WAUKEGAN, IL--(Marketwired - May 5, 2015) - Northern States Financial Corporation (
The financial results of the Bank showed first quarter earnings of $269,000. The Bank made a provision of $100,000 to the allowance for loan and lease losses during the first quarter of 2015. Management believed as of March 31, 2015, the allowance for loan and lease losses was adequate at 2.8% of total loans.
Total assets for the Company were $432 million at March 31, 2015, an increase of 2.3% from year-end 2014. Loan volume was steady during the first quarter, despite some welcome payoffs. The Bank's first quarter net interest margin was 3.12% with the cost of funds of 0.12%. The Bank's leverage capital ratio was 9.95%.
With regard to asset quality, the Company's non-performing assets ("NPAs"), consisting of nonaccrual loans, ninety days or more past due loans still accruing, loans considered troubled debt restructurings and other real estate owned, were reduced by $4.4 million from December 31, 2014 to March 31, 2015.
"The Bank continues to make significant progress with the disposition of and upgrades to its NPAs," stated Scott Yelvington, President and Chief Executive Officer. "We are also continuing our efforts to reduce expenses and increase income."
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
This release may contain forward-looking statements that are subject to risks and uncertainties. Such risks and uncertainties may include, but are not necessarily limited to, fluctuations in interest rates, inflation, government regulations, general economic conditions, competition within the business areas in which the Company conducts its operations including the real estate market in Illinois, and other factors beyond the Company's control. Such risks and uncertainties could cause actual results for subsequent interim periods or for the entire year to differ materially from those expressed or implied by any forward-looking statement. Readers should not place undue reliance on the forward-looking statements, which reflect management's beliefs, expectations and assumptions only as of the date hereof. The Company undertakes no obligation to update statements to reflect new information or subsequent events or circumstances.
NORTHERN STATES FINANCIAL CORPORATION | ||||||||||||||||
($000s, except per share data) (Unaudited) | ||||||||||||||||
Key Performance Data | ||||||||||||||||
March 31, | December 31, | September 30, | June 30, | March 31, | ||||||||||||
For quarter ended | 2015 | 2014 | 2014 | 2014 | 2014 | |||||||||||
Net income (loss) available to common stockholders | $ | 180 | $ | (142 | ) | $ | 283 | $ | 16,100 | $ | (677 | ) | ||||
Basic income (loss) per average outstanding share | 0.00 | (0.00 | ) | 0.00 | 0.26 | (0.16 | ) | |||||||||
Diluted income (loss) per average outstanding share | 0.00 | (0.00 | ) | 0.00 | 0.26 | (0.16 | ) | |||||||||
Return on average assets | 0.17 | % | -0.13 | % | 0.27 | % | 15.99 | % | -0.70 | % | ||||||
