Lakeside Bank Annual Report

2012 Annual Report
Dear Customers, Friends & Shareholders:
As friends and colleagues, we serve together with
an impressive Executive Committee and a Board
of Directors that are committed to excellence.
2012 adds another year of profitability since
our inception in 1965. Our entire organization
is dedicated to sound banking principles,
conservative financial stewardship, and growth
through relationship banking. Our continued
success is based on our commitment to our
customers and the neighborhoods we serve.
We are grateful for the energetic and steadfast
support of our employees and, of course, our
loyal shareholders. The value of our customers’
referrals is truly immeasurable, and we are most
grateful for your continued support!
In 2012, net earnings totaled $16.4 million,
an increase of $12 million over the previous
year. At year-end 2012, Lakeside Bank reported
total assets of $1.1 billion, which included net
loans of $909 million, and continued growth
in our Capital and Reserves. These results
were achieved by coupling solid underwriting
standards with controlled expenses throughout
the bank.
Our team of tenured professionals at every one of our locations basically remains
unchanged and at our Employee Award Dinner, Ana Benitez, Sr. Vice President of
Operations was recognized for 30 years of service at Lakeside Bank.
We did add some very experienced professionals in 2012 including: JoAnn Wong,
Vice President of Loan Documentation; Christine Brown, Vice President of
Commercial Lending; and Ernesto Mejil, Credit Officer. Promotions during the year
included, Jeff Wisniewski, Vice President of Commercial Lending; Daniel Barrins,
Assistant Vice President; Nick Wycklendt, Loan Officer; and Susanna Fong, Branch
Operations Manager.
We remain confident that our future, based on very conservative banking principles,
will provide a solid earnings stream thereby growing our exceptionally strong
capital base. We feel we will be positioned to take advantage of opportunities for
growth as this economic recovery continues to gain momentum.
We take pride in our ability to provide credit to our community throughout these
difficult years. We understand how important it was to be able to support our
customers and shareholders in their struggle with this recessionary economy. We
were able to provide for the needs for those loyal customers that have been very
devoted to Lakeside Bank for many years. That has been possible because Executive
Management and the Board of Directors have taken active and balanced measures
to manage capital, protect earnings, and provide adequate reserves. We anticipate
continued success in 2013, and we are confident that we will add another year of
profitability to a record that has continued for 48 years since our founding.
Victor J. Cacciatore
Donald D. Anderson
Chairman of the Board and Chief Executive Officer
President
Celebrates Community
Lakeside Bank Offers FREE Activities in honor of Chicago Money Smart Week
In honor of the 11th annual Chicago Money Smart Week (MSW), designated April 21 – April
28 by the Federal Reserve Bank of Chicago, Lakeside Bank offered a host of FREE activities
to everyone in the communities it serves. Lakeside has been a MSW partner for all 11 years!
MSW is designed to educate consumers about money management as well as generate
awareness of financial education programs on topics such as saving, using credit wisely, and
financial education for youths. Nearly 500 free classes, seminars and activities will take place
during MSW. On April 23rd Lakeside partnered with the Chinese American Service League
(CASL) and VanderCook College of Music to offer “How to Pay for Your College Education,”
to 48 people. A financial aid officer from VanderCook explained the process and provided
tips on applying for college financial aid. On April 24th, Lakeside partnered with the Near
South Planning Board to offer “Protecting Your Privacy & Security: Identity Theft in Today’s
Society” to 25 attendees. Panelists included Lakeside’s own Ana Benitez, Senior Vice President
Operations, BSA & Security Officer, as well as representatives from Attorney General Lisa
Madigan’s office and other identity theft protection establishments. Attendees learned from
experts what identity theft is, how you report it, how to get your identity back, and ways
to prevent from becoming a victim. Finally, on April 27th,
Lakeside treated 110 students at Doolittle Elementary School
to a special private presentation, “The Wealth Warriors on
Youth & Investing.” The Wealth Warriors, an elite group of
the most dedicated speakers and aggressive investors in the
Ujamaa Junior Investment Club (members are boys and girls
ages 12-18), shared with youth the importance of saving and
investing at a young age.
