North Central Bancshares, Inc. Announces Preliminary Results for First Quarter 2009

North Central Bancshares, Inc. Announces Preliminary Results for First Quarter
2009

FORT DODGE, Iowa, May 11 /PRNewswire-FirstCall/ -- North Central Bancshares,
Inc. (the "Company") (Nasdaq: FFFD), the holding company for First Federal
Savings Bank of Iowa (the "Bank"), announced today that the Company's diluted
earnings per share for the quarter ended March 31, 2009 was $0.49, compared to
diluted earnings per share of $0.60 for the quarter ended March 31, 2008. The
decrease in earnings per share was due to a decrease in net income available
to common shareholders primarily due to preferred stock dividends. The
Company's net income was $782,000 for the quarter ended March 31, 2009,
compared to $804,000 for the quarter ended March 31, 2008. The decrease in
net income was primarily due to an increase in other expenses (as described
below) and provision for loan losses, offset in part by an increase in net
interest income.

Net interest income for the quarter ended March 31, 2009 was $3.40 million,
compared to net interest income of $3.19 million for the quarter ended March
31, 2008. The increase in net interest income was primarily due to a decrease
in the cost of interest-bearing liabilities offset in part by a decrease in
the average balance of interest-earning assets. The net interest spread (the
difference in the average yield on assets and average cost of liabilities)
increased to 2.81% for the quarter ended March 31, 2009 from 2.46% for the
quarter ended March 31, 2008.

The Company's provision for loan losses was $160,000 and $60,000 for the
quarters ended March 31, 2009 and 2008, respectively. 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 Company's noninterest income was $1.84 million and $1.70 million for the
quarters ended March 31, 2009 and 2008, respectively. The increase in
noninterest income was primarily due to increases in mortgage banking income
and other income, offset in part by decreases in fees and service charges and
abstract fees. During the quarter ended March 31, 2009, the Company recorded
$315,000 in mortgage banking income, an increase of $154,000 compared to
$161,000 in mortgage banking income for the quarter ended March 31, 2008.
Other income increased by $107,000 to $371,000 for the quarter ended March 31,
2009, compared to $264,000 for the quarter ended March 31, 2008. The increase
in other income was primarily due to an increase in income from the sale of
annuities and a decrease in costs related to other real estate owned.

The Company's noninterest expense was $3.95 million and $3.74 million for the
quarters ended March 31, 2009 and 2008, respectively. The increase in
noninterest expense was primarily due to an increase in other expenses. Other
expenses increased $299,000 primarily due to increases in legal fees, other
professional fees and FDIC insurance expense.

The Company's provision for income taxes was $354,000 and $291,000 for the
quarters ended March 31, 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.

Total assets at March 31, 2009 were $478.6 million, compared to $473.3 million
at December 31, 2008. Net loans decreased by $6.5 million, or 1.62%, to
$394.3 million at March 31, 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, commercial real estate and consumer loans. At March 31, 2009,
net loans consisted of (i) $164.8 million of one-to-four family real estate
representing a decrease of $5.5 million from December 31, 2008, (ii) $97.5
million of commercial real estate loans representing an increase of $1.8
million from December 31, 2008, (iii) $56.5 million of multi-family real
estate loans representing a decrease of $1.0 million from December 31, 2008,
and (iv) $75.5 million of consumer loans representing a decrease of $1.8
million from December 31, 2008. Cash and cash equivalents increased $9.9
million, or 60.6%, to $26.2 million at March 31, 2009, compared to $16.3
million at December 31, 2008. The increase in cash and cash equivalents was
primarily due to the sale of cumulative preferred stock and warrants to the
United Sates Department of the Treasury (the "Treasury") through the Capital
Purchase Program, as described below. The increase in securities
available-for-sale was primarily due to the purchase of $3.8 million of
mortgage backed securities during the quarter ended March 31, 2009.

