Exhibit 99.1

FOR
IMMEDIATE RELEASE

|         |  |                        
|-------- |  | -----------------------
|Contact: |  | Thomas Stienessen      
|         |  | Chief Executive Officer
|         |  | (507) 387-2265         

NORTHERN STAR FINANCIAL, INC. REPORTS  THIRD QUARTER RESULTS

MANKATO, Minnesota (May 9, 2001)Northern Star Financial, Inc. (NASDAQ/OTC BB: "NSBK") today announced results for the Company and
its wholly owned subsidiary Northern Star Bank for the third quarter of the fiscal year ending June 30, 2001.

Total
assets of Northern Star Financial increased by $2.8 million during the third quarter and $13.4 million during the first nine months of the fiscal year. Loan
receivables net of allowance for loan losses increased by $5.7 million during the first nine months. Assets increased 58% from $23.0 million at June 30, 2000 to
$36.4 million at March 31, 2001. During the same time period deposits increased 68% from $18.1 million to $30.7 million. Northern Star Financial reported a net loss of
$(0.02) and of $(0.25) per share for the three and nine month periods ended March 31, 2001 respectively. There was an
improvement over the three and nine month periods ending March 31, 2000 which was a net loss of $(0.29) and $(1.16) respectively.

Northern
Star Bank reported a net profit of $35,515 for the quarter and $54,001 for the nine-month period ending March 31, 2001. This was a basic profit of $0.12
per share during the first nine months of the fiscal year. The allowance for loan losses was $230,337 at quarter end, which was 1% of total loans held for investment. Non-performing loans
at quarter end were $53 thousand.

Thomas
Stienessen, Chief Executive Officer of Northern Star Financial, Inc. offered the following comments on the Company's third quarter results, "During the quarter Northern
Star Bank continued its progress toward establishing itself as a viable provider of community banking services. We experienced continued quality growth and improved operating results in virtually
every area of operations. Going forward, we will continue to look for ways to provide improved performance by focusing on or growing existing core businesses, by controlling costs, by strengthening
non-interest income and by establishing, acquiring, and forming alliances with complimentary businesses."

The
Company commenced operations on January 25, 1999 as a bank holding company whose subsidiary provides financial services. Northern Star Bank's business is that of a
financial intermediary and consists primarily of attracting deposits from the general public and using such deposits, together with borrowings and other funds, to make secured and unsecured loans to
business and professional concerns and mortgage loans secured by residential real estate and other consumer loans.

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Northern Star Financial Summary Financial Data

The following table summarizes certain historical financial data of Northern Star Financial and its subsidiary on a consolidated basis as of and for the three
months and nine months ended March 31, 2001 and 2000.

|                                        |  | For the Three Months
Ended March 31, |         | For the Nine Months
Ended March 31, |  
|--------------------------------------- |  | ------------------------------------ | ------- | ----------------------------------- | -
|
|
|Statement of Income:                    |  |                                      |         |                                     |  
|Interest income                         |  | $                                    | 661,956 |                                     | $
|Interest expense                        |  |                                      | 453,058 |                                     |  
|                                        |  |                                      |         |                                     |  
|Net interest income                     |  |                                      | 208,898 |                                     |  
|Provision for loan losses               |  |                                      | 12,114  |                                     |  
|Other non-interest income               |  |                                      | 79,232  |                                     |  
|Non-interest expense                    |  |                                      | 284,422 |                                     |  
|Income (loss) before income tax expense |  |                                      | (8,406  | )                                   |  
|Income tax expense (benefit)            |  |                                      |        |                                     |  
|                                        |  |                                      |         |                                     |  
|Net income (loss)                       |  | $                                    | (8,406  | )                                   | $
|                                        |  |                                      |         |                                     |  
|Balance Sheet:                          |  |                                      |         |                                     |  
|Assets                                  |  |                                      |         |                                     |  
|Allowance for loan losses               |  |                                      |         |                                     |  
|Deposits                                |  |                                      |         |                                     |  
|Stockholders' equity                    |  |                                      |         |                                     |  
|Per Share Data:                         |  |                                      |         |                                     |  
|Net income (loss)basic                 |  | $                                    | (0.02   | )                                   | $
|Net income (loss)diluted               |  | $                                    | (0.02   | )                                   | $
|Book value                              |  |                                      |         |                                     |  

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