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 ENDED DECEMBER 31, 2003
Coshocton, Ohio, January 21, 2004 - Home Loan Financial Corporation
(Nasdaq:HLFC), the parent company of The Home Loan Savings Bank, today announced
net income of $428,706, or $.27 basic and diluted earnings per share, for the
quarter ended December 31, 2003 compared to net income of $484,385, or $.33
basic and $.32 diluted earnings per share, for the quarter ended December 31,
2002, a decrease of $55,679 or 11.5%.
The decrease in earnings for the quarter ended December 31, 2003,
compared with December 31, 2002, was primarily attributable to a decrease in net
interest income of $28,347 and an increase in noninterest expense of $68,806,
partially offset by a decrease in provision for loan loss expense of $35,000 and
a decrease in income tax expense of $23,400. The decrease in net interest income
was primarily due to a decrease in the net interest margin. The net interest
margin for the three months ended December 31, 2003 was 3.99% compared to 4.37%
for the three months ended December 31, 2002. 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
the Company's stock.
Return on average equity and return on average assets for the six
months ended December 31, 2003 were 8.38% and 1.24%, respectively. The book
value of HLFC's common stock was $13.27 per share as of December 31, 2003
compared to $12.76 per share as of December 31, 2002, an increase of $0.51, or
4.0%.
Total assets at December 31, 2003 were $149.6 million compared to June
30, 2003 assets of $147.8 million, an increase of $1.8 million, or 1.3%. The
increase in total assets was primarily in loans, which increased $6.9 million.
Total deposits at December 31, 2003 were $84.3 million compared to June 30, 2003
deposits of $86.0 million, a decrease of $1.7 million, or 1.9%. Total equity at
December 31, 2003 was $22.2 million compared to $21.7 million at June 30, 2003.
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
December 31, 2003 June 30, 2003
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ASSETS
Cash and cash equivalents $ 2,288,852 $ 4,012,397
Securities available for sale 7,341,435 7,536,746
Mortgage-backed securities available for sale 7,004,980 9,850,287
Federal Home Loan Bank stock 2,206,700 2,162,900
Loans, net 128,648,063 121,759,596
Premises and equipment 1,169,179 1,218,370
Accrued interest receivable 673,382 738,357
Other assets 303,327 504,077
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Total assets $ 149,635,918 $ 147,782,730
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LIABILITIES
Deposits $ 84,323,160 $ 85,953,036
Federal Home Loan Bank advances 41,839,663 38,720,382
Accrued interest payable 569,705 580,142
Accrued expenses and other liabilities 697,905 818,719
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Total liabilities 127,430,433 126,072,279
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 14,345,711 14,166,911
Retained earnings 14,547,625 14,514,056
Unearned employee stock ownership plan shares (926,317) (1,067,434)
Unearned recognition and retention plan shares (202,006) (256,212)
Treasury stock, at cost - 574,680 shares at (5,808,589) (6,090,975)
December 31, 2003 and 596,305 shares at
June 30, 2003
Accumulated other comprehensive income 249,061 444,105
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Total shareholders' equity 22,205,485 21,710,451
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Total liabilities and shareholders' equity $ 149,635,918 $ 147,782,730
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CONSOLIDATED STATEMENTS OF INCOME
Three Months Ended Six Months Ended
December 31, December 31,
---------------------------- ----------------------------
2003 2002 2003 2002
---------- ---------- ---------- ----------
Total interest income $2,360,640 $2,486,025 $4,791,665 $4,922,725
Total interest expense 912,689 1,009,727 1,851,260 2,047,113
---------- ---------- ---------- ----------
Net interest income 1,447,951 1,476,298 2,940,405 2,875,612
Provision for loan losses 30,000 65,000 45,000 95,000
---------- ---------- ---------- ----------
Net interest income after
provision for loan losses 1,417,951 1,411,298 2,895,405 2,780,612
Total noninterest income 182,724 199,650 406,403 332,229
Total noninterest expense 950,069 881,263 1,903,278 1,740,435
---------- ---------- ---------- ----------
Income before income
tax expense 650,606 729,685 1,398,530 1,372,406
Income tax expense 221,900 245,300 474,900 462,200
---------- ---------- ---------- ----------
Net income $ 428,706 $ 484,385 $ 923,630 $ 910,206
========== ========== ========== ==========
Basic earnings per share $ .27 $ .33 $ .59 $ .62
========== ========== ========== ==========
Diluted earnings per share $ .27 $ .32 $ .58 $ .59
========== ========== ========== ==========
KEY OPERATING RATIOS
At or For The At or For The
Three Months Ended Six Months Ended
December 31, December 31,
------------ ------------
2003 2002 2003 2002
---- ---- ---- ----
Net interest margin 3.99% 4.37% 4.08% 4.31%
Return on average assets 1.15% 1.38% 1.24% 1.32%
Return on average equity 7.76% 9.32% 8.38% 8.85%
Total equity to total assets 14.84% 14.76% 14.84% 14.76%
Common shares outstanding 1,673,570 1,618,445 1,673,570 1,618,445
Book value per share $13.27 $12.76 $13.27 $12.76
Nonperforming assets to
total assets 1.01% 0.28% 1.01% 0.28%