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, 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
 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 4, 2006, there were issued and outstanding 2,825,475 shares of
the registrant's common stock.



<PAGE>
                               PARKE BANCORP, INC.

                                    FORM 10-Q

                       FOR THE QUARTER ENDED JUNE 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 Conditional
                      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.           Default Upon Senior Securities.................................................................18
Item 4.           Submission of Matters to a Vote of Security Holders............................................19
Item 5.           Other Information..............................................................................19
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>

                                                                   JUNE 30,       DECEMBER 31,
                                                                     2006            2005
                                                                -------------    -------------
<S>                                                             <C>              <C>
ASSETS
Cash and cash due from banks                                    $   4,267,383    $   4,377,196
Federal funds sold                                                  2,381,860            2,840
                                                                -------------    -------------
         CASH AND CASH EQUIVALENTS                                  6,649,243        4,380,036
                                                                -------------    -------------

Investment securities available for sale, at market value          22,661,052       22,022,944
Investment securities held to maturity, at amortized cost
(market value $2,298,247 at June 30, 2006  and  $2,322,985 at
December 31, 2005)                                                  2,419,164        2,405,841
                                                                -------------    -------------
         TOTAL INVESTMENT SECURITIES                               25,080,216       24,428,785
                                                                -------------    -------------

Restricted stock, at cost                                           1,312,500        1,348,900
                                                                -------------    -------------

Loans                                                             294,276,368      259,035,088
Less: allowance for loan losses                                    (4,134,312)      (3,573,812)
                                                                -------------    -------------
         TOTAL NET LOANS                                          290,142,056      255,461,276
                                                                -------------    -------------

Bank premises and equipment, net                                    3,009,925        3,079,876
Accrued interest receivable and other assets                        9,690,517        9,111,571
                                                                -------------    -------------
         TOTAL ASSETS                                           $ 335,884,457    $ 297,810,444
                                                                =============    =============
</TABLE>

See Notes to Consolidated Financial Statements

                                       1
<PAGE>

                      PARKE BANCORP, INC. AND SUBSIDIARIES
                           CONSOLIDATED BALANCE SHEETS
                                   (UNAUDITED)
<TABLE>
<CAPTION>
                                                                                JUNE 30,        DECEMBER 31,
                                                                                  2006             2005
                                                                              -------------    -------------
<S>                                                                            <C>              <C>
LIABILITIES AND SHAREHOLDERS' EQUITY

Liabilities
     Deposits
       Noninterest-bearing demand                                              $  19,167,240    $  17,918,339
       Interest-bearing                                                          250,700,473      214,137,969
                                                                               -------------    -------------
         TOTAL DEPOSITS                                                          269,867,713      232,056,308

     Borrowed funds                                                                4,919,000        5,082,500
     Federal Home Loan Bank advances                                              18,535,024       20,574,360
     Subordinated debentures                                                      10,310,000       10,310,000
     Accrued interest payable and other accrued liabilities                        2,992,960        2,593,949
                                                                               -------------    -------------
         TOTAL LIABILITIES                                                       306,624,497      270,617,117
                                                                               -------------    -------------

Commitments and Contingencies (Note 1)

Shareholders' Equity
     Common stock,  $0.10 par value, 10,000,000 shares
       authorized;  2,851,063 shares issued and outstanding at June 30,
       2006 and 2,317,364 shares issued and outstanding at December 31, 2005         285,106          231,736
     Preferred stock, 1,000,000 shares authorized; no shares issued
       and outstanding                                                                    --               --
     Additional paid-in capital                                                   20,905,049       20,511,410
     Retained earnings                                                             8,983,791        6,787,118
     Accumulated other comprehensive income (loss)                                  (470,674)        (286,296)
     Treasury stock, at cost (22,438 shares at June 30, 2006 and
       2,380 shares at December 31, 2005)                                           (443,312)         (50,641)
                                                                               -------------    -------------

