,851 |   |                          |   | 12.06  | %                                                                 |   | $ | 30,122 |   |   |   | 4 | % |   |   | N/A |   |   |   | N/A |   |
| (to Average Assets)                  |   |   |   |   |                          |   |   |                                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

----

|                                 |   | Actual |    |   | For Capital Adequacy Purposes |   |   | To be Well- Capitalized Under Prompt Corrective Action Provisions |   |
|--------------------------------------|--------|--------|---------|--------|-------------------------------|--------|--------|-------------------------------------------------------------------|--------|
| Parke Bank                           |   | Amount |    |   | Ratio                         |   |   | Amount                                                            |   |   | Ratio |   |   | Amount |   |   | Ratio |   |
|                                 |   |   |    |   |                          |   |   |                                                              |   |   |   |   |   |   |   |   |   |   |
|                                 |   |   |    |   |                          |   |   |                                                              |   |   |   |   |   |   |   |   |   |   |
| As of June 30, 2012                  |   |   |    |   |                          |   |   |                                                              |   |   |   |   |   |   |   |   |   |   |
| (amounts in thousands except ratios) |   |   |    |   |                          |   |   |                                                              |   |   |   |   |   |   |   |   |   |   |
|                                 |   |   |    |   |                          |   |   |                                                              |   |   |   |   |   |   |   |   |   |   |
| Total Risk Based Capital             |   | $      | 102,047 |   |                          |   | 16.22  | %                                                                 |   | $ | 50,331 |   |   |   | 8 | % |   | $ | 62,914 |   |   |   | 10 | % |
| (to Risk Weighted Assets)            |   |   |    |   |                          |   |   |                                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                 |   |   |    |   |                          |   |   |                                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Tier 1 Capital                       |   | $      | 94,171  |   |                          |   | 14.97  | %                                                                 |   | $ | 25,166 |   |   |   | 4 | % |   | $ | 37,748 |   |   |   | 6 | % |
| (to Risk Weighted Assets)            |   |   |    |   |                          |   |   |                                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                 |   |   |    |   |                          |   |   |                                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Tier 1 Capital                       |   | $      | 94,171  |   |                          |   | 12.10  | %                                                                 |   | $ | 31,143 |   |   |   | 4 | % |   | $ | 38,929 |   |   |   | 5 | % |
| (to Average Assets)                  |   |   |    |   |                          |   |   |                                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

|                                 |   | Actual |   |   | For Capital Adequacy Purposes |   |   | To be Well- Capitalized Under Prompt Corrective Action Provisions |   |
|--------------------------------------|--------|--------|--------|--------|-------------------------------|--------|--------|-------------------------------------------------------------------|--------|
| Parke Bank                           |   | Amount |   |   | Ratio                         |   |   | Amount                                                            |   |   | Ratio |   |   | Amount |   |   | Ratio |   |
|                                 |   |   |   |   |                          |   |   |                                                              |   |   |   |   |   |   |   |   |   |   |
|                                 |   |   |   |   |                          |   |   |                                                              |   |   |   |   |   |   |   |   |   |   |
| As of December 31, 2011              |   |   |   |   |                          |   |   |                                                              |   |   |   |   |   |   |   |   |   |   |
| (amounts in thousands except ratios) |   |   |   |   |                          |   |   |                                                              |   |   |   |   |   |   |   |   |   |   |
|                                 |   |   |   |   |                          |   |   |                                                              |   |   |   |   |   |   |   |   |   |   |
| Total Risk Based Capital             |   | $      | 98,817 |   |                          |   | 15.44  | %                                                                 |   | $ | 51,208 |   |   |   | 8 | % |   | $ | 64,010 |   |   |   | 10 | % |
| (to Risk Weighted Assets)            |   |   |   |   |                          |   |   |                                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                 |   |   |   |   |                          |   |   |                                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Tier 1 Capital                       |   | $      | 90,676 |   |                          |   | 14.17  | %                                                                 |   | $ | 25,604 |   |   |   | 4 | % |   | $ | 38,406 |   |   |   | 6 | % |
| (to Risk Weighted Assets)            |   |   |   |   |                          |   |   |                                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                 |   |   |   |   |                          |   |   |                                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Tier 1 Capital                       |   | $      | 90,676 |   |                          |   | 12.04  | %                                                                 |   | $ | 30,122 |   |   |   | 4 | % |   | $ | 37,652 |   |   |   | 5 | % |
| (to Average Assets)                  |   |   |   |   |                          |   |   |                                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

