In the banking world today, there is a binary choice. Very large banks have capacity, but layers of bureaucracy can make business difficult. These big banks are increasingly impersonal and transactional. Small community banks may be personal but lack technology or the size to execute. Both are often unable to make exceptions or move decisively.
Fortunately, there is “Just Right” Lakeside Bank! We have the perfect balance of capacity, flexibility, and speed of execution.
- In 1984 there were 14,946 FDIC Insured banks and savings institutions in the United States. Today: 4,336.*
- Thirty years ago, the top 25 banks held approximately 32% of total assets. Today: 71%.*
- Banks under $10B held 53% of total assets thirty years ago. Today: 15%.*
Lakeside Bank has multiple advantages over these two ends of the banking spectrum:
- We’re independently owned, so we assess all opportunities individually and are able to “bend typical
- rules” when appropriate.
- Personal service focused: every client has their own Lakeside Banker.
- With thoroughness and executional alacrity, business gets done right and done quickly.
- Our unique brand personality stands out in a crowded marketplace.
- Client-centric yes, but expansive online resources for both consumers and businesses.
Lakeside is defined by relationships. We form partnerships that last years, decades, even generations. Our unique position provides exceptional opportunities for sustained growth. In a world of either too big or too small, Lakeside Bank is, “Just Right.”
Lakeside Bank by the Numbers: An Impressive Story
2020 – 2025 annual compound growth: Assets 5.8%. Loans 7.1%. Deposits 6.3%.
In 2025, total loans increased 10.1%, total assets 7.1%, and total deposits 8.24%.
As we closed 2025, our 59th year, net assets stand at $2.9 billion. We opened our 10th and 11th branches: both Mount Prospect and Naperville have grown rapidly and are thriving. Our 12th branch is now under construction in Mokena and will open Q4 2026.
Net income in 2025 was $45.2 million, up dramatically from 2024’s $33.1 million as organic growth and new branches came online.
Return on Equity and Return on Assets were 15.84% and 1.63%, respectively.
Positive asset quality & Allowance Credit Losses (ACL) reserve at 1.21% provides for future risk exposure.
The Macro Environment: 2025 and 2026(S&P Global)
The 2025 U.S. macroeconomy demonstrated surprising resilience, characterized by moderate GDP growth near 2.2%, accelerated AI investment, and persistent inflation around 2.6%–2.8% driven by tariffs and energy costs. While consumers continued to spend, job growth slowed and unemployment ticked up to 4.4% by Q3, prompting a shift toward Fed easing.
Key 2025 Economic Indicators & Themes
- GDP Growth: Real GDP grew 2.2%, a deceleration from 2024, yet showed durability through strong business investment in AI and software.
- Inflation & Rates: Inflation remained elevated, with PCE inflation at 2.6% for the year, largely driven by tariff-related costs affecting consumer goods. The Fed resumed an easing cycle in late 2025 due to softening labor markets.
- Labor Market: The market moderated significantly, with job creation slowing and the unemployment rate rising to 4.4% by September 2025.
- Policy Impact: Aggressive trade tariffs caused volatility and pressured manufacturing, while corporate tax policies and tech investment boosted productivity in specific sectors.
- Consumer Spending: Real consumer spending slowed to 2.1%–2.7% as immigration declines weighed on demand, though it remained a primary driver of overall growth.
Key 2026 Macroeconomic Forecasts
- GDP Growth: 9% to 2.2%.
- Unemployment Rate: Increased to 4.4%–4.5%.
- Inflation (PCE): Approximately 2.2%–2.8%.
- Key Drivers: Hightech investment and AI deployment acted as major tailwinds, while high import prices acted as a headwind. The ongoing Iran and Russia/Ukraine wars will also continue to impact supply chains and the global economy.
Note: This synopsis is based on economic projections and data available as of early 2026, including potential volatility from trade policy changes.
The “sleeping giant” that worries me most is the federal debt. Now at $39 Trillion, breaking through $38T in just five months, the debt is projected to grow another $1 – $1.5T in 2026, taking us to an anticipated $40T level by year end. In FY 2024, the federal deficit was $1.8T, 6.4% of GDP; in 2025 the deficit held and was approximately 6.0% of GDP. This is more than two times the historical norm. Debt service is estimated at just under $1B in FY 2026, more than defense spending. Debt has been amassed over decades and multiple presidential administrations. (Congressional Budget Office/US Treasury/Bloomberg.)
Our government’s failure to address the debt will require spending reductions, and investors will demand interest premiums for debt purchases. Higher long-term rates risk inflation, further complicating the Fed’s goal of price stability and 2% inflation. There are, of course, implications for the stock and bond markets, the noted sale of treasuries, and the role of the US dollar as the world’s reserve currency. China, the third largest holder of US debt, has encouraged its financial institutions to reduce exposure to US Treasuries.
