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: September 30, 2006

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

For the transition period from ____________ to ____________

Commission File No. 000-51338

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

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

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

                                  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 November 12, 2006, there were issued and outstanding 2,810,031 shares
of the registrant's common stock.

<PAGE>

                               PARKE BANCORP, INC.

                                    FORM 10-Q

                    FOR THE QUARTER ENDED SEPTEMBER 30, 2006

                                      INDEX

<TABLE>
<CAPTION>

                                                                                          Page
                                                                                          ----
<S>          <C>                                                                         <C>
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................17
Item 4.           Controls and Procedures...................................................17

Part II           OTHER INFORMATION
-------

Item 1.           Legal Proceedings.........................................................18
Item 1A.          Risk Factors..............................................................18
Item 2.           Unregistered Sales of Equity Securities and Use of Proceeds...............18
Item 3.           Defaults Upon Senior Securities...........................................18
Item 4.           Submission of Matters to a Vote of Security Holders.......................18
Item 5.           Other Information.........................................................18
Item 6.           Exhibits..................................................................19

SIGNATURES

EXHIBITS and CERTIFICATIONS

</TABLE>


<PAGE>

                          PART I. FINANCIAL INFORMATION

ITEM 1.  FINANCIAL STATEMENTS

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

<TABLE>
<CAPTION>
                                                            September 30,     December 31,
                                                                2006             2005
                                                            -------------    -------------
<S>                                                       <C>              <C>
Assets
Cash and cash due from banks                                $   3,500,455    $   4,377,196
Federal funds sold                                              4,700,801            2,840
                                                            -------------    -------------
         Cash and cash equivalents                              8,201,256        4,380,036
                                                            -------------    -------------

Investment securities available for sale, at market value      23,624,390       22,022,944
Investment securities held to maturity, at amortized cost
     (market value $2,433,754 at September 30, 2006 and
     $2,322,985 at December 31, 2005)                           2,425,017        2,405,841
                                                            -------------    -------------
         Total investment securities                           26,049,407       24,428,785
                                                            -------------    -------------

Restricted stock, at cost                                       1,623,200        1,348,900
                                                            -------------    -------------

Loans                                                         300,795,524      259,035,088
     Less: allowance for loan losses                           (4,345,312)      (3,573,812)
                                                            -------------    -------------
         Total net loans                                      296,450,212      255,461,276
                                                            -------------    -------------

Bank premises and equipment, net                                3,301,692        3,079,876

Accrued interest receivable and other assets                    9,804,058        9,111,571
                                                            -------------    -------------

         Total assets                                       $ 345,429,825    $ 297,810,444
                                                            =============    =============
</TABLE>


See Notes to Consolidated Financial Statements

                                       1
<PAGE>

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

<TABLE>
<CAPTION>
                                                                      September 30,    December 31,
                                                                          2006             2005
                                                                      -------------    -------------
<S>                                                                 <C>              <C>
Liabilities and Shareholders' Equity

Liabilities
     Deposits
       Noninterest-bearing demand                                     $  18,266,198    $  17,918,339
       Interest-bearing                                                 253,032,814      214,137,969
                                                                      -------------    -------------
         Total deposits                                                 271,299,012      232,056,308

     Borrowed funds                                                       3,899,648        5,082,500
     Federal Home Loan Bank advances                                     26,338,491       20,574,360
     Subordinated debentures                                             10,310,000       10,310,000
     Accrued interest payable and other accrued liabilities               3,530,130        2,593,949
                                                                      -------------    -------------

         Total liabilities                                              315,377,281      270,617,117
                                                                      -------------    -------------

Commitments and Contingencies (Note 1)

Shareholders' Equity
     Common stock, $0.10 par value, 10,000,000 shares
       authorized; 2,865,123 shares issued at September 30, 2006
       and 2,317,364 shares issued at December 31, 2005                     286,512          231,736
     Preferred stock, 1,000,000 shares authorized; no shares issued
       and outstanding                                                            -                -
     Additional paid-in capital                                          20,992,627       20,511,410
     Retained earnings                                                   10,200,473        6,787,118
     Accumulated other comprehensive (loss)                                (267,001)        (286,296)
     Treasury stock, at cost (61,842 shares at September 30, 2006
       and 2,380 shares at December 31, 2005)                            (1,160,067)         (50,641)
                                                                      -------------    -------------
         Total shareholders' equity                                      30,052,544       27,193,327
                                                                      -------------    -------------
         Total liabilities and shareholders' equity                   $ 345,429,825    $ 297,810,444
                                                                      =============    =============
</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 nine      For the nine
                                                 months ended        months ended        months ended      months ended
                                              September 30, 2006  September 30, 2005  September 30, 2006 September 30, 2005
                                              ------------------  ------------------  ------------------ ------------------
<S>                                            <C>                <C>                <C>                <C>
Interest And Dividend Income
  Loans, including fees                          $  6,373,897       $  4,116,948       $ 17,412,925       $ 11,317,002
  Securities                                          343,119            273,994            977,224            868,372
  Federal funds sold                                   35,941             43,426             90,761             52,290
                                                 ------------       ------------       ------------       ------------
Total interest and dividend income                  6,752,957          4,434,368         18,480,910         12,237,664
                                                 ------------       ------------       ------------       ------------