Investing in the Community
Lakeside Bank Celebrates “Make a Difference Day”
Make a Difference Day, founded by USA Weekend Magazine,
is celebrated on the fourth Saturday of every October through
a day of volunteerism. This year, a group of Lakeside Bank
employees, including President Don Anderson and his wife,
as well as Executive Vice President David Pinkerton and his daughter, volunteered for a service
project with the Girl Scouts of Greater Chicago and Northwest Indiana on October 27th at
the “Your Future–Dream It!” floor at Journey World, 770 N. Halsted. The group cleaned and
sanitized chairs, tables, walls, and countertops at this simulated city where students learn life
skills while taking on “real-life” business, technical, retail, financial and civic careers.
Lakeside Bank Sponsors 8th Annual Food Drive
In the spirit of the holiday season, Lakeside Bank sponsored its 8th Annual Food Drive from
November 19th to December 14th to support the Greater Chicago Food Depository (GCFD).
All Lakeside Bank locations collected a compiled total of 937 pounds of food that allowed
the GCFD to serve 705 meals to our neighbors in need. The GCFD, Chicago’s food bank,
is a not-for-profit food distribution and training center providing food for hungry people
while striving to end hunger in our community. The Food Depository distributes donated
and purchased food through a network of 650 pantries, soup kitchens and shelters to 678,000
adults and children in Cook County every year. Last year, the Food Depository distributed
64 million pounds of nonperishable food and fresh produce, dairy products and meat, the
equivalent of 134,800 meals every day.
www.LakesideBank.com
NET INCOME
TOTAL LOANS
millions)
FINANCIAL(inHIGHLIGHTS
(in millions)
1,000
25
900
20
2012
800
15
Net income
2011
$16,415,000 $ 4,411,000
700
10
5 end:
Balances at year
600
Assets
1,104,411,000
1,124,001,000
2011
2012
2011
2012
Loans, net
909,925,000905,205,000
Deposits
935,844,000981,857,000
NET INCOME
TOTAL LOANS
Stockholder’s
equity
134,047,000
(in millions)
(in millions)
900
20
NET CUSTOMER
INCOME DEPOSITS
(in millions)
(in millions)
TOTAL STOCKHOLDER’S EQUITY
TOTAL LOANS
(in millions)(in millions)
800
15
251000
130
1,000
700
10
20 900
120
900
600
5
15 800
800
110
10 700
700
100
5 600
600
90
2011
2012
2011201120122012
CUSTOMER
NET DEPOSITS
INCOME
(in millions)
(in millions)
1000
25
900
20
CUSTOMER DEPOSITS
800
15
1000
700
2011
2011
2012
2011
2012 2012
TOTAL
STOCKHOLDER’S
EQUITY
TOTAL
LOANS
(in millions)
(in millions)
1301,000
120 900
TOTAL STOCKHOLDER’S EQUITY
(in millions)
110 800
130
100 700
10
900
600
800
120,633,000
1,000
25
(in millions)
120
90 600
5
2011 2011
2012 2012
110
700
100
600
90
Investing in the2011
Community
2012
2011201120122012
2011
2012
STATEMENT OF EARNINGS
STATEMENT OF CONDITION
(unaudited in thousands)
(unaudited in thousands)
2 012 2011
Interest income on:
Loans
$ 52,424 $ 52,040
Securities 1,026 791
Other investments 364 243
2012 2011
ASSETS
Interest expense on:
Deposits 7,0528,959
Other borrowings 282
89
Cash and due from banks $ 91,995$ 132,158
Federal funds sold &
repurchase agreements
- Investment securities70,91050,339
Loans, net of unearned
discount934,433930,555
Less allowance for
possible loan losses 24,508 25,350
Total Interest Expense 7,334
Net Loans909,925905,205
Total Interest Income53,81453,074
9,048
Net Interest Income46,48044,026 Provision for possible loan losses
10,00015,413
Other assets31,58136,299
Total Assets
$1,104,411 $1,124,001
Net Interest Income
(After provision for
possible loan losses)
36,480
28,613
Other operating income 2,730
2,391
Other operating expenses22,68526,522
Deposits
Non interest-bearing$ 241,021$ 214,500
Interest-bearing694,823767,357
Income Before Income Taxes16,525 4,482
Income taxes
Net Income
110 $ 16,415 71
$ 4,411
LIABILITIES & STOCKHOLDER’S EQUITY
Total deposits935,844981,857 Other borrowings 20,801 8,801
Other liabilities13,71912,710
Total Liabilities 970,3641,003,368
Stockholder’s equity134,047120,633
Total Liabilities &
Stockholder’s Equity $1,104,411 $1,124,001
www.LakesideBank.com
BOARD OF DIRECTORS
Victor J. Cacciatore
Chairman of the Board &
Chief Executive Officer –
Lakeside Bank,
Chairman of the Board – Lakeside Bancorp, Inc.,
Chairman of the Board – Jos. Cacciatore & Co.
