Home Financial Bancorp Announces Third Quarter Results

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Home Financial Bancorp Announces Third Quarter Results

SPENCER, Ind.--(BUSINESS WIRE)-- 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 third quarter and nine months ended March 31, 2013.

Third Quarter Highlights:

  • Net Interest Income declined 2%, or $19,000;
  • Provisions for loan losses decreased $82,000;
  • Non-interest income fell 15%, or $21,000;
  • Net income improved 25%, from $133,000 to $166,000.

Nine Month Highlights:

  • Total loans decreased 5%, or $2.9 million;
  • Non-performing loans decreased 31%, or $448,000;
  • Gain on sale of investments increased $91,000, to $138,000;
  • Repossessed property expense dropped 39%, or $49,000;
  • Net income improved 9%, from $386,000 to $422,000.

For the quarter ended March 31, 2013, the Company reported net income of $166,000 or $.13 earnings per share. For the same period last year, the Company reported net income of $133,000 or $.10 per share. Net income improved, compared to third quarter 2012 results, largely due to a reduction in provisions for loan losses.

Interest income was lower by $93,000 or 9%, while interest expense declined $74,000 or 31%. As a result, net interest income decreased $19,000, or 2% for the three months ended March 31, 2013, compared to the same period in 2012. Loan loss provisions for third quarter 2013 totaled $45,000. Loan loss provisions were $127,000 for the same period a year earlier.

A regular assessment of loan loss allowance adequacy indicated that these provisions were necessary to maintain an appropriate allowance level. Net loan losses totaled $13,000, compared to $78,000 for third quarter 2012. Changes in volume, composition and quality of the loan portfolio, as well as actual loan loss experience, will influence the need for future loss provisions.

Non-interest income totaled $116,000 for the third quarter 2013, compared to $137,000 a year earlier. Part of the difference is due to an increase in recognized loss associated with low-income housing investments. Also, income from service charges on deposit accounts decreased $11,000, or 14%.

Non-interest expense totaled $668,000, compared to $671,000 for the same period a year earlier. Salaries and employee benefits increased $14,000 or 4%, but was more than offset by decreases in computer processing fees, legal and professional fees, and repossessed property expense.

For the nine-month period ended March 31, 2013, the Company reported net income of $422,000 or $.32 earnings per share. Net income was $386,000 or $.29 earnings per share for the year-earlier period. Net income improved due to an increase in gain on sale of investment securities, and lower repossessed property expense.

Interest income decreased $243,000, or 8%, but was substantially offset by a $239,000, or 30%, reduction in interest expense. Consequently, net interest income before provisions for loan losses changed very little compared to the same period in 2012 and totaled $2.4 million.

Loan loss provisions decreased $19,000, or 7%, and totaled $245,000 for the nine-month period ended March 31, 2013. 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 totaled $239,000 during the first three quarters of fiscal 2013, compared to $289,000 for the year-earlier period.

Non-interest income increased $30,000, or 7%. Gain on sale of securities increased to $138,000, from $47,000. Partially offsetting this increase, service charges on deposit accounts declined $20,000, or 8%, and recognized loss on the Company's low-income housing investments increased $29,000, or 53%.

Non-interest expense increased $29,000, or 1%. Salaries and employee benefits increased $61,000, or 6%. Legal and professional fees rose $43,000, or 43%. Partially offsetting these, and other smaller changes, computer processing fees decreased $43,000, or 16%, and repossessed property expense, including net loss on sale of foreclosed property, fell $49,000 or 39%, to $76,000 for the nine-month period ended March 31, 2013.

At March 31, 2013, total assets were $75.4 million. Assets were $76.0 million nine months earlier. Cash and interest-bearing deposits totaled nearly $10.0 million. Investment securities available for sale were $7.4 million. Total loans decreased to $52.8 million, from $55.7 million at June 30, 2012.

Loans delinquent 90 days or more totaled $1.0 million, or 1.9% of total loans at March 31, 2013, and $1.4 million, or 2.6% of total loans at June 30, 2012. At March 31, 2013, non-performing assets were $1.6 million, or 2.1% of total assets, compared to $2.1 million, or 2.8% of total assets at June 30, 2012. Non-performing assets included $598,000 in Other Real Estate Owned ("OREO") and other repossessed properties at March 31, 2013, compared to $685,000 nine months earlier.

Loan loss allowances increased to $668,000 or 1.3% of total loans at March 31, 2013, compared to $663,000 or 1.2% of total loans at June 30, 2012. Management considered the level of loan loss allowances at March 31, 2013 to be adequate to cover estimated losses inherent in the loan portfolio at that date.

Deposits increased slightly; to $53.6 million as of March 31, 2013, from $53.4 million nine months earlier. Total borrowings declined $1.0 million, or 8%, to $12.0 million.

Shareholders' equity was $8.9 million, or 11.8% of total assets at March 31, 2013. Factors impacting shareholder equity during the first three quarters of fiscal 2013 included net income, three quarterly cash dividends totaling $.09 per share, $89,000 net decrease in unrealized gain on securities available for sale, and a $24,000 decrease in costs associated with a stock-based employee benefit plan. During the nine months ended March 31, 2013, the Company repurchased 31,183 shares of its stock through a tender offer for holders of 1,000 or fewer shares. At March 31, 2013, the Company's book value per share was $6.80 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 BANCORP

Consolidated Financial Highlights

(Unaudited)

(Dollars in thousands, except per share and book value amounts)

 

FOR THREE MONTHS ENDED MARCH 31:

   

2013

  

2012

Net Interest Income$816$835
Provision for Loan Losses45127
Non-interest Income116137
Non-interest Expense668671
Income Tax5341
Net Income166133
 
Basic and Diluted Earnings Per Share:$ .13$.10
Average Shares Outstanding - Basic1,292,6371,317,901
Average Shares Outstanding - Diluted1,294,4421,317,901
 

FOR NINE MONTHS ENDED MARCH 31:

2013

2012

Net Interest Income$2,447$2,452
Provision for Loan Losses245264
Non-interest Income476446
Non-interest Expense2,1452,116
Income Tax111132
Net Income422386
 
Basic and Diluted Earnings Per Share:$ .32$ .29
Average Shares Outstanding - Basic1,306,0971,316,806
Average Shares Outstanding - Diluted1,308,3591,316,806
 

March 31,

June 30,

2013

2012

Total Assets$75,374$76,014
Total Loans52,83555,711
Allowance for Loan Losses668663
Total Deposits53,56953,346
Borrowings12,00013,000
Shareholders' Equity8,8818,798
 
Non-Performing Assets1,5982,133
Non-Performing Loans1,0001,448
 
Non-Performing Assets to Total Assets2.12%2.81%
Non-Performing Loans to Total Loans1.892.60
 
Book Value Per Share*$6.80$6.58
 

*Based on 1,306,185 shares at March 31, 2013 and 1,337,368 shares at June 30, 2012.



Home Financial Bancorp
Kurt D. Rosenberger, 812-829-2095

KEYWORDS:   United States  North America  Indiana

INDUSTRY KEYWORDS:

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