----

----

|  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)                        |

----

----

|                        |                                                                                  |   | Page   |   |
|-----------------------------|---------------------------------------------------------------------------------------|--------|--------|--------|
| Part I                      | FINANCIAL INFORMATION                                                                 |   |   |   |
|                        |                                                                                  |   |   |   |
| Item 1.                     | Financial Statements                                                                  |   |   | 1      |   |
| Item 2.                     | Management's Discussion and Analysis of Financial Condition and Results of Operations |   |   | 26     |   |
| Item 3.                     | Quantitative and Qualitative Disclosures About Market Risk                            |   |   | 39     |   |
| Item 4.                     | Controls and Procedures                                                               |   |   | 39     |   |
|                        |                                                                                  |   |   |   |   |
| Part II                     | OTHER INFORMATION                                                                     |   |   |   |   |
|                        |                                                                                  |   |   |   |   |
| Item 1.                     | Legal Proceedings                                                                     |   |   | 39     |   |
| Item 1A.                    | Risk Factors                                                                          |   |   | 39     |   |
| Item 2.                     | Unregistered Sales of Equity Securities and Use of Proceeds                           |   |   | 39     |   |
| Item 3.                     | Defaults Upon Senior Securities                                                       |   |   | 39     |   |
| Item 4.                     | Reserved                                                                              |   |   | 39     |   |
| Item 5.                     | Other Information                                                                     |   |   | 40     |   |
| Item 6.                     | Exhibits                                                                              |   |   | 41     |   |
|                        |                                                                                  |   |   |   |   |
| SIGNATURES                  |                                                                                  |   |   |   |
|                        |                                                                                  |   |   |   |   |
| EXHIBITS and CERTIFICATIONS |                                                                                  |   |   |   |

----

| Parke Bancorp Inc. and Subsidiaries                                                                                                                   |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
| CONSOLIDATED BALANCE SHEETS                                                                                                                           |   |
| (unaudited)                                                                                                                                           |   |
|                                                                                                                                                  |   | September 30, |   |   | December 31, |   |
|                                                                                                                                                  |   | 2010 |   |   | 2009 |   |
|                                                                                                                                                  |   | (in thousands except share data) |   |
| ASSETS                                                                                                                                                |   |   |   |   |   |   |
| Cash  and due from financial institutions                                                                                                   |   | $ | 51,158 |   |   | $ | 4,099 |   |
| Federal funds sold and cash equivalents                                                                                                               |   |   | 12 |   |   |   | 55 |   |
| Cash and cash equivalents                                                                                                                             |   |   | 51,170 |   |   |   | 4,154 |   |
| Investment securities available for sale, at fair value                                                                                               |   |   | 27,897 |   |   |   | 29,420 |   |
| Investment securities held to maturity (fair value of $2,141 at September 30, 2010 and $2,404 at December 31, 2009)                                   |   |   | 1,991 |   |   |   | 2,509 |   |
| Total investment securities                                                                                                                           |   |   | 29,888 |   |   |   | 31,929 |   |
| Loans held for sale                                                                                                                                   |   |   | 4,344 |   |   |   | — |   |
| Loans, net of unearned income                                                                                                                         |   |   | 633,743 |   |   |   | 603,401 |   |
| Less: Allowance for loan and lease losses                                                                                                             |   |   | 13,428 |   |   |   | 12,404 |   |
| Net loans and leases                                                                                                                                  |   |   | 620,315 |   |   |   | 590,997 |   |
| Accrued interest receivable                                                                                                                           |   |   | 3,303 |   |   |   | 2,808 |   |
| Premises and equipment, net                                                                                                                           |   |   | 4,338 |   |   |   | 2,861 |   |
| Other real estate owned (OREO)                                                                                                                        |   |   | 7,778 |   |   |   | — |   |
| Restricted stock, at cost                                                                                                                             |   |   | 3,087 |   |   |   | 3,094 |   |
| Bank owned life insurance (BOLI)                                                                                                                      |   |   | 5,316 |   |   |   | 5,184 |   |
| Other assets                                                                                                                                          |   |   | 13,392 |   |   |   | 13,171 |   |
| Total Assets                                                                                                                                          |   | $ | 742,931 |   |   | $ | 654,198 |   |
|                                                                                                                                                  |   |   |   |   |   |   |   |   |
| LIABILITIES AND EQUITY                                                                                                                                |   |   |   |   |   |   |   |   |
| Liabilities                                                                                                                                           |   |   |   |   |   |   |   |   |
| Deposits                                                                                                                                              |   |   |   |   |   |   |   |   |
| Noninterest-bearing deposits                                                                                                                          |   | $ | 22,682 |   |   | $ | 21,488 |   |
| Interest-bearing deposits                                                                                                                             |   |   | 576,298 |   |   |   | 498,825 |   |
| Total deposits                                                                                                                                        |   |   | 598,980 |   |   |   | 520,313 |   |
| FHLB borrowings                                                                                                                                       |   |   | 41,796 |   |   |   | 44,428 |   |
| Other borrowed funds                                                                                                                                  |   |   | 14,344 |   |   |   | 10,000 |   |
| Subordinated debentures                                                                                                                               |   |   | 13,403 |   |   |   | 13,403 |   |
| Accrued interest payable                                                                                                                              |   |   | 865 |   |   |   | 821 |   |
| Other liabilities                                                                                                                                     |   |   | 4,323 |   |   |   | 3,260 |   |
| Total liabilities                                                                                                                                     |   |   | 673,711 |   |   |   | 592,225 |   |
| Equity                                                                                                                                                |   |   |   |   |   |   |   |   |
| Preferred stock, $1,000 liquidation value; authorized 1,000,000 shares; Issued: 16,288 shares at September 30, 2010 and December 31, 2009             |   |   | 15,638 |   |   |   | 15,508 |   |
| Common stock, $.10 par value; authorized 10,000,000 shares; Issued: 4,650,930 shares at September 30, 2010; and 4,224,867 shares at December 31, 2009 |   |   | 465 |   |   |   | 421 |   |
| Additional paid-in capital                                                                                                                            |   |   | 41,921 |   |   |   | 37,020 |   |
| Retained earnings                                                                                                                                     |   |   | 14,027 |   |   |   | 14,071 |   |
| Accumulated other comprehensive loss                                                                                                                  |   |   | (829 | ) |   |   | (2,867 | ) |
| Treasury stock, 210,900 shares at September 30, 2010 and 191,729  shares at December 31, 2009, at cost                                      |   |   | (2,180 | ) |   |   | (2,180 | ) |
| Total shareholders’ equity                                                                                                                      |   |   | 69,042 |   |   |   | 61,973 |   |
| Noncontrolling (minority) interest in consolidated subsidiaries                                                                                       |   |   | 178 |   |   |   | — |   |
| Total equity                                                                                                                                          |   |   | 69,220 |   |   |   | 61,973 |   |
| Total liabilities and  equity                                                                                                               |   | $ | 742,931 |   |   | $ | 654,198 |   |
|                                                                                                                                                  |   |   |   |   |   |   |   |   |
| See accompanying notes to consolidated financial statements                                                                                           |   |

