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 MARCH 31, 2004
Coshocton, Ohio, April 21, 2004 - Home Loan Financial Corporation (Nasdaq:HLFC),
the parent company of The Home Loan Savings Bank, today announced net income of
$431,000 or $.27 basic and diluted earnings per share, for the quarter ended
March 31, 2004 compared to net income of $423,000, or $.28 basic and $.27
diluted earnings per share, for the quarter ended March 31, 2003, an increase of
$8,000, or 1.9%.
The increase in earnings for the quarter ended March 31, 2004 compared
with March 31, 2003, was primarily attributable to increases in net interest
income of $118,000 and a decrease in provision for loan losses of $15,000,
offset by a decrease in noninterest income of $53,000, an increase in
noninterest expense of $56,000 and an increase in income tax expense of $16,000.
The increase in net interest income was primarily due to an increase in average
earning assets. The net interest margin for the three months ended March 31,
2004 was 4.03% compared to 4.12% for the three months ended March 31, 2003. The
decrease in noninterest income was primarily due to HLFC's decrease in earnings
from its partially-owned subsidiary and a decrease in gains on 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 due to the
increased price of HLFC's stock.
Return on average equity and return on average assets for the three
months ended March 31, 2004 were 7.59% and 1.11%, respectively. The book value
of HLFC's common stock was $13.46 per share as of March 31, 2004 compared to
$12.84 per share as of March 31, 2003, an increase of $0.62 or 4.8%.
Total assets at March 31, 2004 were $157.5 million compared to June 30,
2003 assets of $147.8 million, an increase of $9.7 million, or 6.6%. The
increase in total assets was primarily in loans, which increased $8.7 million.
Total deposits at March 31, 2004 were $84.1 million compared to June 30, 2003
deposits of $86.0 million, a decrease of $1.9 million, or 2.2%. Total borrowings
at March 31, 2004 were $49.4 million compared to $38.7 million at June 30, 2003,
an increase of $10.7 million, or 27.6%. The additional borrowings were used to
fund a capital leveraging strategy and to fund loan demand. Total equity at
March 31, 2004 was $22.8 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
March 31, 2004 June 30, 2003
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ASSETS
Cash and cash equivalents $ 3,372,839 $ 4,012,397
Securities available for sale 7,444,659 7,536,746
Mortgage-backed securities available for sale 11,629,341 9,850,287
Federal Home Loan Bank stock 2,228,600 2,162,900
Loans, net 130,415,286 121,759,596
Premises and equipment, net 1,150,350 1,218,370
Accrued interest receivable 737,939 738,357
Other assets 541,648 504,077
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Total assets $ 157,520,662 $ 147,782,730
============= =============
LIABILITIES
Deposits $ 84,086,940 $ 85,953,036
Federal Home Loan Bank advances 49,401,303 38,720,382
Accrued interest payable 558,389 580,142
Accrued expenses and other liabilities 707,484 818,719
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Total liabilities 134,754,116 126,072,279
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 14,406,275 14,166,911
Retained earnings 14,610,708 14,514,056
Unearned employee stock ownership plan shares (850,366) (1,067,434)
Unearned recognition and retention plan shares (196,215) (256,212)
Treasury stock, at cost - 556,980 shares at (5,598,401) (6,090,975)
March 31, 2004 and 596,305 shares at June 30, 2003
Accumulated other comprehensive income 394,545 444,105
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Total shareholders' equity 22,766,546 21,710,451
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Total liabilities and shareholders' equity $ 157,520,662 $ 147,782,730
============= =============
CONSOLIDATED STATEMENTS OF INCOME
Three Months Ended Nine Months Ended
March 31, March 31,
--------- ---------
2004 2003 2004 2003
---- ---- ---- ----
Total interest income $2,422,810 $2,354,830 $7,214,475 $7,277,555
Total interest expense 909,422 959,101 2,760,682 3,006,214
---------- ---------- ---------- ----------
Net interest income 1,513,388 1,395,729 4,453,793 4,274,341
Provision for loan losses 40,000 55,000 85,000 150,000
---------- ---------- ---------- ----------
Net interest income after
provision for loan losses 1,473,388 1,340,729 4,368,793 4,121,341
Total noninterest income 141,670 194,661 548,073 526,890
Total noninterest expense 953,467 897,742 2,856,745 2,638,177
---------- ---------- ---------- ----------
Income before income
tax expense 661,591 637,648 2,060,121 2,010,054
Income tax expense 231,000 215,100 705,900 677,300
---------- ---------- ---------- ----------
Net income $ 430,591 $ 422,548 $1,354,221 $1,332,754
========== ========== ========== ==========
Basic earnings per share $ .27 $ .28 $ .87 $ .90
========== ========== ========== ==========
Diluted earnings per share $ .27 $ .27 $ .85 $ .87
========== ========== ========== ==========
KEY OPERATING RATIOS
As of or For The As of or For The
Three Months Ended Nine Months Ended
March 31, March 31,
--------- ---------
2004 2003 2004 2003
---- ---- ---- ----
Net interest margin 4.03% 4.12% 4.06% 4.24%
Return on average assets 1.11% 1.20% 1.19% 1.28%
Return on average equity 7.59% 7.96% 8.11% 8.55%
Total equity to total assets 14.45% 14.31% 14.45% 14.31%
Common shares outstanding 1,691,270 1,642,745 1,691,270 1,642,745
Book value per share $13.46 $12.84 $13.46 $12.84
Nonperforming assets to
total assets 1.16% 0.20% 1.16% 0.20%
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