UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

                                    FORM 10-Q

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

For the quarterly period ended: June 30, 2007
                                       or

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

For the transition period from ____________ to ____________

Commission File No. 000-51338

                               PARKE BANCORP, INC.
             (Exact name of registrant as specified in its charter)

             New Jersey                                          65-1241959
(State or other jurisdiction of                                (IRS Employer
incorporation or organization)                               Identification No.)

       601 Delsea Drive, Washington Township, New Jersey          08080
           (Address of principal executive offices)             (Zip Code)

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

                                       N/A
              (Former name, former address and former fiscal year,
                         if changed since last report)

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

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

Large accelerated filer [ ]    Accelerated filer [ ]   Non-accelerated filer [X]

     Indicate  by check mark  whether  the  registrant  is a shell  company  (as
defined in Rule 12b-2 of the Exchange Act).

                                                 Yes [ ]                No [X]

                      APPLICABLE ONLY TO CORPORATE ISSUERS

     As of August 13, 2007,  there were issued and outstanding  3,161,153 shares
of the registrant's common stock.

<PAGE>

                               PARKE BANCORP, INC.

                                    FORM 10-Q

                       FOR THE QUARTER ENDED JUNE 30, 2007

                                      INDEX


                                                                            Page
                                                                            ----
Part I       FINANCIAL INFORMATION
------

Item 1.      Financial Statements..............................................1
Item 2.      Management's Discussion and Analysis of Financial Condition
                 and Results of Operations....................................11
Item 3.      Quantitative and Qualitative Disclosures About Market Risk.......19
Item 4.      Controls and Procedures..........................................19

Part II      OTHER INFORMATION
-------

Item 1.      Legal Proceedings................................................19
Item 1A.     Risk Factors.....................................................20
Item 2.      Unregistered Sales of Equity Securities and Use of Proceeds......20
Item 3.      Defaults Upon Senior Securities..................................20
Item 4.      Submission of Matters to a Vote of Security Holders..............20
Item 5.      Other Information................................................20
Item 6.      Exhibits.........................................................20

SIGNATURES

EXHIBITS and CERTIFICATIONS

<PAGE>

                          PART I. FINANCIAL INFORMATION

ITEM 1.  FINANCIAL STATEMENTS

                      PARKE BANCORP, INC. AND SUBSIDIARIES
                           CONSOLIDATED BALANCE SHEETS
                                   (unaudited)

<TABLE>
<CAPTION>
                                                               June 30,       December 31,
                                                                2007             2006
                                                            -------------    -------------
<S>                                                       <C>              <C>
Assets
Cash and cash due from banks                                $   3,330,339    $   6,183,916
Federal funds sold and other cash equivalents                   4,527,846        5,076,895
                                                            -------------    -------------
         Cash and cash equivalents                              7,858,185       11,260,811
                                                            -------------    -------------

Investment securities available for sale, at market value      27,797,087       24,530,067
Investment securities held to maturity, at amortized cost
     (market value $2,402,957 at June 30, 2007 and
     $2,425,629 at December 31, 2006)                           2,443,106        2,430,958
                                                            -------------    -------------
         Total investment securities                           30,240,193       26,961,025
                                                            -------------    -------------

Restricted stock, at cost                                       1,757,500        1,492,800
                                                            -------------    -------------

Loans                                                         372,421,916      310,555,306
Less: allowance for loan losses                                (5,221,500)      (4,511,004)
                                                            -------------    -------------
         Total net loans                                      367,200,416      306,044,302
                                                            -------------    -------------

Bank premises and equipment, net                                3,285,290        3,431,794
Bank owned life insurance                                       4,721,735        4,632,159
Accrued interest receivable and other assets                    5,761,298        6,173,880
                                                            -------------    -------------

         Total assets                                       $ 420,824,617    $ 359,996,771
                                                            =============    =============
</TABLE>

See Notes to Consolidated Financial Statements     1


<PAGE>

                      PARKE BANCORP, INC. AND SUBSIDIARIES
                           CONSOLIDATED BALANCE SHEETS
                                   (unaudited)

<TABLE>
<CAPTION>
                                                                         June 30,      December 31,
                                                                           2007             2006
                                                                      -------------    -------------
<S>                                                                 <C>              <C>
Liabilities and Shareholders' Equity

Liabilities
     Deposits
       Noninterest-bearing demand                                     $  20,130,125    $  18,287,577
       Interest-bearing                                                 321,716,136      271,641,283
                                                                      -------------    -------------
         Total deposits                                                 341,846,261      289,928,860

     Borrowed funds                                                       6,250,000          100,000
     Federal Home Loan Bank advances                                     21,981,698       24,441,370
     Subordinated debentures                                             13,403,000       10,310,000
     Accrued interest payable and other liabilities                       3,708,826        4,507,381
                                                                      -------------    -------------

         Total liabilities                                              387,189,785      329,287,611
                                                                      -------------    -------------

Commitments and Contingencies (Note 1)

Shareholders' Equity
     Common stock, $0.10 par value, 10,000,000 shares
       authorized; 3,236,310 shares issued at June 30, 2007 and
       2,884,937 shares issued at December 31, 2006                         323,631          288,494
     Preferred stock, 1,000,000 shares authorized; no shares issued
       and outstanding                                                           --               --
     Additional paid-in capital                                          26,379,370       21,153,220
     Retained earnings                                                    8,804,738       10,847,763
     Accumulated other comprehensive (loss)                                (583,283)        (420,250)
     Treasury stock, at cost (75,826 shares at June 30, 2007 and
       68,026 at December 31, 2006)                                      (1,289,624)      (1,160,067)
                                                                      -------------    -------------
         Total shareholders' equity                                      33,634,832       30,709,160
                                                                      -------------    -------------
         Total liabilities and shareholders' equity                   $ 420,824,617    $ 359,996,771
                                                                      =============    =============
</TABLE>

See Notes to Consolidated Financial Statements     2

<PAGE>

                      PARKE BANCORP, INC. AND SUBSIDIARIES
                      CONSOLIDATED STATEMENTS OF OPERATIONS
                                   (unaudited)

<TABLE>
<CAPTION>
                                                  For the three  For the three   For the six    For the six
                                                  months ended   months ended    months ended   months ended
                                                  June 30, 2007  June 30, 2006   June 30, 2007  June 30, 2006
                                                  -------------  -------------   -------------  -------------
<S>                                            <C>             <C>            <C>             <C>
Interest and Dividend Income
  Loans, including fees                          $  7,715,481    $  5,789,039   $ 14,657,081    $ 11,039,027
  Securities                                          402,119         331,653        788,336         634,104
  Federal funds sold                                   40,811          37,763        131,993          54,821
                                                 ------------    ------------   ------------    ------------
          Total interest and dividend income        8,158,411       6,158,455     15,577,410      11,727,952
                                                 ------------    ------------   ------------    ------------

Interest Expense
  Deposits                                          3,895,184       2,414,195      7,253,394       4,437,853
  Federal Home Loan Bank Advances                     295,949         212,982        633,147         414,300
  Other borrowings                                    173,435         198,751        357,573         387,763
                                                 ------------    ------------   ------------    ------------
          Total interest expense                    4,364,568       2,825,928      8,244,114       5,239,916
                                                 ------------    ------------   ------------    ------------

          Net interest income                       3,793,843       3,332,527      7,333,296       6,488,036

  Provision For Loan Losses                           210,000         328,000        710,496         563,000
                                                 ------------    ------------   ------------    ------------

Net Interest Income After Provision For Losses      3,583,843       3,004,527      6,622,800       5,925,036
                                                 ------------    ------------   ------------    ------------
Noninterest Income
 Gain on sale of other real estate owned              205,090              --        205,090              --
 Service charges and other fee income                 107,650         124,835        590,332         337,784
 Bank owned life insurance                             45,647          41,800         89,576          84,700
 Loss on sale of securities                           (14,609)             --        (14,609)             --
                                                 ------------    ------------   ------------    ------------
          Total noninterest income                    343,778         166,635        870,389         422,484
                                                 ------------    ------------   ------------    ------------

