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

August 07, 2009 | About:
insider

NASB Financial Inc. (NASB) filed Quarterly Report for the period ended 2009-06-30.

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 $221.8 million; its shares were traded at around $28.2 with a P/E ratio of 17.1 and P/S ratio of 1.9. The dividend yield of NASB Financial Inc. stocks is 3.2%. NASB Financial Inc. had an annual average earning growth of 6% over the past 5 years.

Highlight of Business Operations:



June 30, September 30,

2009 2008

(Unaudited)

- -



ASSETS

Cash and cash equivalents $ 12,862 21,735

Securities available for sale, at

fair value 80,004 35

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

Mortgage-backed securities:

Available for sale, at fair value 48,131 59,889

Held to maturity, at cost 123 135

Loans receivable:

Held for sale, at fair value at

June 30, 2009, and at lower

of amortized cost or fair value

at September 30, 2008 119,930 64,030

Held for investment, net 1,273,950 1,294,297

Allowance for loan losses (16,229) (13,807)

Accrued interest receivable 6,986 6,886

Foreclosed assets held for sale, net 12,037 6,038

Premises and equipment, net 13,651 14,599

Investment in LLCs 21,105 20,683

Mortgage servicing rights, net 445 716

Deferred income tax asset, net 4,952 6,293

Other assets 10,543 8,948

- -

$ 1,615,130 1,516,761

= =

LIABILITIES AND STOCKHOLDERS\' EQUITY

Liabilities:

Customer deposit accounts $ 693,426 691,615

Brokered deposit accounts 246,749 77,764

Advances from Federal Home Loan Bank 467,042 550,091

Subordinated debentures 25,774 25,774

Escrows 8,074 9,776

Income taxes payable 2,562 4,002

Liability for unrecognized tax benefit 850 850

Accrued expenses and other liabilities 8,716 4,477

- -

Total liabilities 1,453,193 1,364,349

- -



Interest on customer and brokered

deposit accounts 6,246 7,169 19,543 23,980

Interest on advances from FHLB 3,920 5,866 13,212 18,697

Interest on subordinated debentures 173 295 709 1,071

- - - -

Total interest expense 10,339 13,330 33,464 43,748

- - - -

Net interest income 12,188 9,858 33,776 28,999

Provision for loan losses 4,000 1,600 5,250 3,000

- - - -

Net interest income after provision

for loan losses 8,188 8,258 28,526 25,999

- - - -

Other income (expense):

Loan servicing fees, net 112 172 (120) 51

Impairment (loss) recovery on mortgage

servicing rights (11) (36) 30 23

Customer service fees and charges 2,127 1,448 5,264 4,166

Provision for loss on real estate owned - (400) (250) (1,250)

Gain on sale of securities available

for sale 548 - 548 122

Gain from sale of loans receivable

held for sale 9,170 4,251 19,415 9,956

Other 796 1,337 2,284 1,382

- - - -

Total other income 12,742 6,772 27,171 14,450

- - - -

General and administrative expenses:

Compensation and fringe benefits 5,094 4,136 13,221 11,748

Commission-based mortgage banking compensation 4,695 2,214 10,318 5,741

Premises and equipment 928 1,004 2,991 3,113

Advertising and business promotion 1,079 1,144 3,473 3,106

Federal deposit insurance premiums 843 23 914 70

Other 1,393 1,387 4,258 3,913

- - - -

Total general and administrative expenses 14,032 9,908 35,175 27,691

- - - -

Income before income tax expense 6,898 5,122 20,522 12,758

Income tax expense 2,656 1,512 7,901 4,473

- - - -

Net income $ 4,242 3,610 12,621 8,285

= = = =

Basic earnings per share $ 0.54 0.46 1.60 1.05

= = = =

Diluted earnings per share $ 0.54 0.45 1.60 1.04

= = = =





-

Less Than 12 Months 12 Months or Longer

- -

Estimated Gross Estimated Gross

fair unrealized fair unrealized

value losses value losses

-

Pass-through certificates

guaranteed by FNMA -

adjustable rate $ 6,289 16 $ - -

FHLMC participation

certificates -

adjustable rate 17,894 40 - -

-

Total $ 24,183 56 $ - -

=





June 30,

2009

-

(Dollars in thousands)

LOANS HELD FOR SALE:

Mortgage loans:

Permanent loans on:

Residential properties $ 178,007

Less:

Undisbursed loan funds (58,077)

-

Net loans held for sale $ 119,930

=



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 in accordance with GAAP, which

requires 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 an increase in other assets of $288,000, a decrease in other

liabilities of $17,000, and an increase in other income of $304,000 for

the quarter ended June 30, 2009. The Company recorded a decrease in

other assets of $21,000, an increase in other liabilities of $104,000,

and a decrease in other income of $125,000 for the nine month period

ended June 30, 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 $484,000, an

increase in other liabilities of $93,000, and an increase in other

income of $390,000 during the quarter ended June 30, 2009. The Company

recorded an increase in other assets of $1.9 million, a decrease in

other liabilities of $356,000, and an increase in other income of $2.2

million during the nine month period ended June 30, 2009.



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