For the period, Northern Star has recorded a basic loss per share of $0.16 compared with a basic loss per share of $0.13 during the same period a year ago.
Thomas Stienessen, president of Northern Star, said: The increased cost associated with increased competition for deposits has more than offset the reduction in non-interest expenses we have been able to achieve.
More competitors coupled with the reduced value clients place on deposits insured by the federal government is likely to result in more expensive money. Our challenge is to find a way to pass along the increased cost of funds to our borrowing clients in a moderating economy. Clients are increasingly turning to higher yields available from a growing number of non-banks offering bank-like products without the safety of government insurance.
