-----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, IBxn80JMQIN6i3GgwsB7WWnCYYSX9d8X3Xs4yWz0wTql8hcw8GW6zvf7RuzLFpFN f94dPCbV7zsKKFB9SfsU2w== 0000950131-97-004995.txt : 19970814 0000950131-97-004995.hdr.sgml : 19970814 ACCESSION NUMBER: 0000950131-97-004995 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 6 CONFORMED PERIOD OF REPORT: 19970630 FILED AS OF DATE: 19970813 SROS: NASD 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: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 000-27672 FILM NUMBER: 97657956 BUSINESS ADDRESS: STREET 1: 825 CENTRAL AVE STREET 2: C/O FIRST FED SAVINGS BANK OF FT DODGE CITY: FORT DODGE STATE: I0 ZIP: 50501 BUSINESS PHONE: 5155767531 MAIL ADDRESS: STREET 1: 825 CENTRAL AVENUE CITY: FORT DODGE STATE: IA ZIP: 50501 10-Q 1 FORM 10-Q SECURITIES AND EXCHANGE COMMISSION Washington, D. C. 20549 ------------------------------ FORM 10-Q [Mark One] [ X ] QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 1997 [ ] TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE EXCHANGE ACT For the transition period from ___________________ to __________________ Commission File Number 0-27672 NORTH CENTRAL BANCSHARES, INC. (Exact name of registrant as specified in its charter) Iowa 42-1449849 -------------------------------------------------------- (State or other jurisdiction of (I. R. S. Employer incorporation or organization) Identification Number) 825 Central Avenue Fort Dodge, Iowa 50501 -------------------------------------------------- (Address of principal executive offices) Registrant's telephone number, including area code #(515)576-7531 None - -------------------------------------------------------------------------------- Former name, former address and former fiscal year, if changed since last report Indicate by check mark whether the Registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Exchange Act of 1934 during the past 12 months (or for such shorter period that the Registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes X No --- --- Indicate the number of shares outstanding of each of the issuer's classes of common stock, as of the latest practicable date. Class Outstanding at August 10, 1997 - ------------------------------------------------------------------------------ (Common Stock, $.01 par value) 3,257,983 NORTH CENTRAL BANCSHARES, INC. INDEX
Page Part I. Financial Information Item 1. Consolidated Condensed Financial Statements (unaudited) 1 to 5 Consolidated Condensed Statements of Financial Condition at June 30, 1997 and December 31, 1996 1 Consolidated Condensed Statements of Income for the six months ended June 30, 1997 and 1996 2 Consolidated Condensed Statements of Cash Flows for the six months ended June 30, 1997 and 1996 3 Notes to Consolidated Condensed Financial Statements 4 & 5 Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 6 to 12 Item 3. Quantitative and Qualitative Disclosures About Market Risk 12 Part II. Other Information 13 to 15 Items 1 through 6 13 & 14 Signatures 15 Exhibits
NORTH CENTRAL BANCSHARES, INC. AND SUBSIDIARIES CONSOLIDATED CONDENSED STATEMENTS OF FINANCIAL CONDITION (Unaudited)
June 30, December 31, ASSETS 1997 1996 ------------- ------------- Cash: Interest-bearing $ 7,244,336 $ 2,973,490 Noninterest-bearing 637,863 963,325 Securities available for sale 25,315,061 23,103,614 Securities held to maturity - - 3,499,528 Loans receivable, net 172,430,540 165,831,040 Accrued interest receivable 1,341,533 1,327,733 Foreclosed real estate 116,931 128,471 Premises and equipment, net 2,004,069 1,780,392 Rental real estate 2,075,680 1,775,844 Title plant 925,256 968,747 Deferred taxes 180,000 198,000 Prepaid expenses and other assets 597,323 542,351 ------------ ------------ Total assets $212,868,592 $203,092,535 ============ ============ LIABILITIES AND STOCKHOLDERS' EQUITY LIABILITIES Deposits $136,257,906 $129,722,044 Other borrowed funds 26,550,000 22,335,000 Advances from borrowers for taxes and insurance 858,169 845,488 Dividend payable 203,624 230,344 Income taxes payable 109,431 182,826 Accrued expenses and other liabilities 632,683 542,026 ------------ ------------ Total liabilities 164,611,813 153,857,728 ------------ ------------ COMMITMENTS STOCKHOLDERS' EQUITY Preferred stock ($.01 par value, authorized 3,000,000 shares; issued and outstanding none) -- -- Common Stock ($.01 par value, authorized 15,500,000 shares; issued and outstanding 4,011,057) 40,111 40,111 Additional paid-in capital 37,857,398 37,796,611 Retained earnings, substantially restricted 21,981,693 20,531,604 Unrealized gain on securities available for sale, net of income taxes 186,817 73,097 Treasury stock at cost (1997 753,074 shares; 1996 581,602 shares) (10,496,411) (7,789,661) Unearned shares, employee stock ownership plan (1,312,829) (1,416,955) ------------ ------------ Total stockholders' equity 48,256,779 49,234,807 ------------ ------------ Total liabilities and stockholders' equity $212,868,592 $203,092,535 ============ ============
See Notes to Consolidated Condensed Financial Statements. -1- NORTH CENTRAL BANCSHARES, INC. AND SUBSIDIARIES CONSOLIDATED CONDENSED STATEMENTS OF INCOME (Unaudited)
Three Months Ended Six Months Ended June 30, June 30, 1997 1996 1997 1996 ---------- ---------- ---------- ---------- Interest Income: Loans receivable: First mortgage loans $3,014,004 $2,740,860 $5,994,607 $5,418,587 Consumer loans 537,488 491,238 1,060,955 951,463 Securities and cash deposits 380,070 502,132 780,948 941,720 ---------- ---------- ---------- ---------- 3,931,562 3,734,230 7,836,510 7,311,770 ---------- ---------- ---------- ---------- Interest expense: Deposits 1,580,062 1,543,675 3,130,329 3,099,358 Other borrowed funds 315,762 63,550 619,786 344,432 ---------- ---------- ---------- ---------- 1,895,824 1,607,225 3,750,115 3,443,790 ---------- ---------- ---------- ---------- Net Interest Income 2,035,738 2,127,005 4,086,395 3,867,980 Provision for loan losses 60,000 60,000 120,000 120,000 ---------- ---------- ---------- ---------- Net interest income after provision for loan 1,975,738 2,067,005 3,966,395 3,747,980 losses ---------- ---------- ---------- ---------- Noninterest income: Fees and service charges 154,636 124,466 309,000 249,103 Abstract fees 307,967 256,613 562,777 452,253 Gain on sale of securities available for sale -- -- -- 13,774 Other income 135,995 100,950 211,206 189,141 ---------- ---------- ---------- ---------- Total noninterest income 598,598 482,029 1,082,983 904,271 ---------- ---------- ---------- ---------- Noninterest expense: Salaries and employee benefits 531,720 446,611 1,055,903 1,029,153 Premises and equipment 102,675 112,758 206,489 223,818 Data processing 61,783 58,937 126,202 119,072 SAIF deposit insurance premiums 21,162 72,990 42,231 146,099 Other expenses 401,718 273,549 797,863 522,408 ---------- ---------- ---------- ---------- Total noninterest expense 1,119,058 964,845 2,228,688 2,040,550 ---------- ---------- ---------- ---------- Income before income taxes 1,455,278 1,584,189 2,820,690 2,611,701 Provision for income taxes 495,954 577,749 972,216 949,383 ---------- ---------- ---------- ---------- Net Income $ 959,324 $1,006,440 $1,848,474 $1,662,318 ========== ========== ========== ========== Earnings per share $ 0.30 $ 0.26 $ 0.57 $ 0.43 ========== ========== ========== ========== Dividends declared per common share $ 0.0625 $ 0.0625 $ 0.1250 $ 0.1547 ========== ========== ========== ==========
