Noticias (en inglés)

Northern States Financial Corporation Reports First Quarter 2017 Earnings

April 19, 2017

For Immediate Release

Waukegan, Illinois, April 19, 2017 – Northern States Financial Corporation (OTC PINK: NSFC) (the “Company”), holding company for NorStates Bank (the “Bank”), an FDIC insured financial institution, today reported first quarter 2017 net income after tax of $370 thousand, an increase of $49 thousand, or 15.3%, compared with first quarter 2016 net income after tax of $321 thousand. The Company’s per share book value at March 31, 2017 was $0.65.

Some highlights of continued financial improvement during the first quarter of 2017 included the following:

  • Average loans increased by $50.8 million for the first quarter of 2017 compared with the first quarter of 2016. Loan interest income increased $360 thousand for the first quarter of 2017 compared to the first quarter of 2016. The increased loan interest income contributed to a net interest margin for the first quarter of 2017 of 3.21%
  • 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 $499 thousand from December 31, 2016 to March 31, 2017. At March 31, 2017, the allowance for loan and lease losses to total loans and leases ratio was 1.94%.
  • Although first quarter 2017 noninterest income decreased $35 thousand compared to the first quarter of 2016, noninterest income during the first quarter of 2016 included a gain of $117 thousand on the sale of investment securities. After discounting this gain, noninterest income would have increased $82 thousand in the first quarter of 2017 compared with the same quarter of 2016.
  • The Company focused on growing core deposits consisting of personal and business non-time deposits. Core deposits increased $9.9 million, or 3.7%, at March 31, 2017 from December 31, 2016. Core deposits growth assisted the Company in maintaining a low cost of funds during the first quarter of 2017 at 15 basis points with the Bank’s cost of funds at 8 basis points.

“We expect future income to be positively affected by our continued deployment of excess liquidity and focus on the reduction of expenses and NPAs,” stated Scott Yelvington, President and Chief Executive Officer.

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 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.

For Additional Information, Contact:

Scott Yelvington, President and Chief Executive Officer (847) 775-8200 Ext. 1201

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

Northern States Financial Corporation Reports 2016 Net Income of $2.1 million

February 9, 2017

For Immediate Release

Waukegan, Illinois, February 9, 2017 – Northern States Financial Corporation (OTC PINK: NSFC) (the “Company”), holding company for NorStates Bank (the “Bank”), an FDIC insured financial institution, today reported annual net income for 2016 available to stockholders of $2,141,000, or $0.02 per share.

The Company’s net income for 2016 was positively impacted by the reversal of a portion of the Company’s deferred tax allowance which allowed the booking of a $1.0 million tax credit during the fourth quarter of 2016. Partially offsetting this increase in net income was stock compensation expense of $840,000, as stock awards were issued during the fourth quarter of 2016 pursuant to the stockholderapproved 2015 Restricted Stock Plan. In 2015, the Company recognized a $21.7 million tax credit due to the reversal of a significant portion of the Company’s deferred tax allowance and had no stock compensation expense, resulting in net income available to stockholders of $23.1 million or $0.26 per share for 2015. 

Pretax income for 2016 was $1,605,000 as compared with pretax income for 2015 of $1,474,000. Per share book value at December 31, 2016 was $0.65. After excluding the stock compensation expense, pretax income would have been $2,445,000, an increase of 65.9% from 2015.

For the three months ended December 31, 2016, net income was $983,000, which included tax credits from the $1.0 million reversal of the deferred tax allowance and stock compensation expense of $840,000. The Company had a pretax loss of $95,000 for the quarter ended December 31, 2016 as compared with pretax income of $323,000 for the same quarter of 2015. After excluding the stock compensation expense, pretax income would have been $745,000 for the three months ended December 31, 2016.

Assets of the Company increased $4.6 million to $490.0 million at December 31, 2016 from December 31, 2015. The Company increased its loans by 22.0% to $289.6 million at December 31, 2016 from $237.3 million at December 31, 2015. Total deposits decreased 1.2% to $390.8 million at December 31, 2016 compared to $395.4 million at December 31, 2015 as total time deposits decreased 16.5% between the same dates.

In regard to credit quality, total nonperforming loans decreased 30.3% to $8.8 million at December 31, 2016 compared with December 31, 2015. Other real estate owned decreased 18.6%, between the same dates, to $10.2 million at December 31, 2016.

