NORTHERN STATES FINANCIAL CORPORATION..

   CONSOLIDATED  BALANCE  SHEETS
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  ($ 000's)

  December 31, 1998   1997  

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ASSETS
Cash and due from banks $   15,176) $   14,200)
Interest-bearing deposits in financial institutions - maturities less than 90 days 183) 106)
Federal funds sold 12,600) 11,200)

Total cash and cash equivalents 27,959) 25,506)
Interest-bearing deposits in financial institutions - maturities over 90 days 100) 100)
Securities available for sale 200,861) 180,672)
Loans 246,209) 242,224)
Less: Allowance for loan losses (5,433) (5,430)

Loans, net 240,776) 236,794)
Direct lease financing 987) 1,274)
Office buildings and equipment, net 6,647) 5,899)
Other real estate owned, net of allowance for losses of
$552 and $544
2,497) 2,555)
Accrued interest receivable 4,408) 4,308
Other assets 1,686) 1,878)

Total assets $   485,921) $   458,986)

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LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities
Deposits
Demand - noninterest bearing $     44,075) $     41,388)
NOW accounts 39,180) 36,455)
Money market accounts 41,003) 38,790)
Savings 45,333) 43,923)
Time, $100,000 and over 98,338) 93,469)
Time, under $100,000 87,827) 93,925)

Total deposits 355,756) 347,950)
Securities sold under repurchase agreements and other short-term borrowings 47,990) 38,504)
Federal Home Loan Bank term advance 10,000) 5,000)
Advances from borrowers for taxes and insurance 992) 1,166)
Accrued interest payable and other liabilities 6,070) 6,171)

Total liabilities 420,808 398,791
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STOCKHOLDERS' EQUITY
Common stock 1,781) 1,779)
Additional paid-in capital 11,336) 11,222)
Retained earnings 51,358) 46,725)
Accumulated other comprehensive income, net 638) 469)

Total stockholders' equity 65,113) 60,195)

Total liabilities and stockholders' equity $ 485,921) $ 458,986)

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The accompanying notes are an integral part of these consolidated financial statements.
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NSFC ANNUAL

32

REPORT 1998

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