Exhibit 99.1 Press Release
PRESS RELEASE
April 23, 2004
For further information contact:
David M. Bradley
Chairman, President and Chief Executive Officer
North Central Bancshares, Inc.
825 Central Avenue
Fort Dodge, Iowa 50501
515-576-7531
NORTH CENTRAL BANCSHARES, INC. ANNOUNCES EARNINGS
FOR QUARTER ENDED MARCH 31, 2004
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 $0.73 diluted earnings per share for the
quarter ended March 31, 2004, compared to diluted earnings per share of $0.88
for the quarter ended March 31, 2003. In dollars, the Company's net income was
$1,217,000 for the quarter ended March 31, 2004, as compared to $1,502,000 for
the quarter ended March 31, 2003. Net income decreased primarily due to an
increase in operating expenses. (See below)
Total assets at March 31, 2004 were $441.5 million as compared to $424.0 million
at December 31, 2003. The increase in assets consisted primarily of an increase
in loans. Loans increased by $18.5 million, or 5.1%, to $381.5 million at March
31, 2004 from $363.0 million at December 31, 2003. At March 31, 2004, net loans
consisted of $171.0 million of one-to-four family loans, $76.7 million of
multifamily real estate loans, $81.0 million of commercial real estate loans and
$52.7 million of consumer loans. The increase in net loans consisted of an
increase of $7.2 million in multifamily real estate loans and a $12.1 million
increase in commercial real estate loans, offset in part by a $0.5 million
decrease in one-to-four family loans and a $0.3 million decrease in consumer
loans. The increase in loans was due primarily to the origination of one-to-four
family loans and multifamily loans, the purchase of multifamily and commercial
real estate loans and the origination of second mortgage loans. These
originations and purchases were offset in part by payments, loan prepayments and
sales of loans.
Deposits increased $10.2 million, or 3.6%, to $294.1 million at March 31, 2004
from $284.0 million at December 31, 2003. The increase in deposits is due in
part to the newly opened office in Clive, Iowa and the office in Ankeny, Iowa.
Other borrowed funds increased $8.0 million, or 8.4%, to $103.0 million at March
31, 2004 from $95.0 million at December 31, 2003. The increase in the deposits
and borrowed funds were used fund loans.
Nonperforming assets were 0.37% of total assets as of March 31, 2004 compared to
0.49% of total assets as of December 31, 2003. The allowance for loan losses was
$3.2 million, or 0.83% of total loans, at March 31, 2004, compared to $3.2
million, or 0.86% of total loans, at December 31, 2003.
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The net interest spread of 2.97% for the quarter ended March 31, 2004
represented a decrease from the net interest spread of 3.11% for the quarter
ended March 31, 2003. The net interest margin of 3.18% for the quarter ended
March 31, 2004 represented a decrease from the net interest margin of 3.40% for
the quarter ended March 31, 2003. Net interest income for the quarter ended
March 31, 2004 was $3,283,000, compared to net interest income of $3,347,000 for
the quarter ended March 31, 2003.
The Company's provision for loan losses was $60,000 for each of the quarters
ended March 31, 2004 and 2003, 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 $41.2 million at March 31, 2004, compared to $41.6
million at December 31, 2003. Stockholders' equity decreased by $391,000
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, 2004 was $26.06 compared to $25.92 at December 31, 2003.
The ratio of stockholders' equity to total assets was 9.3% at March 31, 2004, as
compared to 9.8% at December 31, 2003.
All stockholders of record on March 16, 2004, received a quarterly cash dividend
of $0.25 per share on April 7, 2004. The Company has 1,580,780 shares of common
stock currently outstanding.
During the quarter ended March 31, 2004, the Company repurchased a total of
61,705 shares or approximately 3.8% of its outstanding shares of common stock at
prevailing market prices averaging $36.71 per share. Since its formation in
1996, the Company has invested a total of $49.1 million in the repurchase of
2,653,272 shares of its outstanding stock.
The Company's noninterest income was $1,432,000 and $1,393,000 for the quarters
ended March 31, 2004 and 2003, respectively. The increase in noninterest income
was due in part to increases in fees associated with checking accounts,
including overdraft fees, increases in revenues from the sale of annuities and
mutual funds, an increase in rent income due to the opening of a second
multifamily apartment building in March, 2003, increases in loan prepayment fees
and increases from the sale of insurance, offset in part by decreases in
mortgage banking income and abstract fees.
The Company's noninterest expense was $2.9 million and $2.6 million for the
quarters ended March 31, 2004 and 2003, 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 $576,000 and $620,000 for the
quarters ended March 31, 2004 and 2003, respectively. The decrease in the
provision for income taxes was due to the decrease in the income before income
taxes and an increase in recurring low income federal tax credit, offset in part
by a one time low-income housing Iowa income tax credit with an effect on net
income of approximately $100,000 that was recorded in 2003.
In March, 2004, the Bank relocated its Clive office from its temporary location
to its newly constructed office building located at 13150 Hickman Road, Clive,
Iowa. In February, 2003, the Bank relocated its Ankeny office from its temporary
location to its newly constructed office building located at 2110 SE Delaware,
Ankeny, 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) March 31, 2004 December 31, 2003
-------------- -----------------
Assets
Cash and cash equivalents $ 8,611 $ 10,019
Securities available-for-sale 26,905 26,952
Loans (net of allowance of loan loss of $3,193 and
$3,165, respectively) 381,456 362,959
Goodwill 4,971 4,971
Other assets 19,599 19,108
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Total Assets $ 441,542 $ 424,009
========== ==========
Liabilities
Deposits $ 294,119 $ 283,964
Other borrowed funds 102,998 95,005
Other liabilities 3,224 3,448
---------- ----------
Total Liabilities 400,341 382,417
Stockholders' Equity 41,201 41,592
---------- ----------
Total Liabilities and Stockholders' Equity $ 441,542 $ 424,009
========== ==========
Stockholders' equity to total assets 9.33% 9.81%
========== ==========
Book value per share $ 26.06 $ 25.92
========== ==========
Total shares outstanding 1,580,780 1,604,780
========== ==========
Condensed Consolidated Statements of Income
(Unaudited)
(Dollars in Thousands, except per share data)
For the Three Months
Ended March 31,
2004 2003
---- ----
Interest income $6,100 $6,526
Interest expense 2,817 3,180
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Net interest income 3,283 3,346
Provision for loan loss 60 60
------ ------
Net interest income after provision for loan loss 3,223 3,286
Noninterest income 1,432 1,393
Noninterest expense 2,863 2,557
------ ------
Income before income taxes 1,792 2,122
Income taxes 576 620
------ ------
Net income $1,217 $1,502
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Basic earnings per share $ 0.77 $ 0.94
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Diluted earnings per share $ 0.73 $ 0.88
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For the Three Months
Selected Financial Ratios Ended March 31,
2004 2003
---- ----
Performance ratios
Net interest spread 2.97% 3.11%
Net interest margin 3.18% 3.40%
Return on average assets 1.13% 1.45%
Return on average equity 11.63% 15.44%
Efficiency ratio (noninterest expense divided by
the sum of net interest income before provision
for loan losses plus noninterest income) 60.72% 53.96%