----

| Parke Bancorp Inc. and Subsidiaries                                                      |                                    |
|------------------------------------------------------------------------------------------|-----------------------------------------|
| CONSOLIDATED STATEMENTS OF INCOME                                                        |                                    |
| (unaudited)                                                                              |                                    |
|                                                                                     | For the nine months ended September 30, |   |   | For the three months ended September 30, |   |
|                                                                                     | 2010                                    |   |   | 2009 |   |   | 2010 |   |   | 2009 |   |
|                                                                                     | (in thousands except share data)        |   |
| Interest income:                                                                         |                                    |   |   |   |   |   |   |   |   |   |   |   |
| Interest and fees on loans                                                               |                                    | $ | 29,621 |   |   | $ | 28,646 |   |   | $ | 10,044 |   |   | $ | 9,680 |   |
| Interest and dividends on investments                                                    |                                    |   | 1,290 |   |   |   | 1,462 |   |   |   | 428 |   |   |   | 448 |   |
| Interest on federal funds sold and cash equivalents                                      |                                    |   | — |   |   |   | 1 |   |   |   | — |   |   |   | — |   |
| Total interest income                                                                    |                                    |   | 30,911 |   |   |   | 30,109 |   |   |   | 10,472 |   |   |   | 10,128 |   |
| Interest expense:                                                                        |                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest on deposits                                                                     |                                    |   | 7,241 |   |   |   | 10,858 |   |   |   | 2,376 |   |   |   | 3,291 |   |
| Interest on borrowings                                                                   |                                    |   | 1,330 |   |   |   | 1,578 |   |   |   | 444 |   |   |   | 474 |   |
| Total interest expense                                                                   |                                    |   | 8,571 |   |   |   | 12,436 |   |   |   | 2,820 |   |   |   | 3,765 |   |
| Net interest income                                                                      |                                    |   | 22,340 |   |   |   | 17,673 |   |   |   | 7,652 |   |   |   | 6,363 |   |
| Provision for loan losses                                                                |                                    |   | 6,401 |   |   |   | 3,200 |   |   |   | 2,100 |   |   |   | 1,450 |   |
| Net interest income after provision for loan losses                                      |                                    |   | 15,939 |   |   |   | 14,473 |   |   |   | 5,552 |   |   |   | 4,913 |   |
| Noninterest income (loss)                                                                |                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Loan fees                                                                                |                                    |   | 109 |   |   |   | 201 |   |   |   | 28 |   |   |   | 62 |   |
| Net income from BOLI                                                                     |                                    |   | 132 |   |   |   | 135 |   |   |   | 43 |   |   |   | 45 |   |
| Service fees on deposit accounts                                                         |                                    |   | 191 |   |   |   | 138 |   |   |   | 62 |   |   |   | 48 |   |
| Other than temporary impairment losses                                                   |                                    |   | (115 | ) |   |   | (2,401 | ) |   |   | (71 | ) |   |   | (1,120 | ) |
| Portion of loss recognized in other   comprehensive income (before taxes) |                                    |   | 49 |   |   |   | 863 |   |   |   | 23 |   |   |   | 770 |   |
| Net impairment losses recognized in earnings                                             |                                    |   | (66 | ) |   |   | (1,538 | ) |   |   | (48 | ) |   |   | (350 | ) |
| Gain (loss) on sale of real estate owned                                                 |                                    |   | 39 |   |   |   | (149 | ) |   |   | (7 | ) |   |   | 10 |   |
| Gain on sale of loans                                                                    |                                    |   | 1,311 |   |   |   | — |   |   |   | 635 |   |   |   | — |   |
| Other                                                                                    |                                    |   | 192 |   |   |   | 223 |   |   |   | 132 |   |   |   | 26 |   |
| Total noninterest income (loss)                                                          |                                    |   | 1,908 |   |   |   | (990 | ) |   |   | 845 |   |   |   | (159 | ) |
| Noninterest expense                                                                      |                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Compensation and benefits                                                                |                                    |   | 3,641 |   |   |   | 2,966 |   |   |   | 1,163 |   |   |   | 953 |   |
| Professional services                                                                    |                                    |   | 873 |   |   |   | 631 |   |   |   | 291 |   |   |   | 180 |   |
| Occupancy and equipment                                                                  |                                    |   | 691 |   |   |   | 637 |   |   |   | 253 |   |   |   | 201 |   |
| Data processing                                                                          |                                    |   | 250 |   |   |   | 255 |   |   |   | 88 |   |   |   | 87 |   |
| FDIC insurance                                                                           |                                    |   | 653 |   |   |   | 627 |   |   |   | 216 |   |   |   | 185 |   |
| Loss on write down of foreclosed assets                                                  |                                    |   | — |   |   |   | 68 |   |   |   | — |   |   |   | 14 |   |
| Other operating expense                                                                  |                                    |   | 2,144 |   |   |   | 1,109 |   |   |   | 1,265 |   |   |   | 372 |   |
| Total noninterest expense                                                                |                                    |   | 8,252 |   |   |   | 6,293 |   |   |   | 3,276 |   |   |   | 1,992 |   |
| Income before income tax expense                                                         |                                    |   | 9,595 |   |   |   | 7,190 |   |   |   | 3,121 |   |   |   | 2,762 |   |
| Income tax expense                                                                       |                                    |   | 3,802 |   |   |   | 2,787 |   |   |   | 1,180 |   |   |   | 1,067 |   |
| Net income attributable to Company and noncontrolling (minority) interest           |                                    |   | 5,793 |   |   |   | 4,403 |   |   |   | 1,941 |   |   |   | 1,695 |   |
| Net income attributable to noncontrolling (minority) interest                            |                                    |   | (168 | ) |   |   | — |   |   |   | (113 | ) |   |   | — |   |
| Net income attributable to Company                                                       |                                    |   | 5,625 |   |   |   | 4,403 |   |   |   | 1,828 |   |   |   | 1,695 |   |
| Preferred stock dividend and discount accretion                                          |                                    |   | 740 |   |   |   | 655 |   |   |   | 247 |   |   |   | 245 |   |
| Net income available to common shareholders                                              |                                    | $ | 4,885 |   |   | $ | 3,748 |   |   | $ | 1,581 |   |   | $ | 1,450 |   |
|                                                                                     |                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Earnings per common share                                                                |                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Basic                                                                                    |                                    | $ | 1.10 |   |   | $ | 0.85 |   |   | $ | 0.36 |   |   | $ | 0.33 |   |
| Diluted                                                                                  |                                    | $ | 1.09 |   |   | $ | 0.85 |   |   | $ | 0.35 |   |   | $ | 0.32 |   |
| Weighted average shares outstanding                                                      |                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Basic                                                                                    |                                    |   | 4,437,860 |   |   |   | 4,431,409 |   |   |   | 4,439,838 |   |   |   | 4,436,452 |   |
| Diluted                                                                                  |                                    |   | 4,491,020 |   |   |   | 4,431,409 |   |   |   | 4,488,106 |   |   |   | 4,469,406 |   |
| See accompanying notes to consolidated financial statements                              |                                    |

