Exhibit 99.1 Press Release
PRESS RELEASE
October 27, 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 THIRD 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 $0.90 diluted earnings per share for the
quarter ended September 30, 2003, compared to diluted earnings per share of
$0.98 for the quarter ended September 30, 2002. In dollars, the Company's net
income was $1.5 million for the quarter ended September 30, 2003, as compared to
$1.7 million for the quarter ended September 30, 2002. The Company earned a
record $2.69 diluted earnings per share for the nine months ended September 30,
2003, compared to diluted earnings per share of $2.50 for the nine months ended
September 30, 2002. In dollars, the Company's net income was a record $4.5
million for the nine months ended September 30, 2003, as compared to $4.4
million for the nine months ended September 30, 2002.
Total assets at September 30, 2003 were $425.8 million as compared to $403.9
million at December 31, 2002. The increase in assets consisted of an increase in
loans and securities available-for-sale, offset by a decrease in
interest-bearing cash. Interest-bearing cash decreased $7.9 million, or 60.3% to
$5.2 million at September 30, 2003 from $13.0 million at December 31, 2002.
Loans increased by $24.4 million, or 7.1%, to $365.5 million at September 30,
2003 from $341.1 million at December 31, 2002. At September 30, 2003, net loans
consisted of $168.4 million of one-to-four family loans, $72.9 million of
multifamily real estate loans, $70.4 million of commercial real estate loans and
$53.8 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 $5.5 million, or 24.3%, to $28.4 million at September 30, 2003 from
$22.8 million at December 31, 2002. The increase in securities
available-for-sale consisted of an increase in investment in mortgage-backed
securities.
Deposits increased $5.7 million, or 2.1%, to $282.7 million at September 30,
2003 from $277.0 million at December 31, 2002. Other borrowed funds increased
$15.0 million, or 17.7%, to $100.0 million at September 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 September 30, 2003
compared to 0.35% of total assets as of December 31, 2002. The allowance for
loan losses was $3.2 million, or 0.86% of total loans, at September 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 3.01% for the quarter ended September 30, 2003
represented a decrease from the net interest spread of 3.24% for the quarter
ended September 30, 2002. The net interest margin of 3.25% for the quarter ended
September 30, 2003 represented a decrease from the net interest margin of 3.51%
for the quarter ended September 30, 2002. Net interest income for the quarter
ended September 30, 2003 was $3.3 million, compared to net interest income of
$3.4 million for the quarter ended September 30, 2002.
The Company's provision for loan losses was $75,000 and $56,000 for the quarters
ended September 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 $40.6 million at September 30, 2003, compared to $38.7
million at December 31, 2002. Stockholders' equity increased by $1.8 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 Sepetmber 30, 2003 was $25.22 compared to $23.62 at December 31,
2002. The ratio of stockholders' equity to total assets was 9.5% at September
30, 2003, as compared to 9.6% at December 31, 2002.
All stockholders of record on September 16, 2003, received a quarterly cash
dividend of $0.21 per share on October 7, 2003. The Company has 1,608,080 shares
of common stock currently outstanding.
During the nine months ended September 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 $4.9 million and $4.2 million for the nine
months ended September 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 $8.0 million and $7.1 million for the nine
months ended September 30, 2003 and 2002, respectively. The increase in
noninterest expense was due in part to expenses in connection with the Bank's
new offices in Ankeny and Clive, Iowa, a new low income housing project,
increases in employee benefits and a general increase in other noninterest
expenses.
The Company's provision for income taxes was $2.1 million and $2.2 million for
the nine months ended September 30, 2003 and 2002, respectively. The decrease in
the provision for income taxes was due to a one time low-income housing income
tax credit with an effect on net income of approximately $100,000 and new
recurring low income tax credits, offset in part by an increase in the income
before income taxes and a decrease in nontaxable income.
In April, 2003, the Bank submitted an application to establish a new branch
office in Clive, Iowa. The Bank began construction of a 5,000 square foot
building, which is scheduled for completion in the first quarter of 2004. The
Bank has opened 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 ten
full service locations in Fort Dodge, Nevada, Ames, Perry, Ankeny, Clive,
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 up
to 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) September 30, December 31, 2002
-------------- -----------------
Assets
Cash and cash equivalents $ 7,427 $ 15,169
Securities available for sale 28,381 22,834
Loans (net of allowance of loan loss of $3,170 and
$3,118, respectively) 365,512 341,146
Goodwill 4,971 4,971
Other assets 19,552 19,752
---------- ----------
Total Assets $ 425,843 $ 403,872
========== ==========
Liabilities
Deposits $ 282,694 $ 277,000
Other borrowed funds 100,038 85,026
Other liabilities 2,556 3,098
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Total Liabilities 385,288 365,124
Stockholders' Equity 40,555 38,748
---------- ----------
Total Liabilities and Stockholders' Equity $ 425,843 $ 403,872
========== ==========
Stockholders' equity to total assets 9.52% 9.59%
========== ==========
Book value per share $ 25.22 $ 23.62
========== ==========
Total shares outstanding 1,608,080 1,640,280
========== ==========
Condensed Consolidated Statements of Income
(Unudited)
(Dollars in Thousands, except per share data
For the Three Months For the Nine Months
Ended September 30, Ended September 30,
2003 2002 2003 2002
------------------------------------------------------------
Interest income $ 6,342 $ 6,937 $19,310 $20,228
Interest expense 3,055 3,533 9,372 10,524
------- ------- ------- -------
Net interest income 3,287 3,404 9,938 9,704
Provision for loan loss 75 56 195 326
------- ------- ------- -------
Net interest income after provision for loan loss 3,212 3,348 9,743 9,378
Noninterest income 1,763 1,509 4,855 4,209
Noninterest expense 2,760 2,281 7,972 7,052
------- ------- ------- -------
Income before income taxes 2,215 2,576 6,626 6,535
Income taxes 721 868 2,102 2,172
------- ------- ------- -------
Net income $ 1,494 $ 1,708 $ 4,524 $ 4,363
======= ======= ======= =======
Basic earnings per share $ 0.95 $ 1.04 $ 2.86 $ 2.65
======= ======= ======= =======
Diluted earnings per share $ 0.90 $ 0.98 $ 2.69 $ 2.50
======= ======= ======= =======
For the Three Months For the Nine Months
Selected Financial Ratios Ended September 30, Ended September 30,
2003 2002 2003 2002
---------------------------------------------------------------
Performance ratios
Net interest spread 3.01% 3.24% 3.05% 3.12%
Net interest margin 3.25% 3.51% 3.30% 3.42%
Return on average assets 1.39% 1.67% 1.42% 1.46%
Return on average equity 14.83% 17.75% 15.29% 15.61%
Efficiency ratio (noninterest expense divided by
the sum of net interest income before provision
for loan losses plus noninterest income) 54.65% 46.43% 53.89% 50.68%