First Federal Bankshares Announces Earnings and Declares Dividend

Apr 23, 2001, 01:00 ET from First Federal Bankshares, Inc.

    SIOUX CITY, Iowa, April 23 /PRNewswire Interactive News Release/ --
     First Federal Bankshares, Inc. (Nasdaq: FFSX) (the "Company") reported net
 earnings of $1.3 million, or diluted earnings per share of $.29, for the third
 fiscal quarter ended March 31, 2001.  This compares to earnings of
 $1.2 million, or diluted earnings per share of $.26, for the same quarter in
 2000 and earnings of $1.1 million, or diluted earnings per share of $.24, for
 the prior quarter ended December 31, 2000.  Net earnings for the nine months
 ended March 31, 2001 totaled $3.6 million, or diluted earnings per share of
 $.80, compared to net earnings of $3.6 million, or diluted earnings per share
 of $.79 for the nine months ended March 31, 2000.
     Net earnings increased by $109,000, or 9.4%, to $1.3 million for the three
 months ended March 31, 2001 from $1.2 million for the three months ended
 March 31, 2000.  Net interest income after provision for losses increased by
 $273,000, or 6.3%, for the three months ended March 31, 2001 as compared to
 the same period one year earlier due to an increase of 5 basis points in the
 Company's net interest margin to 2.55% for the quarter ended March 31, 2001
 from 2.50% for the quarter ended March 31, 2000.  In addition, the ratio of
 average interest-earning assets to average interest-bearing liabilities
 improved to 107.24% for the three months ended March 31, 2001 from 105.87% for
 the three months ended March 31, 2000.
     Noninterest income increased by $441,000, or 29.4%, to $1.9 million for
 the three months ended March 31, 2001 from $1.5 million for the three months
 ended March 31, 2000.  The increase in noninterest income was largely due to
 recognition of a net gain on the sale of securities that totaled $372,000 for
 the three months ended March 31, 2001.  In March 2001 the Company securitized
 $112.7 million of fixed-rate single-family mortgage loans and subsequently
 sold $49.0 million of the securities created by the loan securitization
 generating a net gain on the transaction of $384,000.  The increase in
 noninterest income was offset by an increase of $452,000, or 11.1%, in
 noninterest expense to $4.5 million for the three months ended March 31, 2001
 from $4.1 million for the three months ended March 31, 2000.  The increase in
 noninterest expense was partly due to expenses totaling $143,000 incurred in
 connection with the securitization of loans during the quarter.
     Net earnings totaled $3.6 million for each of the nine-month periods ended
 March 31, 2001 and 2000.  Net interest income after provision for losses
 increased by $173,000, or 1.3%, to $13.4 million for the nine months ended
 March 31, 2001 from $13.2 million for the nine months ended March 31, 2000.
 Noninterest income increased by $309,000, or 6.4%, to $5.2 million for the
 nine months ended March 31, 2001 from $4.9 million for the nine months ended
 March 31, 2000 largely due to the increase in gain on sale of securities.
 Noninterest expense increased by $493,000, or 4.0%, to $13.0 million for the
 nine months ended March 31, 2001 from $12.5 million for the nine months ended
 March 31, 2000.
     Total assets decreased by $52.7 million, or 7.3%, to $670.7 million at
 March 31, 2001 from $723.4 million at June 30, 2000.  The decrease in total
 assets was primarily due to the sale of $49.0 million of mortgage-backed
 securities and to a reduction in the Company's callable investment portfolio
 as issues were called in the generally lower market interest rate environment.
 Proceeds received from these sales and calls were used to repay short-term
 Federal Home Loan Bank borrowings.
     During the quarter ended March 31, 2001, the Company purchased
 5,000 shares of its common stock at an average cost of $10.625 per share under
 a stock repurchase program announced in December 2000.  Under the repurchase
 plan, the Company expects to repurchase up to 455,000 additional shares during
 calendar year 2001.
     Book value, or stockholders' equity, increased by $2.18, or 15.3%, to
 $16.46 per share at March 31, 2001 from $14.28 at March 31, 2000.
 Stockholders' equity to total assets was 11.26% and 9.29%, respectively, at
 March 31, 2001 and 2000.  The increase in stockholders' equity was partly due
 to a net unrealized gain totaling $1.2 million at March 31, 2001 in the
 Company's available-for-sale ("AFS") securities portfolio in the generally
 lower market interest rate environment.  In comparison, the Company reported a
 net unrealized loss of $4.6 million at March 31, 2000 in the AFS portfolio.
 The Company had 4,587,817 shares outstanding at March 31, 2001.
     On April 19, 2001, the Company's Board of Directors declared a quarterly
 dividend of $.08 per share, the same as distributed last quarter.  The
 dividend is payable on May 31, 2001 to stockholders of record on May 17, 2001.
     The Company's common stock is traded on the Nasdaq National Market under
 the symbol FFSX.  The Company is headquartered in Sioux City, Iowa.  First
 Federal Bank, the Company's bank subsidiary, operates ten offices in northwest
 Iowa, an office in South Sioux City, Neb., and six offices in central Iowa.
 
