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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, 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 April 14, 2000, the Registrant issued the attached press
release.
Item 7. Financial Statements and Exhibits
(a) Exhibits
1. Press Release, Dated April 14, 2000, regarding first quarter 2000
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, 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: IMMEDIATELY
Joseph A. Graber or Victor E. Caputo or Martin W. Trofimuk
(312) 664-4320
NORTH BANCSHARES ANNOUNCES
FIRST QUARTER EARNINGS
QUARTERLY DIVIDEND DECLARED
CHICAGO, IL, APRIL 14, 2000, - North Bancshares, Inc., (NASDAQ-NBSI),
the holding company of North Federal Savings Bank today announced diluted
earnings per share of $.09 for the quarter ended March 31, 2000, a decrease
of $.05 per share from $.15 per share for the quarter ended March 31, 1999.
Net income for the quarter ended March 31, 2000 amounted to $113,000, a
decrease of $63,000 from $176,000 for the quarter ended March 31, 1999. The
decrease in net income and earnings per share is primarily related to a
$33,000 decrease in gain on the sale of investment securities available for
sale. In addition, there was a $21,000 increase in advertising and promotion
expense and a $21,000 increase in compensation and benefits expense over the
prior year quarter.
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 May
15, 2000 to stockholders of record as of May 1, 2000.
Net interest income before proivsion for loan losses was $877,000 for
the quarter ended March 31, 2000, compared with $865,000 for the quarter
ended March 31, 1999. The increase is primarily attributable to an increase
in average interest-earning assets from $122.6 million for the quarter ended
March 31, 1999 to $128.6 million for the quarter ended March 31, 2000
partially offset by a decrease in the net interest margin to 2.73% for the
quarter ended March 31, 2000 compared with 2.82% for the quarter ended March
31, 1999. The interest rate spread at March 31, 2000 was 2.34% compared with
2.35% at December 31, 1999.
Non-interest income decreased by $31,000 to $83,000 for the quarter
ended March 31, 2000, compared with $114,000 for the quarter ended March 31,
1999. The decrease was primarily attributable to a $33,000 decrease in gain
on the sale of investment securities available for sale.
Non-interest expense increased by $78,000 to $786,000 for the quarter
ended March 31, 2000, compared with $708,000 for the quarter ended March 31,
1999. There was a $21,000 increase in advertising and promotion expense
primarily related to a deposit account promotion and a $21,000 increase in
compensation and benefits expense related to salary increases and increased
health insurance costs. In addition, there was an $18,000 increase in
occupancy expense primarily related to increased real estate taxes and
expenses related to the sale of the Bank's employee parking lot.
Income tax expense amounted to $57,000 for the quarter ended March 31,
2000, compared with $95,000 for the quarter ended March 31, 1999. The
decrease was primarily related to a decrease in income before taxes. The
effective tax rate amounted to 33.5% for the quarter ended March 31, 2000,
compared with 35.1% for the quarter ended March 31, 1999.
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Net loans receivable totaled $90.7 at March 31, 2000 compared with $89.0
million at December 31, 1999. The $1.7 million increase was due primarily to
increases in commercial and consumer real estate lending during the quarter.
At March 31, 2000, the Bank had $675,000 in loan applications pending
approval or closing and $1.4 million in unused outstanding lines of credit.
Total deposits increased by $1.8 million and amounted to $78.3 at March
31, 2000 compared with $76.5 million at December 31, 1999. The increase was
primarily attributable to a $1.9 increase in certificates of deposit.
Borrowed funds decreased $265,000 $40.8 million at March 31, 2000 from
$41.1 million at December 31, 1999. The decrease was attributable to partial
repayment of a $3.0 million FHLB advance, the balance of which was refinanced
during the quarter.
Stockholders' equity was $11.0 million at March 31, 2000, compared with
$11.2 million at December 31, 1999. The decrease was primarily attributable
to a $102,000 decrease in additional paid in capital primarily related to the
exercise of stock options. In addition, there was an $84,000 increase in
treasury stock related to stock repurchases partially offset by stock options
exercised.
Joseph A. Graber, President and Chief Executive Officer, commented:
"During the quarter we made two important announcements that will help
us to achieve our overall business plan objectives. We announced the planned
sale of a parcel of real estate that has been used as an employee parking
facility. The sale would generate an after tax gain of approximately $950,000
or $.76 per diluted share and reduce future non-interest expenses by
approximately $50,000 per year due to the elimination of property taxes and
maintenance." He added, "the hiring of Joseph M. Perri, as Senior Vice
President and Loan Department Manager provides us the experience and
opportunity to expand and enhance our loan portfolio to include higher
yielding, shorter term commercial real estate loans. We believe that the
long term results of these decisions provide us the opportunity to unlock
additional value for our shareholders."