“The Company continues to focus on non-performing asset (“NPA”) reduction and earnings,” stated Scott Yelvington, President and Chief Executive Officer of the Company. “We are pleased with our progress on both fronts in 2016 as we were able to reduce NPAs as a percentage of total assets to 3.9% at year-end 2016 from 5.2% at year-end 2015. Solid earnings growth has allowed us to recapture an additional $1.0 million of the deferred tax allowance, enhancing the share value of our Company. We also showed solid increases to loans and growth to our core deposits as we continued to profitably deploy our excess liquidity.”

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.

For Additional Information, Contact:

Scott Yelvington, President and Chief Executive Officer (847) 662-9828

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

Northern States Financial Corporation Reports 2016 Net Income

Northern States Financial Corporation Reports Third Quarter 2016 Earnings 

October 31, 2016

Waukegan, Illinois, October 31, 2016 – Northern States Financial Corporation (OTC PINK: NSFC) (the “Company”), the holding company of NorStates Bank (the “Bank”), an FDIC insured financial institution, today reported third quarter 2016 net income of $483,000 as compared with $354,000 for the second quarter 2016 and $514,000 for the third quarter of 2015. Per share book value at September 30, 2016 was $0.65.

Pretax income for the third quarter of 2016 was $612,000 as compared with pretax income of $564,000 for the same quarter of 2015, an increase of 8.5%. Income tax expense for the third quarter of 2016 was $129,000 as compared with $50,000 for the same quarter of 2015 due to the effect of the Company’s application of deferred tax assets in the third quarter of 2015. For the nine months ended September 30, 2016, pretax income was $1,700,000 as compared with pretax income of $1,151,000 for the first nine months of 2015, an increase of 47.7%.

Total assets of the Company were $508 million at September 30, 2016, an increase of $23 million, or 4.8%, from December 31, 2015. Loans increased $37 million, or 15.6%, between December 31, 2015 and September 30, 2016 while deposits increased $19 million, or 4.7%, between those dates. 

The Bank’s third quarter 2016 net interest margin was 3.09%, compared with 3.03% during the third quarter of 2015. The Bank’s cost of interest-bearing liabilities was 0.11% in the third quarter of 2016, compared with 0.13% in the third quarter of 2015. The Bank’s leverage capital ratio at September 30, 2016 was 10.61%.

With regard to asset quality, the Company’s non-performing assets (“NPAs”) at September 30, 2016 decreased $5.6 million, or 22.08%, from December 31, 2015, due primarily to a reduction in loans on nonaccrual status and other real estate owned. At September 30, 2016, the ratio of nonperforming loans to total assets was 1.70% and the allowance for loan and lease losses to total loans was 2.10%.
“We continue to make progress regarding profitability and credit quality,” stated Scott Yelvington, President and Chief Executive Officer of the Company and Bank. “Our focus will remain on the reduction of NPAs, cost reduction and the profitable deployment of liquidity.”

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.

For Additional Information, Contact:

Scott Yelvington, President and Chief Executive Officer (847) 775-8200 Ext. 1201

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

Northern States Financial Corporation Reports Second Quarter 2016 Earnings

July 26, 2016

Waukegan, Illinois, July 26, 2016 – Northern States Financial Corporation (OTC PINK: NSFC) (the "Company"), the holding company of NorStates Bank (the "Bank"), an FDIC insured financial institution, today reported second quarter 2016 net income of $354,000 as compared with $321,000 for the first quarter 2016. Per share book value at June 30, 2016 was $0.65.

Pretax income for the second quarter of 2016 was $554,000 as compared with pretax income of $407,000 for the same quarter of 2015, an increase of 36%. Income tax expense for the second quarter of 2016 was $200,000 as compared with $15,000 for the same quarter of 2015 due to the effect of the Company’s application of deferred tax assets in the second quarter of 2015.

Total assets of the Company were $499 million at June 30, 2016, an increase of $14 million from December 31, 2015. Loans increased $27 million, or 11.34% between December 31, 2015 and June 30, 2016 while deposits increased $14 million, or 3.54%, between those dates.

The Bank’s second quarter net interest margin increased to 3.12%, compared with 3.03% during the first quarter of 2016, while the cost of funds remained unchanged at 0.12% between the periods. The Bank’s leverage capital ratio at June 30, 2016 was 10.20%.

