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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) October 15, 1999
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 October 15, 1999, the Registrant issued the attached press
release.
Item 7. Financial Statements and Exhibits
(a) Exhibits
1. Press Release, Dated October 15, 1999, regarding third quarter
1999 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: October 15, 1999 /S/ Joseph A. Graber
----------------------
Joseph A. Graber
President and
Chief Executive Officer
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EXHIBIT
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NORTH BANCSHARES, INC NEWS RELEASE
RELEASE: IMMEDIATE
CONTACT: Joseph A. Graber or Victor E. Caputo or Martin W. Trofimuk
(312) 664-4320
NORTH BANCSHARES ANNOUNCES
THIRD QUARTER EARNINGS
QUARTERLY DIVIDEND DECLARED
CHICAGO, IL, OCTOBER 15, 1999, - North Bancshares, Inc., the holding
company of North Federal Savings Bank today announced diluted earnings per
share of $.07 for the quarter ended September 30, 1999, compared with $.09
per share for the quarter ended September 30, 1998. Diluted earnings per
share for the nine months ended September 30, 1999 amounted to $.34 per share
compared with $.26 per share for the nine months ended September 30, 1998.
Net income for the quarter ended September 30, 1999 amounted to $92,000, a
decrease of $21,000 from $113,000 for the quarter ended September 30, 1998.
Net income for the nine months ended September 30, 1999 amounted to $418,000
an increase of $83,000 or 24.8%, from $335,000 for the nine months ended
September 30, 1998. The decrease in earnings per share and net income for the
quarter was primarily related to a $61,000 reduction in non-interest income
partially offset by a $30,000 increase in net interest income before provision
for loan losses.
Concurrent with this earnings release the Board of Directors of the
Company has declared a quarterly dividend of $.11 per share to be paid on
November 15, 1999 to stockholders of record as of November 1, 1999.
Net interest income before provision for loan losses increased by
$30,000 to $905,000 for the quarter ended September 30, 1999 compared with
$875,000 for the quarter ended September 30, 1998. The increase was
primarily due to a $55,000 increase in total interest income for the period
partially offset by a $25,000 increase in interest expense. The net interest
margin was 2.84% for the quarter ended September 30, 1999 compared with 2.80%
for the quarter ended June 30, 1999 and 2.91% for the quarter ended September
30, 1998. The interest rate spread at September 30, 1999 improved to 2.52%
from 2.47% at June 30, 1999 and 2.45% at September 30, 1998.
Non-interest income amounted to $38,000 for the quarter ended September
30, 1999 compared with $99,000 for the quarter ended June 30, 1998. The
decrease was primarily due to $24,000 in other than temporary decline in
value of securities available for sale and a $38,000 decrease in gain on the
sale of investment securities available for sale.
Non-interest expense decreased to $764,000 for the quarter ended
September 30, 1999 compared with $797,000 for the quarter ended September 30,
1998. The improvement was primarily due to a $19,000 decrease in
compensation and benefits expense related to a reduction in staff.
Net loans receivable increased by $8.1 million and totaled $90.2 million
at September 30, 1999 compared with $82.1 million at December 31, 1998. The
increase was primarily due to $3.8 million in participation loans purchased
and an increase in third party originated loans during the period. At
September 30, 1999, the Bank had $2.3 million in loan applications pending
approval or closing and $1.2 million in outstanding unused lines of credit.
Borrowed funds increased $7.0 million to $41.1 million at September 30,
1999 from $34.1 million at December 31, 1998. The additional borrowings were
used to fund new loan originations during the period.
Total deposits amounted to $75.5 million at September 30, 1999 compared
with $76.2 million at December 31, 1998. The $700,000 million decrease was
primarily attributable to a $5.0 million decrease in certificates of deposit
partially offset by a $4.2 million increase in checking and money market
accounts.
Stockholders' equity was $11.3 million at September 30, 1999 compared
with $13.3 million at December 31, 1998. The decrease was primarily
attributable to a $1.6 million increase in other comprehensive loss related
to an increase in medium and long term interest rates and their negative
effect on the market value of the available for sale securities portfolios.
In addition, the company purchased $361,000 in treasury stock during the
period.