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 46 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 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
our 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)
ASSETS MARCH 31, 2000 DEC 31, 1999
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Cash and due from banks $ 1,403 $ 1,712
Interest-bearing deposits 1,683 1,260
Federal funds sold 1,175 2,439
Investment in dollar denominated mutual funds 238 466
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TOTAL CASH AND CASH EQUIVALENTS 4,499 5,877
Investment securities available for sale 17,049 17,050
Mortgage-backed securities available for sale 14,182 14,528
Stock in Federal Home Loan Bank of Chicago 2,205 2,205
Loans receivable, net of allowance for loan
losses of $235 at March 31, 2000 and $231 at
December 31, 1999 90,746 88,989
Accrued interest receivable 971 965
Due from broker 1,254 -
Premises and equipment, net 1,011 1,033
Other assets 96 42
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TOTAL ASSETS $132,013 $130,689
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LIABILITIES AND STOCKHOLDERS' EQUITY
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Deposit accounts $ 78,281 $76,506
Borrowed funds 40,835 41,100
Advance payments by borrowers for
taxes and insurance 686 1,092
Accrued interest payable and other liabilities 1,195 738
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TOTAL LIABILITIES 120,997 119,436
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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 1,914,105 shares 19 19
Additional paid-in capital 13,291 13,393
Retained earnings, substantially restricted 11,093 11,115
Treasury stock at cost (702,705 shares at
March 31, 2000 and 682,868 shares at
December 31, 1999) (11,109) (11,025)
Accumulated other comprehensive loss (1,973) (1,916)
Common stock acquired by Employee Stock
Ownership Plan (305) (333)
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TOTAL STOCKHOLDERS' EQUITY 11,016 11,253
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TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY $132,013 $130,689
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NORTH BANCSHARES, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
(IN THOUSANDS, EXCEPT SHARE DATA)
THREE MONTHS ENDED
MARCH 31,
2000 1999
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INTEREST INCOME:
Loans receivable $1,657 $1,528
Interest-bearing deposits and federal funds sold 39 80
Investment securities available for sale 302 252
Mortgage-backed securities available for sale 230 230
Investment in mutual funds 6 13
Dividends on FHLB stock 41 29
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TOTAL INTEREST INCOME 2,275 2,132
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INTEREST EXPENSE:
Deposit accounts 840 797
Borrowed funds 558 470
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TOTAL INTEREST EXPENSE 1,398 1,267
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NET INTEREST INCOME BEFORE PROVISION FOR LOAN LOSSES 877 865
PROVISION FOR LOAN LOSSES 4 -
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NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES 873 865
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NON-INTEREST INCOME:
Gain on sale of investment securities
available for sale - 33
Fees and service charges 79 77
Other 4 4
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TOTAL NON-INTEREST INCOME 83 114
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NON-INTEREST EXPENSE:
Compensation and benefits 421 400
Occupancy expense 130 112
Professional fees 49 43
Data processing 49 51
Advertising and promotion 44 23
Federal deposit insurance premium 4 9
Other 89 70
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TOTAL NON-INTEREST EXPENSE 786 708
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INCOME BEFORE INCOME TAXES 170 271
INCOME TAX EXPENSE 57 95
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NET INCOME $ 113 $ 176
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EARNINGS PER SHARE:
Basic .10 .15
Diluted .09 .14
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AVERAGE SHARES OUTSTANDING:
Basic 1,187,579 1,204,652
Diluted 1,198,768 1,252,295
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SELECTED FINANCIAL RATIOS AND OTHER DATA (UNAUDITED):
THREE MONTHS ENDED
MARCH 31,
2000 1999
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PERFORMANCE RATIOS:
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Return on assets (ratio of net income
to average total assets) (1) 0.35% 0.56%
Interest Rate Spread Information:
Average during period (1) 2.22 2.29
End of period (1) 2.34 2.38
Net interest margin (1) 2.73 2.82
Ratio of operating expenses to average assets (1) 2.40 2.25
Efficiency ratio .82 .72
Ratio of average interest-earning assets
to average interest-bearing liabilities 111.56 112.72
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MARCH 31, 2000 DECEMBER 31, 1999
ASSET QUALITY RATIOS:
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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 0.26 0.26
CAPITAL RATIOS:
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Stockholders' equity to total assets 8.35 8.61
Average Stockholders' equity to average assets 8.55 9.56
Return on Stockholders' equity (ratio of net
income to average equity) (1) 4.05 4.36
Shares outstanding-actual 1,211,370 1,231,207
Book value per share 9.09 9.14
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Number of full service offices 2 2
(1) Annualized for the three month periods presented.