Noninterest Expenses
  Compensation and benefits                           700,318         636,028      1,486,153       1,332,525
  Occupancy, equipment and data processing            265,778         221,163        533,013         433,874
  Marketing and business development                   73,594          73,481        141,077         126,908
  Professional services                               185,766         198,028        299,937         347,058
  Other operating expenses                            248,619         181,251        493,135         446,262
                                                 ------------    ------------   ------------    ------------
          Total noninterest expenses                1,474,075       1,309,951      2,953,315       2,686,627
                                                 ------------    ------------   ------------    ------------

Income Before Income Tax Expense                    2,453,546       1,861,211      4,539,874       3,660,893

Income Tax Expense                                    972,098         740,000      1,781,196       1,464,220
                                                 ------------    ------------   ------------    ------------

Net Income                                       $  1,481,448    $  1,121,211   $  2,758,678    $  2,196,673
                                                 ============    ============   ============    ============

Net Income Per Common Share
      Basic                                      $       0.47    $       0.36   $       0.88    $       0.71
                                                 ============    ============   ============    ============
      Diluted                                    $       0.41    $       0.30   $       0.77    $       0.60
                                                 ============    ============   ============    ============


Weighted Average Shares Outstanding
      Basic                                         3,163,925       3,113,255      3,151,400       3,089,423
      Diluted                                       3,617,051       3,687,334      3,601,525       3,691,327
</TABLE>


See Notes to Consolidated Financial Statements     3

<PAGE>

                      PARKE BANCORP, INC. AND SUBSIDIARIES
                 CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY
                 FOR THE SIX MONTHS ENDED JUNE 30, 2007 AND 2006
                                   (unaudited)

<TABLE>
<CAPTION>
                                                                                    Accumulated
                                                      Additional                        Other                         Total
                                       Common          Paid-In        Retained      Comprehensive                   Shareholders'
                                       Stock           Capital        Earnings      Income (Loss) Treasury Stock      Equity
                                    ------------    ------------    ------------    ------------  --------------    ------------
<S>                               <C>             <C>             <C>             <C>             <C>             <C>
Balance,  December 31, 2005         $    231,736    $ 20,511,410    $  6,787,118    $   (286,296)   $    (50,641)   $ 27,193,327

Stock options and warrants
   exercised                               6,127         445,611               -               -               -         451,738
Treasury stock purchased                       -               -               -               -        (392,671)       (392,671)
20% stock dividend                        47,243         (51,972)              -               -               -          (4,729)
Comprehensive income:
   Net income for the period                   -               -       2,196,673               -               -       2,196,673
Change in net unrealized gain
   on securities available for
   sale, net of reclassification
   adjustment and tax effects                  -               -               -        (184,378)              -        (184,378)
                                                                                                                    ------------
Total comprehensive income                                                                                             2,012,295
                                    ------------    ------------    ------------    ------------    ------------    ------------
   Balance, June 30, 2006           $    285,106    $ 20,905,049    $  8,983,791    $   (470,674)   $   (443,312)   $ 29,259,960
                                    ============    ============    ============    ============    ============    ============

Balance, December 31, 2006          $    288,494    $ 21,153,220    $ 10,847,763    $   (420,250)   $ (1,160,067)     30,709,160
Stock options and warrants
   exercised                               5,794         441,338               -               -               -         447,132
Stock compensation                             -          16,526               -               -               -          16,526
Treasury stock purchased                       -               -               -               -        (129,557)       (129,557)
10% stock dividend                        29,343       4,768,286      (4,801,703)              -               -          (4,074)
Comprehensive income:
Net income for the period                      -               -       2,758,678               -               -       2,758,678
Change in net unrealized gain
   on securities available for
   sale,  net of reclassification
   adjustment and tax effects                                                           (172,957)                       (172,957)
Adjustment to minimum
   pension liability                                                                       9,924                           9,924
                                    ------------    ------------    ------------    ------------    ------------    ------------
Total comprehensive income                                                                                             2,595,645
                                    ============    ============    ============    ============    ============    ============
Balance,  June 30, 2007             $    323,631    $ 26,379,370    $  8,804,738    $   (583,283)   $ (1,289,624)   $ 33,634,832
                                    ============    ============    ============    ============    ============    ============
</TABLE>

See Notes to Consolidated Financial Statements     4

<PAGE>

                      PARKE BANCORP, INC. AND SUBSIDIARIES
                      CONSOLIDATED STATEMENTS OF CASH FLOWS
                                   (unaudited)
<TABLE>
<CAPTION>

                                                                            For the Six Months Ended June 30,
                                                                            ---------------------------------
                                                                                   2007            2006
                                                                              ------------    ------------
<S>                                                                         <C>             <C>
Operating Activities
   Net income                                                                 $  2,758,678    $  2,196,673
   Adjustments to reconcile net income to net cash provided by
   operating activities:
     Depreciation                                                                  154,284         124,486
     Provision for loan losses                                                     710,496         563,000
     Net (accretion) of investment securities premiums/discounts                   (24,702)        (10,379)
     Stock compensation                                                             16,526            --
      Bank owned life insurance income                                             (89,576)        (84,700)
      Supplemental executive retirement plan                                       129,516         147,119
      Loss on sale of investments                                                   14,609            --
   Changes in operating assets and liabilities:
     Decrease in accrued interest receivable and other assets                      438,018         128,679
      (Decrease) increase in accrued interest payable and other liabilities       (800,925)        251,691
                                                                              ------------    ------------
         Net cash provided by operating activities                               3,306,924       3,316,570
                                                                              ------------    ------------

Investing Activities
   Purchases of investment securities available for sale                        (7,287,767)     (2,000,000)
   (Redemptions) purchases of restricted stock                                    (264,700)         36,400
   Proceeds from sales of investment securities available for sale                 985,391            --
   Proceeds from maturities of investment securities available for sale          2,050,000            --
   Principal payments on mortgage-backed securities                                694,721         551,645
   Net increase in loans                                                       (61,800,644)    (35,243,780)
   Purchases of bank premises and equipment                                         (7,780)        (54,535)
                                                                              ------------    ------------
         Net cash used in investing activities                                 (65,630,779)    (36,710,270)
                                                                              ------------    ------------

Financing Activities
   Proceeds from exercise of stock options and warrants                            447,132         451,738
   Purchase of treasury stock                                                     (129,557)       (392,671)
   Stock dividends                                                                  (4,074)         (4,729)
   Net increase (decrease) in other borrowings                                   6,150,000        (163,500)
   Net decrease in Federal Home Loan Bank Advances                              (2,459,672)     (2,039,336)
   Proceeds from issuance of subordinated debentures                             3,000,000            --
   Net increase in interest-bearing deposits                                    50,074,852      36,562,504
   Net increase in noninterest-bearing deposits                                  1,842,548       1,248,901
                                                                              ------------    ------------
         Net cash provided by financing activities                              58,921,229      35,662,907
                                                                              ------------    ------------

         (Decrease) increase in cash and cash equivalents                       (3,402,626)      2,269,207

Cash and Cash Equivalents at January 1,                                         11,260,811       4,380,036
                                                                              ------------    ------------

Cash and Cash Equivalents at June 30,                                         $  7,858,185    $  6,649,243
                                                                              ============    ============

Supplemental Disclosure of Cash Flow Information:
   Cash paid during the period for:

     Interest on deposits and borrowings                                      $  8,041,719    $  4,899,035
                                                                              ============    ============

     Income taxes                                                             $  2,310,821    $  1,900,000
                                                                              ============    ============
</TABLE>
See Notes to Consolidated Financial Statements     5

<PAGE>

                      PARKE BANCORP, INC. AND SUBSIDIARIES
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                   (unaudited)


NOTE 1.  GENERAL

Business

         Parke Bancorp, Inc. ("Parke Bancorp or the "Company") is a bank holding
company  incorporated  under the laws of the State of New Jersey in January 2005
for the sole purpose of becoming the holding company of Parke Bank (the "Bank").