Interest Expense
  Deposits                                          2,788,168          1,593,048          7,226,022          4,068,413
  Federal Home Loan Bank Advances                     247,157            128,546            661,458            408,424
  Other borrowings                                    205,582             89,315            593,344            114,505
                                                 ------------       ------------       ------------       ------------
          Total interest expense                    3,240,907          1,810,909          8,480,824          4,591,342
                                                 ------------       ------------       ------------       ------------

          Net interest income                       3,512,050          2,623,459         10,000,086          7,646,322

Provision For Loan Losses                             211,000            298,005            774,000            806,162
                                                 ------------       ------------       ------------       ------------

Net interest Income After Provision For Losses      3,301,050          2,325,454          9,226,086          6,840,160
                                                 ------------       ------------       ------------       ------------
Noninterest Income
  Service charges and other fee income                190,006            237,771            612,490            718,238
  Loss on sale of securities                                -                  -                  -             (9,240)
                                                 ------------       ------------       ------------       ------------
          Total noninterest income                    190,006            237,771            612,490            708,998
                                                 ------------       ------------       ------------       ------------

Noninterest Expenses
  Compensation and benefits                           722,097            560,614          2,054,622          1,619,496
  Occupancy, equipment and data processing            263,648            196,282            697,522            594,611
  Marketing and business development                   57,393             74,361            184,302            208,878
  Professional services                               139,363            161,522            486,421            564,672
  Other operating expenses                            286,273             88,945            732,534            362,418
                                                 ------------       ------------       ------------       ------------
          Total noninterest expenses                1,468,774          1,081,724          4,155,401          3,350,075
                                                 ------------       ------------       ------------       ------------

Income Before Income Tax Expense                    2,022,282          1,481,501          5,683,175          4,199,083

Income Tax Expense                                    805,600            592,100          2,269,820          1,673,650
                                                 ------------       ------------       ------------       ------------

Net Income                                       $  1,216,682       $    889,401       $  3,413,355       $  2,525,433
                                                 ============       ============       ============       ============

Net Income Per Common Share
      Basic                                      $       0.43       $       0.33       $       1.21       $       0.94
                                                 ============       ============       ============       ============
      Diluted                                    $       0.37       $       0.28       $       1.02       $       0.80
                                                 ============       ============       ============       ============


Weighted Average Shares Outstanding
      Basic                                         2,826,463          2,704,226          2,814,597          2,682,287
                                                 ============       ============       ============       ============
      Diluted                                       3,307,868          3,182,788          3,344,241          3,152,287
                                                 ============       ============       ============       ============
</TABLE>
See Notes to Consolidated Financial Statements

                                       3

<PAGE>

                                    PARKE BANCORP, INC. AND SUBSIDIARIES
                               CONSOLIDATED STATEMENTS OF SHAREHOLDERS EQUITY
                           FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2006 AND 2005
                                               (unaudited)

<TABLE>
<CAPTION>
                                                                                    Accumulated
                                                         Additional                    Other                       Total
                                             Common       Paid-In       Retained   Comprehensive   Treasury     Shareholder's
                                              Stock       Capital       Earnings       (Loss)       Stock          Equity
                                           ----------   -----------    -----------   ---------    -----------    -----------
<S>                                       <C>          <C>            <C>           <C>          <C>            <C>
Balance,  December 31, 2004                $  217,556   $19,390,102    $ 3,292,697   $ (71,204)   $          -   $22,829,151

   Stock options and warrants exercised         7,953       656,024              -            -              -       663,977
   Comprehensive income:
     Net income for the period                      -             -      2,525,433            -              -     2,525,433
     Change in net unrealized losses
       on securities available for
       sale, net of reclassification
       adjustment and tax effects, if any           -             -              -    (159,944)             -       (159,944)
                                                                                                                 -----------
         Total comprehensive income                                                                                2,365,489
                                           ----------   -----------    -----------   ---------    -----------    -----------
Balance,  September 30, 2005               $  225,509   $20,046,126    $ 5,818,130   $(231,148)   $         -    $25,858,617
                                           ==========   ===========    ===========   =========    ===========    ===========


Balance,  December 31, 2005                $  231,736   $20,511,410    $ 6,787,118   $(286,296)   $   (50,641)   $27,193,327

