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
FOURTH QUARTER EARNINGS
QUARTERLY DIVIDEND DECLARED
CHICAGO, IL, JANUARY 19, 2001, - North Bancshares, Inc., the holding
company of North Federal Savings Bank today announced diluted earnings per share
of $.08 for the quarter ended December 31, 2000, a decrease of $.02 per share,
from $.10 per share for the quarter ended December 31, 1999. Net income for the
quarter ended December 31, 2000 amounted to $98,000, a decrease of $20,000, from
$118,000 for the quarter ended December 31, 1999. The decrease in diluted
earnings per share and net income for the quarter was due primarily to a
$142,000 increase in interest on deposit accounts. Diluted earnings per share
for the fiscal year ended December 31, 2000 amounted to $1.16 per share, an
increase of $.72 from $.44 per share for the fiscal year ended December 31,
1999. The improvement in earnings per share and net income for the fiscal year
was primarily related to a $1.3 million gain on the sale of real estate.
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, 2001 to stockholders of record as of February 1, 2001.
Net interest income, before provision for loan losses, decreased by
$97,000 to $818,000 for the quarter ended December 31, 2000, compared with
$915,000 for the quarter ended December 31, 1999. The interest rate spread
decreased to 2.13% at December 31, 2000 from 2.35% at December 31, 1999. The net
interest margin decreased to 2.55% for the quarter ended December 31, 2000 from
2.84% for the quarter ended December 31, 1999.
Non-interest income decreased by $8,000 and amounted to $29,000 for the
quarter ended December 31, 2000 compared with $37,000 for the quarter ended
December 31, 1999. The decrease was primarily attributable to a $45,000 loss on
the sale of investment securities available for sale, partially offset by a
$3,000 increase in fees and service charges. In addition, there was a $34,000
other than temporary decline in value of securities available for sale recorded
during the quarter ended December 31, 1999 with no corresponding decline
recorded during the quarter ended December 31, 2000.
Non-interest expense decreased by $13,000 to $726,000 for the quarter
ended December 31, 2000 compared with $739,000 for the quarter ended December
31, 1999.
Net loans receivable totaled $90.8 million at December 31, 2000
compared with $89.0 million at December 31, 1999. Originations totaled $19.0
million during the fiscal year ended December 31, 2000 compared with $27.6
million during the fiscal year ended December 31, 1999. Repayments totaled $15.1
million and loan sales totaled $2.0 million during the fiscal year ended
December 31, 2000 compared with repayments of $16.7 million and sales of
$425,000 during the fiscal year ended December 31, 1999. At December 31, 2000,
the Bank had $5.1 million in loan applications and participations pending
approval, closing or funding at an average rate of 9.52% and $2.4 million in
unused lines of credit.
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Total deposits amounted to $81.3 million at December 31, 2000 compared
with $76.5 million at December 31, 1999. The $4.8 million increase was primarily
attributable to an increase in certificates of deposit that were used as a
funding source for short term construction and commercial real estate loans and
to repay borrowed funds. Non-interest bearing checking balances increased
$900,000 to $3.2 million at December 31, 2000 from $2.3 million at December 31,
1999, while passbooks and NOW accounts decreased by a similar amount.
Borrowed funds decreased $2.9 million to $38.2 million at December 31,
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 increased $1.5 million and amounted to $12.8
million at December 31, 2000 compared with $11.3 million at December 31, 1999.
The increase was primarily attributable to net income for the fiscal year which
was partially offset by $530,000 in dividend payments. In addition, there was a
$1.0 million improvement in accumulated other comprehensive loss due primarily
to a decline in interest rates and the positive effect the decrease had on the
available for sale portfolio. There was also a $291,000 increase in treasury
stock. Book value increased to $10.82 per share at December 31, 2000 from $9.14
at December 31, 1999.
Joseph A. Graber, President and Chief Executive Officer, commented:
"During the year we sold some lower yielding assets as part of a
restructuring of our balance sheet. Although we incurred a loss on the sales we
were able to reinvest the proceeds into higher yielding loans which will provide
an improved revenue stream in future periods." He added, "Also during the year
we were able to fully utilize, for income tax purposes, capital loss
carryforwards which would have expired on December 31, 2000. We expanded our
commercial real estate and consumer lending and increased our non-interest
bearing checking account balances. We also instituted measures to reduce future
non-interest expenses in order to improve our efficiency."
