NORTHERN STATES FINANCIAL CORPORATION
KEY PERFORMANCE DATA
($ 000's, except per share data)
Year ended December 31: 2009 2008
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Net Income ($33,823) ($9,273)
Basic Earnings Per Share ($8.52) ($2.26)
Return on Average Assets -5.28% -1.43%
Return on Average Equity -50.88% -13.09%
Yield on Interest Earning Assets 4.91% 5.74%
Cost of Interest Bearing Liabilities 1.99% 2.68%
Net Interest Spread 2.92% 3.06%
Net Yield on Interest Earning Assets 3.22% 3.49%
Quarter ended December 31: 2009 2008
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Net Income ($2,793) ($7,543)
Basic Earnings Per Share ($ .75) ($1.85)
Return on Average Assets -1.75% -4.49%
Return on Average Equity -22.51% -43.96%
Yield on Interest Earning Assets 4.65% 4.93%
Cost of Interest Bearing Liabilities 1.64% 2.47%
Net Interest Spread 3.01% 2.46%
Net Yield on Interest Earning Assets 3.24% 2.82%
NORTHERN STATES FINANCIAL CORPORATION
KEY PERFORMANCE DATA
($ 000's, except per share data)
Dec. 31, Dec. 31,
2009 2008
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Total Assets $624,025 $640,719
Total Loans and Leases 431,286 480,812
Total Deposits 517,236 500,821
Total Stockholders' Equity 42,036 61,614
Nonperforming Loans and Leases 41,619 37,066
Impaired Loans 56,254 43,756
Nonperforming Loans and Leases to
Total Loans and Leases 9.65% 7.71%
Other Real Estate Owned 19,198 10,575
Book Value per Share $6.10 $15.13
Number of Common Shares Outstanding 4,072,255 4,072,255
NORTHERN STATES FINANCIAL CORPORATION
DIVIDEND HISTORY
June 1 December 1 Total
------ ---------- -----
2004 $ .55 $ .55 $1.10
2005 .55 .07 .62
2006 .30 .35 .65
2007 .35 .37 .72
2008 .40 .00 .40
2009 .00 .00 .00
NORTHERN STATES FINANCIAL CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
($ 000s) (Unaudited)
December 31, December 31,
2009 2008
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Assets
Cash and due from banks $ 10,646 $ 14,108
Interest bearing deposits in financial
institutions - maturities less than 90 days 2,760 242
Federal funds sold 20,788 7,518
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Total cash and cash equivalents 34,194 21,868
Securities available for sale 133,421 103,194
Loans and leases 431,286 480,812
Less: Allowance for loan and lease losses (18,027) (10,402)
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Loans and leases, net 413,259 470,410
Federal Home Loan Bank stock 1,801 1,757
Office buildings and equipment, net 9,719 9,916
Other real estate owned 19,198 10,575
Goodwill 0 9,522
Core deposit intangible assets 462 926
Accrued interest receivable and other assets 11,971 12,551
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Total assets $ 624,025 $ 640,719
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Liabilities and Stockholders' Equity
Liabilities
Deposits
Demand - noninterest bearing $ 58,001 $ 57,313
Interest bearing 459,235 443,508
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Total deposits 517,236 500,821
Securities sold under repurchase agreements 49,364 42,574
Federal Home Loan Bank advance 0 20,000
Subordinated debentures 10,000 10,000
Advances from borrowers for taxes and insurance 898 1,011
Accrued interest payable and other liabilities 4,491 4,699
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Total liabilities 581,989 579,105
Stockholders' Equity
Common stock (Par value $.40 per share, authorized
6,500,000 shares, issued 4,472,255 at December 31,
2009 and 2008) 1,789 1,789
Preferred stock (Par value $.40 per share,
authorized 1,000,000 shares, issued 17,211 shares
with liquidation amounts of $1,000.00 per share at
December 31, 2009) 16,641 0
Warrants (584,084 issued and outstanding at
December 31, 2009) 681 0
Additional paid-in capital 11,584 11,584
Retained earnings 22,367 56,082
Treasury stock, at cost (400,000 shares at
December 31, 2009 and 2008) (9,280) (9,280)
Accumulated other comprehensive income (1,746) 1,439
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Total stockholders' equity 42,036 61,614
----------- -----------
Total liabilities and stockholders' equity $ 624,025 $ 640,719
=========== ===========
NORTHERN STATES FINANCIAL CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
Twelve and three months ended December 31, 2009 and 2008
($ 000s, except per share data) (Unaudited)
Twelve months ended Three months ended
Dec. 31, Dec. 31, Dec. 31, Dec. 31,
2009 2008 2009 2008
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Interest income
Loans (including fee income) $ 24,409 $ 27,820 $ 5,789 $ 6,235
Securities
Taxable 4,541 6,490 1,077 1,353
Exempt from federal income
tax 357 452 84 105
Federal funds sold and other 31 112 11 21
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Total interest income 29,338 34,874 6,961 7,714
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Interest expense
Time deposits 7,739 10,081 1,624 2,540
Other deposits 1,348 1,687 298 399
Repurchase agreements and
federal funds purchased 593 1,110 104 188
Federal Home Loan Bank advances 52 347 0 58
Subordinated debentures 455 570 106 137
--------- --------- --------- ---------
Total interest expense 10,187 13,795 2,132 3,322
--------- --------- --------- ---------
Net interest income 19,151 21,079 4,829 4,392
Provision for loan and lease
losses 22,778 13,663 4,534 5,534
--------- --------- --------- ---------
Net interest income after
provision for loan and lease
losses (3,627) 7,416 295 (1,142)
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Noninterest income
Service fees on deposits 2,395 2,571 642 618
Trust income 760 798 170 179
Net gains (loss) on sales of
other real estate owned (1,432) 0 162 0
Net gains on sales of
securities 3,908 40 3,908 0
Impairment loss on securities (3,052) (10,541) 0 (8,361)
Other operating income 1,205 1,087 324 264
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Total noninterest income 3,784 (6,045) 5,206 (7,300)
--------- --------- --------- ---------
Noninterest expense
Salaries and employee benefits 7,739 8,082 1,453 1,650
Occupancy and equipment, net 2,330 2,433 458 632
Data processing 1,847 1,705 502 427
FDIC insurance 1,376 222 296 124
Legal 1,278 463 336 159
Audit and professional 883 1,263 188 266
Write-down of goodwill 9,522 0 0 0
Amortization of intangibles 464 464 116 116
Write-down of other real
estate owned 1,722 44 1,722 44
Other operating expenses 2,992 2,253 526 533
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Total noninterest expense 30,153 16,929 5,597 3,951
--------- --------- --------- ---------
Income before income taxes (29,996) (15,558) (96) (12,393)
Provision for income taxes 3,827 (6,285) 2,697 (4,850)
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Net (loss) income $ (33,823) $ (9,273) $ (2,793) $ (7,543)
========= ========= ========= =========
Earnings per share $ (8.52) $ (2.26) $ (0.75) $ (1.85)
Contact Information: For Additional Information, Contact: Scott Yelvington Executive Vice President (847) 244-6000 Ext. 201 Websites: www.NorStatesBank.com www.nsfc.net