Home Financial Bancorp Announces First Quarter Results
Nov 6th 2012 9:45AM
Updated Nov 6th 2012 9:50AM
Home Financial Bancorp Announces First 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 unaudited results for the first quarter ended September 30, 2012.
First Quarter Highlights:
- Provisions for loan losses increased $30,000 or 67%;
- Gain on sale of securities increased $19,000 or 50%;
- Legal and professional fees increased $26,000 or 51%;
- Net income declined 9%, from $154,000 to $139,000.
For the quarter ended September 30, 2012, the Company reported net income of $139,000 or $.11 basic and diluted earnings per share. Net income totaled $154,000 or $.12 basic and diluted earnings per share for the quarter ended September 30, 2011. Higher loan loss provisions reduced net income compared to the same period a year earlier.
Net interest income increased 2% to $815,000 for the three months ended September 30, 2012. Interest income declined $63,000 or 6%, while interest expense fell $82,000, or 29%. Net interest margin for the quarter was 4.62%, compared to 4.45% a year earlier.
Loan loss provisions were $75,000 for the quarter ended September 30, 2012 and $45,000 for the year-earlier period. A regular assessment of loan loss allowance adequacy indicated that these provisions were required to maintain an appropriate allowance level. Changes in volume, composition and quality of the loan portfolio, as well as actual loan loss experience, will influence the need for future loan loss provisions.
Non-interest income totaled $209,000, compared to $194,000 for the year-earlier period. Gain on sale of securities increased to $57,000, compared to $38,000 for first quarter 2012. Non-interest expense increased $51,000 or 7% compared to the quarter ended September 30, 2011. Legal and professional fees were $78,000 for the quarter, compared to $51,000 a year earlier. Much of this expense increase is for professional services related to the Company's tender offer for holders of 1,000 or fewer shares announced on October 3, 2012. In addition, salaries and employee benefit expenses increased $14,000, or 4%.
At September 30, 2012, total assets were $73.6 million. Assets were $76.0 million at June 30, 2012. During fiscal first quarter 2013, investment securities available for sale decreased $1.2 million or 16%, to $6.3 million. Also, outstanding loans declined $1.2 million or 2%, to $54.5 million as of September 30, 2012.
Loans delinquent 90 days or more totaled $1.6 million or 2.9% of total loans at September 30, 2012. Three months earlier, non-performing loans were at $1.4 million or 2.6% of total loans. Non-performing assets were $2.1 million or 2.8% of total assets at September 30, 2012 and June 30, 2012. Non-performing assets included $492,000 in Other Real Estate Owned ("OREO") and other repossessed properties at September 30, 2012, compared to $685,000 three months earlier.
The allowance for loan losses rose 5% to $697,000, compared to $663,000 at June 30, 2012. Loan loss allowances were 1.28% of total loans at September 30, 2012 compared to 1.19% of total loans at June 30, 2012. Net loans charged off during the quarter ended September 30, 2012 totaled $41,000 compared to $70,000 for the first quarter of fiscal 2012. Periodic provisions to loan loss allowances reflect management's view of risk in the Bank's entire portfolio due to a number of dynamic factors, which include, but are not limited to, current economic conditions and loan delinquency trends. Management considered the level of loan loss allowances at September 30, 2012 to be adequate to cover probable incurred losses inherent in the loan portfolio at that date.
Total deposits were $52.1 million as of September 30, 2012, compared to $53.3 million three months earlier. Total borrowings fell 8% to $12.0 million. Borrowings were $13.0 million at June 30, 2012.
Shareholders' equity was $8.9 million or 12.1% of total assets at September 30, 2012. Factors affecting shareholders' equity during the quarter included net income, quarterly cash dividends of $.03 per share, a $30,000 net decrease in the market value of securities available for sale, and an $8,000 decrease in costs associated with a stock-based employee benefit plan. Based on 1,337,368 shares outstanding, the Company's book value per share was $6.64 at September 30, 2012.
Home Financial Bancorp and Our Community Bank, an FDIC-insured, state stock commercial bank, operate from headquarters in Spencer, Indiana, and a branch office in Cloverdale, Indiana. Additional information concerning Home Financial Bancorp and its subsidiaries is available at www.hfbancorp.com or www.ocbconnect.com.
HOME FINANCIAL BANCORP
Consolidated Financial Highlights
|(Dollars in thousands, except per share and book value amounts)|
FOR THREE MONTHS ENDED SEPTEMBER 30:
|Net Interest Income||815||796|
|Provision for Loan Losses||75||45|
|Basic Earnings Per Share:||$ .11||$ .12|
|Diluted Earnings Per Share:||.11||.12|
|Average Shares Outstanding - Basic||1,318,315||1,317,257|
|Average Shares Outstanding - Diluted||1,320,602||1,317,257|
|Allowance for Loan Losses||697||663|
|Non-Performing Assets to Total Assets||2.79||%||2.81||%|
|Non-Performing Loans to Total Loans||2.86||%||2.60||%|
|Book Value Per Share*||$6.64||$6.58|
*Based on 1,337,368 shares at September 30, 2012 and 1,337,368 shares at June 30, 2012.
Home Financial Bancorp
Kurt D. Rosenberger, 812-829-2095
KEYWORDS: United States North America Indiana
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