See Notes to Consolidated Condensed Financial Statements. -2- NORTH CENTRAL BANCSHARES, INC. AND SUBSIDIARIES CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS (Unaudited)
Six Months Ended June 30, 1997 1996 ------------ ------------ CASH FLOWS FROM OPERATING ACTIVITIES Net income $ 1,848,474 $ 1,662,318 Adjustments to reconcile net income to net cash provided by operating activities: Provision for loan losses 120,000 120,000 Depreciation, premises and equipment 92,063 102,642 Depreciation, rental real estate 32,500 -- Amortization and accretion 67,550 (79,392) Deferred taxes (49,054) (41,956) Effect of contribution to employee stock ownership plan 164,913 47,268 (Gain) on sale of foreclosed real estate and loans, net (21,107) (9,103) (Gain) on sale of securities available for sale -- (13,774) Loss on disposal of equipment 4,674 1,752 Change in assets and liabilities: (Increase) in accrued interest receivable (13,800) (40,052) Decrease in income taxes receivable -- 31,766 (Increase) decrease in prepaid expenses and other assets (54,972) 210,715 Increase (decrease) in income taxes payable (73,395) 121,700 Increase (decrease) in accrued expenses and other liabilities 90,657 (39,912) ----------- ------------ Net cash provided by operating activities 2,208,503 2,073,972 ----------- ------------ CASH FLOWS FROM INVESTING ACTIVITIES Net (increase) decrease in loans (801,969) (4,020,120) Purchase of loans (6,077,253) (4,093,289) Proceeds from sale of loans 161,381 -- Proceeds from sales and maturities of securities available for sale 500,000 53,891 Purchase of securities available for sale (2,598,973) (9,320,762) Proceeds from maturities of securities held to maturity 3,500,000 5,500,000 Purchase of premises and equipment (351,714) (160,025) Proceeds from sale of premises and equipment 31,300 -- Purchase of rental real estate (332,336) (74,081) Proceeds from sale of title plant 43,491 -- Other 31,188 83,657 ----------- ------------ Net cash (used in) investing activities (5,894,885) (11,956,648) ----------- ------------ CASH FLOWS FROM FINANCING ACTIVITIES Net increase in deposits 6,535,862 2,348,535 Increase (decrease) in advances from borrowers for taxes and insurance 12,681 32,989 Net change in short term borrowings (6,000,000) (14,000,000) Proceeds from other borrowed funds 13,250,000 -- Payments of other borrowings (3,035,000) (20,000) Proceeds from issuance of 2,625,467 shares of common stock -- 25,412,159 Payments for expenses incurred relating to conversion to stock form -- (871,592) Purchase of treasury stock (2,706,750) -- Dividends paid (425,027) (238,882) ----------- ------------ Net cash provided by financing activities 7,631,766 12,663,209 ----------- ------------ Net increase in cash 3,945,384 2,706,452 CASH Beginning 3,936,815 3,071,642 ----------- ------------ Ending $ 7,882,199 $ 5,778,094 =========== ============ SUPPLEMENTAL SCHEDULE OF CASH FLOW INFORMATION Cash payments for: Interest paid to depositors $ 3,103,105 $ 3,088,047 Interest paid on borrowings 332,751 374,584 Income taxes 1,097,131 837,873
See Notes to Consolidated Condensed Financial Statements. -3- ITEM 1. NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS (UNAUDITED) NORTH CENTRAL BANCSHARES, INC. AND SUBSIDIARIES 1. SIGNIFICANT ACCOUNTING POLICIES The consolidated condensed financial statements for the three and six month period ended June 30, 1997 and 1996 are unaudited. In the opinion of the management of North Central Bancshares, Inc. (the "Company" or the "Registrant") these financial statements reflect all adjustments, consisting only of normal recurring accruals, necessary to present fairly these consolidated financial statements. The results of operations for the interim periods are not necessarily indicative of results which may be expected for an entire year. Certain information and footnote disclosure normally included in complete financial statements prepared in accordance with generally accepted accounting principles have been omitted in accordance with the requirements for interim financial statements. The financial statements and notes thereto should be read in conjunction with the Company's 1996 Annual Report on Form 10-K. The consolidated condensed financial statements include the accounts of the Company and its wholly-owned subsidiaries (See Note 2). All significant intercompany balances and transactions have been eliminated in consolidation. 2. REORGANIZATION The Company was organized on December 5, 1995 at the direction of the Board of Directors of First Federal Savings Bank of Fort Dodge (the "Bank") for the purpose of acquiring all of the capital stock of the Bank, in connection with the conversion of the Bank, and North Central Bancshares, M.H.C. (the "Mutual Holding Company" or "MHC") from the mutual to the stock holding company structure (these transactions are collectively referred to as the "Reorganization"). On March 20, 1996, upon completion of the Reorganization, the Company issued an aggregate of 4,011,057 shares of its common stock, 1,385,590 shares of which were issued in exchange for all of the Bank's issued and outstanding shares, except for shares owned by the MHC which were cancelled, and 2,625,467 shares of which were sold in Subscription and Community Offerings (the "Offering") at a price of $10.00 per share, with gross proceeds amounting to $26,254,670. In addition, the Company replaced the Bank as the issuer listed on The Nasdaq Stock Market. At this time, the Company conducts business as a unitary savings and loan holding company and the principal business of the Company consists of the operation of its wholly owned subsidiary, the Bank. 3. EARNINGS PER SHARE The earnings per share amounts were computed using the weighted average number of shares outstanding during the periods presented. In accordance with Statement of Position No. 93-6, Employers' Accounting for Employee Stock Ownership Plans, issued by the American Institute of Certified Public Accountants, shares owned by the Bank's Employee Stock Ownership Plan that have not been committed to be released are not considered to be outstanding for the purpose of computing earnings per share. For the three and six month periods ended June 30, 1997, the weighted average number of shares outstanding were 3,201,476 and 3,241,620, respectively. For the three and six month periods ended June 30, 1996, the weighted average number of shares outstanding were 3,846,798 and 3,882,177, respectively. The number of shares outstanding for the six month period ended June 30, 1996 was restated to reflect the conversion ratio effected as part of the Reorganization. 