   Stock options and warrants exercised         7,533       533,189              -           -              -        540,722
   Treasury stock purchased                         -             -              -           -     (1,109,426)    (1,109,426)
   20% stock dividend                          47,243       (51,972)             -           -              -         (4,729)
   Comprehensive income:
     Net income for the period                      -             -      3,413,355           -              -      3,413,355
     Change in net unrealized losses
       on securities available for
       sale, net of reclassification
       adjustment and tax effects, if any           -             -              -      19,295              -         19,295
                                                                                                                 -----------
         Total comprehensive income                                                                                3,432,650
                                           ----------   -----------    -----------   ---------    -----------    -----------
Balance,  September 30, 2006               $  286,512   $20,992,627    $10,200,473   $(267,001)   $(1,160,067)   $30,052,544
                                           ==========   ===========    ===========   =========    ===========    ===========
</TABLE>

See Notes to Consolidated Financial Statements

                                       4
<PAGE>

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

<TABLE>
<CAPTION>
                                                                 For the Nine Months Ended September 30,
                                                                 ---------------------------------------
                                                                         2006            2005
                                                                     ------------    ------------
<S>                                                                <C>             <C>
Operating Activities
   Net income                                                        $  3,413,355    $  2,525,433
   Adjustments to reconcile net income to net cash provided by
   operating activities:
     Depreciation and amortization                                        197,569         198,960
     Provision for loan losses                                            774,000         806,162
     Net accretion of investment securities
         Premiums/discounts                                               (13,446)        (66,656)
     Realized losses on sale of securities                                      -           9,240
   Changes in operating assets and liabilities:
     Increase in accrued interest receivable and other assets            (205,349)       (254,995)
     Increase in accrued interest payable and other liabilities           936,181         925,115
                                                                     ------------    ------------
         Net cash provided by operating activities                      5,102,310       4,143,259
                                                                     ------------    ------------

Investing Activities
   Purchases of investment securities available for sale               (3,003,543)     (4,826,518)
   (Purchases) redemptions of restricted stock                           (274,300)        317,300
   Proceeds from sales of investment securities available for sale              -       5,092,055
   Principal payments on mortgage-backed securities                       928,524       1,597,314
   Net increase in loans                                              (41,762,936)    (43,729,948)
   Purchases of building premises and equipment                          (419,385)        (90,950)
                                                                     ------------    ------------
         Net cash used in investing activities                        (44,531,640)    (41,650,747)
                                                                     ------------    ------------

Financing Activities
   Proceeds from exercise of stock options and warrants                   540,722         663,977
   Purchase of treasury stock                                          (1,109,426)              -
   20% stock dividend                                                      (4,729)      1,982,500
   Net (decrease) increase in other borrowings                         (1,182,852)     10,000,000
   Net increase (decrease) in Federal Home Loan Bank Advances           5,764,131      (5,047,988)
   Net increase in interest-bearing deposits                           38,894,845      39,304,710
   Net increase in noninterest-bearing deposits                           347,859       1,620,396
                                                                     ------------    ------------
         Net cash provided by financing activities                     43,250,550      48,523,595
                                                                     ------------    ------------

         Increase in cash and cash equivalents                          3,821,220      11,016,107

Cash and Cash Equivalents, January 1,                                   4,380,036       1,801,788
                                                                     ------------    ------------

Cash and Cash Equivalents, September 30,                             $  8,201,256    $ 12,817,895
                                                                     ============    ============

Supplemental Disclosure of Cash Flow Information:
   Cash paid during the period for:
     Interest on deposits and borrowings                             $  8,262,000    $  4,023,000
                                                                     ============    ============
     Income taxes                                                    $  2,750,000    $  1,220,000
                                                                     ============    ============
</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").
Parke Bancorp recognized the assets and liabilities  transferred at the carrying
amounts in the accounts of the Bank as of June 1, 2005,  the  effective  date of
the reorganization. The accompanying consolidated financial statements have been
prepared in accordance  with  accounting  principles  generally  accepted in the
United States of America ("GAAP") and are presented as if the exchange of shares
occurred  as of January  1,  2005.  Pursuant  to the Plan of  Acquisition,  each
outstanding share of Parke Bank was converted  automatically by operation of law
into one share of Parke  Bancorp.  Parke  Bancorp had no  activity  prior to the
completion  of  this  reorganization.  Parke  Bancorp  is  authorized  to  issue
10,000,000  shares of common  stock,  par  value  $0.10 per share and  1,000,000
shares of serial  preferred  stock,  par value  $0.10  per  share.  Options  and
warrants outstanding under the Bank's various Plans were converted automatically
by  operation  of law into  options and  warrants  to  purchase  shares of Parke
Bancorp on the same terms and conditions.

         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, PA.

Financial Statements

         The financial statements as of September 30, 2006 and for the three and
nine month  periods ended  September 30, 2006 and 2005 included  herein have not
been audited.  Certain information and footnote disclosures normally included in
financial  statements  prepared in accordance  with 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 for the
years ended  December 31, 2005 included in the  Company's  Annual Report on Form
10-K for the fiscal year ended  December  31,  2005,  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  months and nine months ended  September  30,
2006 are not necessarily  indicative of the results that may be expected for the
year ending December 31, 2006 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 and Parke  Capital  Markets.  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

                                       6

<PAGE>

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


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
result in write downs of the  individual  securities to their fair value 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 September  30, 2006 are the result of
market  changes in interest  rates since the securities  where  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.

