SPENCER, Ind.--(BUSINESS WIRE)--Home Financial Bancorp (“Company”) (OTCPink: “HWEN”), an Indiana corporation which is the holding company for Our Community Bank, (“Bank”) based in Spencer, Indiana, announces results for the third quarter and nine months ended March 31, 2018.
Third Quarter Highlights:
- Total interest income increased 4% or $32,000;
- Non-interest income decreased 5% or $6,000;
- Net income rose 10%, from $91,000 to $100,000.
Nine Month Highlights:
- Total assets increased 3% to $71.9 million;
- Non-performing assets decreased 18%, or $144,000;
- Non-interest income declined 25%, or $109,000;
- Net income changed less than 1%, from $250,000 to $247,000.
For the quarter ended March 31, 2018, the Company reported net income of $100,000 or $.09 basic and diluted earnings per share. For the same period last year, the Company reported net income of $91,000 or $.08 per share. Net income was higher, compared to third quarter 2017 results, due to an increase in total interest income, lower provisions for loan losses and lower income tax expense.
Total interest income was higher by $32,000 or 4%, while interest expense increased $17,000 or 16% during the quarter ended March 31, 2018, compared to the quarter ended March 31, 2017. As a result, net interest income increased $15,000, or 2%, for the three months ended March 31, 2018, compared to the same period in 2017.
Loan loss provisions for third quarter 2018 totaled $15,000. Loan loss provisions were $20,000 for the same period a year earlier. A regular assessment of loan loss allowance adequacy indicated that these provisions were necessary to maintain an appropriate allowance level. Net loan charge-offs totaled less than $1,000 for the three months ended March 31, 2018, compared to approximately $1,000 for third quarter 2017. Changes in volume, composition and quality of the loan portfolio, as well as actual loan loss experience, will influence the need for future loss provisions.
Third quarter 2018 non-interest income totaled $118,000 compared to $124,000 a year earlier. Non-interest expense for the quarter ended March 31, 2018 totaled $687,000, compared to $674,000 for the same period a year earlier.
For the nine-month period ended March 31, 2018, the Company reported net income of $247,000 or $.21 earnings per share. Net income was $250,000 or $.21 earnings per share for the year-earlier period. Net income declined slightly due to lower non-interest income.
Total interest income increased $77,000, or 3%. Interest expense rose $39,000 or 13%. Consequently, net interest income before provisions for loan losses increased $38,000 or 2%, compared to the same period in 2017.
For the nine-month period ended March 31, 2018, loan loss provisions were $40,000, which represents a $20,000 or 33% decline from $60,000 recorded for the nine-month period ended March 31, 2017. Loan loss provisions reflect management’s assessment of various risk factors including, but not limited to, the level and trend of loan delinquencies and losses. Net loan charge-offs totaled $34,000 during the first three quarters of fiscal 2018, compared to $46,000 for the year-earlier period.
Total non-interest income decreased $109,000, or 25%. Accounting for most of the change, service charges on deposit accounts decreased $64,000, or 33%, and gain on sale of securities decreased $39,000 for the nine-month period ending March 31, 2018, compared to the year-earlier period. Total non-interest expense decreased $45,000, or 2%, compared to the same nine-months during the prior year. Contributing to the change from last year, computer processing expense fell $81,000 or 29%, along with legal and professional fees which decreased $14,000, or 6%. Partially offsetting these decreases, salaries and employee benefits increased $65,000 or 7%.
As of March 31, 2018, total assets increased 3% to $71.9 million, from $69.7 million at June 30, 2017; the end of the prior fiscal year. Cash and interest-bearing deposits totaled $3.5 million at March 31, 2018. Investment securities available for sale decreased $1.4 million, or 11%, to $10.8 million at March 31, 2018 from $12.2 million at June 30, 2017. Total loans increased 8% to $51.3 million, from $47.7 million at June 30, 2017.
