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North Central Bancshares, Inc. Announces Results for First Quarter 2008
North Central Bancshares, Inc. Announces Results for First Quarter 2008
FORT DODGE, Iowa, May 8 /PRNewswire-FirstCall/ -- North Central
Bancshares, Inc. (the "Company") (Nasdaq: FFFD), the holding company for First
Federal Savings Bank ofIowa (the "Bank"), announced today the Company's
diluted earnings per share for the quarter ended March 31, 2008 was $0.60,
compared to diluted earnings per share of $0.75 for the quarter ended
March 31, 2007. The Company's net income was $804,000 for the quarter ended
March 31, 2008, compared to $1.03 million for the quarter ended March 31,
2007. The decrease in earnings and net income was primarily due to an
increase in other expenses including a write down of value on other real
estate owned.
Net interest income for the quarter ended March 31, 2008 was $3.19
million, compared to net interest income of $3.28 million for the quarter
ended March 31, 2007. The decrease in net interest income was primarily due
to a decrease in interest-earnings assets, offset by an increase in net
interest spread. The net interest spread increased to 2.46% for the quarter
ended March 31, 2008 from 2.44% for the quarter ended March 31, 2007.
The Company's provision for loan losses was $60,000 and $30,000 for the
quarters ended March 31, 2008 and 2007, 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 loss experience, industry
standards, past due loans, economic 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.
The Company's noninterest income was $1.70 million and $1.64 million for
the quarters ended March 31, 2008 and 2007, respectively. The increase in
noninterest income was primarily due to increases in mortgage banking income
and abstract fees. During the quarter ended March 31, 2008, the Company
recorded $161,000 in mortgage banking income, compared to $57,000 for the
quarter ended March 31, 2007. Abstract fees increased by $26,000 to $264,000
for the quarter ended March 31, 2008, compared to $238,000 for the quarter
ended March 31, 2007.
The Company's noninterest expense was $3.74 million and $3.43 million for
the quarters ended March 31, 2008 and 2007, respectively. The increase in
noninterest expense was primarily due to information technology enhancements.
Other expenses increased $163,000 primarily due to the write down of, and
expenses related to, other real estate owned.
The Company's provision for income taxes was $291,000 and $421,000 for the
quarters ended March 31, 2008 and 2007, respectively. The decrease in the
provision for income taxes was primarily due to the decrease in income before
income taxes offset by a $35,000 reduction of income tax credits available.
Total assets at March 31, 2008 were $508.5 million, compared to $510.2
million at December 31, 2007. Net loans decreased by $6.8 million, or 1.51%
to $440.1 million at March 31, 2008, from $446.9 million at December 31, 2007.
The decrease in net loans was primarily due to payments, prepayments, and
sales of loans, offset in part by the origination of one-to-four family
residential, consumer loans, and the purchase of multi-family real estate
loans. At March 31, 2008, net loans consisted and changed from December 31,
2007 to $188.4 million of one-to-four family real estate representing a
decrease of $9.5 million, $114.9 million of commercial real estate loans
representing a decrease of $5.1 million, $64.3 million of multi-family real
estate loans representing an increase of $8.2 million, and $72.5 million of
consumer loans representing a decrease of $400,000. Cash and cash equivalents
increased $2.3 million, or 18.5%, to $14.8 million at March 31, 2008, compared
to $12.5 million at December 31, 2007. The increase in cash and cash
equivalents was primarily due to an increase in deposits and a reduction of
net loans outstanding offset by a decrease in borrowed funds. The increase in
securities available-for-sale was primarily due to the purchase of $3 million
mortgage backed securities during the quarter ended March 31, 2008.
Deposits increased $2.1 million, or 0.6%, to $368.0 million at March 31,
2008, from $365.9 million at December 31, 2007. Borrowed funds decreased
$3.5 million, or 3.6%, to $93.9 million at March 31, 2008, from $97.4 million
at December 31, 2007.
Nonperforming assets were 0.91% of total assets as of March 31, 2008,
compared to 0.97% of total assets as of December 31, 2007. The allowance for
loan losses was $3.51 million, or 0.79% of total loans, at March 31, 2008,
compared to $3.49 million, or 0.77% of total loans, at December 31, 2007.
Other real estate owned by the Company totaling $1.41 million at March 31,
2008 was sold by the Company on April 18, 2008. Excluding these assets from
results as of March 31, 2008, the nonperforming assets would have been 0.64%
of total assets.
Stockholders' equity was $41.2 million at March 31, 2008, compared to
$41.0 million at December 31, 2007. Stockholders' equity increased by
$219,000 primarily due to earnings offset in part by declared dividends and a
change in accumulated other comprehensive loss. Book value or stockholders'
equity per share, at March 31, 2008 was $30.74, compared to $30.56 at
December 31, 2007. The ratio of stockholders' equity to total assets was
8.10% at March 31, 2008, compared to 8.03% at December 31, 2007.
All stockholders of record on March 14, 2008, received a quarterly cash
dividend of $0.35 per share on April 4, 2008. As of March 31, 2008, the
Company had 1,339,948 shares of common stock outstanding.
