# EDGAR Filing Document

**Accession Number:** 0001315399
**File Stem:** 0001437749-25-031527
**Filing Date:** 2025-10
**Character Count:** 28667
**Document Hash:** 00da665d363229f2f9ecb0d0239bfdf7
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001437749-25-031527.hdr.sgml**: 20251022

**ACCESSION NUMBER**: 0001437749-25-031527

**CONFORMED SUBMISSION TYPE**: 8-K

**PUBLIC DOCUMENT COUNT**: 15

**CONFORMED PERIOD OF REPORT**: 20251022

**ITEM INFORMATION**: Results of Operations and Financial Condition

**ITEM INFORMATION**: Financial Statements and Exhibits

**FILED AS OF DATE**: 20251022

**DATE AS OF CHANGE**: 20251022

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** PARKE BANCORP, INC.
- **CENTRAL INDEX KEY:** 0001315399
- **STANDARD INDUSTRIAL CLASSIFICATION:** STATE COMMERCIAL BANKS [6022]
- **ORGANIZATION NAME:** 02 Finance
- **EIN:** 000000000
- **STATE OF INCORPORATION:** NJ
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 8-K
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 000-51338
- **FILM NUMBER:** 251410316

**BUSINESS ADDRESS:**
- **STREET 1:** 601 DELSEA DRIVE
- **CITY:** WASHINGTON TOWNSHIP
- **STATE:** NJ
- **ZIP:** 08080
- **BUSINESS PHONE:** 856 256-2500

**MAIL ADDRESS:**
- **STREET 1:** 601 DELSEA DRIVE
- **CITY:** WASHINGTON TOWNSHIP
- **STATE:** NJ
- **ZIP:** 08080

?xml version='1.0' encoding='ASCII'? pkbk20250821_8k.htm

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**UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION**

**Washington, D.C. 20549**

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**FORM 8-K**

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**CURRENT REPORT** 

**Pursuant to Section 13 or 15(d)** 

**of the Securities Exchange Act of 1934**

**Date of Report (Date of earliest event reported) October 22, 2025** 

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**PARKE BANCORP, INC.** 

**(Exact name of registrant as specified in its charter)** 

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| | | |
|:---|:---|:---|
| **New Jersey** | **0-51338** | **65-1241959** |
| **(State or other**  | **(Commission** | **(IRS Employer** |
| **of incorporation)** | **File Number)**  | **Identification No.)** |

---

---

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

---

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

Not Applicable

(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)).

Securities registered pursuant to Section 12(b) of the Act:

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| | | |
|:---|:---|:---|
| **Title of Each Class** | **Trading Symbol(s)** | **Name of Each Exchange on Which Registered** |
| **Common Stock, Par Value $0.10 per share** | **PKBK** | **The Nasdaq Stock Market, LLC** |

---

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

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**PARKE BANCORP, INC.**

**INFORMATION TO BE INCLUDED IN THE REPORT**

**Section 2 - Financial Information**

**Item 2.02 Results of Operations and Financial Condition.**

On October 22, 2025, Parke Bancorp, Inc. issued a press release to report earnings for the three and nine months ended September 30, 2025. A copy of the press release is furnished with this Current Report as Exhibit 99.1 hereto and shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended.

**Section 9 - Financial Statements and Exhibits.**

**Item 9.01 Exhibits.**

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| | |
|:---|:---|
| <u>Exhibit No.</u> | <u>Description</u> |
| 99.1 | [Press Release dated October 22, 2025](ex_856030.htm) |
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) |

---

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**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.**

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| | | |
|:---|:---|:---|
| Date: October 22, 2025 | By | /s/ Jonathan D. Hill |
|  |  | Jonathan D. Hill |
|  |  | Senior Vice President and Chief Financial Officer |
|  |  | (Duly Authorized Representative) |

---

## Exhibit 99.1

**Exhibit 99.1**

![smlogo.jpg](smlogo.jpg)

Parke Bancorp, Inc.