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 September 30, 2006 and 2005 was 2,826,463 and 2,704,226,  respectively and
for the nine  months  ended  September  30,  2006 and  2005  was  2,814,597  and
2,682,287, 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 481,405 and 478,562
additional shares for the three months period ended September 30, 2006 and 2005,
respectively,  and for the nine  months  ended  September  30, 2006 and 2005 was
529,644 and 470,000, respectively.

Both basic and diluted earnings per share  calculations give retroactive  effect
to stock dividends declared.

NOTE 3.  STOCK-BASED EMPLOYEE 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

                                       7

<PAGE>

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


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.
Because  options  granted  had an exercise  price  equal to or greater  than the
market  value  of the  underlying  common  stock on the  date of the  grant,  no
stock-based  employee  compensation  cost was included in determining net income
for the three and nine months ended September 30, 2005.

         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 nine months ended September 30, 2006 for such options.
The Company will use the Black-Scholes option pricing model to estimate the fair
value of any stock-based awards in 2006.

         As  of  September  30,  2006,  there  were  no  unvested  options  and,
accordingly,  no unrecognized  compensation cost related to share-based payments
to be recognized in the future.

         The following  table  illustrates the effect on net income and earnings
per share for the three and nine months ended September 30, 2006, if the Company
had  applied  the fair value  recognition  provisions  of  Financial  Accounting
Standards Board ("FASB") Statement No. 123, Accounting for Stock-Based  Employee
Compensation,  to  stock-based  employee  compensation.  Both basic and  diluted
calculations give retroactive effect to stock dividends declared.

<TABLE>
<CAPTION>
                                        Three months ended           Nine months ended
                                           September 30,                September 30,
                                         2006        2005           2006           2005
                                     -----------  ----------    -----------    -----------
<S>                                 <C>             <C>        <C>            <C>
Net income, as reported              $ 1,216,682     889,401    $ 3,413,355    $ 2,525,433

Deduct total
stock-based
compensation expense determined
under the fair value method for all
awards, net of related tax effects             -           -              -        (90,000)
                                     -----------  ----------    -----------    -----------
Pro-forma net income                 $ 1,216,682  $  889,401    $ 3,413,355    $ 2,435,433
                                     ===========  ==========    ===========    ===========

Basic earnings per share:
      As reported                    $      0.43  $     0.33    $      1.21    $      0.94
      Pro forma                      $      0.43  $     0.33    $      1.21    $      0.91

Diluted earnings per share:
      As reported                    $      0.37  $     0.28    $      1.02    $      0.80
      Pro-forma                      $      0.37  $     0.28    $      1.02    $      0.77
</TABLE>


NOTE 4.  REGULATORY RESTRICTIONS

         Both the Company and the Bank are subject to various regulatory capital
requirements  of federal and state  banking  agencies.  Failure to meet  minimum
capital  requirements  can initiate  certain  mandatory and possibly  additional
discretionary  actions by regulators  that, if  undertaken,  could have a direct
material effect on the Company'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.

                                       8

<PAGE>

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


         Quantitative  measures  established  by  regulation  to ensure  capital
adequacy require the Company and 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).

Parke Bank

<TABLE>
<CAPTION>
                                                                        For Capital
                                                Actual              Adequacy Purpose
                                         Amount         Ratio       Amount         Ratio
                                         ------         -----       ------         -----
<S>                                     <C>             <C>      <C>               <C>
As of September 30, 2006:
-------------------------
(amounts in thousands)
Total Risk Based Capital                  $42,444         15%      $23,236           8%
    (to Risk Weighted Assets)
Tier 1 Capital                            $38,807         13%      $11,618           4%
    (to Risk Weighted Assets)
Tier 1 Capital                            $38,807         12%      $12,852           4%
    (to Average Assets)
</TABLE>

<TABLE>
<CAPTION>
                                                                        For Capital
                                                Actual              Adequacy Purpose
                                         Amount         Ratio       Amount         Ratio
                                         ------         -----       ------         -----
<S>                                     <C>             <C>      <C>               <C>
As of December 31, 2005:
------------------------
(amounts in thousands)
Total Risk Based Capital                  $39,416         15%      $20,825           8%
    (to Risk Weighted Assets)
Tier 1 Capital                            $36,158         14%      $10,413           4%
    (to Risk Weighted Assets)
Tier 1 Capital                            $36,158         13%      $11,370           4%
    (to Average Assets)
</TABLE>

