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) October 15, 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 October 15, 2001, the Registrant issued the attached press release.
Item 7. Financial Statements and Exhibits
(a) Exhibits
1. Press Release, dated October 15, 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: October 15, 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
THIRD QUARTER EARNINGS
QUARTERLY DIVIDEND DECLARED
CHICAGO, IL, OCTOBER 15, 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 September 30, 2001 compared
with $.11 per share for the quarter ended September 30, 2000. Net income for the
quarter ended September 30, 2001 amounted to $128,000, an increase of $2,000,
from $126,000 for the quarter ended September 30, 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
November 15, 2001 to stockholders of record as of November 1, 2001.
Net interest income, before provision for loan losses, increased by
$44,000 to $931,000 for the quarter ended September 30, 2001, compared with
$887,000 for the quarter ended September 30, 2000.
Non-interest income increased by $26,000 to $86,000 for the quarter
ended September 30, 2001 compared with $60,000 for the quarter ended September
30, 2000. The increase was primarily attributable to a $15,000 loss on the sale
of loans recorded during the three months ended September 30, 2000, with no
corresponding loss recorded during 2001.
Non-interest expense increased by $44,000 to $798,000 for the quarter
ended September 30, 2001 compared with $754,000 for the quarter ended September
30, 2000. The increase was primarily attributable to a $30,000 increase in
compensation and benefits expense related to annual salary increases and
increased benefit costs.
Total cash and cash equivalents increased to $18.5 million at September
30, 2001 from $9.1 million at December 31, 2000. The increase is primarily
attributable to proceeds from longer term investment securities which were
called prior to maturity and at September 30, 2001 were invested short term.
Management intends to utilize a portion of the excess liquidity to repay a $5.0
million FHLB advance which matures in October 2001.
Net loans receivable totaled $91.8 million at September 30, 2001
compared with $90.8 million at December 31, 2000. The $1.0 million increase was
due primarily to increased equity line of credit activity during the period. The
average yield on loans receivable was unchanged at 7.55% for the three months
ended September 30, 2001 and September 30, 2000. The Bank originated $21.1
million in loans during the period and recorded $19.0 million in repayments and
$1.1 million in loan sales. At September 30, 2001, the Bank had $5.2 million in
loan applications pending approval or closing and $4.2 in unused lines of
credit. The company added $11,000 to the allowance for loan losses which
amounted to $284,000 or 0.31% of loans receivable at September 30, 2001 compared
with an allowance of $262,000 at December 31, 2000 which amounted to 0.29% of
loans receivable. There were no loans delinquent 60 days or more at September
30, 2001.
<Page>
Total deposits amounted to $85.7 million at September 30, 2001 compared
with $81.3 million at December 31, 2000. The $4.4 million increase was
attributable to a $2.5 million increase in certificates of deposit and a
$2.4 million increase in checking and money market accounts partially offset by
a $500,000 decrease in passbook accounts. Non-interest bearing checking accounts
increased 29.2% to $4.1 million at September 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 4.32% for the three months ended
September 30, 2001 from 4.56% for the three months ended September 30, 2000.
Borrowed funds increased $900,000 to $39.1 million at September 30,
2001 from $38.2 million at December 31, 2000. The average cost of borrowed funds
decreased to 5.71% for the three months ended September 30, 2001 compared with
6.33%for the three months ended September 30, 2000. The decrease was primarily
due to refinancing short-term higher cost FHLB advances into FHLB advances with
lower rates and longer terms. Management plans to repay a $5.0 million FHLB
advance in October 2001 using excess liquidity. The maturing advance carries an
interest rate of 6.65%. The repayment of this advance would reduce the overall
cost of borrowed funds to 5.42%.
Stockholders' equity was $13.3 million at September 30, 2001 compared
with $12.8 million at December 31, 2000. The increase was primarily attributable
to $658,000 improvement in other comprehensive loss due primarily to the decline
in interest rates and its positive effect on the value of the securities
portfolios. Book value increased to $11.47 at September 30, 2001 compared with
$10.82 at December 31, 2000.
Joseph A. Graber, President and Chief Executive Officer, commented:
"During the quarter we expanded our consumer loan operation and
implemented several programs to enhance the consumer loan portfolio and our
secondary market operations. We are already seeing increased consumer loan
activity and positive results from the new programs." He added, "We have been
able to increase our interest rate spread during the last two quarters due
primarily to our efforts at reducing overall cost of funds and expanding our
core deposit base. Going forward, spreads will be under significant pressure
during the fourth quarter and early next year due to aggressive rate cutting by
the Federal Reserve as a result of the terrorist incidents and the slowing
economy. Even though our cost of funds should continue to improve the reduction
in rates will place added pressure on the overall yield of our investment
portfolio."