Return on average equity | 2.18 | % | -1.75 | % | 3.50 | % | 237.95 | % | -27.70 | % | ||||||
Yield on interest earning assets | 3.21 | % | 3.39 | % | 3.10 | % | 3.13 | % | 3.05 | % | ||||||
Cost of interest-bearing liabilities | 0.19 | % | 0.18 | % | 0.18 | % | 0.20 | % | 0.20 | % | ||||||
Net interest spread | 3.02 | % | 3.21 | % | 2.92 | % | 2.93 | % | 2.85 | % | ||||||
Net interest margin | 3.07 | % | 3.24 | % | 2.96 | % | 2.97 | % | 2.89 | % | ||||||
Net charged-off loans | $ | 488 | $ | 1,866 | $ | 163 | $ | 641 | $ | (81 | ) | |||||
Net charged-off loans to average loans (annualized) | 0.89 | % | 3.45 | % | 0.30 | % | 1.17 | % | -0.15 | % | ||||||
March 31, | December 31, | September 30, | June 30, | March 31, | ||||||||||||
2015 | 2014 | 2014 | 2014 | 2014 | ||||||||||||
Total stockholders' equity | $ | 33,112 | $ | 32,333 | $ | 32,060 | $ | 32,016 | $ | 9,336 | ||||||
Deferred tax asset | 25,188 | 25,566 | 26,709 | 26,539 | 26,442 | |||||||||||
Deferred tax asset valuation allowance | (25,183 | ) | (25,183 | ) | (26,070 | ) | (26,053 | ) | (25,573 | ) | ||||||
Book value per common share | $ | 0.38 | $ | 0.37 | $ | 0.37 | $ | 0.17 | $ | (1.84 | ) | |||||
Common shares outstanding | 87,604,088 | 87,604,088 | 87,604,088 | 87,604,088 | 4,270,755 | |||||||||||
March 31, | December 31, | September 30, | June 30, | March 31, | |||||||||||||
2015 | 2014 | 2014 | 2014 | 2014 | |||||||||||||
Nonperforming assets | |||||||||||||||||
Loans on nonaccrual status | $ | 9,715 | $ | 16,551 | $ | 23,576 | $ | 15,242 | $ | 19,555 | |||||||
Loans 90 days or more past due, still accruing | 298 | 1,048 | 610 | 283 | 566 | ||||||||||||
Loan troubled debt restructurings | 3,742 | 3,376 | 5,851 | 6,531 | 5,726 | ||||||||||||
Total nonperforming loans | 13,755 | 20,975 | 30,037 | 22,056 | 25,847 | ||||||||||||
Other real estate owned | 19,347 | 16,514 | 18,933 | 19,012 | 13,673 | ||||||||||||
Total nonperforming assets | $ | 33,102 | $ | 37,489 | $ | 48,970 | $ | 41,068 | $ | 39,520 | |||||||
Nonperforming assets excluding trouble debt restructurings | $ | 29,360 | $ | 34,113 | $ | 43,119 | $ | 34,537 | $ | 33,794 | |||||||
Nonperforming loans to total assets excluding trouble debt | 3.18 | % | 4.97 | % | 7.10 | % | 5.41 | % | 6.59 | % | |||||||
Nonperforming assets to total assets excluding trouble debt | 7.66 | % | 8.88 | % | 11.57 | % | 10.07 | % | 10.07 | % | |||||||
Nonperforming assets excluding trouble debt restructurings to total assets | 6.80 | % | 8.08 | % | 10.19 | % | 8.47 | % | 8.61 | % | |||||||
NORTHERN STATES FINANCIAL CORPORATION | ||||||||||||||||||
($000s, except per share data) (Unaudited) | ||||||||||||||||||
Condensed Consolidated Balance Sheets | March 31, | December 31, | September 30, | June 30, | March 31, | |||||||||||||
2015 | 2014 | 2014 | 2014 | 2014 | ||||||||||||||
Assets | ||||||||||||||||||
Cash and due from banks | $ | 5,258 | $ | 8,258 | $ | 4,272 | $ | 5,627 | $ | 6,692 | ||||||||
