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 16, 2000
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NORTH BANCSHARES, INC.
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(Exact name of registrant as specified in its Charter)
Delaware 0-22800 36-3915073
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(State or other (commission file number) (IRS Employer
jurisdiction of Identification
incorporation) number)
100 West North Avenue, Chicago, Illinois 60610
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(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (312) 664-4320
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N/A
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(Former name or former address, if changed since last report)
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Item 5. Other Events
On October 16, 2000, the Registrant issued the attached press release.
Item 7. Financial Statements and Exhibits
(a) Exhibits
1. Press Release, dated October 16, 2000, regarding third quarter 2000
earnings and a 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 16, 2000 /S/ Joseph A. Graber
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Joseph A. Graber
President and
Chief Executive Officer
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EXHIBIT
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NORTH BANCSHARES, INC. NEWS
100 West North Avenue Chicago, Illinois 60610 312-664-4320
RELEASE: IMMEDIATELY
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 16, 2000, - North Bancshares, Inc., the holding
company of North Federal Savings Bank today announced diluted earnings per share
of $.11 for the quarter ended September 30, 2000, an improvement of $.04 per
share, from $.07 per share for the quarter ended September 30, 1999. Net income
for the quarter ended September 30, 2000 amounted to $126,000, an increase of
$34,000, from $92,000 for the quarter ended September 30, 1999. The improvement
in earnings per share and net income was primarily related to a $22,000 increase
in non-interest income, an $11,000 decrease in income tax expense and a $10,000
reduction in non-interest expense partially offset by an $18,000 decrease in net
interest income.
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, 2000 to stockholders of record as of November 1, 2000.
Net interest income, before provision for loan losses, decreased by
$18,000 to $887,000 for the quarter ended September 30, 2000, compared with
$905,000 for the quarter ended September 30, 1999. The interest rate spread
decreased to 2.22% at September 30, 2000 from 2.41% at September 30, 2000,
although it increased from 2.20% at June 30, 2000. The net interest margin
decreased to 2.76% for the quarter ended September 30, 2000 from 2.84% for the
quarter ended September 30, 1999, although it increased from 2.70% for the
quarter ended June 30, 2000.
Non-interest income increased by $22,000 and amounted to $60,000 for
the quarter ended September 30, 2000 compared with $38,000 for the quarter ended
June 30, 1999. The increase was primarily attributable to a $24,000 decrease in
other than temporary decline in value of securities available for sale. In
addition, there was a $15,000 loss on the sale of loans during the quarter which
was offset by a $15,000 loss on the sale of investment securities available for
sale during the quarter ended September 30, 1999, both of which were
nonrecurring.
Non-interest expense decreased by $10,000 to $754,000 for the quarter
ended September 30, 2000 compared with $764,000 for the quarter ended September
30, 1999. The decrease was primarily attributable to a combined $30,000
decrease in federal deposit insurance premiums and advertising and promotion
expense partially offset by a $14,000 increase in compensation and benefits
expense related to increased salaries and benefits expense.
Net loans receivable totaled $89.0 million at both September 30, 2000
and at December 31, 1999. Originations totaled $11.6 million during the nine
month period compared with $22.0 million during the nine months ended September
30, 1999. Repayments totaled $9.5 million and loan sales totaled $1.8 million
during the nine months ended September 30, 2000 compared with repayments of
$13.6 million and sales of $425,000 during the nine months ended September 30,
1999. At September 30, 2000, the Bank had $4.3 million in loan applications and
participations pending approval, closing or funding at an average rate of 9.14%
and $2.4 million in unused lines of credit.
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Total deposits amounted to $80.2 million at September 30, 2000 compared
with $76.5 million at December 31, 1999. The $3.7 million increase was primarily
attributable to an increase in certificates of deposit. The increase in
certificates was primarily due to the use of brokered certificates of deposit as
a funding source for short term construction and commercial real estate loans
and to repay borrowed funds. Non-interest bearing checking balances increased
$1.0 million to $3.3 million at September 30, 2000 from $2.3 million at December
31, 1999.
Borrowed funds decreased $8.9 million to $32.2 million at September 30,
2000 from $41.1 million at December 31, 1999. The decrease was primarily due to
repayment of FHLB advances which were called prior to maturity.
Stockholders' equity was $12.2 million at September 30, 2000 compared
with $11.3 million at December 31, 1999. The increase was primarily attributable
to net income for the nine month period which was partially offset by $399,000
in dividend payments. In addition, there was a $374,000 improvement in
accumulated other comprehensive loss partially offset by a $221,000 increase in
treasury stock. Book value increased to $10.26 at September 30, 2000 from $9.14
at December 31, 1999.
Joseph A. Graber, President and Chief Executive Officer, commented:
"During the quarter we experienced a very competitive market for short
term certificates of deposit. We allowed a certain amount of those deposits to
run off and continued to market our non-interest bearing personal, small
business checking accounts and money market deposit accounts." He added, "We
also continued the restructuring of our loan portfolio with the sale of $1.8
million of long term fixed rate mortgage loans. The sale provides liquidity,
improves our interest rate sensitivity and will generate additional servicing
fee income in future periods. We are also reviewing other alternatives to
restructure our balance sheet to improve future earnings and reduce interest
rate risk."
