EXHIBIT 99
4
FOR IMMEDIATE RELEASE
July 23, 1996
Contact:
David M. Bradley, President & Chief Executive Officer
North Central Bancshares, Inc.
Phone: (515) 576-7531
NORTH CENTRAL BANCSHARES, INC. ANNOUNCES EARNINGS
(NASDAQ: FFFD)
FORT DODGE, IOWA -- David M. Bradley, President of North Central Bancshares,
Inc., (the "Company") the holding company for First Federal Savings Bank of Fort
Dodge (the "Bank"), announced today that the Company earned $1,006,000 or $0.26
per share during the second quarter of 1996, compared to $620,000 or $0.16 per
share during the second quarter of 1995, an increase of $386,000 or 62.3%. For
the six months ended June 30, 1996 the net earnings were $1,662,000 or $0.43 per
share, as compared to $1,168,000 or $0.30 per share for the corresponding period
a year ago, an increase of $494,000 or 42.3%.
"We are pleased with our second quarter earnings and year-to-date performance.
Noninterest income continues to be a strong component of our earnings stream.
The second quarter was our first full quarter as a stock holding company," said
Bradley.
On March 20, 1996, First Federal Savings Bank completed a reorganization from a
mutual holding company form of organization to a stock holding company form of
organization. Pursuant to this transaction, the Bank became a wholly-owned
subsidiary of North Central Bancshares, Inc. and the Company replaced the Bank
as the issuer listed by The Nasdaq Stock Market. In addition to the exchange of
the Bank's common stock for 1,385,590 shares of the Company's stock, the Company
sold an additional 2,625,467 shares of stock in a subscription offering. This
stock offering resulted in net proceeds for the Company of $25.4 million.
Total assets at June 30, 1996 amount to $194.3 million compared to $179.9 at
December 31, 1995. The primary reason for the $14.4 million or 8.0% increase in
total assets was the $25.4 million in net proceeds received from the stock
offering, net of the decrease in borrowed funds.
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Cash and cash equivalents increased $2.7 million or 88.1%, securities increased
$3.6 million, or 15.2%, and net loans increased $8.0 million, or 5.4% from
December 31, 1995. Deposits increased $2.3 million, or 1.9%. and other borrowed
funds decreased by $14.1 million, or 64.1% from December 31, 1995.
Nonperforming assets were 0.21% of total assets as of June 30, 1996 compared to
0.13% as of March 31, 1996 and .17% as of December 31, 1995. The allowance for
loan losses increased to $1.9 million or 1.16% of total loans at June 30, 1996,
compared to $1.7 million or 1.15% of total loans at December 31, 1995.
The net interest margin for the quarter ended June 30, 1996 was 4.57% compared
to 3.59% for the same quarter in 1995. Net interest income for the quarter
ending June 30, 1996 was $2.1 million, an increase of 48.1% from $1.4 million
for the corresponding period a year ago. Interest income for the quarter ended
June 30, 1996 increased $540,000, or 16.9%, compared with the corresponding
period in 1995, due primarily to increased average balances of interest-earning
assets. Interest expense decreased $151,000 or 8.5%, when comparing the second
quarter of 1996 with the corresponding period of 1995. The decrease in interest
expense was due primarily to decreased average balances of borrowed funds.
The Bank's provision for loan losses decreased $55,000, to $60,000, for the
three months ended June 30, 1996 from $115,000 for the corresponding period of
the prior year. The Bank establishes provisions for loan losses, which are
charged to operations, in order to maintain the allowance for loan losses at a
level which is deemed to be appropriate based upon an assessment of prior
conditions, the volume and type of loans in the Bank's portfolio, and other
factors related to the collectiblity of the Bank's loan portfolio.
Noninterest income, excluding the gain on sale of securities available for sale,
increased $92,000 or 23.5% and noninterest expense increased $47,000 or 5.2%, in
the second quarter of 1996 compared to the corresponding period of 1995.
Noninterest income, excluding the gain on sale of securities available for sale,
increased $164,000 or 22.5%, and noninterest expense increased $244,000 or
13.6%, for the six months ended June 30, 1996 as compared to the corresponding
period of 1995.
