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 second quarter and six months ended December 31, 2019. The following comparisons are made to the same time period in the prior fiscal year.
Second Quarter Highlights:
- Net interest income increased $43,000 or 7%;
- Non-interest income increased $13,000 or 10%;
- Net income improved $42,000 or 55%, to $118,000.
Six Month Highlights:
- Non-performing assets decreased $151,000 or 31%;
- Net interest income increased $62000 or 5%;
- Non-interest income rose $39,000 or 16%;
- Net income improved $119,000 to $215,000.
For the quarter ended December 31, 2019, the Company reported net income of $118,000, or $.10 basic and diluted earnings per share. Net income was $76,000 or $.07 basic and diluted earnings per share for the quarter ended December 31, 2018. Second quarter 2020 net income improved due to higher net interest income and non-interest income compared to the same quarter last year.
Net interest income increased $43,000 or 7% and totaled $678,000. Total interest income improved $33,000 or 4%, while interest expense decreased $10,000 or 5%. Net interest margin for the quarter was 3.96%, compared to 3.68% for the same period a year earlier.
Loan loss provisions were $15,000 for both quarters-ended December 31, 2019 and December 31, 2018. A regular assessment of loan loss allowance adequacy indicated that these provisions were necessary to maintain an appropriate allowance level. Changes in volume, composition and quality of the loan portfolio, as well as actual loan loss experience, influences the need for future loan loss provisions.
Total non-interest income increased $13,000 or 10%, to $140,000 for the quarter. Total non-interest expense for second quarter 2020 increased less than 1% to $673,000. Income tax expense was $12,000, compared to less than $1,000 for the same quarter a year earlier.
For the six-month period ended December 31, 2019, the Company reported net income of $215,000, or $.19 basic and diluted earnings per share. Net income was $96,000, or $.08 basic and diluted earnings per share for the six months ended December 31, 2018. Higher net interest income, better non-interest income, and lower non-interest expense combined to improve net income compared to the same period a year earlier.
Net interest income increased $62,000, or 5%, to $1.3 million for the six-month period ending December 31, 2019. Total interest income increased $65,000 or 4%. Total interest expense increased $3,000 or 1%.
Loan loss provisions were $30,000 for six-months ended December 31, 2019, and for the same period ending December 31, 2018. 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.
Non-interest income increased $39,000, or 16%, to $285,000 for the first half of fiscal 2020, compared to $246,000 for the year-earlier period. This change resulted from an increase in ATM service fees, service charges on deposit accounts and gain on sale of loans.
Non-interest expense decreased $43,000 or 3%. Contributing to the overall decline in non-interest expense, ATM transaction and processing costs decreased, legal and professional fees decreased, REO and repossessed property expense decreased, and advertising expense decreased. Partially offsetting these decreases, salaries and employee benefits increased $62,000 or 10% compared to the same period a year earlier.
At December 31, 2019, total assets were $73.2 million, compared to $72.0 million at June 30, 2019. Cash and cash equivalents increased $740,000 or 14% to $6.1 million. Investments available for sale declined 6% to $8.4 million. Total loans increased $965,000 or 2%, to $54.2 million.
Loans delinquent 90 days or more decreased 41% and were $229,000 or 0.4% of total loans at December 31, 2019, compared to $386,000 or 0.7% of total loans at June 30, 2019. Non-performing assets decreased 31% to $344,000 or 0.5% of total assets at December 31, 2019. This compares to non-performing assets of $495,000 or 0.7% of total assets at June 30, 2019. Non-performing assets included $115,000 in Other Real Estate Owned (“OREO”) and repossessed properties at December 31, 2019, compared to $108,000 six months earlier.
Loan loss allowances were $510,000 or 0.94% of total loans at December 31, 2019, compared to $504,000 or 0.95% of total loans at June 30, 2019. Management considered the level of loan loss allowances at December 31, 2019 to be adequate to cover estimated losses inherent in the loan portfolio at that date.
Total deposits decreased $157,000 or less than 1%, to $52.9 million as of December 31, 2019. Total borrowings increased $1.0 million or 11%, to $10.5 million at December 31, 2019.
Shareholders’ equity was $9.1 million or 12.4% of total assets at December 31, 2019. Factors impacting shareholder equity during the first half of fiscal 2020 included net income, two quarterly cash dividends totaling $.08 per share, and a $22,000 increase in accumulated other comprehensive gain related to securities available for sale. At December 31, 2019, the Company’s book value per share was $7.83 based on 1,155,594 shares outstanding.
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 |
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Consolidated Financial Highlights |
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(Unaudited) |
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(Dollars in thousands, except per share and book value amounts) |
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FOR THREE MONTHS ENDED DECEMBER 31: |
2019 |
2018 |
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Net Interest Income |
$678 |
|
$635 |
|
||
Provision for Loan Losses |
15 |
|
15 |
|
||
Non-interest Income |
140 |
|
127 |
|
||
Non-interest Expense |
673 |
|
670 |
|
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Income Tax |
12 |
|
1 |
|
||
Net Income |
118 |
|
76 |
|
||
|
|
|
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Basic Earnings Per Share: |
$ .10 |
|
$ .07 |
|
||
Diluted Earnings Per Share: |
$ .10 |
|
$ .07 |
|
||
Average Shares Outstanding - Basic |
1,155,594 |
|
1,162,947 |
|
||
Average Shares Outstanding - Diluted |
1,155,594 |
|
1,162,947 |
|
||
|
|
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FOR SIX MONTHS ENDED DECEMBER 31: |
2019 |
2018 |
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Net Interest Income |
$1,346 |
|
$1,284 |
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||
Provision for Loan Losses |
30 |
|
30 |
|
||
Non-interest Income |
285 |
|
246 |
|
||
Non-interest Expense |
1,369 |
|
1,412 |
|
||
Income Tax |
17 |
|
(8 |
) |
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Net Income |
215 |
|
96 |
|
||
|
|
|
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Basic Earnings Per Share: |
$ .19 |
|
$ .08 |
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||
Diluted Earnings Per Share: |
$ .19 |
|
$ .08 |
|
||
Average Shares Outstanding - Basic |
1,155,594 |
|
1,164,475 |
|
||
Average Shares Outstanding - Diluted |
1,155,594 |
|
1,164,475 |
|
||
|
|
|
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|
December 31, |
June 30, |
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|
2019 |
2019 |
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Total Assets |
$73,169 |
|
$72,011 |
|
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Total Loans |
54,197 |
|
53,232 |
|
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Allowance for Loan Losses |
510 |
|
504 |
|
||
Total Deposits |
52,924 |
|
53,081 |
|
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Borrowings |
10,500 |
|
9,500 |
|
||
Shareholders’ Equity |
9,046 |
|
8,900 |
|
||
|
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Non-Performing Assets |
344 |
|
495 |
|
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Non-Performing Loans |
229 |
|
386 |
|
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Non-Performing Assets to Total Assets |
0.47 |
% |
0.69 |
% |
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Non-Performing Loans to Total Loans |
0.42 |
|
0.73 |
|
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|
|
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Book Value Per Share* |
$7.83 |
|
$7.70 |
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*Based on 1,155,594 shares at December 31, 2019 and at June 30, 2019. |
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