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, 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 October 15, 2002, the Registrant issued the attached press release.
Item 7. Financial Statements and Exhibits
(a) Exhibits
1. Press Release, dated October 15, 2002, regarding third 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: October 15, 2002 /S/ Joseph A. Graber
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Joseph A. Graber
President and
Chief Executive Officer
CERTIFICATION
Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, each of the
undersigned hereby certifies in his capacity as an officer of North Bancshares,
Inc. (the "Company") that the Current Report on Form 8-K for the event on
October 15, 2002 fully complies with the requirements of Section 13(a) of the
Securities Exchange Act of 1934 and that the information contained in such
report fairly presents, in all material respects, the financial condition and
results of operations of the Company as of the dates and for the periods
presented in the financial statements included in such report.
Dated: October 15, 2002 /S/ Joseph A. Graber
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Joseph A. Graber
President and Chief Executive Officer
Dated: October 15, 2002 /S/ Martin W. Trofimuk
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Martin W. Trofimuk
Vice President, Treasurer and
Chief Financial Officer
EXHIBIT
NORTH BANCSHARES, INC. NEWS
100 West North Avenue - Chicago, Illinois 60610 - 312-664-4320
REALEASE: 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, 2002, - North Bancshares, Inc., (NASDAQ-NBSI),
the holding company of North Federal Savings Bank today announced earnings
increased to $.21 for both basic and diluted shares for the quarter ended
September 30, 2002, compared with $.11 for both basic and diluted shares for the
quarter ended September 30, 2001. Net income for the quarter ended September 30,
2002 increased by $114,000 and amounted to $242,000 compared with $128,000 for
the quarter ended September 30, 2001. The increase in net income and earnings
per share are primarily related to an increase in gain on the sale of securities
available for sale.
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, 2002 to stockholders of record as of November 1, 2002.
Net interest income, before provision for loan losses, increased by
$120,000 to $1.1 million for the quarter ended September 30, 2002, compared with
$931,000 for the quarter ended September 30, 2001. The increase was attributable
to a $337,000 reduction in total interest expense partially offset by a $217,000
decrease in interest income.
Non-interest income increased by $116,000 to $202,000 for the quarter
ended September 30, 2002 compared with $86,000 for the quarter ended September
30, 2001. The increase was primarily attributable to a $98,000 increase in gain
on the sale of securities available for sale.
Non-interest expense increased by $48,000 to $846,000 for the quarter
ended September 30, 2002 compared with $798,000 for the quarter ended September
30, 2001. The increase was primarily attributable to a $23,000 increase in
compensation and benefits expense and a $21,000 increase in other non-interest
expense.
Cash and cash equivalents decreased by $7.0 million to $12.7 million at
September 30, 2002 compared with $19.7 million at December 31, 2001. The
decrease was due primarily to a $6.9 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 $92.6 million at September 30, 2002
compared with $93.4 million at December 31, 2001. The Bank originated $32.4
million in loans during the nine months ended September 30, 2002 and recorded
$31.1 million in repayments and $2.1 million in loan sales compared with $21.1
million in originations, $19.0 million in repayments and $1.1 million in loan
sales during the nine months ended September 30, 2001. At September 30, 2002,
the Bank had $2.7 million in loan applications pending approval or closing and
$8.5 million in unused lines of credit. The company did not add to the allowance
for loan losses during the quarter compared with $11,000 during the quarter
ended September 30, 2001, due primarily to a decrease in commercial real estate
loans in the portfolio. The total allowance for loan losses amounted to $326,000
or 0.35% of loans receivable at September 30, 2002 compared with $298,600 at
December 31, 2001, which amounted to 0.32% of loans receivable. There were two
loans delinquent 60 days or more at September 30, 2002 and amounted to
approximately $83,000. One of the loans in the amount of $68,000 was brought
current on October 1, 2002.
Total deposits increased by $2.1 million and amounted to $89.5 million
at September 30, 2002 compared with $87.4 million at December 31, 2001. The
increase was primarily attributable to a $1.1 million increase in money market
deposit
accounts and a $600,000 increase in passbook accounts. The weighted average cost
of deposits for the three months ended September 30, 2002 decreased to 3.06%
from 4.46% for the three months ended September 30, 2001.
Stockholders' equity was $13.8 million at September 30, 2002 compared
with $13.5 million at December 31, 2001. The increase was primarily attributable
to a $301,000 increase in other comprehensive income (loss). Retained earnings
increased by net income of $532,000 which was partially offset by $383,000 in
dividend payments. The increases were partially offset by a $193,000 increase in
treasury stock and a $55,000 increase in unearned stock awards. Book value
increased to $12.12 at September 30, 2002 compared with $11.66 at December 31,
2001.
Joseph A. Graber, President and Chief Executive Officer, commented:
"I am very pleased with this quarters results. We have been able to
take advantage of the low interest rate environment by taking gains on the sale
of certain fixed rate securities and reinvesting the proceeds into higher
yielding adjustable rate loans and mortgage-backed securities without adversely
affecting our interest rate spread." He added, "Our credit quality remains
excellent and we signed a lease for a new branch office this quarter which we
anticipate occupying around the summer of 2003 once construction is complete."
