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2018 Subordinated Debt Press Release

December 12, 2018
We are pleased to announce that Parkside Financial, Inc. recently completed a private placement of $7.0 million in institutionally-placed subordinated debt. Why did Parkside decide to obtain subordinated debt? Parkside's philosophy on capital is to maintain the appropriate level of common equity capital to support our anticipated growth and provide a buffer for more challenging times. We want to operate above the levels regulators consider “well capitalized," the highest capital level. In addition, while we are
not publicly held (and have no need or desire to be public) the discipline of holding ourselves to the same standards as publicly held companies has served us well. The use of a conservative amount of subordinated debt would be expected of us at this time if we were publicly held. While we have plenty of common equity, a conservative amount of subordinated debt will help support our long-term business plan, providing capital for growth, dividends, stock repurchases and more, thus improving shareholder returns over time.

Placement Highlights:
Parkside's historical performance, strong balance sheet and excellent asset quality created significant demand for the subordinated debt with more than 10 institutions actively interested in purchasing in just the first two days. At completion, seven institutions participated in the purchase, resulting in the lowest coupon since January 1, 2016 for all non-rated private placements of subordinated debt issued by banks less than $1 billion in assets. We invite you to review the press release linked below for additional
information. Should you have any questions, please feel free to contact us.
Wishing you all the best this holiday season,
James C. Wagner - CEO
Andrew S. Hereford - President, Bank
Matthew A. Wagner - President, TFO