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GRANDVIEW, Mo.--([ BUSINESS WIRE ])--NASB Financial, Inc. (the aCompanya) (NASDAQ: NASB) announced today that its subsidiary institution, North American Savings Bank, F.S.B. (the aBanka) has agreed to a Consent Order with the Office of the Comptroller of the Currency (aOCCa), the Bankas primary regulator. This Consent Order replaces and terminates the previous Supervisory Agreement the Bank had entered with the Office of Thrift Supervision (aOTSa), the Bankas previous federal regulator.

"These challenges have certainly been, and will be, considerable; however, our continued strong core earnings and capital levels provide us the tools to successfully manage our way to more robust economic times."

Pursuant to Title III of the Dodda"Frank Wall Street Reform and Consumer Protection Act of 2010, all supervisory functions of OTS relating to federal savings associations were transferred to the OCC on July 21, 2011. As a result, the OCC assumed the responsibility for ongoing supervision and regulation of the Bank. The legislation continued all OTS agreements, regulations, guidelines, procedures, and other advisory materials in effect the day before the transfer date, and allowed the OCC to administer these documents until the documents were modified, terminated, set aside, or superseded by the OCC.

The Consent Order requires, like the Supervisory Agreement that it replaces, that the Bank establish various plans and programs to improve the asset quality of the Bank and to ensure the adequacy of allowances for loan and lease losses. The Consent Order also requires the Bank to obtain an independent assessment of its allowance for loan and lease losses methodology, to conduct independent third-party reviews of its commercial and construction loan portfolios and to enhance its credit administration systems.

Among other items, it also requires that the Bankas written capital maintenance plan will contain objectives that ensure the Bankas Tier 1 leverage capital remains equal to or greater than 10% of adjusted total assets and that the Bankas risk-based capital remains equal to or greater than 13% of risk-weighted assets. As of March 31, 2012, the most recent quarter-end, the Bankas actual Tier 1 leverage ratio and risk-based capital ratio were well above these levels at 13.5% and 16.5%, respectively.

The Bankas Chairman and CEO, David Hancock, said, aThe Bank's capital ratios are significantly above regulatory minimums outlined in the Consent Order and our board and senior management are committed to actively addressing the issues outlined in the agreement.a

The Consent Order does not direct the Bank to raise capital, make management or board changes, or restrict lending.

aLike many financial institutions throughout the country, North American assets are concentrated in real estate, which continues to be a challenging environment,a said Hancock. aThese challenges have certainly been, and will be, considerable; however, our continued strong core earnings and capital levels provide us the tools to successfully manage our way to more robust economic times.a

The Bank will continue to serve its customers in all areas, and all customer deposits remain fully insured to the highest limits set by the FDIC.