         The Bank is a commercial bank which commenced operations on January 28,
1999. The Bank is chartered by the New Jersey  Department of Banking and insured
by the Federal Deposit  Insurance  Corporation  ("FDIC").  Parke Bancorp and the
Bank maintain their principal offices at 601 Delsea Drive,  Washington Township,
New Jersey.  The Bank also conducts  business  through offices in Northfield and
Washington  Township,  New Jersey and Philadelphia,  Pennsylvania and has a loan
production office in Millville, New Jersey.

Financial Statements

         The accompanying  financial  statements as of June 30, 2007 and for the
three and six month periods  ended June 30, 2007 and 2006  included  herein have
not been audited. Certain information and footnote disclosures normally included
in  financial  statements  prepared in  accordance  with  accounting  principles
generally  accepted in the United States of America ("GAAP") have been condensed
or omitted;  therefore, these financial statements should be read in conjunction
with the Company's audited  financial  statements and the notes thereto included
in the Company's  Annual Report on Form 10-K for the fiscal year ended  December
31, 2006, as filed with the SEC. The accompanying  financial  statements reflect
all adjustments, which are, in the opinion of management, necessary to present a
fair  statement  of  the  results  for  the  interim  periods  presented.   Such
adjustments are of a normal recurring nature.  The results for the three and six
months ended June 30, 2007 are not  necessarily  indicative  of the results that
may be expected for the year ending December 31, 2007 or any other periods.

Basis of Financial Statement Presentation

         The financial statements include the accounts of Parke Bancorp Inc. and
its wholly owned subsidiaries, Parke Bank, Parke Capital Markets and Farm Folly,
LLC.  Parke  Capital Trust I, Parke Capital Trust II and Parke Capital Trust III
are wholly-owned  subsidiaries but are not consolidated because they do not meet
the  consolidation  requirements.  All  significant  inter-company  balances and
transactions  have  been  eliminated.  Such  statements  have been  prepared  in
accordance with GAAP and general practice within the banking industry.

Use of Estimates

         The  preparation of financial  statements  requires  management to make
estimates  and  assumptions  that  affect  the  reported  amounts  of assets and
liabilities and the disclosure of contingent  assets and liabilities at the date
of the financial  statements  and the reported  amounts of revenues and expenses
during the reporting period. Actual results could differ from such estimates.

Investments

         The Company has identified  investment securities that will be held for
indefinite periods of time,  including securities that will be used as a part of
the Bank's  asset/liability  management  strategy and may be sold in response to
changes in interest rates, prepayments and similar factors. These securities are
classified as "available-for-sale" and are carried at fair value, with temporary
unrealized gains or losses reported as a separate component of accumulated other
comprehensive income (losses), net of the related income tax effect. Declines in
the fair value of the individual  available-for-sale securities below their cost
that are other than  temporary  have  resulted in write downs of the  individual
securities  to their fair value

                                       6

<PAGE>

                      PARKE BANCORP, INC. AND SUBSIDIARIES
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                   (unaudited)

and are  included  in  noninterest  income  in the  consolidated  statements  of
operations.    Factors    affecting    the    determination    of   whether   an
other-than-temporary  impairment  has  occurred  include  a  downgrading  of the
security  by a rating  agency,  a  significant  deterioration  in the  financial
condition  of the  issuer,  or that the  Company  would not have the  intent and
ability  to hold a  security  for a period of time  sufficient  to allow for any
anticipated  recovery in fair value.  The  unrealized  losses that existed as of
June 30,  2007 are the result of market  changes  in  interest  rates  since the
securities  were purchased.  This factor,  coupled with the fact the Company has
both the intent and ability to hold  securities for a period of time  sufficient
to allow for any  anticipated  recovery  in fair value,  substantiates  that the
unrealized losses in the available-for-sale portfolio are temporary.

Commitments

         In the  general  course  of  business,  there are  various  outstanding
commitments to extend  credit,  such as letters of credit and  un-advanced  loan
commitments,  which are not reflected in the accompanying  financial statements.
Management  does  not  anticipate  any  material  losses  as a  result  of these
commitments.

Contingencies

         The Company is from time to time a party to routine  litigation  in the
normal course of its business.  Management  does not believe that the resolution
of  this  litigation  will  have a  material  adverse  effect  on the  financial
condition or results of operations of the Company. However, the ultimate outcome
of any such litigation,  as with litigation  generally,  is inherently uncertain
and it is possible that some litigation matters may be resolved adversely to the
Company.

Income Taxes

         When corporate  income tax returns are filed, it is highly certain that
some  positions  taken  would  be  sustained  upon  examination  by  the  taxing
authorities,  while  others are subject to  uncertainty  about the merits of the
position taken or the amount of the position that ultimately would be sustained.
The benefit of a tax position is recognized  in the financial  statements in the
period during which, based on all available evidence,  management believes it is
more-likely-than  not that the  position  will be  sustained  upon  examination,
including  the  resolution  of  appeals or  litigation  processes,  if any.  The
evaluation  of a tax position  taken is  considered  by itself and not offset or
aggregated with other  positions.  Tax positions that meet the  more-likely-than
not recognition threshold are measured as the largest amount of tax benefit that
is more  than 50  percent  likely of being  realized  upon  settlement  with the
applicable  taxing  authority.  The  portion  of  benefits  associated  with tax
positions taken that exceeds the amount measured as described above is reflected
as a liability for unrecognized  tax benefits in the accompanying  balance sheet
along with any  associated  interest and penalties  that would be payable to the
taxing  authorities  upon  examination.  Interest and penalties  associated with
unrecognized  tax benefits are recognized in income tax expense on the statement
of operations.

Recent Accounting Pronouncements

         In  September   2006,   the  FASB  issued  SFAS  No.  157,  Fair  Value
Measurements ("SFAS No. 157"). This statement defines fair value,  established a
framework for measuring fair value in generally accepted accounting  principles,
and expands  disclosures  about fair value  measurements.  SFAS No. 157 does not
require any new fair value measurements, but provides enhanced guidance to other
pronouncements  that require or permit assets or  liabilities  to be measured at
fair value.  This  statement is effective  for financial  statements  issued for
fiscal years beginning after November 15, 2007, and interim periods within those
years.  The Company is  currently  evaluating  the impact of SFAS No. 157 on its
financial statements.

                                       7

<PAGE>

                      PARKE BANCORP, INC. AND SUBSIDIARIES
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                   (unaudited)

         In February  2007,  the FASB issued SFAS No. 159, Fair Value Option for
Financial  Assets and Financial  Liabilities  ("SFAS No. 159").  This  statement
permits  entities to choose to measure many  financial  instruments  and certain
other items at fair value that are not currently required to be measured at fair
value.  SFAS No. 159 is effective for fiscal years  beginning after November 15,
2007, with early adoption permitted provided the entity also elects to apply the
provisions of SFAS No. 157. The Company is currently  evaluating the impact,  if
any, of SFAS No. 159 on its financial position and results of operation.

NOTE 2.  EARNINGS PER SHARE

         Basic  earnings per share is computed by dividing  income  available to
holders of common stock (the numerator) by the weighted average number of common
shares outstanding (the denominator) during the period. Shares issued during the
period are  weighted  for the portion of the period that they were  outstanding.
The weighted  average number of common shares  outstanding  for the three months
ended June 30, 2007 and 2006 was 3,163,925 and 3,113,255,  respectively, and for
the six  months  ended  June 30,  2007 and 2006  was  3,151,400  and  3,089,423,
respectively.