----

|                                                 | June 30,2012 |   |   | December 31, 2011 |   |
|------------------------------------------------------|--------------|--------|--------|-------------------|--------|
|                                                 |         |   |   |              |   |   |
| Securities                                           |         |   |   |              |   |   |
| Non-credit unrealized losses on securities with OTTI |         | $      | (492   | )                 |   | $ | (524 | ) |
| Unrealized losses on securities without OTTI         |         |   | (202   | )                 |   |   | (252 | ) |
| Minimum pension liability                            |         |   | (256   | )                 |   |   | (268 | ) |
| Tax impact                                           |         |   | 380    |              |   |   | 418 |   |
| Other comprehensive income                           |         | $      | (570   | )                 |   | $ | (626 | ) |

----

| 1) | Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities. |
|----|-------------------------------------------------------------------------------------------------------------------------------------------|

| 1) | Quoted prices for similar assets or liabilities in active markets. |
|----|--------------------------------------------------------------------|

| 2) | Quoted prices for identical or similar assets or liabilities in markets that are not active. |
|----|----------------------------------------------------------------------------------------------|

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

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

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

----

----

| Financial Assets                          |   | Level 1                |    |   | Level 2 |   |    | Level 3 |   |   | Total   |   |
|-------------------------------------------|--------|------------------------|---------|--------|---------|--------|---------|---------|--------|--------|---------|--------|
|                                      |   | (amounts in thousands) |    |
| Securities Available for Sale             |   |                   |    |   |    |   |    |    |   |   |    |   |
|                                      |   |                   |    |   |    |   |    |    |   |   |    |   |
| As of June 30, 2012                       |   |                   |    |   |    |   |    |    |   |   |    |   |
| U.S. Government sponsored entities        |   | $                      | — |   |    | $      | 7       |    |   | $      | — |   |   | $ | 7 |   |
| Corporate debt obligations                |   |                   | — |   |    |   | 1,545   |    |   |   | — |   |   |   | 1,545 |   |
| Residential mortgage-backed securities    |   |                   | — |   |    |   | 16,648  |    |   |   | — |   |   |   | 16,648 |   |
| Collateralized mortgage-backed securities |   |                   |    |   |    |   | 1,194   |    |   |   | 84      |   |   |   | 1,278 |   |
| Collateralized debt obligations           |   |                   | — |   |    |   | — |    |   |   | 3,950   |   |   |   | 3,950 |   |
| Total                                     |   | $                      | — |   |    | $      | 19,394  |    |   | $      | 4,034   |   |   | $ | 23,428 |   |
|                                      |   |                   |    |   |    |   |    |    |   |   |    |   |   |   |   |   |
|  As of December 31, 2011             |   |                   |    |   |    |   |    |    |   |   |    |   |   |   |   |   |
| U.S. Government sponsored entities        |   | $                      | — |   |    | $      | 1,011   |    |   | $      | — |   |   | $ | 1,011 |   |
| Corporate debt obligations                |   |                   | — |   |    |   | 1,486   |    |   |   | — |   |   |   | 1,486 |   |
| Residential mortgage-backed securities    |   |                   | — |   |    |   | 14,461  |    |   |   | — |   |   |   | 14,461 |   |
| Collateralized mortgage-backed securities |   |                   |    |   |    |   | 1,437   |    |   |   | 157     |   |   |   | 1,594 |   |
| Collateralized debt obligations           |   |                   | — |   |    |   | — |    |   |   | 3,965   |   |   |   | 3,965 |   |
| Total                                     |   | $                      | — |   |    | $      | 18,395  |    |   | $      | 4,122   |   |   | $ | 22,517 |   |