         TOTAL SHAREHOLDERS' EQUITY                                               29,259,960       27,193,327
                                                                               -------------    -------------
         TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY                            $ 335,884,457    $ 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 SIX       FOR THE SIX
                                                   MONTHS ENDED       MONTHS ENDED      MONTHS ENDED      MONTHS ENDED
                                                  JUNE 30, 2006      JUNE 30, 2005     JUNE 30, 2006     JUNE 30, 2005
                                                  -------------      -------------     -------------     -------------
<S>                                                 <C>               <C>                <C>               <C>
Interest And Dividend Income
  Loans, including fees                             $ 5,789,039       $ 3,800,932        $11,039,027       $ 7,200,053
  Securities                                            331,653           297,130            634,104           594,378
  Federal funds sold                                     37,763             8,747             54,821             8,865
                                                    -----------       -----------        -----------       -----------
          Total interest and dividend income          6,158,455         4,106,809         11,727,952         7,803,296
                                                    -----------       -----------        -----------       -----------

Interest Expense
  Deposits                                            2,414,195         1,359,485          4,437,853         2,475,365
  Federal Home Loan Bank Advances                       212,982           131,523            414,300           260,300
  Other borrowings                                      198,751            24,224            387,763            44,768
                                                    -----------       -----------        -----------       -----------
          Total interest expense                      2,825,928         1,515,232          5,239,916         2,780,433
                                                    -----------       -----------        -----------       -----------

          Net interest income                         3,332,527         2,591,577          6,488,036         5,022,863
  Provision For Loan Losses                             328,000           276,023            563,000           508,157
                                                    -----------       -----------        -----------       -----------
Net Interest Income After Provision For Losses        3,004,527         2,315,554          5,925,036         4,514,706
                                                    -----------       -----------        -----------       -----------

Noninterest Income
  Service charges and other fee income                  166,635           327,760            422,484           480,467
  Gain (Loss) on sale of securities                          --            (9,240)                --            (9,240)
                                                    -----------       -----------        -----------       -----------
          Total noninterest income                      166,635           318,520            422,484           471,227
                                                    -----------       -----------        -----------       -----------

Noninterest Expenses
  Compensation and benefits                             636,028           532,850          1,332,525         1,058,882
  Occupancy, equipment and data processing              221,163           203,250            433,874           398,328
  Marketing and business development                     73,481           100,690            126,908           134,517
  Professional services                                 198,028           205,742            347,058           403,150
  Other operating expenses                              181,251            91,978            446,262           273,475
                                                    -----------       -----------        -----------       -----------
          Total noninterest expenses                  1,309,951         1,134,510          2,686,627         2,268,352
                                                    -----------       -----------        -----------       -----------


Income Before Income Tax Expense                      1,861,211         1,499,564          3,660,893         2,717,581

Income Tax Expense                                      740,000           595,550          1,464,220         1,081,550
                                                    -----------       -----------        -----------       -----------
Net Income                                          $ 1,121,211       $   904,014        $ 2,196,673       $ 1,636,031
                                                    ===========       ===========        ===========       ===========

Net Income Per Common Share
      Basic                                         $      0.40       $      0.34        $      0.78       $      0.61
                                                    ===========       ===========        ===========       ===========
      Diluted                                       $      0.33       $      0.29        $      0.65       $      0.52
                                                    ===========       ===========        ===========       ===========

Weighted Average Shares Outstanding
      Basic                                           2,830,232         2,696,257          2,808,566         2,671,135
                                                    ===========       ===========        ===========       ===========
      Diluted                                         3,352,122         3,135,802          3,355,152         3,148,349
                                                    ===========       ===========        ===========       ===========
</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, 2006 AND 2005
                                   (UNAUDITED)
<TABLE>
<CAPTION>
                                                                                      ACCUMULATED
                                                          ADDITIONAL                      OTHER                         TOTAL
                                             COMMON        PAID-IN       RETAINED     COMPREHENSIVE                  SHAREHOLDERS'
                                             STOCK         CAPITAL       EARNINGS        (LOSS)     TREASURY 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        7,567         627,148              -            -             -           634,715
   Comprehensive income:
     Net income for the period                     -               -      1,636,031            -             -         1,636,031
     Change in net  unrealized  gain on
       securities  available  for sale,
       net of reclassification
       adjustment  and tax effects,  if
       any                                         -               -              -      (53,952)            -           (53,952)
                                                                                                                     -----------
         Total comprehensive income                                                                                    1,582,079
                                           ---------     -----------     ----------    ---------     ---------       -----------
Balance,  June 30, 2005                    $ 225,123     $20,017,250     $4,928,728    $(125,156)    $       -       $25,045,945
                                           =========     ===========     ==========    =========     =========       ===========

