Northern States Financial Corporation Reports Third Quarter 2015 Net Income of $514,000
/EINPresswire.com/ -- WAUKEGAN, IL -- (Marketwired) -- 10/21/15 -- Northern States Financial Corporation (OTCQB: NSFC) (the "Company"), holding company for NorStates Bank (the "Bank"), an FDIC insured financial institution, today reported third quarter 2015 net income of $514,000, an increase from $392,000 for the second quarter of 2015 and $180,000 for the first quarter of 2015. The Company's per share book value at September 30, 2015 was $0.39.
The Bank reported earnings of $604,000 for the third quarter of 2015.
Assets of the Company totaled $462.0 million at September 30, 2015, an increase of 9.4% from December 31, 2014. The Company increased its loans and leases, net of deferred fees by $2.9 million and total interest bearing deposits in financial institutions increased by $12.1 million between June 30, 2015 and September 30, 2015, while total investment securities decreased by $5.8 million between the two dates due to bond calls. Total deposits increased from $381.4 million at June 30, 2015 to $394.3 million at September 30, 2015.
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, decreased by $8.7 million between December 31, 2014 and September 30, 2015.
"We are pleased to report steady solid growth in earnings and continued progress in the reduction of NPAs," stated Scott Yelvington, President and Chief Executive Officer of the Company. "During the third quarter, we sold one of our branch buildings at a gain of $1.4 million which is being replaced by a new smaller, more efficient building that the Bank will lease. The gain was largely offset by write-downs to other real estate owned of $1.3 million as we prepare to sell these properties to further reduce NPAs. Our focus will remain on the reduction of NPAs and the further increase in profitability through loan generation and short-term investments while reducing expenses."
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 For quarter September June 30, March 31, December September ended 30, 2015 2015 2015 31, 2014 30, 2014 ----------- ----------- ----------- ----------- ----------- Net income (loss) available to common stockholders $ 514 $ 392 $ 180 $ (142) $ 283 Basic income (loss) per average outstanding share 0.01 0.00 0.00 (0.00) 0.00 Diluted income (loss) per average outstanding share 0.01 0.00 0.00 (0.00) 0.00 Return on average assets 0.45% 0.36% 0.17% -0.13% 0.27% Return on average equity 6.13% 4.73% 2.18% -1.75% 3.50% Yield on interest earning assets 3.13% 3.13% 3.21% 3.39% 3.10% Cost of interest- bearing liabilities 0.20% 0.19% 0.19% 0.18% 0.18% Net interest spread 2.93% 2.94% 3.02% 3.21% 2.92% Net interest margin 2.97% 2.98% 3.07% 3.24% 2.96% Net charged-off loans $ 803 $ (1,681)$ 488 $ 1,866 $ 163 Net charged-off loans to average loans (annualized) 1.38% -2.99% 0.89% 3.45% 0.30% September June 30, March 31, December September 30, 2015 2015 2015 31, 2014 30, 2014 ----------- ----------- ----------- ----------- ----------- Total stockholders' equity $ 34,135 $ 33,214 $ 33,112 $ 32,333 $ 32,060 Deferred tax asset 25,103 25,339 25,188 25,566 26,709 Deferred tax asset valuation allowance (25,183) (25,183) (25,183) (25,183) (26,070) Book value per common share $ 0.39 $ 0.38 $ 0.38 $ 0.37 $ 0.37 Common shares outstanding 87,604,088 87,604,088 87,604,088 87,604,088 87,604,088 September June 30, March 31, December September 30, 2015 2015 2015 31, 2014 30, 2014 ----------- ----------- ----------- ----------- ----------- Nonperforming assets Loans on nonaccrual status $ 8,986 $ 10,820 $ 9,715 $ 16,551 $ 23,576 Loans 90 days or more past due, still accruing 266 198 298 1,048 610 Loan troubled debt restructurings 