-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, EkE0YtDuptd/Xt4vpvkGNUszWKmmAHOg+ulKkQ83rBbAAvaZplNkSkDPaxN97LTi LU1Hf5JBPdpD+t81eQf6kg== 0000927797-06-000189.txt : 20060728 0000927797-06-000189.hdr.sgml : 20060728 20060728145819 ACCESSION NUMBER: 0000927797-06-000189 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20060728 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20060728 DATE AS OF CHANGE: 20060728 FILER: COMPANY DATA: COMPANY CONFORMED NAME: NORTH CENTRAL BANCSHARES INC CENTRAL INDEX KEY: 0001005188 STANDARD INDUSTRIAL CLASSIFICATION: SAVINGS INSTITUTION, FEDERALLY CHARTERED [6035] IRS NUMBER: 421449849 STATE OF INCORPORATION: IA FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 000-27672 FILM NUMBER: 06987725 BUSINESS ADDRESS: STREET 1: 825 CENTRAL AVE STREET 2: C/O FIRST FED SAVINGS BANK OF FT DODGE CITY: FORT DODGE STATE: IA ZIP: 50501 BUSINESS PHONE: 5155767531 MAIL ADDRESS: STREET 1: 825 CENTRAL AVENUE CITY: FORT DODGE STATE: IA ZIP: 50501 8-K 1 ncb-8k_072806.txt FORM 8-K 07/28/06 UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 ------------------------------ FORM 8-K CURRENT REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 ------------------------------ Date of report (Date of earliest event reported): July 28, 2006 NORTH CENTRAL BANCSHARES, INC. (Exact name of registrant as specified in its charter) Iowa 0-27672 42-1449849 (State or other jurisdiction of (Commission File (IRS Employer incorporation) Number) Identification No.) 825 Central Avenue, Fort Dodge, Iowa 50501 (Address of principal executive offices) (Zip Code) Registrant's telephone number, including area code: (515) 576-7531 Not Applicable (Former name or former address, if changed since last report) Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below): [ ] Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) [ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) [ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) [ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) Item 2.02 Results of Operations and Financial Condition On July 28, 2006, North Central Bancshares, Inc. (the "Company") announced its earnings for the second quarter of 2006. A copy of the press release dated July 28, 2006, is attached as Exhibit 99.1. Item 9.01 Financial Statements and Exhibits The following exhibit is furnished with this Report: Exhibit No. Description ----------- ----------- 99.1 Press release issued by the Company on July 28, 2006. SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. NORTH CENTRAL BANCSHARES, INC. By: /s/ David M. Bradley ----------------------------------------------- Name: David M. Bradley Title: Chairman, President and Chief Executive Officer Date: July 28, 2006 EXHIBIT INDEX Exhibit No. Description ----------- ----------- 99.1 Press Release dated July 28, 2006. EX-99 2 ncb-8kexh991_072806.txt EXHIBIT 99.1 PRESS RELEASE DATED 07/28/06 Exhibit 99.1 Press Release PRESS RELEASE July 28, 2006 For further information contact: David M. Bradley Chairman, President and Chief Executive Officer North Central Bancshares, Inc. 825 Central Avenue Fort Dodge, Iowa 50501 515-576-7531 NORTH CENTRAL BANCSHARES, INC. ANNOUNCES RESULTS FOR SECOND QUARTER 2006 AND THE OPENING OF ITS NEW WEST DES MOINES OFFICE Fort Dodge, Iowa -- North Central Bancshares, Inc. (the "Company") (NASDAQ: FFFD), the holding company for First Federal Savings Bank of Iowa (the "Bank"), announced today that the Company earned diluted earnings per share of $0.87 for the quarter ended June 30, 2006, compared to diluted earnings per share of $0.65 for the quarter ended June 30, 2005. The Company's net income was $1.26 million for the quarter ended June 30, 2006, compared to $1.03 million for the quarter ended June 30, 2005. The increase in earnings for the quarter was primarily due to an increase in noninterest income. The Company earned diluted earnings per share of $1.69 for the six months ended June 30, 2006, compared to diluted earnings per share of $1.34 for the six months ended June 30, 2005. The Company's net income was $2.50 million for the six months ended June 30, 2006, compared to $2.11 million for the six months ended June 30, 2005. The increase in earnings for the six months was primarily due to an increase in noninterest income. Net interest income for the quarter ended June 30, 2006 was $3.29 million, compared to net interest income of $3.51 million for the quarter ended June 30, 2005. The decrease in net interest income was due to a decrease in the net interest margin, offset in part by an increase in interest-earning assets. The net interest spread of 2.62% for the quarter ended June 30, 2006 represented a decrease from the net interest spread of 2.93% for the quarter ended June 30, 2005. The net interest margin of 2.85% for the quarter ended June 30, 2006 represented a decrease from the net interest margin of 3.14% for the quarter ended June 30, 2005. Net interest income for the six months ended June 30, 2006 was $6.61 million, compared to net interest income of $6.92 million for the six months ended June 30, 2005. The decrease in net interest income was due to a decrease in the net interest margin, offset in part by an increase in interest-earning assets. The net interest spread of 2.62% for the six months ended June 30, 2006 represented a decrease from the net interest spread of 2.92% for the six months ended June 30, 2005. The net interest margin of 2.86% for the six months ended June 30, 2006 represented a decrease from the net interest margin of 3.14% for the six months ended June 30, 2005. The Company's provision for loan losses was $60,000 and $70,000 for the quarters ended June 30, 2006 and 2005, respectively. The Company's provision for loan losses was $120,000 for each of the six months ended June 30, 2006 and 2005. 