FINANCIAL HIGHLIGHTS OF NORTH CENTRAL BANCSHARES, INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Financial Condition
Actual Actual Pro Forma*
(Dollars in Thousands, except per share and share data) September 30, 1998 December 31, 1997 December 31, 1997
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Assets
Cash and cash equivalents $ 6,530 $ 3,445 $ 8,517
Securities available for sale 51,234 19,816 58,892
Loans (net of allowance of loan loss of $2.7
million, $2.2 million and $2.5 million,
respectively) $ 258,576 191,249 250,701
Goodwill 6,506 196 6,735
Other assets 11,872 7,248 9,304
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Total Assets $ 334,718 $ 221,954 $ 334,149
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Liabilities
Deposits $ 245,659 $ 141,124 $ 240,635
Other borrowed funds 37,088 28,550 39,859
Other liabilities 2,236 1,863 3,238
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Total Liabilities 284,983 171,537 283,732
Stockholders' Equity $ 49,735 $ 50,417 $ 50,417
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Total Liabilities and Stockholders' Equity $ 334,718 $ 221,954 $ 334,149
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Stockholders' equity to total assets 14.86% 22.72% 15.09%
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Book value per share $ 16.02 $ 15.43 $ 15.43
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Total shares outstanding 3,104,159 3,266,483 3,266,483
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* See explanatory note on following page.
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,
1998 1997 1998 1997
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Interest income $6,045 $4,100 $17,560 $11,936
Interest expense 3,318 2,026 9,481 5,776
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Net interest income 2,727 2,074 8,079 6,160
Provision for loan loss 60 60 180 180
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Net interest income after provision for loan loss 2,667 2,014 7,899 5,980
Noninterest income 1,004 593 2,739 1,676
Gain (loss) on the sale of securities available for sale (3) -- 51 --
Noninterest expense 1,988 1,111 5,517 3,339
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Income before income taxes 1,680 1,496 5,172 4,317
Income taxes 606 523 1,876 1,495
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Net income $1,074 $ 973 $ 3,296 $ 2,822
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Basic earnings per share $ 0.36 $ 0.31 $ 1.07 $ 0.88
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Diluted earnings per share $ 0.35 $ 0.31 $ 1.04 $ 0.87
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For the Three Months For the Nine Months
Ended September 30, Ended September 30,
1998 1997 1998 1997
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Performance ratios: Actual
Net interest spread 2.84% 2.85% 2.84% 2.87%
Net interest margin 3.46% 4.01% 3.54% 4.07%
Return on average assets 1.29% 1.82% 1.37% 1.81%
Return on average equity 8.68% 7.97% 8.71% 7.66%
Efficiency ratio (noninterest expense divided by the
sum of net interest income before provision for
loan losses plus noninterest income) 53.32% 41.65% 50.76% 42.62%
Pro Forma Condensed Consolidated Statements of Income*
For the Three Months For the Nine Months
Ended September 30, Ended September 30,
1998 1997 1998 1997
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Interest income $6,045 $6,086 $18,182 $17,753
Interest expense 3,318 3,415 9,931 9,827
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Net interest income 2,727 2,671 8,251 7,926
Provision for loan loss 60 60 180 80
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Net interest income after provision for loan loss 2,667 2,611 8,071 7,846
Noninterest income 1,004 805 2,792 2,267
Gain (loss) on the sale of securities available for sale (3) 9 51 9
Noninterest expense 1,988 1,838 5,923 5,413
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Income before income taxes 1,680 1,587 4,991 4,709
Income taxes 606 582 1,834 1,709
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Net income $1,074 $1,005 $ 3,157 $ 3,000
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*See explanatory note below.
Selected Financial Ratios
For the Three Months For the Nine Months
Ended September 30, Ended September 30,
1998 1997 1998 1997
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Performance ratios: Pro Forma*
Net interest spread 2.84% 2.83% 2.83% 2.82%
Net interest margin 3.46% 3.40% 3.49% 3.45%
Return on average assets 1.29% 1.21% 1.26% 1.29%
Return on average equity 8.68% 8.22% 8.34% 8.57%
Efficiency ratio (noninterest expense divided by the
sum of net interest income before provision for
loan losses plus noninterest income) 53.32% 52.73% 53.39% 53.06%
*See explanatory note below.
September 30, 1998 June 30, 1998 December 31, 1997
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Asset Quality Ratios:
Nonaccrual loans to total net loans 0.21% 0.10% 0.08%
Nonperforming assets to total assets 0.19% 0.14% 0.10%
Allowance for loan losses as a percent
of total loans receivable 1.01% 1.02% 1.10%
*Pro Forma Consolidated Condensed Financial Statements (Unaudited)
The above unaudited pro forma consolidated financial statements presented are
based on the historical financial statements of the Company and Valley
Financial. The unaudited pro forma consolidated statements of income for the
three and nine months ended September 30, 1998 and 1997 were prepared as if the
Acquisition had occurred as of the beginning of the respective periods for
purposes of the combined consolidated statements of income and as if such an
Acquisition had occurred at December 31, 1997 for purposes of the combined
consolidated statement of financial condition.
The pro forma financial statements are not necessarily indicative of the results
of operations that might have occurred had the Acquisition taken place at the
beginning of the period, or to project the Company' results of operations at any
future date or for any future period.