With regard to asset quality, the Company’s non-performing assets ("NPAs") at June 30, 2016 decreased $4.8 million, or 19.28%, from December 31, 2015, due primarily to a reduction in loans on nonaccrual status. At June 30, 2016, the ratio of nonperforming loans to total assets was 1.78% and the allowance for loan and lease losses to total loans was 2.05%.

"We are pleased with our progress regarding profitability and credit quality," stated Scott Yelvington, President and Chief Executive Officer of the Company and Bank. "Our focus will remain on the reduction of NPAs and the profitable deployment of liquidity. We are also continuing our efforts to streamline operations to reduce costs."

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.

For Additional Information, Contact:

Scott Yelvington, President and Chief Executive Officer (847) 775-8200 Ext. 1201

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

Northern States Financial Corporation Reports First Quarter Earnings

May 10, 2016

Waukegan, Illinois, May 10, 2016 – 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.

For Additional Information, Contact:

Scott Yelvington, President and Chief Executive Officer (847) 775-8200 Ext. 1201

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

Northern States Financial Corporation Appoints George Bridges and Joel Leonard to Board of Directors

April 5, 2016

Waukegan, Illinois, April 5, 2016 – Northern States Financial Corporation (OTCQB-NSFC) (the “Company”), holding company for NorStates Bank (the “Bank”), an FDIC insured financial institution, today announced that Judge George Bridges and Mr. Joel Leonard have been appointed as directors of the Company to serve until the next annual meeting of stockholders. The addition of Judge Bridges and Mr. Leonard increases the number of directors to ten members.  Judge Bridges and Mr. Leonard will also serve as directors of NorStates Bank.

Judge Bridges received his B.A. degree from National-Louis University with Honors, and his Juris Doctorate degree from IIT/Chicago-Kent College of Law in 1987. Judge Bridges was appointed an Associate Judge in 1995.  In 2012, he was appointed a Circuit Judge by the Illinois Supreme Court and was elected to his position in November 2014.  Judge Bridges spent the majority of his twenty-one years in the judiciary in the Criminal Felony Division.  Prior to his retirement, he served as the Presiding Judge of the Felony Division, the Co-Chair of the Illinois Supreme Court Seminar Series Committee, a member of the Supreme Court Committee on Education and on the Supreme Court’s Juvenile Justice Sub-Committee.  In the years before his appointment, he was employed as a law enforcement officer, where he twice served as the Chief of Police for the City of Waukegan.  He also spent a number of years as a prosecutor with the Lake County State’s Attorney’s Office and a period of time in private practice.

Mr. Leonard received his B.S. degree in Economics from the University of Wisconsin, Madison in 1981. Mr. Leonard spent the majority of his career focused on the management of portfolio positions and risk, as well as trading and hedging review and evaluation.  He served as a Market Maker in Equity Derivatives on the CBOE in Chicago, Illinois, was a managing member of The Advent Fund in Chicago, Illinois, and was a partner with Cornerstone Trading Group in Chicago, Illinois.  Mr. Leonard is currently a partner with Golden Horseshoe Holdings in Kalamazoo, Michigan, serves as an Investment Advisor for Balanced Asset Strategies in Chicago, Illinois, and is a Partner and Portfolio Manager with DCO Capital Management in Chicago, Illinois.  Mr. Leonard also serves as Director for NEMI Northern Energy & Mining, Inc. in Vancouver, British Columbia.

 “I am pleased that we have added Joel Leonard and George Bridges to the Board of Directors,” said Allan Jacobs, Chairman of the Board of Northern States Financial Corporation. “Mr. Leonard brings a wealth of experience with his knowledge of the marketplace and his insight, especially in dealing with investments.  Judge Bridges, having just retired from the bench, will be replacing Charles W. Smith who has been appointed his replacement on the bench.  With his involvement in the community and his legal experience, Judge Bridges will strengthen the leadership of our institution.”

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.

