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NASB Financial Inc. Reports Operating Results (10-Q)

May 08, 2009 | About:
10qk

NASB Financial Inc. (NASB) filed Quarterly Report for the period ended 2009-03-31.

NASB Financial Inc. is a unitary thrift holding company of North American Savings Bank F.S.B. NASB Financial Inc. has a market cap of $176 million; its shares were traded at around $22.35 with a P/E ratio of 15.9 and P/S ratio of 1.5. The dividend yield of NASB Financial Inc. stocks is 4.1%. NASB Financial Inc. had an annual average earning growth of 6% over the past 5 years.

Highlight of Business Operations:



March 31, September 30,

2009 2008

(Unaudited)

- -



ASSETS

Cash and cash equivalents $ 9,668 21,735

Securities available for sale, at

fair value 36,925 35

Stock in Federal Home Loan Bank, at cost 26,640 26,284

Mortgage-backed securities:

Available for sale, at fair value 51,762 59,889

Held to maturity, at cost 126 135

Loans receivable:

Held for sale, at fair value at

March 31, 2009, and at lower

of amortized cost or fair value

at September 30, 2008 71,688 64,030

Held for investment, net 1,298,176 1,294,297

Allowance for loan losses (13,050) (13,807)

Accrued interest receivable 6,603 6,886

Foreclosed assets held for sale, net 9,901 6,038

Premises and equipment, net 13,970 14,599

Investment in LLCs 21,059 20,683

Mortgage servicing rights, net 416 716

Deferred income tax asset, net 6,049 6,293

Other assets 9,815 8,948

- -

$ 1,549,748 1,516,761

= =

LIABILITIES AND STOCKHOLDERS' EQUITY

Liabilities:

Customer deposit accounts $ 712,983 691,615

Brokered deposit accounts 153,967 77,764

Advances from Federal Home Loan Bank 479,059 550,091

Subordinated debentures 25,774 25,774

Escrows 7,342 9,776

Income taxes payable 3,201 4,002

Liability for unrecognized tax benefit 850 850

Accrued expenses and other liabilities 8,883 4,477

- -

Total liabilities 1,392,059 1,364,349

- -



Interest on customer and brokered

deposit accounts 6,398 8,198 13,297 16,811

Interest on advances from FHLB 4,131 6,419 9,292 12,831

Interest on subordinated debentures 223 345 536 776

- - - -

Total interest expense 10,752 14,962 23,125 30,418

- - - -

Net interest income 11,006 9,052 21,588 19,141

Provision for loan losses 1,000 700 1,250 1,400

- - - -

Net interest income after provision

for loan losses 10,006 8,352 20,338 17,741

- - - -

Other income (expense):

Loan servicing fees, net (20) (69) (232) (123)

Impairment recovery on mortgage

servicing rights 18 24 41 61

Customer service fees and charges 1,740 1,423 3,137 2,718

Provision for loss on real estate owned - (300) (250) (850)

Gain on sale of securities available

for sale - 122 - 122

Gain from sale of loans receivable

held for sale 5,502 4,103 10,245 5,705

Other 1,990 87 1,488 45

- - - -

Total other income 9,230 5,390 14,429 7,678

- - - -

General and administrative expenses:

Compensation and fringe benefits 4,266 3,872 8,127 7,612

Commission-based mortgage banking compensation 3,435 2,062 5,623 3,527

Premises and equipment 1,096 1,046 2,063 2,109

Advertising and business promotion 1,098 934 2,394 1,962

Federal deposit insurance premiums 37 24 71 47

Other 1,612 1,207 2,865 2,526

- - - -

Total general and administrative expenses 11,544 9,145 21,143 17,783

- - - -

Income before income tax expense 7,692 4,597 13,624 7,636

Income tax expense 2,961 1,791 5,245 2,961

- - - -

Net income $ 4,731 2,806 8,379 4,675

= = = =

Basic earnings per share $ 0.60 0.36 1.06 0.59

= = = =

Diluted earnings per share $ 0.60 0.35 1.06 0.59

= = = =





Balance at October 1, 2008 $ 13,807

Provisions 1,250

Charge-offs (2,011)

Recoveries 4

-

Balance at March 31, 2009 $ 13,050

=





Balance at October 1, 2008 $ 716

Additions:

Impairment recovery 41

Reductions:

Amortization (341)

-

Balance at March 31, 2009 $ 416

=



The Company has commitments outstanding to extend credit that have

not closed prior to the end of the period. As the Company enters into

commitments to originate loans, it also enters into commitments to sell

the loans in the secondary market on a best-efforts basis. Such

commitments to originate and sell loans on a best efforts basis are

considered derivative instruments under Statement of Financial

Accounting Standards ("SFAS") No. 133, "Accounting for Derivative

Instruments and Hedging Activities," as amended by SFAS No. 138 and SFAS

No. 149. These statements require the Company to recognize all

derivative instruments in the balance sheet and to measure those

instruments at fair value. As a result of marking to market

commitments to originate loans, the Company recorded a decrease in other

assets of $354,000, an increase in other liabilities of $94,000, and a

decrease in other income of $448,000 for the quarter ended March 31,

2009. The Company recorded a decrease in other assets of $309,000, an

increase in other liabilities of $120,000, and a decrease in other

income of $429,000 for the six month period ended March 31, 2009.



Additionally, the Company has commitments to sell loans that have

closed prior to the end of the period on a best efforts basis. Due to

the mark to market adjustment on commitments to sell loans held for

sale, the Company recorded an increase in other assets of $1.4 million,

a decrease in other liabilities of $916,000, and an increase in other

income of $2.3 million during the quarter ended March 31, 2009. The

Company recorded an increase in other assets of $1.4 million, a decrease

in other liabilities of $449,000, and an increase in other income of

$1.9 million sale during the six month period ended March 31, 2009.



Read the The complete Report

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