Here at home in Chicago, we are not immune to changing conditions. Construction, commercial loans, equipment and supply costs, labor expenses … all are unknown variables. Fortunately, our clients remain invested in the future and the Lakeside new business pipeline is strong. Our personal service, flexibility, and speed give us an edge versus competition. We are well positioned to adapt as needed.
Finally, AI’s impact on business and life remains an evolving question. Will it accelerate work force reductions? How will it change our lives? The only answer thus far is it will play an outsized role in all we do. Fortunately, the world has proven remarkably resilient. And there are long-term economic and geo-political benefits to what we are painfully working through
A review of specific Lakeside Departments follows.
Treasury Management
Treasury Management delivered its strongest performance to date in 2025, generating record-breaking revenue and continuing to solidify its role as a key driver of non-interest income for the Bank. This success reflects a focused strategy centered on deepening client relationships, expanding product adoption, and enhancing our overall service delivery model.
To support this growth, the Bank made significant investments in its Treasury Management infrastructure. In 2025, we established a fully dedicated implementation and service function, ensuring a more seamless onboarding experience and enhanced ongoing client support. Additionally, the introduction of a Treasury Management Analyst role has strengthened our ability to scale operations and respond to increasing client activity and sales momentum.
Throughout the year, the Treasury Management team remained focused on providing clients with innovative tools and technologies, including enhancements to digital banking, fraud mitigation services, and payment capabilities. These efforts not only improved the client experience but also strengthened operational efficiencies across our platform.
Looking ahead to 2026, the Bank will continue to invest in innovation and integration. This includes embedding our Foreign Exchange platform directly into our Cash Management digital banking experience, as well as expanding integrations between the Bank’s systems and our clients’ Enterprise Resource Planning platforms (ERP). These enhancements are designed to deliver a more seamless, efficient, and comprehensive treasury experience for our clients.
Equally important was the continued collaboration across business lines, particularly with our Commercial Banking teams, to identify opportunities and deliver comprehensive financial solutions. This partnership-driven approach has been instrumental in driving both deposit growth and fee income.
As we look ahead, Treasury Management remains well-positioned to build on this momentum, with a continued focus on innovation, strategic growth, and delivering best-in-class service to our clients.
Lakeside Bank Residential Mortgage Department
In 2025, rates hovered in the mid-to-high 6% range, a far cry from the “free money” era of 3%. Homeowners stayed put, locked into ultra-low rates from prior years, while inventory remained tight. Buyers faced a double challenge—high prices and higher payments—forcing many to the sidelines. The industry became survival-driven: fewer refinances, more competition for purchase business, and a renewed focus on relationships and creativity.
Now comes 2026 … and a shift in tone.
Not a boom—but a thaw.
Rates have been trending closer to 6%, offering psychological relief if not dramatic savings. At the same time, inventory has slowly improved.
The outlook? A more balanced—but still challenging—landscape.
Purchase activity is expected to rise, refinance volume to return modestly, and total originations to grow again after the slowdown. Home prices are no longer surging, instead stabilizing, or growing modestly, which gives buyers a window of opportunity.
Marketing & Events
Our continually refreshed “It’s about time” advertising keeps Lakeside awareness high and helps drive business. In addition to our multi-media campaign, we average 25 social media posts monthly. Branch events were also greatly expanded. 2025 marked the eighth year of our “Right On!” Lakeside College Scholarship Challenge, with awards to deserving Chicago students. The “Kids Count!” program, also eight years old, provides financial education and savings encouragement. All marketing reinforces our personal service positioning, unique people, and lighthearted personality. In a world of boring vanilla, we’re a multi-flavored sundae. And ubiquitous!
Lakeside Together
Lakeside Bank is committed to supporting the communities where we live and work. Our Lakeside Together initiative, launched in 2025, encourages Lakesiders to participate in volunteer activities that aid community well-being and bring us closer to our neighbors. A summary of our involvement in so many events and charitable causes across Chicagoland is included.
Lakesider Anniversaries
At our annual holiday dinner, we celebrate Lakesider anniversaries. Lakesiders tend to stay Lakesiders, as you’ll see! Responsibility, authority, respect, and teamwork … works.
“Why I’m a Lakesider”
Every year, we interview multiple Lakeside clients and write about their business challenges and goals. The stories we write are about them. We then add how Lakeside made a difference, often when other financial institutions could not … or would not. Several stories are summarized at the end of this Report. Please see our website to read these in full, and many more complete stories. “Just Right” means always being present for our clients. Understanding, being flexible, and then moving quickly and accurately.
I am intensely proud of our company and people. We listen. We support each other across departments. The team spirit is palpable. We innovate to help our clients. We get things done. How we serve our clients is unlike any other financial institution and continues to pave the road for Lakeside future growth.
In the banking world of either too big or too small, Lakeside Bank is indeed, “Just Right!” Join us in the “Goldilocks Zone.” I promise you’ll be delighted with our service and results.
Philip D. Cacciatore
Chairman & Chief Executive Officer
Lakeside Since 1999
