NORTHERN STATES FINANCIAL CORPORATION   ..

CONSOLIDATED  STATEMENTS  OF  STOCKHOLDERS'  EQUITY   

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($ 000's, except per share data) Common Additional Retained Accumul-
ated Other
Comp-   
rehensive
 

  Total    Stock-  holders'


Years Ended December 31, 1998, 1997
and 1996
Stock   Paid-In    Capital    Earnings Income,   Net       Equity  

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Balance, January 1, 1996 ............................. $ 1,775) $ 11,123) $ 37,617) $ 490 $ 51,005)
Net income                 ..................................... 6,011) 6,011)
Cash dividends ($.40 per share) ................ (1,779) (1,779)
Exercise of stock options on 9,210 shares
of common stock  ........................................
4) 73) 77)
Tax benefit from the exercise of stock
options               .............................................
20) 20)
Unrealized net loss on securities available
for sale               .............................................
(499)  (499)

Balance, December 31, 1996 ....................... 1,779) 11,216) 41,849) (9)  54,835)
Net income                 ..................................... 7,010) 7,010)
Cash dividends ($.48 per share) ................ (2,134) (2,134)
Exercise of stock options on 500 shares
of common stock  ........................................
4) 4)
Tax benefit from the exercise of stock
options               .............................................
2) 2)
Unrealized net loss on securities available
for sale               .............................................
478  ) 478)

Balance, December 31, 1997 ....................... 1,779) 11,222) 46,725) 469  ) 60,195)
Net income                 ..................................... 7,304) 7,304)
Cash dividends ($.60 per share) ................ (2,671) (2,671)
Exercise of stock options on 6,535 shares
of common stock  ........................................
2) 52) 54)
Tax benefit from the exercise of stock
options               .............................................
62) 62)
Unrealized net loss on securities available
for sale               .............................................
169  ) 169)

Balance, December 31, 1998 ....................... $ 1,781) $ 11,336) $ 51,358) $ 638   ) $ 65,113)
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The accompanying notes are an integral part of these consolidated financial statements.
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CONSOLIDATED  STATEMENTS  OF  COMPREHENSIVE  INCOME   

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(000's)

Years ended December 31, 1998  1997  ) 1996 

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Net Income $  7,304) $  7,010)   $  6,011)
Other Comprehensive Income:
Unrealized net gains (losses) arising during year on securities available for sale, net of tax 169) 478 (499)

Comprehensive Income $  7,473) $  7,488)   $  5,512)

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

35

REPORT 1998

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