Exhibit 99.3 Press Release
PRESS RELEASE
October 24, 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 THIRD 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 $0.98 diluted earnings per
share for the quarter ended September 30, 2002, compared to diluted earnings per
share of $0.62 for the quarter ended September 30, 2001, an increase in diluted
earnings per share of 58.1%. In dollars, the Company's net income was a record
$1.7 million for the quarter ended September 30, 2002, as compared to $1.2
million for the quarter ended September 30, 2001, an increase of 48.0%. The
Company's net income was $4.4 million, or diluted earnings per share of $2.50,
for the nine months ended September 30, 2002, compared to $3.2 million, or
diluted earnings per share of $1.72, for the nine months ended September 30,
2001.
Total assets at September 30, 2002 were $405.1 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 $28.9 million, or 9.4%, to $336.9 million at September 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. At September 30, 2002, net loans consisted of $147.0 million
of one-to-four family loans, $76.6 million of multifamily real estate loans,
$59.8 million of commercial real estate loans and $53.5 million of consumer
loans. The increase in loans was primarily due to the purchases of $63.4 million
of multifamily and commercial real estate loans. Securities available-for-sale
decreased $7.5 million, or 24.02%, from $31.4 million at December 31, 2001 to
$23.8 million at September 30, 2002. The decrease in securities
available-for-sale was primarily due to calls and maturities.
Deposits increased $11.0 million, or 4.1%, to $279.8 million at September 30,
2002 from $268.8 million at December 31, 2001. Other borrowed funds increased
$13.1 million, or 18.4%, to $84.6 million at September 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 0.39% of total assets as of September 30, 2002
compared to 0.36% of total assets as of December 31, 2001. The allowance for
loan losses was $3.1 million, or 0.91% of total loans, at September 30, 2002,
compared to $2.9 million, or 0.92% of total loans, at December 31, 2001.
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The net interest spread of 3.24% for the quarter ended September 30, 2002
represented an increase from the net interest spread of 2.74% for the quarter
ended September 30, 2001. The net interest margin of 3.51% for the quarter ended
September 30, 2002 represented an increase from the net interest margin of 3.08%
for the quarter ended September 30, 2001. Net interest income for the quarter
ended September 30, 2002 was $3.4 million, compared to net interest income of
$2.8 million for the quarter ended September 30, 2001.
The Company's provision for loan losses was $56,000 and $60,000 for the quarters
ended September 30, 2002 and 2001, respectively. The Company's provision for
loan losses was $326,000 and $150,000 for the nine months ended September 30,
2002. The increase in the provision for loan losses for the nine months was due
primarily to increases in the loan portfolio from December 31, 2002 and 2001,
respectively. 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.
The Company's noninterest income was $1.5 million and $1.3 million for the
quarters ended September 30, 2002 and 2001, respectively. The Company's
noninterest income was $4.2 million and $3.5 million for the nine months ended
September 30, 2002 and 2001, respectively. These increases in noninterest income
were due in part to increases in loan prepayment fees, abstract fees, overdraft
fees and sales of annuity and mutual funds, offset in part by a decrease in
mortgage banking income.
Stockholders' equity was $38.2 million at September 30, 2002, compared to $35.9
million at December 31, 2001. Stockholders' equity increased by $2.3 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 September 30, 2002 was $23.01 compared to $21.12 at December 31,
2001. The ratio of stockholders' equity to total assets was 9.4% at September
30, 2002, as compared to 9.5% at December 31, 2001.
All stockholders of record on September 16, 2002, received a quarterly cash
dividend of $0.18 per share on October 7, 2002. On September 27, 2002, the
Company commenced a new stock repurchase program for 100,000 shares, of which
100,000 shares remain to be repurchased. The Company has 1,659,880 shares of
common stock currently outstanding.
During the nine months ended September 30, 2002, the Company repurchased a total
of 110,700 shares or approximately 6.5% of its outstanding shares of common
stock as of December 31, 2001 at prevailing market prices averaging $26.22 per
share. Since its formation in 1996, the Company has invested a total of $42.9
million in the repurchase of 2,474,467 shares of its outstanding stock.
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".
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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) September 30, 2002 December 31, 2001
---------------------------------------
Assets
Cash and cash equivalents $ 21,537 $ 19,909
Securities available for sale 23,829 31,366
Loans (net of allowance of loan loss of $3,120
and $2,883, respectively) 336,889 307,981
Goodwill 4,971 4,971
Other assets 17,902 15,148
---------- ----------
Total Assets $ 405,128 $ 379,375
========== ==========
Liabilities
Deposits $ 279,819 $ 268,814
Other borrowed funds 84,560 71,413
Other liabilities 2,548 3,235
---------- ----------
Total Liabilities 366,927 343,462
Stockholders' Equity 38,201 35,913
---------- ----------
Total Liabilities and Stockholders' Equity $ 405,128 $ 379,375
========== ==========
Stockholders' equity to total assets 9.43% 9.47%
========== ==========
Book value per share $ 23.01 $ 21.12
========== ==========
Total shares outstanding 1,659,880 1,700,280
========== ==========
Condensed Consolidated Statements of Income
(Unaudited)
(Dollars in Thousands, except per share data)
For the Three Months For the Nine Months
Ended September 30, Ended September 30,
2002 2001 2002 2001
----------------------------------------------------
Interest income $ 6,937 $ 6,895 $20,228 $20,857
Interest expense 3,533 4,106 10,524 12,742
------- ------- ------- -------
Net interest income 3,404 2,789 9,704 8,115
Provision for loan loss 56 60 326 150
------- ------- ------- -------
Net interest income after provision for loan loss 3,348 2,729 9,378 7,965
Noninterest income 1,509 1,268 4,209 3,542
Noninterest expense 2,281 2,235 7,052 6,593
------- ------- ------- -------
Income before income taxes 2,576 1,762 6,535 4,914
Income taxes 868 608 2,172 1,669
------- ------- ------- -------
Net income $ 1,708 $ 1,154 $ 4,363 $ 3,245
======= ======= ======= =======
Basic earnings per share $ 1.04 $ 0.66 $ 2.65 $ 1.81
======= ======= ======= =======
Diluted earnings per share $ 0.98 $ 0.62 $ 2.50 $ 1.72
======= ======= ======= =======
Selected Financial Ratios
For the Three Months For the Nine Months
Ended September 30, Ended September 30,
2002 2001 2002 2001
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Performance ratios
Net interest spread 3.24% 2.74% 3.12% 2.63%
Net interest margin 3.51% 3.08% 3.42% 2.98%
Return on average assets 1.67% 1.20% 1.46% 1.12%
Return on average equity 17.75% 12.51% 15.61% 11.76%
Efficiency ratio (noninterest expense divided by
the sum of net interest income before provision
for loan losses plus noninterest income) 46.43% 55.08% 50.68% 56.56%