Exhibit 99.3 Press Release
PRESS RELEASE For More Information Contact:
April 17, 2002 David M. Bradley, President
North Central Bancshares, Inc.
825 Central Avenue
Fort Dodge, Iowa 50501
515-576-7531
NORTH CENTRAL BANCSHARES, INC. ANNOUNCES RECORD EARNINGS
FOR FIRST QUARTER OF 2002
Fort Dodge, Iowa -- North Central Bancshares, Inc. (the "Company") (Nasdaq:
FFFD), the holding company for First Federal Savings Bank of Iowa (the "Bank"),
announced today that the Company earned a record $0.71 diluted earnings per
share for the quarter ended March 31, 2002, compared to diluted earnings per
share of $0.51 for the quarter ended March 31, 2001, an increase in diluted
earnings per share of 39.2%. In dollars, the Company's net income was $1.2
million for the quarter ended March 31, 2002, as compared to $981,000 for the
quarter ended March 31, 2001, an increase of 25.4%.
Total assets at March 31, 2002 were $398.8 million as compared to $379.4 million
at December 31, 2001. The increase in assets resulted primarily from an increase
in loans, offset by a decrease in securities available-for-sale. Loans increased
by $24.4 million, or 7.9%, to $332.4 million at March 31, 2002 from $308.0
million at December 31, 2001. At March 31, 2002, net loans consisted of $155.9
million of one-to-four family loans, $73.5 million of multifamily real estate
loans, $52.6 million of commercial real estate loans and $50.5 million of
consumer loans. The increase in loans was primarily due to the purchases of
$36.3 million of multifamily and commercial real estate loans. Securities
available-for-sale decreased $5.3 million, or 16.9%, from $31.4 million at
December 31, 2001 to $26.1 million at March 31, 2002. The decrease in securities
available-for-sale was primarily due to calls and maturities.
Deposits increased $3.3 million, or 1.2%, to $272.1 million at March 31, 2002
from $268.8 million at December 31, 2001. Other borrowed funds increased $16.2
million, or 22.7%, to $87.6 million at March 31, 2002 from $71.4 million at
December 31, 2001. The increase in the deposits and borrowed funds were used in
part to fund asset growth.
Nonperforming assets were 0.39% of total assets as of March 31, 2002 compared to
0.36% of total assets as of December 31, 2001. The allowance for loan losses was
$3.0 million, or 0.91% of total loans, at March 31, 2002, compared to $2.9
million, or 0.92% of total loans, at December 31, 2001.
The net interest spread of 2.98% for the quarter ended March 31, 2002
represented an increase from the net interest spread of 2.47% for the quarter
ended March 31, 2001. The net interest margin of 3.31% for the quarter ended
March 31, 2002 represented an increase from the net interest margin of 2.89% for
the quarter ended March 31, 2001. Net interest income for the quarter ended
March 31, 2002 was $3.0 million, compared to net interest income of $2.7 million
for the quarter ended March 31, 2001.
- MORE-
The Company's provision for loan losses was $180,000 and $30,000 for the
quarters ended March 31, 2002 and 2001, respectively. The increase in the
provision for loan losses was due primarily to the increase in the loan
portfolio. 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 $36.1 million at March 31, 2002, compared to $35.9
million at December 31, 2001. Stockholders' equity increased by $140,000
primarily due to earnings, offset in part by stock repurchases and declared
dividends. Book value, or stockholders' equity per share, at March 31, 2002 was
$21.68 compared to $21.12 at December 31, 2001. The ratio of stockholders'
equity to total assets was 9.0% at March 31, 2002, as compared to 9.5% at
December 31, 2001.
All stockholders of record on March 15, 2002, received a quarterly cash dividend
of $0.18 per share on April 8, 2002. In addition, on February 21, 2002, the
Company commenced a new stock repurchase program for 100,000 shares, of which
73,700 shares remain to be repurchased. The Company has 1,666,080 shares of
common stock currently outstanding.
During the quarter ended March 31, 2002, the Company repurchased a total of
37,000 shares or approximately 2.2% of its outstanding shares of common stock at
prevailing market prices averaging $22.72 per share. Since its formation in
1996, the Company has invested a total of $40.9 million in the repurchase of
2,400,767 shares of its outstanding stock.
