Home Financial Bancorp Announces Fourth Quarter and Year-End Results

Home Financial Bancorp Announces Fourth Quarter and Year-End Results

SPENCER, Ind.--(BUSINESS WIRE)-- Home Financial Bancorp ("Company") (OTCQB: HWEN), an Indiana corporation which is the holding company for Our Community Bank, ("Bank") based in Spencer, Indiana, announces unaudited results for the fourth quarter and twelve months ended June 30, 2013.


Fourth Quarter Highlights:

  • Provisions for loan losses decreased $54,000;
  • Net interest income fell 4%, or $36,000;
  • Non-interest expense increased 3%, or $21,000;
  • Net income was nearly unchanged at $126,000.

Twelve Month Highlights:

  • Shareholders' equity was $8.3 million, or 11.3% of total assets;
  • Provisions for loan losses decreased 21%, or $72,000;
  • Non-interest income increased 10%, or $62,000;
  • Non-interest expense rose 3%, or $79,000;
  • Net income improved 7% to record high $549,000.

For the quarter ended June 30, 2013, the Company reported $126,000, or $.10 basic and diluted earnings per common share. For the same period last year, the Company reported net income of $127,000, or $.10 basic and diluted earnings per common share. Lower interest income was offset by a combination of lower interest expense and smaller loan loss provisions; resulting in fourth quarter net income similar to the same period a year earlier.

Net interest income before provisions for loan losses declined $36,000 or 4% for the three months ended June 30, 2013, compared to fourth quarter 2012. Interest income for the quarter was down $94,000, but was partially offset by a $58,000, or 26% drop in interest expense.

Provisions for loan losses were $25,000 during fourth quarter 2013, compared to $79,000 for the same period a year earlier. Net loan losses totaled $31,000, compared to $56,000 a year ago. A regular analysis of the allowance for loan losses indicated the reserve was adequate at June 30, 2013. This analysis included reviewing changes in volume, composition and quality of the loan portfolio, as well as actual loan loss experience.

Non-interest income was $140,000, compared to $137,000 for the year-earlier period. Non-interest expense increased $21,000 or 3%. Contributing to the net change, salaries and employee benefits increased $35,000 or 12%, while legal and professional fees increased $16,000 or 73%.

For the twelve-month period ended June 30, 2013, the Company reported record net income of $549,000. This represents a $36,000 or 7% profit increase, to $.42 basic and diluted earnings per common share, compared to $513,000 or $.39 basic and diluted earnings per common share for fiscal 2012. Reduction in loan loss provisions and increased gain on sale of investments helped improve net earnings in 2013.

Net interest income before the provision for loan losses decreased $39,000 to $3.2 million for 2013. Interest income decreased $336,000 or 8%, but was nearly matched by a $297,000 or 29% decline in interest expense for the year. Loan loss provisions decreased to $270,000, compared to $342,000 the prior year. Net charge-offs fell 21%, to $271,000 for fiscal year 2013, compared to $345,000 for 2012.

Non-interest income increased $62,000 or 10%, to $700,000 for fiscal 2013. Most of this improvement is due to gain recognized on sale of securities. Gain on sale of securities increased $91,000, to $138,000 in 2013, compared to $47,000 a year earlier. Non-interest expense rose $79,000 or 3%. Salaries and employee benefits increased $96,000 or 8%. Legal and professional fees increased $59,000 or 49%. Offsetting some of the overall increase; repossessed property expense, including net loss on sale of foreclosed property, decreased $36,000 or 22%, to $124,000 for the year.

At June 30, 2013, total assets were $72.8 million compared to $76.0 million at June 30, 2012. During the twelve months ended June 30, 2013, loans outstanding decreased $3.1 million, to $52.6 million. The change in loans accounted for most of the decline in total assets.

Loans delinquent 90 days or more decreased 7%, to $1.4 million, or 2.6% of total loans at June 30, 2013. Total non-performing assets declined 13%, to $1.9 million or 2.6% of total assets. Non-performing assets included $504,000 in other real estate owned ("OREO") and repossessed properties at June 30, 2013, compared to $685,000 at June 30, 2012.

Allowances for loan losses were $662,000 at June 30, 2013, and $663,000 at June 30, 2012. Loan loss allowances were 1.26% of total loans at June 30, 2013, and 1.19% of total loans a year earlier. Periodic provisions to allowances for loan losses reflect management's view of risk in the Company's entire loan portfolio due to a number of dynamic factors, including current economic conditions, quantity of outstanding loans, and loan delinquency trends. Management considered the level of allowances for loan losses at June 30, 2013 to be adequate to cover probable incurred losses inherent in the loan portfolio at that date.

At June 30, 2013, total deposits were $51.6 million, compared to $53.3 million twelve months earlier. Total borrowings decreased to $12.0 million at June 30, 2013, compared to $13.0 million a year earlier.

Shareholders' equity was $8.3 million or 11.3% of total assets at June 30, 2013. The Company's book value per share was $6.85 based on 1,206,185 shares outstanding. Factors impacting shareholder equity during fiscal 2013 included net income, four quarterly cash dividends totaling $.12 per share, $272,000 net decrease in unrealized gain on securities available for sale, and a $32,000 decrease in costs associated with a stock-based employee benefit plan. During the twelve months ended June 30, 2013, the Company repurchased 131,183 shares, or 10% of its stock at a cost of $4.62 per share. The Company repurchased 31,183 shares of its stock through a tender offer for holders of 1,000 or fewer shares and it repurchased 100,000 shares from the estate of the widow of its past chairman, Frank R. Stewart.

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. Further information concerning Home Financial Bancorp and its subsidiaries is available at www.hfbancorp.com or www.ocbconnect.com.

HOME FINANCIAL BANCORP

(Unaudited)

Consolidated Financial Highlights

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

   
 

FOR THREE MONTHS ENDED JUNE 30:

2013

 

2012

Net Interest Income$775$811
Provision for Loan Losses2579
Non-interest Income140137
Non-interest Expense

737

716

Income Tax

27

26

Net Income

126

127

 
Basic and Diluted (Loss) Earnings Per Share:$.10$.10
Average Shares Outstanding - Basic1,265,7011,318,445
Average Shares Outstanding - Diluted1,267,5521,319,289
 

FOR TWELVE MONTHS ENDED JUNE 30:

2013

2012

Net Interest Income$3,223$3,262
Provision for Loan Losses270342
Non-interest Income700638
Non-interest Expense

2,966

2,887

Income Tax

138

158

Net Income

549

513

 
Basic and Diluted Earnings Per Share:$.42$.39
Average Shares Outstanding - Basic1,296,0291,317,221
Average Shares Outstanding - Diluted1,298,1881,317,432
 

June 30,

June 30,

2013

2012

Total Assets$72,820$76,014
Total Loans52,61255,711
Allowance for Loan Losses662663
Total Deposits51,57553,346
Borrowings12,00013,000
Shareholders' Equity8,2588,798
 
Non-Performing Assets1,8552,133
Non-Performing Loans1,3511,448
 
Non-Performing Assets to Total Assets2.55%2.81%
Non-Performing Loans to Total Loans2.57%2.60%
 
Book Value Per Share*$6.85$6.58
 

*Based on 1,206,185 Shares at June 30, 2013 and 1,337,368 Shares at June 30, 2012.

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

KEYWORDS:   United States  North America  Indiana

INDUSTRY KEYWORDS:

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