----

| Parke Bancorp, Inc. and Subsidiaries                                             |   |
|----------------------------------------------------------------------------------|--------|
| CONSOLIDATED STATEMENTS OF CHANGE IN TOTAL EQUITY                                |   |
| (unaudited)                                                                      |   |
|                                                                             |   | PreferredStock |   |   | CommonStock |   |   | AdditionalPaid-InCapital |   |   | RetainedEarnings |   |   | AccumulatedOtherComprehensiveIncome (Loss) |   |   | TreasuryStock |   |   | TotalShareholders'Equity |   |   | Non-Controlling(Minority)Interest |   |   | Total Equity |   |
|                                                                             |   | (in thousands) |   |
| Balance, December 31, 2008                                                       |   | $ | — |   |   | $ | 414 |   |   | $ | 35,656 |   |   | $ | 8,870 |   |   | $ | (2,791 | ) |   | $ | (1,848 | ) |   | $ | 40,301 |   |   | $ | — |   |   | $ | 40,301 |   |
| Stock warrants exercised                                                         |   |   |   |   |   |   | 7 |   |   |   | 415 |   |   |   |   |   |   |   |   |   |   |   | (332 | ) |   |   | 90 |   |   |   |   |   |   |   | 90 |   |
| Stock compensation                                                               |   |   |   |   |   |   |   |   |   |   | 14 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 14 |   |   |   |   |   |   |   | 14 |   |
| Comprehensive income (loss):                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net income                                                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 4,403 |   |   |   |   |   |   |   |   |   |   |   | 4,403 |   |   |   |   |   |   |   | 4,403 |   |
| Non-credit unrealized losses on debt securities with OTTI, net of taxes          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | (518 | ) |   |   |   |   |   |   | (518 | ) |   |   |   |   |   |   | (518 | ) |
| Net unrealized gains on available for sale securities without OTTI, net of taxes |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 2,640 |   |   |   |   |   |   |   | 2,640 |   |   |   |   |   |   |   | 2,640 |   |
| Pension liability adjustments, net of tax                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | (9 | ) |   |   |   |   |   |   | (9 | ) |   |   |   |   |   |   | (9 | ) |
| Total comprehensive income                                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 6,516 |   |   |   | — |   |   |   | 6,516 |   |
| Preferred stock issued                                                           |   |   | 15,358 |   |   |   |   |   |   |   | 930 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 16,288 |   |   |   |   |   |   |   | 16,288 |   |
| Dividend on preferred stock (5% annually)                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   | (545 | ) |   |   |   |   |   |   |   |   |   |   | (545 | ) |   |   |   |   |   |   | (545 | ) |
| Accretion of discount on preferred stock                                         |   |   | 110 |   |   |   |   |   |   |   |   |   |   |   | (110 | ) |   |   |   |   |   |   |   |   |   |   | 0 |   |   |   |   |   |   |   | 0 |   |
| Balance, September 30, 2009                                                      |   | $ | 15,468 |   |   | $ | 421 |   |   | $ | 37,015 |   |   | $ | 12,618 |   |   | $ | (678 | ) |   | $ | (2,180 | ) |   | $ | 62,664 |   |   | $ | — |   |   | $ | 62,664 |   |
|                                                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance, December 31, 2009                                                       |   | $ | 15,508 |   |   | $ | 421 |   |   | $ | 37,020 |   |   | $ | 14,071 |   |   | $ | (2,867 | ) |   | $ | (2,180 | ) |   | $ | 61,973 |   |   | $ | — |   |   | $ | 61,973 |   |
| Stock options exercised                                                          |   |   |   |   |   |   |   |   |   |   | 22 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 22 |   |   |   |   |   |   |   | 22 |   |
| Capital contribution by noncontrolling (minority) interest                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 196 |   |   |   | 196 |   |
| Capital withdrawals by noncontrolling (minority) interest                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | (186 | ) |   |   | (186 | ) |
| 10% common stock dividend                                                        |   |   |   |   |   |   | 44 |   |   |   | 4,879 |   |   |   | (4,929 | ) |   |   |   |   |   |   |   |   |   |   | (6 | ) |   |   |   |   |   |   | (6 | ) |
| Comprehensive income (loss):                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net income                                                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 5,625 |   |   |   |   |   |   |   |   |   |   |   | 5,625 |   |   |   | 168 |   |   |   | 5,793 |   |
| Non-credit unrealized gains on debt securities with OTTI, net of taxes           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 85 |   |   |   |   |   |   |   | 85 |   |   |   |   |   |   |   | 85 |   |
| Net unrealized gains on available for sale securities without OTTI, net of taxes |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 1,921 |   |   |   |   |   |   |   | 1,921 |   |   |   |   |   |   |   | 1,921 |   |
| Pension liability adjustments, net of taxes                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 32 |   |   |   |   |   |   |   | 32 |   |   |   |   |   |   |   | 32 |   |
| Total comprehensive income                                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 7,663 |   |   |   | 168 |   |   |   | 7,831 |   |
| Dividend on preferred stock (5% annually)                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   | (610 | ) |   |   |   |   |   |   |   |   |   |   | (610 | ) |   |   |   |   |   |   | (610 | ) |
| Accretion of discount on preferred stock                                         |   |   | 130 |   |   |   |   |   |   |   |   |   |   |   | (13 | ) |   |   |   |   |   |   |   |   |   |   | — |   |   |   |   |   |   |   | — |   |
| Balance, September 30, 2010                                                      |   | $ | 15,638 |   |   | $ | 465 |   |   | $ | 41,921 |   |   | $ | 14,027 |   |   | $ | (829 | ) |   | $ | (2,180 | ) |   | $ | 69,042 |   |   | $ | 178 |   |   | $ | 69,220 |   |
|                                                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| See accompanying notes to consolidated financial statements                      |   |   |   |   |   |   |   |   |   |

----

| Parke Bancorp Inc. and Subsidiaries                                               |   |
|-----------------------------------------------------------------------------------|--------|
| CONSOLIDATED STATEMENTS OF CASH FLOWS                                             |   |
| (unaudited)                                                                       |   |
|                                                                              |   | For the nine months ended September 30, |   |
|                                                                              |   | 2010 |   |   | 2009 |   |
|                                                                              |   | (in thousands) |   |
| Cash Flows from Operating Activities                                              |   |   |   |   |   |   |
| Net income                                                                        |   | $ | 5,793 |   |   | $ | 4,403 |   |
| Adjustments to reconcile net income to net cash provided by operating activities: |   |   |   |   |   |   |   |   |
| Depreciation and amortization                                                     |   |   | 247 |   |   |   | 236 |   |
| Provision for loan losses                                                         |   |   | 6,401 |   |   |   | 3,200 |   |
| Stock compensation                                                                |   |   | — |   |   |   | 14 |   |
| Bank owned life insurance                                                         |   |   | (132 | ) |   |   | (135 | ) |
| Supplemental executive retirement plan                                            |   |   | 333 |   |   |   | 174 |   |
| Gain on sale of SBA loans                                                         |   |   | (1,311 | ) |   |   | — |   |
| SBA loans originated for sale                                                     |   |   | (12,593 | ) |   |   | — |   |
| Proceeds from sale of SBA loans originated for sale                               |   |   | 13,904 |   |   |   | — |   |
| (Gain) loss on sale of other real estate owned                                    |   |   | (39 | ) |   |   | 149 |   |
| Loss on write down of foreclosed assets                                           |   |   | — |   |   |   | 68 |   |
| Other than temporary decline in value of investments                              |   |   | 66 |   |   |   | 1,538 |   |
| Net accretion of purchase premiums and discounts on securities                    |   |   | (59 | ) |   |   | (91 | ) |
| Changes in operating assets and liabilities:                                      |   |   |   |   |   |   |   |   |
| Increase in accrued interest receivable and other assets                          |   |   | (848 | ) |   |   | (2,991 | ) |
| Increase in accrued interest payable and other accrued liabilities                |   |   | 1,107 |   |   |   | 1,377 |   |
| Net cash provided by operating activities                                         |   |   | 8,525 |   |   |   | 7,942 1,628 |   |
| Cash Flows from Investing Activities                                              |   |   |   |   |   |   |   |   |
| Purchases of investment securities available for sale                             |   |   | (1,794 | ) |   |   | (3,307 | ) |
| Redemptions of restricted stock                                                   |   |   | 7 |   |   |   | 29 |   |
| Proceeds from maturities and principal payments on mortgage-backed securities     |   |   | 7,171 |   |   |   | 8,228 |   |
| Proceeds from sale of other real estate owned                                     |   |   | 453 |   |   |   | 1,008 |   |
| Net increase in loans                                                             |   |   | (45,407 | ) |   |   | (47,493 | ) |
| Purchases of bank premises and equipment                                          |   |   | (1,724 | ) |   |   | (161 | ) |
| Net cash used in investing activities                                             |   |   | (41,294 | ) |   |   | (41,696 | ) |
| Cash Flows from Financing Activities                                              |   |   |   |   |   |   |   |   |
| Proceeds from issuance of preferred stock                                         |   |   | — |   |   |   | 16,288 |   |
| Payment of dividend on preferred stock                                            |   |   | (610 | ) |   |   | (441 | ) |
| Proceeds from exercise of stock options and warrants                              |   |   | 22 |   |   |   | 422 |   |
| Fractional share cash payment on 10% stock dividend                               |   |   | (6 | ) |   |   | — |   |
| Purchase of treasury stock                                                        |   |   | — |   |   |   | (332 | ) |
| Net increase in secured borrowings                                                |   |   | 4,344 |   |   |   | — |   |
| Net decrease in Federal Home Loan Bank short term borrowings                      |   |   | (2,025 | ) |   |   | (5,500 | ) |
| Repayments of Federal Home Loan Bank advances                                     |   |   | (500 | ) |   |   | — |   |
| Payments of Federal Home Loan Bank advances                                       |   |   | (107 | ) |   |   | (602 | ) |
| Net increase (decrease) in noninterest-bearing deposits                           |   |   | 1,194 |   |   |   | (1,147 | ) |
| Net increase in interest-bearing deposits                                         |   |   | 77,473 |   |   |   | 37,002 |   |
| Net cash provided by financing activities                                         |   |   | 79,785 |   |   |   | 45,690 |   |
| Increase in cash and cash equivalents                                             |   |   | 47,016 |   |   |   | 11,936 |   |
| Cash and Cash Equivalents, January 1,                                             |   |   | 4,154 |   |   |   | 7,270 |   |
| Cash and Cash Equivalents, September 30,                                          |   | $ | 51,170 |   |   | $ | 19,206 |   |
| Supplemental Disclosure of Cash Flow Information:                                 |   |   |   |   |   |   |   |   |
| Cash paid during the six months for:                                              |   |   |   |   |   |   |   |   |
| Interest on deposits and borrowed funds                                      |   | $ | 8,527 |   |   | $ | 12,657 |   |
| Income taxes                                                                      |   | $ | 6,200 |   |   | $ | 5,001 |   |
| Supplemental Schedule of Noncash Activities:                                      |   |   |   |   |   |   |   |   |
| Real estate acquired in settlement of loans                                       |   | $ | 13,273 |   |   | $ | 442 |   |
| See accompanying notes to consolidated financial statements                       |   |