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 -MORE- 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 $1.77 million and $1.29 million for the quarters ended June 30, 2006 and 2005, respectively. The increase in noninterest income was due to an increase in fees associated with checking accounts, including overdraft fees. The increase in noninterest income was also due to an impairment of securities available-for-sale recognized during the quarter ended June 30, 2005. During the quarter ended June 30, 2005, the Company recorded an other-than-temporary impairment, non-cash, after-tax charge of $424,500, or $0.27 per diluted share, related to two Freddie Mac adjustable rate, perpetual preferred stocks with a face value of $2,499,000. These perpetual preferred stock issues are investment grade securities that are held in the Company's available-for-sale securities portfolio. Absent this other-than-temporary charge, earnings were $1.46 million, or $0.92 per diluted share, for the quarter ended June 30, 2005. The Company's noninterest income was $3.70 million and $2.48 million for the six months ended June 30, 2006 and 2005, respectively. The increase in noninterest income was due to an increase in fees associated with checking accounts, including overdraft fees, loan prepayment fees, and abstract fees. The increase in noninterest income was also due to an impairment of securities available-for-sale recognized during the six months ended June 30, 2005. During the six months ended June 30, 2005, the Company recorded an other-than-temporary impairment, non-cash, after-tax charge of $653,500, or $0.41 per diluted share, related to three Freddie Mac adjustable rate, perpetual preferred stocks that declined in value due to decreased interest rates. These perpetual preferred stocks are investment grade securities that are held in the Company's available-for-sale securities portfolio. Absent the other-than-temporary charges, earnings were $2.76 million, or $1.75 per diluted share, for the six months ended June 30, 2005. The Company's noninterest expense was $3.22 million and $3.03 million for the quarters ended June 30, 2006 and 2005, respectively. The increase in noninterest expense was primarily due to increases in compensation and data processing expenses. The Company's noninterest expense was $6.59 million and $5.95 million for the six months ended June 30, 2006 and 2005, respectively. The increase in noninterest expense was primarily due to increases in compensation, data processing, and other operating expenses. The Company's provision for income taxes was $525,000 and $671,000 for the quarters ended June 30, 2006 and 2005, respectively. The decrease in the provision for income taxes was primarily due to the lack of deductibility of the other-than-temporary impairment of securities available-for-sale in 2005. The Company's provision for income taxes was $1.10 million and $1.22 million for the six months ended June 30, 2006 and 2005, respectively. The decrease in the provision for income taxes was primarily due to the limited deductibility of the other-than-temporary impairment of securities available-for-sale in 2005. Total assets at June 30, 2006 were $496.2 million, compared to $485.2 million at December 31, 2005. The increase in assets consisted primarily of increases in loans, premises and equipment, and securities available-for-sale. Net loans increased by $8.7 million, or 2.0%, to $439.0 million at June 30, 2006, from $430.3 million at December 31, 2005. At June 30, 2006, net loans consisted of $212.7 million of one-to-four family real estate loans, $89.6 million of commercial real estate loans, $74.8 million of multi-family real estate loans, and $61.9 million of consumer loans. The increase in net loans was due primarily to the origination of one-to-four family real estate loans, the purchase of one-to-four family, multi-family, and commercial real estate loans, and the origination of second mortgage loans. These originations and purchases were offset in part by payments, prepayments, and sales of loans. Premises and equipment, net, increased by $1.2 million, or 11.1%, to $12.2 million at June 30, 2006, from $11.0 million at December 31, 2005. The increase in premises and equipment was primarily due to the construction costs associated with the construction of a new branch office located at the Jordan Creek Town Center in West Des Moines, Iowa and the expansion of the Crossroads branch in Fort Dodge, Iowa. Securities available-for-sale