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 52
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 or have served on the boards of a variety of local community
organizations. 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 SEPT 30, 2001 DEC 31, 2000
(UNAUDITED)
Cash and due from Banks $ 2,142 $ 1,903
Interest-bearing deposits 1,784 2,006
Federal funds sold 13,592 4,245
Investment in dollar denominated mutual funds 1,022 903
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TOTAL CASH AND CASH EQUIVALENTS 18,540 9,084
Securities available for sale at fair value 14,558 16,961
Mortgage-backed securities available for sale at fair value 12,627 13,580
Stock in Federal Home Loan Bank of Chicago 2,727 1,905
Loans receivable, net of allowance for loan losses of $284 at
September 30, 2001 and $262 at December 31, 2000 91,836 90,765
Accrued interest receivable 865 1,016
Premises and equipment, net 739 803
Amounts due from brokers - 376
Other assets 166 91
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TOTAL ASSETS 142,058 134,581
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LIABILITIES AND STOCKHOLDERS' EQUITY
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Deposit accounts 85,687 81,317
Borrowed Funds 39,100 38,200
Advance payments by borrowers for taxes and insurance 1,460 1,068
Accrued interest payable and other liabilities 2,529 1,213
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TOTAL LIABILITIES 128,776 121,798
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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 September 30, 2001 and 1,181,253
at December 31, 2000 19 19
Additional paid in capital 13,240 13,242
Retained earnings, substantially restricted 11,941 11,955
Treasury stock, at cost (756,301 shares at September 30, 2001 and
732,822 shares at December 31, 2000) (11,542) (11,316)
Accumulated other comprehensive loss (237) (895)
Common stock acquired by Employee Stock Ownership Plan (139) (222)
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TOTAL STOCKHOLDERS' EQUITY 13,282 12,783
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TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $142,058 $134,581
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NORTH BANCSHARES, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
(IN THOUSANDS, EXCEPT SHARE DATA)
THREE MONTHS ENDED NINE MONTHS ENDED
SEPT 30, SEPT 30,
2001 2000 2001 2000
INTEREST INCOME:
Loans receivable $1,729 1,710 5,132 5,057
Interest-bearing deposits and federal funds sold 120 49 366 147
Securities available for sale 274 298 834 914
Mortgage-backed securities available for sale 194 220 610 676
Other interest income 49 38 133 126
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TOTAL INTEREST INCOME 2,366 2,315 7,075 6,920
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INTEREST EXPENSE:
Deposit accounts 877 871 2,686 2,588
Borrowed funds 558 557 1,695 1,687
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TOTAL INTEREST EXPENSE 1,435 1,428 4,381 4,275
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NET INTEREST INCOME BEFORE PROVISION FOR LOAN LOSSES 931 887 2,694 2,645
PROVISION FOR LOAN LOSSES 11 - 22 31
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NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES 920 887 2,672 2,614
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NON-INTEREST INCOME:
Gain (loss) on sale of securities available for sale - - 11 (90)
Other than temporary decline in value of securities
available for sale - - - (24)
Gain on sale of real estate - - - 1,322
Gain (loss) on sale of mortgage loans 3 (15) 47 (15)
Other non-interest income 83 75 241 234
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TOTAL NON-INTEREST INCOME 86 60 299 1,427
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NON-INTEREST EXPENSE:
Compensation and benefits 453 423 1,353 1,273
Occupancy expense 110 104 358 345
Professional fees 37 44 108 159
Data processing 49 52 153 156
Advertising and promotion 50 40 109 125
Other non-interest expense 99 91 282 281
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TOTAL NON-INTEREST EXPENSE 798 754 2,363 2,339
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INCOME BEFORE INCOME TAXES 208 193 608 1,702
INCOME TAX EXPENSE 80 67 237 430
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NET INCOME $128 126 371 1,272
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EARNINGS PER SHARE:
Basic $.11 .11 .32 1.08
Diluted $.11 .11 .32 1.07
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AVERAGE SHARES OUTSTANDING:
Basic 1,141,148 1,163,122 1,147,113 1,177,756
Diluted 1,157,293 1,171,620 1,164,736 1,186,756
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COMPREHENSIVE INCOME $679 429 1,029 1,646
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SELECTED FINANCIAL RATIOS AND OTHER DATA (UNAUDITED):
THREE MONTHS ENDED NINE MONTHS ENDED
SEPT 30, SEPT 30,
2001 2000 2001 2000
PERFORMANCE RATIOS:
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Return on assets (ratio of net income to average
total assets) (1) 0.36% 0.39% 0.36% 1.29%
Interest rate spread information:
Average during period (1) 2.13 2.09 2.08 2.16
End of period (1) 2.19 2.22 2.19 2.22
Net interest margin (1) 2.72 2.76 2.67 2.73
Ratio of operating expenses to average assets (1) 2.27 2.31 2.28 2.38
Efficiency ratio .78 .80 .79 .57
Ratio of average interest-earning assets to average
interest-bearing liabilities 113.97 115.01 113.58 113.05
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SEPT 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 0.31 0.29
CAPITAL RATIOS:
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Stockholders' equity to total assets 9.35 9.50
Average Stockholders' equity to average assets 9.36 8.93
Return on Stockholders' equity (ratio of net income
to average equity) (1) 3.83 11.68
Shares outstanding-actual 1,157,774 1,181,253
Book value per share 11.47 10.82
Number of full service offices 2 2
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(1) Annualized for the three and nine month periods presented.