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, 2016.
Fourth Quarter Highlights:
- Provisions for loan losses decreased 50%, or $30,000;
- Non-interest expense declined 28%, or $279,000;
- Net income increased to $79,000, from an $83,000 net loss.
Twelve Month Highlights:
- Shareholders’ equity was $8.8 million, or 13.7% of total assets;
- Non-performing assets improved 17%, to $947,000, or 1.47% of total assets;
- Provisions for loan losses decreased 55%, or $120,000;
- Net income improved to $233,000, from $177,000;
For the quarter ended June 30, 2016, the Company reported net income of $79,000, or $.07 basic and diluted earnings per common share. For the same period last year, the Company reported net loss of $83,000, or $(.07) basic and diluted earnings per common share. The primary factor for the change from the same quarter last year was a change in estimate related to the useful life of a non-bank property held for future bank use in the three months ended June 30, 2015. This change in estimate resulted in additional depreciation expense of approximately $292,000 and related tax benefit of $92,000 for the three months ended June 30, 2015.
Increased interest income from investment securities substantially offset a $49,000, or 7% decrease in loan interest income. Consequently, total interest income for the quarter was down $6,000, or less than 1%. This decrease was more than offset by a $13,000, or 11% decline in total interest expense. Net interest income before provisions for loan losses increased $8,000, or 1% for the three months ended June 30, 2016, compared to fourth quarter 2015.
Provisions for loan losses were $30,000 during fourth quarter 2016, compared to $60,000 for the same period a year earlier. Net loan losses totaled $67,000 for the most recent quarter, and also $67,000 a year ago. A regular analysis of the allowance for loan losses indicated the reserve was adequate at June 30, 2016. 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 $139,000 for the 3 months ended June 30, 2016, compared to $143,000 for the year-earlier period. Non-interest expense decreased $279,000, or 28%, to $730,000 primarily due to the previously mentioned change in estimate recorded in fourth quarter 2015. Losses incurred due debit card fraud were higher in the three months ended June 30, 2016 compared to the same period in the prior year, which limited the overall decrease in non-interest expense.
For the twelve-month period ended June 30, 2016, the Company reported net income of $233,000, or $.20 basic and diluted earnings per common share. The Company reported earnings of $177,000 or $.15 basic and diluted earnings per common share for fiscal 2015. Excluding expenses of approximately $200,000, net of tax, related to the change in estimate mentioned previously, net income from operations for fiscal 2015 was $377,000, or $.32 basic and diluted earnings per common share. Net interest income before provisions for loan losses decreased $75,000 to $2.7 million for fiscal year 2016. Total interest income decreased $165,000, or 5%, but was only partially offset by an $89,000, or 17% decline in interest expense for the year. Loan loss provisions decreased to $100,000, compared to $220,000 for the prior year. Net loan charge-offs totaled $172,000 for fiscal year 2016, compared to $178,000 for fiscal year 2015.
Non-interest income decreased $157,000 or 23%, to $525,000 for fiscal 2016. Non-interest income in the prior year included $100,000 of non-recurring life insurance proceeds associated with the January, 2015 death of Company’s CFO and Executive Vice President, Mike Monnett. Non-interest expense fell $244,000 or 8%, to $3.0 million for the current year. Expenses related to change in estimate mentioned previously totaled approximately $292,000 in fiscal 2015. Salaries and employee benefits decreased $64,000, or 5% for fiscal year 2016.
At June 30, 2016, total assets were $64.5 million compared to $64.9 million at June 30, 2015. During the twelve months ended June 30, 2016, loans outstanding decreased $1.4 million, or 3%, to $44.3 million. Cash and cash equivalents declined $2.5 million or 60% from $4.2 million at June 30, 2015 to $1.7 million at June 30, 2016 while investment securities increased $2.9 million, or 33% during the year.
Loans delinquent 90 days or more decreased 20%, to $692,000, which was 1.6% of total loans at June 30, 2016. Total non-performing assets declined 17%, to $947,000, which was 1.5% of total assets at June 30, 2016. Non-performing assets included $255,000 in other real estate owned (“OREO”) and repossessed properties at June 30, 2016, compared to $283,000 at June 30, 2015.