----

----

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

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

----

----

|  As of September 30, 2010         |                   | Amortizedcost |    | Grossunrealizedgains |    | Grossunrealizedlosses |    | Other-than-temporaryimpairmentsin OCI |   | Fair value |    |
|----------------------------------------|------------------------|---------------|---------|----------------------|---------|-----------------------|---------|---------------------------------------|--------|------------|---------|
|  Available-for-sale:              | (amounts in thousands) |          |
|                                   |                   |          |    |                 |    |                  |
| U.S. Government sponsored entities     | $                      | 3,259         |    | $                    | 28      |                  | $       | —                               |   | $          | — |   | $ | 3,287 |   |
| Corporate debt obligations             |                   | 2,000         |    |                 | 125     |                  |    | —                               |   |       | — |   |   | 2,125 |   |
| Residential mortgage-backed securities | 15,158                 |          | 683     |                 | 4       |                  | — |                                  | 15,837 |       |
| Collateralized mortgage obligations    | 2,947                  |          | 125     |                 | — |                  | 71      |                                  | 3,001  |       |
| Collateralized debt obligations        | 5,562                  |          | — |                 | 1,375   |                  | 540     |                                  | 3,647  |       |
| Total available-for-sale               | $                      | 28,926        |    | $                    | 961     |                  | $       | 1,379                                 |   | $          | 611     |   | $ | 27,897 |   |
|                                   |                   |          |    |                 |    |                  |    |                                  |   |       |
|  Held to maturity:                |                   |          |    |                 |    |                  |    |                                  |   |       |
| States and political subdivisions      | $                      | 1,991         |    | $                    | 150     |                  | $       | —                               |   | $          | — |   | $ | 2,141 |   |

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

----

|                                                                           |   | AmortizedCost          |    |   | FairValue |   |
|--------------------------------------------------------------------------------|--------|------------------------|---------|--------|-----------|--------|
|                                                                           |   | (amounts in thousands) |    |
| Available-for-sale:                                                            |   |                   |    |
| Due within one year                                                            |   | $                      | — |   |      | $      | — |   |
| Due after one year through five years                                          |   |                   | 3,252   |   |      |   | — |   |
| Due after five years through ten years                                         |   |                   | — |   |      |   | 3,281 |   |
| Due after ten years                                                            |   |                   | 7,569   |   |      |   | 5,778 |   |
| Residential mortgage-backed securities and collateralized mortgage obligations |   |                   | 18,105  |   |      |   | 18,838 |   |
| Total  available-for-sale                                            |   | $                      | 28,926  |   |      | $      | 27,897 |   |

| Held-to-maturity:                      |   |   |    |
|----------------------------------------|--------|--------|---------|
| Due within one year                    |   | $      | — |   |   | $ | — |   |
| Due after one year through five years  |   |   | — |   |   |   | — |   |
| Due after five years through ten years |   |   | — |   |   |   | — |   |
| Due after ten years                    |   |   | 1,991   |   |   |   | 2,141 |   |
| Total held-to-maturity                 |   | $      | 1,991   |   |   | $ | 2,141 |   |

----

| As of September 30, 2010                                                       |   | Less Than 12 Months    |    |   | 12 Months or Greater |   |    | Total     |   |
|--------------------------------------------------------------------------------|--------|------------------------|---------|--------|----------------------|--------|---------|-----------|--------|
| Description of Securities                                                      |   | FairValue              |    |   | UnrealizedLosses     |   |    | FairValue |   |   | UnrealizedLosses |   |   | FairValue |   |   | UnrealizedLosses |   |
|                                                                           |   | (amounts in thousands) |    |
| Available-for-sale:                                                            |   |                   |    |   |                 |   |    |      |   |   |   |   |   |   |   |   |   |   |
| U.S. Government sponsored entities                                             |   | $                      | — |   |                 | $      | — |      |   | $ | — |   |   | $ | — |   |   | $ | — |   |   | $ | — |   |
| Corporate debt obligations                                                     |   |                   | — |   |                 |   | — |      |   |   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |
| Residential mortgage-backed securities and collateralized mortgage obligations |   |                   | 1,097   |   |                 |   | 4       |      |   |   | — |   |   |   | — |   |   |   | 1,097 |   |   |   | 4 |   |
| Collateralized debt obligations                                                |   |                   | — |   |                 |   | — |      |   |   | 3,375 |   |   |   | 1,375 |   |   |   | 3,375 |   |   |   | 1,375 |   |
| Total available-for-sale                                                       |   | $                      | 1,097   |   |                 | $      | 4       |      |   | $ | 3,375 |   |   | $ | 1,375 |   |   | $ | 4,472 |   |   | $ | 1,379 |   |
|                                                                           |   |                   |    |   |                 |   |    |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Held-to-maturity:                                                              |   |                   |    |   |                 |   |    |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| States and political subdivisions                                              |   | $                      | — |   |                 | $      | — |      |   | $ | — |   |   | $ | — |   |   | $ | — |   |   | $ | — |   |

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

----

----

----

|                                                                               | For the Nine Months EndedSeptember 30, |   |
|------------------------------------------------------------------------------------|----------------------------------------|--------|
|                                                                               | 2010                                   |   | 2009 |   |
|                                                                               |                                   |   |   |
|                                                                               | (amounts in thousands)                 |   |
| Beginning balance                                                                  |                                   | $      | 4,008 |   |   | $ | 2,279 |   |
| Initial credit impairment                                                          |                                   |   | — |   |   |   | 884 |   |
| Subsequent credit impairments                                                      |                                   |   | 66 |   |   |   | 654 |   |
| Reductions for amounts recognized in earnings due to intent or requirement to sell |                                   |   | — |   |   |   | — |   |
| Reductions for securities deemed worthless                                         |                                   |   | 1,384 |   |   |   | — |   |
| Reductions for increases in cash flows expected to be collected                    |                                   |   | — |   |   |   | — |   |
| Ending balance                                                                     |                                   | $      | 2,690 |   |   | $ | 3,817 |   |

|                                                                               | For the Three Months EndedSeptember 30, |   |
|------------------------------------------------------------------------------------|-----------------------------------------|--------|
|                                                                               | 2010                                    |   | 2009 |   |
|                                                                               |                                    |   |   |
|                                                                               | (amounts in thousands)                  |   |
| Beginning balance                                                                  |                                    | $      | 2,808 |   |   | $ | 3,467 |   |
| Initial credit impairment                                                          |                                    |   | — |   |   |   | 319 |   |
| Subsequent credit impairments                                                      |                                    |   | 48 |   |   |   | 31 |   |
| Reductions for amounts recognized in earnings due to intent or requirement to sell |                                    |   | — |   |   |   | — |   |
| Reductions for securities deemed worthless                                         |                                    |   | 166 |   |   |   | — |   |
| Reductions for increases in cash flows expected to be collected                    |                                    |   | — |   |   |   | — |   |
| Ending balance                                                                     |                                    | $      | 2,690 |   |   | $ | 3,817 |   |

|                                |   | For the Nine Months EndedSeptember 30, |    |
|-------------------------------------|--------|----------------------------------------|---------|
|                                |   | 2010                                   |    |   | 2009 |   |
|                                |   |                                   |    |   |   |   |
|                                |   | (amounts in thousands)                 |    |
| Available-for-sale securities:      |   |                                   |    |   |   |   |
| Realized gains                      |   | $                                      | — |   |   | $ | — |   |
| Realized (losses)                   |   |                                   | — |   |   |   | — |   |
| Other than temporary impairment     |   |                                   | (66     | ) |   |   | (1,538 | ) |
| Total available-for-sale securities |   | $                                      | (66     | ) |   | $ | (1,538 | ) |
|                                |   |                                   |    |   |   |   |   |   |
| Held-to-maturity securities:        |   |                                   |    |   |   |   |   |   |
| Realized gains                      |   | $                                      | — |   |   | $ | — |   |
| Realized (losses)                   |   |                                   | — |   |   |   | — |   |
| Other than temporary impairment     |   |                                   | — |   |   |   | — |   |
| Total held-to-maturity securities   |   | $                                      | 0       |   |   | $ | 0 |   |

