Exhibit 99.4 Press Release
PRESS RELEASE For More Information Contact:
April 16, 1999 David M. Bradley, President
North Central Bancshares, Inc.
825 Central Avenue
Fort Dodge, Iowa 50501
515-576-7531
NORTH CENTRAL BANCSHARES, INC. ANNOUNCES FIRST QUARTER 1999 EARNINGS
(Nasdaq: FFFD)
Fort Dodge, Iowa -- North Central Bancshares, Inc., (the "Company") the holding
company for First Federal Savings Bank of Iowa (the "Bank"), announced today
that the Company earned $1,058,000, or diluted earnings per shares of $0.36, for
the first quarter of 1999, compared to $1,106,000, or diluted earnings per share
of $0.34, for the first quarter of 1998.
As of the close of business on January 30, 1998, the Bank completed the
acquisition of Valley Financial Corp. pursuant to an Agreement and Plan of
Merger, dated as of September 18, 1997. The acquisition resulted in the merger
of Valley Financial's wholly owned subsidiary, Valley Savings Bank, FSB, with
and into the Bank, with the Bank as the resulting financial institution. Valley
Savings, headquartered in Burlington, Iowa, was a federally-charted stock
savings bank with three branch offices located in southeastern Iowa, with assets
of approximately $110 million. The former offices of Valley Savings are being
operated as a division of the Bank.
The acquisition was accounted for as a purchase transaction and therefore, the
operating results of the former offices of Valley Savings Bank are included in
the 1998 operating results of the Company only from the date of acquisition
through March 31, 1998. Therefore, the comparison between periods is
significantly impacted by this acquisition.
Stockholders of record on March 16, 1999, received a quarterly cash dividend of
$0.10 per share, a 25% increase from the cash dividend of $0.08 per share paid
during the previous quarter.
Total assets at March 31, 1999 were $334.4 million as compared to $336.7 million
at December 31, 1998. The decrease in assets resulted primarily from decreases
in interest-bearing cash and loans, offset by increases in securities available
for sale. Interest-bearing cash decreased $2.4 million, or 18.4% from $13.2
million at December 31, 1998 to $10.8 million at March 31, 1999. Loans decreased
by $513,000, or 0.2% from $254.0 million at December 31, 1998 to $253.5 million
at March 31, 1999. Securities available for sale increased $2.2 million, or 4.3%
from $49.9 million at December 31, 1998 to $52.0 million at March 31, 1999.
- MORE -
Deposits decreased $969,000, or 0.4% from $246.7 million at December 31, 1998 to
$245.7 million at March 31, 1999. Other borrowed funds decreased $1.0 million,
or 2.6% from $38.8 million at December 31, 1998 to $37.8 million at March 31,
1999.
The unaudited pro forma consolidated statement of income, for the three months
ended March 31, 1998, presented in this press release is based on the historical
financial statements of the Company and Valley Financial and was prepared as if
the Acquisition had occurred as of the beginning of the period for purposes of
the combined consolidated statement of income.
The pro forma financial statement of income is 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.
Nonperforming assets were 0.17% of total assets as of March 31, 1999 compared to
0.34% of total assets as of December 31, 1998. The allowance for loan losses
was $2.7 million or 1.05% of total loans at March 31, 1999, compared to $2.7
million or 1.03% of total loans at December 31, 1998.
The net interest spread for the three months ended March 31, 1999 of 2.92% was
increased from the pro forma net interest spread of 2.81% for the three months
ended March 31, 1998. The net interest margin for the three months ended March
31, 1999 was 3.49% compared to the pro forma net interest margin of 3.50% for
the three months ended March 31, 1998. Net interest income for the three months
ended March 31, 1999 was $2.8 million, compared to pro forma net interest income
of $2.8 million for the corresponding period a year ago.
The Bank's provision for loan losses was $30,000 for the three months ended
March 31, 1999, compared to pro forma provision for loan losses of $60,000 for
the corresponding period a year ago. 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.
Stockholders' equity was $48.8 million at March 31, 1999, compared to $48.2
million at December 31, 1998. Book value, or stockholders' equity, per share at
March 31, 1999 was $16.49 and was $16.26 at December 31, 1998. The ratio of
stockholders' equity to total assets was 14.6% at March 31, 1999, as compared to
14.3% at December 31, 1998.