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 49
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)
ASSETS DEC 31, 2000 DEC 31, 1999
Cash and due from Banks $ 1,930 $ 1,712
Interest-bearing deposits 2,006 1,260
Federal funds sold 4,245 2,439
Investment in dollar denominated mutual funds 903 466
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TOTAL CASH AND CASH EQUIVALENTS 9,084 5,877
Investment securities available for sale 16,961 17,050
Mortgage-backed securities available for sale 13,580 14,528
Stock in Federal Home Loan Bank of Chicago 1,905 2,205
Loans receivable, net of allowance for loan losses of $262 at
December 31, 2000 and $231 at December 31, 1999 90,765 88,989
Accrued interest receivable 1,016 965
Premises and equipment, net 803 1,033
Amounts due from brokers 376 -
Other assets 91 42
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TOTAL ASSETS 134,581 130,689
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LIABILITIES AND STOCKHOLDERS' EQUITY
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Deposit accounts 81,317 76,506
Borrowed Funds 38,200 41,100
Advance payments by borrowers for taxes and insurance 1,068 1,092
Accrued interest payable and other liabilities 1,219 738
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TOTAL LIABILITIES 121,804 119,436
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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 outstanding 19 19
Additional paid in capital 13,242 13,393
Retained earnings, substantially restricted 11,955 11,115
Treasury stock, at cost (732,822 shares at December 31, 2000 and
682,868 shares at December 31, 1999) (11,316) (11,025)
Accumulated other comprehensive loss (895) (1,916)
Common stock acquired by Employee Stock Ownership Plan (222) (333)
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TOTAL STOCKHOLDERS' EQUITY 12,783 11,253
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TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $134,581 $130,689
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NORTH BANCSHARES, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
(IN THOUSANDS, EXCEPT SHARE DATA)
THREE MONTHS ENDED FISCAL YEAR ENDED
DECEMBER 31, DECEMBER 31,
2000 1999 2000 1999
INTEREST INCOME:
Loans receivable $1,706 $1,670 $6,763 $6,365
Interest-bearing deposits and federal funds sold 68 41 215 204
Investment securities available for sale 294 304 1,208 1.164
Mortgage-backed securities available for sale 214 232 890 945
Investment in mutual funds 11 3 28 25
Dividends on FHLB stock 37 40 146 134
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TOTAL INTEREST INCOME 2,330 2,290 9,250 8,837
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INTEREST EXPENSE:
Deposit accounts 952 810 3,540 3,211
Borrowed funds 560 565 2,247 2,065
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TOTAL INTEREST EXPENSE 1,512 1,375 5,787 5,276
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NET INTEREST INCOME BEFORE PROVISION FOR LOAN LOSSES 818 915 3,463 3,561
PROVISION FOR LOAN LOSSES - - 31 17
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NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES 818 915 3,432 3,544
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NON-INTEREST INCOME:
(Loss) gain on sale of investment securities available for sale (45) - (135) 75
Other than temporary decline in value of securities available for sale - (34) (24) (66)
Gain on sale of real estate - - 1,322 -
Loss on sale of loans - - (15) -
Fees and service charges 70 67 288 282
Other 4 4 20 17
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TOTAL NON-INTEREST INCOME 29 37 1,456 308
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NON-INTEREST EXPENSE:
Compensation and benefits 417 398 1,690 1,602
Occupancy expense 93 122 438 447
Professional fees 63 41 222 172
Data processing 53 38 209 194
Advertising and promotion 16 22 141 132
Federal deposit insurance premium 2 11 12 45
Other 82 107 353 362
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TOTAL NON-INTEREST EXPENSE 726 739 3,065 2,954
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INCOME BEFORE INCOME TAXES 121 213 1,823 898
INCOME TAX EXPENSE 23 95 453 362
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NET INCOME $ 98 118 1,370 536
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EARNINGS PER SHARE:
Basic $ .08 .10 1.17 .45
Diluted .08 .10 1.16 .44
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AVERAGE SHARES OUTSTANDING:
Basic 1,156,847 1,188,911 1,175,326 1,200,601
Diluted 1,164,831 1,233,413 1,183,935 1,226,498
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SELECTED FINANCIAL RATIOS AND OTHER DATA (UNAUDITED):
THREE MONTHS ENDED FISCAL YEAR ENDED
DECEMBER 31, DECEMBER 31,
2000 1999 2000 1999
PERFORMANCE RATIOS:
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Return on assets (ratio of net income to average total assets) (1) 0.30% 0.36% 1.04% 0.42%
Interest rate spread information:
Average during period (1) 1.87 2.33 2.09 2.30
End of period (1) 2.13 2.35 2.13 2.35
Net interest margin (1) 2.55 2.84 2.68 2.83
Ratio of operating expenses to average assets (1) 2.22 2.26 2.33 2.30
Efficiency ratio .86 .78 .62 .76
Ratio of average interest-earning assets to average interest-bearing
liabilities 114.44 111.98 113.31 112.76
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DECEMBER 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 0.29 0.26
CAPITAL RATIOS:
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Stockholders' equity to total assets 9.50 8.61
Average Stockholders' equity to average assets 8.93 9.56
Return on Stockholders' equity (ratio of net income to average
equity) (1) 11.68 4.36
Shares outstanding-actual 1,181,253 1,231,207
Book value per share 10.82 9.14
Number of full service offices 2 2
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(1) Annualized for the three month periods presented.