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,  if
       any                                         -               -              -     (184,378)            -          (184,378)
         Total comprehensive income                                                                                    2,066,633
                                           ---------     -----------     ----------    ---------     ---------       -----------
Balance,  June 30, 2006                    $ 285,106     $20,905,049     $8,983,791    $(470,674)    $(443,312)      $29,259,960
                                           =========     ===========     ==========    =========     =========       ===========
</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,
                                                                        ---------------------------------
                                                                              2006             2005
                                                                        --------------    ---------------
<S>                                                                       <C>             <C>
Operating Activities
   Net income                                                             $  2,196,673    $  1,636,031
   Adjustments to reconcile net income to net cash provided by
   operating activities:
     Depreciation and amortization                                             124,486         131,860
     Provision for loan losses                                                 563,000         508,157
     Net (accretion) of investment securities
         premiums/discounts                                                    (10,379)        (62,239)
     Loss on sale of securities                                                      -           9,240
   Changes in operating assets and liabilities:
     Decrease(increase) in accrued interest receivable and other assets         43,979        (327,695)
     Increase in accrued interest payable and other liabilities                398,811         545,936
                                                                          ------------    ------------
         Net cash provided by operating activities                           3,316,570       2,441,290
                                                                          ------------    ------------

Investing Activities
   Purchases of investment securities available for sale                    (2,000,000)     (1,982,500)
   Redemptions of restricted stock                                              36,400         266,500
   Proceeds from sales of investment securities available for sale                   -       5,092,053
   Principal payments on mortgage-backed securities                            551,645       1,073,971
   Net increase in loans                                                   (35,243,780)    (28,700,499)
   Purchases of building premises and equipment                                (54,535)        (39,952)
                                                                          ------------    ------------
         Net cash used in investing activities                             (36,710,270)    (24,290,427)
                                                                          ------------    ------------

Financing Activities
   Proceeds from exercise of stock options and warrants                        451,738         634,715
   Purchase of treasury stock                                                 (392,671)              -
   20% stock dividend                                                           (4,729)              -
   Net increase(decrease) in other borrowings                                 (163,500)      1,282,500
   Net decrease in Federal Home Loan Bank Advances                          (2,039,336)     (4,031,803)
   Net increase in interest-bearing deposits                                36,562,504      30,319,089
   Net increase in noninterest-bearing deposits                              1,248,901       3,741,246
                                                                          ------------    ------------
         Net cash provided by financing activities                          35,662,907      32,645,747
                                                                          ------------    ------------

         Increase in cash and cash equivalents                               2,269,207      10,796,610

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

Cash and Cash Equivalents, June 30,                                       $  6,649,243    $ 12,598,398
                                                                          ============    ============

Supplemental Disclosure of Cash Flow Information:
   Cash paid during the period for:
     Interest on deposits and borrowings                                  $  4,899,035    $  2,360,893
                                                                          ============    ============
     Income taxes                                                         $  1,900,000    $  1,075,000
                                                                          ============    ============
</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 June 30,  2006 and for the  three and six
month  periods  ended  June  30,  2006 and 2005  included  herein  have not been
audited.  Comparison  to  2005  interim  period  financial  data  relate  to the
financial condition and results of operations of Parke Bank. 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 six months ended June 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.


                                       6
<PAGE>
                      PARKE BANCORP, INC. AND SUBSIDIARIES
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                   (UNAUDITED)

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 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
June 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 June 30, 2006 and 2005 was 2,830,232 and 2,696,257,  respectively  and for
the six  months  ended  June 30,  2006 and 2005  was  2,808,566  and  2,671,135,
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 521,890 and 439,545  additional shares
for the three months ended June 30, 2006 and 2005, respectively, and for the six
months ended June 30, 2006 and 2005 was 546,586 and 477,214, respectively.

