WAUKEGAN, IL--(Marketwired - Apr 30, 2014) - Northern States Financial Corporation (the "Company") (
Mr. Yelvington further stated, "Attracting professional investors from around the country to invest in our bank is a testament to, and validation of, the community bank model. We are thankful for the support of our loyal customers and the tremendous effort of our dedicated staff during the last few difficult years. Our intention is to reinvest this new capital into the financial needs of all the communities we serve. Our Board and managment team is committed to the continued financial recovery of our market area."
As part of the recapitalization transaction, the Company exchanged shares of common stock with an aggregate value of approximately $6.0 million for all of the Company's formerly outstanding preferred stock held by the United States Department of the Treasury (the "U.S. Treasury") and the associated accumulated but unpaid dividends thereon. Immediately following the preferred stock exchange, the U.S. Treasury sold its shares of Company common stock to certain institutional investors that participated in the private placement.
The Company's common stock was offered and sold for a per share price of $0.30 in a private transaction exempt from registration under the Securities Act of 1933, as amended, and may not be reoffered or resold in the United States absent registration or an applicable exemption from registration.
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.
Cautionary Statement: This release may contain certain forward- looking statements that are subject to risks and uncertainties that could cause actual results or events to differ materially from those stated within. Words such as "anticipate", "believe", "estimate", "expect", "should", "intend", "project", and words of similar meaning are intended to identify forward- looking statements. Management's assumptions and projections are based on its anticipation of future events, and actual performance may differ materially that projection.
Contact Information:
For Additional Information Contact:
Scott Yelvington
President
(847) 244-6000 Ext. 201
Website: www.norstatesbank.com