Deposits increased $300,000, or 0.09%, to $350.5 million at March 31, 2009,
from $350.2 million at December 31, 2008. When excluding brokered deposits,
deposits increased $11.1 million, or 3.17% at March 31, 2009 compared to
December 31, 2008. Borrowed funds decreased $4.5 million, or 5.5%, to $77.8
million at March 31, 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 $46.3 million at March 31, 2009, compared to $35.2
million at December 31, 2008. Book value, or stockholders' equity per common
share, was $26.87 at March 31, 2009, compared to $26.21 at December 31, 2008.
The ratio of stockholders' equity to total assets was 9.67% at March 31, 2009,
compared to 7.44% at December 31, 2008.

As previously announced, on January 9, 2009 the Company completed the sale of
$10.2 million in preferred stock and related warrants to the Treasury through
the Capital Purchase Program. Under the terms of the transaction, the Company
issued 10,200 shares of cumulative preferred stock and a warrant to purchase
99,157 shares of common stock at an exercise price of $15.43 per share. The
cumulative preferred stock bears an annualized dividend rate of 5 percent for
the first five years it is outstanding, after which the dividend will increase
to 9 percent. Although the Bank would have remained "well capitalized" without
these funds, this equity investment will further increase the capacity to
support economic activity and growth in each of the communities served by the
Bank through responsible lending.

All common stockholders of record on March 13, 2009, received a quarterly cash
dividend of $0.01 per common share on April 3, 2009. In addition, on February
15, 2009 the Company paid an aggregate cash dividend of $51,000 on the
cumulative preferred stock issued to the Treasury. As of March 31, 2009, the
Company had 1,343,448 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.

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) March 31, 2009 December 31, 2008
-------------- -----------------
Assets
Cash and cash equivalents $26,150 $16,282
Securities
available-for-sale 29,969 27,530
Loans (net of allowance
for loan loss of $5,425
and $5,379, respectively) 394,285 400,787
Other assets 28,152 28,699
------ ------

Total assets $478,556 $473,298
======== ========
Liabilities
Deposits $350,475 $350,170
Other borrowed funds 77,841 82,349
Other liabilities 3,948 5,567
Total liabilities ----- -----
432,264 438,086

Stockholders' equity 46,292 35,212
------ ------

Total liabilities and
stockholders' equity $478,556 $473,298
========== ==========

Stockholders' equity to
total assets 9.67% 7.44%
===== =====

Book value per common
share $26.87 $26.21
======= =======

Total shares of common
stock outstanding 1,343,448 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
Ended March 31,
2009 2008

Interest income $6,466 $7,488
Interest expense 3,068 4,293
----- -----
Net interest income 3,398 3,195
Provision for loan loss 160 60
--- --
Net interest income after
provision for loan loss 3,238 3,135
Noninterest income 1,845 1,704
Noninterest expense 3,947 3,744
----- -----
Income before income taxes 1,136 1,095
Income taxes 354 291
--- ---
Net income $782 $804
==== ====

Preferred stock dividends and
accretion of discount 119 -
--- ---
Net income available to common
shareholders 663 804
=== ===

Basic earnings per common share $0.49 $0.60
===== =====
Diluted earnings per common share $0.49 $0.60
========= =========

For the Three Months
Selected Financial Ratios Ended March 31,
2009 2008
Performance ratios
Net interest spread 2.81% 2.46%
Net interest margin 3.04% 2.68%
Return on average assets 0.65% 0.63%
Return on average equity 6.95% 7.79%

March 31, March 31,
2009 2008
Capital ratios (First Federal Savings
Bank of Iowa)
Tangible* 8.78% 7.03%
Core* 8.78% 7.03%
Risk-based* 13.42% 10.50%

*Exceeds regulatory definition of "well capitalized"

SOURCE North Central Bancshares, Inc.

David M. Bradley, Chairman, President and Chief Executive Officer of North
Central Bancshares, Inc., +1-515-576-7531