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

                                       7
<PAGE>
                      PARKE BANCORP, INC. AND SUBSIDIARIES
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                   (UNAUDITED)

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.
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 six months ended June 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 six  months  ended June 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 June 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 six  months  ended June 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 JUNE 30        SIX MONTHS ENDED JUNE 30
                                                 2006              2005           2006           2005
                                              ----------        ---------      ----------     ----------
<S>                                           <C>               <C>            <C>            <C>
Net income, as reported                       $1,121,211        $ 904,014      $2,196,673     $1,636,031

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                          $1,121,211        $ 904,014      $2,196,673     $1,546,031
                                              ==========        =========      ==========     ==========
Basic earnings per share:
      As reported                                  $0.40            $0.34           $0.78          $0.61
      Pro forma                                    $0.40            $0.34           $0.78          $0.58

Diluted earnings per share:
      As reported                                  $0.33            $0.29           $0.65          $0.52
      Pro forma                                    $0.33            $0.29           $0.65          $0.49
</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

                                       8
<PAGE>
                      PARKE BANCORP, INC. AND SUBSIDIARIES
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                   (UNAUDITED)

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 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 JUNE 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)
<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 JUNE 30, 2006:
--------------------
(AMOUNTS IN THOUSANDS)
Total Risk Based Capital                           $43,368          15%       $20,932           8%
(to Risk Weighted Assets)
 Tier 1 Capital                                    $36,601          13%       $10,466           4%
(to Risk Weighted Assets)
 Tier 1 Capital                                    $36,601          11%       $12,852           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 June 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
6.85% at June 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 OF FINANCIAL CONDITION AND RESULTS
        OF OPERATIONS

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, 2006 COMPARED TO THREE MONTHS ENDED JUNE 30, 2005
                                   (UNAUDITED)

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

                                       11
<PAGE>

RESULTS OF OPERATIONS

     Net Income.  For the three months ended June 30, 2006,  net income  totaled
$1.1  million,  compared to $904,014  for the three  months ended June 30, 2005.
Diluted  earnings  per share for the three  months  ended June 30, 2006  totaled
$0.33,  compared to $0.29 per share for the same period of 2005.  Increased  net
income for the three months ended June 30, 2006 was attributable primarily to an
increase in net interest income of $740,950,  partially offset by an increase in
the provision for loan losses of $51,977,  a decrease in  noninterest  income of
$151,885,  an increase in noninterest  expenses of $175,441,  and an increase in
tax expense of $144,450.

     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, 2006 totaled $3.3
million,  an increase of 28.6% over $2.6 million for the three months ended June
30, 2005. The increase is attributable primarily to the growth in loan balances.
The net interest margin for the three month period ended June 30, 2006 was 4.3%,
compared to 4.4% for the comparable period of 2005.

     Interest  income  increased by $2.1 million for the three months ended June
30,  2006,  primarily  as a result of an  increase  of $71.2  million in average
interest-earning  assets.  Average loans outstanding  increased by $68.1 million
and average investment  securities increased by $3.1 million.  Yields on earning
assets for the three months ended June 30, 2006  increased to 8.0% from 6.9% for
the same period of 2005.  Interest expense  increased by $1.3 million,  which is
primarily  attributable to average  interest-bearing  liabilities  increasing by
$64.9  million  coupled  with  a  general  rise  in  interest   rates.   Average
interest-bearing  deposits  increased  by $51.7  million and average  borrowings
increased  by  $13.2  million.   The  average  rate  paid  on   interest-bearing
liabilities increased to 4.2% for the three months ended June 30, 2006 from 2.9%
for the same period of 2005.

     Noninterest Income.  Noninterest income decreased  $151,885,  or 47.7%, for
the three months ended June 30, 2006 to $166,635 down from $318,520 for the same
period of 2005, reflecting mainly a decrease in loan exit fees.

     Provision  for Loan Losses.  The provision for loan losses was $328,000 for
the three months  ended June 30, 2006,  compared to $276,023 for the same period
in 2005.  The  increase  in the  provision  for the 2006  period was due to loan
growth in 2006.

     Noninterest Expenses. For the three months ended June 30, 2006, noninterest
expenses  increased by $175,441,  or 15.5%,  to $1.3  million,  compared to $1.1
million for the same period of 2005.  Increased  compensation  expenses of 19.4%
were  related to  personnel  costs for  staffing  increases  to support loan and
deposit  growth.  In addition,  marketing  costs  increased for new  promotional
programs.

     Income  Taxes.  The Company  recorded  income tax expense of  $740,000,  on
income  before  taxes of  $1,861,211  for the three  months ended June 30, 2006,
resulting in an effective  tax rate of 39.8%,  compared to income tax expense of
$595,550  on income  before  taxes of  $1,499,564  for the same  period of 2005,
resulting in an effective tax rate of 39.7%.

