Home Financial Bancorp Announces First Quarter Results

SPENCER, Ind.--()--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, 2015.

First Quarter Highlights:

  • Net interest income decreased $40,000 or 6%;
  • Provisions for loan losses fell $40,000 or 67%;
  • Non-interest expense increased $25,000 or 3%;
  • Net income dropped $24,000 or 63%, to $14,000.

For the quarter ended September 30, 2015, the Company reported net income of $14,000 or $.01 basic and diluted earnings per share. Net income totaled $38,000 or $.03 basic and diluted earnings per share for the quarter ended September 30, 2014. A decrease in loan interest income and higher non-interest expense lowered net income compared to the same period a year earlier.

Net interest income decreased 6% to $676,000 for the three months ended September 30, 2015. Total interest income declined $66,000 or 8%, while interest expense fell $26,000, or 18%. Net interest margin for the quarter was 4.35%, compared to 4.50% a year earlier.

Loan loss provisions fell to $20,000 for the quarter-ended September 30, 2015, compared to $60,000 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 $141,000, for both the current period and the year-earlier period. Non-interest expense increased $25,000 or 3%. Repossessed property expense increased to $65,000, from $25,000 for the same period a year earlier. Demolition of a non-bank property added approximately $40,000 to non-interest expense during the quarter. Salaries and employee benefits decreased $64,000, or 18%.

At September 30, 2015, total assets were $66.5 million, an increase of $1.6 million or 2.5% from $64.9 million at June 30, 2015. During fiscal first quarter 2016, cash and cash equivalents increased $1.5 million and investment securities increased $1.1 million. Total loans declined $508,000, or 1.1% and interest-bearing time deposits with other banks declined by $900,000 from June 30, 2015 to September 30, 2015. The growth in assets was funded by a $2.2 million increase in total deposits.

Loans delinquent 90 days or more increased 31% to $1.1 million, or 2.5% of total loans at September 30, 2015. Three months earlier, non-performing loans were at $862,000 or 1.9% of total loans. Non-performing assets, which includes non-performing loans, increased 11% and were $1.3 million, or 1.9% of total assets, at September 30, 2015. Non-performing assets totaled $1.2 million, or 1.8% of assets, at June 30, 2015. Non-performing assets included $144,000 in Other Real Estate Owned (“OREO”) and other repossessed properties at September 30, 2015, compared to $283,000 three months earlier.

The allowance for loan losses was $515,000 at September 30, 2015, compared to $526,000 at June 30, 2015. Loan loss allowances were 1.14% of total loans at September 30, 2015, and 1.15% at June 30, 2015. Net loans charged off during the quarter ended September 30, 2015 totaled $30,000, compared to $70,000 for the first quarter of fiscal 2015. 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, 2015 to be adequate to cover probable incurred losses inherent in the loan portfolio at that date.

Total deposits were $46.8 million as of September 30, 2015, compared to $44.6 million three months earlier. Total borrowings were unchanged at $10.5 million for quarters-ended September 30, 2015 and June 30, 2015.

Shareholders’ equity was $8.7 million or 13.1% of total assets at September 30, 2015. Factors affecting shareholders’ equity during the quarter included net income, quarterly cash dividends of $.035 per share, a $26,000 net increase in the market value of securities available for sale, and a $9,000 decrease in equity components associated with a stock-based employee benefit plan. Based on 1,191,583 shares outstanding, the Company’s book value per share was $7.31 at September 30, 2015.

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:

 

2015

 

2014

Net Interest Income 676 716
Provision for Loan Losses 20 60
Non-interest Income 141 141
Non-interest Expense 799 774
Income Tax (16 ) (15 )
Net Income 14 38
 
Basic Earnings Per Share: $.01 $.03
Diluted Earnings Per Share: .01 .03
Average Shares Outstanding - Basic 1,189,093 1,188,989
Average Shares Outstanding - Diluted 1,189,718 1,190,784
 

September 30,

June 30,

2015

2015

Total Assets $66,454 $64,910
Total Loans 45,208 45,716
Allowance for Loan Losses 515 526
Total Deposits 46,775 44,606
Borrowings 10,500 10,500
Shareholders’ Equity 8,711 8,704
 
Non-Performing Assets 1,273 1,155
Non-Performing Loans 1,129 862
 
Non-Performing Assets to Total Assets 1.93 % 1.79 %
Non-Performing Loans to Total Loans 2.50 % 1.89 %
 
Book Value Per Share* $7.31 $7.30
 

*Based on 1,191,583 shares at September 30, 2015 and June 30, 2015.

Contacts

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

Contacts

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