Loans delinquent 90 days or more decreased 15% and totaled $591,000, or 1.2% of total loans at March 31, 2018. At June 30, 2017, non-performing loans were $695,000, or 1.5% of total loans. Total non-performing assets were $653,000, or 0.9% of total assets at March 31, 2018, compared to $797,000, or 1.1% of total assets at June 30, 2017. Non-performing assets included $62,000 in Other Real Estate Owned (“OREO”) and other repossessed properties at March 31, 2018, compared to $102,000 nine months earlier.
The balance of the loan loss allowance increased 3% to $475,000 or 0.9% of total loans at March 31, 2018, compared to $469,000, or 1.0% of total loans at June 30, 2017. Management considered the level of loan loss allowances at March 31, 2018 to be adequate to cover estimated losses inherent in the loan portfolio at that date.
Total deposits increased 3% to $51.6 million as of March 31, 2018, from $50.2 million nine months earlier. Total borrowings rose $1.0 million, or 10%, to $11.0 million.
Shareholders’ equity was $8.9 million, or 12.3% of total assets at March 31, 2018, compared to $8.8 million or 12.7% of total assets at June 30, 2017. Factors impacting shareholder equity during the first three quarters of fiscal 2018 included net income, three quarterly cash dividends totaling $.12 per share, and a shift from $11,000 accumulated other comprehensive income at June 30, 2017 to $87,000 accumulated other comprehensive loss at March 31, 2018. At March 31, 2018, the Company’s book value per share was $7.60 based on 1,166,002 shares outstanding. The last reported price per share on March 31, 2018 was $6.99.
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 | ||||||||
| Consolidated Financial Highlights | ||||||||
| (Unaudited) | ||||||||
| (Dollars in thousands, except per share and book value amounts) | ||||||||
| FOR THREE MONTHS ENDED MARCH 31: |
2018 |
2017 |
||||||
| Net Interest Income | $ | 690 | $ | 674 | ||||
| Provision for Loan Losses | 15 | 20 | ||||||
| Non-interest Income | 118 | 124 | ||||||
| Non-interest Expense | 687 | 674 | ||||||
| Income Tax | 6 | 13 | ||||||
| Net Income | 100 | 91 | ||||||
| Basic and Diluted Earnings Per Share: | $ | .09 | $ | .08 | ||||
|
Average Shares Outstanding - Basic |
1,165,592 |
1,165,968 |
||||||
|
Average Shares Outstanding - Diluted |
1,165,666 |
1,165,977 |
||||||
| FOR NINE MONTHS ENDED MARCH 31: |
2018 |
2017 |
||||||
| Net Interest Income | $ | 2,030 | $ | 1,991 | ||||
| Provision for Loan Losses | 40 | 60 | ||||||
| Non-interest Income | 327 | 436 | ||||||
| Non-interest Expense | 2,033 | 2,077 | ||||||
| Income Tax | 37 | 40 | ||||||
| Net Income | 247 | 250 | ||||||
| Basic and Diluted Earnings Per Share: | $ | .21 | $ | .21 | ||||
|
Average Shares Outstanding - Basic |
1,165,503 |
1,168,922 |
||||||
|
Average Shares Outstanding - Diluted |
1,168,636 |
1,168,984 |
||||||
|
|
March 31, | June 30, | ||||||
|
2018 |
2017 |
|||||||
|
Total Assets |
$ |
71,907 |
$ |
69,717 |
||||
| Total Loans | 51,282 | 47,714 | ||||||
| Allowance for Loan Losses | 475 |
469 |
||||||
| Total Deposits | 51,640 | 50,171 | ||||||
| Borrowings | 11,000 | 10,000 | ||||||
| Shareholders’ Equity | 8,856 | 8,847 | ||||||
| Non-Performing Assets | 653 | 797 | ||||||
| Non-Performing Loans | 591 | 695 | ||||||
| Non-Performing Assets to Total Assets | 0.91 | % | 1.14 | % | ||||
| Non-Performing Loans to Total Loans | 1.15 | 1.46 | ||||||
| Book Value Per Share* | $ | 7.60 | $ | 7.59 | ||||
| *Based on 1,166,002 shares at March 31, 2018 and June 30, 2017. | ||||||||