Book value, or stockholders' equity, per share at June 30, 1996 was $13.90 and
stockholders' equity to total assets was 28.7%. Stockholders' equity was $55.7
million at June 30, 1996 compared to $29.9 million at December 31, 1995. The
ratio of stockholders' equity to total assets was 16.6% as of December 31, 1995.
North Central Bancshares, Inc. serves north central Iowa at 4 full service
locations in Fort Dodge, Nevada and Ames, Iowa through its wholly-owned
subsidiary, First Federal Savings Bank of Fort Dodge, headquartered in Fort
Dodge, Iowa. The Bank's deposits are insured by the Federal Deposit Insurance
Corporation. The Company's stock is traded on The Nasdaq National Market under
the symbol "FFFD".
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FINANCIAL HIGHLIGHTS OF NORTH CENTER BANCSHARES, INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Financial Condition
(DOLLARS IN THOUSANDS, EXCEPT PER SHARE AND SHARE DATA) JUNE 30, 1996 December 31, 1995
--------------- -----------------
Assets
Cash and cash equivalents $5,778 $3,071
Securities available for sale 16,923 7,799
Securities held to maturity (Market value $10.6 million and 10,499 15,995
$16.2 million, respectively)
Loans (net of allowance of loan loss of $1.9 million and $1.7 155,857 147,872
million, respectively)
Other assets 5,226 5,193
----------------- -----------------
Total Assets $194,283 $179,930
================= =================
Liabilities $129,021 $126,672
Other borrowed funds 7,872 21,940
Other liabilities 1,654 1,418
----------------- -----------------
Total Liabilities 138,547 150,030
Stockholders' Equity 55,736 29,900
----------------- -----------------
Total Liabilities and Stockholders' Equity $194,283 $179,930
================= =================
Stockholders' equity to total assets 28.69% 16.62%
================= =================
Book value per share $13.90 $7.45
================= =================
Total shares outstanding 4,011,057 4,011,057
================= =================
Condensed Consolidated Statements of Income
(DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA
For the Three Months For the Six Months
Ended June 30, Ended June 30,
1996 1995 1996 1995
------ ------ ------ -----
Interest income $3,734 $3,194 $7,312 $6,248
Interest expense 1,607 1,758 3,444 3,374
--------------- --------------- ---------------- -----------------
Net interest income 2,127 1,436 3,868 2,874
Provision for loan loss 60 115 120 130
--------------- --------------- ---------------- -----------------
Net interest income after provision for loan 2,067 1,321 3,748 2,744
loss
Noninterest income 482 390 890 727
Gain on the sale of securities available for sale -- 182 14 182
Noninterest expense 965 917 2,041 1,797
--------------- --------------- ---------------- -----------------
Income before income taxes 1,584 976 2,611 1,856
Income taxes 578 356 949 688
--------------- --------------- ---------------- -----------------
Net income $1,006 $620 $1,662 $1,168
=============== =============== ================ =================
Earnings per share $0.26 $0.16 $0.43 $0.30
=============== =============== ================ =================
Selected Financial Ratios
For the Three Months For the Six Months For the Year
Ended June 30, Ended June 30, Ended
1996 1995 1996 1995 DECEMBER 31, 1995
------ ------ ------ ------ -----------------
Performance ratios:
Net interest spread 3.06% 2.59% 3.00% 2.64% 2.75%
Net interest margin 4.57% 3.52% 4.24% 3.56% 3.66%
Return on Average assets 2.11% 1.49% 1.78% 1.41% 1.48%
Return on average equity 7.26% 8.72% 7.51% 8.25% 8.78%
Efficiency ratio (noninterest expense divided
by the sum of net interest income before
provision for loan losses plus noninterest income) 36.98% 45.68% 42.76% 47.49% 46.48%
JUNE 30, 1996 MARCH 31, 1996 DECEMBER 31, 1995
------------- -------------- -----------------
Asset Quality Ratios:
Nonaccrual loans to total net loans 0.14% 0.13% 0.12%
Nonperforming assets to total assets 0.21% 0.13% 0.17%
Allowance for loan losses as a percent of total loans 1.16% 1.17% 1.15%
receivable
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