For Additional Information, Contact:       

Scott Yelvington, President and Chief Executive Officer ( 847) 662-9828

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

Northern States Financial Corporation Reports 2015 Net Income of $23.1 million

March 8, 2016

Waukegan, Illinois, March 8, 2016 – Northern States Financial Corporation (OTCQB-NSFC) (the “Company”), holding company for NorStates Bank (the “Bank”), an FDIC insured financial institution, today reported annual net income for 2015 available to stockholders of $23,129,000, or $0.26 per share. A significant portion of the Company’s net income for 2015 resulted from the reversal of almost all of the Company’s deferred tax allowance which allowed the booking of a $21.7 million tax credit during the fourth quarter of 2015. At year-end 2015, there remains a deferred tax allowance of approximately $3.0 million. In 2014, the Company successfully negotiated a discount of TARP preferred shares in association with the Company’s recapitalization which resulted in net income available to stockholders of $15,564,000, or $0.26 per share. Pretax income for 2015 was $1,474,000 as compared with pretax income for 2014 of $210,000. Per share book value at December 31, 2015 was $0.64.

For the three months ended December 31, 2015, the Company showed net income of $22,043,000, mainly due to the reversal of the deferred tax allowance. Pretax income for the quarter was $323,000 as compared with a loss of $142,000 for the same quarter of 2014.

Assets of the Company increased 15.0% to $485.3 million at December 31, 2015 from year-end 2014. Despite some strategic loan payoffs and reduction of nonperforming loans, the Company increased its loans by 8.3% to $237.3 million at December 31, 2015 compared with December 31, 2014. Total deposits increased 10.9% to $395.4 million as noninterest bearing deposits increased 18.3% and interest bearing deposits increased 8.7% between the same dates.

In regards to credit quality, total nonperforming loans were reduced 60.7% to $8.3 million at December 31, 2015 compared with December 31, 2014. Other real estate owned was reduced 23.8% to $12.6 million between the same dates.

“The Company continues to focus on non-performing asset (“NPA”) reduction and earnings,” stated Scott Yelvington, President and Chief Executive Officer of the Company. “We are pleased with our progress on both fronts in 2015 as we were able to reduce NPAs as a percentage of total assets to 4.3% at year-end from 8.9% at year-end 2014. Solid earnings growth has allowed us to recapture the vast majority of the deferred tax allowance enhancing share value of our Company. We were also pleased with the net increase in loans and growth to our core deposits as we move to profitably deploy our excess liquidity.”

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. 

For Additional Information, Contact:      

Scott Yelvington, President and Chief Executive Officer (847) 662-9828

Northern States Financial Corporation Reports Third Quarter 2015 Net Income of $514,000

September 30, 2015

Waukegan, Illinois, October 21, 2015 – 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.

For Additional Information, Contact:

Scott Yelvington, President and Chief Executive Officer 847.662.9828

NorStates Bank Selects the HomeBridge Affinity Mortgage Platform To Provide Depositors With Residential Mortgage Services

Iselin, NJ, July 29, 2015 – HomeBridge Financial Services, Inc. has been chosen by NorStates Bank to provide a complete line of residential mortgage services for its depositors in Illinois and Wisconsin. Through the HomeBridge Affinity Mortgage Platform, NorStates will now offer its depositors a comprehensive line of residential mortgage products typically found at national banks, combined with the personal attention NorStates has provided the communities it has served for nearly 100 years.

HomeBridge's status as a leading mortgage lender makes it a unique and ideal partner for regional banks by giving these institutions a turnkey way to implement a full-scale mortgage operation, while at the same time eliminating the need for in- house origination, processing, compliance and regulatory systems required to support such a division. Led by HomeBridge Vice President Joseph Cilento, the HomeBridge Affinity Mortgage Platform provides regional financial institutions the ability to offer depositors a wide range of tailored and locally supported mortgage services, without fear that borrowers will later defect to other financial institutions after obtaining a mortgage.

"After an independent review of the top mortgage solution providers, NorStates concluded HomeBridge is the best option to provide our depositors with the broadest range of mortgage options supported by the same personal level of service the local community expects from us. The HomeBridge platform includes locally based mortgage loan originators who are well known within our housing community, along with the ability to offer competitive rates and resources you typically only find from the major national banks," stated Matt Tilton, Executive Vice President at NorStates Bank.

The costs associated with maintaining a competitive mortgage operation are often onerous for regional financial institutions. HomeBridge's Affinity Mortgage Platform provides these institutions with a cost-effective way to broaden their product base and increase retention through an improved experience.

"HomeBridge's Affinity Mortgage Platform will provide a complete end-to-end mortgage solution for NorStates' depositors, with the same level of personal attention the bank has become synonymous with for nearly 100 years. Competition in both banking and the mortgage industry is incredibly fierce right now and the HomeBridge Affinity Mortgage Platform allows regional banks the ability to focus on their customers and their core banking services," commented Cilento.