2,380 2,400 3,742 3,376 5,851 ----------- ----------- ----------- ----------- ----------- Total nonperforming loans 11,632 13,418 13,755 20,975 30,037 Other real estate owned 17,172 17,416 19,347 16,514 18,933 ----------- ----------- ----------- ----------- ----------- Total nonperforming assets $ 28,804 $ 30,834 $ 33,102 $ 37,489 $ 48,970 =========== =========== =========== =========== =========== Nonperforming assets excluding trouble debt restructurings $ 26,424 $ 28,434 $ 29,360 $ 34,113 $ 43,119 Nonperforming loans to total assets 2.52% 3.02% 3.18% 4.97% 7.10% Nonperforming assets to total assets 6.23% 6.94% 7.66% 8.88% 11.57% Nonperforming assets excluding trouble debt restructurings to total assets 5.72% 6.40% 6.80% 8.08% 10.19% NORTHERN STATES FINANCIAL CORPORATION ($000s, except per share data) (Unaudited) Condensed Consolidated Balance Sheets September June 30, March 31, December September 30, 2015 2015 2015 31, 2014 30, 2014 ----------- ----------- ----------- ----------- ----------- Assets Cash and due from banks $ 8,092 $ 4,817 $ 5,258 $ 8,258 $ 4,272 Interest bearing deposits in financial institutions - maturities less than 90 days 63,044 60,455 63,768 26,727 40,908 ----------- ----------- ----------- ----------- ----------- Total cash and cash equivalents 71,136 65,272 69,026 34,985 45,180 Interest bearing deposits in financial institutions - maturities of 90 days or greater 16,057 6,499 7,739 8,483 9,971 Securities available for sale 106,593 112,353 101,659 121,368 117,447 Securities held to maturity 10,771 10,838 12,069 16,305 14,968 Loans and leases, net of deferred fees 232,847 229,932 217,270 219,049 213,031 Less: Allowance for loan and lease losses (7,032) (7,834) (6,153) (6,541) (8,407) ----------- ----------- ----------- ----------- ----------- Loans and leases, net 225,815 222,098 211,117 212,508 204,624 Federal Home Loan Bank stock 931 931 931 931 931 Office buildings and equipment, net 6,373 6,845 7,851 7,957 8,041 Other real estate owned 17,173 17,416 19,347 16,514 18,933 Accrued interest receivable 1,211 1,217 1,144 1,158 1,196 Other assets 5,956 1,035 986 1,814 1,931 ----------- ----------- ----------- ----------- ----------- Total assets $ 462,016 $ 444,504 $ 431,869 $ 422,023 $ 423,222 =========== =========== =========== =========== =========== Liabilities and Stockholders' Equity Liabilities Deposits Noninterest- bearing deposits $ 84,823 $ 81,795 $ 77,213 $ 79,378 $ 71,285 Interest- bearing deposits 309,432 299,564 287,406 277,352 286,520 ----------- ----------- ----------- ----------- ----------- Total deposits 394,255 381,359 364,619 356,730 357,805 Securities sold under repurchase agreements 19,618 14,836 18,231 18,447 20,100 Subordinated debentures 10,310 10,310 10,310 10,310 10,310 Advances from borrowers for taxes and insurance 776 1,904 2,639 1,485 445 Accrued interest payable and other liabilities 2,922 2,881 2,958 2,718 2,502 ----------- ----------- ----------- ----------- ----------- Total liabilities 427,881 411,290 398,757 389,690 391,162 Stockholders' Equity Common stock 878 878 878 878 878 Additional paid- in capital 32,088 32,088 32,088 32,088 32,088 Retained earnings 5,657 5,143 4,751 4,571 4,713 Treasury stock, at cost (4,674) (4,674) (4,674) (4,674) (4,674) Accumulated other comprehensive income (loss), net 186 (221) 69 (530) (945) ----------- ----------- ----------- ----------- ----------- Total stockholders' equity 34,135 33,214 33,112 32,333 32,060 ----------- ----------- ----------- ----------- ----------- Total liabilities and stockholders' equity $ 462,016 $ 444,504 $ 431,869 $ 422,023 $ 423,222 =========== =========== =========== =========== =========== Common shares outstanding 87,604,088 87,604,088 