4. DIVIDENDS On May 23, 1997, the Company declared a cash dividend on its common stock, payable on July 3, 1997 to stockholders of record as of June 13, 1997, equal to $0.0625 per share. -4- NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS (UNAUDITED) (Continued) 5. RECENT ACCOUNTING PRONOUNCEMENTS In June 1996, the Financial Accounting Standards Board ("FASB") issued Statement of Financial Accounting Standards No. 125, "Accounting for Transfers and Servicing of Financial Assets and Extinguishments of Liabilities" ("SFAS No. 125"). SFAS No. 125 is effective for transfers and servicing of financial assets and extinguishments of liabilities occurring after December 31, 1996, and is to be applied prospectively. The Company adopted SFAS No. 125 on January 1, 1997 and its adoption has not had a material effect on the Company's financial condition or results of operations. In February 1997, FASB issued Statement of Financial Accounting Standards No. 128, "Earnings per Share" ("SFAS No. 128"). SFAS No. 128 specifies the computation, presentation, and disclosure requirements for earnings per share ("EPS") for entities with publicly held common stock or potential common stock. This statement simplifies the standards for computing EPS previously found in Accounting principles Board Opinion No. 15 ("APB No. 15"). It replaces the presentation of primary EPS with a presentation of Basic EPS, and requires dual presentation of basic and diluted EPS. Basic EPS is computed by dividing net income by the weighted average number of common shares outstanding for the period. Diluted EPS reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock or resulted in the issuance of common stock that then shared in the earnings of the entity. SFAS No. 128 is effective for financial statements issued for periods ending after December 15, 1997 and requires restatement of all prior-period EPS data presented. Upon adoption of SFAS No. 128, the change will not result in a material change in the Company's EPS presentation from primary to basic EPS and from fully diluted to diluted EPS. In February 1997, the FASB issued Statement of Financial Accounting Standards No. 129 ("SFAS No. 129") "Disclosure of Information about Capital Structure." SFAS No. 129 requires nonpublic entities to include disclosure requirements regarding capital structure as specified in APB Opinion No. 15, "Earnings Per Share." These disclosure requirements are effective for financial statements for periods ending after December 15, 1997. The adoption of SFAS No. 129 will have no effect on the financial condition or results of operations. In June 1997, the FASB issued Statement of Financial Accounting Standards No. 130, "Reporting Comprehensive Income" ("SFAS No. 130"). SFAS No. 130 requires that all items that are components of comprehensive income (defined as "the change in equity [net assets] of a business enterprise during a period from transactions and other events and circumstances from nonowner sources. It includes all changes in equity during a period except those resulting from investments by owners and distributions to owners"), be reported in a financial statement that is displayed with the same prominence as other financial statements. Companies will be required to (a) classify items of other comprehensive income by their nature in a financial statement and (b) display the accumulated balance of other comprehensive income separately from retained earnings and additional paid-in capital in the equity section of a statement of financial position. SFAS No. 130 is effective for fiscal years beginning after December 15, 1997, and requires reclassification of prior periods presented. As the requirements of SFAS No. 130 are disclosure-related, its implementation will have no impact on the Company's financial condition or results of operations. In June 1997, the FASB issued Statement of Financial Accounting Standards No. 131, "Disclosure about Segments of an Enterprise and Related Information" ("SFAS No. 131"). SFAS No. 131 requires that enterprises report certain financial and descriptive information about operating segments in complete sets of financial statements of the Company and in condensed financial statements of interim periods issued to shareholders. It also requires that a Company report certain information about their products and services, geographic areas in which they operate, and their major customers. SFAS No. 131 is effective for fiscal years beginning after December 15, 1997. As the requirements of SFAS No. 131 are disclosure-related, its implementation will have no impact on the Company's financial condition or results of operations. -5- ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS EXPLANATORY NOTE This Quarterly Report on Form 10-Q contains forward-looking statements consisting of estimates with respect to the financial condition, results of operations and business of the Company that are subject to various factors which could cause actual results to differ materially from these estimates. These factors include, changes in general, economic and market, and legislative and regulatory conditions, and the development of an adverse interest rate environment that adversely affects the interest rate spread or other income anticipated from the Company's operations and investments. FINANCIAL CONDITION Total assets increased $9.8 million, or 4.8%, to $212.9 million at June 30, 1997 compared to $203.1 million at December 31, 1996. Interest-bearing cash increased $4.3 million, or 143.6%, primarily due to the proceeds from a Federal Home Loan Bank of Des Moines ("FHLB") advance in interest-bearing cash awaiting investment. Securities available for sale increased $2.2 million, or 9.6%, primarily due to the purchase of several U.S. Treasury Notes and certain equity securities. Securities held to maturity decreased $3.5 million, or 100.0%, due to the maturities of several U.S. Treasury Notes and the Company's decision not to replace such securities. Total loans receivable, net, increased by $6.6 million, or 4.0%, from December 31, 1996, due primarily to originations of $10.8 million of first mortgage loans