NORTHERN STATES FINANCIAL CORPORATION

To Our Stockholders and Friends:
On behalf of the Northern States Financial Corporation and its subsidiary the Bank of Waukegan, we are please to report that for the Year     Balancing this loan growth was an increase in deposits, which also rose by 11.6% to a record $373 million. The largest portion of this increase was in time deposits, which became an attractive alternative to investors as interest rates rose and the overall performance of the stock market declined.
  We are especially pleased to announce that the Company's net income for the year 2000 increased to $7.9 million or $1.78 per share. A key factor contributing to the increased earnings was the Company's ability to control expenses. Despite the significant growth in both loans and deposits, operating expenses actually declined by almost $100,000 during the year.   Northern States Financial Corporation's efficiency ratio, which is non- interest expenses divided by the sum of net interest income and non-interest income, was 45.9% for 2000 as compared to 46.0% for 1999. This efficiency ratio is frequently used as an indicator of how well a financial 		 

2000, total assets, total loans outstanding, total deposits, net income and dividends paid were the highest in the Company's eighteen-year history.
  For the first time, total year-end assets exceeded $500 million, standing at $538 million on December 31, 2000. This was a net growth of $62 million or 12.9%. Also, for the first time in company history, total loans and leases outstanding at year-end exceeded $300 million, growing at a rate of over 22% for the year, ending at $306 million. We are pleased to point out that this loan growth was achieved despite a series of prime rate hikes during the year. We believe that this success can be attributed to the expertise of our lenders, many of whom have over 20 years of banking experience.

 

 

 
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  NSFC ANNUAL REPORT 2000