601 Delsea Drive,

Washington Township, NJ 08080

Contact:

Vito S. Pantilione, President and CEO

Jonathan D. Hill, Senior Vice President and CFO

(856) 256-2500

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**PARKE BANCORP, INC. ANNOUNCES THIRD QUARTER 2025 EARNINGS**

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| | |
|:---|:---|
| **Highlights:** |  |
| **Net Income:** | **$10.6 million for Q3 2025, increased 28.3% over Q2 2025** |
| **Revenue:** | **$37.4 million for Q3 2025, increased 4.2% over Q2 2025** |
| **Total Assets:**  | **$2.17 billion, increased 1.4% over December 31, 2024** |
| **Total Loans:**  | **$1.93 billion, increased 4.9% over December 31, 2024** |
| **Total Deposits:**  | **$1.75 billion, increased 7.5% over December 31, 2024** |

---

WASHINGTON TOWNSHIP, NJ, October 22, 2025 - Parke Bancorp, Inc. ("Parke Bancorp" or the "Company") (NASDAQ: "PKBK"), the parent company of Parke Bank, announced its operating results for the three and nine months ended September 30, 2025.

**Highlights for the three and nine months ended September 30, 2025:**

&nbsp;&nbsp;&nbsp;&nbsp;• Net income available to common shareholders was $10.6 million, or $0.90 per basic common share and $0.89 per diluted common share, for the three months ended September 30, 2025, an increase of $3.1 million, or 41.6%, compared to net income available to common shareholders of $7.5 million, or $0.63 per basic common share and $0.62 per diluted common share, for the three months ended September 30, 2024. The increase was primarily due to a $5.4 million increase in net interest income, partially offset by a $0.5 million increase in provision for credit losses, and a $0.8 million increase in non-interest expense.

&nbsp;&nbsp;&nbsp;&nbsp;• Net interest income increased $5.4 million, or 37.0%, to $20.2 million for the three months ended September 30, 2025, compared to $14.7 million for the same period in 2024.

&nbsp;&nbsp;&nbsp;&nbsp;• The Company recorded a provision for credit losses of $0.4 million for the three months ended September 30, 2025, compared to a recovery of provision for credit losses of $0.1 million for the same period in 2024.

&nbsp;&nbsp;&nbsp;&nbsp;• Non-interest income decreased slightly by $0.05 million, or 5.6%, to $0.85 million for the three months ended September 30, 2025, compared to $0.9 million for the same period in 2024.

&nbsp;&nbsp;&nbsp;&nbsp;• Non-interest expense increased $0.8 million, or 12.6%, to $7.2 million for the three months ended September 30, 2025, compared to $6.4 million for the same period in 2024.

&nbsp;&nbsp;&nbsp;&nbsp;• Net income available to common shareholders was $26.7 million, or $2.26 per basic common share and $2.23 per diluted common share, for the nine months ended September 30, 2025, an increase of $6.6 million, or 32.7%, compared to net income available to common shareholders of $20.1 million, or $1.68 per basic common share and $1.66 per diluted common share, for the same period in 2024. The increase is primarily due to an increase in net interest income of $11.6 million, partially offset by a $1.4 million increase in provision for credit losses, a $0.7 million decrease in non-interest income, and a $1.2 million increase in non-interest expense.

&nbsp;&nbsp;&nbsp;&nbsp;• Net-interest income increased $11.6 million, or 26.8%, to $54.6 million for the nine months ended September 30, 2025, compared to $43.1 million for the same period in 2024.

&nbsp;&nbsp;&nbsp;&nbsp;• The Company recorded a provision for credit losses of $1.9 million for the nine months ended September 30, 2025, compared to a provision for credit losses of $0.5 million for the same period in 2024.

&nbsp;&nbsp;&nbsp;&nbsp;• Non-interest income decreased $0.7 million, or 21.4%, to $2.5 million for the nine months ended September 30, 2025, compared to $3.2 million for the same period in 2024.

&nbsp;&nbsp;&nbsp;&nbsp;• Non-interest expense increased $1.2 million, or 6.5%, to $20.4 million for the nine months ended September 30, 2025, compared to $19.1 million for the same period in 2024.

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The following is a recap of the significant items that impacted results of operations for the three and nine months ended September 30, 2025:

Interest income increased $4.4 million during the three months ended September 30, 2025 compared to the same period in 2024, primarily due to an increase in interest and fees on loans of $4.8 million, or 15.8%, to $34.9 million, resulting from higher market interest rates and higher average loan portfolio balances. Interest earned on average deposits held at the Federal Reserve Bank ("FRB") decreased $0.3 million during the three months ended September 30, 2025, due to lower average balances on deposit. For the nine months ended September 30, 2025, interest income increased $13.6 million from the same period in 2024, primarily due to an increase in interest and fees on loans of $12.2 million, or 14.0%, to $99.1 million, resulting from an increase in average outstanding loan balances, and higher market interest rates. Interest earned on average deposits held at the FRB increased $1.4 million during the nine months ended September 30, 2025, due to higher average balances held on deposit.