secured primarily by one-to-four family residences, purchases of $6.1 million of first mortgage loans secured by one-to- four family and multi-family residences and originations of $5.1 million of second mortgage loans, which originations and purchases were offset in part by payments and prepayments of loans (of approximately $16.9 million). Deposits increased $6.5 million, or 5.0%, from $129.7 million at December 31, 1996 to $136.3 million at June 30, 1997, primarily due to increases in certificates of deposit, NOW and money market accounts, primarily due to increased advertising by the Company to promote such products, the expansion of a branch of the Bank in Ames, Iowa and normal market fluctuations. Other borrowings, primarily FHLB advances, increased by $4.2 million, to $26.6 million at June 30, 1997 from $22.3 million at December 31, 1996, primarily due to the borrowing of $4.0 million at the end of the quarter in anticipation of the funding of first mortgage loans in the third quarter of 1997 and to take advantage of available favorable terms on such borrowings. Total stockholders' equity decreased $978,000, from $49.2 million at December 31, 1996 to $48.3 million at June 30, 1997, primarily due to stock repurchases and dividends declared, which were offset in part by earnings. CAPITAL The Company's total stockholders' equity decreased by $978,000 to $48.3 million at June 30, 1997 from $49.2 million at December 31, 1996, primarily due to stock repurchases and dividends declared, which were offset in part by earnings. The changes in stockholders' equity were also due to the unrealized gain on securities available for sale increased by $114,000 to $187,000 at June 30, 1997 from $73,000 at December 31, 1996. The unearned shares from the Employee Stock Ownership Plan (the "ESOP") decreased by $104,000 to $1.3 million at June 30, 1997 from $1.4 million at December 31, 1996, due to the release of shares by the ESOP to employees of the Bank. The Office of Thrift Supervision (the "OTS") requires that the Bank meet minimum tangible, leverage (core) and risk-based capital requirements. As of June 30, 1997, the Bank exceeded all of its regulatory capital requirements. The Bank's required, actual and excess capital levels as of June 30, 1997 are as follows: -6-
Amount Percentage of Assets -------- --------------------- (dollars in thousands) Tangible capital: Capital level $36,029 17.15% Less Requirement 3,152 1.50% ------- ----- Excess $32,877 15.65% ======= ===== Core capital: Capital level $36,029 17.15% Less Requirement 6,303 3.00% ------- ----- Excess $29,726 14.15% ======= ===== Risk-based capital: Capital level $37,487 32.31% Less Requirement 9,283 8.00% ------- ----- Excess $28,204 24.31% ======= =====
LIQUIDITY The Company's primary sources of funds are cash provided by operating activities (including principal and interest payment on loans), certain financing activities (including increases in deposits and proceeds from borrowings) and certain investing activities (including maturities of securities and other investments). During the first six months of 1997 and 1996, principal payments and repayments on loans totalled $16.9 million and $13.2 million, respectively. The net increases in deposits during the first six months of 1997 and 1996 totalled $6.5 million and $2.3 million, respectively. The proceeds from borrowed funds during the first six months of 1997 totalled $13.3 million. During the first six months of 1997 and 1996, the proceeds from the maturities and sales of securities totalled $4.0 million and $5.6 million, respectively. Cash provided from operating activities during the first six months of 1997 and 1996 totalled $2.2 million and $2.1 million, respectively, of which $1.8 and $1.7 million, respectively, represented net income of the Company. In the first six months of 1996, the Company also received net proceeds from the Reorganization of $24.5 million. The Company's primary use of funds is cash used to originate and purchase loans, repayment of borrowed funds and other financing activities. During the first six months of 1997 and 1996, the Company's gross purchases and origination of loans totalled $24.7 million and $22.2 million, respectively. The repayment of borrowed funds during the first six months of 1997 and 1996 totalled $9.0 million and $14.0 million, respectively. For additional information about cash flows from the Company's operating, financing and investing activities, see Statements of Cash Flows in the Condensed Consolidated Financial Statements. OTS regulations require that thrift institutions such as the Bank maintain an average daily balance of liquid assets (cash, certain time deposits, banker's acceptances and specified U.S. government, state or federal agency obligations) equal to a monthly average of not less than 5% of their net withdrawable deposits, plus short term borrowings. At June 30, 1997, the Bank's liquidity position was $14.3 million or 9.78% of liquid assets, compared to $13.1 million or 9.11% at December 31, 1996. OTS regulations also require that thrift institutions such as the Bank maintain an average daily balance of short term liquid assets (cash, certain time deposits, banker's acceptances and specified U.S. government, state or federal agency obligations) equal to a monthly average of not less than 1% of their net withdrawable deposits, plus short term borrowings. At June 30, 1997, the Bank's short term liquidity position was $7.8 million or 5.33% of short term liquid assets, compared to $4.1 million or 2.84% at December 31, 1996. The increase was due primarily to the increase in interest-bearing cash. Stockholders' equity totaled $48.3 million at June 30, 1997 compared to $49.2 million at December 31, 1996, reflecting the repurchase of the Company's common stock, the Company's earnings for the quarter, the amortization of the unallocated portion of shares held by the ESOP, dividends paid on common stock and the change in the net unrealized gains on securities, net of taxes. The Company repurchased 171,472 shares of its outstanding common stock at an aggregate cost of $2,706,750 in open market purchases during the second quarter of 1997. On April 7, 1997, the Company paid a quarterly cash dividend equal to $0.0625 per share on common stock -7- outstanding as of the close of business on March 14, 1996, aggregating $214,000. On May 23, 1997, the Company declared a quarterly cash dividend of $0.0625 per share payable on July 3, 1997 to shareholders of record as of the close of business on June 13, 1997 aggregating $204,000. RESULTS OF OPERATIONS Interest Income. Interest income increased by $197,000 to $3.9 million for the three months ended June 30, 1997 compared to $3.7 million for