Contact Information: For Additional Information, Contact: Scott Yelvington Executive Vice President (847) 244-6000 Ext. 201 Websites: www.nsfc.com www.nsfc.net
Northern States Financial Corporation Issues Shares in U.S. Treasury Capital Purchase Program
| Source: Northern States Financial Corporation
WAUKEGAN, IL--(Marketwire - February 23, 2009) - Northern States Financial Corporation (NASDAQ : NSFC ), holding company for NorStates Bank, a FDIC-insured financial
institution, today announced that on February 20, 2009 it issued
approximately $17.2 million of its senior preferred stock to the U.S.
Department of the Treasury under the TARP Capital Purchase Program.
The Company also issued to the U.S. Treasury warrants to purchase 584,084
shares of common stock at an exercise price of $4.42 per share and an
aggregate market value equal to 15% of the U.S. Treasury's senior preferred
investment.
With the addition of the capital from the U.S. Treasury, the Company's pro
forma total risk-based capital ratio and Tier 1 risk-based capital ratio at
December 31, 2008, would have been 15.5 % and 14.3 %, respectively.
About Northern States Financial Corporation
Northern States Financial Corporation is the holding company for NorStates
Bank, a full-service commercial bank with eight branches in Lake County,
Illinois. NorStates Bank is the successor to financial institutions dating
to 1919. NorStates Bank serves the populations of northeastern Illinois
and southeastern Wisconsin.
Forward-Looking Information
Statements contained in this news release that are not historical facts may
constitute forward-looking statements (within the meaning of Section 21E of
the Securities Exchange Act of 1934, as amended), which involve significant
risks and uncertainties. The Company intends such forward-looking
statements to be covered by the safe harbor provisions for forward-looking
statements contained in the Private Securities Litigation Reform Act of
1995, and is including this statement for purposes of invoking these safe
harbor provisions. Forward-looking statements, which are based on certain
assumptions and describe future plans, strategies and expectations of the
Company, are generally identifiable by the use of the words "believe,"
"expect," "intend," "anticipate," "estimate," "project," "plan," or similar
expressions. The Company's ability to predict results or the actual effect
of future plans or strategies is inherently uncertain and actual results
may differ from those predicted. The Company undertakes no obligation to
update these forward-looking statements in the future. Factors that could
have a material adverse effect on the Company's operations and could affect
the outlook or future prospects of the Company and its subsidiaries
include, but are not limited to, the potential for further deterioration in
the credit quality of the Company's loan and lease portfolios, a continued
increase in nonperforming loans, uncertainty regarding the Company's
ability to ultimately recover on loans currently on nonaccrual status,
unanticipated changes in interest rates, general economic conditions,
increasing regulatory compliance burdens or potential
legislative/regulatory changes, monetary and fiscal policies of the U.S.
Government, including policies of the U.S. Treasury and the Federal Reserve
Board, the quality or composition of the Company's loan or investment
portfolios, deposit flows, competition, demand for loan products and
financial services in the Company's market area, and changes in accounting
principles, policies and guidelines. These risks and uncertainties should
be considered in evaluating forward-looking statements.