Exhibit 99.1 Press Release
PRESS RELEASE
April 24, 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 FIRST 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 $0.88 diluted earnings per share for the
quarter ended March 31, 2003, compared to diluted earnings per share of $0.71
for the quarter ended March 31, 2002, an increase in diluted earnings per share
of 23.9%. In dollars, the Company's net income was $1.5 million for the quarter
ended March 31, 2003, as compared to $1.2 million for the quarter ended March
31, 2002, an increase of 22.1%.
Total assets at March 31, 2003 were $425.6 million as compared to $403.9 million
at December 31, 2002. The increase in assets resulted primarily from an increase
in loans and securities available-for-sale. Loans increased by $7.8 million, or
2.3%, to $348.9 million at March 31, 2003 from $341.1 million at December 31,
2002. At March 31, 2003, net loans consisted of $156.2 million of one-to-four
family loans, $72.1 million of multifamily real estate loans, $69.1 million of
commercial real estate loans and $51.5 million of consumer loans. The increase
in loans was due in part to the purchases of $19.9 million of one- to
four-family, multifamily and commercial real estate loans. Securities
available-for-sale increased $10.2 million, or 44.5%, to $33.0 million at March
31, 2003 from $22.8 million at December 31, 2002. The increase in securities
available-for-sale was primarily due to an increase in our investment in
mortgage-backed securities.
Deposits increased $3.7 million, or 1.4%, to $280.7 million at March 31, 2003
from $277.0 million at December 31, 2002. Other borrowed funds increased $18.0
million, or 21.1%, to $103.0 million at March 31, 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 0.37% of total assets as of March 31, 2003 compared to
0.35% of total assets as of December 31, 2002. The allowance for loan losses was
$3.2 million, or 0.89% of total loans, at March 31, 2003, compared to $3.1
million, or 0.90% of total loans, at December 31, 2002.
The net interest spread of 3.11% for the quarter ended March 31, 2003
represented an increase from the net interest spread of 2.98% for the quarter
ended March 31, 2002. The net interest margin of 3.40% for the quarter ended
March 31, 2003 represented an increase from the net interest margin of 3.31% for
the quarter ended March 31, 2002. Net interest income for the quarter ended
March 31, 2003 was $3.3 million, compared to net interest income of $3.0 million
for the quarter ended March 31, 2002.
- MORE-
The Company's provision for loan losses was $60,000 and $180,000 for the
quarters ended March 31, 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 $38.5 million at March 31, 2003, compared to $38.7
million at December 31, 2002. Stockholders' equity decreased by $280,000
primarily due to stock repurchases and declared dividends, offset in part by
earnings and the exercise of stock options. Book value, or stockholders' equity
per share, at March 31, 2003 was $23.94 compared to $23.62 at December 31, 2002.
The ratio of stockholders' equity to total assets was 9.0% at March 31, 2003, as
compared to 9.6% at December 31, 2002.
All stockholders of record on March 17, 2003, received a quarterly cash dividend
of $0.21 per share on April 7, 2003. In addition, on February 27, 2003, the
Company announced a new stock repurchase program for 100,000 shares, to commence
after the completion of the Company's current stock repurchase program. The
Company has 1,606,580 shares of common stock currently outstanding.
During the quarter ended March 31, 2003, the Company repurchased a total of
70,400 shares or approximately 4.3% of its outstanding shares of common stock at
prevailing market prices averaging $33.96 per share. Since its formation in
1996, the Company has invested a total of $46.0 million in the repurchase of
2,567,267 shares of its outstanding stock.
The Company's noninterest income was $1.4 million and $1.3 million for the
quarters ended March 31, 2003 and 2002, respectively. The increase in
noninterest income was due in part to increases in checking account fees,
abstract fees and mortgage banking income, offset in part by a decrease in loan
prepayment fees.
The Company's noninterest expense was $2.6 million and $2.4 million for the
quarters ended March 31, 2003 and 2002, respectively. The increase in
noninterest expense was due primarily to an increase in salaries and employee
benefits.
The Company's provision for income taxes was $620,000 and $576,000 for the
quarters ended March 31, 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 March 2003, the Bank completed the construction of a 23-unit low-income
housing tax credit apartment building for the elderly in Fort Dodge, Iowa. This
project will result in an annualized income tax credit of approximately $125,000
per year for a ten year period.
The Bank relocated its Ankeny office to a newly constructed 5,000 square foot
branch office in February, 2003. 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 second 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) March 31, 2003 December 31, 2002
-------------- -----------------
Assets
Cash and cash equivalents $ 17,818 $ 15,169
Securities available for sale 32,999 22,834
Loans (net of allowance of loan loss of $3,155
and $3,118, respectively) 348,932 341,146
Goodwill 4,971 4,971
Other assets 20,901 19,752
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Total Assets $ 425,621 $ 403,872
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Liabilities
Deposits $ 280,749 $ 277,000
Other borrowed funds 102,992 85,026
Other liabilities 3,417 3,098
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Total Liabilities 387,158 365,124
Stockholders' Equity 38,463 38,748
----------- ------------
Total Liabilities and Stockholders' Equity $ 425,621 $ 403,872
=========== ============
Stockholders' equity to total assets 9.04% 9.61%
=========== ===========
Book value per share $ 23.94 $ 23.62
=========== ===========
Total shares outstanding 1,606,580 1,640,280
=========== ===========
Condensed Consolidated Statements of Income
(Unaudited)
(Dollars in Thousands, except per share data)
For the Three Months
Ended March 31,
2003 2002
---- ----
Interest income $ 6,526 $ 6,531
Interest expense 3,179 3,493
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Net interest income 3,347 3,038
Provision for loan loss 60 180
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Net interest income after provision for loan loss 3,287 2,858
Noninterest income 1,393 1,315
Noninterest expense 2,558 2,366
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Income before income taxes 2,122 1,807
Income taxes 620 576
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Net income $ 1,502 $ 1,231
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Basic earnings per share $ 0.94 $ 0.75
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Diluted earnings per share $ 0.88 $ 0.71
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Selected Financial Ratios
For the Three Months For the Year
Ended March 31 Ended December 31
2003 2002 2002
---- ---- ----
Performance Ratios
Net interest spread 3.11% 2.98% 3.15%
Net interest margin 3.40% 3.31% 3.44%
Return on average assets 1.45% 1.27% 1.47%
Return on average equity 15.44% 13.56% 15.57%
Efficiency ratio (noninterest expense divided by
the sum of net interest income before provision
for loan losses plus noninterest income) 53.96% 54.35% 51.01%