Exhibit 99.1 Press Release
PRESS RELEASE
July 25, 2003
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 EARNINGS FOR SECOND QUARTER OF 2003
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 $0.92 diluted earnings per share for the
quarter ended June 30, 2003, compared to diluted earnings per share of $0.81 for
the quarter ended June 30, 2002, an increase in diluted earnings per share of
13.6%. In dollars, the Company's net income was $1.5 million for the quarter
ended June 30, 2003, as compared to $1.4 million for the quarter ended June 30,
2002, an increase of 7.3%. The Company earned $1.80 diluted earnings per share
for the six months ended June 30, 2003, compared to diluted earnings per share
of $1.52 for the six months ended June 30, 2002, an increase in diluted earnings
per share of 18.4%. In dollars, the Company's net income was $3.0 million for
the six months ended June 30, 2003, as compared to $2.7 million for the six
months ended June 30, 2002, an increase of 14.1%.
Total assets at June 30, 2003 were $430.6 million as compared to $403.9 million
at December 31, 2002. The increase in assets resulted primarily from an increase
in interest-bearing cash, loans and securities available-for-sale.
Interest-bearing cash increased $9.5 million, or 72.6% to $22.5 million at June
30, 2003 from $13.0 million at December 31, 2002. Loans increased by $7.6
million, or 2.2%, to $348.7 million at June 30, 2003 from $341.1 million at
December 31, 2002. At June 30, 2003, net loans consisted of $157.6 million of
one-to-four family loans, $67.8 million of multifamily real estate loans, $70.1
million of commercial real estate loans and $53.2 million of consumer loans. The
increase in loans was due, in part, to the origination of one-to-four family
loans, the purchase of one-to-four family, multifamily and commercial real
estate loans and the origination of second mortgage loans. These originations
and purchases were offset in part by payments, prepayments and sales proceeds of
loans. Securities available-for-sale increased $8.7 million, or 38.0%, to $31.5
million at June 30, 2003 from $22.8 million at December 31, 2002. The increase
in securities available-for-sale was primarily due to an increase in investment
in mortgage-backed securities.
Deposits increased $13.3 million, or 4.8%, to $290.3 million at June 30, 2003
from $277.0 million at December 31, 2002. Other borrowed funds increased $12.4
million, or 14.6%, to $97.5 million at June 30, 2003 from $85.0 million at
December 31, 2002. The increase in the deposits and borrowed funds were used in
part to fund asset growth.
Nonperforming assets were 0.45% of total assets as of June 30, 2003 compared to
0.35% of total assets as of December 31, 2002. The allowance for loan losses was
$3.2 million, or 0.90% of total loans, at June 30, 2003, compared to $3.1
million, or 0.90% of total loans, at December 31, 2002.
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The net interest spread of 3.00% for the quarter ended June 30, 2003 represented
a decrease from the net interest spread of 3.14% for the quarter ended June 30,
2002. The net interest margin of 3.26% for the quarter ended June 30, 2003
represented a decrease from the net interest margin of 3.44% for the quarter
ended June 30, 2002. Net interest income for the quarter ended June 30, 2003 was
$3.3 million, compared to net interest income of $3.3 million for the quarter
ended June 30, 2002.
The Company's provision for loan losses was $60,000 and $90,000 for the quarters
ended June 30, 2003 and 2002, 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. These factors include prior loss experience, industry standards,
past due loans, economic conditions, the volume and type of loans in the Bank's
portfolio, which includes a significant amount of multi-family and commercial
real estate loans, substantially all of which are purchased and are
collateralized by properties located outside of the Bank's market area, and
other factors related to the collectibility of the Bank's loan portfolio.
Stockholders' equity was $39.3 million at June 30, 2003, compared to $38.7
million at December 31, 2002. Stockholders' equity increased by $513,000
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, 2003 was $24.51 compared to $23.62 at December 31, 2002.
The ratio of stockholders' equity to total assets was 9.1% at June 30, 2003, as
compared to 9.6% at December 31, 2002.
All stockholders of record on June 16, 2003, received a quarterly cash dividend
of $0.21 per share on July 7, 2003. The Company has 1,601,580 shares of common
stock currently outstanding.
