This bank that serves cannabis customers had most of its profit wiped out by a robbery.
By Steve Goldstein
Providing banking services to the cannabis industry isn't easy.
Take Parke Bancorp (PKBK), a Washington Township, N.J. bank that focuses on the Southern New Jersey and Philadelphia area. In January, it reported that an armored car company, which it uses to transport and store cash for cannabis-related customers, had some cash stolen from a vault.
After contracting an outside accounting firm, Parke confirmed the $9.5 million theft, and so the bank booked the loss in the third quarter. As a result, its profit fell 90% to $1 million, or 8 cents a share, it announced on Wednesday.
Parke said it will now seek to recover the losses, including through insurance. "Although this theft is painful and was unexpected, we are fortunate to have the financial strength and earnings to absorb the loss," CEO Vita Pantilione said in a statement.
Federal legislation to open up the financial system to legal cannabis companies has been stalled for a decade. Last month, the Senate Banking Committee approved the Secure and Fair Enforcement Regulation Banking Act, setting the stage for the legislation to be voted on by the full Senate.
-Steve Goldstein
This content was created by MarketWatch, which is operated by Dow Jones & Co. MarketWatch is published independently from Dow Jones Newswires and The Wall Street Journal.
(END) Dow Jones Newswires
10-26-23 1148ET
Copyright (c) 2023 Dow Jones & Company, Inc.-
What’s Happening in the Markets This Week
-
Worst-Performing Stock ETFs of the Quarter
-
Q3 in Review and Q4 2024 Market Outlook
-
Top-Performing Stock ETFs of the Quarter
-
September Jobs Report Forecasts Show Moderate Hiring Gains
-
Port Strike a Headache for Shippers but a Potential Tailwind for Certain US Transport Stocks
-
13 Charts on Q3′s Roller-Coaster Rally for Stocks and Bonds
-
5 Stocks to Buy Instead of Overpriced US Equities
-
Consumer Defensives: Despite Angst, Thirsty Investors Have Names to Pursue
-
Industrials: Many Stocks Overvalued After Q3 Outperformance
-
Basic Materials: Despite Index Rise, We See Multiple Long-Term Opportunities
-
What the Election Could Mean for Big Tech Stocks
-
3 Lessons From Recent Stock Market Drama
-
Consumer Cyclicals: Even Amid Moderating Consumer Spending, We See Discounts
-
Healthcare: Valuations Look Fair Overall, With Select Industries Still Undervalued
-
Utilities: Falling Interest Rates, Growth Outlook Boosting Stocks