Northern States Financial Corporation Reports First Quarter Earnings

WAUKEGAN, Ill., May 10, 2016 (GLOBE NEWSWIRE) -- Northern States Financial Corporation (OTCQB:NSFC) (the “Company”), holding company for NorStates Bank (the “Bank”), an FDIC insured financial institution, today reported first quarter 2016 pretax income of $534 thousand as compared with pretax income of $180 thousand for the same quarter of 2015. First quarter 2016 net income after tax was $321 thousand while first quarter 2015 net income after tax remained $180 thousand due to the Company’s tax position during that quarter. The Company’s per share book value at March 31, 2016 was $0.64.

Total assets of the Company were $488 million at March 31, 2016, increasing $2 million from year-end 2015. Loan volume increased $17 million, or 7.25%, during the first quarter of 2016 while deposits increased $3 million. The Bank’s first quarter 2016 net interest margin was 3.03% with a cost of funds of 0.12%. The Bank’s leverage capital ratio was 10.98%.

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 (“OREO”), were reduced by $1.4 million from December 31, 2015 to March 31, 2016. OREO increased slightly during the quarter primarily due to a multifamily property that was foreclosed upon. This property currently has a sales contract that is expected to close during the second quarter of 2016. All other categories of NPAs at March 31, 2016 showed reductions totaling $1.9 million from year-end 2015. At March 31, 2016, the allowance for loan and lease losses to total loans and leases ratio was 2.20%.

“We are pleased with our growth in assets and profitability as loan generation remains strong,” stated Scott Yelvington, President and Chief Executive Officer. “Credit quality remains a focus as we look to continue the reduction in NPA’s in coming quarters.”

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.

Websites: www.nsfc.com www.nsfc.net


NORTHERN STATES FINANCIAL CORPORATION
($000s, except per share data) (Unaudited)
Key Performance Data

	March 31,			December 31,			September 30,			June 30,			March 31,
For the quarter ended		2016			2015			2015			2015			2015

Net income available to common stockholders	$	321		$	22,043		$	514		$	392		$	180
Basic income per average outstanding share		0.00			0.25			0.01			0.00			0.00
Diluted income per average outstanding share		0.00			0.25			0.01			0.00			0.00
Return on average assets		0.26	%		18.89	%		0.45	%		0.36	%		0.17	%
Return on average equity		2.28	%		253.24	%		6.13	%		4.73	%		2.18	%
Yield on interest earning assets		3.11	%		3.30	%		3.13	%		3.13	%		3.21	%
Cost of interest-bearing liabilities		0.19	%		0.19	%		0.20	%		0.19	%		0.19	%
Net interest spread		2.92	%		3.11	%		2.93	%		2.94	%		3.02	%
Net interest margin		2.96	%		3.15	%		2.97	%		2.98	%		3.07	%
Net charged-off loans	$	418		$	231		$	803		$	(1,681	)	$	488
Net charged-off loans to average loans (annualized)		0.70	%		0.40	%		1.38	%		(2.99	)%		0.89	%


	March 31,			December 31,			September 30,			June 30,			March 31,
		2016			2015			2015			2015			2015

Total stockholders' equity	$	56,431		$	55,673		$	34,135		$	33,214		$	33,112
Book value per common share	$	0.64		$	0.64		$	0.39		$	0.38		$	0.38
Common shares outstanding		87,604,088			87,604,088			87,604,088			87,604,088			87,604,088


	March 31,			December 31,			September 30,			June 30,			March 31,
		2016			2015			2015			2015			2015
Nonperforming assets
Loans on nonaccrual status	$	4,504		$	5,469		$	8,986		$	10,820		$	9,715
Loans 90 days or more past due, still accruing		700			787			266			198			298
Loan troubled debt restructurings		5,477			6,312			2,380			2,400			3,742
Total nonperforming loans		10,681			12,568			11,632			13,418			13,755
Other real estate owned		13,100			12,579			17,173			17,416			19,347
Total nonperforming assets	$	23,781		$	25,147		$	28,805		$	30,834		$	33,102

Nonperforming assets excluding trouble debt restructurings	$	18,304		$	18,835		$	26,425		$	28,434		$	29,360
Nonperforming loans to total assets		2.19	%		2.59	%		2.52	%		3.02	%		3.18	%
Nonperforming assets to total assets		4.88	%		5.18	%		6.23	%		6.94	%		7.66	%
Nonperforming assets excluding trouble debt restructurings to total assets		3.75	%		3.88	%		5.72	%		6.40	%		6.80	%


