UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D. C. 20549
SCHEDULE 13D
UNDER THE EXCHANGE ACT OF 1934
(Amendment No. 2)
SUCCESS BANCSHARES, INC.
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(Name of Issuer)
COMMON STOCK, PAR VALUE $.001
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(Title of Class of Securities)
864578109
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(CUSIP Number)
Richard J. Perry, Jr., Esquire
Perry & Associates, P.C.
1826 Jefferson Place, N.W.
Washington, D. C. 20036
(202) 775-8109
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Name, Address and Telephone Number of Person Authorized to Receive Notices
and Communications)
July 7, 2000
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(Date of Event which Requires Filing of this Statement)
If the filing person has previously filed a statement on Schedule 13G to
report the acquisition that is the subject of this Schedule 13D, and is
filing this schedule because of 240.13d-1(e), 240.13d-1(f) or 240.13d-
1(g), check the following box.
NOTE: Schedules filed in paper format shall include a signed original and
five copies of the schedule, including all exhibits. See 240.13d-7(b) for
other parties to whom copies are to be sent.
* The remainder of this cover page shall be filled out for a reporting
person's initial filing on this form with respect to the subject class of
securities, and for any subsequent amendment containing information which
would alter disclosures provided in a prior cover page.
The information required on the remainder of this cover page shall not be
deemed to be "filed" for the purpose of Section 18 of the Securities
Exchange Act of 1934 ("Act") or otherwise subject to the liabilities of
that section of the Act but shall be subject to all other provisions of the
Act (however, see the Notes).
Page 1 of 16 Pages Exhibit Index at page 15
<PAGE> 2
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CUSIP NUMBER 864578109 Page 2 of 16 Pages
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1. NAMES OF REPORTING PERSONS / I.R.S. IDENTIFICATION NOS. OF
ABOVE PERSONS (entities only)
Financial Institution Partners II, L.P. / 36-4131559
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2. CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP
(a)X
(b)
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3. SEC USE ONLY
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4. SOURCE OF FUNDS
WC OO
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5. CHECK IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
PURSUANT TO ITEMS 2(d) AND 2(e)
NO
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6. CITIZENSHIP OR PLACE OF ORIGIN
Organized: State of Delaware
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NUMBER OF 7. SOLE VOTING POWER
SHARES
BENEFICIALLY 0 SHARES
OWNED BY -----------------------------------------------------------
EACH 8. SHARED VOTING POWER
REPORTING
PERSON WITH 193,450 SHARES
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9. SOLE DISPOSITIVE POWER
0 SHARES
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10. SHARED DISPOSITIVE POWER
193,450 SHARES
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11. AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
193,450 SHARES
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12. CHECK IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN
SHARES (SEE INSTRUCTIONS)
NO
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13. PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
7.4%
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14. TYPE OF REPORTING PERSON
PN
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Page 2 of 16 Pages
<PAGE> 3
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CUSIP NUMBER 864578109 Page 3 of 16 Pages
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1. NAMES OF REPORTING PERSONS / I.R.S. IDENTIFICATION NOS. OF
ABOVE PERSONS (entities only)
Hovde Capital, L.L.C. / 91-1825712
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2. CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP
(a)X
(b)
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3. SEC USE ONLY
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4. SOURCE OF FUNDS
AF
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5. CHECK IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
PURSUANT TO ITEMS 2(d) AND 2(e)
NO
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6. CITIZENSHIP OR PLACE OF ORIGIN
Organized: State of Nevada
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NUMBER OF 7. SOLE VOTING POWER
SHARES
BENEFICIALLY 0 SHARES
OWNED BY -----------------------------------------------------------
EACH 8. SHARED VOTING POWER
REPORTING
PERSON WITH 193,450 SHARES
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9. SOLE DISPOSITIVE POWER
0 SHARES
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10. SHARED DISPOSITIVE POWER
193,450 SHARES
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11. AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
193,450 SHARES
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12. CHECK IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN
SHARES (SEE INSTRUCTIONS)
NO
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13. PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
7.4%
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14. TYPE OF REPORTING PERSON
OO
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Page 3 of 16 Pages
<PAGE> 4
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CUSIP NUMBER 864578109 Page 4 of 16 Pages
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1. NAMES OF REPORTING PERSONS / I.R.S. IDENTIFICATION NOS. OF
ABOVE PERSONS (entities only)
Eric D. Hovde
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2. CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP
(a)X
(b)
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3. SEC USE ONLY
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4. SOURCE OF FUNDS
PF OO
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5. CHECK IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
PURSUANT TO ITEMS 2(d) AND 2(e)
NO
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6. CITIZENSHIP OR PLACE OF ORIGIN
U.S.A.