         Diluted  earnings  per share are  similar to the  computation  of basic
earnings  per share  except that the  denominator  is  increased  to include the
number of  additional  common  shares  that would have been  outstanding  if the
dilutive  options  and  warrants  outstanding  had been  exercised.  The assumed
conversion  of  dilutive  options and  warrants  resulted in 453,126 and 574,079
additional   shares  for  the  three  months  ended  June  30,  2007  and  2006,
respectively,  and for the six months  ended June 30,  2007 and 2006 was 450,125
and 601,904, respectively.

         Both basic and diluted earnings per share calculations give retroactive
effect to stock dividends  declared,  including the most recently  completed 10%
stock dividend that was effective April 23, 2007.

NOTE 3.  STOCK COMPENSATION

         Effective  January 1, 2006, the Company  adopted  Financial  Accounting
Standards Board ("FASB")  Statement No. 123 Share-Based  Payment  (Revised 2004)
("SFAS 123R") utilizing the modified  prospective  approach.  Under the modified
prospective transition method, the Company is required to recognize compensation
cost for 1) all  share-based  payments  granted  prior to, but not vested as of,
January 1, 2006 based on the grant date fair value  estimated in accordance with
the original provisions of SFAS 123; and 2) for all share-based payments granted
on or after  January 1, 2006 based on the grant  date fair  value  estimated  in
accordance with SFAS 123R. In accordance with the modified  prospective  method,
the Company has not restated prior period results.

         Prior to  January  1,  2006,  the  Company  accounted  for  share-based
payments under the recognition and measurement provisions of APB Opinion No. 25,
Accounting  for Stock  Issued to  Employees,  and  related  Interpretations,  as
permitted by FASB Statement No. 123,  Accounting for  Stock-Based  Compensation.
All outstanding  stock options as of January 1, 2006 were fully vested (in prior
years,  all options  vested upon  issuance),  thus no  compensation  expense was
recognized  during the six months ended June 30, 2007 or 2006 for such  options.
The Company used the  Black-Scholes  option  pricing  model to estimate the fair
value of stock-based awards in 2006 and thereafter.

         As of June 30, 2007, there were 14,000 unvested  options,  which was no
change from December 31, 2006. Compensation cost related to share-based payments
amounted  to  $16,526  during  the first six  months of 2007,  which  related to
options issued in 2006.

NOTE 4.  REGULATORY RESTRICTIONS

         The Bank is subject  to  various  regulatory  capital  requirements  of
federal and state banking agencies. Failure to meet minimum capital requirements
can initiate certain mandatory and

                                       8

<PAGE>

                      PARKE BANCORP, INC. AND SUBSIDIARIES
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                   (unaudited)

possibly  additional  discretionary  actions by regulators  that, if undertaken,
could have a direct material effect on the Bank's  financial  statements.  Under
capital adequacy  guidelines and the regulatory  framework for prompt corrective
action, the Bank must meet specific capital guidelines that involve quantitative
measures  of  assets,  liabilities,  and  certain  off-balance  sheet  items  as
calculated under regulatory accounting practices. The Bank's capital amounts and
classification are also subject to qualitative judgments by the regulators about
components, risk weightings, and other factors.

         Quantitative  measures  established  by  regulation  to ensure  capital
adequacy  require the Bank to maintain  minimum amounts and ratios (set forth in
the following table) of total and Tier I capital (as defined in the regulations)
to  risk-weighted  assets (as  defined),  and of Tier I capital (as  defined) to
average assets (as defined).

<TABLE>
<CAPTION>
                                                                                    For Capital
                                                            Actual                Adequacy Purposes
                                                     Amount        Ratio         Amount        Ratio
                                                     ------        -----         ------        -----
<S>                                              <C>            <C>         <C>               <C>
As of June 30, 2007:
--------------------
(amounts in thousands)
Total Risk Based Capital                           $  52,034      12.5%      $  33,186         8%
    (to Risk Weighted Assets)
Tier 1 Capital                                     $  45,648      11.3%      $  16,593         4%
    (to Risk Weighted Assets)
Tier 1 Capital                                     $  45,648      11.4%      $  16,375         4%
    (to Average Assets)
</TABLE>

<TABLE>
<CAPTION>
                                                                                     For Capital
                                                            Actual                Adequacy Purposes
                                                     Amount        Ratio         Amount        Ratio
                                                     ------        -----         ------        -----
<S>                                              <C>            <C>         <C>               <C>
As of December 31, 2006:
------------------------
(amounts in thousands)
Total Risk Based Capital                             $44,405       14.5%        $24,499         8%
    (to Risk Weighted Assets)
Tier 1 Capital                                       $40,569       13.3%        $12,249         4%
    (to Risk Weighted Assets)
Tier 1 Capital                                       $40,569       11.6%        $14,054         4%
    (to Average Assets)
</TABLE>


         Management  believes,  as of June 30, 2007 and December 31, 2006,  that
the Bank met all capital adequacy requirements to which it was subject.

NOTE 5.  SUBORDINATED DEBENTURES

         On June 21,  2007,  Parke  Capital  Trust  III,  a  Delaware  statutory
business trust and a wholly-owned subsidiary of the Company, issued $3.0 million
of variable  rate  capital  trust  pass-through  securities  to  investors.  The
variable  interest rate re-prices  quarterly at the three-month LIBOR plus 1.50%
and was 6.86% at June 30, 2007.  Parke Capital Trust III purchased  $3.1 million
of variable rate junior  subordinated  deferrable  interest  debentures from the
Company. The debentures are the sole asset of the Trust. The terms of the junior
subordinated debentures are the same as the terms of the capital securities. The
Company has also fully and  unconditionally  guaranteed  the  obligations of the
Trust under the capital securities. The capital securities are redeemable by the
Company on or after June 15, 2012, at par or earlier if the deduction of related
interest  for  federal  income  taxes is  prohibited,  classification  as Tier 1
Capital is no longer allowed, or certain other contingencies  arise. The capital
securities must be

                                       9

<PAGE>

                      PARKE BANCORP, INC. AND SUBSIDIARIES
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                   (unaudited)

redeemed  upon final  maturity of the  subordinated  debentures on September 15,
2037.  Proceeds of  approximately  $3.0 million were retained at the Company for
future use.

NOTE 6.  INCOME TAXES

         The  Company  adopted the  provisions  of FASB  Interpretation  No. 48,
Accounting for Uncertainty in Income Taxes,  ("FIN 48"), on January 1, 2007. The
Company  files  United  States  (US)  federal  income tax  returns and state tax
returns in New Jersey. Based upon the statute of limitations,  the Company is no
longer subject to US federal and state examinations by tax authorities for years
before  2003.  Based on the review of the tax  returns  filed for the years 2003
through 2005 and the deferred tax benefits  accrued in the 2006 annual financial
statements, management determined that all tax positions taken had a probability
of  greater  than 50  percent  of being  sustained  and that 100  percent of the
benefits accrued were expected to be realized.  Management has a high confidence
level in the technical merits of the positions.  It believes that the deductions
taken  and  benefits  accrued  are  based on  widely  understood  administrative
practices and  procedures and are based on clear and  unambiguous  tax law. As a
result of this  evaluation,  management did not see a need to record a liability
for unrecognized tax benefits.

NOTE 7.  COMPREHENSIVE INCOME

         The Company's comprehensive income is presented in the following table.