 
     FIRST FEDERAL BANKSHARES, INC and SUBSIDIARIES
     CONDENSED CONSOLIDATED BALANCE SHEETS
            (Unaudited)                       March 31,   June 30,    March 31,
                                                2001        2000        2000
     ASSETS                                        (Dollars in thousands)
     Cash and cash equivalents                $19,105     $20,167     $18,097
     Securities available-for-sale            163,099     117,326     118,820
     Securities held-to-maturity               21,095      23,737      28,377
     Loans receivable, net                    412,135     505,090     496,157
     Office property and equipment, net        14,894      15,315      15,484
     Federal Home Loan Bank stock, at cost      9,469       8,929       8,929
     Accrued interest receivable                4,575       4,800       4,771
     Excess of cost over fair value of
      assets acquired                          19,177      19,900      20,142
     Other assets                               7,111       8,118       9,039
        Total assets                         $670,660    $723,382    $719,816
     LIABILITIES
     Deposits                                 485,255     471,626     483,469
     Advances from Federal Home Loan Bank      99,911     174,020     160,941
     Advances by borrowers for taxes and
      insurance                                   940       2,828       1,203
     Accrued taxes on income                      138         293         792
     Accrued interest payable                   5,886       4,297       4,363
     Accrued expenses and other
      liabilities                               3,013       2,205       2,179
        Total liabilities                     595,143     655,269     652,947
     STOCKHOLDERS' EQUITY
     Common stock, $.01 par value                  48          48          48
     Additional paid-in capital                36,005      36,003      35,994
     Retained earnings, substantially
      restricted                               42,266      39,783      38,873
     Treasury stock, at cost - 249,875,
      144,050 and 144,050 shares at
      March 31, 2001, June 30, 2000
      and March 31, 2000, respectively         (2,214)     (1,273)     (1,273)
     Accumulated other comprehensive
      income (loss)                             1,220      (4,343)     (4,558)
     Unearned ESOP                             (1,513)     (1,635)     (1,675)
     Unearned RRP                                (295)       (470)       (540)
        Total stockholders' equity             75,517      68,113      66,869
        Total liabilities and
         stockholders' equity                $670,660    $723,382    $719,816
 
 
     CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
     (Unaudited)                          Three months ended  Nine months ended
                                                March 31,         March 31,
                                              2001     2000     2001     2000
                                                  (Dollars in thousands)
     Total interest income                  $12,887  $12,181  $39,046  $35,486
     Total interest expense                   8,096    7,654   25,232   21,891
     Net interest income before provision     4,791    4,527   13,814   13,595
     Provision for loan losses                  150      159      445      399
     Net interest income after provision      4,641    4,368   13,369   13,196
     Noninterest income                       1,941    1,500    5,172    4,863
     Amortization of intangibles                235      243      719      738
     Other noninterest expense                4,277    3,817   12,243   11,731
     Earnings before taxes on income          2,070    1,808    5,579    5,590
     Taxes on income                            797      644    2,018    1,962
     Net earnings                            $1,273   $1,164   $3,561   $3,628
 
 
     FIRST FEDERAL BANKSHARES, INC and SUBSIDIARIES
     FINANCIAL HIGHLIGHTS
                                    At or for the three    At or for the nine
      (Unaudited)                          months                months
                                      ended March 31,       ended March 31,
                                       2001       2000       2001       2000
     Financial condition data:                (Dollars in thousands)
     Average interest-earning
      assets                         $659,254   $653,695   $669,191   $639,765
     Average interest-bearing
      liabilities                     614,761    617,447    625,996    601,487
     Net average earning assets        44,493     36,248     43,195     38,278
     Average interest-earning
      assets to average
      interest-bearing
      liabilities                      107.24%    105.87%    106.90%    106.36%
     Non-performing loans                                    $1,764     $1,488
     Non-performing assets                                   $1,894     $1,733
     Allowance for loan losses                               $3,672     $3,377
     Allowance for loan losses to
      total loans                                              0.89%      0.68%
     Non-performing loans to total
      loans                                                    0.43%      0.30%
     Non-performing assets to total
      assets                                                   0.28%      0.24%
     Shareholders' equity to assets                           11.26%      9.29%
 
