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) January 18, 2002
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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 January 18, 2002, the Registrant issued the attached press release.
Item 7. Financial Statements and Exhibits
(a) Exhibits
1. Press Release, dated January 18, 2002, regarding fourth quarter
2001 earnings, a quarterly dividend and the date of the annual
shareholders meeting.
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: January 18, 2002 /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 at Clark - 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
ANNUAL MEETING DATE
CHICAGO, IL, JANUARY 18, 2002, - 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 December 31, 2001 compared with
$.08 per share for the quarter ended December 31, 2000. Net income for the
quarter ended December 31, 2001 amounted to $114,000, an increase of $16,000,
from $98,000 for the quarter ended December 31, 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
February 15, 2002 to stockholders of record as of February 1, 2002 and set
Friday, April 26, 2002 at 4:00 PM at the main office of the Bank as the date,
time and place of the Company's annual meeting of stockholders.
Net interest income, before provision for loan losses, increased by
$81,000 to $899,000 for the quarter ended December 31, 2001, compared with
$818,000 for the quarter ended December 31, 2000. The increase was primarily
attributable to a $267,000 reduction in total interest expense partially offset
by a $186,000 decrease in interest income.
Non-interest income increased by $70,000 to $99,000 for the quarter
ended December 31, 2001 compared with $29,000 for the quarter ended December 31,
2000. The increase was primarily attributable to a $45,000 loss on the sale of
investment securities recorded during the three months ended December 31, 2000,
with no corresponding loss recorded during 2001.
Non-interest expense increased by $68,000 to $794,000 for the quarter
ended December 31, 2001 compared with $726,000 for the quarter ended December
31, 2000. The increase was primarily attributable to a $42,000 increase in
compensation and benefits expense related to an increase in staff, annual salary
increases and increased benefit costs.
Cash and cash equivalents increased by $10.6 million to $19.7 million
at December 31, 2001 compared with $9.1 million at December 31, 2000. The
increase was due primarily to long term securities which matured or were called
prior to maturity and were not reinvested into long term securities or loans at
December 31, 2001.
Net loans receivable totaled $93.4 million at December 31, 2001
compared with $90.8 million at December 31, 2000. The $2.6 million increase was
due primarily to increased equity line of credit activity during the year. The
Bank originated $35.6 million in loans during the year and recorded $30.5
million in repayments and $2.3 million in loan sales. At December 31, 2001, the
Bank had $6.5 million in loan applications pending approval or closing and $5.6
in unused lines of credit. The company added $13,600 to the allowance for loan
losses during the quarter compared with no provision during the quarter ended
December 31, 2000, due primarily to increased commercial real estate lending
activity. The total allowance for loan losses amounted to $297,600 or 0.32% of
loans receivable at December 31, 2001 compared with $262,000 at December 31,
2000, which amounted to 0.29% of loans receivable. There were no loans
delinquent 60 days or more at December 31, 2001.
Total deposits increased by $6.1 million and amounted to $87.4 million
at December 31, 2001 compared with $81.3 million at December 31, 2000. The
increase was attributable to a $3.7 million increase in certificates of deposit
and a $3.2 million increase in checking and money market accounts partially
offset by an $800,000 decrease in passbook accounts. Non-interest bearing
checking accounts increased 52% to $4.7 million at December 31, 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 weighted average cost of deposits decreased
to 3.64% at December 31, 2001 from 4.43% at December 31, 2000.
Borrowed funds decreased $6.4 million to $31.8 million at December 31,
2001 from $38.2 million at December 31, 2000. The average cost of borrowed funds
decreased to 5.35% at December 31, 2001 compared with 6.05% at December 31,
2000. The decreases were primarily due to repayment of short-term higher cost
FHLB advances.
Stockholders' equity was $13.5 million at December 31, 2001 compared
with $12.8 million at December 31, 2000. The increase was primarily attributable
to $853,000 improvement in other comprehensive loss due primarily to the decline
in interest rates and its positive effect on the value of the securities
portfolios. In addition, retained earnings increased by net income of $485,000
which was offset by $512,000 in dividend payments. Book value increased to
$11.66 at December 31, 2001 compared with $10.82 at December 31, 2000.
Joseph A. Graber, President and Chief Executive Officer, commented:
"I am pleased that despite eleven rate cuts by the Fed this past year
and record refinances we have been able to slightly improve our interest rate
spread. We experienced good core deposit growth this past year and were able to
repay some high cost borrowings with increases in these deposits." He added, "We
enhanced our consumer loan program this past year and more than doubled the
outstanding balance of equity loans outstanding and look forward to continued
improvement in the coming year."
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 53
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.
CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
(IN THOUSANDS, EXCEPT SHARE DATA)
(UNAUDITED)
ASSETS DEC 31, 2001 DEC 31, 2000
Cash and due from Banks $ 1,497 1,930
Interest-bearing deposits 2,446 2,006
Federal funds sold 14,697 4,245
Investment in dollar denominated mutual funds 1,098 903
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TOTAL CASH AND CASH EQUIVALENTS 19,738 9,084
Securities available for sale 7,046 16,961
Mortgage-backed securities available for sale 11,707 13,580
Stock in Federal Home Loan Bank of Chicago 2,770 1,905
Loans receivable, net of allowance for loan losses of $298 at
December 31, 2001 and $262 at December 31, 2000 93,425 90,765
Accrued interest receivable 725 1,016
Premises and equipment, net 743 803
Amounts due from brokers - 376
Other assets 148 91
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TOTAL ASSETS 136,302 134,581
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LIABILITIES AND STOCKHOLDERS' EQUITY
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Deposit accounts 87,448 81,317
Borrowed Funds 31,750 38,200
Advance payments by borrowers for taxes and insurance 770 1,068
Amounts due to brokers 1,000 -
Accrued interest payable and other liabilities 1,841 1,213
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TOTAL LIABILITIES 122,809 121,798
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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 1,156,774 at December 31, 2001 and 1,181,253
at December 31, 2000 19 19
Additional paid in capital 13,251 13,242
Retained earnings, substantially restricted 11,928 11,955
Treasury stock, at cost (757,301 shares at December 31, 2001 and
732,822 shares at December 31, 2000) (11,552) (11,316)
Accumulated other comprehensive loss (42) (895)
Common stock acquired by Employee Stock Ownership Plan (111) (222)
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TOTAL STOCKHOLDERS' EQUITY 13,493 12,783
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TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $136,302 134,581
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NORTH BANCSHARES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
(IN THOUSANDS, EXCEPT SHARE DATA)
(UNAUDITED)
THREE MONTHS ENDED YEAR ENDED
DECEMBER 31, DECEMBER 31,
2001 2000 2001 2000
INTEREST INCOME:
Loans receivable $1,710 1,706 6,842 6,763
Interest-bearing deposits and federal funds sold 98 68 464 215
Securities available for sale 115 294 949 1,208
Mortgage-backed securities available for sale 179 214 789 890
Other interest income 42 48 175 174
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TOTAL INTEREST INCOME 2,144 2,330 9,219 9,250
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INTEREST EXPENSE:
Deposit accounts 766 952 3,452 3,540
Borrowed funds 479 560 2,174 2,247
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TOTAL INTEREST EXPENSE 1,245 1,512 5,626 5,787
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NET INTEREST INCOME BEFORE PROVISION FOR LOAN LOSSES 899 818 3,593 3,463
PROVISION FOR LOAN LOSSES 14 - 36 31
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NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES 885 818 3,557 3,432
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NON-INTEREST INCOME:
Gain (loss) on sale of securities available for sale - (45) 11 (138)
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 17 - 64 (12)
Other non-interest income 82 74 323 302
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TOTAL NON-INTEREST INCOME 99 29 398 1,456
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NON-INTEREST EXPENSE:
Compensation and benefits 459 417 1,812 1,690
Occupancy expense 99 93 457 438
Professional fees 43 63 151 222
Data processing 65 53 218 209
Advertising and promotion 32 16 141 141
Other non-interest expense 96 84 378 365
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TOTAL NON-INTEREST EXPENSE 794 726 3,157 3,065
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INCOME BEFORE INCOME TAXES 190 121 798 1,823
INCOME TAX EXPENSE 76 23 313 453
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NET INCOME $ 114 98 485 1,370
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EARNINGS PER SHARE:
Basic $.10 .08 .42 1.17
Diluted $.10 .08 .42 1.16
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AVERAGE SHARES OUTSTANDING:
Basic 1,144,296 1,156,847 1,149,176 1,175,326
Diluted 1,159,389 1,164,831 1,162,687 1,183,935
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COMPREHENSIVE INCOME $301 745 1,330 2,391
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SELECTED FINANCIAL RATIOS AND OTHER DATA (UNAUDITED):
THREE MONTHS ENDED FISCAL YEAR ENDED
DECEMBER 31, DECEMBER 31,
2001 2000 2001 2000
PERFORMANCE RATIOS:
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Return on assets (ratio of net income to average total assets) (1) 0.33% 0.30% 0.35% 1.04%
Interest rate spread information:
Average during period (1) 2.14 1.87 2.09 2.09
End of period (1) 2.15 2.13 2.15 2.13
Net interest margin (1) 2.69 2.55 2.67 2.68
Ratio of operating expenses to average assets (1) 2.31 2.22 2.30 2.33
Efficiency ratio .80 .86 .79 .62
Ratio of average interest-earning assets to average interest-bearing
liabilities 114.81 114.44 114.03 113.31
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DECEMBER 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 0.32 0.29
CAPITAL RATIOS:
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Stockholders' equity to total assets 9.90 9.50
Average Stockholders' equity to average assets 9.49 8.93
Return on Stockholders' equity (ratio of net income to average
equity) 3.72 11.68
Shares outstanding-actual 1,156,774 1,181,253
Book value per share 11.66 10.82
Number of full service offices 2 2
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(1) Annualized for the three month periods presented.