Exhibit 99.3 Limited Financial Information
October 20, 1997 For further information contact:
David M. Bradley
Chairman, President and Chief Executive Officer
North Central Bancshares
825 Central Avenue PO Box 1237
Fort Dodge, Iowa 50501
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 $973,000, or $0.31 per share for the third quarter
of 1997, compared to $500,000, or $0.13 per share, during the third quarter of
1996. For the nine months ended September 30, 1997, the Company's net earnings
were $2.8 million or $0.88 per share, as compared to $2.2 million or $0.56 per
share for the corresponding period a year ago.
Total assets at September 30, 1997 were $215.1 million as compared to $203.1
million at December 31, 1996. The increase in total assets resulted primarily
from increases in loans, partially offset by decreases in securities held to
maturity and securities available for sale. Loans increased $15.3 million, or
9.2% from $165.8 million at December 31, 1996 to $181.1 million at September 30,
1997. Deposits increased $9.5 million, or 7.3% from $129.7 million at December
31, 1996 to $139.3 million at September 30, 1997. Other borrowed funds
increased $3.2 million or 14.4% from $22.3 million at December 31, 1996 to $25.6
million at September 30, 1997.
Nonperforming assets were 0.22% of total assets as of September 30, 1997
compared to 0.15% of total assets as of December 31, 1996. The allowance for
loan losses was $2.1 million or 1.15% of total loans at September 30, 1997,
compared to $2.0 million or 1.14% of total loans at December 31, 1996.
The net interest margin for the quarter ended September 30, 1997 was 4.01%
compared to 4.51% for the corresponding quarter in 1996. Net interest income
for the quarter ended September 30, 1997 was $2.1 million, a decrease of 3.6%
from $2.2 million for the corresponding period last year.
Interest income for the quarter ended September 30, 1997 increased $275,000, or
7.2%, compared with the corresponding period in 1996, due primarily to increased
average balances of interest-earning assets, partially offset by a decrease in
the average yield on such assets. Interest expense increased $353,000 or 21.1%,
when comparing the quarter ended September 30, 1997 with the corresponding
period of 1996. The increase in interest expense was due primarily to an
increase in the average balance of interest-bearing liabilities and an increase
in the average cost of interest-bearing liabilities.
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The Company's provision for loan losses was $60,000, for the quarter ended
September 30, 1997 and 1996. 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 Company's
portfolio, and other factors related to the collectibility of the Company's loan
portfolio.
Noninterest income for the three months ended September 30, 1997 increased
$93,000, or 18.6%, compared to the three months ended September 30, 1996,
primarily as a result of the increases in abstract fees due to increased sales
volume and rental income, partially offset by decreases in annuity and insurance
sales. Noninterest expense for the three months ended September 30, 1997
decreased $721,000 or 39.3%, compared to the three months ended September 30,
1996, primarily as a result of the one time SAIF special assessment accrued
during the third quarter of 1996, partially offset by increases in salaries and
employee benefits and other expenses. Noninterest expense for the three months
ended September 30, 1997 increased $96,000 or 9.5%, compared to the three months
ended September 30, 1996, excluding the one time SAIF special assessment accrued
during the third quarter of 1996.
Stockholders' equity was $49.3 million at September 30, 1997, compared to $49.2
million at December 31, 1996. Book value, or stockholders' equity, per share at
September 30, 1997 was $15.13 and was $14.36 at December 31, 1996. The ratio of
stockholders' equity to total assets was 22.9% at September 30, 1997, as
compared to 24.2% at December 31, 1996.
On September 19, 1997, the Company announced that it had entered into a
definitive agreement pursuant to which the Company will acquire Valley Financial
Corp. ("Valley"), an Iowa corporation, and its wholly-owned subsidiary, Valley
Savings Bank, FSB, a federally chartered savings bank. Valley Savings Bank has
two offices in Burlington, Iowa and one office in Mount Pleasant, Iowa. At
September 30, 1997, Valley had assets of $111.5 million, loans of $60.0 million
and deposits of $101.9 million. The transaction, subject to regulatory approval
and approval of Valley's shareholders, is expected to close in the first quarter
of 1998.
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".
For more information contact: David M. Bradley, President, 515-576-7531
FINANCIAL HIGHLIGHTS OF NORTH CENTRAL BANCSHARES, INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Financial Condition
(Dollars in Thousands, except per share and share data) September 30, 1997 December 31, 1996
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Assets
Cash and cash equivalents $ 4,521 $ 3,937
Securities available for sale 22,242 23,104
Securities held to maturity (Market value
$3.5 million) -- 3,500
Loans (net of allowance of loan loss of $2.1
million and $2.0 million, respectively) 181,120 165,831
Other assets 7,250 6,721
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Total Assets $ 215,133 $ 203,093
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Liabilities
Deposits $ 139,255 129,722
Other borrowed funds 25,550 22,335
Other liabilities 1,025 1,801
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Total Liabilities 165,830 153,858
Stockholders' Equity 49,303 49,235
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Total Liabilities and Stockholders' Equity $ 215,133 $ 203,093
================== =================
Stockholders' equity to total assets 22.92% 24.24%
================== =================
Book value per share $ 15.13 $ 14.36
================== =================
Total shares outstanding 3,257,983 3,429,455
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Condensed Consolidated Statements of Income
(Dollars in Thousands, except per share data)
For the Three Months For the Nine Months
Ended September 30, Ended September 30,
1997 1996 1997 1996
------ ------ ------- -----
Interest income $4,100 $3,825 $11,936 $11,136
Interest expense 2,026 1,673 5,775 5,116
------ ------ ------- -------
Net interest income 2,074 2,152 6,161 6,020
Provision for loan loss 60 60 180 180
------ ------ ------- -------
Net interest income after provision for loan loss 2,014 2,092 5,981 5,840
Noninterest income 593 500 1,677 1,391
Gain on the sale of securities available for sale -- -- -- 14
Noninterest expense 1,111 1,832 3,340 3,872
------ ------ ------- -------
Income before income taxes 1,496 760 4,318 3,373
Income taxes 523 260 1,496 1,210
------ ------ ------- -------
Net income $ 973 $ 500 $ 2,822 $ 2,163
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Earnings per share $ 0.31 $ 0.13 $ 0.88 $ 0.56
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Selected Financial Ratios
For the Three Months For the Nine Months
Ended September 30, Ended September 30,
1997 1996 1997 1996
------ ------ ------ ------
Performance ratios:
Net interest spread 2.85% 3.04% 2.87% 3.02%
Net interest margin 4.01% 4.51% 4.07% 4.33%
Return on average assets 1.82% 1.02% 1.81% 1.52%
Return on average equity 7.97% 3.57% 7.66% 5.98%
Efficiency ratio (noninterest expense divided by the
sum of net interest income before provision for
loan losses plus noninterest income) 41.65% 69.06% 42.62% 52.16%
September 30, 1997 June 30, 1997 December 31, 1996
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Asset Quality Ratios:
Nonaccrual loans to total net loans 0.13% 0.08% 0.11%
Nonperforming assets to total assets 0.22% 0.12% 0.15%
Allowance for loan losses as a percent
of total loans receivable 1.15% 1.18% 1.14%