                     SIX MONTHS ENDED JUNE 30, 2006 AND 2005
                                   (UNAUDITED)

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

                                       12
<PAGE>

RESULTS OF OPERATIONS

     Net Income. For the six months ended June 30, 2006, net income totaled $2.2
million,  compared  to $1.6  million  for the six months  ended  June 30,  2005.
Diluted  earnings  per share for the first  six  months of 2006  totaled  $0.65,
compared  to $0.52 per share for the same period of 2005.  Increased  net income
for the first six months of 2005 was attributable  primarily to increases in net
interest income of $1.4 million,  partially offset by a decrease in non interest
income of $48,743,  an increase in the provision for loan losses of $54,843,  an
increase in non interest expenses of $418,275, and an increase in tax expense of
$382,670.

     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.

     Interest income for the first six months of 2006 totaled $11.7 million,  an
increase of 50.0% over $7.8 million for the six months ended June 30, 2005.  The
net interest margin for the six month period ended June 30, 2006 was 4.3%, which
was down from 4.4% for the comparable period of 2005.

     Interest income  increased by $3.4 million,  driven by an increase of $71.7
million in average  interest-earning assets. Average loans outstanding increased
by $69.6 million while average investment  securities increased by $2.1 million.
Yields on earning  assets for the period  ended June 30, 2005  increased to 7.8%
from  6.8% for the same  period  of 2005.  Interest  expense  increased  by $2.5
million.  Average  interest-bearing  liabilities  increased  by  $64.9  million.
Average  interest-bearing  deposits  increased  by  $51.7  million  and  average
borrowings increased by $13.2 million. The average rate paid on interest-bearing
liabilities  increased  to 4.0% for the period ended June 30, 2006 from 2.8% for
the same period of 2005.

     Noninterest Income. Noninterest income decreased $48,743, or 10.3%, for the
six months  ended June 30, 2006 to  $422,484,  down from  $471,227  for the same
period of 2005 due to lower loan exit fees.

     Provision  for Loan Losses.  The provision for loan losses was $563,000 for
the six months ended June 30, 2006,  compared to $508,157 for the same period in
2005.  The  increase in the  provision  for the 2006 period was due to increased
loan balances.

     Noninterest Expenses.  For the six months ended June 30, 2006,  noninterest
expenses increased by $418,275 or 18.4% to $2.7 million compared to $2.3 million
for the same period of 2005. An increase in  compensation  expenses of 25.9% 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 $172,787 or 63.2% due to real estate activity.

     Income Taxes.  The Company  recorded  income tax expense of $1.5 million on
income  before  taxes of $3.7  million for the six months  ended June 30,  2006,
resulting in an effective  tax rate of 40.0%,  compared to income tax expense of
$1,081,550  on income  before taxes of $2.7 million for the same period of 2005,
resulting in an effective tax rate of 39.8%.


                               FINANCIAL CONDITION
                     AT JUNE 30, 2006 AND DECEMBER 31, 2005
                                   (UNAUDITED)

     The following  discussion compares the financial condition at June 30, 2006
to the financial statements 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 $335.9  million at June 30,  2006,  compared to
$297.8 million at December 31, 2005,  increasing $38.1 million,  or 12.8%. Gross
loans outstanding  increased to $294.3 million,  or 13.6% from $259.0 million at
December 31, 2005. Deposits increased by $37.8 million, or 16.3%. Borrowed funds
decreased  by $2.2  million,  or 6.1%.  Shareholders'  equity  increased by $2.1


                                       13
<PAGE>

million,  or 7.6%,  driven by net income of $2.2  million  for the three  months
ended June 30, 2006 net of against comprehensive loss of $184,378.

     The  increase  in  total  loans  was  primarily  due  to  increases  in the
commercial  loans,  which grew by $34.1 million and totaled $268.7 million as of
June 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 $1.1
million.

     Allowance  for Loan Losses.  The allowance for loan losses was $4.1 million
at June 30, 2006 as compared to $3.6 million at December 31, 2005.  The ratio of
the  allowance for loan losses to total loans was 1.4% at both June 30, 2006 and
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 0.7% at June 30, 2006 and December 31, 2005.  At June 30, 2006,  the
Company  had $2.2  million in  non-accruing  loans,  which  increased  from $1.9
million in non-accruing  loans at December 31, 2005. One loan became non-accrual
during the quarter ended June 30, 2006.