Interest expense decreased $1.1 million, or 6.1%, to $16.3 million for the three months ended September 30, 2025, compared to the same period in 2024, primarily due to the payoff of the Company's $30.0 million, 6.5% subordinate notes during the three months ended September 30, 2025, and a $75.0 million decrease in advances from the Federal Home Loan Bank of New York ("FHLBNY"), partially offset by an increase in interest expense on deposits, due to an increase in the balance of interest-bearing deposits. For the nine months ended September 30, 2025, interest expense increased $2.0 million, or 4.2%, to $50.7 million, primarily due to higher market interest rates, combined with changes in the mix of deposits and borrowings.

The Company booked a provision for credit losses of $0.4 million for the three months ended September 30, 2025, compared to a recovery of provision for credit losses of $0.1 million for the same period in 2024. The increase in the provision for credit losses for the three months ended September 30, 2025, was primarily driven by an increase of $48.4 million in the construction loan portfolio and an increase of $15.6 million in the commercial non-owner occupied loan portfolio from June 30, 2025, partially offset by a decrease in the multi-family loan portfolio of $12.8 million, and a decrease in the loss rate for the residential - 1 to 4 family investment loan portfolio from June 30, 2025. The provision for credit losses increased $1.4 million, or 255.0%, to $1.9 million, for the nine months ended September 30, 2025, compared to a provision for credit losses of $0.5 million for the same period in 2024. The increase was primarily driven by an increase in the construction loan portfolio balance of $63.8 million, and an increase in the commercial non-owner occupied loan balance of $80.2 million, from the balance at December 31, 2024, partially offset by a decrease in the residential - 1 to 4 family investment loan portfolio balance of $28.0 million, and a decrease in the multi-family portfolio loan balance of $9.6 million.

Non-interest income decreased $0.05 million, or 5.6%, for the three months ended September 30, 2025, compared to the same period in 2024, primarily as a result of a decrease in loan fees, service fees on deposit accounts, and other income. For the nine months ended September 30, 2025, non-interest income decreased $0.7 million, or 21.4%, to $2.5 million, compared to the same period in 2024. The decrease was primarily driven by a decrease in other income of $0.4 million, a decrease in service fees on deposit accounts of $0.1 million, and a decrease in loan fees of $0.1 million.

Non-interest expense increased $0.8 million, or 12.6%, to $7.2 million for the three months ended September 30, 2025, compared to the same period in 2024. The increase was primarily driven by an increase in compensation and benefits of $0.1 million, an increase in professional services expense of $0.2 million, and an increase in other operating expense of $0.3 million, partially offset by a decrease in other real estate owned ("OREO") expense of $0.1 million, compared to the same period in 2024. For the nine months ended September 30, 2025, non-interest expense increased $1.2 million, or 6.5%, to $20.4 million, compared to the same period in 2024. The increase in non-interest expense was primarily due to an increase in professional services of $0.6 million, an increase in compensation and benefits of $0.4 million, and an increase in data processing expense of $0.3 million, partially offset by a decrease in OREO expense of $0.5 million, compared to the nine months ended September 30, 2024.

Income tax expense increased $1.0 million for the three months ended September 30, 2025 compared to the same period in 2024. For the nine months ended September 30, 2025, income tax expense increased $1.7 million, compared to the same period in 2024. The effective tax rate for the three and nine months ended September 30, 2025 was 21.2% and 23.3%, respectively, compared to 20.1% and 24.3% for the same period in 2024.

**September 30, 2025 discussion of financial condition**

&nbsp;&nbsp;&nbsp;&nbsp;• Total assets increased to $2.17 billion at September 30, 2025, from $2.14 billion at December 31, 2024, an increase of $29.9 million, or 1.4%, primarily due to an increase in net loans, partially offset by a decrease in cash and cash equivalents.

&nbsp;&nbsp;&nbsp;&nbsp;• Cash and cash equivalents totaled $159.3 million at September 30, 2025, as compared to $221.5 million at December 31, 2024. The decrease in cash and cash equivalents was primarily due to an increase in loan balances, and a decrease in FHLBNY and subordinated debt borrowings, partially offset by an increase in deposits.

&nbsp;&nbsp;&nbsp;&nbsp;• The investment securities portfolio decreased to $13.9 million at September 30, 2025, from $14.8 million at December 31, 2024, a decrease of $0.9 million, or 6.1%, primarily due to pay downs of securities, partially offset by the purchase of a corporate security for $0.5 million .

