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Press release content from Business Wire. The AP news staff was not involved in its creation.

Home Financial Bancorp Announces Third Quarter Results

May 9, 2019 GMT

SPENCER, Ind.--(BUSINESS WIRE)--May 9, 2019--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, 2019.

Third Quarter Highlights:

  • Net interest income decreased 6% or $40,000;
  • Non-interest income increased 11% or $12,000;
  • Non-interest expenses decreased 2% or $15,000;
  • Net income rose 5%, from $100,000 to $105,000.

Nine Month Highlights:

  • Total shareholders’ equity totaled $8.8 million or 12% of assets;
  • Non-performing loans decreased 24%, or $212,000;
  • Net interest income declined 5%, or $96,000;
  • Net income decreased 19%, from $247,000 to $201,000.

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For the quarter ended March 31, 2019, the Company reported net income of $105,000 or $.09 basic and diluted earnings per share. For the same period last year, the Company reported net income of $100,000 or $.09 per share. Net income was higher, compared to third quarter 2018 results, due to an increase in non-interest income, slightly lower non-interest expenses, and lower income tax expense.

Total interest income was higher by $17,000 or 2%, while interest expense increased $57,000 or 47% during the quarter ended March 31, 2019, compared to the quarter ended March 31, 2018. As a result, net interest income decreased $40,000, or 6%, for the three months ended March 31, 2019, compared to the same period in 2018.

Loan loss provisions for third quarter 2019 totaled $9,000. Loan loss provisions were $15,000 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. 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 2019 non-interest income totaled $130,000 compared to $118,000 a year earlier. Service charges on deposit accounts increased $17,000 or 40%. Non-interest expense for the quarter ended March 31, 2019 totaled $672,000, compared to $687,000 for the same period a year earlier.

For the nine-month period ended March 31, 2019, the Company reported net income of $201,000 or $.17 earnings per share. Net income was $247,000 or $.21 earnings per share for the year-earlier period. Net income declined due to higher interest expense on deposits.

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Total interest income increased $90,000, or 4%. Interest expense rose $186,000 or 53%. Consequently, net interest income before provisions for loan losses decreased $96,000 or 5%, compared to the same period in 2018.

For the nine-month period ended March 31, 2019, loan loss provisions were $39,000, compared to $40,000 recorded for the nine-month period ended March 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.

Total non-interest income increased $36,000, or 11%. Accounting for most of the change, service charges on deposit accounts increased $46,000, or 36%, compared to the year-earlier period. Total non-interest expense increased $39,000, or 2%, compared to the same nine-months during the prior year.

As of March 31, 2019, total assets were $73.0 million and $73.2 million at June 30, 2018; the end of the prior fiscal year. Cash and interest-bearing deposits totaled $6.7 million at March 31, 2019. Investment securities available for sale decreased $1.0 million, or 10%, to $9.0 million at March 31, 2019. Total loans increased to $52.9 million, from $52.3 million at June 30, 2018.

Non-performing loans decreased 24% and totaled $667,000, or 1.3% of total loans at March 31, 2019. At June 30, 2018, non-performing loans were $879,000, or 1.7% of total loans. Total non-performing assets were $754,000, or 1.0% of total assets at March 31, 2019, compared to $932,000, or 1.3% of total assets at June 30, 2018. Non-performing assets included $87,000 in Other Real Estate Owned (“OREO”) and other repossessed properties at March 31, 2019, compared to $53,000 nine months earlier.

The balance of the loan loss allowance increased 5% to $507,000 or 1.0% of total loans at March 31, 2019, compared to $485,000, or 0.9% of total loans at June 30, 2018. Management considered the level of loan loss allowances at March 31, 2019 to be adequate to cover estimated losses inherent in the loan portfolio at that date.

Total deposits increased 8% to $54.0 million as of March 31, 2019, from $50.1 million nine months earlier. Total borrowings decreased $4.5 million, or 32%, to $9.5 million.

Shareholders’ equity was $8.8 million, or 12.0% of total assets at March 31, 2019, compared to $8.7 million or 11.9% of total assets at June 30, 2018. Factors impacting shareholder equity during the first three quarters of fiscal 2019 included net income, three quarterly cash dividends totaling $.12 per share, and a decrease in accumulated other comprehensive loss from $91,000 at June 30, 2018, to $12,000 at March 31, 2019. At March 31, 2019, the Company’s book value per share was $7.59 based on 1,155,594 shares outstanding. The last reported price per share as of March 31, 2019 was $7.29.

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

SPENCER, Ind.--(BUSINESS WIRE)--May 9, 2019--(Unaudited)

SPENCER, Ind.--(BUSINESS WIRE)--May 9, 2019--(Dollars in thousands, except per share and book value amounts)

 

SPENCER, Ind.--(BUSINESS WIRE)--May 9, 2019--FOR THREE MONTHS ENDED MARCH 31:

SPENCER, Ind.--(BUSINESS WIRE)--May 9, 2019--2019

SPENCER, Ind.--(BUSINESS WIRE)--May 9, 2019--2018

SPENCER, Ind.--(BUSINESS WIRE)--May 9, 2019--Net Interest Income

$650 $690
Provision for Loan Losses 9 15
Non-interest Income 130 118
Non-interest Expense 672 687
Income Tax (6 ) 6
Net Income 105 100
 
Basic and Diluted Earnings Per Share: $ .09 $.09
Average Shares Outstanding - Basic 1,155,594 1,165,592
Average Shares Outstanding - Diluted 1,155,594 1,165,666
 
FOR NINE MONTHS ENDED MARCH 31: 2019 2018
Net Interest Income $1,934 $2,030
Provision for Loan Losses 39 40
Non-interest Income 363 327
Non-interest Expense 2,071 2,033
Income Tax (14 ) 37
Net Income 201 247
 
Basic and Diluted Earnings Per Share: $ .17 $ .21
Average Shares Outstanding - Basic 1,161,514 1,165,503
Average Shares Outstanding - Diluted 1,161,514 1,168,636
 
March 31, June 30,

SPENCER, Ind.--(BUSINESS WIRE)--May 9, 2019--2019

SPENCER, Ind.--(BUSINESS WIRE)--May 9, 2019--2018

Total Assets $72,952 $73,347
Total Loans 52,877 52,348
Allowance for Loan Losses 507 485
Total Deposits 54,044 50,133
Borrowings 9,500 14,000
Shareholders’ Equity 8,776 8,717
 
Non-Performing Assets 754 932
Non-Performing Loans 667 879
 
Non-Performing Assets to Total Assets 1.03 % 1.27 %
Non-Performing Loans to Total Loans 1.26 % 1.68 %
 
Book Value Per Share* $7.59 $7.48

*Based on 1,155,594 shares at March 31, 2019 and 1,166,002 at June 30, 2018.

View source version on businesswire.com:https://www.businesswire.com/news/home/20190509005563/en/

CONTACT: Kurt D. Rosenberger

Phone: (812) 829-2095

KEYWORD: UNITED STATES NORTH AMERICA INDIANA

INDUSTRY KEYWORD: PROFESSIONAL SERVICES BANKING FINANCE

SOURCE: Home Financial Bancorp

Copyright Business Wire 2019.

PUB: 05/09/2019 09:18 AM/DISC: 05/09/2019 09:18 AM

http://www.businesswire.com/news/home/20190509005563/en