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 15, 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 April 15, 2002, the Registrant issued the attached press release.
Item 7. Financial Statements and Exhibits
(a) Exhibits
1. Press Release, dated April 15, 2002, regarding first quarter 2002
earnings and declaration of a regular 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 15, 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
IMMEDIATELY
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 15, 2002, - North Bancshares, Inc., (NASDAQ-NBSI),
the holding company of North Federal Savings Bank today announced earnings
increased to $.14 for basic and $.13 per diluted share for the quarter ended
March 31, 2002, compared with $.12 and $.11 per basic and diluted share for the
quarter ended March 31, 2001. Net income for the quarter ended March 31, 2002
increased by $24,000 and amounted to $157,000 compared with $133,000 for the
quarter ended March 31, 2001.
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 May
15, 2002 to stockholders of record as of May 1, 2002.
Net interest income, before provision for loan losses, increased by
$95,000 to $968,000 for the quarter ended March 31, 2002, compared with $873,000
for the quarter ended March 31, 2001. The increase was attributable to a
$356,000 reduction in total interest expense partially offset by a $261,000
decrease in interest income. The net interest rate spread increased to 2.42%
for the three months ended March 31, 2002 from 2.03% for the three months ended
March 31, 2001.
Non-interest income decreased by $33,000 to $85,000 for the quarter
ended March 31, 2002 compared with $118,000 for the quarter ended March 31,
2001. The decrease was primarily attributable to a $24,000 decrease in gain on
the sale of mortgage loans.
Non-interest expense increased by $23,000 to $793,000 for the quarter
ended March 31, 2002 compared with $770,000 for the quarter ended March 31,
2001. The increase was primarily attributable to a $48,000 increase in
professional fees and other non-interest expense partially offset by an $18,000
decrease in compensation expense.
Cash and cash equivalents decreased by $6.1 million to $13.6 million at
March 31, 2002 compared with $19.7 million at December 31, 2001. The decrease
was due primarily to a $7.1 million decrease in federal funds sold. These funds
were reinvested into longer-term higher-yielding securities available for sale
and loans.
Net loans receivable totaled $93.9 million at March 31, 2002 compared
with $93.4 million at December 31, 2001. The Bank originated $13.5 million in
loans during the three months ended March 31, 2002 and recorded $12.5 million in
repayments and $509,000 in loan sales compared with $5.3 million in
originations, $7.1 in repayments and $319,000 in loan sales during the three
months ended March 31, 2001. At March 31, 2002, the Bank had $5.8 million in
loan applications pending approval or closing and $8.3 in unused lines of
credit. The company added $17,500 to the allowance for loan losses during the
quarter compared with $4,000 during the quarter ended March 31, 2001, due
primarily to increased commercial real estate and consumer lending activity. The
total allowance for loan losses amounted to $315,100 or 0.33% of loans
receivable at March 31, 2002 compared with $297,600 at December 31, 2001, which
amounted to 0.32% of loans receivable. There were no loans delinquent 60 days or
more at March 31, 2002.
Total deposits increased by $300,000 and amounted to $87.7 million at
March 31, 2002 compared with $87.4 million at December 31, 2001. The increase
was primarily attributable to a $900,000 increase in money market deposit
accounts partially offset by a $400,000 decrease in non-interest bearing
checking accounts. The weighted average cost of deposits for the three months
ended March 31, 2002 decreased to 3.46% from 4.74% for the three months ended
March 31, 2001.
Stockholders' equity was $13.3 million at March 31, 2002 compared with
$13.5 million at December 31, 2001. The decrease was primarily attributable to a
$252,000 increase in other comprehensive loss and a $61,000 increase in deferred
compensation. Retained earnings increased by net income of $157,000 which was
partially offset by $128,000 in dividend payments. Book value decreased to
$11.45 at March 31, 2002 compared with $11.66 at December 31, 2001.
Joseph A. Graber, President and Chief Executive Officer, commented:
"We are very excited about establishing a new branch office, to be
located in the Humbolt Park Neighborhood of Chicago. For several years we have
been lending in this community and we feel that the location will provide a
source for continuing to grow our core deposits." He added, "The current low
interest rate environment is providing us the opportunity to improve our margins
while we continue to diversify the loan portfolio into commercial real estate
and consumer equity lines of credit."
