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Northern States 2Q income up 36 percent

WAUKEGAN - Northern States Financial Corp., the holding company of NorStates Bank, reported second quarter 2016 net income of $354,000 as compared with $321,000 for the first quarter 2016, with a per share book value of 65 cents at June 30.

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 percent. 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 were $499 million at June 30, an increase of $14 million from Dec. 31, 2015. Loans increased $27 million, or 11.34 percent between Dec. 31, 2015 and June 30, while deposits increased $14 million, or 3.54 percent, between those dates.

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

"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."

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