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 16, 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 July 16, 2001, the Registrant issued the attached press release.
Item 7. Financial Statements and Exhibits
(a) Exhibits
1. Press Release, dated July 16, 2001, regarding second
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: July 16, 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
SECOND QUARTER EARNINGS
QUARTERLY DIVIDEND DECLARED
CHICAGO, IL, JULY 16, 2001, - 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 June 30, 2001, a decrease of
$.77 per share, from $.87 per share for the quarter ended June 30, 2000. Net
income for the quarter ended June 30, 2001 amounted to $110,000, a decrease of
$923,000, from $1,033,000 for the quarter ended June 30, 2000. The decrease in
earnings per share and net income was primarily related to a $1.3 million gain
on the sale of real estate recorded during the second quarter of 2000.
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, 2001 to stockholders of record as of August 1, 2001.
Net interest income, before provision for loan losses, increased by
$9,000 to $890,000 for the quarter ended June 30, 2001, compared with $881,000
for the quarter ended June 30, 2000.
Non-interest income decreased by $1.2 million to $95,000 for the
quarter ended June 30, 2001 compared with $1.3 million for the quarter ended
June 30, 2000. The decrease was primarily attributable to a $1.3 million gain on
the sale of real estate recorded during the second quarter of 2000, which was
partially offset by $90,000 in losses on securities sales. There was a $20,000
increase in gain on sale of mortgage loans and other non- interest income during
the quarter.
Non-interest expense decreased by $4,000 to $795,000 for the quarter
ended June 30, 2001 compared with $799,000 for the quarter ended June 30, 2000.
The decrease was primarily attributable to a $28,000 decrease in professional
fees and advertising expense partially offset by a $16,000 increase in
compensation and benefits.
Income tax expense decreased by $233,000 and amounted to $73,000 for
the quarter ended June 30, 2001 compared with $306,000 for the quarter ended
June 30, 2000. The decrease in income tax expense was primarily due to decreased
income before taxes. The effective tax rate was 39.8% for the quarter ended June
30, 2001 compared with 22.9% for the quarter ended June 30, 2000. 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.
Net loans receivable totaled $91.9 million at June 30, 2001 compared
with $90.8 million at December 31, 2000. The $1.1 million increase was due
primarily to increased commercial real estate and equity line of credit activity
during the period. The average yield on loans receivable remained stable at
7.47% for the three months ended June 30, 2001 and June 30, 2000. The Bank
originated $15.3 million in loans during the period and recorded $13.3 million
in repayments and $900,000 in loan sales. At June 30, 2001, the Bank had $5.1
million in loan applications pending approval or closing and $3.9 in unused
lines of credit. The allowance for loan losses amounted to 0.30% of loans
receivable at June 30, 2001 and amounted to $273,000. There were no loans
delinquent 90 days or more at June 30, 2001.
Total deposits amounted to $84.6 million at June 30, 2001 compared with
$81.3 million at December 31, 2000. The $3.3 million increase was attributable
to a $2.1 million increase in certificates of deposit and a $1.7 million
increase in checking and money market accounts partially offset by a $400,000
decrease in passbook accounts. Non-interest bearing checking accounts increased
11.8% to $3.5 million at June 30, 2001 compared with $3.1 million at December
31, 2000. Management has been replacing shorter-term higher rate certificates
with longer-term lower rate certificates in order to reduce the overall cost of
funds and to reduce interest rate sensitivity in future periods. The average
cost of deposits decreased to 4.46% for the three months ended June 30, 2001
from 4.56% for the three months ended June 30, 2000.
Borrowed funds increased $900,000 to $39.1 million at June 30, 2001
from $38.2 million at December 31, 2000. The average cost of borrowed funds
decreased to 5.73% for the three months ended June 30, 2001 compared with
5.84%for the three months ended June 30, 2000. The decrease was primarily due to
refinancing short-term higher cost FHLB advances into FHLB advances with lower
rates and longer terms.
Stockholders' equity was $12.7 million at June 30, 2001 compared with
$12.8 million at December 31, 2000. The decrease was primarily attributable to
$226,000 increase in treasury stock partially offset by a $107,000 improvement
in other comprehensive loss. Book value increased to $10.96 at June 30, 2001
compared with $10.82 at December 31, 2000.
Joseph A. Graber, President and Chief Executive Officer, commented:
"During the first six months of the year we were able to take advantage
of the decline in interest rates by extending maturities and reducing the
overall cost on $15.0 million in FHLB advances in addition to reducing the cost
on both short and long term deposit products." He added, "I am pleased with the
progress we are making on improving our margins and diversifying our asset and
liability portfolios. We have taken steps to enhance and expand our consumer
loan and secondary market operations. Our loan servicing portfolio and servicing
fee income continues to grow as we sell fixed rate loans into the secondary
market."