<TABLE>
<CAPTION>
                                             For the Three Months          For the Six Months
                                                Ended June 30,                Ended June 30,

                                              2007           2006           2007           2006
                                          -----------    -----------    -----------    -----------
<S>                                     <C>            <C>            <C>            <C>
Net Income                                $ 1,481,448    $ 1,121,211    $ 2,758,678    $ 2,196,673
Unrealized gains (losses) on securities      (391,402)      (199,924)      (288,262)      (307,297)
Adjustment to minimum pension liability         8,270              -         16,540              -
Income tax (expense) benefit                  153,253         79,970        108,689        122,919
                                          -----------    -----------    -----------    -----------

Total comprehensive income                $ 1,251,569    $ 1,001,257    $ 2,595,645    $ 2,012,295
                                          ===========    ===========    ===========    ===========
</TABLE>

                                       10

<PAGE>

ITEM 2.  MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATION

Forward-Looking Statements

         The Company may from time to time make written or oral "forward-looking
statements"   including  statements  contained  in  this  Report  and  in  other
communications by the Company which are made in good faith pursuant to the "safe
harbor"  provisions  of the Private  Securities  Litigation  Reform Act of 1995.
These  forward-looking  statements,  such as statements of the Company's  plans,
objectives,   expectations,   estimates  and   intentions,   involve  risks  and
uncertainties and are subject to change based on various important factors (some
of which are beyond the Company's control). The following factors, among others,
could cause the Company's  financial  performance to differ  materially from the
plans,  objectives,  expectations,  estimates and  intentions  expressed in such
forward-looking statements: the strength of the United States economy in general
and  the  strength  of  the  local  economies  in  which  the  Company  conducts
operations;  the effects of, and changes in, trade, monetary and fiscal policies
and laws,  including  interest  rate  policies of the Board of  Governors of the
Federal  Reserve  System,   inflation,   interest  rate,   market  and  monetary
fluctuations;  the timely  development  of and  acceptance  of new  products and
services of the Company and the perceived  overall  value of these  products and
services by users,  including  the  features,  pricing  and quality  compared to
competitors' products and services;  the impact of changes in financial services
laws and regulations  (including laws concerning taxes, banking,  securities and
insurance);  technological changes;  acquisitions;  changes in consumer spending
and saving habits; and the success of the Company at managing the risks involved
in the foregoing.

         The Company  cautions that the foregoing  list of important  factors is
not exclusive.  The Company also cautions readers not to place undue reliance on
these forward-looking statements, which reflect management's analysis only as of
the date on which  they are given.  The  Company is not  obligated  to  publicly
revise  or  update  these  forward-looking   statements  to  reflect  events  or
circumstances  that arise after any such date.  Readers should  carefully review
the risk factors  described in other  documents  the Company  files from time to
time with the SEC,  including  quarterly reports on Form 10-Q, Annual Reports on
Form 10-K and any current reports on Form 8-K.

General

         The  Company's  results of operations  are  dependent  primarily on net
interest income,  which is the difference  between the interest income earned on
its  interest-earning  assets,  such as loans and  securities,  and the interest
expense  paid  on  its  interest-bearing   liabilities,  such  as  deposits  and
borrowings.  The  Company  also  generates  noninterest  income  such as service
charges,  earnings  from bank owned life  insurance  (BOLI),  loan exit fees and
other fees. The Company's  noninterest  expenses  primarily  consist of employee
compensation  and  benefits,   occupancy  expenses,   marketing  expenses,  data
processing  costs and other operating  expenses.  The Company is also subject to
losses in its loan  portfolio if borrowers fail to meet their  obligations.  The
Company's  results of  operations  are also  significantly  affected  by general
economic and  competitive  conditions,  particularly  changes in market interest
rates, government policies and actions of regulatory agencies.


  Three Months Ended June 30, 2007 Compared to Three Months Ended June 30, 2006
                                   (unaudited)

         The following  discussion  compares the results of  operations  for the
three month  period  ended June 30, 2007 to the  results of  operations  for the
three  month  period  ended June 30,  2006.  This  discussion  should be read in
conjunction with the accompanying financial statements and related notes as well
as the financial information included in the 2006 Annual Report on Form 10-K.

                                       11

<PAGE>

Results of Operations

         Net Income.  For the quarter  ended June 30, 2007,  net income  totaled
$1.5  million,  compared to $1.1  million for the quarter  ended June 30,  2006.
Diluted  earnings  per share for the three  months  ended June 30, 2007  totaled
$0.41,  compared to $0.30 per share for the same period of 2006.  Increased  net
income for the three months ended June 30, 2007 was attributable primarily to an
increase in net interest income of $461,000,  an increase in noninterest  income
of $177,000, and a reduction in the provision for loan losses of $118,000, which
were partially offset by an increase in noninterest expenses of $164,000.

         Net  Interest  Income.  Our primary  source of earnings is net interest
income,  which is the  difference  between  income  earned  on  interest-earning
assets, such as loans and investment  securities,  and interest expense incurred
on the interest-bearing  sources of funds, such as deposits and borrowings.  The
level of net interest  income is  determined  primarily by the average  balances
("volume")  and the rate  spreads  between the  interest-earning  assets and our
funding sources.

         Net  interest  income for the three  months ended June 30, 2007 totaled
$3.8 million,  an increase of 13.8% over $3.3 million for the three months ended
June  30,  2006.  The  increase  is  attributable  primarily  to the  growth  in
commercial  loan  balances.  The net interest  margin for the three month period
ended June 30, 2007 was 3.84%,  compared to 4.32% for the  comparable  period of
2006.  The net  interest  margin was  negatively  impacted  by higher  cost time
deposits to fund loan growth,  the recent  shape of the yield  curve,  which has
been either flat or  inverted,  and one large  nonperforming  loan in the second
quarter.  The  nonperforming  loan has subsequently  been paid off in July 2007,
including prior interest owed.

         Interest income amounted to $8.2 million and increased by $2.0 million,
or 32.5%,  for the quarter ended June 30, 2007, as compared to the quarter ended
June 30,  2006,  primarily  due to an  increase  of  $86.3  million  in  average
interest-earning  assets as well as  higher,  interest-earning  yield on assets.
Average  loans  outstanding  increased by $82.6  million and average  investment
securities  increased by $3.9  million.  Yields on earning  assets for the three
months ended June 30, 2007  increased to 8.27% from 7.98% for the same period of
2006.  Interest  expense of $4.4  million  increased by $1.5  million,  which is
primarily  attributable to average  interest-bearing  liabilities  increasing by
$82.1  million  coupled  with  a  general  rise  in  interest   rates.   Average
interest-bearing  deposits  increased  by $79.8  million and average  borrowings
increased by $2.4 million. The average rate paid on interest-bearing liabilities
increased  to 4.96% for the three  months ended June 30, 2007 from 4.18% for the
same period of 2006.

              Provision for Loan Losses.  The provision for loan losses amounted
to $210,000  for the second  quarter of 2007 as  compared  to  $328,000  for the
comparable  quarter of 2006. The allowance for loan losses  amounted to 1.40% of
total  gross loans at June 30, 2007 as compared to 1.45% of total gross loans at
December 31, 2006. The level of  nonperforming  loans at June 30, 2007 increased
by $3.6 million from the level at March 31, 2007, and was entirely  attributable
to  one  new  nonperforming   loan.  The  nonperforming  loan,  which  was  well
collateralized, was paid in full in July, 2007.

         Noninterest Income. Noninterest income totaled $344,000 for the current
quarter and  increased by $177,000  above the  comparable  quarter of 2006.  The
increase was mainly  attributable to a pre-tax gain of $205,000 on the sale of a
repossessed property. In addition,  losses on the sale of securities amounted to
$15,000 as investment securities of approximately $1.0 million with lower yields
were sold and replaced by higher yielding investments.

         Noninterest  Expense.  For  the  three  months  ended  June  30,  2007,
noninterest expenses increased by $164,000, or 12.5%, to $1.5 million,  compared
to $1.3 million for the same period of 2006. Increased  compensation and related
expenses  associated  with the  Philadelphia  retail branch and loan  production
office in  Millville,  New Jersey that were opened in the third quarter of 2006,
accounted  for a  majority  of  the  expense  increase  from  the  prior  years'
comparable quarter.