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NUMBER OF 7. SOLE VOTING POWER
SHARES
BENEFICIALLY 12,000 SHARES
OWNED BY -----------------------------------------------------------
EACH 8. SHARED VOTING POWER
REPORTING
PERSON WITH(1) 193,450 SHARES
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9. SOLE DISPOSITIVE POWER
12,000 SHARES
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10. SHARED DISPOSITIVE POWER
193,450 SHARES
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11. AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
205,450 SHARES
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12. CHECK IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN
SHARES (SEE INSTRUCTIONS)
NO
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13. PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
7.9%
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14. TYPE OF REPORTING PERSON
IN
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(1) Of the 205,450 Shares beneficially owned by Eric D. Hovde, 193,450 of
the Shares beneficially owned are as managing member of Hovde Capital,
L.L.C..
Page 4 of 16 Pages
<PAGE> 5
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CUSIP NUMBER 864578109 Page 5 of 16 Pages
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1. NAMES OF REPORTING PERSONS / I.R.S. IDENTIFICATION NOS. OF
ABOVE PERSONS (entities only)
Steven D. Hovde
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2. CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP
(a)X
(b)
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3. SEC USE ONLY
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4. SOURCE OF FUNDS
AF
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5. CHECK IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
PURSUANT TO ITEMS 2(d) AND 2(e)
NO
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6. CITIZENSHIP OR PLACE OF ORIGIN
U.S.A.
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NUMBER OF 7. SOLE VOTING POWER
SHARES
BENEFICIALLY 0 SHARES
OWNED BY -----------------------------------------------------------
EACH 8. SHARED VOTING POWER
REPORTING
PERSON WITH(2) 193,450 SHARES
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9. SOLE DISPOSITIVE POWER
0 SHARES
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10. SHARED DISPOSITIVE POWER
193,450 SHARES
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11. AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
193,450 SHARES
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12. CHECK IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN
SHARES (SEE INSTRUCTIONS)
NO
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13. PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
7.4%
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14. TYPE OF REPORTING PERSON
IN
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(2) The 193,450 Shares beneficially owned by Steven D. Hovde are as
managing member of Hovde Capital, L.L.C.
Page 5 of 16 Pages
<PAGE> 6
Item 1. Security and Issuer
The class of security to which this statement relates is the common
stock, par value $0.001 per share (the "Shares"), of Success Bancshares,
Inc. (the "Issuer"). The address of the principal executive offices of the
Issuer is One Marriott Drive, Lincolnshire, IL 60069.
Item 2. Identity and Background
The persons filing this statement are Financial Institution Partners
II, L.P. (the "Limited Partnership"), Hovde Capital, L.L.C., Eric D. Hovde,
and Steven D. Hovde. who are collectively referred to herein as the
"Reporting Persons." The Limited Partnership is a Delaware limited
partnership formed for the purpose of investing in, among other things, the
equity securities of various financial institutions and financial services
companies. Hovde Capital, L.L.C., a Nevada limited liability company, is
the general partner (the "General Partner") of the Limited Partnership.
Both Eric D. Hovde and Steven D. Hovde are managing members of Hovde
Capital, L.L.C.
Eric D. Hovde and Steven D. Hovde each hold beneficial interests in
the Shares held by the Limited Partnership through ownership of an interest
in, and positions as members and officers of the General Partner. Eric D.
Hovde also owns Shares of the Issuer directly. Eric D. Hovde and Steven D.
Hovde are also directors and executive officers of Hovde Financial, Inc.
("Hovde Financial"). Hovde Financial does not beneficially own any of the
Shares.