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 51
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 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)
ASSETS JUNE 30, 2001 DEC 31, 2000
(UNAUDITED)
Cash and due from Banks $ 2,064 $ 1,903
Interest-bearing deposits 2,270 2,006
Federal funds sold 9,789 4,245
Investment in dollar denominated mutual funds 191 903
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TOTAL CASH AND CASH EQUIVALENTS 14,314 9,084
Securities available for sale at fair value 16,130 16,961
Mortgage-backed securities available for sale at fair value 12,830 13,580
Stock in Federal Home Loan Bank of Chicago 2,692 1,905
Loans receivable, net of allowance for loan losses of $273 at
June 30, 2001 and $262 at December 31, 2000 91,901 90,765
Accrued interest receivable 1,012 1,016
Premises and equipment, net 758 803
Amounts due from brokers - 376
Other assets 182 91
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TOTAL ASSETS 139,819 134,581
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LIABILITIES AND STOCKHOLDERS' EQUITY
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Deposit accounts 84,644 81,317
Borrowed Funds 39,100 38,200
Advance payments by borrowers for taxes and insurance 1,094 1,068
Accrued interest payable and other liabilities 2,294 1,213
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TOTAL LIABILITIES 127,132 121,798
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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 1,157,774 at June 30, 2001 and 1,181,253 at
December 31, 2000 19 19
Additional paid in capital 13,224 13,242
Retained earnings, substantially restricted 11,941 11,955
Treasury stock, at cost (756,301 shares at June 30, 2001 and
732,822 shares at December 31, 2000) (11,542) (11,316)
Accumulated other comprehensive loss (788) (895)
Common stock acquired by Employee Stock Ownership Plan (167) (222)
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TOTAL STOCKHOLDERS' EQUITY 12,687 12,783
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TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $139,819 $134,581
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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,
2001 2000 2001 2000
INTEREST INCOME:
Loans receivable $1,696 1,690 3,403 3,347
Interest-bearing deposits and federal funds sold 118 59 246 98
Securities available for sale 274 314 560 616
Mortgage-backed securities available for sale 205 226 416 456
Other interest income 41 41 84 88
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TOTAL INTEREST INCOME 2,334 2,330 4,709 4,605
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INTEREST EXPENSE:
Deposit accounts 887 877 1,809 1,717
Borrowed funds 557 572 1,137 1,130
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TOTAL INTEREST EXPENSE 1,444 1,449 2,946 2,847
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NET INTEREST INCOME BEFORE PROVISION FOR LOAN LOSSES 890 881 1,763 1,758
PROVISION FOR LOAN LOSSES 7 27 11 31
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NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES 883 854 1,752 1,727
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NON-INTEREST INCOME:
Gain (loss) on sale of securities available for sale - (90) 11 (90)
Other than temporary decline in value of securities
available for sale - (24) - (24)
Gain on sale of real estate - 1,322 - 1,322
Gain on sale of mortgage loans 9 - 44 -
Other non-interest income 86 76 158 159
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TOTAL NON-INTEREST INCOME 95 1,284 213 1,367
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NON-INTEREST EXPENSE:
Compensation and benefits 445 429 900 850
Occupancy expense 124 111 248 241
Professional fees 43 66 71 115
Data processing 55 55 104 104
Advertising and promotion 36 41 59 85
Other non-interest expense 92 97 183 190
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TOTAL NON-INTEREST EXPENSE 795 799 1,565 1,585
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INCOME BEFORE INCOME TAXES 183 1,339 400 1,509
INCOME TAX EXPENSE 73 306 157 363
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NET INCOME $110 1,033 243 1,146
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EARNINGS PER SHARE:
Basic $.10 .88 .21 .97
Diluted $.10 .87 .21 .96
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AVERAGE SHARES OUTSTANDING:
Basic 1,139,347 1,171,405 1,146,620 1,181,380
Diluted 1,152,318 1,180,442 1,158,579 1,190,906
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COMPREHENSIVE INCOME $(74) 1,161 350 1,217
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SELECTED FINANCIAL RATIOS AND OTHER DATA (UNAUDITED):
THREE MONTHS ENDED SIX MONTHS ENDED
JUNE 30, JUNE 30,
2001 2000 2001 2000
PERFORMANCE RATIOS:
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Return on assets (ratio of net income to average total assets) (1) 0.32% 3.12% 0.37% 1.74%
Interest rate spread information:
Average during period (1) 2.07 2.15 2.04 2.18
End of period (1) 2.14 2.20 2.14 2.20
Net interest margin (1) 2.65 2.70 2.64 2.71
Ratio of operating expenses to average assets (1) 2.31 2.41 2.29 2.41
Efficiency ratio .81 .37 .79 .51
Ratio of average interest-earning assets to average interest-bearing
liabilities 113.60 112.33 113.44 112.13
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JUNE 30, 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 9.07 9.50
Average Stockholders' equity to average assets 9.29 8.93
Return on Stockholders' equity (ratio of net income to
average equity)(1) 3.79 11.68
Shares outstanding-actual 1,157,774 1,181,253
Book value per share 10.96 10.82
Number of full service offices 2 2
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(1) Annualized for the three and six month periods presented.