8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, DC 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): August 7, 2009

NORTH CENTRAL BANCSHARES, INC.

(Exact name of registrant as specified in its charter)

Iowa	0-27672	42-1449849
(State of incorporation)	Commission File No.	(I.R.S. Employer 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):

o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

o 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 August 7, 2009, North Central Bancshares, Inc. (the “Company”) announced its earnings for the second quarter of 2009.  A copy of the press release dated August 7, 2009 is attached as Exhibit 99.1. The press release contains forward-looking statements regarding the Company and includes cautionary statements identifying important factors that could cause actual results to differ.

The Company’s news release is furnished as Exhibit 99.1 to this Current Report.

Item 9.01 Financial Statements, Pro Forma Financial Information and Exhibits.

(d) Exhibits.

99.1  Press release issued by the Company on August 7, 2009.

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.
Date: August 7, 2009	By:	/s/ David M. Bradley
		David M. Bradley
		Chairman, President and Chief Executive Officer

EX-99.1

North Central Bancshares, Inc.

David M. Bradley

515-576-7531

Distribution: Iowa Newsline

August 7, 2009

NORTH CENTRAL BANCSHARES, INC. ANNOUNCES PRELIMINARY RESULTS FOR SECOND QUARTER 2009

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 net income of $894,000, or $0.57 per diluted share, for the quarter ended June 30, 2009, compared to a net loss of $(957,000), or $(0.71) per diluted share for the quarter ended June 30, 2008.  Net income increased by $1.83 million to $1.68 million or $1.06 per diluted share for the six months ended June 30, 2009, compared to a net loss of $(153,000), or $(0.11) per diluted share for the six months ended June 30, 2008.  The increase in earnings, for the current quarter and current period year to date, was primarily due to a decrease in other-than-temporary impairment on the investment portfolio and an increase in net interest income, offset in part by increases in provision for loan losses and FDIC insurance expense.

Net interest income for the quarter ended June 30, 2009 was $3.61 million, compared to net interest income of $3.26 million for the quarter ended June 30, 2008.  The increase in net interest income was primarily due to an increase in net interest spread.  The net interest spread (the difference in the average yield on assets and average cost of liabilities) increased to 3.07% for the quarter ended June 30, 2009 from 2.59% for the quarter ended June 30, 2008.

The Company’s provision for loan losses was $610,000 and $160,000 for the quarters ended June 30, 2009 and 2008, respectively.  The first six months of 2009 provision was $770,000 compared to $220,000 for the first six months of 2008. Additions to the allowance for loan losses during the first six months of 2009 were driven by a variety of factors including a deterioration of economic conditions, downgrades in internal risk ratings, reductions in appraised values, and higher levels of charge-offs. 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 allowance for loan losses at June 30, 2009 was 1.43 percent of loans and 52.84 percent of nonperforming loans, compared to 1.32 percent of loans and 134.34 percent of nonperforming loans at December 31, 2008. Nonperforming loans were $10.78 million or 2.65 percent of total loans at June 30, 2009, compared to $8.02 million or 2.00 percent of total loans at December 31, 2008, and $9.59 million or 2.43 percent of total loans at March 31, 2009.

The Company’s noninterest income was $2.29 million and $1.90 million for the quarters ended June 30, 2009 and 2008, respectively.  The increase in noninterest income was primarily due to increases in loan prepayment fees and mortgage banking income for the quarters ended June 30, 2009 and 2008, respectively.  Loan prepayment fees increased $200,000 and mortgage banking income increased $182,000 for the quarter ended June 30, 2009 compared to June 30, 2008.

Total securities losses decreased to $33,000 for the quarter ended June 30, 2009 compared to a loss of $1.96 million for the quarter ended June 30, 2008.  During the quarter ended June 30, 2008 the Company recorded a other-than-temporary impairment on securities available-for-sale of $1.96 million primarily due to investments in Fannie Mae and Freddie Mac preferred stock.  The Company no longer holds investments in these entities.

The Company’s noninterest expense was $3.91 million and $3.64 million for the quarters ended June 30, 2009 and 2008, respectively.  The increase in noninterest expense was primarily due to an increase in FDIC insurance expense, offset by a decrease on impairment on other real estate owned.  FDIC insurance expense increased by $352,000 for the quarter ended June 30, 2009 compared to the same period in 2008.  Included in the FDIC assessments recorded during the second quarter of 2009 was $210,000 for the emergency special assessment.

The Company’s provision for income taxes was $456,000 and $366,000 for the quarters ended June 30, 2009 and 2008, respectively.  The increase in the provision for income taxes was primarily due to an increase in income before income taxes and an increase in the Company’s effective tax rate. During the second quarter 2008, the Company recorded other-than-temporary impairments with minimal tax benefit.

