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
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