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
January 28, 1998
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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 January 20, 1998, the Registrant issued the attached
Press Release.
ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS
(c) Exhibits
1. Press Release, dated January 20, 1998.
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: January 28, 1998 By: /s/ C. Steven Sjogren
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C. Steven Sjogren
President and
Chief Executive Officer
HOMECORP, INC. REPORTS ANNUAL AND FOURTH QUARTER EARNINGS
Rockford, Illinois, January 20, 1998 - HomeCorp, Inc. (NASDAQ:HMCI), the parent
company for HomeBanc, fsb today reported earnings for the full year 1997 and the
quarter ended December 31, 1997.
Earnings for the twelve months ended December 31, 1997 totaled $1,558,372 or
$0.91 per share as compared to $358,831 or $0.21 per share for the year earlier.
Earnings for the year 1996 were impacted by the special assessment paid in
September 1996 to fully capitalize the Federal Deposit Insurance Corporation's,
Savings Association Insurance Fund (SAIF).
Net interest income for the year 1997 increased 2.2% over the year 1996. The
Bank's net interest margin also increased to 3.18% for the twelve months ended
December 31, 1997 up from 3.04% for the same twelve month period of 1996.
Loan fees and service charges for the year 1997 were $1,878,130, up 10.53% over
the prior year. Income from real estate development activities totaled
$1,058,621 during 1997, an increase of nearly 23% over the year 1996. The
Company's investment in real estate developments continues to decline. The
Company's investment declined by nearly $1.4 million or 27% during the year
ended December 31, 1997.
Non-interest expenses for the twelve months ended December 31, 1997 increased
approximately 1.2% over the same period in 1996, excluding the one-time SAIF
Special Assessment paid last year.
The provision for loan losses of $555,000 made during the year, brings the total
allowance for possible loan losses, net of charge-offs, to $1,844,189 at
December 31, 1997, approximating .72% of net loan receivable as of that date.
Real estate owned was reduced by approximately $4.5 million during the year,
largely as a result of the sale of real estate located in Michigan. These funds
have been re-invested in the Company's operations and should provide a positive
contribution to future earnings.
The Company had total assets of $331.9 million and deposits of $306.2 million at
December 31, 1997. Stockholders' equity increased 8.14% over the prior year and
at December 31, 1997 was nearly $22.6 million, representing a fully diluted book
value of $12.39 per share.
For the three months ended December 31, 1997, HomeCorp's net income was $216,250
or $0.12 per share compared to $348,609 or $0.20 per share in the fourth quarter
1996.
Earnings for the fourth quarter of 1997 were primarily impacted by lower income
from real estate development activities. Increases in net interest income and
loan fees and service charges were recorded for the fourth quarter compared to
the same period last year. Additionally, non-interest operating expenses
declined slightly when compared to the year earlier quarter.
During the fourth quarter, HomeCorp announced plans to merge with Mercantile
Bancorporation Inc. (NYSE:MTL), the St. Louis-based bank holding company. The
process of acquiring the required approvals is underway, and we anticipate a
closing during the first quarter of 1998.
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
12/31/97 12/31/96
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Selected Balance Sheet Data:
Total Assets $331,873,008 $335,824,474
Loans Receivable, Net 257,735,034 259,139,564
Loans Held for Sale 1,950,067 1,872,513
Mortgage-Backed Securities 15,032,516 18,858,630
Investment Securities 4,500,260 5,502,353
Securities Held For Sale 18,374,883 12,496,885
Investment in Real Estate Dev. 3,701,504 5,094,960
Deposits 306,225,804 311,754,446
Total Borrowings - -
Stockholders' Equity $ 22,556,595 $ 20,858,256
Book Value Per Share + * $ 13.20 $ 12.32
Book Value Per Share-Fully Diluted* $ 12.39 $ 11.82
Stockholders' Equity
to Total Assets 6.80% 6.21%
+ 1,708,552 Shares Outstanding at December 31, 1997.
Three Months Ended Twelve Months Ended
12/31/97 12/31/96 12/31/97 12/31/96
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Selected Operating Data:
Total Interest Income $ 6,103,605 $ 6,208,339 $24,248,187 $24,381,306
Total Interest Expense 3,648,959 3,779,541 14,541,922 14,885,227
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Net Interest Income 2,454,646 2,428,798 9,706,265 9,496,079
Provision for Loan Losses 335,000 170,000 555,000 565,000
Loss Provision for Real Estate - 346,000 505,000 346,000
Loan Fees and Service Charges 461,893 447,136 1,878,130 1,699,220
Income from Real Estate 37,731 486,629 1,058,621 861,175
REO Operations 120,405 120,162 481,019 471,109
Other Non-Interest Operating Income 21,641 59,598 164,019 165,512
Non-Interest Operating Expense 2,638,704 2,673,362 10,227,971 10,110,528
SAIF Special Assessment - - - 2,042,942
Net Gains on Sale of Investments,
Mortgage-Backed Securities
and Loans 218,038 203,849 512,264 933,314
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Income/(Loss) Before Income Taxes 340,650 556,810 2,512,347 561,939
Income Tax Expense/(Benefits) 124,400 208,201 953,975 203,108
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Net Income/(Loss) $ 216,250 $ 348,609 $ 1,558,372 $ 358,831
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Earnings Per Share:*
Net Income/(Loss)
Basic $0.12 $0.20 $0.91 $0.21
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Diluted $0.11 $0.19 $0.87 $0.20
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* Prior year per share amounts restated for three-for-two stock split in May,
1997.