Financial Statement Update

as of June 30, 2008

Reacting to recent media headlines, some customers have expressed interest in seeing updated financial numbers from North Shore Bank. We’re pleased to share the most recent information we have, through June 30, 2008.

After reviewing the information, we hope you will take comfort from dealing with a bank that is one of the strongest in Wisconsin. We are currently benefiting from the fact that we did not engage in subprime lending and did not venture into large concentrations of real estate loans in volatile markets like Florida, Arizona, California and Texas.

With over $1.7 billion in assets and almost $217 million in net worth, the 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 with our tangible capital to asset ratio of 11% ranking as one of the strongest in the nation as well. We continue to improve that position having earned net income over $6 million for the fiscal nine months ended June, 2008. This is an improvement of 32.7% over last year’s performance through June and represents money that is re-invested back into the Bank.

North Shore Bank is a federally-chartered mutual savings bank headquartered in Brookfield, Wisconsin. Founded 85 years ago in 1923, North Shore serves consumers and small businesses through 43 offices in Wisconsin and Northern Illinois.

Statement of Condition

Assets
	Cash and Investments	$265,705
	Loans Receivable	1,371,373
	Federal Home Loan Bank Stock	12,275
	Premises and Equipment	35,828
	Other Assets	57,134
Total Assets		$1,742,315
Liabilities
	Deposits	$1,205,750
	Borrowed Funds	277,786
	Escrow	11,338
	Income Taxes Payable	4,547
	Other Liabilities	26,152
		$1,525,573
Net Worth		216,742
Total Liabilities and Net Worth		$1,742,315
Statement of Operations Fiscal Nine Months Ended June 30, 2008 (in Thousands)
Interest Income
	Interest on Investments	$7,682
	Interest on Loans	64,864
		$72,546
Interest Expense
	Interest on Deposits	$27,819
	Interest on Borrowed Funds	4,349
		$32,168
Net Interest Income		$40,378
Non-Interest Income
	Service Charges and Fees	$7,639
	Gain on Sale of Loans	638
	Other	987
		$9,264
Non-Interest Expense
	Personnel	$20,938
	Occupancy and Equipment	7,782
	Advertising and Promotion	1,962
	Data Processing	1,806
	Other	7,072
		$39,560
Income Before Taxes		10,082
Income Taxes		4,033
Net Income		$6,049
% Change From YTD June 30, 2007
Income Before Taxes		32.3%
Net Income		32.7%