2010 marks the 95th anniversary of Park Bank. It has been interesting looking at annual reports and photographs from the early years. One particular message from 1931 struck me. It was titled “A Message of Appreciation” from the President and it went on to say: “We thank you for your splendid co-operation during the past year. We have depended upon you. You have depended upon us. Now we begin a new period of association with increased confidence on both sides.”

That same spirit of mutual respect and commitment to relationships drew me to Park Bank 21 years ago. Over the years, it has been gratifying to be part of a culture that stays true to its niche of serving businesses and professionals; a culture that doesn’t forget that our success is dependent on the success of our customers. This philosophy breeds loyalty and longevity. We are proud of the fact that 11 years is the average relationship length of our business customers and that over 30% of our employees have been with Park Bank more than 10 years. As newly appointed President, it is an honor to lead an organization that has established such a rich tradition of excellence to the community, customers and employees.

I am pleased to report our first quarter results and continue the two-way dialogue that is an important part of every Park Bank relationship. This dialogue has been particularly critical over the past few years. These unprecedented times have impacted every business we work with, and we have worked hard to stay in close contact with each of you. Likewise, your confidence in our financial stability is important to us.

Park Bank’s underlying earnings engine is working well. Net earnings for the quarter ended March 31, 2010 were $1.28 million. Total assets decreased slightly to $771.4 million, compared to $798.3 million as of December 31, 2009. During the same period, core capital grew by 3.1% to $78.1 million. Park Bank remains well-capitalized with a tier 1 leverage capital ratio of 11.07% as of March 31, 2010. We are continuing to increase our loan loss reserves, which stand at $15.1 million and represent 2.3% of outstanding loans at quarter end and reflect the realities of market conditions and a slowly recovering economy. We will continue to maintain strong capital and high levels of liquidity in order to support your needs.

If you have any questions, I encourage you to contact me at 414.270.3231 or by email at davew@parkbankonline.com. Thank you for your loyalty and confidence in Park Bank.

Best Regards,

David P. Werner
President