Parke Bancorp, Inc.
<TABLE>
<CAPTION>
                                                                        For Capital
                                                Actual              Adequacy Purpose
                                         Amount         Ratio       Amount         Ratio
                                         ------         -----       ------         -----
<S>                                     <C>             <C>      <C>               <C>
As of September 30, 2006:
-------------------------
(amounts in thousands)
Total Risk Based Capital                  $44,050         15%      $23,820           8%
    (to Risk Weighted Assets)
Tier 1 Capital                            $37,820         13%      $11,910           4%
    (to Risk Weighted Assets)
Tier 1 Capital                            $38,820         11%      $13,426           4%
    (to Average Assets)
</TABLE>

                                       9

<PAGE>

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


<TABLE>
<CAPTION>
                                                                        For Capital
                                                Actual              Adequacy Purpose
                                         Amount         Ratio       Amount         Ratio
                                         ------         -----       ------         -----
<S>                                     <C>             <C>      <C>               <C>
As of December 31, 2005:
------------------------
(amounts in thousands)
Total Risk Based Capital                  $40,737         16%      $20,856           8%
    (to Risk Weighted Assets)
Tier 1 Capital                            $34,349         13%      $10,428           4%
    (to Risk Weighted Assets)
Tier 1 Capital                            $34,349         12%      $11,370           4%
    (to Average Assets)
</TABLE>

         Management  believes,  as of September  30, 2006 and December 31, 2005,
that the Bank and the  Company met all capital  adequacy  requirements  to which
either of them was subject.

NOTE 5.  SUBORDINATED DEBENTURES

         On  August  23,  2005,  Parke  Capital  Trust I, a  Delaware  statutory
business trust and a wholly-owned  subsidiary of the Company,  issued $5 million
of variable  rate  capital  trust  pass-through  securities  to  investors.  The
variable  interest rate re-prices  quarterly at the three-month LIBOR plus 1.66%
and was 7.06% at  September  30,  2006.  Parke  Capital  Trust I purchased  $5.2
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  November 23, 2010, 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 November 23, 2035.  Proceeds of approximately
$4.2 million were  contributed  to paid-in  capital at the Bank.  The  remaining
$800,000 was retained at the Company for future use.

         On August  23,  2005,  Parke  Capital  Trust II, a  Delaware  statutory
business trust and a wholly-owned  subsidiary of the Company,  issued $5 million
of  fixed/variable  rate capital  trust  pass-through  securities  to investors.
Currently, the interest rate is fixed at 6.25%. The fixed/variable interest rate
re-prices  quarterly at the three-month LIBOR plus 1.66% beginning  November 23,
2010.  Parke  Capital  Trust II purchased  $5.2 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
November 23, 2010,  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 November
23, 2035.  Proceeds of  approximately  $4.2 million were  contributed to paid-in
capital at the Bank.  The  remaining  $800,000  was  retained at the Company for
future use.

                                       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 September 30, 2006 and 2005
                                   (unaudited)

         The following  discussion  compares the results of  operations  for the
three month period ended September 30, 2006 to the results of operations for the
three month period ended September 30, 2005.  This discussion  should be read in
conjunction with the accompanying financial statements and related notes as well
as the financial information included in the 2005 annual report on Form 10-K.

                                       11

<PAGE>

Results of Operations

         Net Income.  For the three months ended  September 30, 2006, net income
totaled $1.2 million,  compared to $889,401 for the three months ended September
30, 2005.  Diluted  earnings per share for the three months ended  September 30,
2006  totaled  $0.37,  compared  to $0.28 per share for the same period of 2005.
Increased  net  income  for the  three  months  ended  September  30,  2006  was
attributable  primarily  to  increases  in  net  interest  income  of  $888,591,
partially  offset by  increased  expenses  of  $387,050  and an  increase in tax
expense of $213,500.

         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  September  30, 2006
totaled  $3.5  million,  an  increase  of 33.9% over $2.6  million for the three
months ended  September 30, 2005. The increase is attributable to growth in loan
balances. The net interest margin for the three month period ended September 30,
2006 was 4.3%, compared to 4.2% for the comparable period of 2005.

         Interest  income  increased  by $2.3 million for the three months ended
September  30, 2006,  primarily  as a result of an increase of $72.9  million in
average  interest-earning  assets.  Average loans outstanding increased by $70.7
million and average investment  securities increased by $2.2 million.  Yields on
earning  assets for the three months ended  September 30, 2006 increased to 8.3%
from  7.0% for the same  period  of 2005.  Interest  expense  increased  by $1.4
million, which is primarily attributable to average interest-bearing liabilities
increasing  by $63.7  million  coupled  with a general  rise in interest  rates.
Average  interest-bearing  deposits  increased  by  $51.7  million  and  average
borrowings increased by $12.1 million. The average rate paid on interest-bearing
liabilities increased to 4.3% for the three months ended September 30, 2006 from
3.3% for the same period of 2005.

         Noninterest Income. Noninterest income decreased $47,765, or 20.1%, for
the three months ended September 30, 2006 to $190,006 down from $237,771 for the
same period of 2005, reflecting mainly an decrease in loan exit fees.

