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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) January 19, 2000
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 January 19, 2000, the Registrant issued the attached press
release.
Item 7. Financial Statements and Exhibits
(a) Exhibits
1. Press Release, Dated January 19, 1999, regarding fourth 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: January 19, 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 RELEASE
RELEASE: IMMEDIATE
CONTACT: Joseph A. Graber or Victor E. Caputo or Martin W. Trofimuk
(312) 664-4320
NORTH BANCSHARES ANNOUNCES
FOURTH QUARTER EARNINGS
QUARTERLY DIVIDEND DECLARED
CHICAGO, IL, JANUARY 19, 2000, - North Bancshares, Inc., (NASDAQ-NBSI)
the holding company of North Federal Savings Bank today announced diluted
earnings per share of $.10 for the quarter ended December 31, 1999, compared
with $.14 per share for the quarter ended December 31, 1998. Diluted earnings
per share for the fiscal year ended December 31, 1999, increased by $.03 or
7.5% and amounted to $.43 per share compared with $.40 per share for the fiscal
year ended December 31, 1998. Net income for the quarter ended December 31,
1999 amounted to $118,000, a decrease of $59,000 from $177,000 for the quarter
ended December 31, 1998. Net income for the fiscal year ended December 31,
1999 amounted to $536,000, an increase of $24,000 or 4.7%, from $512,000 for
the fiscal year ended December 31, 1998. The decrease in earnings per share
and net income for the fourth quarter was primarily related to an Illinois
state income tax refund which favorably affected the provision for income tax
in the fourth quarter of 1998 and a writedown of certain investment securities,
during the fourth quarter of 1999, that have been trading at below cost for
an extended period. Without the effect of the tax refund and the writedown
of the investment securities, diluted earning per share for the quarter ended
December 31, 1999 would have increased to $.12 per share from $.10 per share
for the quarter ended December 31, 1998. For the fiscal year ended December
31, 1999, without the effects of the state tax refund and the securities
writedown, diluted earnings per share would have increased to $.48 per share
from $.36 per share and net income would have increased to $602,000 from
$462,000 compared with the fiscal year ended December 31, 1998.
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
February 15, 2000 to stockholders of record as of February 1, 2000.
Net interest income before provision for loan losses increased by
$22,000 to $915,000 for the quarter ended December 31, 1999 compared with
$893,000 for the quarter ended December 31, 1998. The increase was
primarily due to a $87,000 increase in total interest income for the period
partially offset by a $65,000 increase in interest expense. The interest rate
spread at December 31, 1999 improved to 2.42% from 2.36% at December 31, 1998.
Non-interest income amounted to $37,000 for the quarter ended December
31, 1999 compared with $66,000 for the quarter ended December 31, 1998. The
decrease was primarily due to $34,000 in other than temporary decline in
value of securities available for sale.
Non-interest expense increased to $739,000 for the quarter ended
December 31, 1999 and was comparable with $727,000 for the quarter ended
December 31, 1998.
Income tax expense amounted to $95,000 for the quarter ended December 31,
1999 compared with $49,000 for the quarter ended December 31, 1998. The
increase was due primarily to an Illinois state tax refund of approximately
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$53,000 recorded in the fourth quarter of 1998. In addition, there is no tax
benefit associated with the $34,000 other than temporary decline in value of
securities available for sale.
Net loans receivable increased by $6.9 million and totaled $89.0 million
at December 31, 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 year. At
December 31, 1999, the Bank had $1.9 million in loan applications pending
approval or closing and $1.7 million in outstanding unused lines of credit.
Total deposits amounted to $76.5 million at December 31, 1999 compared
with $76.2 million at December 31, 1998. Although total deposits remained
stable there was a $6.0 million increase in checking and money market accounts
partially offset by a $5.1 million decrease in certificates of deposit.
Borrowed funds increased $7.0 millionto $41.1 million at December 31,
1999 from $34.1 million at december 31, 1998. The additional borrowings were
used to fund new loan originations during the fiscal year.
Stockholders' equity was $11.8 million at December 31, 1999 compared
with $13.3 million at December 31, 1998. The decrease was primarily
attributable to a $1.5 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
which was partially offset by a $268,000 increase in other comprehensive
income associated with the minimum pension liability. In addition, the
Company purchased $361,000 in treasury stock.
Joseph A. Graber, President and Chief Executive Officer, commented:
"We are continuing the diversification of our loan portfolio by focusing
on multi-family real estate mortgages, consumer equity loans and commercial
real estate loans. We see deposit growth as an issue this coming year and in
future years and therefore will be devoting more energy and resources to that
end. We will continue to promote our non-interest bearing checking and money
market accounts in order to improve our interest rate spread while using
certificates of deposit and other borrowings as alternate funding sources."