Joseph A. Graber, President and Chief Executive Officer, commented:
"We continue to see improvement in our net interest margin and our interest
rate spread. We have supplemented our loan production this year with $3.8
million in participations purchased from local lenders. These loans have
provided us with higher-yielding quality assets on multi-family and commercial
properties, all of which are located in our market areas." He added, "Our
non-interest checking and money market balances continue to increase while
higher cost certificate of deposit balances have decreased."
North Bancshares, Inc. is the holding company for North Federal Savings
Bank. Its common stock is traded on the Nasdaq Stock Market under the symbol
"NBSI." North Federal has seved the north side of Chicago from its office in
Old Town since 1886. It also opeates a branch office in wilmette, Il. For 44
consecutive quarters, the bank has received a five-star superior rating for
safety from Bauer Financial Reports, Inc., and is rated one of the best in the
nation for safety and soundness by Sheshunoff Informaiton Services, Inc.
North Federal is proud to support local service and non-profit organizations.
Its executives serve on the boards of the Lincoln Park Chamber of Commerce, the
Old Town Chamber of Commerce and the Human Capital Council. Further
information is available on its website at www.northfederal.com including
prior press releases, SEC filings, company history, and current products,
services and interest rates.
When used in this press release the words or phrases "will likely result,
" "are expected to," "will continue," "is anticipated," "estimate," "project,"
or similar expressions are intended to identify "forward-looking statements"
within the meaning of the Private Securities Litigation Reform Act of 1995.
The Company wishes to caution readers not to place undue reliance on any such
forward-looking statements which speak only as of the date made. The Company
wishes to advise readers that the factors listed above could affect the
Company's financial performance.
The company does not undertake -- and specifically disclaims any
obligation -- to publicly release the results of any revision which may be made
to any forward-looking statements to reflect events or circumstances after the
date of such statements or to reflect the ocourrence of anticipated or
unanticipated events.
(FINANCIAL STATEMENTS ATTACHED)
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NORTH BANCSHARES, INC.
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
(IN THOUSANDS, EXCEPT SHARE DATA)
(UNAUDITED)
<TABLE>
<CAPTION>
ASSETS SEPT 30, 1999 DEC 31, 1998
<S> <C> <C>
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Cash and due from banks $ 1,367 $ 810
Interest-bearing deposits 2,297 2,413
Federal funds sold 1,097 5,722
Investment in dollar-denominated mutual funds 97 801
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TOTAL CASH AND CASH EQUIVALENTS 4,858 8,746
Investment securities available for sale 17,023 14,880
Mortgage-backed securities held to maturity - 4,478
Mortgage-backed securities available for sale 14,698 10,884
Stock in Federal Home Loan Bank of Chicago 1,955 1,705
Loans receivable, net of allowance for loan
losses of $231 at September 30, 1999 and
$214 at December 31, 1998 90,156 82,123
Accrued interest receivable 896 849
Premises and equipment, net 1,028 1,021
Other assets 83 146
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TOTAL ASSETS $130,697 $125,832
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LIABILITIES AND STOCKHOLDERS' EQUITY
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Deposit accounts $ 75,478 $76,222
Borrowed funds 41,100 34,100
Advance payments by borrowers for
taxes and insurance 1,621 1,036
Accrued interest payable and other liabilities 1,155 1,152
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TOTAL LIABILITIES 119,354 112,510
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Preferred stock, $.01 par value. Authorized
500,000 shares; none outstanding - -
Common stock, $.01 Par value. Authorized
3,500,000 shares; issued 1,914,105 shares 19 19
Additional paid-in capital 13,373 13,437
Retained earnings, substantially restricted 11,132 11,127
Treasury stock at cost (682,860 shares at
September 30, 1999 and 651,182 shares at
December 31, 1998) (11,025) (10,664)
Accumulated other comprehensive loss (1,795) (153)
Common stock acquired by Employee Stock
Ownership Plan (361) (444)
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TOTAL STOCKHOLDERS' EQUITY 11,343 13,322