----

|                                |   | For the Three Months Ended September 30, |    |
|-------------------------------------|--------|-----------------------------------------------|---------|
|                                |   | 2010                                          |    |   | 2009 |   |
|                                |   |                                          |    |   |   |   |
|                                |   | (amounts in thousands)                        |    |
| Available-for-sale securities:      |   |                                          |    |   |   |   |
| Realized gains                      |   | $                                             | — |   |   | $ | — |   |
| Realized (losses)                   |   |                                          | — |   |   |   | — |   |
| Other than temporary impairment     |   |                                          | (48     | ) |   |   | (350 | ) |
| Total available-for-sale securities |   | $                                             | (48     | ) |   | $ | (350 | ) |
|                                |   |                                          |    |   |   |   |   |   |
| Held-to-maturity securities:        |   |                                          |    |   |   |   |   |   |
| Realized gains                      |   | $                                             | — |   |   | $ | — |   |
| Realized (losses)                   |   |                                          | — |   |   |   | — |   |
| Other than temporary impairment     |   |                                          | — |   |   |   | — |   |
| Total held-to-maturity securities   |   | $                                             | 0       |   |   | $ | 0 |   |

----

|                      |   | September 30, 2010     |    |   | December 31, 2009         |   |
|---------------------------|--------|------------------------|---------|--------|---------------------------|--------|
|                      |   | Amount                 |    |   | Percentage of Gross Loans |   |   | Amount |   |   | Percentage of Gross Loans |   |
|                      |   | (amounts in thousands) |    |
| Commercial                |   | $                      | 25,115  |   |                      |   | 4.0 | % |   | $ | 20,174 |   |   |   | 3.3 | % |
| Real estate construction: |   |                   |    |   |                      |   |   |   |   |   |   |   |   |   |   |   |
| Residential               |   |                   | 45,727  |   |                      |   | 7.2 |   |   |   | 61,865 |   |   |   | 10.3 |   |
| Commercial                |   |                   | 57,436  |   |                      |   | 9.1 |   |   |   | 44,726 |   |   |   | 7.4 |   |
| Real estate mortgage:     |   |                   |    |   |                      |   |   |   |   |   |   |   |   |   |   |   |
| Residential               |   |                   | 166,987 |   |                      |   | 26.3 |   |   |   | 154,385 |   |   |   | 25.6 |   |
| Commercial                |   |                   | 322,661 |   |                      |   | 50.9 |   |   |   | 309,226 |   |   |   | 51.2 |   |
| Consumer                  |   |                   | 15,817  |   |                      |   | 2.5 |   |   |   | 13,025 |   |   |   | 2.2 |   |
| Total Loans               |   | $                      | 633,743 |   |                      |   | 100.0 | % |   | $ | 603,401 |   |   |   | 100.0 | % |
|                      |   |                   |    |   |                      |   |   |   |   |   |   |   |   |   |   |   |

----

|                             | For the nine months ended September 30, |   |
|----------------------------------|-----------------------------------------|--------|
|                             | 2010                                    |   | 2009 |   |
|                             | (amounts in thousands)                  |   |
| Balance at beginning of period   |                                    | $      | 12,404 |   |   | $ | 7,777 |   |
| Provisions charged to operations |                                    |   | 6,401 |   |   |   | 3,200 |   |
| Charge-offs                      |                                    |   | (5,377 | ) |   |   | (62 | ) |
| Recoveries                       |                                    |   | — |   |   |   | — |   |
| Balance at end of period         |                                    | $      | 13,428 |   |   | $ | 10,915 |   |

|                             | For the three months ended September 30, |   |
|----------------------------------|------------------------------------------|--------|
|                             | 2010                                     |   | 2009 |   |
|                             | (amounts in thousands)                   |   |
| Balance at beginning of period   |                                     | $      | 14,893 |   |   | $ | 9,514 |   |
| Provisions charged to operations |                                     |   | 2,100 |   |   |   | 1,450 |   |
| Charge-offs                      |                                     |   | (3,565 | ) |   |   | (49 | ) |
| Recoveries                       |                                     |   | — |   |   |   | — |   |
| Balance at end of period         |                                     | $      | 13,428 |   |   | $ | 10,915 |   |

|                                                       |   | September 30, 2010     |   |   | December 31, 2009 |   |
|------------------------------------------------------------|--------|------------------------|--------|--------|-------------------|--------|
|                                                       |   | (amounts in thousands) |   |
| Impaired loans with no allocated allowance for loan losses |   | $                      | 40,917 |   |              | $      | 28,681 |   |
| Impaired loans with allocated allowance for loan losses    |   |                   | 13,705 |   |              |   | 22,681 |   |
| Total                                                      |   | $                      | 54,622 |   |              | $      | 50,889 |   |
|                                                       |   |                   |   |   |              |   |   |   |
| Amount of the allowance for loan losses allocated          |   | $                      | 1,296  |   |              | $      | 3,555 |   |

----

|                                 |   | 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 September 30, 2010             |   |   |   |   |                          |   |   |                                                              |   |   |   |   |   |   |   |   |   |   |
| (amounts in thousands except ratios) |   |   |   |   |                          |   |   |                                                              |   |   |   |   |   |   |   |   |   |   |
|                                 |   |   |   |   |                          |   |   |                                                              |   |   |   |   |   |   |   |   |   |   |
| Total Risk Based Capital             |   | $      | 90,802 |   |                          |   | 14.0   | %                                                                 |   | $ | 50,045 |   |   |   | 8 | % |   |   | N/A |   |   |   | N/A |   |
| (to Risk Weighted Assets)            |   |   |   |   |                          |   |   |                                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                 |   |   |   |   |                          |   |   |                                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Tier 1 Capital                       |   | $      | 82,871 |   |                          |   | 12.7   | %                                                                 |   | $ | 26,023 |   |   |   | 4 | % |   |   | N/A |   |   |   | N/A |   |
| (to Risk Weighted Assets)            |   |   |   |   |                          |   |   |                                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                 |   |   |   |   |                          |   |   |                                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Tier 1 Capital                       |   | $      | 82,871 |   |                          |   | 12.1   | %                                                                 |   | $ | 27,413 |   |   |   | 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, 2009              |   |   |   |   |                          |   |   |                                                              |   |   |   |   |   |   |   |   |   |   |
| (amounts in thousands except ratios) |   |   |   |   |                          |   |   |                                                              |   |   |   |   |   |   |   |   |   |   |
|                                 |   |   |   |   |                          |   |   |                                                              |   |   |   |   |   |   |   |   |   |   |
| Total Risk Based Capital             |   | $      | 85,394 |   |                          |   | 14.3   | %                                                                 |   | $ | 47,892 |   |   |   | 8 | % |   |   | N/A |   |   |   | N/A |   |
| (to Risk Weighted Assets)            |   |   |   |   |                          |   |   |                                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                 |   |   |   |   |                          |   |   |                                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Tier 1 Capital                       |   | $      | 77,840 |   |                          |   | 13.7   | %                                                                 |   | $ | 22,674 |   |   |   | 4 | % |   |   | N/A |   |   |   | N/A |   |
| (to Risk Weighted Assets)            |   |   |   |   |                          |   |   |                                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                 |   |   |   |   |                          |   |   |                                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Tier 1 Capital                       |   | $      | 77,840 |   |                          |   | 11.9   | %                                                                 |   | $ | 26,108 |   |   |   | 4 | % |   |   | N/A |   |   |   | N/A |   |
| (to Average Assets)                  |   |   |   |   |                          |   |   |                                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