Total assets at June 30, 2009 were $460.9 million, compared to $473.3 million at December 31, 2008.  Net loans decreased by $8.7 million, or 2.2%, to $392.1 million at June 30, 2009, from $400.8 million at December 31, 2008.  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, multi-family and consumer loans.  At June 30, 2009, net loans consisted of (i) $156.8 million of one-to-four family real estate representing a decrease of $13.5 million from December 31, 2008, (ii) $93.3 million of commercial real estate loans representing a decrease of $2.3 million from December 31, 2008, (iii) $65.4 million of multi-family real estate loans representing an increase of $7.9 million from December 31, 2008, and (iv) $76.6 million of consumer loans representing a decrease of $700,000 from December 31, 2008.  Cash and cash equivalents decreased $8.1 million, or 49.8%, to $8.2 million at June 30, 2009, compared to $16.3 million at December 31, 2008.  The decrease in cash and cash equivalents was primarily due to a decrease in deposits.  Securities available-for-sale increased $4.1 million from December 31, 2008, primarily due to the purchase of $8.1 million of securities during the six months ended June 30, 2009.

Deposits decreased $19.0 million, or 5.4%, to $331.2 million at June 30, 2009, from $350.2 million at December 31, 2008.  The decrease in deposits was primarily due to a decrease in certificates of deposits and brokered deposits, offset by increases in NOW, money market and savings accounts.  Borrowed funds decreased $5.5 million, or 6.7%, to $76.8 million at June 30, 2009, from $82.3 million at December 31, 2008.

The Bank remains “well capitalized” for regulatory capital purposes. See the Selected Financial Ratios included in the Financial Highlights below. Stockholders’ equity was $47.0 million at June 30, 2009, compared to $35.2 million at December 31, 2008.  Common stockholders’ equity per share was $27.35 at June 30, 2009, compared to $26.21 at December 31, 2008. The ratio of stockholders’ equity to total assets was 10.20% at June 30, 2009, compared to 7.44% at December 31, 2008.

All common stockholders of record on June 12, 2009, received a quarterly cash dividend of $0.01 per common share on July 3, 2009.  In addition, on May 15, 2009 the Company paid an aggregate cash dividend of $127,500 on the cumulative preferred stock issued to the Treasury.  As of June 30, 2009, the Company had 1,346,448 shares of common stock outstanding and 10,200 shares of cumulative preferred stock outstanding.

About the Company and the Bank

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, Chairman, 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, 2009			December 31, 2008
Assets
Cash and cash equivalents	$	8,174		$	16,282
Securities available-for-sale		31,669			27,530
Loans (net of allowance for loan loss of $5,698 and $5,379, respectively)		392,138			400,787
Other assets		28,871			28,699
Total assets	$	460,852		$	473,298
Liabilities
Deposits	$	331,224		$	350,170
Other borrowed funds		76,834			82,349
Other liabilities		5,767			5,567
Total liabilities		413,825			438,086
Stockholders' equity		47,027			35,212
Total liabilities and stockholders' equity	$	460,852		$	473,298
Stockholders' equity to total assets		10.20	%		7.44	%
Book value per common share	$	27.35		$	26.21
Total shares of common stock outstanding		1,346,448			1,343,448
Total shares of cumulative preferred stock outstanding		10,200			-

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,
	2009			2008			2009			2008
Interest income	$	6,287		$	7,155		$	12,752		$	14,643
Interest expense		2,675			3,895			5,743			8,188
Net interest income		3,612			3,260			7,009			6,455
Provision for loan loss		610			160			770			220
Net interest income after provision for loan loss		3,002			3,100			6,239			6,235
Noninterest income		2,289			1,904			4,145			3,608
Securities gains/(losses), net		(33	)		(1,960	)		(43	)		(1,960	)
Noninterest expense		3,908			3,635			7,855			7,379
Income /(loss) before income taxes		1,350			(591	)		2,486			504
Income taxes		456			366			810			657
Net income/(loss)	$	894		$	(957	)	$	1,676		$	(153	)
Preferred stock dividends and accretion of discount		132			-			251			-
Net income/(loss) available to common shareholders		762			(957	)		1,425			(153	)
Basic earnings/(loss) per common share	$	0.57		$	(0.71	)	$	1.06		$	(0.11	)
Diluted earnings/(loss) per common share	$	0.57		$	(0.71	)	$	1.06		$	(0.11	)

Selected Financial Ratios	For the Three Months Ended June 30,						For the Six Months Ended June 30,
	2009			2008			2009			2008
Performance ratios
Net interest spread		3.07	%		2.59	%		2.94	%		2.53	%
Net interest margin		3.31	%		2.80	%		3.18	%		2.74	%
Return on average assets		0.77	%		(0.76	)%		0.71	%		(0.06	)%
Return on average equity		7.64	%		(9.22	)%		7.30	%		(0.74	)%

	June 30, 2009			June 30, 2008
Capital ratios (First Federal Savings Bank of Iowa)
Tangible*		9.32	%		7.22	%
Core*		9.32	%		7.22	%
Risk-based*		14.04	%		10.81	%
*Exceeds regulatory definition of “well capitalized”