87,604,088 87,604,088 87,604,088 Book value per common share $ 0.39 $ 0.38 $ 0.38 $ 0.37 $ 0.37 NORTHERN STATES FINANCIAL CORPORATION ($000s, except per share data) (Unaudited) Condensed Consolidated Statements of Operations For quarter September June 30, March 31, December September ended 30, 2015 2015 2015 31, 2014 30,2014 ----------- ----------- ----------- ----------- ----------- Interest income Loans (including fee income) $ 2,747 $ 2,646 $ 2,484 $ 2,625 $ 2,319 Securities Taxable 544 514 678 683 619 Exempt from federal income tax 4 5 4 6 5 Federal funds sold and other 52 54 36 40 36 ----------- ----------- ----------- ----------- ----------- Total interest income 3,347 3,219 3,202 3,354 2,979 ----------- ----------- ----------- ----------- ----------- Interest expense Time deposits 82 79 71 66 63 Other deposits 24 21 22 24 23 Repurchase agreements and federal funds purchased 0 0 1 1 0 Subordinated debentures 57 55 53 54 54 ----------- ----------- ----------- ----------- ----------- Total interest expense 163 155 147 145 140 ----------- ----------- ----------- ----------- ----------- Net interest income 3,184 3,064 3,055 3,209 2,839 Provision for loan and lease losses 0 0 100 0 0 ----------- ----------- ----------- ----------- ----------- Net interest income after provision for loan and lease losses 3,184 3,064 2,955 3,209 2,839 ----------- ----------- ----------- ----------- ----------- Noninterest income Service fees on deposits 316 324 321 377 408 Gain on sale of securities 0 48 122 16 0 Net gain (loss) on sale of other assets 1,423 (10) 0 0 0 Net gain (loss) on sale of other real estate owned 0 209 0 (440) 4 Other operating income 442 413 385 400 438 ----------- ----------- ----------- ----------- ----------- Total noninterest income 2,181 984 828 353 850 ----------- ----------- ----------- ----------- ----------- Noninterest expense Salaries and employee benefits 1,712 1,724 1,703 1,726 1,566 Occupancy and equipment, net 527 561 597 492 537 Data processing 501 376 330 679 528 Legal 51 117 93 74 49 FDIC insurance 96 136 141 135 131 Audit and other professional 143 162 134 94 126 Printing and supplies expense 42 63 60 49 40 Write-down of other real estate owned 1,264 0 0 26 82 Other real estate owned expense 136 88 170 27 117 Other operating expenses 329 414 375 402 230 ----------- ----------- ----------- ----------- ----------- Total noninterest expense 4,801 3,641 3,603 3,704 3,406 ----------- ----------- ----------- ----------- ----------- Net income (loss) before income taxes 564 407 180 (142) 283 Income tax expense 50 15 0 0 0 ----------- ----------- ----------- ----------- ----------- Net income (loss) 514 392 180 (142) 283 ----------- ----------- ----------- ----------- ----------- Discount on redemption of preferred stock 0 0 0 0 0 Dividends to preferred stockholders 0 0 0 0 0 Accretion of discount on preferred stock 0 0 0 0 0 ----------- ----------- ----------- ----------- ----------- Net income (loss) available to common stockholders $ 514 $ 392 $ 180 $ (142) $ 283 =========== =========== =========== =========== =========== Average common shares outstanding 87,604,088 87,604,088 87,604,088 87,604,088 87,604,088 NORTHERN STATES FINANCIAL CORPORATION ($000s, except per share data) (Unaudited) September June 30, March 31, December September 30, 2015 2015 2015 31, 2014 30, 2014 --------- --------- --------- --------- --------- Loans Commercial $ 14,019 $ 13,687 $ 10,522 $ 14,239 $ 12,355 Real estate- construction 15,127 14,300 11,636 11,600 12,300 Real estate-mortgage 1-4 family 27,977 29,379 30,285 30,546 30,322 Real estate-mortgage 5+ family 38,971 39,577 36,569 32,968 30,592 Real estate-mortgage commercial 126,375 123,176 118,589 119,669 116,933 