NORTHERN STATES FINANCIAL CORPORATION
KEY PERFORMANCE DATA
($ 000's, except per share data)
Quarter ended March 31: 2009 2008
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Net Income (Loss) $ (1,457) $ 1,201
Basic and Diluted Earnings (Loss) Per Share $ (.39) $ .29
Return on Average Assets -.91% .75%
Return on Average Equity -8.60% 6.48%
Efficiency Ratio 118.56% 67.91%
Yield on Interest Earning Assets 5.23% 6.22%
Cost of Interest Bearing Liabilities 2.32% 3.11%
Net Interest Spread 2.91% 3.11%
Net Yield on Interest Earning Assets 3.24% 3.61%
NORTHERN STATES FINANCIAL CORPORATION
KEY PERFORMANCE DATA
($ 000's, except per share data)
March 31, Dec. 31,
2009 2008
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Total Assets $ 652,144 $ 640,719
Total Loans and Leases 475,616 480,812
Total Deposits 500,520 500,821
Total Stockholders' Equity 76,535 61,614
Nonperforming Loans and Leases 39,474 37,066
Impaired Loans and Leases 41,392 43,756
Other Real Estate Owned 6,275 10,575
Nonperforming Loans and Leases to
Total Loans and Leases 8.30% 7.71%
Book Value per Share $ 18.79 $ 15.13
Number of Shares Outstanding 4,072,255 4,072,255
NORTHERN STATES FINANCIAL CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
($ 000s) (Unaudited)
March 31, December 31,
2009 2008
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Assets
Cash and due from banks $ 11,756 $ 14,108
Interest bearing deposits in financial
institutions - maturities less than 90 days 209 242
Federal funds sold 37,331 7,518
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Total cash and cash equivalents 49,296 21,868
Securities available for sale 96,556 103,194
Loans and leases 475,616 480,812
Less: Allowance for loan and lease losses (11,913) (10,402)
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Loans and leases, net 463,703 470,410
Federal Home Loan Bank stock 1,757 1,757
Office buildings and equipment, net 9,856 9,916
Other real estate owned 6,275 10,575
Goodwill 9,522 9,522
Core deposit intangible assets 810 926
Accrued interest receivable and other assets 14,369 12,551
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Total assets $ 652,144 $ 640,719
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Liabilities and Stockholders' Equity
Liabilities
Deposits
Demand - noninterest bearing $ 56,078 $ 57,313
Interest bearing 444,442 443,508
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Total deposits 500,520 500,821
Securities sold under repurchase agreements 38,754 42,574
Federal Home Loan Bank advance 20,000 20,000
Subordinated debentures 10,000 10,000
Advances from borrowers for taxes and insurance 1,206 1,011
Accrued interest payable and other liabilities 5,129 4,699
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Total liabilities 575,609 579,105
Stockholders' Equity
Common stock 1,789 1,789
Preferred stock 16,550 0
Warrants 681 0
Additional paid-in capital 11,584 11,584
Retained earnings 54,507 56,082
Treasury stock, at cost (9,280) (9,280)
Accumulated other comprehensive income 704 1,439
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Total stockholders' equity 76,535 61,614
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Total liabilities and stockholders' equity $ 652,144 $ 640,719
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NORTHERN STATES FINANCIAL CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
Three months ended March 31, 2009 and 2008
($ 000s, except per share data) (Unaudited)
Three months ended
March 31, March 31,
2009 2008
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Interest income
Loans (including fee income) $ 6,434 $ 7,246
Securities
Taxable 1,254 1,888
Exempt from federal income tax 98 115
Federal funds sold and other 3 70
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Total interest income 7,789 9,319
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Interest expense
Time deposits 2,255 2,826
Other deposits 420 479
Repurchase agreements and federal funds purchased 171 410
Federal Home Loan Bank advances 27 62
Subordinated debentures 123 159
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Total interest expense 2,996 3,936
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Net interest income 4,793 5,383
Provision for loan and lease losses 1,704 263
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Net interest income after provision for loan and
lease losses 3,089 5,120
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Noninterest income
Service fees on deposits 538 634
Trust income 172 213
Gain (loss) on sales of other real estate owned (1,673) 0
Other operating income 238 293
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Total noninterest income (725) 1,140
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Noninterest expense
Salaries and employee benefits 2,101 2,216
Occupancy and equipment, net 732 634
Data processing 391 439
Legal 239 84
Audit and professional 271 352
Amortization of intangible assets 116 116
Other operating expenses 973 589
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Total noninterest expense 4,823 4,430
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Income before income taxes (2,459) 1,830
Provision for income taxes (1,002) 629
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Net income (loss) $ (1,457) $ 1,201
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Basic and diluted earnings (loss) per share $ (0.39) $ 0.29
Contact Information: For Additional Information, Contact: Scott Yelvington Executive Vice President (847) 244-6000 Ext. 201 Websites: www.nsfc.com www.nsfc.net