NORTHERN STATES FINANCIAL CORPORATION
KEY PERFORMANCE DATA
($ 000's, except per share data)
Quarter ended June 30: 2009 2008
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Loss ($11,831) ($150)
Basic Earnings (Loss) Per Share ($2.97) ($.04)
Return on Average Assets (7.33%) (.09%)
Return on Average Equity (56.83%) (.83%)
Efficiency Ratio 288.85% 64.73%
Yield on Interest Earning Assets 4.85% 5.96%
Cost of Interest Bearing Liabilities 2.10% 2.65%
Net Interest Spread 2.75% 3.31%
Net Yield on Interest Earning Assets 3.09% 3.75%
Six months ended June 30: 2009 2008
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Net Income (Loss) ($13,288) $1,051
Basic Earnings Per Share ($3.35) $.25
Return on Average Assets (4.12%) .33%
Return on Average Equity (35.19%) 2.88%
Efficiency Ratio 213.38% 66.31%
Yield on Interest Earning Assets 5.04% 6.09%
Cost of Interest Bearing Liabilities 2.21% 2.88%
Net Interest Spread 2.83% 3.21%
Net Yield on Interest Earning Assets 3.16% 3.68%
NORTHERN STATES FINANCIAL CORPORATION
KEY PERFORMANCE DATA
($ 000's, except per share data)
June 30, Dec. 31,
2009 2008
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Total Assets $633,265 $640,719
Total Loans and Leases 474,044 480,812
Total Deposits 500,709 500,821
Total Stockholders' Equity 64,667 61,614
Nonperforming Loans and Leases 50,032 37,066
Nonperforming Loans and Leases to
Total Loans and Leases 10.55% 7.71%
Impaired Loans and Leases $61,648 $43,756
Book Value per Share $11.65 $15.13
Number of Shares Outstanding 4,072,255 4,072,255
NORTHERN STATES FINANCIAL CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
($ 000s) (Unaudited)
June 30, December 31,
2009 2008
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Assets
Cash and due from banks $ 13,148 $ 14,108
Interest bearing deposits in financial
institutions - maturities less than 90 days 1,176 242
Federal funds sold 30,901 7,518
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Total cash and cash equivalents 45,225 21,868
Securities available for sale 94,948 103,194
Loans and leases 474,044 480,812
Less: Allowance for loan and lease losses (14,861) (10,402)
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Loans and leases, net 459,183 470,410
Federal Home Loan Bank stock 1,801 1,757
Office buildings and equipment, net 9,753 9,916
Other real estate owned 6,015 10,575
Goodwill 0 9,522
Core deposit intangible assets 694 926
Accrued interest receivable and other assets 15,646 12,551
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Total assets $ 633,265 $ 640,719
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Liabilities and Stockholders' Equity
Liabilities
Deposits
Demand - noninterest bearing $ 54,359 $ 57,313
Interest bearing 446,350 443,508
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Total deposits 500,709 500,821
Securities sold under repurchase agreements 41,397 42,574
Federal Home Loan Bank advance 10,000 20,000
Subordinated debentures 10,000 10,000
Advances from borrowers for taxes and insurance 847 1,011
Accrued interest payable and other liabilities 5,645 4,699
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Total liabilities 568,598 579,105
Stockholders' Equity
Common stock 1,789 1,789
Preferred stock 16,581 0
Warrants 681 0
Additional paid-in capital 11,584 11,584
Retained earnings 43,392 56,082
Treasury stock, at cost (9,280) (9,280)
Accumulated other comprehensive income (80) 1,439
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Total stockholders' equity 64,667 61,614
------------ ------------
Total liabilities and stockholders'
equity $ 633,265 $ 640,719
============ ============
NORTHERN STATES FINANCIAL CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
Three and six months ended June 30, 2009 and 2008
($ 000s, except per share data) (Unaudited)
Three months ended Six months ended
June 30, June 30, June 30, June 30,
2009 2008 2009 2008
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Interest income
Loans (including fee income) $ 5,999 $ 7,052 $ 12,433 $ 14,298
Securities
Taxable 1,117 1,705 2,371 3,593
Exempt from federal
income tax 88 111 186 226
Federal funds sold and other 9 13 12 83
--------- --------- --------- ----------
Total interest income 7,213 8,881 15,002 18,200
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Interest expense
Time deposits 2,029 2,452 4,284 5,278
Other deposits 324 413 744 892
Repurchase agreements and
federal funds purchased 156 233 327 643
Federal Home Loan Bank
advances 21 90 48 152
Subordinated debentures 117 137 240 296
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Total interest expense 2,647 3,325 5,643 7,261
--------- --------- --------- ----------
Net interest income 4,566 5,556 9,359 10,939
Provision for loan and lease
losses 3,715 2,720 5,419 2,983
--------- --------- --------- ----------
Net interest income after
provision for loan and lease
losses 851 2,836 3,940 7,956
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Noninterest income
Service fees on deposits 577 647 1,115 1,281
Trust income 236 218 408 431
Net gains (loss) on sales of
other real estate owned 37 0 (1,636) 0
Impairment loss on
securities (628) 0 (628) 0
Other operating income 323 251 561 544
--------- --------- --------- ----------
Total noninterest income 545 1,116 (180) 2,256
--------- --------- --------- ----------
Noninterest expense
Salaries and employee
benefits 2,076 2,089 4,177 4,305
Occupancy and equipment, net 584 587 1,316 1,221
Data processing 482 424 873 863
FDIC insurance 604 32 756 74
Legal 395 76 634 160
Audit and professional 180 385 451 737
Write-down of goodwill 9,522 0 9,522 0
Amortization of intangible
assets 116 116 232 232
Other operating expenses 804 610 1,625 1,157
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Total noninterest expense 14,763 4,319 19,586 8,749
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Income (loss) before income
taxes (13,367) (367) (15,826) 1,463
Provision for income taxes (1,536) (217) (2,538) 412
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Net (loss) income $ (11,831) $ (150) $ (13,288) $ 1,051
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Contact Information: For Additional Information, Contact: Scott Yelvington Executive Vice President (847) 244-6000 Ext. 201 Websites: www.nsfc.com www.nsfc.net