NORTHERN STATES FINANCIAL CORPORATION

STOCKHOLDER  INFORMATION
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Annual Meeting: All stockholders are invited
to attend our annual meeting, which will be held at 4:30 P.M. , on Thursday, April 22, 1999 in the lobby of the Bank of Waukegan, 1601 N. Lewis Avenue, Waukegan, Illinois 60085.
   We look forward to meeting all stockholders and welcome your questions at the annual meeting. Any stockholders unable to attend this year's meeting are invited to send questions and comments in writing to Fred Abdula, Chairman of the Board and Chief Executive Officer, at Northern States Financial Corporation.
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Form 10-K: Stockholders who wish to obtain a
copy at no charge of Northern States Financial Corporation's Form 10-K for the fiscal year ended December 31, 1998, as filed with the Securities and Exchange Commission, may do so by writing Thomas M. Nemeth, Vice President & Treasurer, at Northern States Financial Corporation.
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For Further Information: Stockholders and
prospective investors are welcome to call or write Northern States Financial Corporation with questions or requests for additional information. Please direct inquiries to:
Thomas M. Nemeth
Vice President & Treasurer
Northern States Financial Corporation
1601 N. Lewis Avenue
Waukegan, Illinois 60085
(847) 244-6000 ext. 269
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Transfer Agent, Registrar & Dividend Disbursements:
Stockholders with a change of address or related inquiries should contact:
Firstar Bank Milwaukee, NA
Investors Services Unit
1555 N. Rivercenter Dr., Suite 301
Milwaukee, Wisconsin 53212
(800) 637-7549
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Quarterly Calendar: The Company operates
on a fiscal year ending December 31. Quarterly results are announced within 45 days after the end of each quarter, and audited results are announced within 90 days after year end.
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Semi-annual Dividend Dates: Dividends are
are expected to be announced and paid on the following schedule during 1999:
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Half

Record Date

Payment Date


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First

May 17

June 1

Second

November 15

December 1

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Stock Market Information: The common stock
of Northern States Financial Corporation is traded on the National Association of Securities Dealers Automated Quotation System (NASDAQ Small- Cap Market) under the ticker symbol NSFC. Stock price quotations are published daily in the Chicago Tribune and Chicago Sun-Times newspapers and, when traded, in The Wall Street Journal, The stock is commonly listed as NthStat.

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   As of December 31, 1998 there were 6,500,000 common shares authorized; 4,453,400 common shares were outstanding, held by approximately 450 registered stockholders.
   As of February 28, 1999, the following securities firms indicated they were maintaining an inventory of Northern States Financial Corporation common stock and are acting as market makers:
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Herzog, Heine, Geduld, Inc.
Miami, Florida
(800) 966-7022 or (305) 932-5880
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Howe Barnes Investments, Inc.
Chicago, Illinois
(800) 800-4693 or (312) 655-2946
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Knight Securities, Inc.
Jersey City, New Jersey
(888) 302-9197 or (212) 336-8861

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Price Summary: The following schedule details
our stock's quarter ending bid and ask price restated to reflect the five- for-one stock-split which occured in May of 1998.
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     .. 1998

1997


BID

ASK

 BID

ASK

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Quarter Ended:
March 31 $ 32¾ $33 5/8 $ 17 5/8 $ 18 5/8
June 30 34 ¾ 34 ¾ 17 3/8 18 3/8
September 30 27 ¼ 27 5/8 19     20    
December 31 24 5/8 25     23 3/8 26 1/8
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1999


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BID

ASK

For the First Quarter:
(through March 1, 1999) $ 22 ½  $ 22 ¾ 
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Cash Dividends: Northern States Financial
Corporation pays semi-annual cash dividends in June and December. Uninterrupted cash dividends have been paid since the Company's formation in 1984 and have been increased each year since then. The table below shows semi-annual cash dividends per share for the past seven years. Dividends have been restated to reflect the five-for-one stock split which occurred in May of 1998.
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June 1

December 1

Total


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1994

$    .14

$    .15

$    .29

1995

$   .16

$   .17

$  $   .17   

1996

$   .19

$   .21

$   .40

1997

$   .23

$   .25

$   .48

1998

$   .28

$   .32

$   .60

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Independent Auditors
Crowe, Chizek and Company LLP
Oak Brook, Illinois
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NSFC ANNUAL

51

REPORT 1998

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