&nbsp;&nbsp;&nbsp;&nbsp;• Gross loans increased $92.0 million or 4.9%, to $1.96 billion at September 30, 2025, compared to gross loans at December 31, 2024.

&nbsp;&nbsp;&nbsp;&nbsp;• Nonperforming loans at September 30, 2025 increased to $12.4 million, or 0.63% of total loans, an increase of $0.6 million, or 5.5%, from $11.8 million of nonperforming loans at December 31, 2024. OREO at September 30, 2025 was $1.6 million, unchanged from December 31, 2024. Nonperforming assets (consisting of nonperforming loans and OREO) represented 0.64% and 0.62% of total assets at September 30, 2025 and December 31, 2024, respectively. Loans past due 30 to 89 days were $2.5 million at September 30, 2025, an increase of $1.1 million from December 31, 2024.

&nbsp;&nbsp;&nbsp;&nbsp;• The allowance for credit losses was $33.9 million at September 30, 2025, as compared to $32.6 million at December 31, 2024. The ratio of the allowance for credit losses to total loans was 1.73% at September 30, 2025, and 1.74% at December 31, 2024. The ratio of allowance for credit losses to non-performing loans was 272.8% at September 30, 2025, compared to 276.5%, at December 31, 2024.

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&nbsp;&nbsp;&nbsp;&nbsp;• Total deposits were $1.75 billion at September 30, 2025, up from $1.63 billion at December 31, 2024, an increase of $121.5 million or 7.5%, compared to December 31, 2024. The increase in deposits was primarily driven by an increase in money market deposits of $273.3 million, partially offset by a decrease in time deposits of $135.2 million, a decrease in non-interest checking deposits of $8.8 million, and a decrease in savings deposits of $8.5 million.

&nbsp;&nbsp;&nbsp;&nbsp;• Total borrowings decreased $104.9 million during the nine months ended September 30, 2025, to $83.4 million at September 30, 2025, from $188.3 million at December 31, 2024, primarily due to the repayment of $75.0 million of FHLBNY term borrowings, and the repayment of $30.0 million of subordinated debt.

&nbsp;&nbsp;&nbsp;&nbsp;• Total equity increased to $314.8 million at September 30, 2025, up from $300.1 million at December 31, 2024, an increase of $14.8 million, or 4.9%, primarily due to the retention of earnings, partially offset by the payment of $6.4 million of cash dividends, and the repurchase of Company common stock of $6.5 million.

**CEO outlook and commentary**

Vito S. Pantilione, President and Chief Executive Officer of Parke Bancorp, Inc. and Parke Bank, provided the following statement:

"The long-anticipated interest rate reduction by the Federal Reserve Board occurred with a 25-basis point reduction, although market volatility continues. There seems to be differences of opinion on the Federal Reserve Board, with some members thinking rates need further reduction, other members believe rates should remain unchanged, and there are also those who think rates may need to be increased due to inflation goals not being met. All of this uncertainty regarding interest rates is adding to the market volatility. Geopolitical challenges also contribute to the market volatility, with the Russia-Ukraine and Israel-Hamas wars continuing, although subsequent to September 30<sup>th</sup> a peace agreement was reached for the Isael-Hamas conflict. As of September 30th, the job market began to soften, a trend further intensified by the government shutdown that followed. Unfortunately, there doesn't seem to be a near-term solution to the government shutdown."

"Recently, the OCC and the Federal Reserve regulatory agencies have released statements reducing some of the regulatory pressure currently on community banks. Some issues addressed were Fair Lending examinations and restricting the parameters available to regulators for enforcement actions. These and other changes should provide community banks with the long-needed ability to better address their communities' banking and neighborhood needs."

"It's being reported that the residential single-family market is cooling but stabilizing. Mortgage rates, although declining, are still higher than pre-pandemic rates, keeping some sellers out of the market with "rate lock", an existing low-rate mortgage that they don't want to give up. Higher inventory and homes being on the market longer should help buyers negotiate a better price in the market. Single family construction starts have slowed 6% to 7% year over year. The residential rental market has been reported as stable in the Philadelphia Metro area."

