Exhibit 99.3 Press Release
PRESS RELEASE
January 22, 2001 For further information contact:
David M. Bradley
Chairman, President and Chief Executive Officer
North Central Bancshares, Inc.
825 Central Avenue PO Box 1237
Fort Dodge, Iowa 50501
515-576-7531
NORTH CENTRAL BANCSHARES, INC. ANNOUNCES RECORD EARNINGS PER SHARE
FOR FOURTH QUARTER AND YEAR END 2000
(Nasdaq: FFFD)
Fort Dodge, Iowa -- North Central Bancshares, Inc. (the "Company"), the holding
company for First Federal Savings Bank of Iowa (the "Bank"), announced today
that the Company earned a record $2.00 diluted earnings per share for the year
ended December 31, 2000, compared to diluted earnings per share of $1.60 for the
year ended December 31, 1999, an increase in diluted earnings per share of
25.0%. In dollars, the Company's net income was $4.0 million for the year ended
December 31, 2000, as compared to $4.2 million for the year ended December 31,
1999.
The Company's net income was $1,028,000, or diluted earnings per share of $0.53,
for the fourth quarter of 2000, compared to net income of $981,000, or diluted
earnings per share of $0.43 for the fourth quarter of 1999, an increase in
diluted earnings per share of 23.3%.
During the quarter ended December 31, 2000, the Company recorded an income tax
benefit of $100,000 and interest income on this tax item of $62,000, due to
receipt of a state franchise tax refund related to an issue that had been under
dispute for several years.
Total assets at December 31, 2000 were $389.0 million as compared to $367.4
million at December 31, 1999. The increase in assets resulted primarily from
increases in loans, offset by a decrease in cash and securities available-for-
sale. Cash decreased by $3.8 million, or 30.1%, from $12.7 million at December
31, 1999 to $8.8 million at December 31, 2000. Securities available-for-sale
decreased $6.3 million, or 12.8%, from $49.7 million at December 31, 1999 to
$43.4 million at December 31, 2000. The decrease in securities available for
sale was primarily due to calls and maturities in excess of purchases. Loans
increased by $31.3 million, or 10.9%, to $318.0 million at December 31, 2000
from $286.8 million at December 31, 1999.
Deposits decreased $9.9 million, or 3.6%, to $261.2 million at December 31, 2000
from $271.0 million at December 31, 1999. Other borrowed funds increased $32.9
million, or 59.0%, to $88.6 million at December 31, 2000 from $55.7 million at
December 31, 1999. The increase in other borrowings was primarily due to the
funding of asset growth and stock repurchases.
- MORE-
Nonperforming assets were 0.28% of total assets as of December 31, 2000 compared
to 0.20% of total assets as of December 31, 1999. The allowance for loan losses
was $2.8 million, or 0.88% of total loans, at December 31, 2000, compared to
$2.8 million, or 0.95% of total loans, at December 31, 1999.
The net interest spread of 2.59% for the year ended December 31, 2000
represented a decrease from the net interest spread of 2.86% for the year ended
December 31, 1999. The net interest margin of 2.95% for the year ended December
31, 2000 represented a decrease from the net interest margin of 3.35% for the
year ended December 31, 1999. Net interest income for the year ended December
31, 2000 was $10.6 million, compared to net interest income of $11.0 million for
the corresponding period a year ago.
The Bank's provision for loan losses was $120,000 for the years ended December
31, 2000 and 1999. The Company 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 collectibility of the Bank's loan portfolio.
Stockholders' equity was $36.4 million at December 31, 2000, compared to $38.1
million at December 31, 1999. Stockholders' equity decreased by $1.7 million
primarily due to stock repurchases and declared dividends, which were offset in
part by earnings. Book value, or stockholders' equity per share, at December 31,
2000 was $19.04 compared to $16.86 at December 31, 1999. The ratio of
stockholders' equity to total assets was 9.4% at December 31, 2000, as compared
to 10.4% at December 31, 1999.
