CONTACTS:
Thomas Stienessen, President
Northern Star Financial, Inc.
(507) 387-2265
FOR IMMEDIATE RELEASE
June 28, 2000
Northern Star Financial, Inc. and First Federal Holding Company
of Morris, Inc. Terminate Merger Agreement
Northern Star Financial, Inc., Mankato (OTC Bulletin Board) ("NSBK") ("Northern
Star") and First Federal Holding Company of Morris, Inc. announced that they
have terminated their plans to merge. The Federal Reserve Board announced on
June 26, 2000 that it has denied Northern Star's application to merge with First
Federal.
Tom Stienessen stated "We are very disappointed that the Federal
Reserve Board did not approve our application and that we were not able to
consummate our merger with First Federal. The Board of Directors of Northern
Star met today to consider the action taken by the Federal Reserve Board and to
evaluate and refocus our strategic plan to grow. It was noted that since the
date Northern Star filed its application to the Federal Reserve Board, Northern
Star's operating subsidiary, Northern Star Bank, had grown its asset base to
approximately $23 million dollars and Northern Star Bank is now operating
profitability while loan quality remained exceptionally strong. At the
conclusion of its meeting, the Board reaffirmed its intention to continue to
seek prudent ways of growing Northern Star including branching and acquisitions
as well as through internal growth. In connection with our objective to grow, we
have decided to extend the offering period of our current public offering of
common stock to September 24, 2000."
Northern Star Financial, Inc., which is a holding company of Northern
Star Bank, is engaged in commercial and consumer banking, and other related
areas of commerce.
Northern Star Financial, Inc. Common Stock is quoted on the OTC
Bulletin Board under the symbol "NSKB."