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TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY $130,697 $125,832
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</TABLE>
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NORTH BANCSHARES, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(IN THOUSANDS, EXCEPT SHARE DATA)
(UNAUDITED)
<TABLE>
<CAPTION>
THREE MONTHS ENDED NINE MONTHS ENDED
SEPT 30, SEPT 30,
1999 1998 1999 1998
<S> <C> <C> <C> <C>
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INTEREST INCOME:
Loans receivable $1,611 $1,452 $4,695 $4,409
Interest-bearing deposits and federal funds sold 32 113 163 364
Investment securities available for sale 304 480 860 1,262
Mortgage-backed securities held to maturity - 88 - 264
Mortgage-backed securities available for sale 241 1 713 1
Investment in mutual funds 6 7 22 47
Dividends on FHLB stock 34 32 94 94
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TOTAL INTEREST INCOME 2,228 2,173 6,547 6,441
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INTEREST EXPENSE:
Deposit accounts 800 823 2,401 2,440
Borrowed funds 523 475 1,500 1,354
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TOTAL INTEREST EXPENSE 1,323 1,298 3,901 3,794
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NET INTEREST INCOME BEFORE PROVISION FOR LOAN LOSSES 905 875 2,646 2,647
PROVISION FOR LOAN LOSSES 9 - 17 -
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NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES 896 875 2,629 2,647
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NON-INTEREST INCOME:
Gain (loss) on sale of investment securities
available for sale (15) 23 75 81
Gain on sale of loans available for sale - 1 - 3
Other than temporary decline in value of securities
available for sale (24) - (32) -
Fees and service charges 73 69 215 194
Other 4 6 13 15
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TOTAL NON-INTEREST INCOME 38 99 271 293
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NON-INTEREST EXPENSE:
Compensation and benefits 409 424 1,204 1,312
Occupancy expense 106 122 325 374
Professional fees 39 52 131 205
Data processing 53 48 156 144
Advertising and promotion 49 50 110 113
Federal deposit insurance premium 23 12 34 35
Other 85 85 255 236
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TOTAL NON-INTEREST EXPENSE 764 797 2,215 2,419
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INCOME BEFORE INCOME TAXES 170 177 685 521
INCOME TAX EXPENSE 78 64 267 186
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NET INCOME $ 92 113 418 335
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EARNINGS PER SHARE:
Basic .08 .09 .35 .27
Diluted .07 .09 .34 .26
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AVERAGE SHARES OUTSTANDING:
Basic 1,188,241 1,207,344 1,200,516 1,232,833
Diluted 1,236,616 1,267,476 1,247,372 1,301,197
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</TABLE>
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SELECTED FINANCIAL RATIOS AND OTHER DATA (UNAUDITED):
<TABLE>
<CAPTION>
THREE MONTHS ENDED NINE MONTHS ENDED
SEPT 30, SPET 30,
1999 1998 1999 1998
<S> <C> <C> <C> <C>
PERFORMANCE RATIOS:
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Return on assets (ratio of net income
to average total assets) (1) 0.28% 0.36% 0.44% 0.36%
Interest Rate Spread Information:
Average during period (1) 2.29 2.30 2.28 2.33
End of period (1) 2.52 2.45 2.52 2.45
Net interest margin (1) 2.84 2.91 2.82 2.96
Ratio of operating expenses to average assets (1) 2.36 2.57 2.31 2.62
Efficiency ratio .81 .82 .76 .83
Ratio of average interest-earning assets
to average interest-bearing liabilities 113.19 113.94 112.97 114.63
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SEPT 30, 1999 DECEMBER 31, 1998
<S> <C> <C>
ASSET QUALITY RATIOS:
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Non-performing assets to total assets 0.00 0.02
Allowance for loan losses to non-performing loans N/A 891.67
Allowance for loan losses to loans receivable 0.26 0.26
CAPITAL RATIOS:
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Stockholders' equity to total assets 8.68 10.46
Average Stockholders' equity to average assets 9.81 11.18
Return on Stockholders' equity (ratio of net
income to average equity) (1) 4.44 3.70
Shares outstanding-actual 1,231,215 1,262,893
Book value per share 9.21 10.55
Number of full service offices 2 2
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</TABLE>
(1) Annualized for the three and nine month periods presented.