"Parke Bank experienced positive financial results in the 3rd quarter of 2025 with Net Income growing 41.6% to $10.6 million, compared to the three months ended September 30, 2024. That is an increase of $3.1 million. Net Income to our common shareholders for the nine months ended September 30, 2025 grew 32.7% over the nine months ended September 30, 2024, to $26.7 million. The growth of our Net Income was supported by increased interest income due to the continued growth of our loan portfolio, in addition to continued tight control of our expenses with an improved Efficiency Ratio of 35.68% as of September 30, 2025, compared to 41.37% as of September 30, 2024."

"Parke Bank increased loan generation during the nine months ended September 30, 2025, increasing the outstanding loan balance by $92.0 million, after principal payments and loan payoffs. The outstanding loan balance as of September 30, 2025,

was $1.96 billion. New loan generation during the nine months ended September 30, 2025, was $144 million. This growth was partially supported by an increase in loan demand and adding lending staff to our company."

"Asset Quality continues to be a top priority as we maintain a 1.73% provision for credit losses as of September 30, 2025, slightly less than 1.74% as of December 31, 2024. Our non-performing loans as of September 30, 2025, increased to $12.4 million, up from $11.8 million as of December 31, 2024."

"Parke Bank continues to be in a good position to manage the continued volatile market, which includes the complications caused by the government shutdown. I have been in banking for a long time and I can't remember a time when either the economy was in a slowdown or recession, and if not, there were warnings of a slowdown. We always need to be prepared for these challenges with strong equity of $314.8 million, up from $300.1 million as of December 31, 2024, strong liquidity, loan growth and continued tight control of our expenses. We have repaid $30.0 million in subordinated debt, further strengthening our balance sheet and reducing our interest expense. We always look for new opportunities in the market, while operating a safe and sound financial institution."

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**Forward Looking Statement Disclaimer**

*This release may contain forward-looking statements. Such forward-looking statements are subject to risks and uncertainties which may cause actual results to differ materially from those currently anticipated due to a number of factors; our ability to maintain a strong capital base, strong earning and strict cost controls; our ability to generate strong revenues with increased interest income and net interest income; our ability to continue the financial strength and growth of our loan portfolio; our ability to continue to increase shareholders*' *equity, maintain strong loan underwriting and allowance for credit losses; our ability to react quickly to any increase in loan delinquencies; our ability to face current challenges in the market; our ability to be well positioned navigate the challenging economic volatility; our ability to continue to reduce our nonperforming loans and delinquencies and the expenses associated with them; our ability to increase the rate of growth of our loan portfolio; our ability to continue to improve net interest margin; our ability to enhance shareholder value in the future; our ability to continue growing our Company, our earnings and shareholders*' *equity; the possibility of additional corrective actions or limitations on the operations of the Company. and Parke Bank being imposed by banking regulators, therefore, readers should not place undue reliance on any forward-looking statements. The Company does not undertake, and specifically disclaims, any obligations to publicly release the results of any revisions that may be made to any forward-looking statements to reflect the occurrence of anticipated or unanticipated events or circumstances after the date of such circumstance.*

(PKBK-ER)

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Financial Supplement:

Table 1: Condensed Consolidated Balance Sheets (Unaudited)

Parke Bancorp, Inc. and Subsidiaries

Condensed Consolidated Balance Sheets

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| | | |
|:---|:---|:---|
|  | September 30, | December 31, |
|  | 2025 | 2024 |
|  | (Dollars in thousands) | (Dollars in thousands) |
| <u>Assets</u> |  |  |
| Cash and cash equivalents | $159313 | $221527 |
| Investment securities | 13859 | 14760 |
| Loans, net of unearned income | 1960153 | 1868153 |
| Less: Allowance for credit losses | (33904) | (32573) |
| Net loans | 1926249 | 1835581 |
| Premises and equipment, net | 5573 | 5316 |
| Bank owned life insurance (BOLI) | 32947 | 29070 |
| Other assets | 34193 | 35983 |
| **Total assets** | $2172134 | $2142236 |
| <u>Liabilities and Equity</u> |  |  |
| Non-interest bearing deposits | $184771 | $184037 |
| Interest bearing deposits | 1567810 | 1447013 |
| FHLBNY borrowings | 70000 | 145000 |
| Subordinated debentures | 13403 | 43300 |
| Other liabilities | 21313 | 22813 |
| **Total liabilities** | 1857297 | 1842163 |
| **Total shareholders' equity** | 314837 | 300073 |
| **Total liabilities and equity** | $2172134 | $2142236 |

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Table 2: Consolidated Income Statements (Unaudited)