Interest bearing deposits in financial institutions - maturities less than 90 days | 63,768 | 26,727 | 40,908 | 33,162 | 50,363 | |||||||||||||
Total cash and cash equivalents | 69,026 | 34,985 | 45,180 | 38,789 | 57,055 | |||||||||||||
Interest bearing deposits in financial institutions - maturities of 90 days or greater | 7,739 | 8,483 | 9,971 | 8,483 | 8,483 | |||||||||||||
Securities available for sale | 101,659 | 121,368 | 117,447 | 116,363 | 91,217 | |||||||||||||
Securities held to maturity | 12,069 | 16,305 | 14,968 | 7,001 | 0 | |||||||||||||
Loans and leases, net of deferred fees | 217,270 | 219,049 | 213,031 | 215,307 | 219,059 | |||||||||||||
Less: Allowance for loan and lease losses | (6,153 | ) | (6,541 | ) | (8,407 | ) | (8,570 | ) | (9,211 | ) | ||||||||
Loans and leases, net | 211,117 | 212,508 | 204,624 | 206,737 | 209,848 | |||||||||||||
Federal Home Loan Bank stock | 931 | 931 | 931 | 931 | 931 | |||||||||||||
Office buildings and equipment, net | 7,851 | 7,957 | 8,041 | 8,021 | 8,158 | |||||||||||||
Other real estate owned | 19,347 | 16,514 | 18,933 | 19,012 | 13,673 | |||||||||||||
Accrued interest receivable | 1,144 | 1,158 | 1,196 | 1,147 | 1,051 | |||||||||||||
Other assets | 986 | 1,814 | 1,931 | 1,435 | 1,960 | |||||||||||||
Total assets | $ | 431,869 | $ | 422,023 | $ | 423,222 | $ | 407,919 | $ | 392,376 | ||||||||
Liabilities and Stockholders' Equity | ||||||||||||||||||
Liabilities | ||||||||||||||||||
Deposits | ||||||||||||||||||
Noninterest-bearing deposits | $ | 77,213 | $ | 79,378 | $ | 71,285 | $ | 71,318 | $ | 71,525 | ||||||||
Interest- bearing deposits | 287,406 | 277,352 | 286,520 | 273,608 | 275,834 | |||||||||||||
Total deposits | 364,619 | 356,730 | 357,805 | 344,926 | 347,359 | |||||||||||||
Securities sold under repurchase agreements | 18,231 | 18,447 | 20,100 | 16,601 | 14,929 | |||||||||||||
Subordinated debentures | 10,310 | 10,310 | 10,310 | 10,310 | 10,310 | |||||||||||||
Advances from borrowers for taxes and insurance | 2,639 | 1,485 | 445 | 1,328 | 1,970 | |||||||||||||
Accrued interest payable and other liabilities | 2,958 | 2,718 | 2,502 | 2,738 | 8,472 | |||||||||||||
Total liabilities | 398,757 | 389,690 | 391,162 | 375,903 | 383,040 | |||||||||||||
Stockholders' Equity | ||||||||||||||||||
Common stock | 878 | 878 | 878 | 878 | 1,789 | |||||||||||||
Preferred stock | 0 | 0 | 0 | 0 | 17,211 | |||||||||||||
Warrants | 0 | 0 | 0 | 0 | 681 | |||||||||||||
Additional paid-in capital | 32,088 | 32,088 | 32,088 | 32,088 | 7,326 | |||||||||||||
(Accumulated deficit) retained earnings | 4,751 | 4,571 | 4,713 | 4,430 | (11,670 | ) | ||||||||||||
Treasury stock, at cost | (4,674 | ) | (4,674 | ) | (4,674 | ) | (4,674 | ) | (4,674 | ) | ||||||||
Accumulated other comprehensive income, net | 69 | (530 | ) | (945 | ) | (706 | ) | (1,327 | ) | |||||||||
Total stockholders' equity | 33,112 | 32,333 | 32,060 | 32,016 | 9,336 | |||||||||||||