the three months ended June 30, 1996. The increase in interest income was primarily due to a $14.1 million increase in the average balance of interest earning assets (primarily first mortgage and consumer loans) to $200.1 million for the three months ended June 30, 1997, from $186.0 million for the comparable 1996 period. The increase in the average balance in first mortgage loans and consumer loans (primarily second mortgage loans) generally reflects an increase over the past twelve months in originations of first and second mortgage loans and purchases of first mortgage loans secured by one-to-four family residences and multi- family residences, which were offset, in part, by payments and prepayments on such loans. See "Financial Condition." The impact of the increase in the average balances of first mortgage and consumer loans was offset in part by a decrease in the average yield on first mortgage loans, consumer loans and securities available for sale. The average yield on first mortgage loans decreased to 8.03% for the three months ended June 30, 1997 from 8.17% for the three months ended June 30, 1996, primarily due to a general decrease in market interest rates. The average yield on consumer loans decreased to 9.40% for the three months ended June 30, 1997 from 9.57% for the three months ended June 30, 1996, also primarily due to a general decrease in market interest rates. The average balance of securities held to maturity decreased $11.7 million, or 95.9%, and such securities were in part, replaced by lower yielding securities available for sale. The average yield on interest earning assets decreased from 8.04% for the three months ended June 30, 1996 to 7.86% for the three months ended June 30, 1997. Interest income increased by $525,000 to $7.8 million for the six months ended June 30, 1997 compared to $7.3 million for the six months ended June 30, 1996. The increase in interest income was primarily due to a $16.5 million increase in the average balance of interest earning assets (primarily first mortgage and consumer loans) to $199.0 million for the six months ended June 30, 1997, from $182.5 million for the comparable 1996 period. The increase in the average balance in first mortgage loans and consumer loans (primarily second mortgage loans) generally reflects an increase over the past twelve months in originations of first and second mortgage loans and purchases of first mortgage loans secured by one-to-four family residences and multi-family residences, which were offset, in part, by payments and prepayments on such loans. See "Financial Condition." The impact of the increase in the average balances of first mortgage and consumer loans was offset in part by a decrease in the average yield on first mortgage loans, consumer loans and securities available for sale. The average yield on first mortgage loans decreased to 8.06% for the six months ended June 30, 1997 from 8.16% for the six months ended June 30, 1996, primarily due to a general decrease in market interest rates. The average yield on consumer loans decreased to 9.49% for the six months ended June 30, 1997 from 9.60% for the six months ended June 30, 1996, also primarily due to a general decrease in market interest rates. The average balance of securities held to maturity decreased $11.9 million, or 88.8%, and such securities were in part, replaced by lower yielding securities available for sale. The average yield on interest earning assets decreased from 8.03% for the six months ended June 30, 1996 to 7.89% for the six months ended June 30, 1997. Interest Expense. Interest expense increased by $289,000 to $1.9 million for the three months ended June 30, 1997 compared to $1.6 million for the three months ended June 30, 1996. The increase in interest expense was primarily due to a $22.9 million increase in the average balance of interest bearing liabilities (primarily borrowed funds) to $152.7 million for the three months ended June 30, 1997 from $129.8 million for the comparable 1996 period. The increase in the average balance in borrowed funds in 1997 reflects the repayment of borrowed funds with the proceeds of the Reorganization in 1996 and the increase of borrowed funds subsequent to the Reorganization in order to fund asset growth. The average cost of interest bearing liabilities remained relatively stable for the three months ended June 30, 1997, reflecting an overall decline in the average cost of certificates of deposit and borrowed funds, the effect of which was offset by the increased average balances of certificates of deposit and borrowed funds, which generally have higher costs than passbook, NOW and money market accounts. -8- RESULTS OF OPERATIONS (Continued) Interest expense increased by $306,000 to $3.8 million for the six months ended June 30, 1997 compared to $3.4 million for the six months ended June 30, 1996. The increase in interest expense was primarily due to a $13.0 million increase in the average balance of interest-bearing liabilities (primarily borrowed funds) to $150.7 million for the six months ended June 30, 1997 from $137.7 million for the comparable 1996 period. The increase in the average balance in borrowed funds in 1997 reflects the repayment of borrowed funds with the proceeds of the Reorganization in 1996 and the increase of borrowed funds subsequent to the Reorganization in order to fund asset growth. The average cost of interest bearing liabilities remained relatively stable for the six months ended June 30, 1997, reflecting an overall decline in the average cost of certificates of deposit, passbook savings accounts and borrowed funds the effect of which was offset by the increased average balances of certificates of deposit and borrowed funds, which generally have higher costs than passbook, NOW and money market accounts. Net Interest Income. Net interest income before provision for loan losses decreased by $91,000 to $2.0 million for the three months ended June 30, 1997 from $2.1 million for the three months ended June 30, 1996. The decrease is primarily due to the decrease in the excess of average interest earning assets over the average interest bearing liabilities. This net decrease was also due in part to the decrease in the Company's interest rate spread (i.e., the difference in the average yield on assets and average cost of liabilities) from 3.06% for the three months ended June 30, 1996 to 2.88% for the three months ended June 30, 1997. Net interest income before provision for loan losses increased by $218,000 to $4.1 million for the six months ended June 30, 1997 from $3.9 million for the six months ended June 30, 1996. The increase is due in part to the increase in the excess of average interest earning assets over average interest bearing liabilities. The impact of this net increase was offset in part by the decrease in the Company's interest rate spread (i.e., the difference in the average yield on assets and average cost of liabilities) from 3.00% for the six months ended June 30, 1996 to 2.87% for the six months ended June 30, 1997. The following tables set forth certain information relating to the Company's average balance sheets and reflect the average yield on assets and average cost of liabilities for the three and six month periods ended June 30, 1997 and 1996. -9- RESULTS OF OPERATIONS (Continued)