         Provision  for Loan Losses.  The provision for loan losses was $211,000
for the three months ended September 30, 2006, compared to $298,005 for the same
period in 2005.  The  decrease  in the  provision  for loan  losses for the 2006
period was due to slower loan growth in three months ended September 30, 2006.

         Noninterest  Expenses.  For the three months ended  September 30, 2006,
noninterest expenses increased by $387,050, or 35.8%, to $1.5 million,  compared
to $1.1 million for the same period of 2005. Increased  compensation expenses of
28.8% were related to personnel costs for staffing increases to support loan and
deposit  growth.  In addition,  marketing  costs  increased for new  promotional
programs.  Other  operating  expenses  increased  $197,328 or 222.1% due to real
estate activity.

         Income Taxes. The Company  recorded income tax expense of $805,600,  on
income before taxes of $2,022,282 for the three months ended September 30, 2006,
resulting in an effective  tax rate of 39.8%,  compared to income tax expense of
$592,100  on income  before  taxes of $1.5  million for the same period of 2005,
resulting in an effective tax rate of 40.0%.

                  Nine Months Ended September 30, 2006 and 2005
                                   (unaudited)

         The following  discussion  compares the results of  operations  for the
nine months ended  September 30, 2006 to the results of operations  for the nine
months ended  September 30, 2005,  and the financial  condition at September 30,
2006 to the financial  condition at December 31, 2005. This discussion should be
read in conjunction with the accompanying financial statements and related notes
as well as the financial  information included in the 2005 annual report on Form
10-K.

                                       12

<PAGE>

Results of Operations

         Net Income.  For the nine months ended  September 30, 2006,  net income
totaled  $3.4  million,  compared  to $2.5  million  for the nine  months  ended
September 30, 2005. Diluted earnings per share for the first nine months of 2006
totaled  $1.02,  compared  to  $0.80  per  share  for the same  period  of 2005.
Increased  net  income  for the  first  nine  months  of 2006  was  attributable
primarily  to  increases  in revenue  (net  interest  income)  of $2.4  million,
partially  offset by  increases  in  noninterest  expenses of  $805,326,  and an
increase in tax expense of $596,170.

         Net Interest Income.  Interest income for the first nine months of 2006
totaled  $18.5  million,  an increase  of 51.0% over $12.2  million for the nine
months  ended  September  30, 2005.  The net interest  margin for the nine month
period ended September 30, 2006 was 4.3%,  which was the same for the comparable
period of 2005.

         Interest  income  increased by $6.2  million,  driven by an increase of
$72.1 million in average  interest-earning  assets.  Average  loans  outstanding
increased by $70.0 million while average investment securities increased by $2.1
million.  Yields on earning  assets  for the period  ended  September  30,  2006
increased  to 8.0%  from  6.9% for the same  period  of 2005.  Interest  expense
increased by $3.9 million.  Average  interest-bearing  liabilities  increased by
$64.4 million. Average interest-bearing  deposits increased by $51.6 million and
average  borrowings  increased  by  $12.8  million.  The  average  rate  paid on
interest-bearing  liabilities  increased to 4.2% for the period ended  September
30, 2006 from 3.0% for the same period of 2005.

         Noninterest Income. Noninterest income decreased $96,508, or 13.6%, for
the nine months ended September 30, 2006 to $612,490, down from $708,998 for the
same period of 2005 due to lower loan exit fees.

         Provision  for Loan Losses.  The provision for loan losses was $774,000
for the nine months ended September 30, 2006,  compared to $806,162 for the same
period in 2005.  The minor decrease in the provision for the 2006 period was due
to stable new loan originations.

         Noninterest  Expenses.  For the nine months ended  September  30, 2006,
noninterest  expenses increased by $805,326 or 24.0% to $4.2 million compared to
$3.4 million for the same period of 2005. An increase in  compensation  expenses
of 26.9% was related to personnel costs as a result of staffing increases in the
loan and deposit  areas,  compared to the same period of 2005.  Other  operating
expenses increased $370,116 or 102.1% due to real estate activity.

         Income Taxes.  The Company  recorded income tax expense of $2.3 million
on income  before taxes of $5.7 million for the nine months ended  September 30,
2006,  resulting  in an  effective  tax rate of 39.9%,  compared  to income  tax
expense of $1.7  million on income  before  taxes of $4.2  million  for the same
period of 2005, resulting in an effective tax rate of 39.8%.


                               Financial Condition
                   At September 30, 2006 and December 31, 2005
                                   (unaudited)

         The following  discussion compares the financial condition at September
30, 2006 to the financial condition at December 31, 2005. This discussion should
be read in conjunction  with the accompanying  financial  statements and related
notes as well as statistical information included in this Form 10-Q.

