2021 Financial Summary
Dear Shareholders, Clients, Neighbors & Friends,
2021 was another challenging year for us all. The global pandemic continued to disrupt life, impact supply chains and damage the overall economy. Despite the uncertain environment, we accelerated Lakeside’s positive financial track record. We saw opportunities to grow while others hesitated … and took them. As if the last two years plus weren’t enough, as I write this in 2022, we’re in a bear market and inflation is the highest it’s been in 40 years. More challenges. Which we are well positioned to meet.
To begin our review, I’m proud to report Lakeside Bank now stands at ten branches. Our newest, in Park Ridge, opened May 2022. We launched three new branches in 12 months. Oakbrook Terrace and Bridgeport both opened in 2021. It was an incredible effort by everyone. More than a million and a half Chicago area residents now live within two miles of a Lakeside branch. The Power of 10!
Our growth is thanks to our successful business philosophy. Our approach is more than a business “model”. It really is a different way of thinking. Lakeside is 180 degrees different from other financial institutions. And that difference is striking. Lakeside builds significant & beautiful branches, staffing them with professionals from every banking discipline. Retail banking. Business banking. Commercial & Real Estate Loans. Treasury Management. Mortgages. The result: Client banking needs can be met when and where needed. And, crucially, every Lakeside Client has their own Lakeside Banker, building relationships for the long haul. We’ve proven our approach works for over half a century.
Many financial institutions have reduced their number of branches. Worse, they continue to minimize employee presence in remaining locations. That’s not us. Never will be.
While Lakeside has all the industry leading electronic capabilities, our commitment to true personal service and long-term relationships will always be Lakeside difference makers.
Key Indicators for 2021
Net core earnings of $42.7 million represents a 1.84 return on average assets and a 19.40 return on equity. The year ended with $2.3 billion in total assets, up 7% from year ago. This includes $1.6 billion in total loans. Stockholder equity grew from $211.4 million to $234.1 million. 2021 net operating income totaled $42.7 million. We also released $3.2 million from our significant reserve pool, increasing earnings. As always, our capital ratios remain significantly above “well capitalized” levels.
Notable 2021 Achievements
Working together with our clients, the bulk of the $180MM in PPP (Paycheck Protection Program) loans we helped secure were forgiven. Lakesiders stepped up to create lifelines for our clients during the shutdowns. We secured loans when the big banks couldn’t get funds to their customers. The effort of our entire team, right up through the top officers of the bank,
Lakesiders returned to the bank full-time. We also established a new, staggered, remote work policy to provide flexibility while assuring all departments, positions and branches are fully covered. We’ve managed this transition well. Our team is happy; there was no “great resignation” at Lakeside!
We enhanced our banking system. There are both internal and client benefits. Internally, we have easier applications and greater ability to cross-reference information. From the outside, clients will enjoy “new & improved” areas. Examples include:
*Our system will now be “real time”. Meaning instant visual availability of deposited items through Internet Banking.
*The teller line will now provide e-receipts.
*Our monthly statements are easier to read and use.
*We’re also pleased to announce we now feature Zelle, the leading P2P (person to person) program. This will make transferring funds to or from other people easy.
The changes were a major effort by multiple departments. The transition was successful, and the new system went live April 2022.
Treasury Management grew, doubling its production year over year. To strengthen the department, we added an additional Specialist in November plus an internal Implementation Support Specialist early in 2022.
To provide even stronger programs for our clients, Lakeside key payment and collection channels now include increased Same Day ACH limits plus expanded processing windows to allow ACH transactions to post more quickly in recipient accounts.
The Residential Mortgage Department had another record year in 2021. The low available inventory was a challenge, but by building and maintaining solid relationships throughout the real estate industry, the team increased their closed number of units and dollars funded. Sales, marketing and quality internal processing kept everything moving.
Our 2021 Marketing saw us increase our communication efforts in the city and provide extensive, integrated, media support for the Oakbrook Terrace and Bridgeport launches. Thanks to that sustained support, and powerful product specials, both branches had an excellent start and finished the year substantially ahead of goal. Our 10 th and latest branch, Park Ridge, was
under construction in 2021 and opened May 2022. Park Ridge has already exceeded its goal for the entire calendar. (We may have to start setting higher goals!)
We continue to strengthen our Chicago wide marketing presence but have also provided significant resources to support individual branches. That “city wide, locally deep” approach has worked well.
As noted, the 2022 stock market losses and inflationary pressures are challenges we’ll face this year. We’re confident our conservative financial profile will protect the bank and allow us to serve our clients. Having Lakeside on your side during times like these is essential!
Philip D. Cacciatore
Chairman & Chief Executive Officer
Lakeside Since 1999