1st Quarter 2019 Shareholder Newsletter

April 2019

We are already a quarter of the way through 2019 and happy to report a great start to the year. Good growth combined with even better margins in both our Banking and Trust and Family Office (TFO) divisions are contributing to improved across the board performance compared to a year ago. You may recall the first quarter last year was a very good quarter, so we are pleased with any year-over-year increases.

 

Total loans as of March 31, 2019 were $381 million, an increase of $12 million compared to a year ago. Loan growth in the second half of 2018 was challenging as clients aggressively paid down their lines of credit at Parkside. We believe that trend will slow, if not reverse, supporting growth in 2019 and beyond more in line with our typical loan growth of $30+/- million per year. TFO assets increased $100 million to just over $1.3 billion as of March 31, 2019. This growth helped support an 8% increase in TFO revenue to slightly over $1.6 million for the first quarter of this year compared to last year.

 

Total company revenue increased 5% to $6.4 million in the first quarter of 2019 compared to the same period in 2018. Total expenses grew at a slower 3% rate helping to boost net income for the first quarter to $1.9 million, a 9% increase compared to the same period last year. Trailing twelve month basic earnings per share as of March 31, 2019 increased 20% compared to trailing twelve month basic earnings per share as of March 31, 2018. About half of the EPS increase is due to performance improvement (revenue growing faster than expenses) and the other half is due to the lower corporate income tax rates that went into effect in 2018.

 

We are pleased to report our performance ratios continue to be exceptionally strong with first quarter 2019 return on average assets of 1.6% and first quarter return on average equity of 15%. Asset quality also remains strong as we enter our fourth year with no net loan losses, and we
maintain a healthy $7.5 million loan loss reserve.

 

The Parkside team continues to grow, adding three new employees at the end of the first quarter. Matthew Kasten and Adam Basler joined the TFO team as Financial Analysts. Matthew graduated from Miami University with a Bachelor’s Degree in Finance. Following college, he worked for Wells Fargo as a Quality Assurance Analyst. Adam earned his Bachelor’s Degree in Finance from Missouri State University in May of 2018. Prior to joining Parkside, he was a Client Service Specialist at Ameriprise Financial. Jessica Elliot joined the Banking division as a Bank Operations Specialist. Jessica previously served as an Operations Specialist for Citizens National Bank. We are excited to welcome Matthew, Adam and Jessica to Parkside!

 

Please join us at a new and exciting location for the 11th Annual Shareholder Meeting on May 15th at 4:30 p.m. This year’s meeting will be held at the Donald Danforth Plant Science Center. We will reflect on our historical performance, address our updated outlook and discuss the opportunities we will face in the years ahead. Please feel free to extend this invitation to anyone who might be interested in learning more about Parkside. If you have not done so already, please return your executed shareholder proxy mailed to you in early April.

 

As always, should you have any questions or comments, please feel free to contact us.

Sincerely,
James C. Wagner - CEO
Andrew S. Hereford - President, Bank
Matthew A. Wagner - President, TFO