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.
- 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.
Non-interest income jumped $45,000 or 34%, to $178,000 for the quarter. Gain on sale of securities totaled $65,000. No gains on sale of securities were reported for the year-earlier period. Total non-interest expense for second quarter 2013 fell $10,000 or 1%, compared to the same period a year ago. Repossessed property expense decreased $37,000 or 50%. Salaries and employee benefit expense increased $33,000 or 10%.For the six-month period ended December 31, 2012, the Company reported net income of $256,000, or $.20 basic and $.19 diluted earnings per share. Net income was $254,000, or $.19 basic and diluted earnings per share for the six months ended December 31, 2011. Gain on sale of securities, and lower repossessed property expense, offset the impact of higher loan loss provisions plus higher legal and professional fees; resulting in net income comparable to the same six-month period a year earlier. Net interest income was $1.6 million for both six-month periods ending December 31, 2012 and 2011. Interest income fell $150,000 or 7%, but was more than offset by a $165,000 or 30% drop in interest expense. Loan loss provisions were $200,000 for the six-month period ended December 31, 2012, compared to $137,000 a year earlier. Loan loss provisions reflect management’s assessment of various risk factors including, but not limited to, the level and trend of loan delinquencies and losses. Net loan losses for the six months ended December 31, 2012 increased to $227,000, compared to $210,000 for the six months ended December 31, 2011. Non-interest income was $356,000 for the first half of fiscal 2013, compared to $310,000 for the year-earlier period. Gain on sale of securities increased $84,000, to $121,000. Non-interest expense increased $28,000 or 2%. Repossessed property expense, including net loss on sale of foreclosed property, dropped $43,000 or 44%, to $55,000 for the six-month period ended December 31, 2012. Legal and professional fees increased $51,000 or 64% to $130,000.
At December 31, 2012, total assets decreased 4%, to $73.4 million, compared to $76.0 million at June 30, 2012. Investments available for sale declined less than 1% and totaled $7.4 million. Loans fell $2.1 million or 4%, to $53.6 million.Loans delinquent 90 days or more totaled $1.1 million or 2.0% of total loans at December 31, 2012, compared to $1.4 million or 2.6% of total loans at June 30, 2012. At December 31, 2012, non-performing assets were $1.7 million or 2.3% of total assets, compared to $2.1 million or 2.8% of total assets at June 30, 2012. Non-performing assets included $592,000 in Other Real Estate Owned (“OREO”) and other repossessed properties at December 31, 2012, compared to $685,000 six months earlier. Loan loss allowances were $634,000 or 1.18% of total loans at December 31, 2012, compared to $660,000 or 1.18% of total loans at June 30, 2012. Management considered the level of loan loss allowances at December 31, 2012 to be adequate to cover estimated losses inherent in the loan portfolio at that date. Deposits decreased $1.7 million or 3%, to $51.7 million as of December 31, 2012. Total borrowings were reduced to $12.0 million, from $13.0 million at June 30, 2012. Shareholders’ equity was $8.8 million or 12.0% of total assets at December 31, 2012. Factors impacting shareholder equity during the first half of fiscal 2013 included net income, two quarterly cash dividends totaling $.06 per share, $82,000 net decrease in unrealized gain on securities available for sale, and a $16,000 decrease in costs associated with a stock-based employee benefit plan. During the six months ended December 31, 2012, the Company repurchased 31,183 shares of its stock through a tender offer for holders of 1,000 or fewer shares which concluded in November, 2012. At December 31, 2012, the Company’s book value per share was $6.70 based on 1,306,185 shares outstanding.
Home Financial Bancorp and Our Community Bank, an FDIC-insured, Indiana stock commercial bank, operate from headquarters in Spencer, Indiana, and a branch office in Cloverdale, Indiana. Additional information concerning Home Financial Bancorp and its subsidiaries is available at www.hfbancorp.com or www.ocbconnect.com.
|HOME FINANCIAL BANCORPConsolidated Financial Highlights(Unaudited)(Dollars in thousands, except per share and book value amounts)|
|FOR THREE MONTHS ENDED DECEMBER 31:||2012||2011|
|Net Interest Income||$817||$821|
|Provision for Loan Losses||125||92|
|Basic Earnings Per Share:||$.09||$.08|
|Diluted Earnings Per Share:||$.09||$.08|
|Average Shares Outstanding - Basic||1,306,966||1,315,224|
|Average Shares Outstanding - Diluted||1,309,658||1,315,224|
|FOR SIX MONTHS ENDED DECEMBER 31:||2012||2011|
|Net Interest Income||$1,632||$1,617|
|Provision for Loan Losses||200||137|
|Basic Earnings Per Share:||$.20||$.19|
|Diluted Earnings Per Share:||$.19||$.19|
|Average Shares Outstanding - Basic||1,312,640||1,316,240|
|Average Shares Outstanding - Diluted||1,315,130||1,316,240|
|December 31,||June 30,|
|Allowance for Loan Losses||636||663|
|Non-Performing Assets to Total Assets||2.30||%||2.81||%|
|Non-Performing Loans to Total Loans||2.03||2.60|
|Book Value Per Share*||$6.70||$6.58|