         Income Taxes. The Company  recorded income tax expense of $972,000,  on
income  before  taxes of $2.4  million for the three months ended June 30, 2007,
resulting in an effective  tax rate of 39.6%,  compared to income tax expense of
$740,000  on income  before  taxes of $1.9  million for the same period of 2006,
resulting in an effective tax rate of 39.8%.

                                       12

<PAGE>

<TABLE>
<CAPTION>
                                                                          Interest Yield Table
                                                                  For the three months ended June 30,
                                                             2007                                       2006
                                            ------------------------------------       --------------------------------------
                                            Average        Interest        Annual      Average         Interest         Annual
                                            Balance     Income/Expense     Yield       Balance       Income/Expense     Yield
                                            -------     --------------     -----       -------       --------------     -----
<S>                                    <C>              <C>               <C>      <C>                <C>              <C>
Assets
------
Loans                                    $362,925,440     $7,715,481        8.53%    $280,300,211       $5,789,040       8.28%
Investment securities                      29,916,270        402,119        5.39       26,065,747          331,653       5.10
Federal funds sold                          2,970,899         40,812        5.51        3,132,395           37,763       4.84
                                         ------------     ----------                 ------------       ----------
Total interest-earning assets             395,812,609      8,158,412        8.27      309,498,353        6,158,455       7.98
                                                          ----------                                    ----------
Allowance for loan losses                  (5,033,039)                                 (3,894,092)
Other assets                               18,623,013                                  15,967,874
                                         ------------                                ------------
Total assets                             $409,382,583                                $321,572,135
                                         ============                                ============


Liabilities and shareholders' equity
------------------------------------
Regular savings deposits                 $ 25,525,762     $  236,287        3.71%     $28,969,750       $  248,425       3.44%
NOW & money market savings                 32,684,734        309,786        3.80       26,008,170          163,453       2.52
Time deposits                             260,545,599      3,349,111        5.16      184,002,310        2,002,318       4.36
                                         ------------     ----------                 ------------       ----------
Total interest-bearing deposits           318,756,095      3,895,184        4.90      238,980,230        2,414,195       4.05

Borrowed funds                             34,256,283        469,383        5.50       31,899,481          411,733       5.18
                                         ------------     ----------                 ------------       ----------
Total interest-bearing liabilities        353,012,387      4,364,568        4.96      270,879,711        2,825,925       4.18
                                                          ----------                                    ----------

Non interest-bearing demand deposits       19,131,213                                  18,904,872
Other liabilities                           3,863,397                                   2,667,449

Shareholders' equity                       33,375,596                                  29,120,103
                                         ------------                                ------------
    Total liabilities and shareholders'
        Equity                           $409,382,583                                $321,572,135
                                         ============                                ============

Net interest income                                       $3,793,844                                    $3,332,527
                                                          ==========                                    ==========

Interest rate spread                                                        3.31%                                        3.80%

Net interest margin                                                         3.84%                                        4.32%

</TABLE>

                     Six Months Ended June 30, 2007 and 2006
                                   (unaudited)

         The following discussion compares the results of operations for the six
months ended June 30, 2007 to the results of operations for the six months ended
June  30,  2006.  This  discussion  should  be  read  in  conjunction  with  the
accompanying  financial  statements  and related  notes as well as the financial
information included in the 2006 Annual Report on Form 10-K.

Results of Operations

         Net Income.  For the six months ended June 30, 2007, net income totaled
$2.8  million,  compared to $2.2 million for the six months ended June 30, 2006,
an increase  of 25.5%.  Diluted  earnings  per share for the first six months of
2007 totaled  $0.77,  compared to $0.60 per share for the  comparable  period of
2006.  Increased  net income  for the first six months of 2007 was  attributable
primarily to  increases  in net  interest  income of $845,000 and an increase in
noninterest  income of $448,000,  which were partially  offset by an increase in
the  provision  for loan  losses of  $147,000  and an  increase  in  noninterest
expenses of $267,000.

         Net  Interest  Income.  Our primary  source of earnings is net interest
income,  which is the  difference  between  income  earned  on  interest-earning
assets, such as loans and investment  securities,  and interest expense incurred
on the interest-bearing  sources of funds, such as deposits and borrowings.  The
level of net interest  income is  determined  primarily by the average  balances
("volume")  and the rate  spreads  between the  interest-earning  assets and our
funding sources.

                                       13

<PAGE>

          Net  interest  income  for the first six months of 2007  totaled  $7.3
million,  an  increase of  $845,000,  or 13.0%,  above $6.5  million for the six
months  ended June 30, 2006.  The net  interest  margin for the six month period
ended  June 30,  2007 was 3.88%,  which was down from  4.35% for the  comparable
period of 2006.  Higher cost time deposits,  the recent shape of the yield curve
and one large  nonperforming  loan in the second quarter of 2007 all contributed
to the margin compression during the past year.

         Interest income of $15.6 million for the six months ended June 30, 2007
increased by $3.8 million,  or 32.8%, from the level of the comparable period of
2006.  This was driven  primarily  by an  increase  of $80.9  million in average
interest-earning assets and an increase in the yield on interest-earning assets.
Average loans  outstanding  of $347.2  million for the six months ended June 30,
2007,  increased  by $74.8  million  from the  comparable  period of 2006  while
average  investment  securities  increased  by $3.5  million.  Yields on earning
assets for the period ended June 30, 2007  increased to 8.23% from 7.87% for the
comparable  period of 2006.  Interest  expense for the six months ended June 30,
2007 amounted to $8.2 million and increased by $3.0 million,  or 57.3% primarily
due  to an  increase  in  average  interest-bearing  liabilities  and  increased
interest rates on customer deposits and borrowed funds. Average interest-bearing
deposits for the six months ended June 30, 2007, increased by $72.0 million form
the comparable period of 2006 while average borrowings increased by $4.4 million
during   comparable   periods  of  both  years.   The   average   rate  paid  on
interest-bearing  liabilities  increased  to 4.89% for the period ended June 30,
2007 from 4.01% for the comparable period of 2006.

         Noninterest  Income.  Noninterest income of $870,000 for the six months
ended  June  30,  2007  increased  $448,000,  or  106%,  from  $422,000  for the
comparable  period of 2006. The increase was  principally  due to the previously
mentioned  gain on the  sale  of  repossessed  property  in the  second  quarter
($205,000)  and the  insurance  reimbursements  ($377,000)  that occurred in the
first quarter of 2007.

         Provision  for Loan Losses.  The provision for loan losses was $710,000
for the six months ended June 30, 2007, compared to $563,000 for the same period
in 2006.  The increase in the provision for the 2007 period was primarily due to
the 26% increase in loan balances during the twelve months ended June 30, 2007.

         Noninterest   Expense.   For  the  six  months  ended  June  30,  2007,
noninterest  expense of $3.0 million increased by $267,000,  or 6.2% compared to
$2.7  million  for the same  period of 2006.  The  increase  was  mainly  due to
staffing  and  related  expenses  associated  with  the  new  retail  branch  in
Philadelphia and the loan production  office in Millville,  New Jersey that were
opened in the third quarter of 2006.

         Income Taxes.  The Company  recorded income tax expense of $1.8 million
on income  before  taxes of $4.5 million for the six months ended June 30, 2007,
resulting in an effective  tax rate of 39.2%,  compared to income tax expense of
$1.5 million on income before taxes of $3.7 million for the comparable period of
2006, resulting in an effective tax rate of 39.8%.