For Three Months Ended June 30, ---------------------------------------------------------------- 1997 1996 ------------------------------- ------------------------------ Average Average Average Average Balance Interest Yield/Cost Balance Interest Yield/Cost --------- -------- ----------- --------- -------- ---------- (Dollars in thousands) Assets: Interest-earning assets: First mortgage loans.............. $150,065 $3,014 8.03% $134,168 $2,741 8.17% Consumer loans.................... 22,924 537 9.40 20,640 491 9.57 Securities available for sale..... 24,000 539 5.66 14,484 241 6.70 Securities held to maturity....... 500 8 6.28 12,164 204 6.75 Interest bearing cash............. 2,646 34 5.11 4,571 57 5.00 -------- ------ ------ -------- ------ ------- Total interest-earning assets... 200,135 $3,932 7.86% 186,027 $3,734 8.04% ------ ------ ------ ------- Noninterest-earning assets........ 6,482 4,500 -------- -------- Total assets.................... $206,617 $190,527 ======== ======== Interest-bearing liabilities: NOW and money market savings....... $ 21,682 $ 156 2.88% $ 18,690 $ 131 2.82% Passbook savings................... 17,538 98 2.25 18,781 105 2.25 Certificates of Deposit............ 91,466 1,326 5.81 88,280 1,308 5.96 Borrowed funds..................... 21,983 316 5.76 4,055 64 6.30 -------- ------ ------ -------- ------ ------- Total interest-bearing liabilities.. 152,668 $1,896 4.98% 129,805 $1,607 4.98% ------ ------ ------ ------- Noninterest-bearing liabilities..... 5,160 5,245 -------- -------- Total liabilities................. 157,828 135,051 Equity.............................. 48,789 55,476 -------- -------- Total liabilities and equity...... $206,617 $190,527 ======== ======== Net interest income............... $2,036 $2,127 ====== ====== Net interest rate spread.......... 2.88% 3.06% ====== ====== Net interest margin............... 4.07% 4.57% ====== ====== Ratio of average interest-earning. 131.09% 143.31% ====== ======
For Six Months Ended June 30, ----------------------------------------------------------------- 1997 1996 ------------------------------- ------------------------------- Average Average Average Average Balance Interest Yield/Cost Balance Interest Yield/Cost --------- -------- ----------- --------- -------- ---------- (Dollars in thousands) Assets: Interest-earning assets: First mortgage loans............... $148,671 $5,995 8.06% $132,885 $5,419 8.16% Consumer loans..................... 22,546 1,061 9.49 19,935 951 9.60 Securities available for sale...... 23,539 663 5.68 11,980 389 6.52 Securities held to maturity........ 1,500 49 6.61 13,413 447 6.71 Interest bearing cash.............. 2,715 68 5.08 4,266 106 4.99 -------- ------ ------ -------- ------ ------- Total interest-earning assets.... 198,971 $7,837 7.89% 182,479 $7,312 8.03% ------ ------ ------ ------- Noninterest-earning assets......... 6,543 4,389 -------- -------- Total assets..................... $205,514 $186,868 ======== ======== Interest-bearing liabilities: NOW and money market savings....... $ 21,189 $ 302 2.87% $ 18,260 $ 256 2.81% Passbook savings................... 17,595 196 2.25 19,828 225 2.29 Certificates of Deposit............ 90,628 2,632 5.86 88,124 2,619 5.98 Borrowed funds..................... 21,305 620 5.87 11,483 344 6.03 -------- ------ ------ -------- ------ ------- Total interest-bearing liabilities.. 150,717 $3,750 5.02% 137,695 $3,444 5.03% ------ ------ ------ ------- Noninterest-bearing liabilities..... 5,537 4,874 -------- -------- Total liabilities................. 156,253 142,569 Equity.............................. 49,261 44,299 -------- -------- Total liabilities and equity...... $205,514 $186,868 ======== ======== Net interest income............... $4,086 $3,868 ====== ====== Net interest rate spread.......... 2.87% 3.00% ====== ====== Net interest margin............... 4.11% 4.24% ====== ====== Ratio of average interest-earning. 132.02% 132.52% ====== ======
-10- RESULTS OF OPERATIONS (Continued) Provision for Loan Losses. The Company's provision for loan losses was $60,000 for each of the three months ended June 30, 1997 and 1996. The Company's provision for loan losses was $120,000 for each of the six months ended June 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 loss experience, industry standards, past due loans, economic conditions, the volume and type of loans in the Bank's portfolio, which includes a significant amount of multifamily loans, substantially all of which are purchased and are collateralized by properties located outside of the Bank's market area, and other factors related to the collectibility of the Bank's loan portfolio. The net charge offs (recoveries) were $(5,000) for the six months ended June 30, 1997 as compared to net charge offs of $3,000 for the six months ended June 30, 1996. The resulting allowance for loan losses was $2.1 million at June 30, 1997 as compared to $2.0 million at December 31, 1996 and $1.9 million at June 30, 1996. This increase in the allowance for the first six months of 1997 reflects the increase in total loans from $160.2 million at June 30, 1996 to $176.5 million at June 30, 1997. The level of nonperforming loans decreased to $132,000 at June 30, 1997 from $184,000 at December 31, 1996 and $277,000 at June 30, 1996. Management believes that the allowance for loan losses is adequate. While management estimates loan losses using the best available information, such as independent appraisals for significant collateral properties, no assurance can be made that future adjustments to the allowance will not be necessary based on changes in economic and real estate market conditions, further information obtained regarding known problem loans, identification of additional problem loans, and other factors, both within and outside of management's control. Noninterest Income. Total noninterest income increased by $117,000 to $599,000 for the three months ended June 30, 1997 from $482,000 for the three months ended June 30, 1996. The increase is due to increases in fees and service charges, abstract fees and other income. Fees and service charges increased $30,000, primarily due to