Total liabilities and stockholders' equity | $ | 431,869 | $ | 422,023 | $ | 423,222 | $ | 407,919 | $ | 392,376 | ||||||||
Common shares outstanding | 87,604,088 | 87,604,088 | 87,604,088 | 87,604,088 | 4,270,755 | |||||||||||||
Book value per common share | $ | 0.38 | $ | 0.37 | $ | 0.37 | $ | 0.17 | $ | (1.84 | ) | |||||||
NORTHERN STATES FINANCIAL CORPORATION | |||||||||||||||||||
($000s, except per share data) (Unaudited) | |||||||||||||||||||
Condensed Consolidated Statements of Operations | |||||||||||||||||||
For quarter ended | March 31, | December 31, | September 30, | June 30, | March 31, | ||||||||||||||
2015 | 2014 | 2014 | 2014 | 2014 | |||||||||||||||
Interest income | |||||||||||||||||||
Loans (including fee income) | $ | 2,484 | $ | 2,625 | $ | 2,319 | $ | 2,427 | $ | 2,484 | |||||||||
Securities | |||||||||||||||||||
Taxable | 678 | 683 | 619 | 488 | 260 | ||||||||||||||
Exempt from federal income tax | 4 | 6 | 5 | 6 | 11 | ||||||||||||||
Federal funds sold and other | 36 | 40 | 36 | 44 | 38 | ||||||||||||||
Total interest income | 3,202 | 3,354 | 2,979 | 2,965 | 2,793 | ||||||||||||||
Interest expense | |||||||||||||||||||
Time deposits | 71 | 66 | 63 | 66 | 67 | ||||||||||||||
Other deposits | 22 | 24 | 23 | 21 | 23 | ||||||||||||||
Repurchase agreements and federal funds purchased | 1 | 1 | 0 | 1 | 0 | ||||||||||||||
Subordinated debentures | 53 | 54 | 54 | 58 | 59 | ||||||||||||||
Total interest expense | 147 | 145 | 140 | 146 | 149 | ||||||||||||||
Net interest income | 3,055 | 3,209 | 2,839 | 2,819 | 2,644 | ||||||||||||||
Provision for loan and lease losses | 100 | 0 | 0 | 0 | 0 | ||||||||||||||
Net interest income after provision for loan and lease losses | 2,955 |
3,209 |
2,839 |
2,819 |
2,644 |
||||||||||||||
Noninterest income | |||||||||||||||||||
Service fees on deposits | 321 | 377 | 408 | 403 | 387 | ||||||||||||||
Gain on sale of securities | 122 | 16 | 0 | 0 | 78 | ||||||||||||||
Net gain (loss) on sale of other real estate owned | 0 | (440 | ) | 4 | 373 | 12 | |||||||||||||
Other operating income | 385 | 400 | 438 | 434 | 385 | ||||||||||||||
Total noninterest income | 828 | 353 | 850 | 1,210 | 862 | ||||||||||||||
Noninterest expense | |||||||||||||||||||
Salaries and employee benefits | 1,703 | 1,726 | 1,566 | 1,495 | 1,439 | ||||||||||||||
Occupancy and equipment, net | 597 | 492 | 537 | 477 | 639 | ||||||||||||||
Data processing | 330 | 679 | 528 | 451 | 478 | ||||||||||||||
Legal | 93 | 74 | 49 | 42 | 138 | ||||||||||||||
FDIC insurance | 141 | 135 | 131 | 205 | 222 | ||||||||||||||
Audit and other professional | 134 | 94 | 126 | 97 | 129 | ||||||||||||||
Printing and supplies expense | 60 | 49 | 40 | 43 | 33 | ||||||||||||||
Write-down of other real estate owned | 0 | 26 | 82 | 158 | (7 | ) | |||||||||||||
Other real estate owned expense | 170 | 27 | 117 | 181 | 307 | ||||||||||||||
Other operating expenses | 375 | 402 | 230 | 513 | 426 | ||||||||||||||