Stockholders of record on December 15, 2000, received a quarterly cash dividend
of $0.125 per share on January 5, 2001.
Recently, the Company commenced a new stock repurchase program for 100,000
shares, of which 57,500 shares remain to be repurchased. The Company has
1,911,880 shares of common stock currently outstanding.
During the year ended December 31, 2000, the Company repurchased a total of
349,862 shares or approximately 15.5% of its outstanding shares of common stock
at prevailing market prices averaging $16.40 per share. Since its formation in
1996, the Company has invested a total of $34.7 million in the repurchase of
2,116,967 shares of its outstanding stock.
The Company announced a dividend reinvestment and stock purchase plan on
September 22, 2000. Shareholders owning 100 or more shares registered in their
name are eligible to enroll in this plan.
North Central Bancshares, Inc. serves north central and southeastern Iowa at 8
full service locations in Fort Dodge, Nevada, Ames, Perry, Burlington and Mount
Pleasant, Iowa through its wholly-owned subsidiary, First Federal Savings Bank
of Iowa, 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".
For more information contact: David M. Bradley, President, 515-576-7531
FINANCIAL HIGHLIGHTS OF NORTH CENTRAL BANCSHARES, INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Financial Condition
(Dollars in Thousands, except per share and share data) December 31, 2000 December 31, 1999
Assets
Cash and cash equivalents $ 8,850 $ 12,669
Securities available for sale 43,351 49,693
Loans (net of allowance of loan loss of $2.8
million and $2.8 million, respectively) 318,026 286,838
Goodwill 5,443 5,915
Other assets 13,328 12,318
--------------- ---------------
Total Assets $ 388,998 $ 367,433
================ ================
Liabilities
Deposits $ 261,166 $ 271,031
Other borrowed funds 88,592 55,715
Other liabilities 2,842 2,560
--------------- ---------------
Total Liabilities 352,600 329,306
Stockholders' Equity 36,398 38,127
--------------- ---------------
Total Liabilities and Stockholders' Equity $ 388,998 $ 367,433
================ ================
Stockholders' equity to total assets 9.36% 10.38%
================ ================
Book value per share $ 19.04 $ 16.86
================ ================
Total shares outstanding 1,911,880 2,261,742
================ ================
Condensed Consolidated Statements of Income
(Dollars in Thousands, except per share data)
For the Three Months For the Year
Ended December 31, Ended December 31,
2000 1999 2000 1999
---- ---- ---- ----
Interest income $ 7,071 $ 6,455 $ 27,284 $ 24,556
Interest expense 4,534 3,778 16,707 13,604
--------- -------- ------- --------
Net interest income 2,537 2,677 10,577 10,952
Provision for loan loss 30 30 120 120
--------- -------- ------- --------
Net interest income after provision
for loan loss 2,507 2,647 10,457 10,832
Noninterest income 1,118 959 4,014 4,063
Noninterest expense 2,286 2,115 8,587 8,454
--------- -------- ------- --------
Income before income taxes 1,339 1,491 5,884 6,441
Income taxes 311 510 1,873 2,241
--------- -------- ------- --------
Net income $ 1,028 $ 981 $ 4,011 $ 4,200
========== ========= ======== =========
Basic earnings per share $ 0.55 $ 0.44 $ 2.04 $ 1.63
========== ========= ======== =========
Diluted earnings per share $ 0.53 $ 0.43 $ 2.00 $ 1.60
========== ========= ======== =========
Selected Financial Ratios
For the Three Months For the Year
Ended December 31, Ended December 31,
2000 1999 2000 1999
---- ---- ---- ----
Performance ratios
Net interest spread 2.44% 2.79% 2.59% 2.86%
Net interest margin 2.77% 3.11% 2.95% 3.35%
Return on average assets 1.07% 1.07% 1.06% 1.21%
Return on average equity 11.31% 10.07% 11.08% 9.51%
Efficiency ratio (noninterest expense divided by
the sum of net interest income before provision
for loan losses plus noninterest income) 62.54% 58.17% 58.85% 56.30%