                                      At or for the three    At or for the nine
                                             months                months
                                        ended March 31,       ended March 31,
     Selected operating data: (a)        2001       2000       2001       2000
     Return on average assets            0.72%      0.66%      0.66%      0.70%
     Return on average equity            6.94%      6.93%      6.68%      7.15%
     Net interest rate spread            2.55%      2.50%      2.50%      2.54%
     Net interest margin                 2.91%      2.77%      2.77%      2.83%
     Efficiency ratio (b)               63.53%     63.33%     64.48%     63.56%
 
     (a)  Annualized except for efficiency ratio
     (b)  Noninterest expense less amortization of excess of cost over fair
          value of assets acquired divided by the sum of net interest income
          before provision for loan losses plus noninterest income.
 
                                     At or for the three    At or for the nine
                                            months                months
                                        ended March 31,       ended March 31,
     Per share data:                     2001       2000       2001       2000
     Earnings per share:
        Basic                           $0.29      $0.26      $0.81      $0.79
        Diluted                         $0.29      $0.26      $0.80      $0.79
     Cash earnings per share: (c)
        Basic                           $0.34      $0.31      $0.97      $0.95
        Diluted                         $0.34      $0.31      $0.96      $0.95
     Book value per share              $16.46     $14.28     $16.46     $14.28
     Tangible book value per share     $12.28      $9.98     $12.28      $9.98
     Market price per share:
       High for the period            $11.250     $9.000    $11.250    $10.938
       Low for the period              $9.250     $7.500     $7.813     $7.500
       Close at end of period         $10.063     $7.750    $10.063     $7.750
     Cash dividends declared per
      share                            $0.080     $0.075     $0.240     $0.225
 
     Average number of shares
      outstanding (d)               4,378,154  4,483,497  4,422,966  4,587,830
 
     (c)  Cash earnings exclude amortization of excess of cost over fair
          value of assets acquired.
     (d)  Outstanding shares as defined in FASB 128 for computation of basic
          EPS.  Includes ESOP shares committed to be released and vested
          recognition and retention plan shares.
 