                                       14


<PAGE>

<TABLE>
<CAPTION>
                                                                          Interest Yield Table
                                                                    For the six months ended June 30,
                                                             2007                                       2006
                                            ------------------------------------       --------------------------------------
                                          Average          Interest        Annual       Average         Interest         Annual
                                          Balance       Income/Expense     Yield        Balance       Income/Expense     Yield
                                          -------       --------------     -----        -------       --------------     -----
<S>                                    <C>              <C>               <C>      <C>                <C>              <C>
Assets
------
Loans                                  $347,245,814      $14,657,081        8.51%    $272,413,835       $11,039,027       8.13%
Investment securities                    29,249,239          788,336        5.44       25,771,413           634,104       4.96
Federal funds sold                        4,969,636          131,993        5.36        2,357,102            54,821       4.69
                                       ------------      -----------                 ------------       -----------
Total interest-earning assets           381,464,689       15,577,410        8.23      300,542,350        11,727,952       7.87
                                                         -----------                                    -----------
Allowance for loan losses                (4,823,745)                                   (3,769,146)
Other assets                             18,471,674                                    15,959,153
                                       ------------                                  ------------
Total assets                           $395,112,618                                  $312,732,357
                                       ============                                  ============


Liabilities and shareholders' equity
Regular savings deposits               $ 25,912,989      $   476,179        3.71%    $ 31,602,277       $   521,573       3.33%
NOW & money market savings               31,553,772          558,648        3.57       24,390,756           289,570       2.39
Time deposits                           245,920,939        6,218,567        5.10      175,397,812         3,626,710       4.17
                                       ------------      -----------                 ------------       -----------
Total interest-bearing deposits         303,387,700        7,253,394        4.82      231,390,845         4,437,853       3.87

Borrowed funds                           36,369,497          990,720        5.49       31,994,445           802,063       5.06
                                       ------------      -----------                 ------------       -----------
Total interest-bearing liabilities      339,757,197        8,244,114        4.89      263,385,290         5,239,916       4.01
                                                         -----------                                    -----------

Non interest-bearing demand deposits     18,965,466                                    18,164,857
Other liabilities                         3,771,348                                     2,635,236
Shareholders' equity                     32,618,607                                    28,546,974
                                       ------------                                  ------------
    Total liabilities and shareholders'
        Equity                         $395,112,618                                  $312,732,357
                                       ============                                  ============

Net interest income                                      $ 7,333,296                                    $ 6,488,036
                                                         ===========                                    ===========

Interest rate spread                                                        3.34%                                          3.86%

Net interest margin                                                         3.88%                                          4.35%
</TABLE>

                                       15

<PAGE>

                               Financial Condition
                     At June 30, 2007 and December 31, 2006
                                   (unaudited)

         The following  discussion  compares the financial condition at June 30,
2007 to the financial  condition at December 31, 2006. This discussion should be
read in conjunction with the accompanying financial statements and related notes
as well as  statistical  information  included in the 2006 Annual Report on Form
10-K.

         Total assets at June 30, 2007 amounted to $420.8  million,  compared to
$360.0 million at December 31, 2006,  resulting in an increase of $60.8 million,
or 16.9%.  This  increase  was driven  primarily  by loan  growth as the Company
continued to expand its loan portfolio  through  development of new and existing
business relationships.

         Total loans at June 30, 2007 were $372.4 million,  which represented an
increase  of $61.9  million,  or 19.9%  above  the level of  $310.6  million  at
December 31, 2006.  Growth  occurred in all loan categories with commercial loan
growth of $56.9 million, or 20.2%,  representing the majority of the loan growth
for 2007.  Investment  securities  amounted  to $30.3  million at June 30,  2007
versus $27.0 million at December 31, 2006.

         The allowance for loan losses amounted to $5.2 million at June 30, 2007
compared to $4.5 million at December 31, 2006.  The ratio of the  allowance  for
loan losses to total loans decreased from 1.45% at December 31, 2006 to 1.40% at
June 30, 2007. The Company's  management has taken nonperforming loans and other
loans of concern into  consideration  in  establishing  the  allowance  for loan
losses.  The Company continues to monitor its allowance for loan losses and will
make  future  additions  or  reductions  in light  of the  level of loans in its
portfolio and as economic conditions dictate. The current level of the allowance
for loan losses is a result of the Company's management  assessment of the risks
within the portfolio  based upon the  information  revealed in credit  reporting
processes.  The  Company  utilizes  a  risk-rating  system  on  all  commercial,
business, agricultural,  construction,  consumer, multi-family,  residential and
commercial real estate loans,  including  purchased loans.  This risk assessment
takes into account the  composition of the loan  portfolio and  historical  loss
experience for each major loan category. In addition qualitative adjustments are
made for levels and trends in  delinquencies,  non-accruals  and impaired loans;
trends in volume;  effects,  if any, for changes in the Company's credit policy;
experience  and depth of the lending  staff;  any  national  and local  economic
trends and conditions; and concentrations of credit within the total portfolio.

         Although  the  Company's  management  believes  that it uses  the  best
information  available to determine the  allowance  for loan losses,  unforeseen
market  conditions  could result in adjustments  to the  allowance,  which could
significantly  impact the Company's financial results,  if circumstances  differ
substantially  from the  assumptions  used in making  the final  determinations.
Future  additions to the Company's  allowances  may result from  periodic  loan,
property and  collateral  reviews  coupled with  negative  trends in the factors
noted above and therefore cannot always be accurately predicted in advance.

         Non-performing  loans,  expressed  as  a  percentage  of  total  loans,
amounted to 1.14% at June 30, 2007 versus 0.3% at December 31, 2006. At June 30,
2007, the Company had $4.3 million in non-accruing  loans,  which increased from
$788,000 at December 31, 2006.  The increase was entirely  attributed to one new
nonperforming loan that was subsequently paid in full during July, 2007.

         Total  deposits  amounted  to  $341.8  million  at June  30,  2007  and
increased by $51.9 million,  or 17.9%, from $289.9 million at December 31, 2006.
Time deposits accounted for a majority of the increase in total deposits.

         Borrowings,  which  included  Federal  Home Loan Bank (FHLB)  advances,
repurchase  agreements and subordinated  debentures amounted to $41.6 million at
June 30, 2007,  an increase of $6.8  million from $34.9  million at December 31,
2006. On June 21, 2007, Parke Capital Trust III, a Delaware  statutory  business
trust  and a  wholly-owned  subsidiary  of the  Company,  issued $3  million  of
variable rate capital trust pass-through  securities to investors.  The variable
interest rate re-prices  quarterly at the  three-month

                                       16

<PAGE>

LIBOR  plus  1.50%  and was  6.86% at June 30,  2007.  Parke  Capital  Trust III
purchased $3.1 million of variable rate junior subordinated  deferrable interest
debentures from the Company. The debentures are the sole asset of the Trust. The
terms of the  junior  subordinated  debentures  are the same as the terms of the
capital securities.  The Company has also fully and  unconditionally  guaranteed
the  obligations  of  the  Trust  under  the  capital  securities.  The  capital
securities  are  redeemable  by the Company on or after June 15, 2012, at par or
earlier if the  deduction  of  related  interest  for  federal  income  taxes is
prohibited,  classification  as Tier 1 Capital is no longer allowed,  or certain
other  contingencies  arise. The capital  securities must be redeemed upon final
maturity of the  subordinated  debentures  on September  15,  2037.  Proceeds of
approximately $3.0 million were retained at the Company for future use.

         Shareholders'  equity  was  $33.6  million  at June 30,  2007 and $30.7
million at December 31, 2006.  An increase in net income of $2.8 million and the
exercise  of  warrants  and stock  options,  which  were  modestly  offset by an
increase  in  unrealized   investment   portfolio   losses   included  in  other
comprehensive income, accounted for the 9.5% increase.

