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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 OR 15(d) of The Securities Exchange Act of
1934
Date of Report (Date of earliest event reported) April 14, 1997
NORTH BANCSHARES, INC.
(Exact name of Registrant as specified in its Charter)
Delaware 0-22800 36-3915073
(State or other (commission file number) (IRS Employer
jurisdiction of Identification
incorporation) number)
100 West North Avenue, Chicago, Illinois 60610
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (312) 664-4320
N/A
Former name or former address, if changed since last report)
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Item 5. Other Events
On April 14, 1997, the Registrant issued the attached press
release.
Item 7. Financial Statements and Exhibits
(a) Exhibits
1. Press Release, Dated April 14, 1997, regarding first quarter 1997
earnings and a regular quarterly dividend.
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of
1934, the Registrant has duly caused this Report to be signed on
its behalf by the undersigned hereunto duly authorized.
NORTH BANCSHARES, INC.
(Registrant)
Date: April 14, 1997 /S/ Joseph A. Graber
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Joseph A. Graber
President
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EXHIBIT
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NORTH BANCSHARES, INC NEWS RELEASE
RELEASE: IMMEDIATE DATE: April 14, 1997
Joseph A. Graber, President
Victor E. Caputo, Executive Vice President
(312) 664-4320
NORTH BANCSHARES, INC.
ANNOUNCES
FIRST QUARTER EARNINGS INCREASES 22.5%
QUARTERLY DIVIDEND
Chicago, Illinois, April 14, 1997, - North Bancshares, Inc., (NASDAQ-NBSI),
the holding company for North Federal Savings Bank, announced net income
increased by 22.5% from $187,000 for the quarter ended March 31, 1996 to
$229,000 for the quarter ended March 31, 1997. Earnings per share increased
by 37.5% from $.16 per primary share for the quarter ended March 31, 1996 to
$.22 per primary share for the quarter ended March 31, 1997.
Concurrent with this earnings release the Board of Directors of the Company
has declared a quarterly dividend of $.12 per share to be paid on May 15,
1997 to stockholders of record on May 1, 1997.
Net interest income for the quarter ended March 31, 1996, before provision for
loan losses, increased by $69,000 or 7.7% from $900,000 for the quarter ended
March 31, 1996 to $969,000 for the quarter ended March 31, 1997. The increase
was attributable to a $316,000 increase in interest on loans receivable,
partially offset by a $149,000 decrease in interest on investment securities
and mortgage-backed securities, and a $83,000 increase in total interest
expense.
Non-interest income increased by $48,000 or 96.0% from $50,000 for the
quarter ended March 31, 1996 to $98,000 for the quarter ended March 31, 1997.
The increase was primarily attributable to a $49,000 increase in gains on the
sale of investment securities.
Non-interest expense increased by $80,000 or 12.0% from $666,000 for
the quarter ended March 31, 1996 to $746,000 for the quarter ended March 31,
1997. The increase was primarily attributable to a $59,000 increase in
compensation and benefits expense which was due primarily to an increase in
staff and an increase in ESOP expense related to an increase in the price of
Company stock to be released during 1997. Other expense increased by $34,000
which represents an additional allocation to a specific reserve for the
Arlington Heights credit enhancement.
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Total assets increased by $2.5 million or 2.1% from $117.5 million at December
31, 1996 to $120.0 million at March 31, 1997. The increase was primarily
attributable to a $5.6 million increase in investment securities and net
loans receivable, partially offset by a $3.0 million decrease in cash and
cash equivalents.
Net loans receivable increased $718,000 or 1.0% from $73.4 million at
December 31, 1996 to $74.1 million at March 31, 1997. The Bank currently
has $6.5 million in loan applications pending approval and closing.
Deposit accounts decreased by $1.5 million or 2.0% from $73.5 million
at December 31, 1996 to $72.1 million at March 31, 1997. The decrease was
proportionate to all classes of deposit accounts and can be attributed to
payments for real estate taxes, income taxes and payments for holiday
purchases.
Borrowed funds increased by $3.7 million or 15.4% from $24.1 million at
December 31, 1996 to $27.8 million at March 31, 1997. The increase is
attributable to a securities transaction leveraged with a Federal Home Loan
Bank advance at an interest rate spread of 1.80%.
Mary Ann Hass, Chairman and Chief Executive Officer, commented:
"We are pleased with the markets reaction to the core earnings growth that we
reported for the fourth quarter of 1996 and the continued growth during this
first quarter. We are continuing to develop and introduce new products and
services that will supplement that growth. We will be introducing a new home
equity line of credit product this quarter. We have declared our second
regular quarterly dividend of $.12 per share and have repurchased 33,000
shares of stock since we announced our seventh stock repurchase program on
January 21, 1997. We have set higher goals for the next three years and will
work on all the elements of our business plan in order to continue to improve
per share earnings, return on assets and return on equity."
"We have contracted to place an Automated Teller Machine at the Gold Coast
Multiplex Health and Fitness Center, which is located in the community and
are negotiating with several other locations. We believe that our customers,
who are active users of ATM's, and are attempting to avoid unnecessary
surcharges are better served by having multiple ATM locations in the
community. Our "Free Checking", small business checking, and our
restructured Money Market Account continue to grow and provide us with a
lower cost source of funds that generate fee income."
North Federal Savings Bank primarily serves the North Side of Chicago from its
home office and operates a branch office in Wilmette, Illinois. The bank has
received a five star rating for 34 consecutive quarters from Bauer Financial
Reports, Inc. You can visit our Web site at http://www.northfederal.com.
North Bancshares, Inc. common stock is traded on The Nasdaq Stock Market under
the symbol: "NBSI."
