Illinois State Bank Parent Company Reports Earnings Increase in 2008

Earnings jump illustrates bank's strong, secure position as industry faces continuing challenges

BROOKFIELD, Wis. - North Shore Bank, parent company of Illinois State Bank, announced earnings of $8.03 million for calendar year 2008, an 8.1 percent increase over $7.43 million for 2007. Bank officials said the rise illustrates the banking company's secure position as the entire banking industry continues to face deep economic challenges.

"To experience a solid earnings jump as many of our competitors continue to suffer heavy losses is a sign that Illinois State Bank and North Shore Bank are standing strong amid the ongoing crisis," said Chet Ward, president of Illinois State Bank. "While other banks have been forced to seek financial assistance from the federal government, Illinois State Bank and North Shore Bank remain well-capitalized and secure."

As the country's economic troubles worsen and affect a broader number of people, Illinois State Bank and North Shore Bank are experiencing many of the same challenges as other area banks, Ward said. The banks' stressed loans have grown, he said, but North Shore Bank is successfully managing those and their overall profitability has also allowed the company to add to reserves while continuing to increase earnings.

"These are difficult times for everyone - and they won't be resolved quickly - but in 85 years of business, North Shore Bank has weathered hard times before," Ward said. "It remains committed to the prudent business principles and hard work that have carried it through the Crash of 1929, the Great Depression, five wars, the savings and loan crisis of the late '80s and now, the current recession.

"All of us at Illinois State Bank and North Shore Bank are putting forth our best efforts to ensure we continue to make credit available to creditworthy customers as we always have," he said. "Our mortgage capacity is being stretched currently due to the incredible volumes of customers coming to us to refinance their mortgage loans. However, we have been able to accommodate these customers by adding to our capacity and all of our associates are contributing maximum effort. We are seeing many new customers, whose previous mortgage was through a mortgage broker or other lender. Many of these previous lenders are no longer in business or too impaired to handle these loan requests."

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. More information is available at illinoisstatebank.com.