Financial institutions interested in working with HomeBridge's Affinity Mortgage Platform can contact their local HomeBridge branch manager or Cilento directly at jcilento@homebridge.com.

About HomeBridge Financial Services, Inc.:

HomeBridge Financial Services, Inc. is one of the largest privately held, non-bank lenders in the United States. In the last 25 years, HomeBridge has grown to include nearly 1,400 associates in more than 90 retail branches across the country and two separate wholesale operations, HomeBridge Wholesale and REMN Wholesale. HomeBridge holds FNMA, FNMA, FHLMS, FHA and VA approvals and funded $6.4 billion in home loans in 2014. More information on HomeBridge can be found online at www.HomeBridgeInc.com

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.

Northern States Financial Corporation Reports Second Quarter 2015 Earnings

Waukegan, Illinois, July 21, 2015 – Northern States Financial Corporation (OTCQB-NSFC) (the "Company"), holding company for NorStates Bank (the "Bank"), an FDIC insured financial institution, today reported second quarter 2015 net income of $392,000 as compared with first quarter net income of $180,000. Per share book value at June 30, 2015 was $0.38.

The financial results of the Bank showed earnings of $501,000 for the second quarter of 2015. Assets of the Company totaled $444.5 million at June 30, 2015, an increase 5.3% from December 31, 2014. The Company increased its loans and leases, net of deferred fees, and total investment securities by $12.7 million and $9.5 million, respectively, between March 31, 2015 and June 30, 2015. Total deposits also increased from $364.6 million at March 31, 2015 to $381.4 million at June 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 $6.7 million between December 31, 2014 and June 30, 2015.

"We are pleased to report steady progress in the reduction of NPAs and a solid increase in earnings." stated Scott Yelvington, President and Chief Executive Officer of the Company. "In addition to robust credit opportunities, we were also able to post approximately $2.0 million in recoveries on loans, which boosted our reserves. 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.

For Additional Information, Contact:

Scott Yelvington, President and Chief Executive Officer 847.244.6000 Ext. 201

Northern States Financial Corporation Reports First Quarter Earnings

Waukegan, Illinois, May 5, 2015 – Northern States Financial Corporation (OTCQB-NSFC) (the "Company"), holding company for NorStates Bank (the "Bank"), an FDIC insured financial institution, today reported first quarter 2015 net income of $180,000 as compares with a loss of $677,000 for the same quarter of 2014. Per share book value at March 31, 2015 was $0.38.

The financial results of the Bank showed first quarter earnings of $269,000. The Bank made a provision of $100,000 to the allowance for loan and lease losses during the first quarter of 2015. Management believed as of March 31, 2015, the allowance for loan and lease losses was adequate at 2.8% of total loans.

Total assets for the Company were $432 million at March 31, 2015, an increase of 2.3% from year-end 2014. Loan volume was steady during the first quarter, despite some welcome payoffs. The Bank's first quarter net interest margin was 3.12% with the cost of funds of 0.12%. The Bank's leverage capital ratio was 9.95%.

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, were reduced by $4.4 million from December 31, 2014 to March 31, 2015.

"The Bank continues to make significant progress with the disposition of and upgrades to its NPAs," stated Scott Yelvington, President and Chief Executive Officer. "We are also continuing our efforts to reduce expenses and increase income."

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.

For Additional Information, Contact:

Scott Yelvington, President and Chief Executive Officer 847.244.6000 Ext. 201

NorStates Bank Announces Proposed Plan to Redevelop Westside Waukegan Facility

Waukegan, Illinois, January 23, 2015 – NorStates Bank, an FDIC insured financial institution, today announced proposed plans to redevelop its Westside Waukegan location on the corner of Grand Avenue and Green Bay Road.

Plans for the redevelopment of this 5 acre site have been submitted to the City of Waukegan and include several new commercial businesses as well as the construction of a brand new branch building, which will be located at the southern end of the property. This redevelopment will not only generate new revenue for the city, but it will also provide the bank with an opportunity to design a more modern, cost efficient and customer friendly banking facility.

Originally Spaulding Elementary School, the property was acquired by Bank of Waukegan in 1978. The building was remodeled and opened as the first branch of the Bank of Waukegan on June 2, 1980. Bank of Waukegan later formed Northern States Financial Corporation, the holding company for the bank, and later changed the bank's name to NorStates Bank, following the acquisition of First State Bank of Round Lake. The Westside Facility is currently one of eight branches serving northeastern Illinois and southeastern Wisconsin.