During the six months ended June 30, 2003, the Company repurchased a total of
90,400 shares or approximately 5.5% of its outstanding shares of common stock at
prevailing market prices averaging $33.95 per share. Since its formation in
1996, the Company has invested a total of $46.7 million in the repurchase of
2,587,267 shares of its outstanding stock.
The Company's noninterest income was $3.1 million and $2.7 million for the six
months ended June 30, 2003 and 2002, respectively. The increase in noninterest
income was due in part to increases in abstract fees and mortgage banking
income.
The Company's noninterest expense was $5.2 million and $4.8 million for the six
months ended June 30, 2003 and 2002, respectively. The increase in noninterest
expense was due primarily to an increase in salaries and employee benefits and
other expenses.
The Company's provision for income taxes was $1.4 million and $1.3 million for
the six months ended June 30, 2003 and 2002, respectively. The increase in the
provision for income taxes was due to an increase in the income before income
taxes and a decrease in the nontaxable income, offset in part by a one time
low-income housing income tax credit with an effect on net income of
approximately $100,000.
In April, 2003, the Bank submitted an application to establish a new branch
office in Clive, Iowa. The Bank intends to begin construction of a 5,000 square
foot building later this year. The Bank will open a temporary office in the
third quarter of 2003 at 2204 Woodlands Parkway, Clive, Iowa.
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'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, 2003 December 31, 2002
------------- -----------------
Assets
Cash and cash equivalents $ 24,382 $ 15,169
Securities available for sale 31,506 22,834
Loans (net of allowance of loan loss of $3,164
and $3,118, respectively) 348,727 341,146
Goodwill 4,971 4,971
Other assets 21,035 19,752
---------- ----------
Total Assets $ 430,621 $ 403,872
========== ==========
Liabilities
Deposits $ 290,336 $ 277,000
Other borrowed funds 97,454 85,026
Other liabilities 3,570 3,098
---------- ----------
Total Liabilities 391,360 365,124
Stockholders' Equity 39,261 38,748
---------- ----------
Total Liabilities and Stockholders' Equity $ 430,621 $ 403,872
========== ==========
Stockholders' equity to total assets 9.12% 9.59%
========== ==========
Book value per share $ 24.51 $ 23.62
========== ==========
Total shares outstanding 1,601,580 1,640,280
========== ==========
Condensed Consolidated Statements of Income
(Unudited)
(Dollars in Thousands, except per share data
For the Three Months For the Six Months
Ended June 30, Ended June 30,
2003 2002 2003 2002
---- ---- ---- ----
Interest income $ 6,441 $ 6,760 $12,967 $13,291
Interest expense 3,137 3,498 6,316 6,992
------- ------- ------- -------
Net interest income 3,304 3,262 6,651 6,299
Provision for loan loss 60 90 120 270
------- ------- ------- -------
Net interest income after provision for loan loss 3,244 3,172 6,531 6,029
Noninterest income 1,699 1,386 3,092 2,701
Noninterest expense 2,654 2,405 5,212 4,770
------- ------- ------- -------
Income before income taxes 2,289 2,153 4,411 3,960
Income taxes 761 729 1,381 1,305
------- ------- ------- -------
Net income $ 1,528 $ 1,424 $ 3,030 $ 2,655
======= ======= ======= =======
Basic earnings per share $ 0.97 $ 0.87 $ 1.91 $ 1.62
======= ======= ======= =======
Diluted earnings per share $ 0.92 $ 0.81 $ 1.80 $ 1.52
======= ======= ======= =======
For the Three Months For the Six Months
Selected Financial Ratios Ended June 30, Ended June 30,
2003 2002 2003 2002
---- ---- ---- ----
Performance ratios
Net interest spread 3.00% 3.14% 3.06% 3.06%
Net interest margin 3.26% 3.44% 3.33% 3.38%
Return on average assets 1.43% 1.42% 1.44% 1.35%
Return on average equity 15.62% 15.41% 15.53% 14.49%
Efficiency ratio (noninterest expense divided by
the sum of net interest income before provision
for loan losses plus noninterest income) 53.05% 51.75% 53.49% 53.01%