NASB Financial, Inc. Announces Financial Results

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Dec 18, 2014, 03:52 ET

GRANDVIEW, Mo., Dec. 18, 2014 /PRNewswire/ -- NASB Financial, Inc. (OTCQX: NASB) announced today net income for the quarter ended September 30, 2014, of $3,913,000 or $0.50 per share. This compares to net income of $4,588,000 or $0.58 per share for the quarter ended June 30, 2014, and compares to net income of $6,517,000 or $0.83 per share for the quarter ended September 30, 2013.

Net income for the twelve months ended September 30, 2014, was $16,681,000 or $2.13 per share, compared to net income of $27,627,000 or $3.51 per share for the twelve months ended September 30, 2013.

During the twelve months ended September 30, 2014, the Bank recorded a negative provision for loan losses of $5.0 million to reduce the Bank's Allowance for Loan and Lease Losses ("ALLL") consistent with the Bank's ALLL methodology. The negative provision was based primarily on notable improvement in the Bank's credit quality and improvement in the real estate markets in which the Bank operates. Excluding the after tax impact of the negative loan loss provisions, net income would have been $13.4 million, or $1.71 per share, for the twelve months ended September 30, 2014.

During the twelve months ended September 30, 2013, the Bank recorded negative provisions for loan losses of $9.6 million, which were necessary to reduce the Bank's ALLL to a level consistent with the Bank's ALLL methodology. During fiscal 2013, various quantitative factors used in the ALLL methodology showed notable improvement, including a decrease in criticized assets, decreases in the Bank's level of non-performing assets, and declines in the Bank's commercial real estate, construction and land development portfolios which have historically experienced higher loss rates. Qualitative factors also improved, including renewed strength of the Kansas City area housing market, where the Bank's construction and land development loans are concentrated. Excluding the after tax impact of the negative loan loss provisions, net income would have been $21.7 million, or $2.76 per share, for the twelve months ended September 30, 2013.

NASB Financial, Inc. is a unitary thrift holding company for North American Savings Bank, F.S.B. ("North American" or the "Bank"). As of September 30, 2014, the Bank's Tier 1 leverage ratio and total risk-based capital ratio were 17.4% and 22.9%, respectively.

North American operates six offices in greater Kansas City, Missouri and others in Harrisonville, St. Joseph, and Excelsior Springs, Missouri. The Bank, a nationwide residential mortgage lender, also has loan origination offices in greater Kansas City, Missouri.

NASB Financial, Inc.
Financial Highlights
(Dollars in thousands, except per share data)

				Three Months Ended			Twelve Months Ended
				9/30/14	6/30/14	9/30/13	9/30/14	9/30/13
EARNINGS DATA:
		Net interest income	$	11,010	11,110	10,348	43,698	42,693
		Provision for loan losses		--	--	--	(5,000)	(9,600)
		Non-interest income		10,959	10,879	16,276	37,904	62,735
		Non-interest expense		15,949	14,930	16,028	60,944	70,107
		Income tax expense		2,107	2,471	4,079	8,977	17,294
		Net income	$	3,913	4,588	6,517	16,681	27,627

FINANCIAL CONDITION DATA:
	Total assets		$	1,168,083	1,206,935	1,144,155	1,168,083	1,144,155
	Total loans and mortgage-backed and related securities, net			921,447	849,805	807,916	921,447	807,916
	Customer and brokered deposit accounts			773,762	744,406	748,193	773,762	748,193
	Stockholders' equity			199,892	205,526	195,517	199,892	195,517

FINANCIAL RATIOS AND PER SHARE DATA:
		Book value per share	$	26.64	26.12	24.85	26.64	24.85
		Earnings per share		0.50	0.58	0.83	2.13	3.51
		Cash dividends paid per share		0.10	0.10	--	0.80	--

		Return on assets (annualized net income divided by total average assets)		1.32%	1.53%	2.28%	1.44%	2.32%
		Return on equity (annualized net income divided by average stockholders' equity)		7.72%	9.04%	13.50%	8.44%	15.05%

		Weighted average shares outstanding		7,794,699	7,867,614	7,867,614	7,849,235	7,867,614