Illinois State Bank Parent Company Reports 2009 Second Quarter Net Income Gain

Results reflect increase in home loan refinancing, deposit inflows and growth of capital

BROOKFIELD, Wis. – North Shore Bank, parent company of Illinois State Bank, today reported a 25 percent increase in quarterly net income despite a challenging economy.

Chet Ward, Illinois State Bank president, said continuing strong performance in the most recent quarter reflected the North Shore Bank’s commitment to consistent, time-tested and conservative lending principles. Ward said on a quarterly basis, North Shore Bank’s net income is up from $1.5 million to more than $1.9 million.

“This trend is a reflection of a significant increase in home loan refinancing, an unprecedented inflow of deposits and our ability to grow our industry-leading capital,” said Ward. “We’ve also been able to reach out to credit-worthy customers to help put money back into the communities we serve.”

According to Ward, the quarterly gain would have been even greater were it not for a special FDIC assessment imposed on all financial institutions to help fund costs related to the increased number of failed banks and protection of insured depositors. Additional FDIC assessments reduced pre-tax income by more than $1.2 million and represented a more than 1,000-percent increase from the previous quarter.

“Even with the extra FDIC assessments, our continued growth in the second quarter of 2009 shows that Illinois State Bank and North Shore Bank remain strong and stable banks that saw no need to accept or apply for any federal aid under the Troubled Asset Relief Program,” said Ward.

North Shore Bank is in its 86th year, and having weathered the Great Depression, five wars and the savings and loan crisis of the late '80s, Ward said North Shore Bank’s strong capital base, access to deposits and other sources of funding and sound business practices gives the bank the ability to continue to make loans to creditworthy borrowers even as others are pulling back. He said both banks’ continued strength, security and stability will help ensure further success.

Illinois State Bank is a division of North Shore Bank, which was founded in 1923 and has assets of $1.9 billion and 43 offices throughout eastern Wisconsin and northeastern Illinois. To find an office, visit northshorebank.com. Locations and ATM's.