The Bank recently received approval from the Iowa Finance Authority to construct
a 23-unit low-income housing tax credit apartment building for the elderly in
Fort Dodge, Iowa. Construction will begin during the second quarter of 2002 and
we anticipate that the project will be completed in the first quarter of 2003.
Total cost of the project is expected to be $1.8 million.
North Central Bancshares, Inc. serves north central and southeastern Iowa at
nine full service locations in Fort Dodge, Nevada, Ames, Perry, Ankeny,
Burlington and Mount Pleasant, Iowa through its wholly-owned subsidiary, First
Federal Savings Bank of Iowa, headquartered in Fort Dodge, Iowa. The Bank
recently opened a branch office in Ankeny, Iowa in leased space. Construction is
expected to begin in the second quarter of 2002 on a new 5,000 square foot
facility. The Bank's Ankeny office will relocate to this new office when
completed, sometime during the first quarter of 2003.
The Bank's deposits are insured by the Federal Deposit Insurance Corporation
under the full extent permitted by law. The Company's stock is traded on The
Nasdaq National Market under the symbol "FFFD".
Statements contained in this news release, which are not historical facts,
contain forward-looking statements as that term is defined in the Private
Securities Litigation Reform Act of 1995. Such forward-looking statements are
subject to risk and uncertainties which could cause actual results to differ
materially from those currently anticipated due to a number of factors, which
include, but are not limited to, factors discussed in documents filed by the
Company with the Securities and Exchange Commission from time to time. The
Company or the Bank does not undertake to update any forward looking statement,
whether written or oral, that may be made from time to time by or on behalf of
the Company or the Bank.
For more information contact: David M. Bradley, President and Chief Executive
Officer, 515-576-7531
FINANCIAL HIGHLIGHTS OF NORTH CENTRAL BANCSHARES, INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Financial Condition
(Unaudited)
(Dollars in Thousands, except per share and share data) March 31, 2002 December 31, 2001
-------------- -----------------
Assets
Cash and cash equivalents $ 19,060 $ 19,909
Securities available for sale 26,074 31,366
Loans (net of allowance of loan loss of $3,041
and $2,883, respectively) 332,390 307,981
Goodwill 4,971 4,971
Other assets 16,268 15,148
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Total Assets $ 398,763 $ 379,375
========== ==========
Liabilities
Deposits $ 272,088 $ 268,814
Other borrowed funds 87,630 71,413
Other liabilities 2,992 3,235
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Total Liabilities 362,710 343,462
Stockholders' Equity 36,053 35,913
---------- ----------
Total Liabilities and Stockholders' Equity $ 398,763 $ 379,375
========== ==========
Stockholders' equity to total assets 9.04% 9.47%
========== ==========
Book value per share $ 21.68 $ 21.12
========== ===========
Total shares outstanding 1,663,280 1,700,280
========== ===========
Condensed Consolidated Statements of Income
(Unudited)
(Dollars in Thousands, except per share data)
For the Three Months
Ended March 31,
2002 2001
------ ------
Interest income $6,531 $7,040
Interest expense 3,493 4,381
------ ------
Net interest income 3,038 2,659
Provision for loan loss 180 30
------ ------
Net interest income after provision for loan loss 2,858 2,629
Noninterest income 1,315 1,039
Noninterest expense 2,366 2,174
------ ------
Income before income taxes 1,807 1,494
Income taxes 576 513
------ ------
Net income $1,231 $ 981
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Basic earnings per share $ 0.75 $ 0.53
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Diluted earnings per share $ 0.71 $ 0.51
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Selected Financial Ratios
For the Three Months
Ended March 31,
2002 2001
------ ------
Performance ratios
Net interest spread 2.98% 2.47%
Net interest margin 3.31% 2.89%
Return on average assets 1.27% 1.01%
Return on average equity 13.56% 10.65%
Efficiency ratio (noninterest expense divided by
the sum of net interest income before provision
for loan losses plus noninterest income) 54.35% 58.79%