(FINANCIAL STATEMENTS ATTACHED)
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NORTH BANCSHARES, INC.
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
(IN THOUSANDS)
<TABLE>
<CAPTION>
ASSETS MARCH 31, 1997 DEC 31, 1996
(UNAUDITED)
<S> <C> <C>
Cash and due from banks $ 559 $ 618
Interest-bearing deposits 2,545 2,644
Federal funds sold 375 4,800
Investment in dollar denominated mutual funds 2,129 547
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TOTAL CASH AND CASH EQUIVALENTS 5,608 8,609
Investment securities available for sale 29,327 24,607
Mortgage-backed securities held-to-maturity 7,138 7,465
Loans receivable, net of allowance for loan
losses of $208 at March 31, 1997 and
$208 at December 31, 1996 74,096 73,378
Accrued interest receivable 1,084 1,025
Premises and equipment, net 1,074 1,061
Stock in Federal Home Loan Bank of Chicago 1,390 1,205
Other assets 294 304
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TOTAL ASSETS $120,011 $117,473
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LIABILITIES AND STOCKHOLDERS' EQUITY
Deposit accounts $ 72,124 $73,472
Borrowed funds 27,800 24,100
Advance payments by borrowers for
taxes and insurance 815 1,203
Other liabilities 1,739 736
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TOTAL LIABILITIES 102,478 99,650
STOCKHOLDERS' EQUITY
Preferred stock, $.01 par value. 500,000
shares authorized; none outstanding - -
Common stock, $.01 Par value. 3,500,000
shares authorized; 1,437,501 shares issued,
1,034,950 outstanding at March 31, 1997 and
1,057,950 outstanding at December 31, 1996 14 14
Additional paid-in capital 13,709 13,688
Retained earnings, substantially restricted 11,090 10,988
Treasury stock at cost (402,551 shares at
March 31, 1997 and 379,551 shares at
December 31, 1996) (5,764) (5,340)
Unrealized gain (loss) on securities
available for sale, net of tax effect (714) (678)
SFAS No. 87 adjustment, net of tax (108) (96)
Common stock acquired by Employee Stock
Ownership Plan (639) (667)
Deferred compensation (55) (74)
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TOTAL STOCKHOLDERS' EQUITY 17,533 17,770
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TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY $120,011 $117,473
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</TABLE>
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NORTH BANCSHARES, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS(UNAUDITED)
(IN THOUSANDS)
<TABLE>
<CAPTION>
THREE MONTHS ENDED MARCH 31,
1997 1996
<S> <C> <C>
INTEREST INCOME
Loans receivable $1,449 $1,133
Interest-bearing deposits and federal funds sold 48 86
Investment securities available-for-sale 465 488
Investment securities held-to-maturity - 2
Mortgage-backed securities available-for-sale - 90
Mortgage-backed securities held-to-maturity 125 159
Dollar denominated mutual funds 34 20
Dividends on FHLB of Chicago stock 22 13
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TOTAL INTEREST INCOME 2,143 1,991
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INTEREST EXPENSE
Deposit accounts 773 831
Borrowed funds 401 260
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TOTAL INTEREST EXPENSE 1,174 1,091
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NET INTEREST INCOME BEFORE PROVISION FOR LOAN LOSSES 969 900
PROVISION FOR LOAN LOSSES - 8
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NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES 969 892
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NON-INTEREST INCOME
Gain (loss) on sale of investment securities
available-for-sale 48 (1)
Fees and service charges 46 45
Other 4 6
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TOTAL NON-INTEREST INCOME 98 50
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NON-INTEREST EXPENSE
Compensation and benefits 394 335
Occupancy expense 113 98
Professional fees 38 41
Data processing 42 27
Advertising and promotion 31 31
Federal deposit insurance premium 12 52
Recognition and retention plan 19 19
Other 97 63
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TOTAL NON-INTEREST EXPENSE 746 666
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INCOME BEFORE TAXES 321 276
INCOME TAX EXPENSE 92 89
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NET INCOME $ 229 $ 187
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EARNINGS PER SHARE PRIMARY $.22 $.16
EARNINGS PER SHARE FULLY DILUTED $.22 $.16
WEIGHTED AVERAGE SHARES OUTSTANDING 1,036,803 1,184,109
</TABLE>
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SELECTED FINANCIAL RATIOS AND OTHER DATA (UNAUDITED):
<TABLE>
<CAPTION>
THREE MONTHS ENDED
MARCH 31,
1997 1996
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<S> <C> <C>
Performance Ratios:
Return on assets (ratio of net income
to average total assets) (1) .77% .66%
Interest Rate Spread Information:
Average during period (1) 2.57 2.36
End of period (1) 2.62 2.47
Net interest margin (1) 3.32 3.29
Operating expenses to average assets (1) 2.52 2.36
Ratio of average interest-earning assets
to average interest-bearing liabilities 118.71 121.32
MARCH 31, 1997 DECEMBER 31, 1996
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<S> <C> <C>
Asset Quality Ratios:
Non-performing assets to total assets
at end of period N/A N/A
Allowance for loan losses to non-performing loans N/A N/A
Allowance for loan losses to loans receivable (net) 0.28 0.28
Capital ratios:
Stockholders' equity to total assets 14.61 15.12
Average Stockholders' equity to average assets 14.96 16.32
Return on Stockholders' equity (ratio of net
income to average equity) (1) 5.16 2.59
Shares outstanding-actual number 1,034,950 1,057,950
Book value per share $16.94 $16.85
Number of full service offices 2 2
</TABLE>
(1) Annualized for the three month periods presented.