----

|                                  |   | Securities Available for Sale |    |
|---------------------------------------|--------|-------------------------------|---------|
|                                  |   | 2012                          |    | 2011 |   |
|                                  |   | (amounts in thousands)        |    |
| Beginning balance at January 1,       |   | $                             | 4,122   |   |   | $ | 4,560 |   |
| Total net gains (losses) included in: |   |                          |    |   |   |   |   |   |
| Net income                            |   |                          | — |   |   |   | (129 | ) |
| Other comprehensive income (loss)     |   |                          | (88     | ) |   |   | (107 | ) |
| Settlements                           |   |                          | — |   |   |   | (202 | ) |
| Net transfers into Level 3            |   |                          | — |   |   |   | — |   |
| Ending balance June 30,               |   | $                             | 4,034   |   |   | $ | 4,122 |   |

| Financial Assets                                   |   | Level 1                |    |   | Level 2 |   |    | Level 3 |   |   | Total  |   |
|----------------------------------------------------|--------|------------------------|---------|--------|---------|--------|---------|---------|--------|--------|--------|--------|
|                                               |   | (amounts in thousands) |    |
| As of June 30, 2012                                |   |                   |    |   |    |   |    |    |   |   |   |   |
|       Impaired loans |   | $                      | — |   |    | $      | — |    |   | $      | 16,649 |   |   | $ | 16,649 |   |
|       OREO           |   |                   | — |   |    |   | — |    |   |   | 26,727 |   |   |   | 26,727 |   |
|                                               |   |                   |    |   |    |   |    |    |   |   |   |   |   |   |   |   |
| As of December 31, 2011                            |   |                   |    |   |    |   |    |    |   |   |   |   |   |   |   |   |
|       Impaired loans |   | $                      | — |   |    | $      | — |    |   | $      | 27,706 |   |   | $ | 27,706 |   |
| OREO                                               |   |                   | — |   |    |   | — |    |   |   | 19,410 |   |   |   | 19,410 |   |

----

----

|                                                            |   | Level in Fair Value Hierarchy |           | June 30, 2012          |      | December 31, 2011 |
|-----------------------------------------------------------------|--------|-------------------------------|----------------|------------------------|-----------|-------------------|
| Carrying Value                                                  |   | FairValue                     | Carrying Value |                   | FairValue |
|                                                            |   |                          |           | (Amounts in thousands) |
| Financial Assets:                                               |   |                          |           |
| Cash and cash equivalents                                       |   | Level 1                       |           | $                      | 118,979   |              | $ | 118,979 |   | $ | 110,228 |   | $ | 110,228 |
| Investment securities (available for sale and held to maturity) | (1)    |                          |           | 25,477                 |      |              | 25,582 |   |   | 24,549 |   |   | 24,597 |
| Restricted stock                                                |   | Level 2                       |           |                   | 2,227     |              |   | 2,227 |   |   | 3,565 |   |   | 3,565 |
| Loans held for sale                                             |   | Level 2                       |           |                   | —   |              |   | — |   |   | 225 |   |   | 225 |
| Loans, net                                                      |   | (2)                           |           |                   | 586,552   |              |   | 585,252 |   |   | 605,794 |   |   | 622,801 |
| Accrued interest receivable                                     |   | Level 2                       |           |                   | 2,969     |              |   | 2,969 |   |   | 3,039 |   |   | 3,039 |
|                                                            |   |                          |           |                   |      |              |   |   |   |   |   |   |   |   |
| Financial Liabilities:                                          |   |                          |           |                   |      |              |   |   |   |   |   |   |   |   |
| Demand and savings deposits                                     |   | Level 2                       |           | $                      | 374,843   |              | $ | 374,843 |   | $ | 356,440 |   | $ | 356,440 |
| Time deposits                                                   |   | Level 2                       |           |                   | 283,887   |              |   | 285,622 |   |   | 278,415 |   |   | 280,147 |
| Borrowings                                                      |   | Level 2                       |           |                   | 43,932    |              |   | 51,095 |   |   | 74,010 |   |   | 79,997 |
| Accrued interest payable                                        |   | Level 2                       |           |                   | 615       |              |   | 615 |   |   | 618 |   |   | 618 |

