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) July 14, 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 July 14, 2000, the Registrant issued the attached press release.
Item 7. Financial Statements and Exhibits
(a) Exhibits 1.
Press Release, dated July 14, 2000, regarding second 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: July 14, 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 at Clark Chicago, Illinois 60610 312-664-4320
REALEASE: IMMEDIATELY
CONTACT: Joseph A. Graber or Victor E. Caputo or Martin W. Trofimuk
(312) 664-4320
NORTH BANCSHARES ANNOUNCES
SECOND QUARTER EARNINGS
QUARTERLY DIVIDEND DECLARED
CHICAGO, IL, JULY 14, 2000, - North Bancshares, Inc., the holding
company of North Federal Savings Bank today announced diluted earnings per share
of $.87 for the quarter ended June 30, 2000, an improvement of $.75 per share,
from $.12 per share for the quarter ended June 30, 1999. Net income for the
quarter ended June 30, 2000 amounted to $1,033,000, an increase of $883,000,
from $150,000 for the quarter ended June 30, 1999. The improvement in earnings
per share and net income was primarily related to a $1.3 million gain on the
sale of real estate, partially offset by a $212,000 increase in income tax
expense and a $139,000 decrease in gain on the sale of investment securities
available for sale.
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 August
15, 2000 to stockholders of record as of August 1, 2000.
Net interest income, before provision for loan losses, increased by
$5,000 to $881,000 for the quarter ended June 30, 2000, compared with $876,000
for the quarter ended June 30, 1999.
Non-interest income amounted to $1.3 million for the quarter ended June
30, 2000 compared with $119,000 for the quarter ended June 30, 1999. The
increase was primarily attributable to $1.3 million gain on the sale of real
estate in 2000. In addition, there was a $139,000 decrease in gain on the sale
of investment securities available for sale due to portfolio reatructuring and a
$24,000 increase in other than temporary decline in value of securities
available for sale partially offset by a $6,000 increase in fees and service
charges and other non-interest income.
Non-interest expense increased by $56,000 to $799,000 for the quarter
ended June 30, 2000 compared with $743,000 for the quarter ended June 30, 1999.
The increase was primarily attributable to a $34,000 increase in compensation
and benefits expense related to increased salaries and benefits expense. In
addition, there was a $17,000 increase in professional fees primarily related to
the sale of the Bank's parking facility.
Income tax expense amounted to $306,000 for the quarter ended June 30,
2000 compared with $94,000 for the quarter ended June 30, 1999. The increase in
income tax expense was primarily due to increased income before taxes. The
effective tax rate was 22.9% for the quarter ended June 30, 2000 compared with
38.5% for the quarter ended June 30, 1999. The effective tax rate for the
quarter ended June 30, 2000 is lower due primarily to the utilization of capital
loss carryforwards which had been previously reserved for and would have expired
at the end of this fiscal year.
Net loans receivable totaled $91.2 million at June 30, 2000 compared
with $89.0 million at December 31, 1999. The $2.2 million increase was due
primarily to $1.4 million in multi-family and commercial real estate loans
closed and $1.2 million in commercial and multi-family participation loans
closed during the period. At June 30, 2000, the Bank had $3.5 million in loan
applications pending approval or closing and $1.8 in unused lines of credit.
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The allowance for loan losses to loans receivable increased to 0.29% at June
30, 2000 from 0.26% at December 31, 1999 and amounted to $262,000. The increase
in the allowance reflects the changing composition of the loan portfolio and
general economic conditions. There were no loans delinquent 90 days or more
at June 30, 2000.
Total deposits amounted to $81.1 million at June 30, 2000 compared with
$76.5 million at December 31, 1999. The $4.6 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 reduce borrowed funds. Non-interest bearing checking balances increased
$1.0 million to $3.3 million at June 30, 2000 from $2.3 million at December 31,
1999.
Borrowed funds decreased $4.8 million to $36.3 million at June 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 $12.0 million at June 30, 2000 compared with
$11.3 million at December 31, 1999. The increase was primarily attributable to
net income for the six month period which was partially offset by $267,000 in
dividend payments. In addition, there was a $167,000 increase in treasury
stock.
Joseph A. Graber, President and Chief Executive Officer, commented:
"During the quarter we continued the restructuring of our balance sheet
with the sale of our parking facility, increased multi-family and commercial
real estate lending and the sale of some investment securities. We continue to
grow our non-interest bearing personal and small business checking accounts and
have made use of the brokered certificate of deposit market as a funding source
for shorter term construction and commercial real estate loans." He added,
"Although it now appears that interest rates are close to peaking we will
continue to experience pressure on our margins for the balance of the year."
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 47
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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<CAPTION>
NORTH BANCSHARES, INC.