     Deposits.  Deposits  totaled  $269.9  million at June 30, 2006,  increasing
$37.8 million,  or 16.3%,  from the December 31, 2005 balance of $232.1 million.
The increase in deposits is attributable to the Company's growth strategy, which
includes  significant  marketing,  promotion  and cross  selling  of  additional
products to existing customers.

     Included  in deposits  at June 30,  2006 and  December  31, 2005 were $79.7
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 $33.8 million at
June 30, 2006,  decreasing  $2.2 million,  or 6.1%,  from December 31, 2005. The
decrease was a result of maturities of FHLB  advances  during 2006.  The Compnay
did not need to borrow additional funds in 2006 due to deposit increases.

                                       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>
                                                                        SIX MONTHS ENDED
                                       ---------------------------------------------------------------------------------------
                                                       JUNE 30, 2006                                 JUNE 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                                   $272,413,835      $11,039,027        8.1%      $202,800,337     $7,200,053        7.1%
Investment securities                     25,771,413          634,104        4.9         25,358,862        594,378        4.7
Federal funds sold                         2,357,102           54,821        4.7            644,783          8,865        2.7
                                       -------------      -----------                  ------------     ----------
Total interest-earning assets            300,542,350      $11,727,952        7.8        228,803,982     $7,803,296        6.8
                                                          ===========                                   ==========
Allowance for loan losses                 (3,769,146)                                    (2,846,968)
Other assets                              15,959,153                                     13,894,143
                                        ------------                                   ------------
Total assets                            $312,732,357                                   $239,851,157
                                        ============                                   ============


Liabilities and shareholders' equity
------------------------------------
Regular savings deposits                $ 31,602,277      $   521,573        3.3%      $ 21,236,805     $  217,064        2.0%
NOW & money market savings                24,390,756          289,570        2.4         27,783,614        241,976        1.7
Time deposits                            175,397,812        3,626,710        4.1        130,639,744      2,016,325        3.1
                                        ------------      -----------                  ------------     ----------
Total interest-bearing deposits          231,390,845        4,437,853        3.8        179,660,163      2,475,365        2.8

Borrowed funds                            31,994,445          802,063        5.0         18,826,955        305,068        3.2
                                        ------------      -----------                  ------------     ----------
Total interest-bearing liabilities       263,385,290      $ 5,239,916        4.0        198,487,118     $2,780,433        2.8
                                                          ===========                                   ==========

Non interest-bearing demand deposits      18,164,857                                     15,649,898
Other liabilities                          2,635,236                                      1,628,469
Shareholders' equity                      28,546,974                                     24,085,672
                                        ------------                                   ------------
    Total liabilities and
       shareholders' Equity             $312,732,357                                   $239,851,157
                                        ============                                   ============

Net interest income                                       $ 6,488,036                                   $5,022,863
                                                          ===========                                   ==========
Interest rate spread                                                         3.8%                                         4.0%

Net interest margin                                                          4.3%                                         4.4%
</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 June 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  109.1% and 110.0% at June 30,  2006 and
December 31, 2005, respectively. Funds received from new and existing depositors
provided a large source of  liquidity  for the  six-month  period ended June 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 June
30, 2006, the Company maintained lines of credit with the FHLB of $47.7 million.

     As of June 30, 2006, the Company's investment securities portfolio included
$8.2 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 June 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 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, 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

         None.

ITEM 3.  DEFAULT UPON SENIOR SECURITIES

         None.


                                       18
<PAGE>


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

         (a) Election of Directors:

                  NAME                           FOR            WITHHELD
                  ----                           ---            --------

                  Daniel J. Dalton            1,765,080            650

         (b)  Ratification of the appointment of McGladrey & Pullen,  LLP as the
         Company's  independent  auditor for the fiscal year ending December 31,
         2006.

                  For                       1,765,730
                  Against                          --
                  Abstain                          --


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 10, 2006                   /s/ Vito S. Pantilione
                                        ----------------------------------------
                                        Vito S. Pantilione
                                        President and Chief Executive Officer
                                        (Principal Executive Officer)





Date: August 10, 2006                   /s/ Ernest D. Huggard
                                        ----------------------------------------
                                        Ernest D. Huggard
                                        Senior Vice President and
                                        Chief Financial Officer
                                        (Principal Accounting Officer)


                                       20