increases in overdraft fees. Abstract fees increased $51,000 due to increased sales volume, which is in part attributable to the purchase of the assets of an abstract company in December, 1996. Other income increased $35,000 primarily due to increases in rental income from the Bank's investment in the Northridge Apartments Limited Partnership, which owns and operates a 44-unit apartment complex in Fort Dodge, Iowa, insurance sales and gains on the sale of foreclosed real estate, offset in part by decreases in annuity sales. Total noninterest income increased by $179,000 to $1.1 million for the six months ended June 30, 1997 from $904,000 for the six months ended June 30, 1996. The increase is due to increases in fees and service charges, abstract fees and other income, offset by decreases in gain on sale of securities available for sale. Fees and service charges increased $60,000, primarily due to increases in overdraft fees. Abstract fees increased $111,000 due to increased sales volume, which is in part attributable to the purchase of the assets of an abstract company in December, 1996. Other income increased $22,000, primarily due to increases in rental income from the Bank's investment in the Northridge Apartments Limited Partnership, insurance sales and gains on the sale of foreclosed real estate, offset in part by decreases in annuity sales. Noninterest income for the six months ended June 30, 1996 also reflects gains on sales of securities available for sale of $14,000, while no such gains were recorded for the corresponding six month period in 1997. Noninterest Expense. Total noninterest expense increased by $154,000 to $1.1 million for the three months ended June 30, 1997 from $965,000 for the three months ended June 30, 1996. The increase is primarily due to increases in salaries and employee benefits and other expenses, offset by decreases in SAIF deposit insurance premiums. The increase in salaries and benefits was primarily a result of the increased costs associated with the ESOP, normal salary increases and an increase in the number of employees at the Ames office. The increase in other expenses is primarily a result of higher expenditures for advertising, printing, postage and supplies and costs associated with the Bank's investment in the Northridge Apartments Limited Partnership. The decrease in SAIF deposit insurance premiums was primarily due to the enactment of legislation to lower assessment rates. The Company's efficiency ratio for the three months ended June 30, 1997 and 1996 were 42.48% and 36.98%, respectively. The Company's ratio of noninterest expense to average assets for the three months ended June 30, 1997 and 1996 were 2.17% and 2.03%, respectively. -11- RESULTS OF OPERATIONS (Continued) Total noninterest expense increased by $188,000 to $2.2 million for the six months ended June 30, 1997 from $2.0 million for the six months ended June 30, 1996. The increase is primarily due to increases in other expenses, offset by a decrease in SAIF deposit insurance premiums. The increase in other expenses is primarily a result of higher expenditures for professional fees, advertising, printing, postage and supplies and costs associated with the Bank's investment in the Northridge Apartments Limited Partnership. The decrease in SAIF deposit insurance premiums was primarily due to the enactment of legislation to lower assessment rates. The Company's efficiency ratio for the six months ended June 30, 1997 and 1996 were 43.11% and 42.76%, respectively. The Company's ratio of noninterest expense to average assets for the six months ended June 30, 1997 and 1996 were 2.17% and 2.18%, respectively. Income Taxes. Income taxes decreased by $82,000 to $496,000 for the three months ended June 30, 1997 as compared to $578,000 for the three months ended June 30, 1996. The decrease was primarily due to a decrease in pre-tax earnings during the 1997 period as compared to the corresponding 1996 period and tax credits recognized from the Bank's investment in the Northridge Apartments Limited Partnership in 1997. Income taxes increased by $23,000 to $972,000 for the six months ended June 30, 1997 as compared to $949,000 for the six months ended June 30, 1996. The increase was primarily due to an increase in pre-tax earnings during the 1997 period as compared to the corresponding 1996 period, offset in part by tax credits recognized from the Bank's investment in the Northridge Apartments Limited Partnership in 1997. Net Income. Net income totalled $959,000 for the three months ended June 30, 1997, compared to $1.0 million for the same period in 1996. Net income totalled $1.8 million for the six months ended June 30, 1997, compared to $1.7 million for the same period in 1996. ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK Not applicable. -12- PART II. OTHER INFORMATION Item 1. Legal Proceedings Not applicable Item 2. Changes in Securities Not applicable Item 3. Defaults Upon Senior Securities Not applicable Item 4. Submission of Matters to a Vote of Security Holders The Company held its 1997 Annual Meeting of Stockholders on April 25, 1997. At the meeting, the stockholders of the Company considered and voted upon: 1. The election as directors are as follows: Three-year term: David M. Bradley Robert H. Singer, Jr. The results of the election of directors are as follows: Votes ----- In favor Withheld --------- -------- David M. Bradley 3,163,246 9,321 Robert H. Singer, Jr. 3,162,965 9,602 There were no broker non-votes on this proposal. 2. The approval of Amendment No. 1 to the North Central Bancshares, Inc. 1996 Stock Option Plan was approved by a vote of 2,691,708 in favor, 188,123 votes against and 31,541 votes abstaining. There were 261,195 broker non-votes on this proposal. 3. The ratification of the engagement of McGladrey & Pullen LLP, as the Company's independent auditors, was approved by a vote of 3,137,214 in favor, 1,047 votes against and 34,226 votes abstaining. There were 80 broker non-votes on this proposal. Item 5. Other Information Not applicable -13- Item 6. Exhibits and Reports on Form 8-K Exhibit 27. Financial data schedule. (Only submitted with filing in electronic format.) Exhibit 99.1 Press Release (regarding the declaration of a dividend). Exhibit 99.2 Press Release (regarding the issuance of limited financial information for the quarter ended June 30, 1997). Exhibit 99.3 Press Release (regarding the announcement of a stock repurchase program). Exhibit 99.4 Press Release (regarding the completion of a stock repurchase program). (b)Reports on Form 8-K None -14- SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed by the undersigned thereunto duly authorized. NORTH CENTRAL BANCSHARES, INC. DATE: August 13, 1997 BY: /s/ David M. Bradley David M. Bradley, CPA Chairman, President and Chief Executive Officer DATE: August 13, 1997 BY: /s/ John L. Pierschbacher John L. Pierschbacher, CPA Principal Financial Officer -15- EX-27 2 FINANCIAL DATA SCHEDULE