----

|                                 |   | Actual |   |   | For Capital Adequacy Purposes |   |   | To be Well- Capitalized Under Prompt Corrective Action Provisions |   |
|--------------------------------------|--------|--------|--------|--------|-------------------------------|--------|--------|-------------------------------------------------------------------|--------|
| Parke Bank                           |   | Amount |   |   | Ratio                         |   |   | Amount                                                            |   |   | Ratio |   |   | Amount |   |   | Ratio |   |
|                                 |   |   |   |   |                          |   |   |                                                              |   |   |   |   |   |   |   |   |   |   |
|                                 |   |   |   |   |                          |   |   |                                                              |   |   |   |   |   |   |   |   |   |   |
| As of September 30, 2010             |   |   |   |   |                          |   |   |                                                              |   |   |   |   |   |   |   |   |   |   |
| (amounts in thousands except ratios) |   |   |   |   |                          |   |   |                                                              |   |   |   |   |   |   |   |   |   |   |
|                                 |   |   |   |   |                          |   |   |                                                              |   |   |   |   |   |   |   |   |   |   |
| Total Risk Based Capital             |   | $      | 90,797 |   |                          |   | 14.0   | %                                                                 |   | $ | 50,928 |   |   |   | 8 | % |   | $ | 63,660 |   |   |   | 10 | % |
| (to Risk Weighted Assets)            |   |   |   |   |                          |   |   |                                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                 |   |   |   |   |                          |   |   |                                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Tier 1 Capital                       |   | $      | 82,866 |   |                          |   | 12.8   | %                                                                 |   | $ | 25,464 |   |   |   | 4 | % |   | $ | 38,196 |   |   |   | 6 | % |
| (to Risk Weighted Assets)            |   |   |   |   |                          |   |   |                                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                 |   |   |   |   |                          |   |   |                                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Tier 1 Capital                       |   | $      | 82,866 |   |                          |   | 11.7   | %                                                                 |   | $ | 27,282 |   |   |   | 4 | % |   | $ | 34,103 |   |   |   | 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, 2009              |   |   |   |   |                          |   |   |                                                              |   |   |   |   |   |   |   |   |   |   |
| (amounts in thousands except ratios) |   |   |   |   |                          |   |   |                                                              |   |   |   |   |   |   |   |   |   |   |
|                                 |   |   |   |   |                          |   |   |                                                              |   |   |   |   |   |   |   |   |   |   |
| Total Risk Based Capital             |   | $      | 85,448 |   |                          |   | 14.3   | %                                                                 |   | $ | 47,890 |   |   |   | 8 | % |   | $ | 59,863 |   |   |   | 10 | % |
| (to Risk Weighted Assets)            |   |   |   |   |                          |   |   |                                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                 |   |   |   |   |                          |   |   |                                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Tier 1 Capital                       |   | $      | 77,922 |   |                          |   | 13.0   | %                                                                 |   | $ | 23,945 |   |   |   | 4 | % |   | $ | 35,918 |   |   |   | 6 | % |
| (to Risk Weighted Assets)            |   |   |   |   |                          |   |   |                                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                 |   |   |   |   |                          |   |   |                                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Tier 1 Capital                       |   | $      | 77,922 |   |                          |   | 11.9   | %                                                                 |   | $ | 26,124 |   |   |   | 4 | % |   | $ | 32,655 |   |   |   | 5 | % |
| (to Average Assets)                  |   |   |   |   |                          |   |   |                                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

----

|                                                                    | For the nine months ended September 30, (amounts in thousands) |   |
|-------------------------------------------------------------------------|---------------------------------------------------------------------|--------|
|                                                                    | 2010                                                                |   |   | 2009 |   |
| Net income                                                              |                                                                | $      | 5,793 |   |   | $ | 4,403 |   |
| Non-credit unrealized gains (losses) on debt securities with OTTI:      |                                                                |   |   |   |   |   |   |   |
|    Available-for-sale                                    |                                                                |   | 142 |   |   |   | (863 | ) |
| Unrealized gains (losses) on available for sale securities without OTTI |                                                                |   | 3,201 |   |   |   | 4,399 |   |
| Minimum pension liability                                               |                                                                |   | 54 |   |   |   | (15 | ) |
| Tax impact                                                              |                                                                |   | (1,359 | ) |   |   | (1,408 | ) |
| Comprehensive income                                                    |                                                                |   | 7,831 |   |   |   | 6,516 |   |
| Net income attributable to noncontrolling (minority) interest           |                                                                |   | (168 | ) |   |   | — |   |
| Comprehensive income attributable to Company                            |                                                                | $      | 7,663 |   |   | $ | 6,516 |   |

|                                                                    | For the three months ended September30, (amounts in thousands) |   |
|-------------------------------------------------------------------------|---------------------------------------------------------------------|--------|
|                                                                    | 2010                                                                |   |   | 2009 |   |
| Net income                                                              |                                                                | $      | 1,941 |   |   | $ | 1,695 |   |
| Non-credit unrealized gains (losses) on debt securities with OTTI:      |                                                                |   |   |   |   |   |   |   |
|    Available-for-sale                                    |                                                                |   | 64 |   |   |   | (770 | ) |
| Unrealized gains (losses) on available for sale securities without OTTI |                                                                |   | (112 | ) |   |   | 5,392 |   |
| Minimum pension liability                                               |                                                                |   | 19 |   |   |   | 15 |   |
| Tax impact                                                              |                                                                |   | 11 |   |   |   | (1,855 | ) |
| Comprehensive income                                                    |                                                                |   | 1,923 |   |   |   | 4,477 |   |
| Net income attributable to noncontrolling (minority) interest           |                                                                |   | (113 | ) |   |   | — |   |
| Comprehensive income attributable to Company                            |                                                                | $      | 1,810 |   |   | $ | 4,477 |   |

|                                                                    |   | September 30,2010      |   |   | December 31, 2009 |   |
|-------------------------------------------------------------------------|--------|------------------------|--------|--------|-------------------|--------|
|                                                                    |   | (amounts in thousands) |   |
| Securities                                                              |   |                   |   |   |              |   |
| Non-credit unrealized losses on debt securities with OTTI:              |   |                   |   |   |              |   |
|     Available for sale                              |   | $                      | (611   | )      |              | $      | (753 | ) |
| Unrealized gains (losses) on available for sale securities without OTTI |   |                   | (418   | )      |              |   | (3,619 | ) |
| Minimum pension liability                                               |   |                   | (353   | )      |              |   | (407 | ) |
| Tax impact                                                              |   |                   | 553    |   |              |   | 1,912 |   |
|                                                                    |   | $                      | (829   | )      |              | $      | (2,867 | ) |

