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 17, 2001
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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)
Item 5. Other Events
On April 17, 2001, the Registrant issued the attached press release.
Item 7. Financial Statements and Exhibits
(a) Exhibits
1. Press Release, dated April 17, 2001, regarding first
quarter 2001 earnings and a quarterly dividend.
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 17, 2001 /S/ Joseph A. Graber
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Joseph A. Graber
President and
Chief Executive Officer
EXHIBIT
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
FIRST QUARTER EARNINGS
QUARTERLY DIVIDEND DECLARED
CHICAGO, IL, APRIL 17, 2001, - North Bancshares, Inc., (NASDAQ-NBSI),
the holding company of North Federal Savings Bank today announced diluted
earnings per share of $.11 for the quarter ended March 31, 2001, an increase of
$.02 per share, from $.09 per share for the quarter ended March 31, 2000. Net
income for the quarter ended March 31, 2001 amounted to $133,000, an increase of
$20,000 from $113,000 for the quarter ended March 31, 2000. The increase in net
income and earnings per share is primarily related to a $35,000 increase in
non-interest income and a $16,000 decrease in non-interest expenses partially
offset by a $27,000 increase in income tax expense. In addition, there was a
slight decrease in the average number of outstanding shares.
On April 16, 2001, the Board of Directors of the Company declared a
quarterly dividend of $.11 per share to be paid on May 15, 2001 to stockholders
of record as of May 1, 2001.
Net interest income before provision for loan losses remained stable at
$873,000 for the quarter ended March 31, 2001, compared with $877,000 for the
quarter ended March 31, 2000. The slight decrease was primarily attributable to
an increase in the average cost of interest-bearing liabilities to 5.12% for the
three months ended March 31, 2001 from 4.85% for the three months ended March
31, 2000 which offset an increase in the average yield on interest-earning
assets to 7.15% for the three months ended March 31, 2001 from 7.07% for the
three months ended March 31, 2000. There was an increase in average net earning
assets from $13.3 million for the three months ended March 31, 2001 to $15.5
million for the three months ended March 31, 2001.
Non-interest income increased by $35,000 to $118,000 for the quarter
ended March 31, 2001 compared with $83,000 for the quarter ended March 31, 2000.
The increase was primarily attributable to a $35,000 increase in mortgage
servicing rights.
Non-interest expense decreased by $16,000 to $770,000 for the quarter
ended March 31, 2000 compared with $786,000 for the quarter ended March 31,
2000. There was a $21,000 decrease in advertising expense and a $21,000 decrease
in professional fees which were partially offset by a $34,000 increase in
compensation and benefits expense primarily related to annual salary increases
and increased pension plan expense.
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Net loans receivable totaled $88.6 million at March 31, 2001 compared
with $90.8 million at December 31, 2000. At March 31, 2001, the Bank had $8.6
million in loan applications pending approval or closing with $4.4 million
scheduled to close in April 2001and $3.7 million in unused outstanding lines of
credit.
Total deposits increased by $500,000 and amounted to $81.8 million at
March 31, 2001 compared with $81.3 million at December 31, 2000. There was a
$1.9 million increase in money market deposit accounts and non-interest bearing
checking accounts during the three months ended March 31, 2001, which was
partially offset by an $1.0 million decrease in NOW checking accounts and
certificates of deposit.
Stockholders' equity was $12.9 million at March 31, 2001 compared with
$12.8 million at December 31, 2000. The increase was primarily attributable to a
$291,000 improvement in other comprehensive loss primarily attributable to a
decline in interest rates and the positive effect on securities that are
classified available for sale. The increase was partially offset by a $202,000
increase in treasury stock related to stock repurchases. Book value per share
increased to $11.11 at March 31, 2001 from $10.82 at December 31, 2000.
Joseph A. Graber, President and Chief Executive Officer, commented:
"During the quarter the Federal Reserve began the process of reducing
short term interest rates. We have made progress on reducing our cost of funds
and non-interest expenses and anticipate improvement in our margins and
efficiency during the second and third quarters." He added, "We have continued
to diversify our loan portfolio with higher yielding commercial real estate
loans and have begun offering participations in these loans to other local
financial institutions. These participation loans, when completed, will not only
reduce the credit risk but increase the overall yield on our loan portfolio and
provide additional servicing fee income."
North Bancshares, Inc. is the holding company for North Federal Savings
Bank. Its common stock trades on The Nasdaq Stock Market(R) 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 50
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 and the Old Town Chamber of Commerce.