Critical Accounting Policy

         The Company's  financial  statements  are prepared in  accordance  with
accounting  principles  generally accepted in the United States of America.  The
financial  information  contained  within these  statements is, to a significant
extent,  financial  information  that  is used on  approximate  measures  of the
financial effects of transactions and events that have already  occurred.  Based
on its  consideration  of accounting  policies that involve the most complex and
subjective  decisions  and  assessments,  management  has  identified  its  most
critical  accounting policy to be related to the allowance for loan losses.  The
Company's  allowance for loan loss  methodology  incorporates  a variety of risk
considerations,  both  quantitative and qualitative in establishing an allowance
for loan loss that  management  believes is appropriate at each reporting  date.
Quantitative   factors  include  the  Company's   historical  loss   experience,
delinquency and charge-offs trends,  collateral values, changes in nonperforming
loans,  and  other  factors.   Quantitative   factors  also  incorporate   known
information  about  individual  loans,   including  borrowers'   sensitivity  to
increased  rate  movements.  Qualitative  factors  include the general  economic
environment  in the  Company's  market area.  Size and  complexity of individual
credits in  relation  to loan  structure,  existing  loan  policies  and pace of
portfolio  growth  are other  qualitative  factors  that are  considered  in the
methodology.  Management  may  report  a  materially  different  amount  for the
provision for loan losses in the statement of operations to change the allowance
for loan losses if its  assessment  of the above  factors were  different.  This
discussion  and  analysis  should  be read in  conjunction  with  the  Company's
financial  statements and the accompanying notes presented  elsewhere herein, as
well as the portion of this Managements Discussion and Analysis, which discusses
the allowance for loan losses in this section,  entitled "Financial  Condition".
Although management believes the level of this allowance as of June 30, 2007 was
adequate to absorb  losses  inherent in the loan  portfolio,  a decline in local
economic  conditions,  or other factors,  could result in increasing losses that
can not be reasonably predicated at this time.

Liquidity and Capital Resources

         Liquidity describes our ability to meet the financial  obligations that
arise out of the ordinary course of business.  Liquidity addresses the Company's
ability to meet deposit  withdrawals  on demand or at contractual  maturity,  to
repay borrowings as they mature,  and to fund current and planned  expenditures.
Liquidity is derived from increased  repayment and income from  interest-earning
assets.  The loan to deposit  ratio was  108.9% and 107.1% at June 30,  2007 and
December 31, 2006, respectively. Funds received from new and existing depositors
provided a large source of  liquidity  for the  six-month  period ended June 30,
2007.  The Company seeks to rely  primarily on core  deposits from  customers to
provide  stable and  cost-effective  sources of funding to support local growth.
The  Company  also seeks to augment  such  deposits  with longer term and higher
yielding  certificates  of deposit.  To the extent that retail  deposits are not
adequate  to  fund  customer  loan  demand,  liquidity  needs  can be met in the
short-term  funds  market.  Longer  term  funding  can be  obtained  through the
issuance of trust  preferred  securities  and advances from the FHLB. As of June
30, 2007, the Company maintained lines of credit with the FHLB of $43.3 million,
of which $28.2 million was outstanding at June 30, 2007.

         As of June 30, 2007,  the  Company's  investment  securities  portfolio
included $15.7 million of  mortgage-backed  securities that provide  significant
cash flow each month. The majority of the investment

                                       17

<PAGE>

portfolio is classified as available  for sale,  is readily  marketable,  and is
available  to meet  liquidity  needs.  The  Company's  residential  real  estate
portfolio  includes loans,  which are underwritten to secondary market criteria,
and accordingly  could be sold in the secondary  mortgage market if needed as an
additional  source of liquidity.  The  Company's  management is not aware of any
known trends,  demands,  commitments or uncertainties that are reasonably likely
to result in material changes in liquidity.

Capital

         A strong  capital  position is  fundamental  to support  the  continued
growth of the  Company.  The  Company is subject to various  regulatory  capital
requirements.  Regulatory  capital  is  defined  in  terms  of  Tier  I  capital
(shareholders'   equity  as  adjusted   for   unrealized   gains  or  losses  on
available-for-sale securities), Tier II capital (which includes a portion of the
allowance for loan losses) and total  capital (Tier I plus Tier II).  Risk-based
capital  ratios  are  expressed  as  a  percentage  of   risk-weighted   assets.
Risk-weighted  assets are determined by assigning  various weights to all assets
and off-balance  sheet  associated risk in accordance with regulatory  criteria.
Regulators  have also adopted  minimum Tier I leverage  ratio  standards,  which
measure the ratio of Tier I capital to total assets.

         At June 30, 2007, the Company's  management  believes that the Bank and
the  Company  are  "well-capitalized"  and in  compliance  with  all  applicable
regulatory requirements.

ITEM 3.  QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

         There have been no  material  changes  from the  information  regarding
market risk disclosed under the heading "Management's Discussion and Analysis of
Financial  Condition and Results of Operations -- Interest Rate  Sensitivity and
Liquidity -- Rate  Sensitivity  Analysis" in the Company's Annual Report for the
fiscal year ended December 31, 2006.

ITEM 4.  CONTROLS AND PROCEDURES

Disclosure Controls and Procedures

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

Internal Controls

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

PART II.  OTHER INFORMATION

ITEM 1.  LEGAL PROCEEDINGS

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

                                       18

<PAGE>

         In January, 2007, the Bank reached a final agreement with both Atlantic
Central  Bankers Bank and New Century Bank in connection with their action filed
against  the  Bank in 2005  alleging  breach  of  participation  agreements  and
fraudulent  misrepresentation in connection with the plaintiffs'  participations
in loans to the same Parke Bank customers as the First Republic matter discussed
above.  Their lawsuit  against  Parke Bank was  dismissed in February,  2007. In
connection   with  this   settlement,   the  Bank  paid  $150,000  and  $60,000,
respectively  to Atlantic  Central Bankers Bank and New Century Bank in February
and March, 2007, respectively.

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

         Other than the foregoing, at June 30, 2007, the Company was not a party
to any material legal proceedings.

ITEM 1A.  RISK FACTORS

         There have been no material changes from the Risk Factors  disclosed in
Company's Annual Report for the fiscal year ended December 31, 2006.

ITEM 2.  UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

         Treasury stock repurchases during the second quarter for Parke Bancorp,
Inc. were as follows:

<TABLE>
<CAPTION>
                                                                    Total number of          Maximum number of
                                                                    shares purchased          shares that may
Period         Total number of shares      Average price paid     as part of publicly         yet be purchased
------         ----------------------      ------------------       announced plans           under the plans
                      purchased                 per share             or programs              or programs
                      ---------                 ---------         -------------------        -----------------

<S>                 <C>                      <C>                 <C>                    <C>
April, 2007               -                      $     -                       -                    90,136
May, 2007               2,700                      15.94                   2,700                    87,436
June, 2007              5,100                      16.89                   5,100                    82,336
                        -----                    -------                   -----
Totals:                 7,800                    $ 16.56                   7,800
                        =====                    =======                   =====
</TABLE>

         As of June 30, 2007, the Company has purchased  75,726 shares of common
stock and is allowed to  purchase  up to 5% of the  outstanding  stock  (158,062
shares), which allows additional repurchases of 82,336 shares.

ITEM 3.  DEFAULTS UPON SENIOR SECURITIES

         None.

ITEM 4.  SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS

         None.

ITEM 5.  OTHER INFORMATION

         None.

ITEM 6.  EXHIBITS

         31       Certifications required by Rule 13a-14(a).
         32       Certification required by 18 U.S.C. ss.1350.

                                       19

<PAGE>

                                   SIGNATURES

         Pursuant to the  requirements  of the Securities  Exchange Act of 1934,
the  registrant  has duly  caused  this report to be signed on its behalf by the
undersigned thereunto duly authorized.


                                          PARKE BANCORP, INC.





Date: August 14, 2007                     /s/Vito S. Pantilione
                                          -------------------------------------
                                          Vito S. Pantilione
                                          President and Chief Executive Officer
                                          (Principal Executive Officer)





Date: August 14, 2007                     /s/Robert A. Kuehl
                                          -------------------------------------
                                          Robert A. Kuehl
                                          Senior Vice President and
                                          Chief Financial Officer
                                          (Principal Accounting Officer)