NORTHERN STATES FINANCIAL CORPORATION
($000s, except per share data) (Unaudited)
Condensed Consolidated Balance Sheet	March 31,			December 31,			September 30,			June 30,			March 31,
		2016			2015			2015			2015			2015
Assets
Cash and due from banks	$	5,539		$	5,834		$	8,092		$	4,817		$	5,258
Interest bearing deposits in financial institutions - maturities less than 90 days		53,004			55,380			63,044			60,455			63,768
Total cash and cash equivalents		58,543			61,214			71,136			65,272			69,026
Interest bearing deposits in financial institutions - maturities of 90 days or greater		31,377			33,786			16,057			6,499			7,739
Securities available for sale		78,416			97,788			106,593			112,353			101,659
Securities held to maturity		13,496			10,564			10,771			10,838			12,069
Loans and leases, net of deferred fees		254,545			237,327			232,847			229,932			217,270
Less: Allowance for loan and lease losses		(5,593	)		(6,011	)		(7,032	)		(7,834	)		(6,153	)
Loans and leases, net		248,952			231,316			225,815			222,098			211,117
Federal Home Loan Bank stock		931			931			931			931			931
Office buildings and equipment, net		8,415			7,776			6,373			6,845			7,851
Other real estate owned		13,100			12,579			17,173			17,416			19,347
Accrued interest receivable		1,243			1,275			1,211			1,217			1,144
Bank owned life insurance		10,358			5,054			5,014			0			0
Deferred tax asset, net		22,112			21,869			(80	)		156			5
Other assets		746			1,195			1,022			879			981
Total assets	$	487,689		$	485,347		$	462,016		$	444,504		$	431,869
Liabilities and Stockholders' Equity
Liabilities
Deposits
Noninterest-bearing deposits	$	96,829		$	93,913		$	84,823		$	81,795		$	77,213
Interest-bearing deposits		301,926			301,509			309,432			299,564			287,406
Total deposits		398,755			395,422			394,255			381,359			364,619
Securities sold under repurchase agreements		16,052			18,994			19,618			14,836			18,231
Subordinated debentures		10,310			10,310			10,310			10,310			10,310
Advances from borrowers for taxes and insurance		3,089			2,195			776			1,904			2,639
Accrued interest payable and other liabilities		3,052			2,753			2,922			2,881			2,958
Total liabilities		431,258			429,674			427,881			411,290			398,757
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		28,021			27,700			5,657			5,143			4,751
Treasury stock, at cost		(4,674	)		(4,674	)		(4,674	)		(4,674	)		(4,674	)
Accumulated other comprehensive income (loss), net		118			(319	)		186			(221	)		69
Total stockholders' equity		56,431			55,673			34,135			33,214			33,112
Total liabilities and stockholders' equity	$	487,689		$	485,347		$	462,016		$	444,504		$	431,869

Common shares outstanding		87,604,088			87,604,088			87,604,088			87,604,088			87,604,088
Book value per common share	$	0.64		$	0.64		$	0.39		$	0.38		$	0.38


NORTHERN STATES FINANCIAL CORPORATION
($000s, except per share data) (Unaudited)

Condensed Consolidated Statement of Income
For quarter ended	March 31,			December 31,			September 30,			June 30,			March 31,
		2016			2015			2015			2015			2015
Interest income
Loans (including fee income)	$	2,788		$	3,005		$	2,747		$	2,646		$	2,484
Securities
Taxable		420			491			544			514			678
Exempt from federal income tax		3			4			4			5			4
Federal funds sold and other		144			97			52			54			36
Total interest income		3,355			3,597			3,347			3,219			3,202
Interest expense
Time deposits		74			79			82			79			71
Other deposits		23			24			24			21			22
Repurchase agreements and federal funds purchased		1			1			0			0			1
Subordinated debentures		63			58			57			55			53
Total interest expense		161			162			163			155			147
Net interest income		3,194			3,435			3,184			3,064			3,055
Provision for loan and lease losses		0			(789	)		0			0			100
Net interest income after provision for loan and lease losses		3,194			4,224			3,184			3,064			2,955
Noninterest income
Service fees on deposits		320			319			316			324			321
Gain on sale of securities		117			0			0			48			122
Net gain (loss) on sale of other assets		0			18			1,423			(10	)		0
Net gain (loss) on sale of other real estate owned		13			22			0			209			0
Bank owned life insurance income		53			40			14			0			0
Other operating income		381			419			428			413			385
Total noninterest income		884			818			2,181			984			828
Noninterest expense
Salaries and employee benefits		1,822			1,940			1,712			1,724			1,703
Occupancy and equipment, net		502			526			527			561			597
Data processing		459			234			501			376			330
Legal		19			52			51			117			93
FDIC insurance		101			98			96			136			141
Audit and other professional		168			151			143			162			134
Printing and supplies expense		37			36			42			63			60
Write-down of other real estate owned		0			1,282			1,264			0			0
Other real estate owned expense		131			97			136			88			170
Other operating expenses		305			303			329			414			375
Total noninterest expense		3,544			4,719			4,801			3,641			3,603
Net income (loss) before income taxes		534			323			564			407			180
Income tax expense		213			(21,720	)		50			15			0
Net income (loss)		321			22,043			514			392			180