Home equity 9,526 9,089 8,859 9,131 9,327 Installment 1,041 943 1,021 1,069 1,380 Deferred loan fees (189) (219) (211) (173) (178) --------- --------- --------- --------- --------- Total loans $ 232,847 $ 229,932 $ 217,270 $ 219,049 $ 213,031 ========= ========= ========= ========= ========= September June 30 March 31 December September 30, 2015 2015 2015 31, 2014 30, 2014 --------- --------- --------- --------- --------- Deposits Demand - noninterest bearing $ 84,823 $ 81,795 $ 77,213 $ 79,378 $ 71,285 Demand - interest bearing 72,612 65,853 57,158 61,313 66,673 Money market accounts 54,077 53,131 49,453 51,046 52,935 Savings 83,153 80,884 80,654 77,789 77,651 Time, $100,000 and over 52,744 49,223 49,655 37,483 38,517 Time, under $100,000 45,846 47,223 48,236 49,471 50,494 Time, brokered 1,000 3,250 2,250 250 250 --------- --------- --------- --------- --------- Total deposits $ 394,255 $ 381,359 $ 364,619 $ 356,730 $ 357,805 ========= ========= ========= ========= ========= NORTHERN STATES FINANCIAL CORPORATION ($000s, except per share data) (Unaudited) 3Q 2015 2Q 2015 1Q 2015 ---------------- ---------------- ---------------- Average Yield/ Average Yield/ Average Yield/ balance Rate balance Rate balance Rate -------- ------- -------- ------- -------- ------- Earning assets Loans $232,003 4.76% $224,996 4.73% $219,900 4.54% Securities taxable 124,301 1.75 119,487 1.72 129,337 2.10 Securities tax-exempt 436 6.42 435 5.52 437 6.41 Interest-bearing deposits 73,330 0.28 68,449 0.32 50,803 0.28 -------- -------- -------- Total earning assets 430,070 3.13% 413,367 3.13% 400,477 3.21% Non interest earning assets 26,427 26,460 26,670 -------- -------- -------- Total assets $456,497 $439,827 $427,147 ======== ======== ======== Interest-bearing liabilities Interest-bearing demand deposits $ 68,681 0.09% $ 61,325 0.08% $ 58,445 0.10% Money market deposits 52,291 0.05 50,062 0.05 50,104 0.05 Savings deposits 82,482 0.01 81,353 0.01 78,445 0.01 Time deposits 101,783 0.32 99,736 0.32 94,548 0.30 Other borrowings 28,085 0.81 25,492 0.86 30,660 0.70 -------- -------- -------- Total interest- bearing liabilities 333,322 0.20% 317,968 0.19% 312,202 0.19% Demand deposits 85,324 83,126 76,962 Other liabilities 4,308 5,610 4,950 Stockholders' equity 33,543 33,123 33,033 -------- -------- -------- Total liabilities and stockholders' equity $456,497 $439,827 $427,147 ======== ======== ======== Net interest spread 2.93% 2.94% 3.02% Net interest margin 2.97% 2.98% 3.07% 4Q 2014 3Q 2014 ---------------- ---------------- Average Yield/ Average Yield/ balance Rate balance Rate -------- ------- -------- ------- Earning assets Loans $216,345 4.88% $214,261 4.36% Securities taxable 138,741 1.96 128,029 1.92 Securities tax-exempt 575 6.30 561 5.68 Interest-bearing deposits 42,000 0.38 42,558 0.34 -------- -------- Total earning assets 397,661 3.39% 385,409 3.10% Non interest earning assets 29,935 27,115 -------- -------- Total assets $427,596 $412,524 ======== ======== Interest-bearing liabilities Interest-bearing demand deposits $ 67,480 0.09% $ 63,434 0.09% Money market deposits 51,977 0.05 52,223 0.05 Savings deposits 77,339 0.10 77,733 0.01 Time deposits 87,923 0.30 81,835 0.31 Other borrowings 30,328 0.73 27,780 0.78 -------- -------- Total interest- bearing liabilities 315,047 0.18% 303,005 0.18% Demand deposits 76,528 73,580 Other liabilities 3,567 3,619 Stockholders' equity 32,454 32,320 -------- -------- Total liabilities and stockholders' equity $427,596 $412,524 ======== ======== Net interest spread 3.21% 2.92% Net interest margin 3.24% 2.96%
For Additional Information, Contact:
Scott Yelvington
President and Chief Executive Officer
(847) 662-9828
Websites: www.nsfc.com, www.nsfc.net