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 45
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)
ASSETS DEC 31, 1999 DEC 31, 1998
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Cash and due from banks $ 1,712 $ 810
Interest-bearing deposits 1,260 2,413
Federal funds sold 2,439 5,722
Investment in dollar-denominated mutual funds 466 801
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TOTAL CASH AND CASH EQUIVALENTS 5,877 8,746
Investment securities available for sale 17,050 14,880
Mortgage-backed securities held to maturity - 4,478
Mortgage-backed securities available for sale 14,528 10,884
Stock in Federal Home Loan Bank of Chicago 2,205 1,705
Loans receivable, net of allowance for loan
losses of $231 at December 31, 1999 and
$214 at December 31, 1998 88,989 82,123
Accrued interest receivable 965 849
Premises and equipment, net 1,033 1,021
Other assets 42 146
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TOTAL ASSETS $130,689 $125,832
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LIABILITIES AND STOCKHOLDERS' EQUITY
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Deposit accounts $ 76,506 $76,222
Borrowed funds 41,100 34,100
Advance payments by borrowers for
taxes and insurance 1,092 1,036
Accrued interest payable and other liabilities 201 1,152
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TOTAL LIABILITIES 118,899 112,510
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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 13,393 13,437
Retained earnings, substantially restricted 11,115 11,127
Treasury stock at cost (682,868 shares at
December 31, 1999 and 651,182 shares at
December 31, 1998) (11,025) (10,664)
Accumulated other comprehensive loss (1,379) (153)
Common stock acquired by Employee Stock
Ownership Plan (333) (444)
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TOTAL STOCKHOLDERS' EQUITY 11,790 13,322
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TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY $130,689 $125,832
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NORTH BANCSHARES, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(IN THOUSANDS, EXCEPT SHARE DATA)
(UNAUDITED)
THREE MONTHS ENDED NINE MONTHS ENDED
DECEMBER 31, DECEMBER 31,
1999 1998 1999 1998
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INTEREST INCOME:
Loans receivable $1,670 $1,515 $6,365 $5,924
Interest-bearing deposits and federal funds sold 41 108 204 472
Investment securities available for sale 304 330 1,164 1,592
Mortgage-backed securities held to maturity - 76 - 340
Mortgage-backed securities available for sale 232 140 945 141
Investment in mutual funds 3 4 25 51
Dividends on FHLB stock 40 30 134 124
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TOTAL INTEREST INCOME 2,290 2,203 8,837 8,644
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INTEREST EXPENSE:
Deposit accounts 810 826 3,211 3,266
Borrowed funds 565 484 2,065 1,838
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TOTAL INTEREST EXPENSE 1,375 1,310 5,276 5,104
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NET INTEREST INCOME BEFORE PROVISION FOR LOAN LOSSES 915 893 3,561 3,540
PROVISION FOR LOAN LOSSES - 6 17 6
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NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES 915 887 3,544 3,534
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NON-INTEREST INCOME:
Gain (loss) on sale of investment securities
available for sale - (6) 75 75
Gain on sale of mortgage loans held for sale - - - 3
Other than temporary decline in value of securities
available for sale (34) - (66) -
Fees and service charges 67 69 282 263
Other 4 3 17 18
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TOTAL NON-INTEREST INCOME 37 66 308 359
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NON-INTEREST EXPENSE:
Compensation and benefits 398 383 1,602 1,695
Occupancy expense 122 105 447 479
Professional fees 41 59 172 264
Data processing 38 50 194 194
Advertising and promotion 22 25 132 138
Federal deposit insurance premium 11 11 45 46
Other 107 94 362 330
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TOTAL NON-INTEREST EXPENSE 739 727 2,954 3,146
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INCOME BEFORE INCOME TAXES 213 226 898 747
INCOME TAX EXPENSE 95 49 362 235
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NET INCOME $118 177 536 512
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EARNINGS PER SHARE:
Basic .10 .15 .45 .42
Diluted .10 .14 .43 .40
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AVERAGE SHARES OUTSTANDING:
Basic 1,188,911 1,211,101 1,200,601 1,230,678
Diluted 1,233,413 1,262,275 1,246,495 1,273,520
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SELECTED FINANCIAL RATIOS AND OTHER DATA (UNAUDITED):
THREE MONTHS ENDED FISCAL YEAR ENDED
DECEMBER 31, DECEMBER 31,
1999 1998 1999 1998
PERFORMANCE RATIOS:
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Return on assets (ratio of net income
to average total assets) (1) 0.36% 0.56% 0.42% 0.41%
Interest Rate Spread Information:
Average during period (1) 2.33 2.31 2.30 2.33
End of period (1) 2.42 2.38 2.42 2.36
Net interest margin (1) 2.84 2.90 2.83 2.94
Ratio of operating expenses to average assets (1) 2.26 2.30 2.30 2.54
Efficiency ratio .78 .76 .76 .81
Ratio of average interest-earning assets
to average interest-bearing liabilities 111.98 113.97 112.76 114.43
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DECEMBER 31, 1999 DECEMBER 31, 1998
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 9.02 10.46
Average Stockholders' equity to average assets 9.59 11.18
Return on Stockholders' equity (ratio of net
income to average equity) (1) 4.34 3.70
Shares outstanding-actual 1,231,207 1,262,893
Book value per share 9.58 10.55
Number of full service offices 2 2
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(1) Annualized for the three month periods presented.