Attached as Schedule 1 hereto and incorporated by reference herein is
a list containing the principal business and the address of its principal
business and office for the Limited Partnership and the General Partner as
well as information required by (a) through (f) of this Item as to each
executive officer, director and/or controlling person of the General
Partner who are Reporting Persons. The General Partner controls the
Limited Partnership.
None of the Reporting Persons or executive officers, directors or
controlling persons of the General Partner has, during the last five years,
been convicted in a criminal proceeding (excluding traffic violations or
similar misdemeanors) or been a party to a civil proceeding of a judicial
or administrative body of competent jurisdiction and as a result of such
proceeding was or is subject to a judgment, decree or final order enjoining
future violations of, or prohibiting or mandating activities subject to,
federal or state securities laws or finding of any violation with respect
to such laws.
Item 3. Source and Amount of Funds or Other Consideration
Information regarding the source and amount of funds used by the
Reporting Persons in acquiring beneficial ownership of their Shares is set
forth in Schedule 2 attached hereto and incorporated herein by reference.
Item 4. Purpose of Transaction
The Reporting Persons have acquired the Shares for investment purposes
and as set forth below:
(a) Each of the Reporting Persons may independently acquire
additional Shares or dispose of some or all of its Shares.
(b) None.
Page 6 of 16 Pages
<PAGE> 7
(c) None.
(d) None.
(e) None.
(f) None.
(g) None.
(h) None.
(i) None.
(j) None.
The Reporting Persons, and their directors, officers and controlling
persons, reserve the right to adopt such plans and proposals in the future,
subject to applicable regulatory requirements, if any.
Item 5. Interest in Securities of the Issuer
(a), (b) Schedule 3 hereto, which is incorporated by reference
herein, sets forth, as of July 10, 2000, information relating to the
aggregate number of Shares of the Issuer and the percentage of the
outstanding Shares of the Issuer as of such date (based upon information
provided by the Issuer, there are 2,602,306 Shares outstanding as of that
date) as to each of the Reporting Persons. With respect to the Shares set
forth on Schedule 3, by virtue of its control over the Limited Partnership,
all decisions regarding voting and disposition of the Shares beneficially
owned by the Limited Partnership are made by the General Partner acting
through its chief executive officer or president. As such, the Limited
Partnership and the General Partner share voting and investment power with
respect to the Shares. Therefore, as a result of their ownership interest
in, and positions as members and officers of the General Partner, Eric D.
Hovde and Steven D. Hovde may be deemed to have beneficial ownership of the
Shares. Neither the General Partner, its executive officers or controlling
persons beneficially owns any Shares personally or otherwise, except for
the Shares beneficially owned by Eric D. Hovde.
(c) Schedule 4 hereto, which is incorporated by reference herein,
describes, as of July 10, 2000, transactions in the Shares effected during
the past sixty (60) days by the Reporting Persons.
(d) None.
(e) None.
Each of the Reporting Persons disclaims beneficial ownership of Shares
beneficially owned by any of the other Reporting Persons.
Item 6. Contracts, Arrangements, Understandings or Relationships with
Respect to Securities of the Issuer
None.
Item 7. Materials to be filed as Exhibits
Exhibit A - Consent Agreement pursuant to 17 C.F.R. 13d-1(f)(1)
Exhibit B - [OMITTED - - FILED PURSUANT TO REQUEST FOR CONFIDENTIAL
TREATMENT] (Incorporated by reference to the initial
Schedule 13D filed with the Securities and Exchange
Commission (the "Commission") on September 14, 1999)
Page 7 of 16
<PAGE> 8
Exhibit C - Customer Agreement between Banc of America Securities LLC
and Financial Institution Partners II, L.P. (Incorporated by
reference to the initial Schedule 13D filed with the
Commission on September 14, 1999)
Exhibit D - Prime Broker Agreement between Banc of America Securities
LLC and Financial Institution Partners II, L.P.