----

|   | 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 September 30, 2010                  |   |                   |    |   |    |   |    |    |   |   |    |   |
| U.S. Government sponsored entities        |   | $                      | — |   |    | $      | 3,287   |    |   | $      | — |   |   | $ | 3,287 |   |
| Corporate debt obligations                |   |                   | — |   |    |   | 2,125   |    |   |   | — |   |   |   | 2,125 |   |
| Residential mortgage-backed securities    |   |                   | — |   |    |   | 15,837  |    |   |   | — |   |   |   | 15,837 |   |
| Collateralized mortgage-backed securities |   |                   |    |   |    |   | 2,395   |    |   |   | 606     |   |   |   | 3,001 |   |
| Collateralized debt obligations           |   |                   | — |   |    |   | — |    |   |   | 3,647   |   |   |   | 3,647 |   |
| Total                                     |   | $                      | — |   |    | $      | 23,644  |    |   | $      | 4,253   |   |   | $ | 27,897 |   |
|                                      |   |                   |    |   |    |   |    |    |   |   |    |   |   |   |   |   |
|  As of December 31, 2009             |   |                   |    |   |    |   |    |    |   |   |    |   |   |   |   |   |
| U.S. Government sponsored entities        |   | $                      | — |   |    | $      | 3,232   |    |   | $      | — |   |   | $ | 3,232 |   |
| Corporate debt obligations                |   |                   | — |   |    |   | 1,970   |    |   |   | — |   |   |   | 1,970 |   |
| Residential mortgage-backed securities    |   |                   | — |   |    |   | 19,698  |    |   |   | — |   |   |   | 19,698 |   |
| Collateralized mortgage-backed securities |   |                   |    |   |    |   | 2,669   |    |   |   | 1,140   |   |   |   | 3,809 |   |
| Collateralized debt obligations           |   |                   | — |   |    |   | — |    |   |   | 711     |   |   |   | 711 |   |
| Total                                     |   | $                      | — |   |    | $      | 27,569  |    |   | $      | 1,851   |   |   | $ | 29,420 |   |

----

|                                             |   | Securities Available for Sale |    |
|--------------------------------------------------|--------|-------------------------------|---------|
|                                             |   | 2010                          |    | 2009 |   |
|                                             |   | (amounts in thousands)        |    |
| Beginning balance at January 1,                  |   | $                             | 1,851   |   |   | $ | 1,705 |   |
| Total net gains (losses) included in:            |   |                          |    |   |   |   |   |   |
| Net income (loss)                                |   |                          | (66     | ) |   |   | (1,538 | ) |
| Other comprehensive income (loss)                |   |                          | 2,638   |   |   |   | 2,925 |   |
| Purchases, sales, issuances and settlements, net |   |                          | (170    | ) |   |   | — |   |
| Net transfers into Level 3                       |   |                          | — |   |   |   | 2,280 |   |
| Ending balance September 30,                     |   | $                             | 4,253   |   |   | $ | 5,372 |   |

| Financial Assets                                            |   | Level 1                |    |   | Level 2 |   |    | Level 3 |   |   | Total  |   |
|-------------------------------------------------------------|--------|------------------------|---------|--------|---------|--------|---------|---------|--------|--------|--------|--------|
|                                                        |   | (amounts in thousands) |    |
| As of September 30, 2010                                    |   |                   |    |   |    |   |    |    |   |   |   |   |
|       Impaired Loans          |   | $                      | — |   |    | $      | — |    |   | $      | 53,326 |   |   | $ | 53,326 |   |
|       Other Real Estate Owned |   |                   | — |   |    |   | — |    |   |   | 7,778  |   |   |   | 7,778 |   |
|                                                        |   |                   |    |   |    |   |    |    |   |   |   |   |   |   |   |   |
| As of December 31, 2009                                     |   |                   |    |   |    |   |    |    |   |   |   |   |   |   |   |   |
|       Impaired Loans          |   | $                      | — |   |    | $      | — |    |   | $      | 47,334 |   |   | $ | 47,334 |   |

----

----

|                                                            |   | September 30, 2010     |          | December 31, 2009 |      |
|-----------------------------------------------------------------|--------|------------------------|---------------|-------------------|-----------|
| CarryingValue                                                   |   | FairValue              | CarryingValue |              | FairValue |   |
|                                                            |   | (amounts in thousands) |          |
| Financial Assets:                                               |   |
| Cash and cash equivalents                                       |   | $                      | 51,170        |              | $         | 51,170 |   | $ | 4,154 |   | $ | 4,154 |   |
| Investment securities (available-for-sale and held-to-maturity) |   |                   | 29,888        |              |      | 30,038 |   |   | 31,929 |   |   | 31,824 |   |
| Restricted stock                                                |   |                   | 3,087         |              |      | 3,087 |   |   | 3,094 |   |   | 3,094 |   |
| Loans, net                                                      |   |                   | 620,315       |              |      | 623,244 |   |   | 590,997 |   |   | 585,346 |   |
| Accrued interest receivable                                     |   |                   | 3,303         |              |      | 3,303 |   |   | 2,808 |   |   | 2,808 |   |
|                                                            |   |                   |          |              |      |   |   |   |   |   |   |   |   |
| Financial Liabilities:                                          |   |                   |          |              |      |   |   |   |   |   |   |   |   |
| Demand and savings deposits                                     |   | $                      | 285,832       |              | $         | 285,832 |   | $ | 257,566 |   | $ | 257,566 |   |
| Time deposits                                                   |   |                   | 313,148       |              |      | 315,351 |   |   | 261,882 |   |   | 264,901 |   |
| Borrowings                                                      |   |                   | 69,543        |              |      | 74,056 |   |   | 67,831 |   |   | 68,859 |   |
| Accrued interest payable                                        |   |                   | 865           |              |      | 865 |   |   | 821 |   |   | 821 |   |

----

----

----

----

----

----

----

|                                             |   | For the Nine Months Ended September 30, |    |
|--------------------------------------------------|--------|----------------------------------------------|---------|
|                                             |   | 2010                                         |    |   | 2009 |   |
|                                             |   | Average Balance                              |    |   | Interest Income/Expense |   |   | Yield/Cost |   |   | Average Balance |   |   | Interest Income/ Expense |   |   | Yield/Cost |   |
|                                             |   | (amounts in thousands, except percentages)   |    |
| Assets                                           |   |                                         |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Loans                                            |   | $                                            | 618,846 |   |   | $ | 29,621 |   |   |   | 6.40 | % |   | $ | 582,192 |   |   | $ | 28,646 |   |   |   | 6.58 | % |
| Investment securities                            |   |                                         | 35,936  |   |   |   | 1,290 |   |   |   | 4.80 | % |   |   | 33,564 |   |   |   | 1,462 |   |   |   | 5.82 | % |
| Federal funds sold and cash equivalents          |   |                                         | 115     |   |   |   | — |   |   |   | 0.00 | % |   |   | 238 |   |   |   | 1 |   |   |   | 0.56 | % |
| Total interest-earning assets                    |   |                                         | 654,897 |   |   |   | 30,911 |   |   |   | 6.31 | % |   |   | 615,994 |   |   | $ | 30,109 |   |   |   | 6.54 | % |
| Non-interest earning assets                      |   |                                         | 44,511  |   |   |   |   |   |   |   |   |   |   |   | 36,229 |   |   |   |   |   |   |   |   |   |
| Allowance for loan losses                        |   |                                         | (14,075 | ) |   |   |   |   |   |   |   |   |   |   | (8,936 | ) |   |   |   |   |   |   |   |   |
| Total assets                                     |   | $                                            | 685,333 |   |   |   |   |   |   |   |   |   |   | $ | 643,287 |   |   |   |   |   |   |   |   |   |
|                                             |   |                                         |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Liabilities and Shareholders’ Equity       |   |                                         |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest bearing deposits                        |   |                                         |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| NOWs                                             |   | $                                            | 12,070  |   |   |   | 106 |   |   |   | 1.17 | % |   | $ | 10,807 |   |   |   | 119 |   |   |   | 1.47 | % |
| Money markets                                    |   |                                         | 89,292  |   |   |   | 790 |   |   |   | 1.18 | % |   |   | 65,885 |   |   |   | 766 |   |   |   | 1.55 | % |
| Savings                                          |   |                                         | 145,992 |   |   |   | 1,672 |   |   |   | 1.53 | % |   |   | 95,526 |   |   |   | 1,632 |   |   |   | 2.28 | % |
| Time deposits                                    |   |                                         | 190,631 |   |   |   | 2,917 |   |   |   | 2.05 | % |   |   | 183,553 |   |   |   | 4,534 |   |   |   | 3.30 | % |
| Brokered certificates of deposit                 |   |                                         | 90,221  |   |   |   | 1,756 |   |   |   | 2.60 | % |   |   | 148,344 |   |   |   | 3,807 |   |   |   | 3.43 | % |
| Total interest-bearing deposits                  |   |                                         | 528,206 |   |   |   | 7,241 |   |   |   | 1.83 | % |   |   | 504,115 |   |   |   | 10,858 |   |   |   | 2.88 | % |
| Borrowings                                       |   |                                         | 66,405  |   |   |   | 1,330 |   |   |   | 2.68 | % |   |   | 57,774 |   |   |   | 1,578 |   |   |   | 3.65 | % |
| Total interest-bearing liabilities               |   |                                         | 594,611 |   |   |   | 8,571 |   |   |   | 1.93 | % |   |   | 561,889 |   |   | $ | 12,436 |   |   |   | 2.96 | % |
| Non-interest bearing deposits                    |   |                                         | 19,533  |   |   |   |   |   |   |   |   |   |   |   | 19,944 |   |   |   |   |   |   |   |   |   |
| Other liabilities                                |   |                                         | 4,560   |   |   |   |   |   |   |   |   |   |   |   | 4,244 |   |   |   |   |   |   |   |   |   |
| Total liabilities                                |   |                                         | 618,704 |   |   |   |   |   |   |   |   |   |   |   | 586,077 |   |   |   |   |   |   |   |   |   |
| Shareholders’ equity                       |   |                                         | 66,629  |   |   |   |   |   |   |   |   |   |   |   | 57,210 |   |   |   |   |   |   |   |   |   |
| Total liabilities and shareholders’ equity |   | $                                            | 685,333 |   |   |   |   |   |   |   |   |   |   | $ | 643,287 |   |   |   |   |   |   |   |   |   |
| Net interest income                              |   |                                         |    |   |   | $ | 22,340 |   |   |   |   |   |   |   |   |   |   | $ | 17,673 |   |   |   |   |   |
| Interest rate spread                             |   |                                         |    |   |   |   |   |   |   |   | 4.38 | % |   |   |   |   |   |   |   |   |   |   | 3.58 | % |
| Net interest margin                              |   |                                         |    |   |   |   |   |   |   |   | 4.56 | % |   |   |   |   |   |   |   |   |   |   | 3.84 | % |

