MANKATO, MN today announced results for the Company and its
wholly owned subsidiary, Northern Star Bank, for the third quarter
of the fiscal year ending June 30, 2008.
Northern Star Financial, Inc., the parent company of Northern
Star Bank, reported a net loss of $101,335 in the third quarter
ended March 31, 2008 compared with a loss of $284,693 in the third
quarter of fiscal year 2007. The basic loss per share of $0.12 for
the third quarter of the fiscal year ending June 30, 2008 compared
with a basic loss per share of $0.38 during the third quarter of
the fiscal year ending June 30, 2007.
The Company's total assets increased to $54.03 million at the
end of the third quarter up from $48.94 million for the fiscal year
ending June 30, 2007. Total deposits for the third quarter ended
March 31, 2008 increased to $41.20 million up from $37.33 million
for the fiscal year ending June 30, 2007. Loan receivables net of
allowance for loan losses decreased by $4.64 million over the prior
fiscal year end.
When comparing the Company's third quarter fiscal year 2008
operating results with the results of operations during the same
period of the prior fiscal year, President Stienessen indicated
that the nearly $100 thousand improvement in earnings was the
result of a $5 million increase in earnings assets; an improvement
in loan quality and a reduction in non-interest expenses.
Stienessen commented that the improvement in earnings was
accomplished despite a decline in net interest income which he
attributed to an unexpected and significant drop in interest rates
perpetuated by problems in the housing markets.
The Company commenced operations on January 25, 1999 as a bank
holding company whose subsidiary provides financial services.
Northern Star Bank's business is that of a financial intermediary
and consists primarily of attracting deposits from the general
public and using such deposits, together with borrowings and other
funds, to make secured and unsecured loans to business and
professional concerns and mortgage loans secured by residential
real estate and other consumer loans. The Bank operates two
full-service offices that are located in Mankato and St. Cloud,
Minnesota.
THIS PRESS RELEASE CONTAINS FORWARD-LOOKING INFORMATION AND
ACTUAL RESULTS MAY DIFFER.
Statements that Northern Star Financial may publish, including
those in this announcement that are not strictly historical, are
"forward-looking" statements made under the safe harbor provisions
of the Private Securities Litigation Reform Act of 1995.
Forward-looking statements are inherently unreliable and actual
results may vary. Factors which could cause actual results to
differ from these forward-looking statements include changes in the
competitive marketplace, changes in the interest rate environment,
economic conditions, outcome of pending litigation, risks
associated with credit quality and other factors discussed in the
Company's filings with the Securities and Exchange Commission. The
Company undertakes no obligation to publicly update or revise any
forward-looking statements, whether as a result of new information,
future events or otherwise.
Northern Star Financial, Inc. and Subsidiary
Consolidated Statements of Financial Condition
March 31, June 30,
------------ ------------
ASSETS 2008 2007
------------ ------------
Cash and due from banks $ 1,027,852 $ 1,270,856
Federal funds sold 5,300,653 1,447,688
------------ ------------
Cash and cash equivalents 6,328,505 2,718,544
Securities available for sale, at fair value 4,642,607 4,093,750
Federal Home Loan Bank stock, at cost 435,500 420,900
Loans held for sale 5,345,546 -
Loans receivable, net of allowance for loan and
lease losses of $317,041 and $319,979 35,238,609 39,883,169
Property and equipment, net of depreciation 236,512 279,089
Cash surrender value of life insurance 1,141,008 1,109,770
Accrued interest receivable 259,062 281,204
Other assets 403,077 152,311
------------ ------------
Total Assets $ 54,030,426 $ 48,938,737
============ ============
LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities:
Demand deposits $ 2,498,602 $ 2,558,306
NOW and money market 8,523,648 8,716,094
Savings 3,673,219 3,440,319
Time deposits 26,503,649 22,619,026
------------ ------------
Total deposits 41,199,118 37,333,745
Federal funds purchased - -
Notes payable and other borrowings 8,863,612 8,066,862
Convertible subordinated notes payable 2,135,000 1,450,000
Accrued interest payable 391,045 486,173
Other liabilities 153,137 30,370
------------ ------------
Total Liabilities 52,741,912 47,367,150
Stockholders' Equity
Common stock, $0.01 par value, 15,000,000 shares
authorized; 842,188 and 837,188 shares issued
outstanding respectively 8,422 8,371
Undesignated stock, par value $0.01 per share
5,000,000 shares authorized, no shares issued
Paid in Capital 6,012,788 5,987,838
Accumulated deficit (4,723,422) (4,390,764)
Accumulated comprehensive income (loss) (9,274) (33,858)
------------ ------------
Total Stockholders' Equity 1,288,514 1,571,587
------------ ------------
Total Liabilities and Stockholders' Equity 54,030,426 48,938,737
============ ============
Northern Star Financial, Inc. and Subsidiary
Unaudited Consolidated Statements of Operation
For the Three Months For the Nine Months
Ended March 31, Ended March 31,
------------------------ ------------------------
2008 2007 2008 2007
----------- ----------- ----------- -----------
Interest Income:
Loans receivable $ 720,877 $ 825,690 $ 2,234,756 $ 2,367,103
Securities available
for sale 54,591 43,690 176,387 130,553
Due from banks 114 - 114 -
Federal funds sold 50,079 15,063 82,507 45,850
----------- ----------- ----------- -----------
Total interest income 825,661 884,443 2,493,764 2,543,506
----------- ----------- ----------- -----------
Interest Expense:
Deposits 403,736 390,060 1,172,991 1,120,540
Borrowed funds 156,583 152,138 463,740 390,079
----------- ----------- ----------- -----------
Total interest expense 560,319 542,198 1,636,731 1,510,619
----------- ----------- ----------- -----------
Net interest income 265,342 342,245 857,033 1,032,887
Provision for loan and
lease losses - 196,417 - 211,417
----------- ----------- ----------- -----------
Net interest income after
provision for loan and
lease losses 265,342 145,828 857,033 821,470
----------- ----------- ----------- -----------
Non-interest income:
Other fees and service
charges 68,393 77,269 166,359 198,616
Sale of investments 4,283 - 12,226 -
Gain on sale of loans 12,301 29,119 73,360 80,620
----------- ----------- ----------- -----------
Total non-interest
income 84,977 106,388 251,945 279,236
----------- ----------- ----------- -----------
Non-interest expense:
Compensation and employee
benefits 212,205 272,524 701,127 761,345
Board fees 4,500 5,100 16,000 21,350
Occupancy 62,000 69,533 191,718 196,985
Printing and Supplies 5,682 15,191 21,342 37,121
Furniture, fixtures &
equipment depreciation 9,151 22,476 30,851 60,562
Data Processing 50,616 49,343 159,283 146,514
Professional fees 30,284 16,957 68,876 63,493
Other 77,216 85,785 252,439 239,864
----------- ----------- ----------- -----------
Total non-interest
expense 451,654 536,909 1,441,636 1,527,234
----------- ----------- ----------- -----------
Loss before income tax
benefit (101,335) (284,693) (332,658) (426,528)
income tax benefit - - - -
----------- ----------- ----------- -----------
Net loss $ (101,335) $ (284,693) $ (332,658) $ (426,528)
=========== =========== =========== ===========
Net (loss) per common share
Basic and diluted (loss)
per share of common
stock $ (0.12) $ (0.38) $ (0.40) $ (0.59)
=========== =========== =========== ===========
Contact: Thomas Stienessen Chief Executive Officer (507)
387-2265
(USOTC:NSBK)
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