Northern States Financial Corp. (fka NSFC)

[TRAPPER JIM]

Ive been so busy at work I missed the news last week.
http://www.marketwired.com/press-release/northern-states-financial-corporation-reports-2014-financial-results-otcqb-nsfc-2002230.htm
March 19, 2015 17:55 ET

Northern States Financial Corporation Reports 2014 Financial Results

WAUKEGAN, IL--(Marketwired - Mar 19, 2015) - Northern States Financial Corporation (OTCQB: NSFC), holding company for NorStates Bank (the "Bank"), today reported net income available to common stockholders for 2014 of $15,564,000 or $0.26 per share compared with a net loss for 2013 of $2,771,000 or $0.65 per share. A significant portion of the Northern States Financial Corporation's (the "Company") net income for 2014 resulted from the discount recognized on the redemption of its preferred stock in the second quarter of 2014. Per share book value at December 31, 2014 was $0.37.

For the three months ended December 31, 2014, the Company showed a net loss of $142,000 as compared with a net loss of $1,197,000 for the fourth quarter of 2013.

The financial results at the Bank showed 2014 earnings of $543,000 and a fourth quarter net loss of $60,000. The fourth quarter loss resulted from the disposition of non-performing assets totaling $4.9 million at a loss of $440,000 as the Bank continued its efforts to increase its overall asset quality. The Bank's December 31, 2014 leverage capital ratio was 9.88%.

Total assets for the Company were $422 million at December 31, 2014, increasing 7.5% from year-end 2013. During 2014, the Company's capital and deposits increased $22.7 million and $9.6 million, respectively with capital increasing $21.8 million due to the successful April 2014 capital raise. Since the capital raise, management has continued to work to reposition the Company's balance sheet.

In regard to asset quality, the Company's non-performing assets ("NPAs"), consisting of nonaccrual loans, loans ninety or more days past due, still accruing, loans considered troubled debt restructurings and other real estate owned, totaled $37.5 million at December 31, 2014, a reduction of $19.1 million or 34% from $56.6 million at December 31, 2013. Management anticipates continued decreases in NPAs in 2015 as a result of credit remediation and asset sales.

"2014 was a transformative year for the Company and the Bank," stated Scott Yelvington, President and Chief Operating Officer. "A successful capital raise has breathed new life into our organization. We remain focused on the reduction of non-performing assets and were pleased with the $10.0 million reduction in the fourth quarter. Further reductions, cost containment and our ability to deploy liquidity in a disciplined and prudent manner will enhance profitability in the coming quarters."