9 This schedule contains summary financial information extracted from the consolidated condensed statement of financial condition and the consolidated condensed statement of income and is qualified in its entirety by reference to such financial statements. 6-MOS DEC-31-1997 JAN-01-1997 JUN-30-1997 637,863 7,244,336 0 0 25,315,061 0 0 172,430,540 2,077,959 212,868,592 136,257,906 16,250,000 1,803,907 10,300,000 0 0 40,111 48,216,668 212,868,592 7,055,562 780,948 0 7,836,510 3,130,329 3,750,115 4,086,395 120,000 0 2,228,688 2,820,690 0 0 0 1,848,474 .57 .57 7.89 132,000 0 0 0 1,952,887 5,000 10,000 2,077,959 2,077,959 0 0
EX-99.1 3 PRESS RELEASE RE: DECLARATION OF A DIVIDEND Exhibit 99.1 Press release May 23, 1997 For further information contact: David M. Bradley Chairman, President & Chief Executive Officer North Central Bancshares, Inc. 825 Central Avenue Fort Dodge, Iowa 50501 515-576-7531 NORTH CENTRAL BANCSHARES, INC. DECLARES DIVIDEND David M. Bradley, Chairman, President and Chief Executive Officer of North Central Bancshares, Inc. (the "Company") announced today that the Company declared a regular quarterly cash dividend of $.0625 per share on the Company's common stock for the fiscal quarter ended June 30, 1997. The dividend will be payable to all stockholders of record as of June 13, 1997 and will be paid on July 3, 1997. The Company's common stock trades on the Nasdaq Stock Market under the symbol "FFFD". The Company's wholly owned subsidiary, First Federal Savings Bank of Fort Dodge, is a federally chartered savings bank headquartered in Fort Dodge, Iowa. EX-99.2 4 PRESS RELEASE RE: ISSUANCE OF LIMITED FIN'L INFO Exhibit 99.2 Limited Financial Information July 21, 1997 For further information contact: David M. Bradley Chairman, President & Chief Executive Officer North Central Bancshares, Inc. 825 Central Avenue 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 $959,000, or $0.30 per share for the second quarter of 1997, compared to $1.0 million, or $0.26 per share during the second quarter of 1996. For the six months ended June 30, 1997, the net earnings were $1.8 million or $0.57 per share, as compared to $1.7 million or $0.43 per share for the corresponding period a year ago. On March 20, 1996, First Federal Savings Bank completed a reorganization from a mutual holding company form of organization to a stock holding company form of organization. Pursuant to this transaction, the Bank became a wholly-owned subsidiary of North Central Bancshares, Inc. and the Company replaced the Bank as the issuer listed by The Nasdaq Stock Market. In addition to the exchange of the Bank's common stock for 1,385,590 shares of the Company's stock, the Company sold 2,625,467 shares of stock in a subscription offering. This stock offering resulted in net proceeds for the Company of $25.4 million. Total assets at June 30, 1997 were $212.9 million as compared to $203.1 million at December 31, 1996. The increase in total assets resulted primarily from increases in cash, securities available for sale and loans, partially offset by decreases in securities held to maturity. Deposits increased $6.5 million, or 5.0% from $129.7 million at December 31, 1996 to $136.3 million at June 30, 1997. Other borrowed funds increased $4.2 million or 18.9% from $22.3 million at December 31, 1996 to $26.6 million at June 30, 1997. Nonperforming assets were 0.12% of total assets as of June 30, 1997 compared to 0.15% of total assets as of December 31, 1996. The allowance for loan losses was $2.1 million or 1.18% of total loans at June 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 June 30, 1997 was 4.07% compared to 4.57% for the corresponding quarter in 1996, primarily due to the cost associated with the purchase of treasury stock, as compared to no such costs for the second quarter of 1996. Net interest income for the quarter ended June 30, ...MORE... EX-99.3 5 PRESS RELEASE RE: ANNOUNCEMENT OF STOCK PROGRAM Exhibit 99.3 Press release April 22, 1997 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 STOCK REPURCHASE PROGRAM Fort Dodge, Iowa, April 22, 1997 - North Central Bancshares, Inc. (Nasdaq: "FFFD") (the "Company"), the holding company for First Federal Savings Bank of Fort Dodge, announced that it will commence a stock repurchase program beginning on or about April 28, 1997. The program authorizes the Company to repurchase up to five percent of its 3,429,455 outstanding shares of common stock during the next twelve months. The repurchases will be made from time to time, in open market transactions, at the discretion of management. The Company notified the Office of Thrift Supervision on April 10, 1997 of the adoption of this stock repurchase program and the applicable waiting period expired on April 21, 1997. North Central Bancshares, Inc., with over $203 million in assets, is the holding company for First Federal Savings Bank of Fort Dodge, a federally chartered stock savings bank. First Federal is a community-oriented institution serving north central Iowa through 4 full service locations in Fort Dodge, Nevada, and Ames, Iowa. First Federal's deposits are insured by the Federal Deposit Insurance Corporation. EX-99.4 6 PRESS RELEASE RE: COMPLETION OF STOCK PROGRAM Exhibit 99.4 Press release May 28, 1997 For further information contact: David M. Bradley President and Chief Executive Officer North Central Bancshares, Inc. 825 Central Avenue Fort Dodge, Iowa 50501 515-576-7531 NORTH CENTRAL BANCSHARES, INC. COMPLETES STOCK REPURCHASE Fort Dodge, Iowa May 28, 1997 - North Central Bancshares, Inc. (Nasdaq: "FFFD") announced that it has completed its third stock repurchase program on May 27, 1997. The Company said it repurchased 171,472 shares of its outstanding common stock, par value $.01 per share, at the aggregate cost of $2,706,750, in open market transactions. The repurchase program received regulatory approval on April 16, 1997. Upon settlement of the last transaction on or about May 30, 1997, there will be 3,257,983 shares of North Central Bancshares, Inc. common stock outstanding. North Central Bancshares, Inc., with over $200 million in assets, is the holding company for First Federal Savings Bank of Fort Dodge, a federally chartered stock savings bank. First Federal is a community-oriented institution serving north central Iowa through 4 full service locations in Fort Dodge, Nevada, and Ames, Iowa. First Federal's deposits are insured by the Federal Deposit Insurance Corporation. -----END PRIVACY-ENHANCED MESSAGE-----