(Incorporated by reference to the initial Schedule 13D filed
with the Commission on September 14, 1999)
Exhibit E - Partnership Agreement between Banc of America Securities LLC
and Financial Institution Partners II, L.P. (Incorporated by
reference to the initial Schedule 13D filed with the
Commission on September 14, 1999)
Exhibit F - Customer Agreement between Banc of America Securities LLC
and Eric D. Hovde. (Incorporated by reference to the initial
Schedule 13D filed with the Commission on September 14,
1999)
Exhibit G - Prime Broker Agreement between Banc of America Securities
LLC and Eric D. Hovde. (Incorporated by reference to the
initial Schedule 13D filed with the Commission on September
14, 1999)
Page 8 of 16
<PAGE> 9
Signatures
After reasonable inquiry and to the best of his/its knowledge and
belief, each of the undersigned Reporting Persons certifies that the
information set forth in this statement with respect to him/it is true,
complete and correct.
FINANCIAL INSTITUTION PARTNERS II, L.P., by its
General Partner, HOVDE CAPITAL, L.L.C.
By: /s/ Eric D. Hovde
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Eric D. Hovde
Its: Managing Member
HOVDE CAPITAL, L.L.C.
By: /s/ Eric D. Hovde
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Eric D. Hovde
Its: Managing Member
ERIC D. HOVDE
/s/ Eric D. Hovde
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STEVEN D. HOVDE
/s/ Steven D. Hovde
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Dated: 7/10/00
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Page 9 of 16
<PAGE> 10
Schedule 1
INFORMATION RELATING TO REPORTING PERSONS
Principal Business and
Address of Principal Business
Name or Principal Office
---- ------------------------------
Financial Institution Limited partnership formed to
Partners II, L.P. make investments primarily in equity
securities of financial institutions and
financial services companies.
1629 Colonial Parkway
Inverness, Illinois 60067
Organized: State of Delaware
Hovde Capital, L.L.C. Limited liability company formed to
serve as the general partner of
Financial Institution Partners II, L.P.
1629 Colonial Parkway
Inverness, Illinois 60067
Organized: State of Nevada
Eric D. Hovde Investment banker
Hovde Financial, Inc.
1826 Jefferson Place, N.W.
Washington, D.C. 20036
Steven D. Hovde Investment banker
Hovde Financial, Inc.
1629 Colonial Parkway
Inverness, Illinois 60067
Page 10 of 16
<PAGE> 11
INFORMATION RELATING TO EXECUTIVE OFFICERS, DIRECTORS AND/OR
CONTROLLING PERSONS
NAME PRINCIPAL OCCUPATION
ADDRESS BUSINESS ADDRESS CITIZENSHIP
------- -------------------- -----------
Steven D. Hovde(3) Investment banker U.S.
1629 Colonial Parkway Hovde Financial, Inc.
Inverness, Illinois 60067 1629 Colonial Parkway
Inverness, Illinois 60067
Investment banking firm
Eric D. Hovde (4) Investment banker U.S.
1826 Jefferson Place, N.W. Hovde Financial, Inc.
Washington, D.C. 20036 1826 Jefferson Place, N.W.
Washington, D.C. 20036
Investment banking firm
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(3) Steven D. Hovde is affiliated with the following Reporting Persons:
President, Treasurer of Hovde Capital, L.L.C.
(4) Eric D. Hovde is affiliated with the following Reporting Persons:
Chairman and CEO of Hovde Capital, L.L.C.
Page 11 of 16
<PAGE> 12
SCHEDULE 2
The following table sets forth the amount and source of funds used by
each Reporting Person in acquiring the Shares beneficially owned by it.
Amount
Originally
Total Financed/ Source of
Name Consideration Current Balance Funds
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Financial $2,227,597.55 $1,113,798.78/ Working Capital/
Institution $1,113,798.78 Margin Account(5)
Partners II, L.P.
Hovde Capital, $2,227,597.55 $1,113,798.78/ Working Capital/
L.L.C. $1,113,798.78 Margin Account of
Affiliate(5)
Eric D. Hovde $133,411.10 $66,705.55/ Working Capital/
$66,705.55 Margin Account(6)
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(5) $1,113,798.78 was financed through a margin account with Banc of
America Securities LLC at Federal Funds rate +5/8.