|               | For the six months ended June 30, |   | For the three months ended June 30, |   |
|--------------------|-----------------------------------|--------|-------------------------------------|--------|
|               | 2012                              |   | 2011                                |   | 2012 |   | 2011 |   |
|               | (Amount in thousands)             |   |
| Income Taxes       |                              |   |                                |   |   |   |   |   |   |   |   |   |
| Pre-tax Income     |                              | $      | 5,413                               |   |   | $ | 8,576 |   |   | $ | 2,247 |   |   | $ | 3,877 |   |
| Income Tax Expense |                              |   | 1,529                               |   |   |   | 3,444 |   |   |   | 257 |   |   |   | 1,564 |   |

----

|                                            |   | For the six months ended June 30, |      |   | For the three months ended June 30, |   |
|-------------------------------------------------|--------|-----------------------------------|-----------|--------|-------------------------------------|--------|
|                                            |   | 2012                              |      |   | 2011                                |   |   | 2012 |   |   | 2011 |   |
|                                            |   | (in thousands except share data)  |      |
| Basic earnings per common share                 |   |                              |      |   |                                |   |   |   |   |   |   |   |
| Net income available to common shareholders     |   | $                                 | 3,132     |   |                                | $      | 3,937 |   |   | $ | 1,596 |   |   | $ | 1,894 |   |
| Average common shares outstanding               |   |                              | 5,375,176 |   |                                |   | 5,374,561 |   |   |   | 5,375,792 |   |   |   | 5,374,561 |   |
| Basic earnings per common share                 |   | $                                 | 0.58      |   |                                | $      | 0.73 |   |   | $ | 0.30 |   |   | $ | 0.36 |   |
|                                            |   |                              |      |   |                                |   |   |   |   |   |   |   |   |   |   |   |
| Diluted earnings per common share               |   |                              |      |   |                                |   |   |   |   |   |   |   |   |   |   |   |
| Net income available to common shareholders     |   | $                                 | 3,132     |   |                                | $      | 3,937 |   |   | $ | 1,596 |   |   | $ | 1,894 |   |
| Average common shares outstanding               |   |                              | 5,375,176 |   |                                |   | 5,374,561 |   |   |   | 5,375,792 |   |   |   | 5,374,561 |   |
| Dilutive potential common shares                |   |                              | 4,582     |   |                                |   | 139,362 |   |   |   | 5,329 |   |   |   | 75,660 |   |
| Total diluted average common shares outstanding |   |                              | 5,379,758 |   |                                |   | 5,513,923 |   |   |   | 5,381,121 |   |   |   | 5,450,221 |   |
| Diluted earnings per common share               |   | $                                 | 0.58      |   |                                | $      | 0.71 |   |   | $ | 0.30 |   |   | $ | 0.35 |   |

