EXHIBIT 99
PRESS RELEASE FOR IMMEDIATE RELEASE
Contact: Preston Bair, Chief Financial Officer
Telephone: (740) 622-0444
HOME LOAN FINANCIAL CORPORATION REPORTS
EARNINGS FOR THE QUARTER AND YEAR ENDED JUNE 30, 2003
Coshocton, Ohio, July 23, 2003 - Home Loan Financial Corporation (Nasdaq:HLFC),
the parent company of The Home Loan Savings Bank, today announced net income of
$541,000, or $.35 basic and diluted earnings per share for the quarter ended
June 30, 2003 compared to net income of $348,000, or $.23 basic and diluted
earnings per share for the quarter ended June 30, 2002, an increase of $193,000,
or 55.3%.
The increase in earnings for the quarter ended June 30, 2003 compared
with June 30, 2002, was primarily attributable to increases in net interest
income of $174,000 and noninterest income of $209,000, partially offset by
increases in noninterest expense of $78,000 and income taxes of $97,000. The
increase in net interest income was primarily due to an increase in average
earning assets. The increase in noninterest income was primarily due to HLFC's
earnings from its ownership in Coshocton County Title Agency ("CCTA"). The
increase in noninterest expense was primarily due to increases in salaries and
benefits due to additional staff and an increase in ESOP expense due to the
elevated price of HLFC's stock.
Net income for the year ended June 30, 2003 was $1,874,000, or $1.25
basic and $1.21 diluted earnings per share, compared to $1,475,000 for the year
ended June 30, 2002, or $.99 basic and $.96 diluted earnings per share, an
increase of $399,000, or 27.0%.
The increase in earnings for the year ended June 30, 2003 compared with
June 30, 2002 was primarily attributable to increases in net interest income of
$514,000 and noninterest income of $399,000 partially offset by increases in
noninterest expense of $269,000 and income taxes of $176,000.
The increase in net interest income was primarily due to an increase in
average earning assets, partially offset by a slight decrease in the net
interest margin. The increase in noninterest income was primarily attributable
to the earnings from CCTA and the gains from the sale of loans. The increase in
noninterest expense was primarily due to increases in salaries and benefits due
to additional staff and an increase in ESOP expense.
The net interest margin for the three months ended June 30, 2003 was
4.24%. Return on average equity and return on average assets for the three
months ended June 30, 2003 were 10.08% and 1.47%, respectively. The book value
of HLFC's common stock was $13.14 per share as of June 30, 2003 compared to
$12.22 per share as of June 30, 2002, an increase of $.92, or 7.5%.
Total assets at June 30, 2003 were $147.8 million compared to June 30,
2002 assets of $132.3 million, an increase of $15.5 million, or 11.7%. The
increase in total assets was primarily in loans, which increased $10.7 million.
Total deposits at June 30, 2003 were $86.0 million compared to June 30, 2002
deposits of $79.8 million, an increase of $6.2 million, or 7.7%. Total equity at
June 30, 2003 was $21.7 million compared to $20.1 million at June 30, 2002.
Home Loan Financial Corporation and The Home Loan Savings Bank are
headquartered at 401 Main Street, Coshocton, Ohio 43812. The Bank has two
offices in Coshocton, Ohio and a branch in West Lafayette, Ohio.
HOME LOAN FINANCIAL CORPORATION
CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
June 30, 2003 June 30, 2002
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ASSETS
Cash and cash equivalents $ 4,012,397 $ 2,931,785
Securities available for sale 7,536,746 4,413,516
Mortgage-backed securities available for sale 9,850,287 9,738,990
Federal Home Loan Bank stock 2,162,900 1,927,100
Loans, net 121,759,596 111,017,080
Premises and equipment, net 1,218,370 1,278,592
Accrued interest receivable 738,357 651,707
Other assets 504,077 322,366
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Total assets $ 147,782,730 $ 132,281,136
============= =============
LIABILITIES
Deposits $ 85,953,036 $ 79,773,087
Federal Home Loan Bank advances 38,720,382 28,802,335
Due to broker on security purchase -- 2,392,006
Accrued interest payable 580,142 590,581
Accrued expenses and other liabilities 818,719 578,626
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Total liabilities 126,072,279 112,136,635
SHAREHOLDERS' EQUITY
Preferred stock, no par value, 500,000 shares authorized,
none outstanding -- --
Common stock, no par value, 9,500,000 shares authorized,
2,248,250 shares issued -- --
Additional paid-in capital 14,166,911 14,100,870
Retained earnings 14,514,056 13,831,012
Unearned employee stock ownership plan shares (1,067,434) (1,354,006)
Unearned recognition and retention plan shares (256,212) (434,692)
Treasury stock, at cost - 596,305 shares at (6,090,975) (6,186,296)
June 30, 2003 and 599,188 shares at
June 30, 2002
Accumulated other comprehensive income 444,105 187,613
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Total shareholders' equity 21,710,451 20,144,501
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Total liabilities and shareholders' equity $ 147,782,730 $ 132,281,136
============= =============
CONSOLIDATED STATEMENTS OF INCOME
Three Months Ended Year Ended
June 30, June 30,
-------- --------
2003 2002 2003 2002
---- ---- ---- ----
Total interest income $2,451,250 $2,300,283 $9,728,805 $9,497,338
Total interest expense 967,126 989,945 3,973,340 4,256,206
---------- ---------- ---------- ----------
Net interest income 1,484,124 1,310,338 5,755,465 5,241,132
Provision for loan losses 40,000 25,000 190,000 120,000
---------- ---------- ---------- ----------
Net interest income after
provision for loan losses 1,444,124 1,285,338 5,565,465 5,121,132
Total noninterest income 304,303 95,193 831,193 431,921
Total noninterest expense 921,224 843,386 3,559,401 3,290,039
---------- ---------- ---------- ----------
Income before income
tax expense 827,203 537,145 2,837,257 2,263,014
Income tax expense 286,300 188,900 963,600 787,600
---------- ---------- ---------- ----------
Net income $ 540,903 $ 348,245 $1,873,657 $1,475,414
========== ========== ========== ==========
Basic earnings per share $ .35 $ .23 $ 1.25 $ .99
========== ========== ========== ==========
Diluted earnings per share $ .35 $ .23 $ 1.21 $ .96
========== ========== ========== ==========
KEY OPERATING RATIOS
At or For The At or For The
Three Months Ended Year Ended
June 30, June 30,
-------- --------
2003 2002 2003 2002
---- ---- ---- ----
Net interest margin* 4.24% 4.28% 4.28% 4.29%
Return on average assets 1.47% 1.09% 1.33% 1.17%
Return on average equity 10.08% 6.93% 8.94% 7.43%
Total equity to total assets 14.69% 15.23% 14.69% 15.23%
Common shares outstanding 1,651,945 1,649,062 1,651,945 1,649,062
Book value per share $ 13.14 $ 12.22 $ 13.14 $ 12.22
Nonperforming assets to
total assets 0.49% 1.08% 0.49% 1.08%
*Net interest margin has been calculated on a fully tax equivalent basis.