Parke Bancorp, Inc. and Subsidiaries

Consolidated Income Statement

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| | | | | |
|:---|:---|:---|:---|:---|
|  | For the Three Months Ended | For the Three Months Ended | For the Nine Months Ended | For the Nine Months Ended |
|  | September 30, | September 30, | September 30, | September 30, |
|  | 2025 | 2024 | 2025 | 2024 |
| Interest income: |  |  |  |  |
| Interest and fees on loans | $34910 | $30161 | $99142 | $86976 |
| Interest and dividends on investments | 218 | 265 | 738 | 761 |
| Interest on deposits with banks | 1381 | 1696 | 5499 | 4050 |
| Total interest income | 36509 | 32122 | 105379 | 91787 |
| Interest expense: |  |  |  |  |
| Interest on deposits | 15385 | 14983 | 45698 | 42123 |
| Interest on borrowings | 960 | 2416 | 5039 | 6575 |
| Total interest expense | 16345 | 17399 | 50737 | 48698 |
| Net interest income | 20164 | 14723 | 54642 | 43089 |
| Provision for (recovery of) credit losses | 364 | (141) | 1938 | 546 |
| Net interest income after provision for (recovery of) credit losses | 19800 | 14864 | 52704 | 42543 |
| Non-interest income |  |  |  |  |
| Service fees on deposit accounts | 305 | 321 | 925 | 1059 |
| Gain on sale of SBA loans |  | (3) |  | 23 |
| Other loan fees | 188 | 217 | 510 | 619 |
| Bank owned life insurance income | 173 | 166 | 507 | 488 |
| Other | 184 | 200 | 546 | 975 |
| Total non-interest income | 850 | 901 | 2488 | 3164 |
| Non-interest expense |  |  |  |  |
| Compensation and benefits | 3318 | 3178 | 9873 | 9466 |
| Professional services | 890 | 645 | 2255 | 1641 |
| Occupancy and equipment | 688 | 630 | 2052 | 1943 |
| Data processing | 429 | 348 | 1274 | 978 |
| FDIC insurance and other assessments | 356 | 319 | 1090 | 973 |
| OREO expense | 92 | 187 | 319 | 776 |
| Other operating expense | 1391 | 1058 | 3520 | 3358 |
| Total non-interest expense | 7164 | 6365 | 20383 | 19135 |
| Income before income tax expense | 13486 | 9400 | 34809 | 26572 |
| Income tax expense | 2856 | 1892 | 8118 | 6458 |
| Net income attributable to Company | 10630 | 7508 | 26691 | 20114 |
| Less: Preferred stock dividend | (5) | (5) | (15) | (16) |
| Net income available to common shareholders | $10625 | $7503 | $26676 | $20098 |
| Earnings per common share |  |  |  |  |
| Basic | $0.90 | $0.63 | $2.26 | $1.68 |
| Diluted | $0.89 | $0.62 | $2.23 | $1.66 |
| Weighted average common shares outstanding |  |  |  |  |
| Basic | 11773473 | 11959546 | 11816577 | 11960173 |
| Diluted | 11958108 | 12153393 | 11989947 | 12134828 |

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Table 3: Operating Ratios (unaudited)

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| | | | | |
|:---|:---|:---|:---|:---|
|  | Three months ended | Three months ended | Nine Months Ended | Nine Months Ended |
|  | September 30, | September 30, | September 30, | September 30, |
|  | 2025 | 2024 | 2025 | 2024 |
| Return on average assets | 1.99% | 1.49% | 1.68% | 1.37% |
| Return on average common equity | 13.40% | 10.08% | 11.51% | 9.20% |
| Interest rate spread | 2.89% | 1.88% | 2.54% | 1.91% |
| Net interest margin | 3.83% | 2.97% | 3.49% | 2.99% |
| Efficiency ratio\* | 34.09% | 40.74% | 35.68% | 41.37% |

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\* Efficiency ratio is calculated using non-interest expense divided by the sum of net interest income and non-interest income.

Table 4: Asset Quality Data (unaudited)

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| | | |
|:---|:---|:---|
|  | September 30, | December 31, |
|  | 2025 | 2024 |
|  | (Amounts in thousands except ratio data) | (Amounts in thousands except ratio data) |
| Allowance for credit losses on loans | $33903 | $32573 |
| Allowance for credit losses to total loans | 1.73% | 1.74% |
| Allowance for credit losses to non-accrual loans | 272.80% | 276.46% |
| Non-accrual loans | $12430 | $11782 |
| OREO | $1562 | $1562 |

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