Exhibit 99.2 Press Release
PRESS RELEASE
July 25, 2002 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
FOR SECOND 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 $0.81 diluted earnings per
share for the quarter ended June 30, 2002, compared to diluted earnings per
share of $0.59 for the quarter ended June 30, 2001, an increase in diluted
earnings per share of 37.3%. In dollars, the Company's net income was a record
$1.4 million for the quarter ended June 30, 2002, as compared to $1.1 million
for the quarter ended June 30, 2001, an increase of 28.2%. The Company's net
income was $2.7 million, or diluted earnings per share of $1.52, for the six
months ended June 30, 2002, compared to $2.1 million, or diluted earnings per
share of $1.10, for the six months ended June 30, 2001.
Total assets at June 30, 2002 were $405.0 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 and
interest-bearing cash. Loans increased by $35.2 million, or 11.4%, to $343.2
million at June 30, 2002 from $308.0 million at December 31, 2001. The increase
in loans was funded in part by increases in deposits and borrowings and
decreases in securities available-for-sale and interest-bearing cash. At June
30, 2002, net loans consisted of $153.5 million of one-to-four family loans,
$78.6 million of multifamily real estate loans, $58.7 million of commercial real
estate loans and $52.4 million of consumer loans. The increase in loans was
primarily due to the purchases of $53.5 million of multifamily and commercial
real estate loans. Securities available-for-sale decreased $5.7 million, or
18.2%, from $31.4 million at December 31, 2001 to $25.7 million at June 30,
2002. The decrease in securities available-for-sale was primarily due to calls
and maturities. Interest-bearing cash decreased $4.9 million, or 27.5%, from
$17.7 million at December 31, 2001 to $12.8 million at June 30, 2002.
Deposits increased $11.9 million, or 4.4%, to $280.7 million at June 30, 2002
from $268.8 million at December 31, 2001. Other borrowed funds increased $12.2
million, or 17.1%, to $83.6 million at June 30, 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 0.41% of total assets as of June 30, 2002 compared to
0.36% of total assets as of December 31, 2001. The allowance for loan losses was
$3.1 million, or 0.90% of total loans, at June 30, 2002, compared to $2.9
million, or 0.92% of total loans, at December 31, 2001.
The net interest spread of 3.14% for the quarter ended June 30, 2002 represented
an increase from the net interest spread of 2.62% for the quarter ended June 30,
2001. The net interest margin of 3.44% for the quarter ended June 30, 2002
represented an increase from the net interest margin of 2.95% for the quarter
ended June 30, 2001. Net interest income for the quarter ended June 30, 2002 was
$3.3 million, compared to net interest income of $2.7 million for the quarter
ended June 30, 2001.
-MORE-
The Company's provision for loan losses was $90,000 and $60,000 for the quarters
ended June 30, 2002 and 2001, respectively. The increase in the provision for
loan losses was due primarily to increases in the loan portfolio and
nonperforming assets. 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 $37.8 million at June 30, 2002, compared to $35.9
million at December 31, 2001. Stockholders' equity increased by $1.9 million
primarily due to earnings and the exercise of stock options, offset in part by
stock repurchases and declared dividends. Book value, or stockholders' equity
per share, at June 30, 2002 was $22.20 compared to $21.12 at December 31, 2001.
The ratio of stockholders' equity to total assets was 9.3% at June 30, 2002, as
compared to 9.5% at December 31, 2001.
All stockholders of record on June 17, 2002, received a quarterly cash dividend
of $0.18 per share on July 5, 2002. On February 21, 2002, the Company commenced
a new stock repurchase program for 100,000 shares, of which 48,700 shares remain
to be repurchased. The Company has 1,702,680 shares of common stock currently
outstanding.
During the six months ended June 30, 2002, the Company repurchased a total of
62,000 shares or approximately 3.6% of its outstanding shares of common stock at
prevailing market prices averaging $24.42 per share. Since its formation in
1996, the Company has invested a total of $41.5 million in the repurchase of
2,425,767 shares of its outstanding stock.
The Bank received approval in April, 2002 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 on this project has begun and we
anticipate that the project will be completed in the first quarter of 2003.
Total cost of the project is expected to be $1.6 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. Construction
has begun on a new 5,000 square foot facility in Ankeny, Iowa. 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) June 30, 2002 December 31, 2001
---------------------------------------
Assets
Cash and cash equivalents $ 15,060 $ 19,909
Securities available for sale 25,652 31,366
Loans (net of allowance of loan loss of $3,118
and $2,883, respectively) 343,179 307,981
Goodwill 4,971 4,971
Other assets 16,117 15,148
---------- ----------
Total Assets $ 404,979 $ 379,375
========== ==========
Liabilities
Deposits $ 280,736 $ 268,814
Other borrowed funds 83,593 71,413
Other liabilities 2,850 3,235
---------- ----------
Total Liabilities 367,179 343,462
Stockholders' Equity 37,800 35,913
---------- ----------
Total Liabilities and Stockholders' Equity $ 404,979 $ 379,375
========== ==========
Stockholders' equity to total assets 9.33% 9.47%
========== ==========
Book value per share $ 22.20 $ 21.12
========== ==========
Total shares outstanding 1,702,680 1,700,280
========== ==========
Condensed Consolidated Statements of Income
(Unaudited)
(Dollars in Thousands, except per share data)
For the Three Months For the Six Months
Ended June 30, Ended June 30,
2002 2001 2002 2001
----------------------------------------------------------------------
Interest income $ 6,760 $ 6,922 $ 13,291 $ 13,963
Interest expense 3,498 4,255 6,992 8,636
--------- -------- --------- ---------
Net interest income 3,262 2,667 6,299 5,327
Provision for loan loss 90 60 270 90
--------- -------- --------- ---------
Net interest income after provision for loan loss 3,172 2,607 6,029 5,237
Noninterest income 1,386 1,235 2,701 2,274
Noninterest expense 2,405 2,184 4,770 4,359
--------- -------- --------- ---------
Income before income taxes 2,153 1,658 3,960 3,152
Income taxes 729 548 1,305 1,061
--------- -------- --------- ---------
Net income $ 1,424 $ 1,110 $ 2,655 $ 2,091
========= ======== ========= =========
Basic earnings per share $ 0.87 $ 0.62 $ 1.62 $ 1.16
======== ========= ========= =========
Diluted earnings per share $ 0.81 $ 0.59 $ 1.52 $ 1.10
======== ========= ========= =========
Selected Financial Ratios
For the Three Months For the Six Months
Ended June 30, Ended June 30,
2002 2001 2002 2001
------------------------------------------------------------------
Performance ratios
Net interest spread 3.14% 2.62% 3.06% 2.55%
Net interest margin 3.44% 2.95% 3.38% 2.92%
Return on average assets 1.42% 1.16% 1.35% 1.09%
Return on average equity 15.41% 12.11% 14.49% 11.38%
Efficiency ratio (noninterest expense divided by
the sum of net interest income before provision
for loan losses plus noninterest income) 51.75% 55.98% 53.01% 57.35%