NORTHERN STATES FINANCIAL CORPORATION
KEY PERFORMANCE DATA
($ 000's, except per share data)
Sept. 30, Dec. 31,
2009 2008
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Total Assets $628,145 $640,719
Total Loans and Leases 449,669 480,812
Total Deposits 520,153 500,821
Total Stockholders' Equity 48,766 61,614
Nonperforming Loans and Leases 46,590 37,066
Nonperforming Loans and Leases to
Total Loans and Leases 10.36% 7.71%
Impaired Loans and Leases $49,985 $43,756
Book Value per Share $7.75 $15.13
Number of Shares Outstanding 4,072,255 4,072,255
NORTHERN STATES FINANCIAL CORPORATION
KEY PERFORMANCE DATA
($ 000's, except per share data)
Quarter ended September 30: 2009 2008
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Loss ($ 17,742) ($2,781)
Basic Earnings (Loss) Per Share ($4.42) ($ .68)
Return on Average Assets (11.19%) (1.72%)
Return on Average Equity (108.77%) (16.18%)
Efficiency Ratio 133.57% 89.09%
Yield on Interest
Earning Assets 4.91% 5.89%
Cost of Interest
Bearing Liabilities 1.91% 2.50%
Net Interest Spread 3.00% 3.39%
Net Yield on Interest
Earning Assets 3.32% 3.80%
Nine months ended September 30: 2009 2008
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Loss ($31,030) ($1,730)
Basic Earnings (Loss) Per Share ($7.77) ($.42)
Return on Average Assets (6.45%) (.36%)
Return on Average Equity (57.38%) (3.22%)
Efficiency Ratio 190.36% 72.33%
Yield on Interest
Earning Assets 5.00% 6.02%
Cost of Interest
Bearing Liabilities 2.11% 2.75%
Net Interest Spread 2.89% 3.27%
Net Yield on Interest
Earning Assets 3.22% 3.72%
NORTHERN STATES FINANCIAL CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
($ 000s) (Unaudited)
September 30, December 31,
2009 2008
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Assets
Cash and due from banks $ 13,538 $ 14,108
Interest bearing deposits in financial
institutions - maturities less than
90 days 949 242
Federal funds sold 21,302 7,518
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Total cash and cash equivalents 35,789 21,868
Securities available for sale 123,962 103,194
Loans and leases 449,669 480,812
Less: Allowance for loan and lease losses (23,345) (10,402)
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Loans and leases, net 426,324 470,410
Federal Home Loan Bank stock 1,801 1,757
Office buildings and equipment, net 9,824 9,916
Other real estate owned 21,461 10,575
Goodwill 0 9,522
Core deposit intangible assets 578 926
Accrued interest receivable and other assets 8,406 12,551
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Total assets $ 628,145 $ 640,719
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Liabilities and Stockholders' Equity
Liabilities
Deposits
Demand - noninterest bearing $ 59,047 $ 57,313
Interest bearing 461,106 443,508
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Total deposits 520,153 500,821
Securities sold under repurchase agreements 42,416 42,574
Federal Home Loan Bank advance 0 20,000
Subordinated debentures 10,000 10,000
Advances from borrowers for taxes and
insurance 444 1,011
Accrued interest payable and other
liabilities 6,366 4,699
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Total liabilities 579,379 579,105
Stockholders' Equity
Common stock 1,789 1,789
Preferred stock 16,611 0
Warrants 681 0
Additional paid-in capital 11,584 11,584
Retained earnings 25,405 56,082
Treasury stock, at cost (9,280) (9,280)
Accumulated other comprehensive income 1,976 1,439
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Total stockholders' equity 48,766 61,614
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Total liabilities and stockholders'
equity $ 628,145 $ 640,719
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NORTHERN STATES FINANCIAL CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
Three and nine months ended September 30, 2009 and 2008
($ 000s, except per share data) (Unaudited)
Three months ended Nine months ended
Sept. 30, Sept. 30, Sept. 30, Sept. 30,
2009 2008 2009 2008
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Interest income
Loans (including fee income) $ 6,187 $ 7,287 $ 18,620 $ 21,585
Securities
Taxable 1,093 1,544 3,464 5,137
Exempt from federal
income tax 87 121 273 347
Federal funds sold and other 8 8 20 91
--------- --------- --------- ---------
Total interest income 7,375 8,960 22,377 27,160
--------- --------- --------- ---------
Interest expense
Time deposits 1,831 2,263 6,115 7,541
Other deposits 306 396 1,050 1,288
Repurchase agreements and
federal funds purchased 162 279 489 922
Federal Home Loan Bank
advances 4 137 52 289
Subordinated debentures 109 137 349 433
--------- --------- --------- ---------
Total interest expense 2,412 3,212 8,055 10,473
--------- --------- --------- ---------
Net interest income 4,963 5,748 14,322 16,687
Provision for loan and lease
losses 12,825 5,146 18,244 8,129
--------- --------- --------- ---------
Net interest income after
provision for loan and lease
losses (7,862) 602 (3,922) 8,558
--------- --------- --------- ---------
Noninterest income
Service fees on deposits 638 672 1,753 1,953
Trust income 182 188 590 619
Net gains (loss) on sales of
other real estate owned 42 0 (1,594) 0
Impairment loss on
securities (2,424) (2,180) (3,052) (2,180)
Other operating income 320 319 881 863
--------- --------- --------- ---------
Total noninterest income (1,242) (1,001) (1,422) 1,255
--------- --------- --------- ---------
Noninterest expense
Salaries and employee
benefits 2,109 2,127 6,286 6,432
Occupancy and equipment, net 556 580 1,872 1,801
Data processing 472 415 1,345 1,278
FDIC insurance 324 24 1,080 98
Legal 308 144 942 304
Audit and professional 244 260 695 997
Write-down of goodwill 0 0 9,522 0
Amortization of intangibles 116 116 348 348
Other real estate owned
expense 178 27 442 75
Other operating expenses 663 536 2,024 1,645
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Total noninterest expense 4,970 4,229 24,556 12,978
--------- --------- --------- ---------
Income (loss) before income
taxes (14,074) (4,628) (29,900) (3,165)
Provision for income taxes 3,668 (1,847) 1,130 (1,435)
--------- --------- --------- ---------
Net (loss) income $ (17,742) $ (2,781) $ (31,030) $ (1,730)
========= ========= ========= =========
Earnings per share $ (4.42) $ (0.68) $ (7.77) $ (0.42)
Contact Information: For Additional Information, Contact: Scott Yelvington Executive Vice President (847) 244-6000 Ext. 201 Websites: www.nsfc.com www.nsfc.net