North Shore Bank's Year-End Results Point to Steady, Strong Future

A message from President and CEO Jim McKenna

North Shore Bank just completed its fiscal year 2009 with a strong financial performance. We had net income of $6.4 million in 2009, which was in line with our 2009 plan. This allowed North Shore Bank to maintain its industry-leading capital position -- tangible equity ratio at 10.54% of its $1.82 billion in assets. This was a particularly satisfying year given the turmoil in the banking industry.

Our steady, consistent performance was particularly noteworthy in 2009 in view of the banking environment. It is particularly gratifying that our customers have shown great faith in us by depositing almost $100 million of additional funds in North Shore Bank during the past year. We are pleased that we have been able to continue to make credit available to creditworthy borrowers without interruption during this period, and that our strong position enabled us to expand into the communities of Mequon and Grafton/Cedarburg.

With over $1.8 billion in assets and almost $216 million in total capital, North Shore Bank is considered "well capitalized" according to federal bank regulations. We take pride in our ranking as one of the strongest banks in Illinois and Wisconsin. Our tangible capital-to-asset ratio of over 10% ranks us as one of the strongest banks in the nation, as well.

North Shore Bank is a federally chartered mutual savings bank headquartered in Brookfield, Wisconsin. Founded more than 85 years ago in 1923, North Shore Bank proudly serves its customers and small business clients through 44 offices in Wisconsin and northern Illinois.

Financial Statement Update

Statement of Condition

Assets
	Cash and Investments	$364,955
	Loans Receivable	1,339,937
	Federal Home Loan Bank Stock	12,275
	Premises and Equipment	37,122
	Other Assets	67,381
Total Assets		$1,821,670
Liabilities
	Deposits	$1,320,357
	Borrowed Funds	232,587
	Escrow	17,952
	Other Liabilities	34,903
		$1,605,799
Net Worth		215,871
Total Liabilities and Net Worth		$1,821,670
Statement of Operations Fiscal Twelve Months Ended September 30, 2009 (in Thousands)
Interest Income
	Interest on Investments	$14,365
	Interest on Loans	79,240
		$93,605
Interest Expense
	Interest on Deposits	$25,626
	Interest on Borrowed Funds	4,729
		$30,355
Net Interest Income		$63,250
Non-Interest Income
	Service Charges and Fees	$10,050
	Gain on Sale of Loans	2,251
	Other	1,192
		$13,493
Non-Interest Expense
	Salaries & Benefits	$29,838
	Occupancy and Equipment	8,741
	Advertising and Promotion	2,093
	Data Processing	2,462
	Other	22,964
		$66,098
Income Before Taxes		10,645
Income Taxes		4,258
Net Income		$6,387