Average common shares outstanding		87,604,088			87,604,088			87,604,088			87,604,088			87,604,088
Basic income (loss) per average outstanding share	$	0.00		$	0.25		$	0.01		$	0.00		$	0.00
Diluted income (loss) per average outstanding share	$	0.00		$	0.25		$	0.01		$	0.00		$	0.00


NORTHERN STATES FINANCIAL CORPORATION
($000s, except per share data) (Unaudited)

	March 31,			December 31,			September 30,			June 30,			March 31,
		2016			2015			2015			2015			2015
Loans
Commercial	$	11,883		$	12,144		$	14,019		$	13,687		$	10,522
Real estate-construction		15,369			21,609			15,127			14,300			11,636
Real estate-mortgage 1-4 family		41,499			28,449			27,977			29,379			30,285
Real estate-mortgage 5+ family		46,458			39,417			38,971			39,577			36,569
Real estate-mortgage commercial		129,042			125,978			126,375			123,176			118,589
Home equity		9,671			8,953			9,526			9,089			8,859
Installment		904			1,047			1,041			943			1,021
Deferred loan fees		(281	)		(270	)		(189	)		(219	)		(211	)
Total loans	$	254,545		$	237,327		$	232,847		$	229,932		$	217,270


	March 31,			December 31,			September 30,			June 30			March 31
		2016			2015			2015			2015			2015
Deposits
Demand - noninterest bearing	$	96,829		$	93,913		$	84,823		$	81,795		$	77,213
Demand - interest bearing		67,678			67,571			72,612			65,853			57,158
Money market accounts		52,032			51,797			54,077			53,131			49,453
Savings		88,826			84,515			83,153			80,884			80,654
Time, $100,000 and over		50,442			53,093			52,744			49,223			49,655
Time, under $100,000		42,948			44,283			45,846			47,223			48,236
Time, brokered		0			250			1,000			3,250			2,250
Total deposits	$	398,755		$	395,422		$	394,255		$	381,359		$	364,619


NORTHERN STATES FINANCIAL CORPORATION
($000s, except per share data) (Unaudited)

	1Q 2016				4Q 2015				3Q 2015				2Q 2015				1Q 2015
	Average		Yield/		Average		Yield/		Average		Yield/		Average		Yield/		Average		Yield/
	balance		Rate		balance		Rate		balance		Rate		balance		Rate		balance		Rate
Earning assets
Loans	$	238,327	4.69	%	$	232,821	5.18	%	$	232,003	4.76	%	$	224,996	4.73	%	$	219,900	4.54	%
Securities taxable		98,630	1.70			112,635	1.74			124,301	1.75			119,487	1.72			129,337	2.10
Securities tax-exempt		295	6.78			428	5.61			436	6.42			435	5.52			437	6.41
Interest-bearing deposits		95,565	0.60			91,402	0.42			73,330	0.28			68,449	0.32			50,803	0.28
Total earning assets		432,817	3.11	%		437,286	3.30	%		430,070	3.13	%		413,367	3.13	%		400,477	3.21	%
Non interest earning assets		51,891				29,467				26,427				26,460				26,670
Total assets	$	484,708			$	466,753			$	456,497			$	439,827			$	427,147

Interest-bearing liabilities
Interest-bearing demand deposits	$	67,804	0.08	%	$	71,437	0.08	%	$	68,681	0.09	%	$	61,325	0.08	%	$	58,445	0.10	%
Money market deposits		52,205	0.05			53,107	0.05			52,291	0.05			50,062	0.05			50,104	0.05
Savings deposits		86,031	0.01			83,536	0.01			82,482	0.01			81,353	0.01			78,445	0.01
Time deposits		96,323	0.31			98,661	0.32			101,783	0.32			99,736	0.32			94,548	0.30
Other borrowings		28,338	0.90			30,559	0.77			28,085	0.81			25,492	0.86			30,660	0.70
Total interest-bearing liabilities		330,701	0.19	%		337,300	0.19	%		333,322	0.20	%		317,968	0.19	%		312,202	0.19	%
Demand deposits		92,377				90,408				85,324				83,126				76,962
Other liabilities		5,406				4,228				4,308				5,610				4,950
Stockholders' equity		56,224				34,817				33,543				33,123				33,033
Total liabilities and stockholders' equity	$	484,708			$	466,753			$	456,497			$	439,827			$	427,147

Net interest spread			2.92	%			3.11	%			2.93	%			2.94	%			3.02	%
Net interest margin			2.96	%			3.15	%			2.97	%			2.98	%			3.07	%

For Additional Information, Contact:
Scott Yelvington, President and Chief Executive Officer (847) 775-8200 Ext. 1201

Legal Disclaimer:

EIN Presswire provides this news content "as is" without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the author above.

You just read:

Northern States Financial Corporation Reports First Quarter Earnings

Distribution channels: Banking, Finance & Investment Industry

EIN Presswire's priority is author transparency. We do our best to weed out false and misleading content. The content above is the sole responsibility of the author who makes it available. If you have any complaints, kindly contact the author above.