SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
October 28, 1997
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Date of Report
HOMECORP, INC.
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(Exact name of registrant as specified in its charter)
DELAWARE 0-18284 36-3680814
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(State or other jurisdiction (Commission (IRS Employer
of incorporation) File Number) Identification
Number)
1107 EAST STATE STREET, ROCKFORD, IL 61104-2259
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(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (815) 987-2200
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ITEM 5. OTHER EVENT
On October 21, 1997, the Registrant issued the attached Press Release.
ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS
(c) Exhibits
1. Press Release, dated October 21, 1997.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this Report to be signed on its behalf by the
undersigned thereunto duly authorized.
HOMECORP, INC.
Date: October 28, 1997 By: /s/ C. Steven Sjogren
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C. Steven Sjogren
President and
Chief Executive Officer
HOMECORP, INC. REPORTS FINANCIAL RESULTS FOR THIRD QUARTER
Rockford, Illinois, October 21, 1997 - HomeCorp, Inc. (NASDAQ:HMCI), the parent
company for HomeBanc, fsb today announced earnings for the third quarter and
nine months ended September 30, 1997. Earnings for the third quarter were
$481,136 or $.26 per share, which brought earnings for the nine month period to
$1,342,122 or $.74. Earnings for the third quarter and nine month periods last
year were impacted by the special assessment legislated to fully capitalize the
Federal Deposit Insurance Corporation's (FDIC), Savings Association Insurance
Fund (SAIF).
The Company's earnings for the third quarter, and nine month period ended
September 30, 1997 were favorably impacted by both gains in net interest income
and loan fees and service charges. Net interest income increased 2.2% when
compared to the third quarter of last year. Net interest income for the nine
month period ended September 30, 1997 increased 2.6% over the same year earlier
period to nearly $7.3 million. The net interest margin during the third quarter
continued to improve to 3.23% up from 3.05% during the third quarter of 1996.
Loan fees and service charges during the third quarter increased 10.2% over the
corresponding quarterly period last year, and increased 13.1% over the prior
year nine month period to more than $1.4 million for the 1997 period.
Income from real estate development totaled $272,142 during the third quarter of
1997 and $1,020,890 during the first nine months of 1997 as a result of real
estate closings. This is consistent with the Company's ongoing plan to reduce
its involvement in real estate development activities. The Company's investment
in real estate developments has declined by nearly $1.4 million or 27% during
1997 to $3,738,205 at September 30, 1997.
The provision for loan losses made during the quarter, net of charge-offs,
brings the total allowance for possible loan losses to $1,618,590 at September
30, 1997, equal to .62% of net loan receivable as of that date.
Real estate owned as reduced by approximately $4.0 million during the third
quarter as a result of the closing of the sale of a piece of property located in
Michigan. These funds have been re-employed in the Company's operations and
should provide a positive contribution to future earnings.
The Company had total assets of $326.9 million and deposits of $299.1 million at
September 30, 1997. Stockholders' equity at September 30, 1997 was $22.3
million, representing a book value of $13.07 per share.
The Bank's suit in the United States Court of Federal Claims against the United
States for breach of contract with regard to the utilization of the supervisory
goodwill as capital created when the Bank acquired failing institutions in the
1980's, has been stayed. HomeBanc, along with others is awaiting notice from
the Court of its order of priority for scheduling hearings of these claims.
HomeCorp, Inc. is the holding company for HomeBanc, fsb which operates ten
offices in Rockford, Loves Park, CherryVale, Freeport, and Dixon, Illinois.
HomeCorp's shares are traded on the NASDAQ/National Market System, using the
symbol HMCI.
SELECTED CONSOLIDATED FINANCIAL INFORMATION
09/30/97 12/31/96
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Selected Balance Sheet Data:
Total Assets $326,877,294 $335,824,474
Loans Receivable, Net 261,917,162 259,139,564
Loans Held for Sale 2,189,873 1,872,513
Mortgage-Backed Securities 16,342,000 18,858,630
Investment Securities 5,500,794 5,502,353
Securities Held For Sale 11,729,058 12,496,885
Investment in Real Estate Dev. 3,738,205 5,094,960
Deposits 299,147,543 311,754,446
Total Borrowings 2,400,000 -
Stockholders' Equity $ 22,322,459 $ 20,858,256
Book Value Per Share+* $13.07 $12.32
Book Value Per Share-Fully Diluted* $12.37 $11.82
Stockholders' Equity
to Total Assets 6.83% 6.21%
+ 1,707,527 Shares Outstanding at September 30, 1997.
Three Months Ended Nine Months Ended
09/30/97 09/30/96 09/30/97 09/30/96
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Selected Operating Data:
Total Interest Income $6,104,633 $ 6,134,173 $18,144,582 $18,172,967
Total Interest Expense 3,669,131 3,751,816 10,892,963 11,105,686
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Net Interest Income 2,435,502 2,382,357 7,251,619 7,067,281
Provision for Loan Losses 80,000 175,000 220,000 395,000
Loss Provision for Real Estate - - 505,000 -
Loan Fees and Service Charges 480,611 436,298 1,416,237 1,252,084
Income from Real Estate 272,142 388,409 1,020,890 374,546
REO Operations 120,404 120,062 360,614 350,947
Other Non-Interest Operating Income 21,193 21,565 142,378 105,914
Non-Interest Operating Expense 2,612,774 2,568,311 7,589,267 7,437,166
SAIF Special Assessment - 2,042,942 - 2,042,942
Net Gains on Sale of Investments,
Mortgage-Backed Securities
and Loans 138,658 180,697 294,226 729,465
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Income/(Loss) Before Income Taxes 775,736 (1,256,865) 2,171,697 5,129
Income Tax Expense/(Benefits) 294,600 (500,498) 829,575 (5,093)
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Net Income/(Loss) $ 481,136 $ (756,367) $ 1,342,122 $ 10,222
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Earnings Per Share:*
Net Income/(Loss) $0.26 ($0.42) $0.74 $0.01
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* Prior year per share amounts restated for three-for-two stock split in May,
1997.