Total noninterest expense | 3,603 | 3,704 | 3,406 | 3,662 | 3,804 | ||||||||||||||
Net income (loss) before income taxes | 180 | (142 | ) | 283 | 367 | (298 | ) | ||||||||||||
Income tax expense | 0 | 0 | 0 | 0 | 0 | ||||||||||||||
Net income (loss) | 180 | (142 | ) | 283 | 367 | (298 | ) | ||||||||||||
Discount on redemption of preferred stock | 0 | 0 | 0 | (15,883 | ) | 0 | |||||||||||||
Dividends to preferred stockholders | 0 | 0 | 0 | 150 | 366 | ||||||||||||||
Accretion of discount on preferred stock | 0 | 0 | 0 | 0 | 13 | ||||||||||||||
Net income (loss) available to common stockholders | $ | 180 | $ | (142 | ) | $ | 283 | $ | 16,100 | $ | (677 | ) | |||||||
Average common shares outstanding | 87,604,088 | 87,604,088 | 87,604,088 | 61,047,312 | 4,270,755 | ||||||||||||||
Basic income (loss) per average outstanding share | $ | 0.00 | $ | (0.00 | ) | $ | 0.00 | $ | 0.26 | $ | (0.16 | ) | |||||||
Diluted income (loss) per average outstanding share | $ | 0.00 | $ | (0.00 | ) | $ | 0.00 | $ | 0.26 | $ | (0.16 | ) | |||||||
NORTHERN STATES FINANCIAL CORPORATION | ||||||||||||||||||
($000s, except per share data) (Unaudited) | ||||||||||||||||||
March 31, | December 31, | September 30, | June 30, | March 31, | ||||||||||||||
2015 | 2014 | 2014 | 2014 | 2014 | ||||||||||||||
Loans | ||||||||||||||||||
Commercial | $ | 10,522 | $ | 14,239 | $ | 12,355 | $ | 13,127 | $ | 13,301 | ||||||||
Real estate-construction | 11,636 | 11,600 | 12,300 | 12,333 | 18,737 | |||||||||||||
Real estate-mortgage 1-4 family | 30,285 | 30,546 | 30,322 | 30,381 | 29,421 | |||||||||||||
Real estate-mortgage 5+ family | 36,569 | 32,968 | 30,592 | 30,769 | 27,341 | |||||||||||||
Real estate-mortgage commercial | 118,589 | 119,669 | 116,933 | 117,621 | 118,062 | |||||||||||||
Home equity | 8,859 | 9,131 | 9,327 | 10,031 | 11,256 | |||||||||||||
Installment | 1,021 | 1,069 | 1,380 | 1,230 | 1,111 | |||||||||||||
Deferred loan fees | (211 | ) | (173 | ) | (178 | ) | (185 | ) | (170 | ) | ||||||||
Total loans | $ | 217,270 | $ | 219,049 | $ | 213,031 | $ | 215,307 | $ | 219,059 | ||||||||
March 31, | December 31, | September 30, | June 30, | March 31, | ||||||||||||||
2015 | 2014 | 2014 | 2014 | 2014 | ||||||||||||||
Deposits | ||||||||||||||||||
Demand - noninterest bearing | $ | 77,213 | $ | 79,378 | $ | 71,285 | $ | 71,318 | $ | 71,525 | ||||||||
Demand - interest bearing | 57,158 | 61,313 | 66,673 | 62,287 | 62,100 | |||||||||||||
Money market accounts | 49,453 | 51,046 | 52,935 | 51,220 | 49,687 | |||||||||||||
Savings | 80,654 | 77,789 | 77,651 | 77,092 | 78,229 | |||||||||||||
Time, $100,000 and over | 49,655 | 37,483 | 38,517 | 31,202 | 32,627 | |||||||||||||
Time, under $100,000 | 48,236 | 49,471 | 50,494 | 51,807 | 53,191 | |||||||||||||
Time, brokered | 2,250 | 250 | 250 | 0 | 0 | |||||||||||||
Total deposits | $ | 364,619 | $ | 356,730 | $ | 357,805 | $ | 344,926 | $ | 347,359 | ||||||||
NORTHERN STATES FINANCIAL CORPORATION | ||||||||||
