Parke Bancorp, Inc. (NASDAQ: PKBK), the holding company for Parke Bank, announced today the completion of a private placement of $30 million in ten-year, fixed-to-floating rate subordinated notes due 2030 to certain qualified institutional buyers and accredited investors. The Notes will initially bear interest at a fixed annual rate of 6.50%, for five years and will reset quarterly thereafter to the then current three-month SOFR plus 644 basis points. The Company may redeem the Notes on or after July 15, 2025, or at any time upon certain other specified events. The Notes have been structured to qualify initially as Tier 2 capital for the Company for regulatory capital purposes. The Company intends to use the net proceeds of the offering for general corporate purposes.
"We are pleased to announce the successful completion of our offering of the Notes on favorable terms. This capital raise will allow us to take advantage of opportunities in our market area on behalf of our customers and our shareholders, and provides us with additional flexibility without diluting our current shareholders," said Vito S. Pantilione, President and Chief Executive Officer of the Company.
Piper Sandler served as sole placement agent for the offering. Jones Walker LLP, Washington, D.C., served as legal counsel to Parke Bancorp, Inc. and Kilpatrick Townsend & Stockton LLP served as legal counsel to Piper Sandler.
About Parke Bancorp, Inc.
Parke Bancorp, Inc. was incorporated in January 2005, while Parke Bank commenced operations in January 1999. Parke Bancorp and Parke Bank maintain their principal offices at 601 Delsea Drive, Washington Township, New Jersey. Parke Bank conducts business through a branch office in Northfield, New Jersey, two branch offices in Washington Township, New Jersey, a branch office in Galloway Township, New Jersey, a branch office in Collingswood, New Jersey, a branch in center city Philadelphia and a branch in Chinatown in Philadelphia. Parke Bank is a full service commercial bank, with an emphasis on providing personal and business financial services to individuals and small-sized businesses primarily in Gloucester, Atlantic and Cape May counties in New Jersey and Philadelphia and surrounding counties in Pennsylvania. Parke Bank's deposits are insured up to the maximum legal amount by the Federal Deposit Insurance Corporation (FDIC). Parke Bancorp's common stock is traded on the NASDAQ Capital Market under the symbol "PKBK".
