Seeking Alpha
Editor's notes: If allowances exceed real losses on NPAs, which Intangible Valuation thinks they do, then PKBK is a buy trading at a solid discount to tangible book. 35%+ potential upside.

Parke Bancorp (PKBK) is a New Jersey bank holding company, which owns Parke Bank. On a number of measures Parke Bancorp is attractive, and, as it happens, on a few it is still questionable. The negative metrics provide us with an opportunity to buy the bank on the cheap. While the negatives are real, we will critically analyze their importance. The conclusion is that the metrics are bad, in part, due to the unique dynamics of a small community bank and their relationship with their largest debtors. Provided nonperforming assets at the bank recapture 73% of their recorded value, the corporation is a buy. Frankly, given that the stock trades at a discount to book, a shareholder...

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