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Home Financial Bancorp Announces Second Quarter Results

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Home Financial Bancorp Announces Second Quarter Results Powered By Docstoc
					Home Financial Bancorp Announces Second
Quarter Results
February 08, 2011 09:41 AM Eastern Time  

SPENCER, Ind.--(EON: Enhanced Online News)--Home Financial Bancorp (“Company”) (OTCBB:HWEN), an
Indiana corporation which is the holding company for Owen Community Bank, s.b., (“Bank”) based in Spencer,
Indiana, announces results for the second quarter and six months ended December 31, 2010.

Second Quarter Highlights:

    l   Net interest income grew 15%, or $104,000;
    l   Non-interest income fell 37%, or $81,000;
    l   Net income increased 38% to $139,000.

Six Month Highlights:

    l   Shareholders’ equity totaled $8.1 million, or 11% of total assets;
    l   Allowances for loan losses increased 18%, and totaled $800,000;
    l   Net interest income increased 14%, or $203,000;
    l   Net income improved 46% to $255,000.

For the quarter ended December 31, 2010, the Company reported net income of $139,000, or $.11 basic and
diluted earnings per share. Net income was $101,000 or $.08 basic and diluted earnings per share for the quarter
ended December 31, 2009. Second quarter 2011 net income improved, compared to a year earlier, due to growth
in net interest income.

Net interest income improved $104,000 or 15%, to $818,000. Interest expense fell $79,000 or 21%, as interest
income increased $25,000 or 2%. Changing market interest rates continued to lower overall funding costs
substantially, compared to a year earlier.

Loan loss provisions were $90,000 for both the quarters-ended December 31, 2010, and 2009. 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.

Non-interest income decreased $81,000 or 37% for the quarter. This change resulted from lower service charge
revenue on deposit accounts, lower reported gain on sale of investment securities and loss on sale of real estate
acquired for development.

Total non-interest expense for second quarter 2011 fell $44,000 or 6%, compared to the same period a year ago.
The largest decline was in salaries and employee benefit expense, which deceased $21,000 or 7%.

For the six-month period ended December 31, 2010, the Company reported net income of $255,000, or $.19 basic
and diluted earnings per share. Net income was $174,000, or $.13 basic and diluted earnings per share for the six
months ended December 31, 2009. Growth in net interest income caused net income to improve, despite a decline
in non-interest income.

Net interest income increased $203,000 or 14% compared to the same six-month period last year. Interest income
edged up $33,000 or 2%, as interest expense fell $170,000 or 21%.

Loan loss provisions were $180,000 for the six-month period ended December 31, 2010, compared to $170,000
for the same period a year earlier. 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 losses for the six months
ended December 31, 2010 dropped 45%, to $56,000, compared to $101,000 for the six months ended December
31, 2009.

Non-interest income was $328,000 for the first half of fiscal 2011, compared to $410,000 for the year-earlier
period. Non-interest expense decreased $13,000 or about 1%. Repossessed property expense, including net loss
on sale of foreclosed property, increased $9,000 or 12% to $86,000 for the six-month period ended December 31,
2010.

At December 31, 2010, total assets increased 3%, to $74.3 million, compared to $72.2 million at June 30, 2010.
Cash and short-term deposits increased $505,000. Loans increased $2.0 million or 4%, to $59.8 million.

Loans delinquent 90 days or more totaled $2.4 million or 4.1% of total loans at December 31, 2010 and compared
to a similar $2.4 million or 4.1% of total loans at June 30, 2010. At December 31, 2010, non-performing assets
were $3.0 million or 4.1% of total assets, compared to $3.3 million or 4.5% of total assets at June 30, 2010. Non-
performing assets included $580,000 in Real Estate Owned (“REO”) and other repossessed properties at
December 31, 2010, compared to $896,000 six months earlier.

Loan loss allowances were $800,000 or 1.34% of total loans at December 31, 2010, compared to $677,000 or
1.17% of total loans at June 30, 2010. Management considered the level of loan loss allowances at December 31,
2010 to be adequate to cover estimated losses inherent in the loan portfolio at that date.

Deposits increased $1.9 million or 4% to $49.1 million as of December 31, 2010. Total borrowings were
unchanged and totaled $16.5 million.

Shareholders’ equity was $8.1 million or 11.0% of total assets at December 31, 2010. Factors impacting
shareholder equity during the first half of fiscal 2011 included net income, two quarterly cash dividends totaling $.06
per share, $54,000 net decrease in unrealized gain on securities available for sale, and a $17,000 decrease in costs
associated with a stock-based employee benefit plan. During the six months ended December 31, 2010, the
Company repurchased 990 shares of its stock in open market transactions. At December 31, 2010, the Company’s
book value per share was $6.03 based on 1,349,615 shares outstanding.

Home Financial Bancorp and Owen Community Bank, s.b., an FDIC-insured, federal stock savings 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.owencom.com.

HOME FINANCIAL BANCORP

Consolidated Financial Highlights

(Unaudited)

(Dollars in thousands, except per share and book value amounts)
FOR THREE MONTHS ENDED DECEMBER 31: 2010                                       2009
Net Interest Income                                      $ 818                 $ 714
Provision for Loan Losses                                  90                    90
Non-interest Income                                        138                   219
Non-interest Expense                                       649                   693
Income Tax                                                 78                    49
Net Income                                               139                     101
Basic Earnings Per Share:                                $ .11                 $ .08
Diluted Earnings Per Share:                              $ .11                 $ .08
Average Shares Outstanding - Basic                         1,316,115             1,311,356
Average Shares Outstanding - Diluted                       1,316,115             1,311,388
FOR SIX MONTHS ENDED DECEMBER 31:                        2010                  2009
Net Interest Income                                      $ 1,610               $ 1,407
Provision for Loan Losses                              180          170
Non-interest Income                                    328          410
Non-interest Expense                                   1,367        1,380
Income Tax                                             136          93
Net Income                                             255          174
Basic Earnings Per Share:                            $ .19        $ .13
Diluted Earnings Per Share:                          $ .19        $ .13
Average Shares Outstanding - Basic                     1,316,277    1,311,411
Average Shares Outstanding - Diluted                   1,316,277    1,311,638
                                                     December 31, June 30,
                                                     2010         2010
Total Assets                                         $ 74,303     $ 72,232
Total Loans                                            59,814       57,783
Allowance for Loan Losses                              800          677
Total Deposits                                         49,149       47,218
Borrowings                                             16,500       16,500
Shareholders’ Equity                                   8,134        8,001
Non-Performing Assets                                  3,028        3,259
Non-Performing Loans                                   2,448        2,363
Non-Performing Assets to Total Assets                  4.08      % 4.51       %
Non-Performing Loans to Total Loans                    4.09         4.09
Book Value Per Share*                                $ 6.03       $ 5.92

*Based on 1,349,615 shares at December 31, 2010 and 1,350,605 shares at June 30, 2010.

Contacts
Home Financial Bancorp
Kurt D. Rosenberger, 812-829-2095

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Description: SPENCER, Ind.--(EON: Enhanced Online News)--Home Financial Bancorp (“Company”) (OTCBB:HWEN), an Indiana corporation which is the holding company for Owen Community Bank, s.b., (“Bank”) based in Spencer, Indiana, announces results for the second quarter and six months ended December 31, 2010. Second Quarter Highlights: Net interest income grew 15%, or $104,000; Non-interest income fell 37%, or $81,000; Net income increased 38% to $139,000. Six Month Highlights: Shareholders’ equity totaled $8.1 m a style='font-size
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