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, 2004
Coshocton, Ohio, January 19, 2005 - Home Loan Financial Corporation
(Nasdaq:HLFC), the parent company of The Home Loan Savings Bank, today announced
net income of $416,000, or $0.26 basic and diluted earnings per share, for the
quarter ended December 31, 2004, compared to net income of $429,000, or $.27
basic and diluted earnings per share, for the quarter ended December 31, 2004, a
decrease of $13,000, or 3.04%.
The decrease in earnings for the quarter ended December 31, 2004,
compared with December 31, 2003, was primarily attributable to an increase in
the provision for loan losses of $60,000, partially offset by an increase in net
interest income of $43,000.
The increase in the provision for loan losses compared to December 31, 2003 was
primarily due to the increase in nonperforming loans at December 31, 2004. The
increase in net interest income was primarily due to an increase in average
earning assets partially offset by a decrease in the net interest margin. The
net interest margin for the three months ended December 31, 2004 was 3.94%
compared to 3.99% for the three months ended December 31, 2003.
Return on average equity and return on average assets for the six
months ended December 31, 2004 were 7.25% and 1.03%, respectively. The book
value of HLFC's common stock was $13.51 per share as of December 31, 2004
compared to $13.27 per share as of December 31, 2003, an increase of $0.24, or
1.81%.
Total assets at December 31, 2004 were $160.3 million compared to June
30, 2004 assets of $160.0 million, an increase of $300,000, or 0.16%. The
increase in total assets was primarily in premises and equipment, which
increased $756,000 and loans, net which increased $403,000, partially offset by
a decrease of $714,000 in cash and cash equivalents. The increase in premises
and equipment was due to the construction of the Mount Vernon branch, which
opened in January 2005. Total deposits at December 31, 2004 were $86.5 million
compared to June 30, 2004 deposits of $87.9 million, a decrease of $1.4 million,
or 1.6%. Total equity at December 31, 2004 was $22.8 million compared to $22.3
million at June 30, 2004.
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, a branch in West Lafayette, Ohio and a branch in
Mount Vernon, Ohio.
HOME LOAN FINANCIAL CORPORATION
CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
December 31, 2004 June 30, 2004
----------------- -------------
ASSETS
Cash and cash equivalents $ 2,561,100 $ 3,275,185
Securities available for sale 7,266,280 7,105,703
Mortgage-backed securities available for sale 9,673,990 10,321,735
Federal Home Loan Bank stock 2,299,000 2,250,700
Loans, net 131,952,499 131,549,778
Premises and equipment 2,136,441 1,380,927
Accrued interest receivable 743,954 719,141
Bank owned life insurance 3,082,396 3,016,864
Other assets 571,827 410,239
------------- -------------
Total assets $ 160,287,487 $ 160,030,272
============= =============
LIABILITIES
Deposits $ 86,487,823 $ 87,853,639
Federal Home Loan Bank advances 49,734,350 48,756,389
Accrued interest payable 537,334 503,994
Accrued expenses and other liabilities 710,674 606,824
------------- -------------
Total liabilities 137,470,181 137,720,846
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 14,639,594 14,508,999
Retained earnings 14,678,422 14,722,513
Unearned employee stock ownership plan shares (627,577) (773,982)
Unearned recognition and retention plan shares (176,910) (189,779)
Treasury stock, at cost - 559,343 shares at (5,799,467) (5,818,102)
December 31, 2004 and 566,543 shares at
June 30, 2004
Accumulated other comprehensive income 103,244 (140,223)
------------- -------------
Total shareholders' equity 22,817,306 22,309,426
------------- -------------
Total liabilities and shareholders' equity $ 160,287,487 $ 160,030,272
============= =============
CONSOLIDATED STATEMENTS OF INCOME
Three Months Ended Six Months Ended
December 31, December 31,
------------ ------------
2004 2003 2004 2003
---- ---- ---- ----
Total interest income $2,411,891 $2,360,640 $4,815,769 $4,791,665
Total interest expense 920,572 912,689 1,834,641 1,851,260
---------- ---------- ---------- ----------
Net interest income 1,491,319 1,447,951 2,981,128 2,940,405
Provision for loan losses 90,000 30,000 211,000 45,000
---------- ---------- ---------- ----------
Net interest income after
provision for loan losses 1,401,319 1,417,951 2,770,128 2,895,405
Total noninterest income 203,254 182,724 431,967 406,403
Total noninterest expense 964,488 950,069 1,933,755 1,903,278
---------- ---------- ---------- ----------
Income before income
tax expense 640,085 650,606 1,268,340 1,398,530
Income tax expense 224,400 221,900 442,100 474,900
---------- ---------- ---------- ----------
Net income $ 415,685 $ 428,706 $ 826,240 $ 923,630
========== ========== ========== ==========
Basic earnings per share $ .26 $ .27 $ .51 $ .59
========== ========== ========== ==========
Diluted earnings per share $ .26 $ .27 $ .51 $ .58
========== ========== ========== ==========
KEY OPERATING RATIOS
At or For The At or For The
Three Months Ended Six Months Ended
December 31, December 31,
------------ ------------
2004 2003 2004 2003
---- ---- ---- ----
Net interest margin 3.94% 3.99% 3.93% 4.08%
Return on average assets 1.03% 1.15% 1.03% 1.24%
Return on average equity 7.26% 7.76% 7.25% 8.38%
Total equity to total assets 14.24% 14.84% 14.24% 14.84%
Common shares outstanding 1,688,907 1,673,570 1,688,907 1,673,570
Book value per share $13.51 $13.27 $13.51 $13.27
Nonperforming assets to
total assets 1.32% 1.01% 1.32% 1.01%