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 served the north side of Chicago from its home office
in Old Town since 1886. It also operates a branch office in Wilmette IL. For 48
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 Information Services, Inc. North
Federal is proud to support local service and non-profit organizations. Its
executives serve on the boards of Lincoln Park Chamber of Commerce, 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 revisions which may be made
to any forward-looking statements to reflect events or circumstances after the
date of such statements or to reflect the occurrence 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, 2000 DEC 31, 1999
<S> <C> <C>
Cash and due from Banks $ 2,301 $ 1,712
Interest-bearing deposits 1,390 1,260
Federal funds sold 491 2,439
Investment in dollar denominated mutual funds 518 466
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TOTAL CASH AND CASH EQUIVALENTS 4,700 5,877
Investment securities available for sale 17,095 17,050
Mortgage-backed securities available for sale 13,746 14,528
Stock in Federal Home Loan Bank of Chicago 1,705 2,205
Loans receivable, net of allowance for loan losses of $262 at
September 30, 2000 and $231 at December 31, 1999 89,012 88,989
Accrued interest receivable 915 965
Premises and equipment, net 806 1,033
Other assets 194 42
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TOTAL ASSETS 128,173 130,689
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LIABILITIES AND STOCKHOLDERS' EQUITY
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Deposit accounts 80,152 76,506
Borrowed Funds 32,190 41,100
Advance payments by borrowers for taxes and insurance 532 1,092
Accrued interest payable and other liabilities 3,096 738
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TOTAL LIABILITIES 115,970 119,436
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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
1,914,075 shares 19 19
Additional paid in capital 13,234 13,393
Retained earnings, substantially restricted 11,988 11,115
Treasury stock, at cost (724,722 shares at September 30, 2000 and
682,868 shares at December 31, 1999) (11,246) (11,025)
Accumulated other comprehensive loss (1,542) (1,916)
Common stock acquired by Employee Stock Ownership Plan (250) (333)
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TOTAL STOCKHOLDERS' EQUITY 12,203 11,253
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TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $128,173 $130,689
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</TABLE>
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NORTH BANCSHARES, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
(IN THOUSANDS, EXCEPT SHARE DATA)
<TABLE>
<CAPTION>
THREE MONTHS ENDED NINE MONTHS ENDED
SEPTEMBER 30, SEPTEMBER 30,
2000 1999 2000 1999
INTEREST INCOME:
<S> <C> <C> <C> <C>
Loans receivable $1,710 $1,611 $5,057 $4,695
Interest-bearing deposits and federal funds sold 49 32 147 163
Investment securities available for sale 298 304 914 860
Mortgage-backed securities available for sale 220 241 676 713
Investment in mutual funds 6 6 17 22
Dividends on FHLB stock 32 34 109 94
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TOTAL INTEREST INCOME 2,315 2,228 6,920 6,547
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INTEREST EXPENSE:
Deposit accounts 871 797 2,588 2,398
Borrowed funds 557 526 1,687 1,503
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TOTAL INTEREST EXPENSE 1,428 1,323 4,275 3,901
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NET INTEREST INCOME BEFORE PROVISION FOR LOAN LOSSES 887 905 2,645 2,646
PROVISION FOR LOAN LOSSES - 9 31 17
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NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES 887 896 2,614 2,629
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NON-INTEREST INCOME:
Gain (loss) on sale of investment securities available for sale - (15) (90) 75
Other than temporary decline in value of securities available for sale - (24) (24) (32)
Gain on sale of real estate - - 1,322 -
Loss on sale of loans (15) - (15) -
Fees and service charges 69 73 218 215
Other 6 4 16 13
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TOTAL NON-INTEREST INCOME 60 38 1,427 271
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NON-INTEREST EXPENSE:
Compensation and benefits 423 409 1,273 1,204
Occupancy expense 104 106 345 325
Professional fees 44 39 159 131
Data processing 52 53 156 156
Advertising and promotion 40 49 125 110
Federal deposit insurance premium 2 23 10 34
Other 89 85 271 255
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TOTAL NON-INTEREST EXPENSE 754 764 2,339 2,215
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INCOME BEFORE INCOME TAXES 193 170 1,702 685
INCOME TAX EXPENSE 67 78 430 267
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NET INCOME $126 92 1,272 418
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EARNINGS PER SHARE:
Basic .11 .08 1.08 .35
Diluted .11 .07 1.07 .34
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AVERAGE SHARES OUTSTANDING:
Basic 1,163,122 1,188,241 1,177,756 1,200,516
Diluted 1,171,620 1,236,616 1,186,756 1,247,372
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</TABLE>
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SELECTED FINANCIAL RATIOS AND OTHER DATA (UNAUDITED):
<TABLE>
<CAPTION>
THREE MONTHS ENDED NINE MONTHS ENDED
SEPTEMBER 30, SEPTEMBER 30,
2000 1999 2000 1999
PERFORMANCE RATIOS:
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<S> <C> <C> <C> <C>
Return on assets (ratio of net income to average total assets) (1) 0.39% 0.28% 1.29% 0.44%
Interest rate spread information:
Average during period (1) 2.09 2.29 2.16 2.28
End of period (1) 2.22 2.41 2.22 2.41
Net interest margin (1) 2.76 2.84 2.73 2.82
Ratio of operating expenses to average assets (1) 2.31 2.36 2.38 2.31
Efficiency ratio .80 .81 .57 .76
Ratio of average interest-earning assets to average interest-bearing
liabilities 115.01 113.19 113.05 113.17
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</TABLE>
<TABLE>
<CAPTION>
SEPTEMBER 30, 2000 DECEMBER 31, 1999
ASSET QUALITY RATIOS:
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<S> <C> <C>
Non-performing assets to total assets 0.00 0.00
Allowance for loan losses to non-performing loans N/A N/A
Allowance for loan losses to loans receivable 0.29 0.26
CAPITAL RATIOS:
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Stockholders' equity to total assets 9.52 8.61
Average Stockholders' equity to average assets 9.18 9.56
Return on Stockholders' equity (ratio of net income to average equity) (1) 14.69 4.36
Shares outstanding-actual 1,189,353 1,231,207
Book value per share 10.26 9.14
Number of full service offices 2 2
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</TABLE>
(1) Annualized for the three and nine month periods presented.