(6) $66,705.55 was financed through a margin account with Banc of America
Securities LLC at Federal Funds rate +5/8.
Page 12 of 16
<PAGE> 13
SCHEDULE 3
The following table sets forth the number and approximate percentage
of Shares beneficially owned by each of the Reporting Persons. Each of the
Reporting Persons has shared power to vote or to direct the vote and to
dispose or to direct the disposition of the Shares of which each of them,
respectively, possesses beneficial ownership.
Approximate
Name Number of Shares Percentage
---- ---------------- -----------
Financial Institution 193,450 7.4%
Partners II, L.P.
Hovde Capital, L.L.C. 193,450 7.4%
Eric D. Hovde 205,450 7.9%
Steven D. Hovde 193,450 7.4%
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Aggregate Shares Held by 205,450 7.9%
Reporting Persons
Page 13 of 16
<PAGE> 14
SCHEDULE 4
Description of Transactions in Shares Effected Within 60 Days.
The Reporting Persons had effected the following transactions in the Shares
within sixty (60) days of July 10, 2000:
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Transaction Number of Transaction Transaction Broker
Date Shares Price Type
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Financial 7/7/00 4,000 $10.8125 Buy Tucker
Institution Anthony
Partners II,
L.P. 7/6/00 3,000 $10.8125 Buy Tucker
Anthony
6/21/00 6,000 $11.5625 Buy Tucker
Anthony
6/19/00 2,000 $11.5625 Buy Tucker
Anthony
Page 14 of 16
<PAGE> 15
EXHIBIT INDEX
Page
Exhibit A- Consent Agreement to 17 C.F.R. 13d-1(f)(1) 16
Exhibit B - [OMITTED - - FILED PURSUANT TO REQUEST FOR
CONFIDENTIAL TREATMENT] (Incorporated by
reference to the initial Schedule 13D filed
with the Commission on September 14, 1999)(7)
Exhibit C - Customer Agreement between Banc of America
Securities LLC and Financial Institution
Partners II, L.P. (Incorporated by reference
to the initial Schedule 13D filed with the
Commission on September 14, 1999)
Exhibit D - Prime Broker Agreement between Banc of America
Securities LLC and Financial Institution
Partners II, L.P. (Incorporated by reference
to the initial Schedule 13D filed with the
Commission on September 14, 1999)
Exhibit E - Partnership Agreement between Banc of America
Securities LLC and Financial Institution
Partners II, L.P. (Incorporated by reference
to the initial Schedule 13D filed with the
Commission on September 14, 1999)
Exhibit F - Customer Agreement between Banc of America
Securities LLC and Eric D. Hovde (Incorporated
by reference to the initial Schedule 13D filed
with the Commission on September 14, 1999)
Exhibit G - Prime Broker Agreement between Banc of America
Securities LLC and Steven D. Hovde (Incorporated
by reference to the initial Schedule 13D filed
with the Commission on September 14, 1999)
------------------------------------------
(7) Portions of Exhibit 5 have been omitted pursuant to a request for
confidential treatment of information in accordance with Rule 24b-2 of the
Securities and Exchange Act of 1934.
Page 15 of 16
<PAGE> 16
EXHIBIT A
Consent Agreement Pursuant to 17 C.F.R. 13d-1(f)(1)
Each of the undersigned hereby consents and agrees to the filing on
behalf of each of them of the foregoing joint statement on Schedule 13D
pursuant to 17 C.F.R. 13d-1(f)(1) with respect to his/its beneficial
ownership of the shares of the Issuer.
FINANCIAL INSTITUTION PARTNERS II, L.P., by its General
Partner, HOVDE CAPITAL, L.L.C.
By: /s/ Eric D. Hovde
-------------------------------------------------
Eric D. Hovde
Its: Managing Member
HOVDE CAPITAL, L.L.C.
By: /s/ Eric D. Hovde
-------------------------------------------------
Eric D. Hovde
Its: Managing Member
ERIC D. HOVDE
/s/ Eric D. Hovde
-------------------------------------------------
STEVEN D. HOVDE
/s/ Steven D. Hovde
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Dated: 7/10/00
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Page 16 of 16
