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, 2014.
Fourth Quarter Highlights:
- Net interest income contracted 5%, or $39,000;
- Net income decreased 10% to $113,000.
Twelve Month Highlights:
- Shareholders’ equity was $8.7 million, or 12.8% of total assets;
- Non-performing assets improved 19%, or $361,000;
- Provisions for loan losses decreased 31%, or $84,000;
- Net interest income declined 6%, or $183,000;
- Non-interest income fell 20%, or $142,000;
- Net income decreased 27% to $402,000.
For the quarter ended June 30, 2014, the Company reported $113,000, or $.09 basic and diluted earnings per common share. For the same period last year, the Company reported net income of $126,000, or $.10 basic and diluted earnings per common share. Lower loan interest income led to a contraction in fourth quarter net income compared to the same period a year earlier.
Interest income for the quarter was down due to a $56,000, or 6% decrease in loan interest income. This decrease in income was partially offset by a $17,000, or 11% decline in total interest expense. Net interest income before provisions for loan losses fell $39,000, or 5% for the three months ended June 30, 2014, compared to fourth quarter 2013.
Provisions for loan losses were $32,000 during fourth quarter 2014, compared to $25,000 for the same period a year earlier. Net loan losses totaled $67,000, compared to $31,000 a year ago. A regular analysis of the allowance for loan losses indicated the reserve was adequate at June 30, 2014. 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 $161,000, compared to $140,000 for the year-earlier period. Non-interest expense increased $18,000, or 2%. Contributing to the net change, repossessed property expense increased $17,000, or 35%.
For the twelve-month period ended June 30, 2014, the Company reported net income of $402,000, or $.34 basic and diluted earnings per common share. The Company reported record earnings of $549,000 or $.42 basic and diluted earnings per common share for fiscal 2013. Declining interest income, decreased gain on sale of investments, and expense related to liquidation of real estate development subsidiary operations resulted in lower 2014 net earnings.
Net interest income before the provision for loan losses decreased $183,000 to $3.0 million for 2014. Total interest income decreased $291,000, or 7%, but was only partially offset by a $108,000, or 15% decline in interest expense for the year. Loan loss provisions declined to $186,000, compared to $270,000 the prior year. Net loan charge-offs totaled $365,000 for fiscal year 2014, compared to $271,000 for 2013.
Non-interest income decreased $142,000 or 20%, to $558,000 for fiscal 2014. Most of this change is due to $115,000 decrease in recognized gain on sale of securities and expense associated with the liquidation of the Bank’s real estate development subsidiary operations. A condition of approval from the Indiana Department of Financial Institutions for the Bank’s 2011 conversion to an Indiana-chartered commercial bank required the liquidation of real estate development assets and operations. Expenses associated with the disposition of BSF, Inc. assets totaled $72,000 during fiscal 2014. Loss on sale of real estate held for development totaled $6,000 in 2013.
Non-interest expense rose $47,000, or 2%. Repossessed property expense, including net loss on sale of foreclosed property, increased $54,000, to $178,000 for the year.
At June 30, 2014, total assets were $67.8 million compared to $72.8 million at June 30, 2013. During the twelve months ended June 30, 2014, loans outstanding decreased $3.2 million, or 6%, to $49.4 million. The change in loans, and a $1.1 million, or 14% decline in investment securities, accounted for most of the decline in total assets.
Loans delinquent 90 days or more decreased 14%, to $1.2 million, or 2.4% of total loans at June 30, 2014. Total non-performing assets declined 19%, to $1.5 million, or 2.2% of total assets. Non-performing assets included $330,000 in other real estate owned (“OREO”) and repossessed properties at June 30, 2014, compared to $504,000 at June 30, 2013.
Allowances for loan losses were $484,000 at June 30, 2014, and $662,000 at June 30, 2013. Loan loss allowances were 0.98% of total loans at June 30, 2014, and 1.26% 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, 2014 to be adequate to cover probable incurred losses inherent in the loan portfolio at that date.
At June 30, 2014, total deposits were $48.7 million, compared to $51.6 million twelve months earlier. Total borrowings decreased to $10.0 million at June 30, 2014, compared to $12.0 million a year earlier.
Shareholders’ equity increased 5% to $8.7 million, or 12.8% of total assets at June 30, 2014. The Company’s book value per share was $7.27 based on 1,196,083 shares outstanding. Factors impacting shareholder equity during fiscal 2014 included net income, four quarterly cash dividends totaling $.12 per share, $104,000 net decrease in unrealized loss on securities available for sale, and a $37,000 decrease in costs associated with a stock-based employee benefit plan. During the twelve months ended June 30, 2014, the Company repurchased 10,102 shares of its stock.
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: |
2014 |
2013 |
|||||
| Net Interest Income | $736 | $775 | |||||
| Provision for Loan Losses | 32 | 25 | |||||
| Non-interest Income | 161 | 140 | |||||
| Non-interest Expense | 755 | 737 | |||||
| Income Tax | (3 | ) | 27 | ||||
| Net Income | 113 | 126 | |||||
| Basic and Diluted (Loss) Earnings Per Share: | $ .09 | $ .10 | |||||
| Average Shares Outstanding - Basic | 1,189,114 | 1,265,701 | |||||
| Average Shares Outstanding - Diluted | 1,190,800 | 1,267,552 | |||||
|
FOR TWELVE MONTHS ENDED JUNE 30: |
2014 |
2013 |
|||||
| Net Interest Income | $3,040 | $3,223 | |||||
| Provision for Loan Losses | 186 | 270 | |||||
| Non-interest Income | 558 | 700 | |||||
| Non-interest Expense | 3,013 | 2,966 | |||||
| Income Tax | (3 | ) | 138 | ||||
| Net Income | 402 | 549 | |||||
| Basic and Diluted Earnings Per Share: | $ .34 | $ .42 | |||||
| Average Shares Outstanding - Basic | 1,187,564 | 1,296,029 | |||||
| Average Shares Outstanding - Diluted | 1,189,616 | 1,298,188 | |||||
|
June 30, |
June 30, |
||||||
|
2014 |
2013 |
||||||
| Total Assets | $67,809 | $72,820 | |||||
| Total Loans | 49,449 | 52,612 | |||||
| Allowance for Loan Losses | 484 | 662 | |||||
| Total Deposits | 48,686 | 51,575 | |||||
| Borrowings | 10,000 | 12,000 | |||||
| Shareholders’ Equity | 8,701 | 8,258 | |||||
| Non-Performing Assets | 1,494 | 1,855 | |||||
| Non-Performing Loans | 1,164 | 1,351 | |||||
| Non-Performing Assets to Total Assets | 2.20 | % | 2.55 | % | |||
| Non-Performing Loans to Total Loans | 2.35 | % | 2.57 | % | |||
| Book Value Per Share* | $7.27 | $6.85 | |||||
*Based on 1,196,083 Shares at June 30, 2014 and 1,206,185 Shares at June 30, 2013.