North Central Bancshares, Inc. serves north central and southeastern Iowa at 7
full service locations in Fort Dodge, Nevada, Ames, 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. 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 March 31, 1999 December 31, 1998
data)
--------------- ------------------
Assets
Cash and cash equivalents $ 12,307 $ 15,637
Securities available for sale 52,047 49,883
Loans (net of allowance of loan loss of $2.7
million and $2.7 million, respectively) 253,519 254,032
Goodwill 6,270 6,388
Other assets 10,273 10,750
---------- ----------
Total Assets $ 334,416 $ 336,690
========== ==========
Liabilities
Deposits $ 245,721 $ 246,690
Other borrowed funds 37,805 38,832
Other liabilities 2,134 2,961
---------- ----------
Total Liabilities 285,660 288,483
Stockholders' Equity 48,756 48,207
---------- ----------
Total Liabilities and Stockholders' Equity $ 334,416 $ 336,690
========== ==========
Stockholders' equity to total assets 14.58% 14.32%
========== ==========
Book value per share $ 16.49 $ 16.26
========== ==========
Total shares outstanding 2,957,242 2,964,449
========== ==========
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Dollars in Thousands, except per share data)
For the Three Months
Ended March 31,
1999 1998
--------- ---------
Interest income $5,967 $5,465
Interest expense 3,200 2,873
------ ------
Net interest income 2,767 2,592
Provision for loan loss 30 60
------ ------
Net interest income after provision for loan loss 2,737 2,532
Noninterest income 920 760
Gain on the sale of securities available for sale -- 55
Noninterest expense 2,054 1,634
------ ------
Income before income taxes 1,603 1,713
Income taxes 545 607
------ ------
Net income $1,058 $1,106
====== ======
Basic earnings per share $ 0.37 $ 0.35
====== ======
Diluted earnings per share $ 0.36 $ 0.34
====== ======
SELECTED FINANCIAL RATIOS
For the Three Months
Ended March 31,
1999 1998
---------- ----------
Performance ratios:
Net interest spread 2.92% 2.86%
Net interest margin 3.49% 3.68%
Return on average assets 1.27% 1.49%
Return on average equity 8.71% 8.67%
Efficiency ratio (noninterest expense divided by the
sum of net interest income before provision for 55.71% 47.96%
loan losses plus noninterest income)
March 31, 1999 December 31, 1998
--------------- ------------------
Asset Quality Ratios:
Nonaccrual loans to total net loans 0.11% 0.38%
Nonperforming assets to total assets 0.17% 0.34%
Allowance for loan losses as a percent
of total loans receivable 1.05% 1.03%
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
For the Three Months
Ended March 31,
Actual ProForma*
1999 1998
-------- ----------
Interest income $5,967 $6,088
Interest expense 3,200 3,323
------ ------
Net interest income 2,767 2,765
Provision for loan loss 30 60
------ ------
Net interest income after provision for loan loss 2,737 2,705
Noninterest income 920 821
Gain on the sale of securities available for sale -- 55
Noninterest expense 2,054 1,988
------ ------
Income before income taxes 1,603 1,593
Income taxes 545 588
------ ------
Net income $1,058 $1,005
====== ======
*See explanatory note below.
SELECTED FINANCIAL RATIOS
For the Three Months
Ended March 31,
Actual ProForma*
1999 1998
--------- -----------
Performance ratios:
Net interest spread 2.92% 2.81%
Net interest margin 3.49% 3.50%
Return on average assets 1.27% 1.20%
Return on average equity 8.71% 7.89%
Efficiency ratio (noninterest expense divided by the
sum of net interest income before provision for
loan losses plus noninterest income) 55.71% 54.60%
*See explanatory note below.
*PRO FORMA CONSOLIDATED CONDENSED STATEMENT OF INCOME (UNAUDITED)
The above unaudited pro forma consolidated statement of income presented is
based on the historical financial statements of the Company and Valley
Financial. The unaudited pro forma consolidated statements of income for the
three months ended March 31, 1998 was prepared as if the Acquisition had
occurred as of the beginning of the respective period for purposes of the
combined consolidated statements of income.
The pro forma statement of income is 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.