Northern States Financial Corporation Reports Third Quarter Earnings
(firmenpresse) - WAUKEGAN, IL -- (Marketwired) -- 11/03/14 -- Northern States Financial Corporation (OTCQB: NSFC), holding company for NorStates Bank, an FDIC insured financial institution, today reported third quarter 2014 net income of $283,000. Per share book value at September 30, 2014 was $0.37.
The financial results at NorStates Bank (the "Bank") showed third quarter earnings of $363,000 and year to date earnings of $603,000. The Bank made no provision to the allowance for loan and lease losses during the third quarter of 2014. Management believed as of September 30, 2014, the allowance for loan and lease losses was adequate at 3.9% of total loans.
Total assets for Northern States Financial Corporation (the "Company") were $423 million at September 30, 2014, an increase of 7.9% from year-end 2013. While current loan volume was steady during the third quarter, overall loans did decline, and the increase in assets was mainly attributable to an increase to securities available for sale. The Bank''s third quarter net interest margin was 3.00% with the cost of funds of 0.09%. The leverage capital ratio was 10.27%.
In regards 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, have shown a reduction of $7.6 million from December 31, 2013 to September 30, 2014. However, during the third quarter of 2014, NPAs increased $7.9 million. This increase during the third quarter was primarily due to downgrading previously identified credits to NPA status, which included placing 2 credits totaling $8.7 million on nonaccrual status and classifying a credit totaling $1.3 million as a troubled debt restructuring. Partially offsetting these downgrades was a $1.4 million credit upgraded to performing from nonaccrual status and the sale of $521,000 of other real estate owned. Management does not consider these third quarter events to be a negative trend in regards to ongoing credit quality. Management anticipates a substantial decrease in NPAs in the fourth quarter of 2014 and the first quarter of 2015 as a result of credit remediation and asset sales.
"Our efforts to reduce expenses and increase income continue to have a positive effect on earnings," stated Scott Yelvington, President and Chief Executive Officer. "However, our primary focus remains on the reduction of non-performing assets which will be essential to achieving our earnings goals."
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.
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.
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Datum: 03.11.2014 - 16:02 Uhr
Sprache: Deutsch
News-ID 1315039
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Retail Banking
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