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 56
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 SEPTEMBER 30, 2002 DECEMBER 31, 2001
Cash and due from Banks $ 1,702 1,497
Interest-bearing deposits 2,888 2,446
Federal funds sold 7,778 14,697
Investment in dollar denominated mutual funds 319 1,098
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TOTAL CASH AND CASH EQUIVALENTS 12,687 19,738
Securities available for sale 28,102 18,753
Stock in Federal Home Loan Bank of Chicago 3,891 2,770
Loans receivable, net of allowance for loan losses of
$326 at September 30, 2002 and $298 at December 31, 2001 92,576 93,425
Accrued interest receivable 661 725
Premises and equipment, net 861 743
Other assets 786 607
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TOTAL ASSETS 139,564 136,761
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LIABILITIES AND STOCKHOLDERS' EQUITY
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Deposits
Interest-bearing 84,855 82,964
Non-interest-bearing 4,667 4,484
Borrowed Funds 31,750 31,750
Advance payments by borrowers for taxes and insurance 1,444 770
Amounts due to broker 237 1,000
Accrued interest payable and other liabilities 2,819 2,300
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TOTAL LIABILITIES 125,772 123,268
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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; 1,914,075
issued; outstanding 1,138,029 at September 30, 2002 and 1,156,774 at
December 31, 2001 19 19
Additional paid in capital 13,265 13,251
Retained earnings, substantially restricted 12,077 11,928
Treasury stock, at cost (776,046 shares at September 30, 2002 and
757,301 shares at December 31, 2001) (11,745) (11,552)
Accumulated other comprehensive income (loss) 259 (42)
Unearned stock awards (55) -
Common stock acquired by Employee Stock Ownership Plan (28) (111)
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TOTAL STOCKHOLDERS' EQUITY 13,792 13,493
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TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $139,564 136,761
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NORTH BANCSHARES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
(IN THOUSANDS, EXCEPT SHARE DATA)
THREE MONTHS ENDED NINE MONTHS ENDED
SEPT 30, SEPT 30,
2002 2001 2002 2001
INTEREST INCOME:
Loans receivable $1,688 1,729 5,097 5,132
Interest-bearing deposits and federal funds sold 42 120 136 366
Securities available for sale 369 468 1,031 1,444
Other interest income 50 49 132 133
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TOTAL INTEREST INCOME 2,149 2,366 6,396 7,075
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INTEREST EXPENSE:
Deposit accounts 655 877 2,063 2,686
Borrowed funds 443 558 1,311 1,695
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TOTAL INTEREST EXPENSE 1,098 1,435 3,374 4,381
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NET INTEREST INCOME BEFORE PROVISION FOR LOAN LOSSES 1,051 931 3,022 2,694
PROVISION FOR LOAN LOSSES - 11 28 22
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NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES 1,051 920 2,994 2,672
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NON-INTEREST INCOME:
Gain on sale of securities available for sale 98 - 118 11
Gain on sale of mortgage loans held for sale 16 3 41 47
Service charges and other non-interest income 88 83 241 241
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TOTAL NON-INTEREST INCOME 202 86 400 299
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NON-INTEREST EXPENSE:
Compensation and benefits 476 453 1,372 1,353
Occupancy expense 110 110 336 358
Professional fees 56 37 176 108
Data processing 66 49 190 153
Advertising and promotion 18 50 73 109
Other non-interest expense 120 99 380 282
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TOTAL NON-INTEREST EXPENSE 846 798 2,527 2,363
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INCOME BEFORE INCOME TAXES 407 208 867 608
INCOME TAX EXPENSE 165 80 335 237
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NET INCOME $242 128 532 371
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EARNINGS PER SHARE:
Basic $.21 .11 .46 .32
Diluted $.21 .11 .46 .32
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AVERAGE SHARES OUTSTANDING:
Basic 1,150,321 1,141,148 1,152,765 1,147,113
Diluted 1,170,468 1,157,293 1,168,263 1,164,736
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COMPREHENSIVE INCOME $409 679 833 1,029
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SELECTED FINANCIAL RATIOS AND OTHER DATA (UNAUDITED):
THREE MONTHS ENDED NINE MONTHS ENDED
SEPT 30, SEPT 30,
2002 2001 2002 2001
PERFORMANCE RATIOS:
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Return on assets (ratio of net income to average total assets) (1) 0.69% 0.36% 0.51% 0.36%
Return on Stockholders' equity (ratio of net income to average equity) (1) 7.03 3.91 5.87 3.83
Interest rate spread information:
Average during period (1) 2.57 2.13 2.49 2.08
End of period (1) 2.60 2.19 2.60 2.19
Net interest margin (1) 3.06 2.72 2.99 2.67
Ratio of operating expenses to average assets (1) 2.39 2.27 2.43 2.28
Efficiency ratio (2) .68 .78 .74 .79
Ratio of average interest-earning assets to average interest-bearing
liabilities 115.38 113.97 114.88 113.58
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SEPTEMBER 30, 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 0.35 0.32
CAPITAL RATIOS:
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Stockholders' equity to total assets 9.88 9.90
Average Stockholders' equity to average assets 9.81 9.49
Shares outstanding-actual 1,138,029 1,156,774
Book value per share 12.12 11.66
Number of full service offices 2 2
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(1) Annualized for the three and nine month periods presented.
(2) Includes gains on sales.