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SOURCE First Federal Bankshares, Inc.
    SIOUX CITY, Iowa, April 23 /PRNewswire Interactive News Release/ --
     First Federal Bankshares, Inc. (Nasdaq: FFSX) (the "Company") reported net
 earnings of $1.3 million, or diluted earnings per share of $.29, for the third
 fiscal quarter ended March 31, 2001.  This compares to earnings of
 $1.2 million, or diluted earnings per share of $.26, for the same quarter in
 2000 and earnings of $1.1 million, or diluted earnings per share of $.24, for
 the prior quarter ended December 31, 2000.  Net earnings for the nine months
 ended March 31, 2001 totaled $3.6 million, or diluted earnings per share of
 $.80, compared to net earnings of $3.6 million, or diluted earnings per share
 of $.79 for the nine months ended March 31, 2000.
     Net earnings increased by $109,000, or 9.4%, to $1.3 million for the three
 months ended March 31, 2001 from $1.2 million for the three months ended
 March 31, 2000.  Net interest income after provision for losses increased by
 $273,000, or 6.3%, for the three months ended March 31, 2001 as compared to
 the same period one year earlier due to an increase of 5 basis points in the
 Company's net interest margin to 2.55% for the quarter ended March 31, 2001
 from 2.50% for the quarter ended March 31, 2000.  In addition, the ratio of
 average interest-earning assets to average interest-bearing liabilities
 improved to 107.24% for the three months ended March 31, 2001 from 105.87% for
 the three months ended March 31, 2000.
     Noninterest income increased by $441,000, or 29.4%, to $1.9 million for
 the three months ended March 31, 2001 from $1.5 million for the three months
 ended March 31, 2000.  The increase in noninterest income was largely due to
 recognition of a net gain on the sale of securities that totaled $372,000 for
 the three months ended March 31, 2001.  In March 2001 the Company securitized
 $112.7 million of fixed-rate single-family mortgage loans and subsequently
 sold $49.0 million of the securities created by the loan securitization
 generating a net gain on the transaction of $384,000.  The increase in
 noninterest income was offset by an increase of $452,000, or 11.1%, in
 noninterest expense to $4.5 million for the three months ended March 31, 2001
 from $4.1 million for the three months ended March 31, 2000.  The increase in
 noninterest expense was partly due to expenses totaling $143,000 incurred in
 connection with the securitization of loans during the quarter.
     Net earnings totaled $3.6 million for each of the nine-month periods ended
 March 31, 2001 and 2000.  Net interest income after provision for losses
 increased by $173,000, or 1.3%, to $13.4 million for the nine months ended
 March 31, 2001 from $13.2 million for the nine months ended March 31, 2000.
 Noninterest income increased by $309,000, or 6.4%, to $5.2 million for the
 nine months ended March 31, 2001 from $4.9 million for the nine months ended
 March 31, 2000 largely due to the increase in gain on sale of securities.
 Noninterest expense increased by $493,000, or 4.0%, to $13.0 million for the
 nine months ended March 31, 2001 from $12.5 million for the nine months ended
 March 31, 2000.
     Total assets decreased by $52.7 million, or 7.3%, to $670.7 million at
 March 31, 2001 from $723.4 million at June 30, 2000.  The decrease in total
 assets was primarily due to the sale of $49.0 million of mortgage-backed
 securities and to a reduction in the Company's callable investment portfolio
 as issues were called in the generally lower market interest rate environment.
 Proceeds received from these sales and calls were used to repay short-term
 Federal Home Loan Bank borrowings.
     During the quarter ended March 31, 2001, the Company purchased
 5,000 shares of its common stock at an average cost of $10.625 per share under
 a stock repurchase program announced in December 2000.  Under the repurchase
 plan, the Company expects to repurchase up to 455,000 additional shares during
 calendar year 2001.
     Book value, or stockholders' equity, increased by $2.18, or 15.3%, to
 $16.46 per share at March 31, 2001 from $14.28 at March 31, 2000.
 Stockholders' equity to total assets was 11.26% and 9.29%, respectively, at
 March 31, 2001 and 2000.  The increase in stockholders' equity was partly due
 to a net unrealized gain totaling $1.2 million at March 31, 2001 in the
 Company's available-for-sale ("AFS") securities portfolio in the generally
 lower market interest rate environment.  In comparison, the Company reported a
 net unrealized loss of $4.6 million at March 31, 2000 in the AFS portfolio.
 The Company had 4,587,817 shares outstanding at March 31, 2001.
     On April 19, 2001, the Company's Board of Directors declared a quarterly
 dividend of $.08 per share, the same as distributed last quarter.  The
 dividend is payable on May 31, 2001 to stockholders of record on May 17, 2001.
     The Company's common stock is traded on the Nasdaq National Market under
 the symbol FFSX.  The Company is headquartered in Sioux City, Iowa.  First
 Federal Bank, the Company's bank subsidiary, operates ten offices in northwest
 Iowa, an office in South Sioux City, Neb., and six offices in central Iowa.
 
 
     FIRST FEDERAL BANKSHARES, INC and SUBSIDIARIES
     CONDENSED CONSOLIDATED BALANCE SHEETS
            (Unaudited)                       March 31,   June 30,    March 31,
                                                2001        2000        2000
     ASSETS                                        (Dollars in thousands)
     Cash and cash equivalents                $19,105     $20,167     $18,097
     Securities available-for-sale            163,099     117,326     118,820
     Securities held-to-maturity               21,095      23,737      28,377
     Loans receivable, net                    412,135     505,090     496,157
     Office property and equipment, net        14,894      15,315      15,484
     Federal Home Loan Bank stock, at cost      9,469       8,929       8,929
     Accrued interest receivable                4,575       4,800       4,771
     Excess of cost over fair value of
      assets acquired                          19,177      19,900      20,142
     Other assets                               7,111       8,118       9,039
        Total assets                         $670,660    $723,382    $719,816
     LIABILITIES
     Deposits                                 485,255     471,626     483,469
     Advances from Federal Home Loan Bank      99,911     174,020     160,941
     Advances by borrowers for taxes and
      insurance                                   940       2,828       1,203
     Accrued taxes on income                      138         293         792
     Accrued interest payable                   5,886       4,297       4,363
     Accrued expenses and other
      liabilities                               3,013       2,205       2,179
        Total liabilities                     595,143     655,269     652,947
     STOCKHOLDERS' EQUITY
     Common stock, $.01 par value                  48          48          48
     Additional paid-in capital                36,005      36,003      35,994
     Retained earnings, substantially
      restricted                               42,266      39,783      38,873
     Treasury stock, at cost - 249,875,
      144,050 and 144,050 shares at
      March 31, 2001, June 30, 2000
      and March 31, 2000, respectively         (2,214)     (1,273)     (1,273)
     Accumulated other comprehensive
      income (loss)                             1,220      (4,343)     (4,558)
     Unearned ESOP                             (1,513)     (1,635)     (1,675)
     Unearned RRP                                (295)       (470)       (540)
        Total stockholders' equity             75,517      68,113      66,869
        Total liabilities and
         stockholders' equity                $670,660    $723,382    $719,816
 