----

----

----

|                                          |   | June 30, 2012                   |   |   | December 31, 2011 |   |
|-----------------------------------------------|--------|--------------------------------------|--------|--------|-------------------|--------|
|                                          |   | (amounts in thousands except ratios) |   |
| Commercial and industrial                     |   | $                                    | 308    |   |              | $      | — |   |
| Real estate construction:                     |   |                                 |   |   |              |   |   |   |
| Residential                                   |   |                                 | 1,833  |   |              |   | 5,265 |   |
| Commercial                                    |   |                                 | 8,056  |   |              |   | 7,703 |   |
| Real estate mortgage:                         |   |                                 |   |   |              |   |   |   |
| Commercial – owner occupied             |   |                                 | 2,565  |   |              |   | 4,797 |   |
| Commercial – non owner occupied         |   |                                 | 22,973 |   |              |   | 18,132 |   |
| Residential – 1 to 4 family             |   |                                 | 3,747  |   |              |   | 7,691 |   |
| Residential - Multifamily                     |   |                                 | 3,201  |   |              |   | 597 |   |
| Consumer                                      |   |                                 | 191    |   |              |   | 274 |   |
| Total                                         |   | $                                    | 42,874 |   |              | $      | 44,459 |   |
|                                          |   |                                 |   |   |              |   |   |   |
| Nonperforming  loans to total loans |   |                                 | 7.09   | %      |              |   | 7.11 | % |

----

|                                        |   | For the Six Months EndedJune 30, |   |
|---------------------------------------------|--------|----------------------------------|--------|
|                                        |   | 2012                             |   |   | 2011 |   |
|                                        |   | (amounts in thousands)           |   |
| Balance at beginning of period              |   | $                                | 19,410 |   |   | $ | 16,701 |   |
| Real estate acquired in settlement of loans |   |                             | 8,981  |   |   |   | 682 |   |
| Sales of real estate                        |   |                             | (1,246 | ) |   |   | (2,483 | ) |
| Gain (loss) on sale of real estate          |   |                             | (348   | ) |   |   | 52 |   |
| Write-down of real estate carrying values   |   |                             | (277   | ) |   |   | — |   |
| Capitalized improvements to real estate     |   |                             | 207    |   |   |   | 3,730 |   |
| Balance at end of period                    |   | $                                | 26,727 |   |   | $ | 18,682 |   |

