Exhibit 99.3 Press Release
April 21, 1997
For Further Information Contact:
David M. Bradley
Chairman, President & Chief Executive Officer
North Central Bancshares, Inc.
825 Central Avenue
Fort Dodge, Iowa 50501
Phone: (515) 576-7531
NORTH CENTRAL BANCSHARES, INC. ANNOUNCES EARNINGS
(Nasdaq: FFFD)
Fort Dodge, Iowa -- North Central Bancshares, Inc., (the "Company") the holding
company for First Federal Savings Bank of Fort Dodge (the "Bank"), announced
today that the Company earned $889,000, or $0.27 per share for the first quarter
of 1997. This compares to net income of $656,000, or $0.17 per share during the
first quarter of 1996.
On March 20, 1996, First Federal Savings Bank completed a reorganization from a
mutual holding company form of organization to a stock holding company form of
organization. Pursuant to this transaction, the Bank became a wholly-owned
subsidiary of North Central Bancshares, Inc. and the Company replaced the Bank
as the issuer listed by The Nasdaq Stock Market. In addition to the exchange of
the Bank's common stock for 1,385,590 shares of the Company's stock, the Company
sold 2,625,467 shares of stock in a subscription offering. This stock offering
resulted in net proceeds for the Company of $25.4 million.
Total assets at March 31, 1997 were $203.5 million as compared to $203.1 million
at December 31, 1996. The increase in total assets resulted primarily from
increases in securities available for sale, loans and other assets, partially
offset by decreases in cash and securities held to maturity. Deposits increased
$2.7 million, or 2.0% from $129.7 million at December 31, 1996 to $132.4 million
at March 31, 1997. Other borrowed funds decreased $3.0 million or 13.6% from
$22.3 million at December 31, 1996 to $19.3 million at March 31, 1997.
Nonperforming assets were 0.22% of total assets as of March 31, 1997 compared to
0.15% of total assets as of December 31, 1996. The allowance for loan losses was
$2.0 million or 1.17% of total loans at March 31, 1997, compared to $2.0 million
or 1.14% of total loans at December 31, 1996.
The net interest margin for the three months ended March 31, 1997 was 4.15%
compared to 3.89% for the corresponding three months in 1996, primarily due to
the use of the proceeds of the offering during the entire first quarter of 1997,
as compared to the use of such funds for only several days in the first quarter
of 1996. Net interest income for the three months ending March 31, 1997 was $2.1
million, an increase of 17.8% from $1.7 million for the corresponding period
last year. Interest income for the three months ended March 31, 1997 increased
$327,000, or 9.2%, compared with the corresponding period in 1996, due primarily
to increased average balances of interest-earning assets. Interest expense
increased $18,000 or 1.0%, when comparing the three months ended March 31, 1997
with the corresponding period of 1996. The
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increase in interest expense was due primarily to an increase in the average
balance of interest-bearing liabilities.
The Bank's provision for loan losses was $60,000, for the three months ended
March 31, 1997 and 1996. The Bank 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 collectiblity of the Bank's loan portfolio.
Noninterest income increased $62,000, or 14.7%, primarily as a result of the
increases in abstract fees due to increased sales volume and noninterest expense
increased $34,000 or 3.2%, for the three months ended March 31, 1997 compared to
the corresponding period of 1996.
Stockholders' equity was $50.0 million at March 31, 1997, compared to $49.2
million at December 31, 1996. Book value, or stockholders' equity, per share at
March 31, 1997 was $14.59 and was $14.36 at December 31, 1996. The ratio of
stockholders' equity to total assets was 24.6% at March 31, 1997, as compared to
24.2% at December 31, 1996.
North Central Bancshares, Inc. serves north central Iowa at 4 full service
locations in Fort Dodge, Nevada and Ames, Iowa through its wholly-owned
subsidiary, First Federal Savings Bank of Fort Dodge, headquartered in Fort
Dodge, Iowa. The Bank's deposits are insured by the Federal Deposit Insurance
Corporation. The Company's stock is traded on The Nasdaq National Market under
the symbol "FFFD".
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FINANCIAL HIGHLIGHTS OF NORTH CENTRAL BANCSHARES, INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Financial Condition
(Dollars in Thousands, except per share and share data) March 31, 1997 December 31, 1996
-------------- ------------------
Assets
Cash and cash equivalents $ 3,013 $ 3,937
Securities available for sale 23,382 23,104
Securities held to maturity (Market value
$1.0 million and $3.5 million, respectively) 1,000 3,500
Loans (net of allowance of loan loss of $2.0
million and $2.0 million, respectively) 168,923 165,831
Other assets 7,179 6,721
--------- ---------
Total Assets $ 203,497 $ 203,093
========= =========
Liabilities
Deposits $ 132,374 129,722
Other borrowed funds 19,300 22,335
Other liabilities 1,784 1,801
--------- ---------
Total Liabilities 153,458 153,858
Stockholders' Equity 50,039 49,235
--------- ---------
Total Liabilities and Stockholders' Equity $ 203,497 $ 203,093
========= =========
Stockholders' equity to total assets 24.59% 24.24%
========= =========
Book value per share $ 14.59 $ 14.36
========= =========
Total shares outstanding 3,429,455 3,429,455
========= =========
Condensed Consolidated Statements of Income
(Dollars in Thousands, except per share data)
For the Three Months
Ended March 31,
1997 1996
------ ------
Interest income $3,905 $3,578
Interest expense 1,854 1,837
------ ------
Net interest income 2,051 1,741
Provision for loan loss 60 60
------ ------
Net interest income after provision for loan loss 1,991 1,681
Noninterest income 484 408
Gain on the sale of securities available for sale -- 14
Noninterest expense 1,110 1,075
------ ------
Income before income taxes 1,365 1,028
Income taxes 476 372
------ ------
Net income $ 889 $ 656
====== ======
Earnings per share $ 0.27 $ 0.17
====== ======
Selected Financial Ratios
For the Three Months
Ended March 31,
1997 1996
----- -----
Performance ratios:
Net interest spread 2.87% 2.94%
Net interest margin 4.15% 3.89%
Return on average assets 1.74% 1.43%
Return on average equity 7.15% 7.69%
Efficiency ratio (noninterest expense divided by the
sum of net interest income before provision for
loan losses plus noninterest income) 43.79% 49.55%
March 31, 1997 December 31, 1996
-------------- -----------------
Asset Quality Ratios:
Nonaccrual loans to total net loans 0.18% 0.11%
Nonperforming assets to total assets 0.22% 0.15%
Allowance for loan losses as a percent
of total loans receivable 1.17% 1.14%
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