On April 25, 2008 Regency Homes, aWest Des Moines, Iowa based homebuilder
("Regency") announced that it was suspending business. Neither the Company
nor the Bank has made any loans directly to Regency. However, the Company
does have first mortgage loans outstanding totaling $3.8 million to four
different limited liability entities ("the Entities") in which Regency-related
individuals are owners and limited guarantors. Three of these Entities are
performing, single asset, commercial real estate loans with collateral values
believed to be sufficient to cover any amounts owed to the Company. The
fourth of these Entities has a land development project comprised of developed
single family residential lots and adjacent bare land slated for future
residential development in aDes Moines suburb. The loans outstanding for
this project are approximately $970,000. The Company believes the collateral
value of this development is sufficient to cover the loan balance. None of
the loans related to the Entities are in default. However, due to Regency's
announcement, the Company has classified the loan development loan of $970,000
as special mention at March 31, 2008.
North Central Bancshares, Inc. held its 2008 Annual Meeting on April 25,
2008. On April 25, 2008, Paul F. Bognanno and Mark M. Thompson were
re-elected as Directors of North Central Bancshares, Inc., each to serve for a
three year term ending in 2011.
About the Company and the Bank
North Central Bancshares, Inc. serves north central and southeasternIowa
at eleven full service locations inFort Dodge,Nevada,Ames,Perry,Ankeny,
Clive,West Des Moines,Burlington, andMount Pleasant, Iowa through its
wholly-owned subsidiary, First Federal Savings Bank ofIowa, 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.
Statements included in this press release and in future filings by North
Central Bancshares, Inc. with the Securities and Exchange Commission, in North
Central Bancshares, Inc. press releases, and in oral statements made with the
approval of an authorized executive officer, which are not historical or
current facts, are "forward-looking statements" made pursuant to the safe
harbor provisions of the Private Securities Litigation Reform Act of 1995, and
are subject to certain risks and uncertainties that could cause actual results
to differ materially from historical earnings and those presently anticipated
or projected. North Central Bancshares, Inc. wishes to caution readers not to
place undue reliance on such forward-looking statements, which speak only as
of the date made. The following important factors, among others, in some
cases have affected and in the future could affect North Central Bancshares,
Inc.'s actual results, and could cause North Central Bancshares, Inc.'s actual
financial performance to differ materially from that expressed in any
forward-looking statement: (1) competitive pressures among depository and
other financial institutions may increase significantly; (2) revenues may be
lower than expected; (3) changes in the interest rate environment may reduce
interest margins; (4) general economic conditions, either nationally or
regionally, may be less favorable than expected, resulting in, among other
things, a deterioration in credit quality and/or a reduced demand for credit;
(5) legislative or regulatory changes, including changes in accounting
standards, may adversely affect the business in which the Company is engaged;
(6) competitors may have greater financial resources and developed products
that enable such competitors to compete more successfully than the Company;
and (7) adverse changes may occur in the securities markets or with respect to
inflation. The foregoing list should not be construed as exhaustive, and
North Central Bancshares, Inc. disclaims any obligation to subsequently revise
any forward-looking statements to reflect events or circumstances after the
date of such statements, or to reflect the occurrence of anticipated or
unanticipated events.
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, 2008 December 31, 2007
Assets
Cash and cash
equivalents $14,849 $12,527
Securities available-
for-sale 19,032 16,599
Loans (net of allowance
of loan loss of $3,512
and $3,487, respectively) 440,107 446,857
Goodwill 4,947 4,947
Other assets 29,582 29,263
Total assets $508,517 $510,193
Liabilities
Deposits $368,041 $365,948
Borrowed funds 93,872 97,379
Other liabilities 5,408 5,889
Total liabilities 467,321 469,216
Stockholders' equity 41,196 40,977
Total liabilities and
Stockholders' equity $508,517 $510,193
Stockholders' equity
to total assets 8.10% 8.03%
Book value per share $30.74 $30.56
Total shares outstanding 1,339,948 1,340,948
Condensed Consolidated Statements of Income
(Unaudited)
(Dollars in Thousands, except per share data)
For the Three Months
Ended March 31,
2008 2007
Interest income $7,488 $7,553
Interest expense 4,293 4,278
Net interest income 3,195 3,275
Provision for loan loss 60 30
Net interest income after provision
for loan loss 3,135 3,245
Noninterest income 1,704 1,641
Noninterest expense 3,744 3,431
Income before income taxes 1,095 1,455
Income taxes 291 421
Net income $804 $1,034
Basic earnings per share $0.60 $0.75
Diluted earnings per share $0.60 $0.75
Selected Financial Ratios For the Three Months
Ended March 31,
2008 2007
Performance ratios
Net interest spread 2.46% 2.44%
Net interest margin 2.68% 2.69%
Return on average assets 0.63% 0.81%
Return on average equity 7.79% 9.88%
Efficiency ratio (noninterest expense divided by
the sum of net interest income before provision
for loan losses plus noninterest income) 76.42% 69.79%
SOURCE North Central Bancshares, Inc.
Copyright © 2008, PRNewswire
Copyright © 2008, NewsBlaze,
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