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Home Financial Bancorp (“Company”) (OTCQB Symbol “HWEN”), an Indiana corporation which is the holding company for Our Community Bank, (“Bank”) based in Spencer, Indiana, announces results for the second quarter and six months ended December 31, 2012.
Second Quarter Highlights:
Provisions for loan losses increased $33,000 or 36%;
Net loan losses rose from $140,000 to $185,000;
Gain on sale of securities increased $65,000;
Net income improved 17% to $117,000.
Six Month Highlights:
Shareholders’ equity totaled $8.8 million, or 12% of total assets;
Total loans decreased $2.1 million or 4%;
Net income edged up 1% to $256,000.
For the quarter ended December 31, 2012, the Company reported net income of $117,000, or $.09 basic and diluted earnings per share. Net income was $100,000 or $.08 basic and diluted earnings per share for the quarter ended December 31, 2011. Second quarter 2013 net income improved, compared to a year earlier, due to net gains on sale of securities.
Net interest income declined less than 1%, and totaled $817,000. Interest income fell $87,000 or 8%, but was substantially offset by an $82,000 or 31% decline in interest expense. Net interest margin for the quarter was 4.74%, compared to 4.62% for the same period a year earlier. Extremely low interest rates continued to bring down overall funding costs and reduce available investment returns.
Loan loss provisions were $125,000 and $92,000 for the quarters-ended December 31, 2012 and 2011, respectively. A regular assessment of loan loss allowance adequacy indicated that these provisions were necessary to maintain an appropriate allowance level. Changes in volume, composition and quality of the loan portfolio, as well as actual loan loss experience, influences the need for future loan loss provisions. Net loan losses during second quarter 2013 totaled $185,000, compared to $140,000 for second quarter 2012.