Allowances for loan losses were $454,000 at June 30, 2016, and $526,000 at June 30, 2015. Loan loss allowances were 1.02% of total loans at June 30, 2016, and 1.15% 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, 2016 to be adequate to cover probable incurred losses inherent in the loan portfolio at that date.
At June 30, 2016, total deposits increased $2.1 million, or 5% to $46.7 million, compared to $44.6 million twelve months earlier. Total borrowings decreased to $8.5 million at June 30, 2016, compared to $10.5 million a year earlier.
Shareholders’ equity was $8.8 million, or 13.7% of total assets at June 30, 2016, compared to $8.7 million, or 13.4% of total assets at June 30, 2015. Factors impacting shareholder equity during fiscal 2016 included net income, four quarterly cash dividends totaling $.14 per share, $142,000 net increase in unrealized gain on securities available for sale, and a $17,000 decrease in equity components associated with a stock-based employee benefit plan. During the twelve months ended June 30, 2016, the Company repurchased 15,880 shares of its stock at an average price of $5.99 per share including transaction costs. The share repurchases increased the book value per share for remaining shares outstanding by $.02. At June 30, 2016, the Company’s book value per share was $7.52 based on 1,175,703 shares outstanding compared to $7.30 per share based on 1,191,583 at June 30, 2015. The last reported price per share on June 30, 2015 was $6.87.
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 |
||||||||||
|
FOR THREE MONTHS ENDED JUNE 30: |
2016 |
2015 |
||||||||
| Net Interest Income | $ | 696 | $ | 688 | ||||||
| Provision for Loan Losses | 30 | 60 | ||||||||
| Non-interest Income | 139 | 143 | ||||||||
| Non-interest Expense | 730 | 1,009 | ||||||||
| Income Tax | (4 | ) | (155 | ) | ||||||
| Net Income | 79 | (83 | ) | |||||||
| Basic and Diluted (Loss) Earnings Per Share: | $ | .07 | $ | .07 | ||||||
| Average Shares Outstanding - Basic | 1,185,404 | 1,184,614 | ||||||||
| Average Shares Outstanding - Diluted | 1,185,494 | 1,184,614 | ||||||||
|
FOR TWELVE MONTHS ENDED JUNE 30: |
2016 |
2015 |
||||||||
| Net Interest Income | $ | 2,730 | $ | 2,805 | ||||||
| Provision for Loan Losses | 100 | 220 | ||||||||
| Non-interest Income | 525 | 682 | ||||||||
| Non-interest Expense | 2,953 | 3,197 | ||||||||
| Income Tax (Benefit) | (31 | ) | (107 | ) | ||||||
| Net Income | 233 | 177 | ||||||||
| Basic and Diluted Earnings Per Share: | $ |
.20 |
$ | .15 | ||||||
| Average Shares Outstanding - Basic | 1,188,586 | 1,187,621 | ||||||||
| Average Shares Outstanding - Diluted | 1,188,943 | 1,188,767 | ||||||||
|
June 30, |
June 30, |
|||||||||
|
2016 |
2015 |
|||||||||
| Total Assets | $ | 64,548 | $ | 64,910 | ||||||
| Total Loans | 44,311 | 45,716 | ||||||||
| Allowance for Loan Losses | 454 | 526 | ||||||||
| Total Deposits | 46,738 | 44,606 | ||||||||
| Borrowings | 8,500 | 10,500 | ||||||||
| Shareholders’ Equity | 8,836 | 8,704 | ||||||||
| Non-Performing Assets | 947 | 1,145 | ||||||||
| Non-Performing Loans | 692 | 862 | ||||||||
| Non-Performing Assets to Total Assets | 1.47 | % | 1.76 | % | ||||||
| Non-Performing Loans to Total Loans | 1.56 | % | 1.89 | % | ||||||
| Book Value Per Share* | $ | 7.52 | $ | 7.30 | ||||||
*Based on 1,175,703 Shares at June 30, 2016 and 1,191,583 Shares at June 30, 2015.