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 54
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 MARCH 31, 2002 DEC 31, 2001
Cash and due from Banks $ 2,403 1,497
Interest-bearing deposits 3,316 2,446
Federal funds sold 7,637 14,697
Investment in dollar denominated mutual funds 268 1,098
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TOTAL CASH AND CASH EQUIVALENTS 13,624 19,738
Securities available for sale 23,647 18,753
Stock in Federal Home Loan Bank of Chicago 2,810 2,770
Loans receivable, net of allowance for loan losses of $315 at
March 31, 2002 and $298 at December 31, 2001 93,917 93,425
Accrued interest receivable 733 725
Premises and equipment, net 782 743
Other assets 695 607
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TOTAL ASSETS 136,208 136,761
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LIABILITIES AND STOCKHOLDERS' EQUITY
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Deposits
Interest-bearing 83,676 82,964
Non-interest-bearing 4,053 4,484
Borrowed funds 32,750 31,750
Advance payments by borrowers for taxes and insurance 408 770
Amounts due to broker - 1,000
Accrued interest payable and other liabilities 1,990 2,300
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TOTAL LIABILITIES 122,877 123,268
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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 1,164,035 at March 31, 2002 and 1,156,774 at
December 31, 2001 19 19
Additional paid in capital 13,226 13,251
Retained earnings, substantially restricted 11,957 11,928
Treasury stock, at cost (750,040 shares at March 31, 2002 and
757,301 shares at December 31, 2001) (11,433) (11,552)
Accumulated other comprehensive loss (294) (42)
Stock awards (61) -
Common stock acquired by Employee Stock Ownership Plan (83) (111)
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TOTAL STOCKHOLDERS' EQUITY 13,331 13,493
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TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $136,208 136,761
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NORTH BANCSHARES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
(IN THOUSANDS, EXCEPT SHARE DATA)
(UNAUDITED)
THREE MONTHS ENDED
MARCH 31,
2002 2001
INTEREST INCOME:
Loans receivable $1,719 1,707
Interest-bearing deposits and federal funds sold 58 128
Securities available for sale 303 497
Dividends on FHLB stock and other 34 43
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TOTAL INTEREST INCOME 2,114 2,375
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INTEREST EXPENSE:
Deposit accounts 720 922
Borrowed funds 426 580
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TOTAL INTEREST EXPENSE 1,146 1,502
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NET INTEREST INCOME BEFORE PROVISION FOR LOAN LOSSES 968 873
PROVISION FOR LOAN LOSSES 18 4
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NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES 950 869
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NON-INTEREST INCOME:
Gain on sale of securities available for sale - 11
Gain on sale of mortgage loans held for sale 11 35
Other non-interest income 74 72
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TOTAL NON-INTEREST INCOME 85 118
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NON-INTEREST EXPENSE:
Compensation and benefits 437 455
Occupancy expense 110 124
Professional fees 56 28
Data processing 55 49
Advertising and promotion 24 23
Other 111 91
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TOTAL NON-INTEREST EXPENSE 793 770
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INCOME BEFORE INCOME TAXES 242 217
INCOME TAX EXPENSE 85 84
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NET INCOME $ 157 133
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EARNINGS PER SHARE:
Basic $.14 .12
Diluted $.14 .11
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AVERAGE SHARES OUTSTANDING:
Basic 1,151,616 1,150,440
Diluted 1,161,030 1,163,381
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COMPREHENSIVE (LOSS) INCOME $(95) 424
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SELECTED FINANCIAL RATIOS AND OTHER DATA (UNAUDITED):
THREE MONTHS ENDED
MARCH 31,
2002 2001
PERFORMANCE RATIOS:
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Return on assets (ratio of net income to average total assets) (1) 0.46% 0.34%
Return on Stockholders' equity (ratio of net income to average
equity) (1) 4.66 3.72
Interest rate spread information:
Average during period (1) 2.42 2.03
End of period (1) 2.41 2.07
Net interest margin (1) 2.93 2.63
Ratio of operating expenses to average assets (1) 2.34 2.27
Efficiency Ratio .75 .78
Ratio of average interest-earning assets to average interest-bearing
liabilities 114.57 113.23
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MARCH 31, 2002 DECEMBER 31, 2001
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 0.33 0.32
CAPITAL RATIOS:
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Stockholders' equity to total assets 9.79 9.90
Average Stockholders' equity to average assets 9.93 9.49
Shares outstanding-actual 1,164,035 1,156,774
Book value per share 11.45 11.66
Number of full service offices 2 2
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(1) Annualized for the three month periods presented.