NASB Rode K.C. Housing Market to Higher Profit

Quarterly profit rose at NASB Financial (NASB) in Grandview, Mo., on stronger credit quality and noninterest income.

The $1.2 billion-asset company reported Thursday a first-quarter profit of $11 million, compared with $375,000 in the same period of 2012. The main driver of the improvement was a $5.6 million credit that came from loan-loss reserves, compared with a $5 million provision in the prior-year period.

Reductions in NASB's troubled assets and improvements in the Kansas City housing market, where the company's construction and development loans are concentrated, prompted the credit, the company said.

NASB's noninterest income more than doubled to $19 million. Net interest income fell 10%, to $10.9 million, as NASB's total loans and mortgage-backed securities declined 20%, to $794.2 million.

NASB is the parent of North American Savings Bank, which promoted former Chief Credit Officer Paul Thomas to chief executive last month.

North American Savings Bank is under a consent order with the Office of the Comptroller of the Currency requiring it to have a Tier 1 leverage ratio of 10% and a total risk-based capital ratio of 13%. Those ratios were 16.5% and 20.7%, respectively, as of March 31, NASB said Thursday.