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 MARCH 31, 2001 DEC 31, 2000
Cash and due from Banks $ 2,034 $ 1,903
Interest-bearing deposits 3,234 2,006
Federal funds sold 7,729 4,245
Investment in dollar denominated mutual funds 365 903
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TOTAL CASH AND CASH EQUIVALENTS 13,362 9,084
Investment securities available for sale 16,320 16,961
Mortgage-backed securities available for sale 13,447 13,580
Stock in Federal Home Loan Bank of Chicago 2,155 1,905
Loans receivable, net of allowance for loan losses of $266 at March
31, 2001 and $262 at December 31, 2000 88,629 90,765
Accrued interest receivable 895 1,016
Premises and equipment, net 782 803
Amounts due from brokers - 376
Other assets 156 91
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TOTAL ASSETS 135,746 134,581
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LIABILITIES AND STOCKHOLDERS' EQUITY
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Deposit accounts 81,789 81,317
Borrowed Funds 38,100 38,200
Advance payments by borrowers for taxes and insurance 663 1,068
Accrued interest payable and other liabilities 2,280 1,213
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TOTAL LIABILITIES 122,832 121,798
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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
and outstanding 1,162,253 at March 31, 2001 and 1,181,253 at
December 31, 2000 19 19
Additional paid in capital 13,253 13,242
Retained earnings, substantially restricted 11,958 11,955
Treasury stock, at cost (751,822 shares at March 31, 2001 and
732,822 shares at December 31, 2000) (11,518) (11,316)
Accumulated other comprehensive loss (604) (895)
Common stock acquired by Employee Stock Ownership Plan (194) (222)
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TOTAL STOCKHOLDERS' EQUITY 12,914 12,783
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TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $135,746 $134,581
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NORTH BANCSHARES, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
(IN THOUSANDS, EXCEPT SHARE DATA)
THREE MONTHS ENDED
MARCH 31,
2001 2000
INTEREST INCOME:
Loans receivable $1,707 $1,657
Interest-bearing deposits and federal funds sold 128 39
Investment securities available for sale 286 302
Mortgage-backed securities available for sale 211 230
Other interest income 43 47
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TOTAL INTEREST INCOME 2,375 2,275
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INTEREST EXPENSE:
Deposit accounts 922 840
Borrowed funds 580 558
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TOTAL INTEREST EXPENSE 1,502 1,398
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NET INTEREST INCOME BEFORE PROVISION FOR LOAN LOSSES 873 877
PROVISION FOR LOAN LOSSES 4 4
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NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES 869 873
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NON-INTEREST INCOME:
Gain on sale of investment securities available for sale 11 -
Mortgage servicing rights 35 -
Fees and service charges 68 79
Other 4 4
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TOTAL NON-INTEREST INCOME 118 83
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NON-INTEREST EXPENSE:
Compensation and benefits 455 421
Occupancy expense 124 130
Professional fees 28 49
Data processing 49 49
Advertising and promotion 23 44
Other 91 93
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TOTAL NON-INTEREST EXPENSE 770 786
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INCOME BEFORE INCOME TAXES 217 170
INCOME TAX EXPENSE 84 57
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NET INCOME 133 113
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EARNINGS PER SHARE:
Basic .12 .10
Diluted .11 .09
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AVERAGE SHARES OUTSTANDING:
Basic 1,150,440 1,187,579
Diluted 1,163,440 1,198,768
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SELECTED FINANCIAL RATIOS AND OTHER DATA (UNAUDITED):
THREE MONTHS ENDED
MARCH 31,
2001 2000
PERFORMANCE RATIOS:
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Return on assets (ratio of net income to average total assets) (1) 0.34% 0.35%
Interest rate spread information:
Average during period (1) 2.03 2.22
End of period (1) 2.07 2.34
Net interest margin (1) 2.63 2.73
Ratio of operating expenses to average assets (1) 2.27 2.40
Efficiency Ratio .78 .82
Ratio of average interest-earning assets to average interest-bearing
liabilities 113.23 111.56
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MARCH 31, 2001 DECEMBER 31, 2000
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 0.30 0.29
CAPITAL RATIOS:
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Stockholders' equity to total assets 9.51 9.50
Average Stockholders' equity to average assets 9.49 8.93
Return on Stockholders' equity (ratio of net income to average
equity) (1) 4.12 11.68
Shares outstanding-actual 1,162,253 1,181,253
Book value per share 11.11 10.82
Number of full service offices 2 2
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(1) Annualized for the three month periods presented.