"We look forward to a new, modern facility and the increased efficiencies that come with updated equipment and technology," stated Scott Yelvington, President and Chief Executive Officer. "As a local community bank, continuing to provide our customers with competitive products and premier service is a top priority as we make this transition."

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 back to 1919. NorStates Bank serves the populations of northeastern Illinois and southeastern Wisconsin.

For Additional Information, Contact:

Scott Yelvington, President and Chief Executive Officer 847.244.6000 Ext. 201

Northern States Financial Corporation Reports Third Quarter Earnings

Waukegan, Illinois, November 3, 2014 – 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."

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.

For Additional Information, Contact:

Scott Yelvington, President and Chief Executive Officer 847.244.6000 Ext. 201

NorStates Bank Announces Release From Consent Order

Waukegan, Illinois, August 13, 2014 – Northern States Financial Corporation (OTCQB-NSFC), today announced that its subsidiary, NorStates Bank has been released from its Consent Order with the Federal Deposit Insurance Corporation and the Illinois Department of Financial and Professional Regulation. This termination ends a period of over 4 years in which NorStates Bank was under an Order with its regulators.

In April of this year, Northern States Financial Corporation successfully completed a $25 million recapitalization after NorStates Bank had recovered sufficiently to allow Northern States Financial Corporation to attract additional capital.

"We are pleased that our regulators have acknowledged the remarkable progress we have made" said Scott Yelvington President and Chief Executive Officer. "While we still have some ancillary credit issues to address, we are well capitalized, profitable and ready to fully resume our support for the critical financial needs of the communities we serve in Lake County, Illinois."

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.

Northern States Financial Corporation Reports Income after Recapitalization

Waukegan, Illinois, August 1, 2014 – Northern States Financial Corporation (OTCQB-NSFC), today reported net income of $367,000 for the second quarter of 2014. Highlighting the quarter was a successful $25 million recapitalization of the Company, which was completed on April 30, 2014, through which the Company was able to retire its TARP obligations with the United States Department of the Treasury and to pay the deferred interest relating to its outstanding trust preferred securities. Consolidated income available to common stockholders of the Company for the three months ended June 30, 2014 totaled $16.1 million, or $0.18 per share based on 87,604,088 outstanding shares of the Company as of June 30, 2014. The amount of consolidated income available to common stockholders was due primarily to the Company's accounting for the recapitalization transaction, as well as earnings from the Company's wholly owned banking subsidiary, NorStates Bank. Stockholders' equity at June 30, 2014 was approximately $32 million, or $0.37 per share. The Company also continued to carry approximately $26 million in a valuation allowance on its deferred tax assets.

The results of operations for the quarter ended June 30, 2014 of NorStates Bank were highlighted by net income of $391,000. The Bank's core earnings were approximately $100,000 per month following the recapitalization, an increase accomplished primarily by deploying the increased available liquidity from the recapitalization. A net gain on the sale of bank owned properties also contributed to net income for the second quarter. The Bank's cost of funds was 10 basis points for the second quarter of 2014.

Total assets of NorStates Bank were $408 million at the end of the second quarter. The Bank's leveraged capital ratio as of June 30, 2014 was 10.39%. Asset quality, as represented by the Bank's non-performing asset ratio, improved from 111% as of March 31, 2014 to 81% as of June 30, 2014. The allowance for loan and lease losses as a percent of total loans and leases of NorStates Bank stood at 3.98% as of June 30, 2014, and no provision for loan losses was made in the second quarter of 2014.

"The successful recapitalization effort completed in April has allowed us to deploy excess liquidity into increasing our securities investments and loan generation, which has had an immediate impact on earnings," stated President and Chief Executive Officer, Scott Yelvington. "Further reduction in expenses related to the recapitalization and lower non-performing assets have had an additional positive impact on earnings, and we expect that to continue. This has been a seminal quarter in our Company's history, and we are excited about the future. A healthy, profitable NorStates Bank will help enhance economic growth in the communities we serve."

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.

For Additional Information, Contact:

Scott Yelvington, President and Chief Executive Officer 847.244.6000 Ext. 201

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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 Bank conducts its operations, including the real estate market in Illinois, and other factors beyond the Bank'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 and statement to reflect new information or subsequent events or circumstances.