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Home Financial Bancorp Announces First Quarter Results

November 12, 2019

SPENCER, Ind.--(BUSINESS WIRE)--Nov 12, 2019--

Home Financial Bancorp (“Company”) (OTC 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, 2019.

First Quarter Highlights:

For the quarter ended September 30, 2019, the Company reported net income of $97,000 or $.08 basic and diluted earnings per share. Net income totaled $20,000 or $.02 basic and diluted earnings per share for the quarter ended September 30, 2018. Higher interest income on loans, an increase in non-interest income and an overall decrease in non-interest expense resulted in improved net income compared to the same period a year earlier.

Net interest income increased $17,000 or 3%, to $667,000 for the three months ended September 30, 2019. Total interest income rose $31,000 or 4%, while interest expense increased $14,000, or 8%.

Loan loss provisions were $15,000 for the quarter-ended September 30, 2019, and $20,000 for the same period a year earlier. 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 increased $39,000 or 37%, compared to the year-earlier period. Much of this change is associated with a net loss on sale of repossessed property of $12,000 recognized during fiscal first quarter 2019. No similar loss on sale of repossessed property was recognized in the most recent quarter. Also contributing to the overall increase in non-interest income, ATM service fees increased $12,000 or 24% and service charge income on deposit accounts increased $8,000 or 15%.

Non-interest expense decreased $29,000 or 4%. Salaries and employee benefits increased $18,000 or 6%, and computer processing fees increased $17,000 or 21% compared to the same period last year. Offsetting these increases, legal and professional fees decreased $30,000 or 28%. Also contributing to the overall decrease in non-interest expense, net occupancy expense, advertising and assorted other expense categories declined compared to a year earlier.

At September 30, 2019, total assets were $72.8 million, an increase of $760,000 from $72.0 million at June 30, 2019. During fiscal first quarter 2020, cash and interest-bearing deposits increased $415,000, and investment securities decreased $507,000. Total loans increased $864,000 or 2%, to $54.1 million, from $53.2 million at June 30, 2019.

Loans delinquent 90 days or more decreased 44% to $215,000 or 0.4% of total loans at September 30, 2019. Three months earlier, non-performing loans were $386,000 or 0.7% of total loans. Non-performing assets, which includes non-performing loans, decreased 18% to $407,000, or 0.6% of total assets, at September 30, 2019. Non-performing assets totaled $495,000, or 0.7% of assets, at June 30, 2019. Non-performing assets included $192,000 in Other Real Estate Owned (“OREO”) and other repossessed properties at September 30, 2019, compared to $109,000 three months earlier.

The allowance for loan losses was $505,000 at September 30, 2019, compared to $504,000 at June 30, 2019. Loan loss allowances were 0.93% of total loans at September 30, 2019, and 0.95% at June 30, 2019. 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, 2019 to be adequate to cover probable incurred losses inherent in the loan portfolio at that date.

Total deposits were $52.7 million as of September 30, 2019 and $53.1 million as of June 30, 2019. Total borrowings increased $1.0 million or 11%, to $10.5 million for quarter-ended September 30, 2019.

Shareholders’ equity was $9.0 million or 12.3% of total assets at September 30, 2019. Factors affecting shareholders’ equity during the quarter included net income, quarterly cash dividends of $.04 per share, and a $16,000 net increase in the market value of securities available for sale. Based on 1,155,594 shares outstanding, the Company’s book value per share was $7.76 at September 30, 2019.

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:

2019

2018

Net Interest Income

$667

 

$650

 

Provision for Loan Losses

15

 

20

 

Non-interest Income

145

 

106

 

Non-interest Expense

695

 

724

 

Income Tax

5

 

(8

)

Net Income

97

 

20

 

 

 

 

Basic Earnings Per Share:

$ .08

 

$ .02

 

Diluted Earnings Per Share:

.08

 

.02

 

Average Shares Outstanding - Basic

1,155,594

 

1,166,002

 

Average Shares Outstanding - Diluted

1,155,594

 

1,166,002

 

 

 

 

 

September 30,

June 30,

 

2019

2019

Total Assets

$72,764

 

$72,011

 

Total Loans

54,096

 

53,232

 

Allowance for Loan Losses

505

 

504

 

Total Deposits

52,698

 

53,081

 

Borrowings

10,500

 

9,500

 

Shareholders’ Equity

8,969

 

8,900

 

 

 

 

Non-Performing Assets

407

 

495

 

Non-Performing Loans

215

 

386

 

 

 

 

Non-Performing Assets to Total Assets

0.56

%

0.69

%

Non-Performing Loans to Total Loans

0.40

%

0.73

%

 

 

 

Book Value Per Share*

$7.76

 

$7.70

 

 

*Based on 1,155,594 shares at September 30, 2019 and June 30, 2019.

 

View source version on businesswire.com:https://www.businesswire.com/news/home/20191112005710/en/

CONTACT: Kurt D. Rosenberger

Phone: (812) 829-2095

KEYWORD: INDIANA UNITED STATES NORTH AMERICA

INDUSTRY KEYWORD: BANKING PROFESSIONAL SERVICES FINANCE

SOURCE: Home Financial Bancorp

Copyright Business Wire 2019.

PUB: 11/12/2019 09:32 AM/DISC: 11/12/2019 09:32 AM

http://www.businesswire.com/news/home/20191112005710/en