EXHIBIT 99
PRESS RELEASE FOR IMMEDIATE RELEASE
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Contact: Preston Bair, Chief Financial Officer
Telephone: (740) 622-0444
HOME LOAN FINANCIAL CORPORATION REPORTS
EARNINGS FOR THE QUARTER ENDED MARCH 31, 2005
Coshocton, Ohio, April 20, 2005 - Home Loan Financial Corporation (Nasdaq:HLFC),
the parent company of The Home Loan Savings Bank, today announced net income of
$271,000 or $.17 basic and diluted earnings per share, for the quarter ended
March 31, 2005 compared to net income of $431,000, or $.27 basic and diluted
earnings per share, for the quarter ended March 31, 2004, a decrease of
$160,000, or 37.1%.
The decrease in earnings for the quarter ended March 31, 2005 compared
with March 31, 2004, was primarily attributable to a decrease in net interest
income of $96,000, an increase in provision for loan losses of $50,000 and an
increase in noninterest expense of $140,000, partially offset by an increase in
noninterest income of $42,000 and a decrease in income tax expense of $85,000.
The increase in the provision for loan losses compared to March 31, 2004 was
primarily due to the increase in nonperforming loans at March 31, 2005. The
decrease in net interest income was primarily due to a decrease in net interest
margin partially offset by an increase in average earning assets. The net
interest margin for the three months ended March 31, 2005 was 3.78% compared to
4.03% for the three months ended March 31, 2004. The increase in noninterest
expense was primarily due to increases in salaries and benefits and other costs
associated with the Mount Vernon branch, which opened in January 2005.
Return on average equity and return on average assets for the three
months ended March 31, 2005 were 4.70% and 0.67%, respectively. The book value
of HLFC's common stock was $13.49 per share as of March 31, 2005 compared to
$13.46 per share as of March 31, 2004.
Total assets at March 31, 2005 were $160.3 million compared to June 30,
2004 assets of $160.0 million, an increase of $300,000, or 0.20%. The increase
in total assets was primarily in premises and equipment, which increased
$773,000, loans net, which increased $444,000 and other assets, which increased
$321,000 partially offset by a decrease in investments of $1,102,000 and a
decrease in cash and cash equivalents of $324,000. Total deposits at March 31,
2005 were $90.2 million compared to June 30, 2004 deposits of $87.9 million, an
increase of $2.3 million, or 2.67%. Total equity at March 31, 2005 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
March 31, 2005 June 30, 2004
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ASSETS
Cash and cash equivalents $ 2,951,194 $ 3,275,185
Securities available for sale 7,202,346 7,105,703
Mortgage-backed securities available for sale 9,122,682 10,321,735
Federal Home Loan Bank stock 2,324,500 2,250,700
Loans, net 131,994,080 131,549,778
Premises and equipment, net 2,154,418 1,380,927
Accrued interest receivable 746,965 719,141
Bank owned life insurance 3,114,970 3,016,864
Other assets 731,342 410,239
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Total assets $ 160,342,497 $ 160,030,272
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LIABILITIES
Deposits $ 90,202,444 $ 87,853,639
Federal Home Loan Bank advances 46,210,451 48,756,389
Accrued interest payable 567,885 503,994
Accrued expenses and other liabilities 576,074 606,824
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Total liabilities 137,556,854 137,720,846
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 14,704,892 14,508,999
Retained earnings 14,632,708 14,722,513
Unearned employee stock ownership plan shares (554,375) (773,982)
Unearned recognition and retention plan shares (171,279) (189,779)
Treasury stock, at cost - 559,343 shares at (5,799,467) (5,818,102)
March 31, 2005 and 566,543 shares at June 30, 2004
Accumulated other comprehensive income (26,836) (140,223)
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Total shareholders' equity 22,785,643 22,309,426
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Total liabilities and shareholders' equity $ 160,342,497 $ 160,030,272
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CONSOLIDATED STATEMENTS OF INCOME
Three Months Ended Nine Months Ended
March 31, March 31,
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2005 2004 2005 2004
---- ---- ---- ----
Total interest income $2,343,391 $2,422,810 $7,159,160 $7,214,475
Total interest expense 926,173 909,422 2,760,814 2,760,682
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Net interest income 1,417,218 1,513,388 4,398,346 4,453,793
Provision for loan losses 90,000 40,000 301,000 85,000
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Net interest income after
provision for loan losses 1,327,218 1,473,388 4,097,346 4,368,793
Total noninterest income 183,267 141,670 615,234 548,073
Total noninterest expense 1,093,942 953,467 3,027,697 2,856,745
---------- ---------- ---------- ----------
Income before income
tax expense 416,543 661,591 1,684,883 2,060,121
Income tax expense 145,900 231,000 588,000 705,900
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Net income $ 270,643 $ 430,591 $1,096,883 $1,354,221
========== ========== ========== ==========
Basic earnings per share $ .17 $ .27 $ .68 $ .87
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Diluted earnings per share $ .17 $ .27 $ .67 $ .85
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KEY OPERATING RATIOS
As of or For The As of or For The
Three Months Ended Nine Months Ended
March 31, March 31,
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2005 2004 2005 2004
---- ---- ---- ----
Net interest margin 3.78% 4.03% 3.89% 4.06%
Return on average assets 0.67% 1.11% 0.91% 1.19%
Return on average equity 4.70% 7.59% 6.40% 8.11%
Total equity to total assets 14.21% 14.45% 14.21% 14.45%
Common shares outstanding 1,688,907 1,691,270 1,688,907 1,691,270
Book value per share $ 13.49 $ 13.46 $ 13.49 $ 13.46
Nonperforming assets to
total assets 1.35% 1.16% 1.35% 1.16%