Former President – Lakeside Bank
John R. Montgomery III
Donald D. Anderson
President – Lakeside Bank
Executive Vice President
& Vice Chairman – Lakeside Bank, President Lakeside Bancorp, Inc.
Raymond M. Chin
John P. Davey
Charles V. Doherty
Terry M. Gabinski
George C. Pappageorge
ADVISORY BOARD MEMBER
DIRECTOR EMERITUS
Peter C. Cacciatore
Dan K. Webb
President – R.M. Chin &
Associates
FAIA, Founding
Partner and Principal –
Pappageorge/Haymes
Attorney
President – Jos. Cacciatore
& Co., President – Hunter Parking, Inc.
Investing in the Community
Managing Director –
Madison Asset Group
Partner – Winston &
Strawn
Philip D. Cacciatore
President – T.G.
Enterprises
EXECUTIVE COMMITTEE
Victor J. Cacciatore
John R. Montgomery III
Chairman of the Board &
Chief Executive Officer Former President Philip D. Cacciatore
Todd G. Monte
Executive Vice President
& Vice Chairman
Executive Vice President
& Chief Financial Officer
Donald D. Anderson
President
David V. Pinkerton
Executive Vice President
Stan J. Bochnowski
Executive Vice President
Vincent J. Tolve
Executive Vice President,
General Counsel, Trust
Officer & Secretary
www.LakesideBank.com
BANK OFFICERS
Ana M. Benítez
Senior Vice President,
Operations, BSA & Security
Officer
Donald Benjamin
Juanita Lazzerini
Vice President,
Residential Lending
Tim Savoca
Daniel Barrins
Assistant Vice President
Carolyn Booth
Personal Banking Officer
Senior Vice President
Vice President &
Credit Officer
Eva M. Ayala
Desiree D. White
Legal Administration &
Compliance Officer
Jo Ann Wong
Operations Officer
Vice President &
Branch Manager
Christine Brown
Vice President,
Commercial Lending
Michael L. Dollard
Vice President & Controller
Raymond Groselak, Jr.
Vice President
Connie Harris
Vice President &
Branch Manager
Suzanne T. Henson
Vice President
Ken Kosin
Vice President,
Commercial Loans
Jennifer D. McCracken
Vice President, Marketing
Jeffery W. Miller
Vice President & Chief Information Officer
Investing in the Community
Vice President, Operations
Vice President,
Loan Documentation
Susanna L. Fong
Assistant Vice President
& Branch Operations
Manager
Carmen N. Madsen
Assistant Vice President
Grace Marcordes
Assistant Vice President &
Branch Manager
Donna Reinke
Alia Carbajal
Michael J. McCauley
Ernesto Mejil
Credit Officer
John Rogers
Personal Banking Officer
& Branch Manager
Susan Schliep
Human Resources Officer
Jeffrey Wisniewski
Vice President, Commercial
Lending
Florence Wong
Assistant Vice President
Personal Banking Officer
Russell J. Soucek
Nick Wycklendt
Assistant Vice President
Fanny Urquiza
Assistant Vice President
Fanny Yuen
Assistant Vice President
Loan Officer
Lakeside Bank’s Mission Statement
Lakeside Bank is a leading, independent
community bank that specializes in serving
small and medium sized businesses in Chicago.
By applying vigilance and utilizing superior
business intelligence, we seek to create, identify
and serve niche markets consistent with
our expertise. We are committed to provide
personalized service beyond the expectations
of our customers by developing and leveraging
close, long-term relationships. We will optimize
shareholder value. We retain a knowledgeable
employee base and strive to provide a fulfilling
and supportive environment.
www.LakesideBank.com
Contact Us!
312.435.5100
Board of Trade
South Loop
UIC/Near West
North Loop
Chinatown/Pilsen
Lakeview/Lincoln Park
141 W. Jackson Blvd
Chicago, IL 60604
55 W. Wacker Dr
Chicago, IL 60601
2141 S. Indiana Ave
Chicago, IL 60616
2200 S. Archer Ave
Chicago, IL 60616
www.LakesideBank.com
1055 W. Roosevelt Rd
Chicago, IL 60608
2800 N. Ashland Ave
Chicago, IL 60657