SOURCE: Northern Star Bank

October 23, 2007 15:48 ET

Northern Star Financial, Inc. Reports Fourth Quarter Results and Year End Results

MANKATO, MN--(Marketwire - October 23, 2007) - Northern Star Financial, Inc. (OTCBB: NSBK) today announced results for the Company and its wholly owned subsidiary Northern Star Bank (Bank) for the fourth quarter and for the fiscal year ending June 30, 2007.

Northern Star Financial, Inc., the parent company of Northern Star Bank, reported a consolidated net loss of $142,714 in the fourth quarter and $569,242 for the fiscal year ended June 30, 2007 compared with a net loss of $242,343 in the fourth quarter and a net loss of $401,980 during fiscal year 2006. The Company reported a basic loss per share of $(0.77) during the fiscal year ending June 30, 2007 compared with a basic loss of $(0.64) per share during fiscal year ending June 30, 2006.

Our ability to sustain the growth of earning assets and to achieve continuous profitability remains a challenge. Comments in last year's report warned of a slow down in the economy, which has become a reality. The residential real estate market has slowed not only in our markets but throughout the nation. Net of recoveries, the Bank charged off $275,000 of loans no longer believed to be collectable thereby necessitating an $115,000 provision for loan loss expense during the fiscal year. Our reserve for loan and lease losses is at an adequate level to support the current quality of the Bank's loan portfolio.

We continued to invest in improvements to bank services during this past fiscal year when we implemented internet banking for our customers. We plan to institute a wider range of electronic bank service options during the coming months.

We have added experienced staff to our senior management team, laying a foundation for the future success of the Bank.

Last year we reported entering into Letters of Intent with investors to raise capital and to provide for the sale the St. Cloud branch. While both the planned sale of the St. Cloud office and the sale of a fifty percent stake in the Company did not materialize; we successfully placed 130,000 shares of the Company's common stock at the rate of $5.00 per share during the fiscal year. The Board of Directors is continuing their efforts to improve earnings by strengthening the balance sheet with high levels of earnings assets supported by increased capital.

The Company commenced operations on January 25, 1999 as a bank holding company whose subsidiary provides financial services. Northern Star Bank's business is that of financial intermediary and consists primarily of attracting deposits from the general public and using such deposits, together with borrowings and other funds, to make secured and unsecured loans to business and professional concerns and mortgage loans secured by residential real estate and other consumer loans.

THIS PRESS RELEASE CONTAINS FORWARD-LOOKING INFORMATION AND ACTUAL RESULTS MAY DIFFER.

Statements that Northern Star Financial, Inc. may publish, including those in this announcement that are not strictly historical, are "forward-looking" statements made under the safe harbor provisions of the Private Securities Litigation Reform Act of 1995.

Forward-looking statements are inherently unreliable and actual results may vary. Factors which could cause actual results to differ from these forward-looking statements include changes in competitive marketplace, changes in the interest rate environment, economic conditions, and outcome of pending litigations, risks associated with credit quality and other factors discussed in the Company's filings with the Securities and Exchange Commission. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

Contact Information

  • Contact:
    Thomas Stienessen
    Chief Executive Officer
    (507) 387-2265