----

----

|                                             |   | For the Six Months Ended June 30,          |    |
|--------------------------------------------------|--------|--------------------------------------------|---------|
|                                             |   | 2012                                       |    |   | 2011 |   |
|                                             |   | Average Balance                            |    |   | Interest Income/Expense |   |   | Yield/Cost |   |   | Average Balance |   |   | Interest Income/ Expense |   |   | Yield/Cost |   |
|                                             |   | (amounts in thousands, except percentages) |    |
| Assets                                           |   |                                       |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Loans                                            |   | $                                          | 617,360 |   |   | $ | 18,871 |   |   |   | 6.15 | % |   | $ | 635,866 |   |   | $ | 19,890 |   |   |   | 6.31 | % |
| Investment securities                            |   |                                       | 25,793  |   |   |   | 540 |   |   |   | 4.21 | % |   |   | 31,587 |   |   |   | 704 |   |   |   | 4.49 | % |
| Federal funds sold and cash equivalents          |   |                                       | 98,248  |   |   |   | 119 |   |   |   | 0.24 | % |   |   | 35,589 |   |   |   | 44 |   |   |   | 0.25 | % |
| Total interest-earning assets                    |   |                                       | 741,401 |   |   |   | 19,530 |   |   |   | 5.30 | % |   |   | 703,042 |   |   |   | 20,638 |   |   |   | 5.92 | % |
|                                             |   |                                       |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Other assets                                     |   |                                       | 55,650  |   |   |   |   |   |   |   |   |   |   |   | 49,631 |   |   |   |   |   |   |   |   |   |
| Allowance for loan losses                        |   |                                       | (18,867 | ) |   |   |   |   |   |   |   |   |   |   | (15,452 | ) |   |   |   |   |   |   |   |   |
| Total assets                                     |   | $                                          | 778,184 |   |   |   |   |   |   |   |   |   |   | $ | 737,221 |   |   |   |   |   |   |   |   |   |
|                                             |   |                                       |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Liabilities and Shareholders’ Equity       |   |                                       |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest bearing deposits                        |   |                                       |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| NOWs                                             |   | $                                          | 18,549  |   |   |   | 68 |   |   |   | 0.74 | % |   | $ | 15,076 |   |   |   | 74 |   |   |   | 0.99 | % |
| Money markets                                    |   |                                       | 96,348  |   |   |   | 414 |   |   |   | 0.86 | % |   |   | 91,921 |   |   |   | 497 |   |   |   | 1.09 | % |
| Savings                                          |   |                                       | 218,335 |   |   |   | 1,060 |   |   |   | 0.98 | % |   |   | 186,625 |   |   |   | 1,148 |   |   |   | 1.24 | % |
| Time deposits                                    |   |                                       | 259,035 |   |   |   | 1,775 |   |   |   | 1.38 | % |   |   | 224,436 |   |   |   | 1,780 |   |   |   | 1.60 | % |
| Brokered certificates of deposit                 |   |                                       | 24,131  |   |   |   | 142 |   |   |   | 1.18 | % |   |   | 49,903 |   |   |   | 506 |   |   |   | 2.04 | % |
| Total interest-bearing deposits                  |   |                                       | 616,398 |   |   |   | 3,459 |   |   |   | 1.13 | % |   |   | 567,961 |   |   |   | 4,005 |   |   |   | 1.42 | % |
| Borrowings                                       |   |                                       | 48,470  |   |   |   | 475 |   |   |   | 1.97 | % |   |   | 64,119 |   |   |   | 714 |   |   |   | 2.25 | % |
| Total interest-bearing liabilities               |   |                                       | 664,868 |   |   |   | 3,934 |   |   |   | 1.19 | % |   |   | 632,080 |   |   |   | 4,719 |   |   |   | 1.51 | % |
|                                             |   |                                       |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Non-interest bearing deposits                    |   |                                       | 29,677  |   |   |   |   |   |   |   |   |   |   |   | 21,450 |   |   |   |   |   |   |   |   |   |
| Other liabilities                                |   |                                       | 4,355   |   |   |   |   |   |   |   |   |   |   |   | 10,117 |   |   |   |   |   |   |   |   |   |
| Total liabilities                                |   |                                       | 698,900 |   |   |   |   |   |   |   |   |   |   |   | 663,647 |   |   |   |   |   |   |   |   |   |
| Shareholders’ equity                       |   |                                       | 79,284  |   |   |   |   |   |   |   |   |   |   |   | 73,574 |   |   |   |   |   |   |   |   |   |
| Total liabilities and shareholders’ equity |   | $                                          | 778,184 |   |   |   |   |   |   |   |   |   |   | $ | 737,221 |   |   |   |   |   |   |   |   |   |
| Net interest income                              |   |                                       |    |   |   | $ | 15,596 |   |   |   |   |   |   |   |   |   |   | $ | 15,919 |   |   |   |   |   |
| Interest rate spread                             |   |                                       |    |   |   |   |   |   |   |   | 4.11 | % |   |   |   |   |   |   |   |   |   |   | 4.41 | % |
| Net interest margin                              |   |                                       |    |   |   |   |   |   |   |   | 4.23 | % |   |   |   |   |   |   |   |   |   |   | 4.57 | % |

