Home Financial Bancorp Announces First Quarter Results

SPENCER, Ind.--(BUSINESS WIRE)-- 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, 2017.

First Quarter Highlights:

• Non-performing assets decreased 30% to $556,000, or less than 1% of total assets;
• Non-interest income fell $74,000 or 42%;
• Non-interest expense decreased $52,000 or 7%;
• Net income improved $6,000 or 7%, to $88,000.

For the quarter ended September 30, 2017, the Company reported net income of $88,000 or $.08 basic and diluted earnings per share. Net income totaled $82,000 or $.07 basic and diluted earnings per share for the quarter ended September 30, 2016. An increase in net interest income, plus lower non-interest expense, offset a drop in non-interest income and resulted in higher net income compared to the same period a year earlier.

Net interest income increased 2% to $667,000 for the three months ended September 30, 2017. Total interest income rose $19,000 or 3%, while interest expense increased $5,000, or 5%. Net interest margin for the quarter was 4.10%, compared to 4.17% a year earlier.

Loan loss provisions were $15,000 for the quarter-ended September 30, 2017, and $20,000 for the year-earlier period. 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 was lower by $74,000 or 42%, compared to the year-earlier period. This change was partially due to gain on sale of securities totaling $39,000 during the same quarter last year. In addition, courtesy fee waivers and other actions related to the bank’s first quarter 2018 core data conversion led to a $25,000, or 37%, reduction in service charges on deposit accounts compared to first quarter 2017.

Non-interest expense decreased $52,000 or 7%. Due to use of negotiated data system conversion expense credits, computer processing fees fell $74,000 or 75% during the quarter ended September 30, 2017. Also contributing to the overall decrease in non-interest expense, advertising was $12,000 or 41% lower than the same period a year earlier. Partially offsetting expense reductions, salaries and employee benefits increased $46,000 or 16% and repossessed property expense increased $17,000 compared to a year earlier.

At September 30, 2017, total assets were $69.4 million, a decline of $269,000 from $69.7 million at June 30, 2017. During fiscal first quarter 2018, cash and cash equivalents decreased $1.1 million, interest-bearing deposits declined $200,000, and investment securities dropped $353,000. Total loans increased $1.6 million or 3%, to $49.3 million, from $47.7 million at June 30, 2017.

Loans delinquent 90 days or more decreased 25% to $524,000, or 1.1% of total loans at September 30, 2017. Three months earlier, non-performing loans were at $695,000 or 1.5% of total loans. Non-performing assets, which includes non-performing loans, decreased 30% to $556,000, or 0.8% of total assets, at September 30, 2017. Non-performing assets totaled $797,000, or 1.1% of assets, at June 30, 2017. Non-performing assets included $32,000 in Other Real Estate Owned (“OREO”) and other repossessed properties at September 30, 2017, compared to $102,000 three months earlier.

The allowance for loan losses was $483,000 at September 30, 2017, compared to $469,000 at June 30, 2017. Loan loss allowances were 0.98% of total loans at September 30, 2017, and also 0.98% at June 30, 2017. Net loans charged off during the quarter ended September 30, 2017 totaled $1,000, compared to $32,000 for the first quarter of fiscal 2017. 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, 2017 to be adequate to cover probable incurred losses inherent in the loan portfolio at that date.

Total deposits showed little overall change since June 30, 2017 and were $50.1 million as of September 30, 2017. Total borrowings were also unchanged at $10.0 million for quarters-ended September 30, 2017 and June 30, 2017.

Shareholders’ equity was $8.9 million or 12.8% of total assets at September 30, 2017. Factors affecting shareholders’ equity during the quarter included net income, quarterly cash dividends of $.04 per share, and a $4,000 net increase in the market value of securities available for sale. Based on 1,166,002 shares outstanding, the Company’s book value per share was $7.63 at September 30, 2017.

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:		2017				2016
Net Interest Income		$	667			$	652
Provision for Loan Losses			15				20
Non-interest Income			104				178
Non-interest Expense			659				712
Income Tax			8				16
Net Income			88				82
Basic Earnings Per Share:		$	.08			$	.07
Diluted Earnings Per Share:			.08				.07
Average Shares Outstanding - Basic			1,165,458				1,165,645
Average Shares Outstanding - Diluted			1,165,623				1,165,745
		September 30,				June 30,
		2017				2017
Total Assets		$	69,448			$	69,717
Total Loans			49,264				47,714
Allowance for Loan Losses			483				469
Total Deposits			50,147				50,171
Borrowings			10,000				10,000
Shareholders’ Equity			8,893				8,847
Non-Performing Assets			556				797
Non-Performing Loans			524				695
Non-Performing Assets to Total Assets			0.80	%			1.14	%
Non-Performing Loans to Total Loans			1.06	%			1.46	%
Book Value Per Share*		$	7.63			$	7.59

*Based on 1,166,002 shares at September 30, 2017 and June 30, 2017.

View source version on businesswire.com: http://www.businesswire.com/news/home/20171107006056/en/

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

Source: Home Financial Bancorp

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