 
     CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
     (Unaudited)                          Three months ended  Nine months ended
                                                March 31,         March 31,
                                              2001     2000     2001     2000
                                                  (Dollars in thousands)
     Total interest income                  $12,887  $12,181  $39,046  $35,486
     Total interest expense                   8,096    7,654   25,232   21,891
     Net interest income before provision     4,791    4,527   13,814   13,595
     Provision for loan losses                  150      159      445      399
     Net interest income after provision      4,641    4,368   13,369   13,196
     Noninterest income                       1,941    1,500    5,172    4,863
     Amortization of intangibles                235      243      719      738
     Other noninterest expense                4,277    3,817   12,243   11,731
     Earnings before taxes on income          2,070    1,808    5,579    5,590
     Taxes on income                            797      644    2,018    1,962
     Net earnings                            $1,273   $1,164   $3,561   $3,628
 
 
     FIRST FEDERAL BANKSHARES, INC and SUBSIDIARIES
     FINANCIAL HIGHLIGHTS
                                    At or for the three    At or for the nine
      (Unaudited)                          months                months
                                      ended March 31,       ended March 31,
                                       2001       2000       2001       2000
     Financial condition data:                (Dollars in thousands)
     Average interest-earning
      assets                         $659,254   $653,695   $669,191   $639,765
     Average interest-bearing
      liabilities                     614,761    617,447    625,996    601,487
     Net average earning assets        44,493     36,248     43,195     38,278
     Average interest-earning
      assets to average
      interest-bearing
      liabilities                      107.24%    105.87%    106.90%    106.36%
     Non-performing loans                                    $1,764     $1,488
     Non-performing assets                                   $1,894     $1,733
     Allowance for loan losses                               $3,672     $3,377
     Allowance for loan losses to
      total loans                                              0.89%      0.68%
     Non-performing loans to total
      loans                                                    0.43%      0.30%
     Non-performing assets to total
      assets                                                   0.28%      0.24%
     Shareholders' equity to assets                           11.26%      9.29%
 
                                      At or for the three    At or for the nine
                                             months                months
                                        ended March 31,       ended March 31,
     Selected operating data: (a)        2001       2000       2001       2000
     Return on average assets            0.72%      0.66%      0.66%      0.70%
     Return on average equity            6.94%      6.93%      6.68%      7.15%
     Net interest rate spread            2.55%      2.50%      2.50%      2.54%
     Net interest margin                 2.91%      2.77%      2.77%      2.83%
     Efficiency ratio (b)               63.53%     63.33%     64.48%     63.56%
 
     (a)  Annualized except for efficiency ratio
     (b)  Noninterest expense less amortization of excess of cost over fair
          value of assets acquired divided by the sum of net interest income
          before provision for loan losses plus noninterest income.
 
                                     At or for the three    At or for the nine
                                            months                months
                                        ended March 31,       ended March 31,
     Per share data:                     2001       2000       2001       2000
     Earnings per share:
        Basic                           $0.29      $0.26      $0.81      $0.79
        Diluted                         $0.29      $0.26      $0.80      $0.79
     Cash earnings per share: (c)
        Basic                           $0.34      $0.31      $0.97      $0.95
        Diluted                         $0.34      $0.31      $0.96      $0.95
     Book value per share              $16.46     $14.28     $16.46     $14.28
     Tangible book value per share     $12.28      $9.98     $12.28      $9.98
     Market price per share:
       High for the period            $11.250     $9.000    $11.250    $10.938
       Low for the period              $9.250     $7.500     $7.813     $7.500
       Close at end of period         $10.063     $7.750    $10.063     $7.750
     Cash dividends declared per
      share                            $0.080     $0.075     $0.240     $0.225
 
     Average number of shares
      outstanding (d)               4,378,154  4,483,497  4,422,966  4,587,830
 
     (c)  Cash earnings exclude amortization of excess of cost over fair
          value of assets acquired.
     (d)  Outstanding shares as defined in FASB 128 for computation of basic
          EPS.  Includes ESOP shares committed to be released and vested
          recognition and retention plan shares.
 
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 SOURCE  First Federal Bankshares, Inc.