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
(IN THOUSANDS, EXCEPT SHARE DATA)
(UNAUDITED)
ASSETS JUNE 30, 2000 DEC 31, 1999
<S> <C> <C>
Cash and due from Banks $ 1,553 $ 1,712
Interest-bearing deposits 1,373 1,260
Federal funds sold 2,163 2,439
Investment in dollar denominated mutual funds 1,389 466
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TOTAL CASH AND CASH EQUIVALENTS 6,478 5,877
Investment securities available for sale 16,854 17,050
Mortgage-backed securities available for sale 13,910 14,528
Stock in Federal Home Loan Bank of Chicago 1,805 2,205
Loans receivable, net of allowance for loan losses of $262 at June
30, 2000 and $231 at December 31, 1999 91,175 88,989
Accrued interest receivable 951 965
Premises and equipment, net 812 1,033
Other assets 179 42
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TOTAL ASSETS 132,164 130,689
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LIABILITIES AND STOCKHOLDERS' EQUITY
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Deposit accounts 81,131 76,506
Borrowed Funds 36,265 41,100
Advance payments by borrowers for taxes and insurance 1,140 1,092
Accrued interest payable and other liabilities 1,672 738
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TOTAL LIABILITIES 120,208 119,436
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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 13,258 13,393
Retained earnings, substantially restricted 11,994 11,115
Treasury stock, at cost (715,588 shares at June 30, 2000 and
682,868 shares at December 31, 1999) (11,192) (11,025)
Accumulated other comprehensive loss (1,845) (1,916)
Common stock acquired by Employee Stock Ownership Plan (278) (333)
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TOTAL STOCKHOLDERS' EQUITY 11,956 11,253
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TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $132,164 $130,689
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NORTH BANCSHARES, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
(IN THOUSANDS, EXCEPT SHARE DATA)
THREE MONTHS ENDED SIX MONTHS ENDED
JUNE 30, JUNE 30,
2000 1999 2000 1999
INTEREST INCOME:
<S> <C> <C> <C> <C>
Loans receivable $1,690 $1,556 $3,347 $3,084
Interest-bearing deposits and federal funds sold 59 51 98 131
Investment securities available for sale 314 304 616 556
Mortgage-backed securities available for sale 226 242 456 472
Investment in mutual funds 5 3 11 16
Dividends on FHLB stock 36 31 77 60
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TOTAL INTEREST INCOME 2,330 2,187 4,605 4,319
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INTEREST EXPENSE:
Deposit accounts 877 804 1,717 1,601
Borrowed funds 572 507 1,130 977
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TOTAL INTEREST EXPENSE 1,449 1,311 2,847 2,578
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NET INTEREST INCOME BEFORE PROVISION FOR LOAN LOSSES 881 876 1,758 1,741
PROVISION FOR LOAN LOSSES 27 8 31 8
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NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES 854 868 1,727 1,733
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NON-INTEREST INCOME:
Gain (loss) on sale of investment securities available for sale (90) 49 (90) 82
Other than temporary decline in value of securities available for sale (24) - (24) -
Gain on sale of real estate 1,322 - 1,322 -
Fees and service charges 70 65 149 142
Other 6 5 10 9
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TOTAL NON-INTEREST INCOME 1,284 119 1,367 233
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NON-INTEREST EXPENSE:
Compensation and benefits 429 395 850 795
Occupancy expense 111 107 241 219
Professional fees 66 49 115 92
Data processing 55 52 104 103
Advertising and promotion 41 38 85 61
Federal deposit insurance premium 4 2 8 11
Other 93 100 182 170
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TOTAL NON-INTEREST EXPENSE 799 743 1,585 1,451
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INCOME BEFORE INCOME TAXES 1,339 244 1,509 515
INCOME TAX EXPENSE 306 94 363 189
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NET INCOME 1,033 150 1,146 326
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EARNINGS PER SHARE:
Basic .88 .12 .97 .27
Diluted .87 .12 .96 .26
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AVERAGE SHARES OUTSTANDING:
Basic 1,171,405 1,196,851 1,181,380 1,204,731
Diluted 1,180,442 1,248,706 1,190,906 1,254,032
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SELECTED FINANCIAL RATIOS AND OTHER DATA (UNAUDITED):
THREE MONTHS ENDED SIX MONTHS ENDED
JUNE 30, JUNE 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) 3.12% 0.47% 1.74% 0.51%
Interest rate spread information:
Average during period (1) 2.16 2.26 2.18 2.28
End of period (1) 2.20 2.37 2.20 2.37
Net interest margin (1) 2.70 2.80 2.71 2.81
Ratio of operating expenses to average assets (1) 2.41 2.31 2.41 2.28
Efficiency ratio .37 .75 .51 .74
Ratio of average interest-earning assets to average interest-bearing
liabilities 112.33 112.87 112.13 112.84
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JUNE 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 9.05 8.61
Average Stockholders' equity to average assets 8.62 9.56
Return on Stockholders' equity (ratio of net income to average
equity) (1) 20.19 4.36
Shares outstanding-actual 1,198,487 1,231,207
Book value per share 9.98 9.14
Number of full service offices 2 2
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(1) Annualized for the three and six month periods presented.