----

----

----

|                                             |   | For the Three Months Ended September 30, |    |
|--------------------------------------------------|--------|-----------------------------------------------|---------|
|                                             |   | 2010                                          |    |   | 2009 |   |
|                                             |   | Average Balance                               |    |   | Interest Income/Expense |   |   | Yield/Cost |   |   | Average Balance |   |   | Interest Income/ Expense |   |   | Yield/Cost |   |
|                                             |   | (amounts in thousands, except percentages)    |    |
| Assets                                           |   |                                          |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Loans                                            |   | $                                             | 627,995 |   |   | $ | 10,044 |   |   |   | 6.35 | % |   | $ | 598,251 |   |   | $ | 9,680 |   |   |   | 6.42 | % |
| Investment securities                            |   |                                          | 35,603  |   |   |   | 428 |   |   |   | 4.77 | % |   |   | 30,100 |   |   |   | 448 |   |   |   | 5.90 | % |
| Federal funds sold and cash equivalents          |   |                                          | 80      |   |   |   | — |   |   |   | 0.00 | % |   |   | 119 |   |   |   | — |   |   |   | 0.00 | % |
| Total interest-earning assets                    |   |                                          | 663,678 |   |   |   | 10,472 |   |   |   | 6.26 | % |   |   | 628,470 |   |   | $ | 10,128 |   |   |   | 6.39 | % |
| Non-interest earning assets                      |   |                                          | 61,432  |   |   |   |   |   |   |   |   |   |   |   | 33,597 |   |   |   |   |   |   |   |   |   |
| Allowance for loan losses                        |   |                                          | (15,535 | ) |   |   |   |   |   |   |   |   |   |   | (9,918 | ) |   |   |   |   |   |   |   |   |
| Total assets                                     |   | $                                             | 709,575 |   |   |   |   |   |   |   |   |   |   | $ | 652,149 |   |   |   |   |   |   |   |   |   |
|                                             |   |                                          |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Liabilities and Shareholders’ Equity       |   |                                          |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest bearing deposits                        |   |                                          |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| NOWs                                             |   | $                                             | 14,796  |   |   |   | 47 |   |   |   | 1.26 | % |   | $ | 10,997 |   |   |   | 35 |   |   |   | 1.26 | % |
| Money markets                                    |   |                                          | 87,598  |   |   |   | 257 |   |   |   | 1.16 | % |   |   | 73,798 |   |   |   | 245 |   |   |   | 1.32 | % |
| Savings                                          |   |                                          | 148,944 |   |   |   | 543 |   |   |   | 1.45 | % |   |   | 117,588 |   |   |   | 564 |   |   |   | 1.90 | % |
| Time deposits                                    |   |                                          | 218,183 |   |   |   | 1,060 |   |   |   | 1.93 | % |   |   | 184,027 |   |   |   | 1,425 |   |   |   | 3.07 | % |
| Brokered certificates of deposit                 |   |                                          | 80,635  |   |   |   | 469 |   |   |   | 2.31 | % |   |   | 125,579 |   |   |   | 1,022 |   |   |   | 3.23 | % |
| Total interest-bearing deposits                  |   |                                          | 550,156 |   |   |   | 2,376 |   |   |   | 1.71 | % |   |   | 511,989 |   |   |   | 3,291 |   |   |   | 2.55 | % |
| Borrowings                                       |   |                                          | 65,211  |   |   |   | 444 |   |   |   | 2.70 | % |   |   | 54,889 |   |   |   | 474 |   |   |   | 3.43 | % |
| Total interest-bearing liabilities               |   |                                          | 615,367 |   |   |   | 2,820 |   |   |   | 1.82 | % |   |   | 566,878 |   |   | $ | 3,765 |   |   |   | 2.63 | % |
| Non-interest bearing deposits                    |   |                                          | 20,356  |   |   |   |   |   |   |   |   |   |   |   | 20,789 |   |   |   |   |   |   |   |   |   |
| Other liabilities                                |   |                                          | 4,892   |   |   |   |   |   |   |   |   |   |   |   | 4,515 |   |   |   |   |   |   |   |   |   |
| Total liabilities                                |   |                                          | 640,615 |   |   |   |   |   |   |   |   |   |   |   | 592,182 |   |   |   |   |   |   |   |   |   |
| Shareholders’ equity                       |   |                                          | 68,960  |   |   |   |   |   |   |   |   |   |   |   | 59,967 |   |   |   |   |   |   |   |   |   |
| Total liabilities and shareholders’ equity |   | $                                             | 709,575 |   |   |   |   |   |   |   |   |   |   | $ | 652,149 |   |   |   |   |   |   |   |   |   |
| Net interest income                              |   |                                          |    |   |   | $ | 7,652 |   |   |   |   |   |   |   |   |   |   | $ | 6,363 |   |   |   |   |   |
| Interest rate spread                             |   |                                          |    |   |   |   |   |   |   |   | 4.44 | % |   |   |   |   |   |   |   |   |   |   | 3.76 | % |
| Net interest margin                              |   |                                          |    |   |   |   |   |   |   |   | 4.57 | % |   |   |   |   |   |   |   |   |   |   | 4.02 | % |

----

----

----

----

----

| ·   | 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; |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Permanently increases the deposit insurance coverage to $250 thousand 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. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| ·   | Abolishes the Office of Thrift Supervision and delegates its supervisory and rule making functions to the Office of the Comptroller of the Currency (“OCC”), the primary federal banking regulator of national banks; |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Delegates supervisory and rulemaking functions to the Board of Governors of the Federal Reserve System for savings and loan holding companies, such as the Company; |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 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. |
|----|--------|-------------------------------------------------|

----

| Date:  | November 15 2010 |   |   | /s/ Vito S. Pantilione                |
|--------|-----------------------|--------|--------|---------------------------------------|
|   |                  |   |   | Vito S. Pantilione                    |
|   |                  |   |   | President and Chief Executive Officer |
|   |                  |   |   | (Principal Executive Officer)         |

| Date:  | November 15, 2010 |   |   | /s/ John F. Hawkins            |
|--------|-------------------|--------|--------|--------------------------------|
|   |              |   |   | John F. Hawkins                |
|   |              |   |   | Senior Vice President and      |
|   |              |   |   | Chief Financial Officer        |
|   |              |   |   | (Principal Accounting Officer) |

----