NASB Financial, Inc. Announces Financial Results

NASB Financial, Inc. (NASDAQ: NASB) announced today net income for the quarter ended June 30, 2014, of $4,588,000 or $0.58 per share. This compares to net income of $6,181,000 or $0.79 per share for the quarter ended March 31, 2014, and compares to net income of $1,775,000 or $0.23 per share for the quarter ended June 30, 2013.

Included in the results for the quarter ended March 31, 2014 is 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 for the quarter ended March 31, 2014, would have been $2,931,000 or $0.37 per share.

Net income for the nine months ended June 30, 2014, was $12,768,000 or $1.62 per share, which included a negative provision for loan losses of $5.0 million recorded in the March 2014 quarter. This compares to net income of $21,110,000 or $2.68 per share for the nine months ended June 30, 2013, which included a negative provision for loan losses of $9.6 million.

Excluding the after tax impact of the negative loan loss provision, net income would have been $9,518,000 or $1.21 per share for the nine months ended June 30, 2014, as compared to $15,206,000 or $1.93 per share for the nine months ended June 30, 2013.

Non-interest income was $26,945,000 for the nine month period ended June 30, 2014, compared to $46,459,000 for the nine month period ended June 30, 2013. This decrease was primarily the result of lower residential loan origination volume in the Bank’s mortgage banking division.

NASB Financial, Inc. is a unitary thrift holding company for North American Savings Bank, F.S.B. (“North American” or the “Bank”). As of June 30, 2014, the Bank’s Tier 1 leverage ratio and total risk-based capital ratio was 17.4% and 24.2%, 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
        
        
        
        
        
        
        
        
          Nine Months Ended
        
        
        
      
      
        
        
        
        
        
           
        
        
          6/30/14
        
        
           
        
        
           
        
        
          3/31/14
        
        
           
        
        
           
        
        
          6/30/13
        
        
           
        
        
        
        
        
        
        
        
          6/30/14
        
        
           
        
        
           
        
        
          6/30/13
        
        
           
        
        
        
      
      
        
          

EARNINGS DATA:

        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
      
      
        
          Net interest income
        
        
        
        
          $
        
        
          11,110
        
        
        
        
        
        
          10,689
        
        
        
        
        
        
          10,273
        
        
        
        
        
        
        
        
        
        
          32,688
        
        
        
        
        
        
          32,345
        
        
        
        
        
      
      
        
          Provision for loan losses
        
        
        
        
        
        
          --
        
        
        
        
        
        
          (5,000
        
        
          )
        
        
        
        
          --
        
        
        
        
        
        
        
        
        
        
          (5,000
        
        
          )
        
        
        
        
          (9,600
        
        
          )
        
        
        
      
      
        
          Non-interest income
        
        
        
        
        
        
          10,879
        
        
        
        
        
        
          8,765
        
        
        
        
        
        
          10,997
        
        
        
        
        
        
        
        
        
        
          26,945
        
        
        
        
        
        
          46,459
        
        
        
        
        
      
      
        
          Non-interest expense
        
        
        
        
        
        
          14,930
        
        
        
        
        
        
          14,945
        
        
        
        
        
        
          18,384
        
        
        
        
        
        
        
        
        
        
          44,995
        
        
        
        
        
        
          54,079
        
        
        
        
        
      
      
        
          Income tax expense (benefit)
        
        
        
        
           
        
        
          2,471
        
        
           
        
        
           
        
        
          3,328
        
        
           
        
        
           
        
        
          1,111
        
        
           
        
        
        
        
        
        
        
        
          6,870
        
        
           
        
        
           
        
        
          13,215
        
        
           
        
        
        
      
      
        
          Net income (loss)
        
        
        
        
          $
        
        
          4,588
        
        
           
        
        
           
        
        
          6,181
        
        
           
        
        
           
        
        
          1,775
        
        
           
        
        
        
        
        
        
        
        
          12,768
        
        
           
        
        
           
        
        
          21,110
        
        
           
        
        
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          

FINANCIAL CONDITION DATA:

        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
      
      
        
          Total assets
        
        
        
        
          $
        
        
          1,206,935
        
        
        
        
        
        
          1,184,745
        
        
        
        
        
        
          1,142,405
        
        
        
        
        
        
        
        
        
        
          1,206,935
        
        
        
        
        
        
          1,142,405
        
        
        
        
        
      
      
        
          

Total loans and mortgage-backed and related securities

        
        
        
        
        
        
          849,805
        
        
        
        
        
        
          820,600
        
        
        
        
        
        
          790,463
        
        
        
        
        
        
        
        
        
        
          849,805
        
        
        
        
        
        
          790,463
        
        
        
        
        
      
      
        
          

Customer and brokered deposit accounts

        
        
        
        
        
        
          744,406
        
        
        
        
        
        
          755,204
        
        
        
        
        
        
          801,348
        
        
        
        
        
        
        
        
        
        
          744,406
        
        
        
        
        
        
          801,348
        
        
        
        
        
      
      
        
          Stockholders' equity
        
        
        
        
        
        
          205,526
        
        
        
        
        
        
          200,374
        
        
        
        
        
        
          190,575
        
        
        
        
        
        
        
        
        
        
          205,526
        
        
        
        
        
        
          190,575
        
        
        
        
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          

FINANCIAL RATIOS AND PER SHARE DATA:

        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
      
      
        
          Book value per share
        
        
        
        
          $
        
        
          26.12
        
        
        
        
        
        
          25.47
        
        
        
        
        
        
          24.22
        
        
        
        
        
        
        
        
        
        
          26.12
        
        
        
        
        
        
          24.22
        
        
        
        
        
      
      
        
          Earnings (loss) per share
        
        
        
        
        
        
          0.58
        
        
        
        
        
        
          0.79
        
        
        
        
        
        
          0.23
        
        
        
        
        
        
        
        
        
        
          1.62
        
        
        
        
        
        
          2.68
        
        
        
        
        
      
      
        
          Cash dividends paid per share
        
        
        
        
        
        
          0.10
        
        
        
        
        
        
          0.60
        
        
        
        
        
        
          --
        
        
        
        
        
        
        
        
        
        
          0.70
        
        
        
        
        
        
          --
        
        
        
        
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          

Return on assets (annualized net income divided by total average assets)

        
        
        
        
        
        
          1.53
        
        
          %
        
        
        
        
          2.09
        
        
          %
        
        
        
        
          0.61
        
        
          %
        
        
        
        
        
        
        
        
          1.45
        
        
          %
        
        
        
        
          2.36
        
        
          %
        
        
        
      
      
        
          

Return on equity (annualized net income divided by average stockholders' equity)

        
        
        
        
        
        
          9.04
        
        
          %
        
        
        
        
          

12.60

%

        
        
        
        
          3.73
        
        
          %
        
        
        
        
        
        
        
        
          8.49
        
        
          %
        
        
        
        
          15.55
        
        
          %
        
        
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Weighted average shares outstanding
        
        
        
        
        
        
          7,867,614
        
        
        
        
        
        
          7,867,614
        
        
        
        
        
        
          7,867,614
        
        
        
        
        
        
        
        
        
        
          7,867,614
        
        
        
        
        
        
          7,867,614
        
        
        
        
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
    
    

NASB Financial, Inc.Rhonda Nyhus, 816-765-2200