PKBK

Parke Bancorp is a small, conservatively-run New Jersey community bank trading at just 10.4x FY2025 diluted EPS of $3.16 and roughly 1.2x book (equity $325M against ~11.8M shares ≈ $27.5/share book), which is undemanding for a franchise that just grew net income 37.3% to $37.8M and diluted EPS 39.2%. The engine is net interest income, which the MD&A shows expanded 30.2% to $76.5M as interest income rose 14.0% to $142.7M on higher average loan balances and rates while interest expense actually fell 0.3% — a textbook asset-sensitive lift. Operating cash flow ($39.6M) tracks earnings, capex is negligible ($595K), and the bank returned capital via $8.4M in dividends and $6.5M in buybacks (300,000 shares), so per-share value is compounding.

The balance sheet is the strongest part of the case. A risk-based Tier 1 capital ratio of 20.5% is roughly double a typical well-capitalized threshold, retained earnings grew 17.4% to $198M, and equity rose 8.1%. The 5.93x liabilities/equity ratio looks high in the abstract but is low leverage for a bank, underscoring a thick capital cushion that can absorb credit losses and fund growth or larger returns. ROE of 11.6% is respectable if not spectacular, held back precisely by that conservative capitalization.