         Total  assets  increased  to $345.4  million  at  September  30,  2006,
compared to $297.8 million at December 31, 2005,  increasing  $47.6 million,  or
16.0%. Gross loans outstanding increased to $300.8 million, or 16.1% from $259.0
million at December 31, 2005.  Deposits  increased by $39.2  million,  or 16.9%.
Borrowings  increased by $4.6 million, or 12.7%.  Shareholders' equity increased
by $2.9  million,  or 10.5%,  driven by net income of $3.4  million for the nine
months  ended  September  30, 2006 and the exercise of warrants  netted  against
treasury stock.

                                       13

<PAGE>

         Loans.  The increase in total loans was  primarily  due to increases in
the commercial loans,  which grew by $37.6 million and totaled $273.6 million as
of September 30, 2006. This increase is in line with management's strategic plan
and reflects increased  origination activity over the past year and a good local
real estate market.  All other categories of loans increased in the aggregate by
$4.2 million.

         Allowance  for Loan  Losses.  The  allowance  for loan  losses was $4.3
million at September  30, 2006 as compared to $3.6 million at December 31, 2005.
The ratio of the allowance  for loan losses to total loans  increased to 1.4% at
September  30, 2006 and at December  31,  2005.  The  Company's  management  has
considered non-performing assets and other assets of concern 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's
assessment of the risks within the portfolio based on the  information  revealed
in credit reporting processes.  The Company utilizes a risk-rating system on all
commercial, business, agricultural, construction and multi-family and commercial
real estate  loans,  including  purchased  loans.  A periodic  credit  review is
performed on all types of loans to establish the necessary  reserve based on the
estimated risk within the portfolio.  This assessment of risk takes into account
the composition of the loan portfolio,  historical loss experience for each loan
category,  previous loan experience,  concentrations of credit, current economic
conditions, and other factors that in management's judgment deserve recognition.

         Although  the  Company's  management  believes  that it uses  the  best
information available to determine the allowances,  unforeseen market conditions
could result in  adjustments  and net earnings being  significantly  affected 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 and thus cannot be predicted in
advance.

         Non-performing  assets,  expressed  as a  percentage  of total  assets,
remained  the same at 0.3% at  September  30, 2006 and  December  31,  2005.  At
September 30, 2006, the Company had $1.1 million in  non-accruing  loans,  which
decreased  from $1.9 million in  non-accruing  loans at December  31, 2005.  One
additional loan became non-accrual during the quarter ended September 30, 2006.

         Deposits.  Deposits  totaled  $271.3  million at  September  30,  2006,
increasing $39.2 million, or 16.9%, from the December 31, 2005 balance of $232.1
million. The increase in deposits is attributable to the Company's  management's
growth  strategy,  which  includes  significant  marketing,  promotion and cross
selling of additional products to existing customers.

         Included in deposits at  September  30, 2006 and December 31, 2005 were
$79.3 million and $67.2 million, respectively, of brokered deposits.

         Borrowings.  Total  borrowings,  consisting of borrowed funds,  Federal
Home Loan Bank  (FHLB)  advances  and  subordinated  debentures,  totaled  $40.6
million at September 30, 2006,  increasing $4.6 million, or 12.7%, from December
31, 2005. The increase was a result of additional FHLB advances during 2006.

                                       14

<PAGE>
Comparative Average Balances, Interest and Yields

         The following table provides information regarding the average balances
and  yield/rates on  interest-earning  assets and  interest-bearing  liabilities
during the periods indicated:

<TABLE>
<CAPTION>
                                                                           Nine Months Ended
                                     -----------------------------------------------------------------------------------------
                                                    September 30, 2006                            September 30, 2005
                                     ---------------------------------------------     ---------------------------------------
                                         Average          Interest         Annual        Average         Interest       Annual
                                         Balance       Income/Expense      Yield         Balance      Income/Expense    Yield
                                         -------       --------------      -----         -------      --------------    -----
<S>                                 <C>               <C>                 <C>       <C>              <C>               <C>
Assets
------
Loans                                 $279,925,898      $17,412,925         8.3%      $209,947,182     $11,317,002       7.2%
Investment securities                   26,161,288          977,224         5.0         24,289,057         868,372       4.8
Federal funds sold                       2,487,100           90,761         4.9          2,221,788          52,290       3.1
                                      ------------      -----------                   ------------     -----------
Total interest-earning assets          308,574,286      $18,480,910         8.0        236,458,027     $12,237,664       6.9
                                                        ===========                                    ===========

Allowance for loan losses               (3,915,323)                                     (2,906,584)
Other assets                            15,904,662                                      15,486,413
                                      ------------                                    ------------
Total assets                          $320,563,625                                    $249,037,856
                                      ============                                    ============

