Exhibit 99.1 Press Release
PRESS RELEASE
January 26, 2004
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 DILUTED EARNINGS PER SHARE
FOR YEAR END 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 a record $3.48 diluted earnings per
share for the year ended December 31, 2003, compared to diluted earnings per
share of $3.37 for the year ended December 31, 2002, an increase in diluted
earnings per share of 3.3%. In dollars, the Company's net income was $5,848,000
for the year ended December 31, 2003, as compared to $5,865,000 for the year
ended December 31, 2002.
The Company's net income was $1,324,000, or diluted earnings per share of $0.78,
for the fourth quarter of 2003, compared to net income of $1,502,000, or diluted
earnings per share of $0.87 for the fourth quarter of 2002.
Total assets at December 31, 2003 were $424.0 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 $5.9 million, or 45.3%,
to $7.1 million at December 31, 2003 from $13.0 million at December 31, 2002.
Loans increased by $21.8 million, or 6.4%, to $363.0 million at December 31,
2003 from $341.1 million at December 31, 2002. At December 31, 2003, net loans
consisted of $171.5 million of one-to-four family loans, $69.5 million of
multifamily real estate loans, $68.9 million of commercial real estate loans and
$53.0 million of consumer loans. The increase in loans was due primarily 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 of loans. Securities available-for-sale
increased $4.1 million, or 18.0%, to $27.0 million at December 31, 2003 from
$22.8 million at December 31, 2002. The increase in securities
available-for-sale consisted primarily of an increase in investment in
mortgage-backed securities, offset in part by maturities and calls.
Deposits increased $7.0 million, or 2.5%, to $284.0 million at December 31, 2003
from $277.0 million at December 31, 2002. Other borrowed funds increased $10.0
million, or 11.7%, to $95.0 million at December 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 0.49% of total assets as of December 31, 2003 compared
to 0.35% of total assets as of December 31, 2002. The allowance for loan losses
was $3.2 million, or 0.86% of total loans, at December 31, 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 2.91% for the quarter ended December 31, 2003
represented a decrease from the net interest spread of 3.22% for the quarter
ended December 31, 2002. The net interest margin of 3.14% for the quarter ended
December 31, 2003 represented a decrease from the net interest margin of 3.48%
for the quarter ended December 31, 2002. Net interest income for the quarter
ended December 31, 2003 was $3.2 million, compared to net interest income of
$3.4 million for the quarter ended December 31, 2002.
The Company's provision for loan losses was $60,000 and $57,000 for the quarters
ended December 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 $41.6 million at December 31, 2003, compared to $38.7
million at December 31, 2002. Stockholders' equity increased by $2.8 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 December 31, 2003 was $25.92 compared to $23.62 at December 31,
2002. The ratio of stockholders' equity to total assets was 9.8% at December 31,
2003, as compared to 9.6% at December 31, 2002.
All stockholders of record on December 15, 2003, received a quarterly cash
dividend of $0.21 per share on January 7, 2004. The Company has 1,604,780 shares
of common stock currently outstanding.
During the year ended December 31, 2003, the Company repurchased a total of
94,700 shares or approximately 5.8% of its outstanding shares of common stock at
prevailing market prices averaging $34.15 per share. Since its formation in
1996, the Company has invested a total of $46.8 million in the repurchase of
2,591,567 shares of its outstanding stock.
The Company's noninterest income was $6.6 million and $5.7 million for the years
ended December 31, 2003 and 2002, respectively. The increase in noninterest
income was due in part to increases in loan prepayment fees, fees associated
with checking accounts, including overdraft fees, abstract fees, an increase in
rent income due to the opening of a second multifamily apartment building in
March, 2003 and increases in revenues from the sale of annuities and mutual
funds, offset in part by decreases in revenues from the sale of insurance.
The Company's noninterest expense was $10.9 million and $9.6 million for the
years ended December 31, 2003 and 2002, respectively. The increase in
noninterest expense was due in part to expenses in connection with the Bank's
new branch offices in Ankeny and Clive, Iowa, increases in employee benefits
costs, an increase in apartment operating costs, increases in marketing costs
and a general increase in other noninterest expenses.
The Company's provision for income taxes was $2.7 million and $3.0 million for
the year ended December 31, 2003 and 2002, respectively. The decrease in the
provision for income taxes was due to the decrease in the income before income
taxes, a new recurring low income federal tax credit and a one time low-income
housing Iowa income tax credit with an effect on net income of approximately
$100,000, offset in part by 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 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) December 31, 2003 December 31, 2002
----------------- -----------------
Assets
Cash and cash equivalents $ 10,019 $ 15,169
Securities available for sale 26,952 22,834
Loans (net of allowance of loan loss of $3,165 and
$3,118, respectively) 362,959 341,146
Goodwill 4,971 4,971
Other assets 19,108 19,752
---------- ----------
Total Assets $ 424,009 $ 403,872
========== ==========
Liabilities
Deposits $ 283,964 $ 277,000
Other borrowed funds 95,005 85,026
Other liabilities 3,448 3,098
---------- ----------
Total Liabilities 382,417 365,124
Stockholders' Equity 41,592 38,748
---------- ----------
Total Liabilities and Stockholders' Equity $ 424,009 $ 403,872
========== ==========
Stockholders' equity to total assets 9.81% 9.59%
========== ==========
Book value per share $ 25.92 $ 23.62
========== ==========
Total shares outstanding 1,604,780 1,640,280
========== ==========
Condensed Consolidated Statements of Income
(Unaudited)
(Dollars in Thousands, except per share data
For the Three Months For the Years
Ended December 31, Ended December 31,
2003 2002 2003 2002
-------------------------------------------------
Interest income $ 6,146 $ 6,737 $25,456 $26,965
Interest expense 2,969 3,387 12,342 13,911
------- ------- ------- -------
Net interest income 3,177 3,350 13,114 13,054
Provision for loan loss 60 57 255 383
------- ------- ------- -------
Net interest income after provision for loan loss 3,117 3,293 12,859 12,671
Noninterest income 1,714 1,519 6,570 5,729
Noninterest expense 2,888 2,530 10,860 9,582
------- ------- ------- -------
Income before income taxes 1,943 2,282 8,569 8,818
Income taxes 619 780 2,721 2,953
------- ------- ------- -------
Net income $ 1,324 $ 1,502 $ 5,848 $ 5,865
======= ======= ======= =======
Basic earnings per share $ 0.83 $ 0.92 $ 3.69 $ 3.58
======= ======= ======= =======
Diluted earnings per share $ 0.78 $ 0.87 $ 3.48 $ 3.37
======= ======= ======= =======
For the Three Months For the Years
Selected Financial Ratios Ended December 31, Ended December 31,
2003 2002 2003 2002
--------------------------------------------------
Performance ratios
Net interest spread 2.91% 3.22% 3.01% 3.15%
Net interest margin 3.14% 3.48% 3.26% 3.44%
Return on average assets 1.24% 1.48% 1.38% 1.47%
Return on average equity 12.83% 15.45% 14.65% 15.57%
Efficiency ratio (noninterest expense divided by
the sum of net interest income before provision
for loan losses plus noninterest income) 59.05% 51.95% 55.17% 51.01%