----

----

|                                             |   | For the Three Months Ended June 30,        |    |
|--------------------------------------------------|--------|--------------------------------------------|---------|
|                                             |   | 2012                                       |    |   | 2011 |   |
|                                             |   | Average Balance                            |    |   | Interest Income/Expense |   |   | Yield/Cost |   |   | Average Balance |   |   | Interest Income/ Expense |   |   | Yield/Cost |   |
|                                             |   | (amounts in thousands, except percentages) |    |
| Assets                                           |   |                                       |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Loans                                            |   | $                                          | 614,771 |   |   | $ | 9,358 |   |   |   | 6.12 | % |   | $ | 627,114 |   |   | $ | 10,074 |   |   |   | 6.44 | % |
| Investment securities                            |   |                                       | 24,894  |   |   |   | 252 |   |   |   | 4.07 | % |   |   | 31,081 |   |   |   | 330 |   |   |   | 4.26 | % |
| Federal funds sold and cash equivalents          |   |                                       | 101,204 |   |   |   | 66 |   |   |   | 0.26 | % |   |   | 43,236 |   |   |   | 27 |   |   |   | 0.25 | % |
| Total interest-earning assets                    |   |                                       | 740,869 |   |   |   | 9,676 |   |   |   | 5.25 | % |   |   | 701,431 |   |   |   | 10,431 |   |   |   | 5.96 | % |
|                                             |   |                                       |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Other assets                                     |   |                                       | 57,452  |   |   |   |   |   |   |   |   |   |   |   | 48,766 |   |   |   |   |   |   |   |   |   |
| Allowance for loan losses                        |   |                                       | (17,725 | ) |   |   |   |   |   |   |   |   |   |   | (15,426 | ) |   |   |   |   |   |   |   |   |
| Total assets                                     |   | $                                          | 780,596 |   |   |   |   |   |   |   |   |   |   | $ | 734,771 |   |   |   |   |   |   |   |   |   |
|                                             |   |                                       |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Liabilities and Shareholders’ Equity       |   |                                       |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest bearing deposits                        |   |                                       |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| NOWs                                             |   | $                                          | 19,009  |   |   |   | 34 |   |   |   | 0.72 | % |   | $ | 15,779 |   |   |   | 39 |   |   |   | 0.99 | % |
| Money markets                                    |   |                                       | 97,884  |   |   |   | 202 |   |   |   | 0.83 | % |   |   | 91,356 |   |   |   | 248 |   |   |   | 1.09 | % |
| Savings                                          |   |                                       | 221,936 |   |   |   | 514 |   |   |   | 0.93 | % |   |   | 192,614 |   |   |   | 595 |   |   |   | 1.24 | % |
| Time deposits                                    |   |                                       | 259,914 |   |   |   | 868 |   |   |   | 1.34 | % |   |   | 223,748 |   |   |   | 843 |   |   |   | 1.51 | % |
| Brokered certificates of deposit                 |   |                                       | 23,889  |   |   |   | 69 |   |   |   | 1.16 | % |   |   | 46,517 |   |   |   | 225 |   |   |   | 1.94 | % |
| Total interest-bearing deposits                  |   |                                       | 622,632 |   |   |   | 1,687 |   |   |   | 1.09 | % |   |   | 570,014 |   |   |   | 1,950 |   |   |   | 1.37 | % |
| Borrowings                                       |   |                                       | 43,945  |   |   |   | 233 |   |   |   | 2.13 | % |   |   | 64,100 |   |   |   | 362 |   |   |   | 2.27 | % |
| Total interest-bearing liabilities               |   |                                       | 666,577 |   |   |   | 1,920 |   |   |   | 1.16 | % |   |   | 634,114 |   |   |   | 2,312 |   |   |   | 1.46 | % |
|                                             |   |                                       |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Non-interest bearing deposits                    |   |                                       | 29,444  |   |   |   |   |   |   |   |   |   |   |   | 22,043 |   |   |   |   |   |   |   |   |   |
| Other liabilities                                |   |                                       | 4,733   |   |   |   |   |   |   |   |   |   |   |   | 4,017 |   |   |   |   |   |   |   |   |   |
| Total liabilities                                |   |                                       | 700,754 |   |   |   |   |   |   |   |   |   |   |   | 660,174 |   |   |   |   |   |   |   |   |   |
| Shareholders’ equity                       |   |                                       | 79,842  |   |   |   |   |   |   |   |   |   |   |   | 74,597 |   |   |   |   |   |   |   |   |   |
| Total liabilities and shareholders’ equity |   | $                                          | 780,596 |   |   |   |   |   |   |   |   |   |   | $ | 734,771 |   |   |   |   |   |   |   |   |   |
| Net interest income                              |   |                                       |    |   |   | $ | 7,756 |   |   |   |   |   |   |   |   |   |   | $ | 8,119 |   |   |   |   |   |
| Interest rate spread                             |   |                                       |    |   |   |   |   |   |   |   | 4.09 | % |   |   |   |   |   |   |   |   |   |   | 4.50 | % |
| Net interest margin                              |   |                                       |    |   |   |   |   |   |   |   | 4.21 | % |   |   |   |   |   |   |   |   |   |   | 4.64 | % |