Liabilities and shareholders' equity
------------------------------------
Regular savings deposits              $ 30,214,716         $776,205         3.4%      $ 25,254,599     $   466,304       2.5%
NOW & money market savings              25,224,046          490,931         2.6         25,456,954         330,053       1.7
Time deposits                          182,585,510        5,958,886         4.4        135,735,369       3,272,056       3.2
                                      ------------      -----------                   ------------     -----------
Total interest-bearing deposits        238,024,272        7,226,022         4.1        186,446,922       4,068,413       2.9
Borrowed funds                          32,545,618        1,254,802         5.1         19,748,951         522,929       3.5
                                      ------------      -----------                   ------------     -----------

Total interest-bearing liabilities     270,569,890      $ 8,480,824         4.2        206,195,873     $ 4,591,342       3.0
                                                        ===========                                    ===========

Non interest-bearing demand deposits    18,246,444                                      16,473,659
Other liabilities                        2,675,720                                       1,777,934
Shareholders' equity                    29,071,571                                      24,590,390
                                      ------------                                    ------------
    Total liabilities and
       shareholders' equity           $320,563,625                                    $249,037,856
                                      ============                                    ============

Net interest income                                     $10,000,086                                    $ 7,646,322
                                                        ===========                                    ===========

Interest rate spread                                                        3.8%                                         3.9%

Net interest margin                                                         4.3%                                         4.3%
</TABLE>

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 increase
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

                                       15
<PAGE>

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 September  30, 2006 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 110.4% and 110.0% at September  30, 2006
and  December  31,  2005,  respectively.  Funds  received  from new and existing
depositors  provided a large source of liquidity for the nine-month period ended
September 30, 2006.  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
September  30,  2006,  the Company  maintained  lines of credit with the FHLB of
$61.8 million.

         As of September 30, 2006, the Company's investment securities portfolio
included $9.0 million of  mortgage-backed  securities  that provide  significant
cash flow each month. The majority of the investment  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. Regulators have also adopted minimum Tier
I leverage ratio  standards,  which measure the ratio of Tier I capital to total
assets.

         At September 30, 2006, the Company's  management believes that the Bank
and the Company are  "well-capitalized"  and in compliance  with all  applicable
regulatory requirements.

                                       16

<PAGE>

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, 2005.

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
fiscal  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.

                                       17

<PAGE>

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.  The complaint in the action was served on us in January
2005.  The Bank filed an answer to the  complaint,  and the case is currently in
the discovery phase.

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

         On November 4, 2004,  Stephen P.  Magenta  and other  parties  filed an
action captioned  Stephen P. Magenta,  et. al. v. General  Insulation  Services,
Inc.,  et. al. in the  Superior  Court of New Jersey  Law  Division,  Gloucester
County, related to the alleged embezzlement of over $1 million by an employee of
one of our customers of funds maintained in accounts at the Bank. All but one of
the claims against the Bank has been  dismissed.  The remaining claim is brought
by General  Maintenance and Labor.  The matter has been  effectively  stayed and
therefore no  meaningful  discovery  has been  available  to the Bank.  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 September 30, 2006, 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, 2005.

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

         (a)  None
         (b)  None
         (c)

<TABLE>
<CAPTION>
                                                                       (c) Total Number      (d) Maximum Number
                                                                     of Shares (or Units)   (or Approximate Dollar
                                  (a) Total               (b)          Purchased as Part     Value) of Shares (or
                                    Number           Average Price        or Publicly       Units) that May Yet Be
                                 of Shares (or       Paid per Share    Announced Plans        Purchased Under the
Period                          Units) Purchased        or Unit)         or Programs*          Plans or Programs
------                          ----------------        --------         ------------          -----------------

<S>                             <C>                 <C>                <C>                    <C>
07/28/06                                750             $18.89               22,438                 115,562
07/31/06                                750             $18.90               23,188                 114,812
08/02/06                                750             $20.31               23,938                 114,062
08/03/06                                900             $19.03               24,838                 113,162
08/09/06                                300             $19.13               25,138                 112,862
09/14/06                             27,000             $18.10               52,138                  85,862
09/15/06                              8,954             $18.05               61,092                  76,908
                                     ------             ------
Total                                39,404             $18.19               61,092                  76,908


</TABLE>
*    On November 23, 2005, the Registrant  authorized the repurchase in the open
     market of up to 115,000  shares plus an  additional  23,000 shares due to a
     20% stock  dividend  paid on April 21,  2006 of the  Company's  outstanding
     common stock.

ITEM 3.  DEFAULT UPON SENIOR SECURITIES

         None.

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

         None.

ITEM 5.  OTHER INFORMATION

         None.

                                       18

<PAGE>

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: November 14, 2006                   /s/Vito S. Pantilione
                                          --------------------------------------
                                          Vito S. Pantilione
                                          President and Chief Executive Officer
                                          (Principal Executive Officer)





Date: November 14, 2006                   /s/Ernest D. Huggard
                                          --------------------------------------
                                          Ernest D. Huggard
                                          Senior Vice President and
                                          Chief Financial Officer
                                          (Principal Accounting Officer)