($000s, except per share data) (Unaudited) | ||||||||||
1Q 2015 | 4Q 2014 | 31Q 2014 | 2Q 2014 | 1Q 2014 | |||||||||||||||||||||||||||
Average | Yield/ | Average | Yield/ | Average | Yield/ | Average | Yield/ | Average | Yield/ | ||||||||||||||||||||||
balance | Rate | balance | Rate | balance | Rate | balance | Rate | balance | Rate | ||||||||||||||||||||||
Earning assets | |||||||||||||||||||||||||||||||
Loans | $ | 219,900 | 4.54 | % | $ | 216,345 | 4.88 | % | $ | 214,261 | 4.36 | % | $ | 218,419 | 4.47 | % | $ | 221,047 | 4.53 | % | |||||||||||
Securities taxable | 129,337 | 2.10 | 138,741 | 1.96 | 128,029 | 1.92 | 108,473 | 1.77 | 91,929 | 1.10 | |||||||||||||||||||||
Securities tax-exempt | 437 | 6.41 | 575 | 6.30 | 561 | 5.68 | 560 | 6.36 | 1,096 | 6.32 | |||||||||||||||||||||
Interest-bearing deposits | 50,803 | 0.28 | 42,000 | 0.38 | 42,558 | 0.34 | 52,801 | 0.33 | 52,685 | 0.29 | |||||||||||||||||||||
Total earning assets | 400,477 | 3.21 | % | 397,661 | 3.39 | % | 385,409 | 3.10 | % | 380,253 | 3.13 | % | 366,757 | 3.05 | % | ||||||||||||||||
Non interest earning assets | 28,670 | 29,935 | 27,115 | 22,543 | 22,819 | ||||||||||||||||||||||||||
Total assets | $ | 429,147 | $ | 427,596 | $ | 412,524 | $ | 402,796 | $ | 389,576 | |||||||||||||||||||||
Interest-bearing liabilities | |||||||||||||||||||||||||||||||
Interest-bearing demand deposits | $ | 58,445 | 0.10 | % | $ | 67,480 | 0.09 | % | $ | 63,434 | 0.09 | % | $ | 62,418 | 0.08 | % | $ | 61,732 | 0.10 | % | |||||||||||
Money market deposits | 50,104 | 0.05 | 51,977 | 0.05 | 52,223 | 0.05 | 49,747 | 0.05 | 50,313 | 0.05 | |||||||||||||||||||||
Savings deposits | 78,445 | 0.01 | 77,339 | 0.10 | 77,733 | 0.01 | 77,795 | 0.01 | 75,817 | 0.01 | |||||||||||||||||||||
Time deposits | 94,548 | 0.30 | 87,923 | 0.30 | 81,835 | 0.31 | 84,621 | 0.31 | 86,465 | 0.31 | |||||||||||||||||||||
Other borrowings | 30,660 | 0.70 | 30,328 | 0.73 | 27,780 | 0.78 | 24,865 | 0.95 | 25,499 | 0.93 | |||||||||||||||||||||
Total interest-bearing liabilities | 312,202 | 0.19 | % | 315,047 | 0.18 | % | 303,005 | 0.18 | % | 299,446 | 0.20 | % | 299,826 | 0.20 | % | ||||||||||||||||
Demand deposits | 76,962 | 76,528 | 73,580 | 70,776 | 70,132 | ||||||||||||||||||||||||||
Other liabilities | 4,950 | 3,567 | 3,619 | 5,509 | 9,841 | ||||||||||||||||||||||||||
Stockholders' equity | 33,033 | 32,454 | 32,320 | 27,065 | 9,777 | ||||||||||||||||||||||||||
Total liabilities and stockholders' equity | $ | 427,147 | $ | 427,596 | $ | 412,524 | $ | 402,796 | $ | 389,576 | |||||||||||||||||||||
Net interest spread | 3.02 | % | 3.21 | % | 2.92 | % | 2.93 | % | 2.85 | % | |||||||||||||||||||||
Net interest margin | 3.07 | % | 3.24 | % | 2.96 | % | 2.97 | % | 2.89 | % | |||||||||||||||||||||
Contact Information:
For Additional Information, Contact:
Scott Yelvington
President and Chief Executive Officer
(847) 244-6000 Ext. 201
Websites: www.nsfc.com
www.nsfc.net