NASB Financial Inc. reported a 76 percent drop in first-quarter earnings Friday but also paid its first dividend to shareholders since 2010.
By MARK DAVIS
The Kansas City Star
The parent company for Grandview-based North American Savings Bank earned $2 million, or 25 cents a share, in the last three months of 2013. Its fiscal year began Oct. 1.
A year ago, NASB earned $8.3 million in the same quarter, equal to $1.06 per share. The year-ago profit was inflated partly by $4 million the company retrieved from reserves previously set aside for potential loan losses. An improving housing market allowed it to operate with a smaller reserve.
NASB said its most recent quarter’s earnings suffered from a reduction of $1.7 million in the value of loans it plans to sell. Their value fell as mortgage rates rose after the company locked in the rates that borrowers would pay. Prices that buyers of the loans would pay also were already locked in, NASB said.
Earnings also were lower because the company had nearly 20 percent less in loans and securities backed by loans among its earning assets than a year earlier.
NASB said it paid a special dividend of 60 cents a share, or $4.7 million, to owners of its shares as of Jan. 3, with the payment made on Jan. 17.
The company said its board of directors would “consider some level of quarterly cash dividend” but could not pay dividends until it received approval from regulators. The last NASB dividend, 22.5 cents, was paid in February 2010.
Shares in NASB closed Friday at $25.84, down 48 cents.
To reach Mark Davis, call 816-234-4372 or send email to firstname.lastname@example.org.