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| ·   | Directs the Federal Reserve to issue rules which are expected to limit debit-card interchange fees; |
|--------------------|----------------------------------------------------------------------------------------------------------|

| ·   | Removes trust preferred securities issued after May 19, 2010, as a permitted component of a holding company’s Tier 1 capital and, after a three-year phase-in period beginning January 1, 2013, eliminates Tier 1 capital treatment for all trust preferred securities issued by holding companies with more than $15 billion in total consolidated assets; |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Provides for an increase in the FDIC assessment for depository institutions with assets of $10 billion or more, increases in the minimum reserve ratio for the deposit insurance fund from 1.15% to 1.35% and changes in the basis for determining FDIC premiums from deposits to assets; |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Creates a new consumer financial protection bureau that will have rulemaking authority for a wide range of consumer protection laws that would apply to all banks and would have broad powers to supervise and enforce consumer protection laws; |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Provides for new disclosure and other requirements relating to executive compensation and corporate governance; |
|--------------------|-----------------------------------------------------------------------------------------------------------------|

| ·   | Changes standards for Federal preemption of state laws related to federally chartered institutions and their subsidiaries; |
|--------------------|----------------------------------------------------------------------------------------------------------------------------|

| ·   | Provides mortgage reform provisions regarding a customer’s ability to repay, restricting variable-rate lending by requiring the ability to repay to be determined for variable-rate loans by using the maximum rate that will apply during the first five years of a variable-rate loan term, and making more loans subject to provisions for higher cost loans, new disclosures, and certain other revisions; |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Creates a financial stability oversight council that will recommend to the Federal Reserve increasingly strict rules for capital, leverage, liquidity, risk management and other requirements as companies grow in size and complexity; |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| ·   | Permanently increases the deposit insurance coverage to $250,000 and allows depository institutions to pay interest on checking accounts; and |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Requires publicly-traded bank holding companies with assets of $10 billion or more to establish a risk committee responsible for enterprise-wide risk management practices. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| 31.1 | Certification of CEO required by Rule 13a-14(a). |
|------|--------------------------------------------------|

| 31.2 | Certification of CFO required by Rule 13a-14(a). |
|------|--------------------------------------------------|

| 32 | Certification required by 18 U.S.C. §1350. |
|----|-------------------------------------------------|

| 101 | Interactive Data Files* |
|-----|-------------------------|

| * | To be filed by amendment as permitted by Rule 405(a)(2)(ii) of Regulation S-K. |
|---|--------------------------------------------------------------------------------|

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|                             |   | PARKE BANCORP, INC.                   |
|----------------------------------|--------|---------------------------------------|
|                             |   |                                  |
|                             |   |                                  |
|                             |   |                                  |
| Date:  August 14, 2012 |   | /s/ Vito S. Pantilione                |
|                             |   | Vito S. Pantilione                    |
|                             |   | President and Chief Executive Officer |
|                             |   | (Principal Executive Officer)         |
|                             |   |                                  |
|                             |   |                                  |
|                             |   |                                  |
|                             |   |                                  |
| Date:  August 14, 2012 |   | /s/ John F. Hawkins                   |
|                             |   | John F. Hawkins                       |
|                             |   | Senior Vice President and             |
|                             |   | Chief Financial Officer               |
|                             |   | (Principal Accounting Officer)        |

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