NASB NASB Financial Inc (QX)

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