increased $800,000, or 3.9%, to $21.5 million at June 30, 2006, from $20.7 million at December 31, 2005. The increase in securities available-for-sale consisted primarily of an increase in investments in municipal securities and FHLB stock, offset in part by a decrease in mortgage-backed securities. Deposits increased $1.6 million, or 0.5%, to $335.9 million at June 30, 2006, from $334.3 million at December 31, 2005. The increase in the deposits was used primarily to fund loan growth. Nonperforming assets were 0.43% of total assets as of June 30, 2006, compared to 0.36% of total assets as of December 31, 2005. The allowance for loan losses was $3.4 million, or 0.76% of total loans, at June 30, 2006, compared to $3.3 million, or 0.76% of total loans, at December 31, 2005. Stockholders' equity was $42.4 million at June 30, 2006, compared to $44.3 million at December 31, 2005. Stockholders' equity decreased by $1.9 million primarily due to stock repurchases, declared dividends, and an increase in unrealized loss on securities available-for-sale, offset in part by earnings and the exercise of stock options. Book value, or stockholders' equity per share, at June 30, 2006 was $29.79, compared to $29.37 at December 31, 2005. The ratio of stockholders' equity to total assets was 8.6% at June 30, 2006, compared to 9.1% at December 31, 2005. All stockholders of record on June 16, 2006, received a quarterly cash dividend of $0.33 per share on July 6, 2006. As of June 30, 2006, the Company had 1,423,653 shares of common stock outstanding. The Company also announced the opening of its Jordan Creek Town Center office at 120 S. 68th Street, West Des Moines, Iowa, in early August, 2006. With the opening of the West Des Moines office, First Federal Savings Bank of Iowa has eleven full service locations, including three in the Des Moines metro area, to serve its customers. The Jordan Creek Town Center office will provide a full array of checking, savings, and loan products and services, including residential, multi-family, and commercial real estate loans. The office will be managed by William Boord, Vice President. North Central Bancshares, Inc. serves north central and southeastern Iowa at eleven full service locations in Fort Dodge, Nevada, Ames, Perry, Ankeny, Clive, West Des Moines, 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 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. For more information contact: David M. Bradley, President and Chief Executive Officer, 515-576-7531 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) June 30, 2006 December 31, 2005 ------------- ----------------- Assets Cash and cash equivalents $ 8,515 $ 8,640 Securities available-for-sale 21,508 20,708 Loans (net of allowance of loan loss of $3,387 and $3,326, respectively) 439,027 430,278 Goodwill 4,947 4,971 Other assets 22,244 20,594 ---------- ---------- Total Assets $ 496,241 $ 485,191 ========== ========== Liabilities Deposits $ 335,913 $ 334,338 Other borrowed funds 113,425 102,444 Other liabilities 4,490 4,131 ---------- ---------- Total Liabilities 453,828 440,913 Stockholders' Equity 42,413 44,278 ---------- ---------- Total Liabilities and Stockholders' Equity $ 496,241 $ 485,191 ========== ========== Stockholders' equity to total assets 8.55% 9.13% ========== ========== Book value per share $ 29.79 $ 29.37 ========== ========== Total shares outstanding 1,423,653 1,507,703 ========== ==========
Condensed Consolidated Statements of Income (Unaudited) (Dollars in Thousands, except per share data)
For the Three Months For the Six Months Ended June 30, Ended June 30, 2006 2005 2006 2005 ----------- ----------- ----------- ----------- Interest income $ 6,951 $ 6,588 $ 13,726 $ 12,896 Interest expense 3,663 3,082 7,114 5,979 ----------- ----------- ----------- ----------- Net interest income 3,288 3,506 6,612 6,917 Provision for loan loss 60 70 120 120 ----------- ----------- ----------- ----------- Net interest income after provision for loan loss 3,228 3,436 6,492 6,797 Noninterest income 1,772 1,295 3,698 2,483 Noninterest expense 3,218 3,027 6,595 5,948 ----------- ----------- ----------- ----------- Income before income taxes 1,782 1,704 3,595 3,332 Income taxes 525 671 1,097 1,224 ----------- ----------- ----------- ----------- Net income $ 1,257 $ 1,033 $ 2,498 $ 2,108 =========== =========== =========== =========== Basic earnings per share $ 0.88 $ 0.67 $ 1.72 $ 1.38 =========== =========== =========== =========== Diluted earnings per share $ 0.87 $ 0.65 $ 1.69 $ 1.34 =========== =========== =========== ===========
For the Three Months For the Six Months Selected Financial Ratios Ended June 30, Ended June 30, 2006 2005 2006 2005 ----------- ----------- ----------- ---------- Performance ratios Net interest spread 2.62% 2.93% 2.62% 2.92% Net interest margin 2.85% 3.14% 2.86% 3.14% Return on average assets 1.02% 0.87% 1.02% 0.90% Return on average equity 11.87% 9.58% 11.61% 9.89% Efficiency ratio (noninterest expense divided by the sum of net interest income before provision for loan losses plus noninterest income) 63.60% 63.05% 63.97% 63.27%
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