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 AND YEAR ENDED JUNE 30, 2005
Coshocton, Ohio, July 27, 2005 - Home Loan Financial Corporation (Nasdaq:HLFC),
the parent company of The Home Loan Savings Bank, today announced net income of
$194,000, or $.12 basic and diluted earnings per share for the quarter ended
June 30, 2005 compared to net income of $431,000, or $.27 basic and diluted
earnings per share for the quarter ended June 30, 2004, a decrease of $237,000,
or 55.1%.
The decrease in earnings for the quarter ended June 30, 2005 compared with
June 30, 2004, was primarily attributable to decreases in net interest income of
$148,000 and noninterest income of $71,000 and increases in the provision for
loan loss of $94,000 and noninterest expense of $90,000, partially offset by a
decrease in income tax expense of $166,000. The decrease in net interest income
was due to a decrease in the net interest margin partially offset by an increase
in average earning assets. The decrease in noninterest income was primarily due
to a nonrecurring gain on sales of securities available for sale of $115,000 in
2004, partially offset in 2005 by an increase in gains on the sale of loans of
$32,000 and an increase of $15,000 in the value of bank owned life insurance.
The increase in the provision for loan loss was primarily due to a decline
in the value of rental real estate which resulted in the Company establishing
specific reserves on certain nonperforming loans combined with an increase in
the level of nonperforming loans due to general economic conditions in HLFC's
market area. 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.
Net income for the year ended June 30, 2005 was $1,290,000, or $0.80 basic
and $0.79 diluted earnings per share, compared to $1,785,000 for the year ended
June 30, 2004, or $1.13 basic and $1.11 diluted earnings per share, a decrease
of $495,000, or 27.7%.
The decrease in earnings for the year ended June 30, 2005 compared with
June 30, 2004 was primarily attributable to a decrease in net interest income of
$204,000 and increases in the provision for loan loss of $310,000 and
noninterest expense of $261,000, partially offset by a decrease of $284,000 in
income tax expense.
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
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. The increase in the provision for loan losses was previously
discussed.
The net interest margin for the three months ended June 30, 2005 was 3.75%.
Return on average equity and return on average assets for the three months ended
June 30, 2005 were 3.35% and 0.48%, respectively. The book value of HLFC's
common stock was $13.51 per share as of June 30, 2005 compared to $13.27 per
share as of June 30, 2004, an increase of $.24, or 1.8%.
Total assets at June 30, 2005 were $162.1 million compared to June 30, 2004
assets of $160.0 million, an increase of $2.1 million, or 1.3%. The increase in
total assets was primarily due to increases in cash and cash equivalents of $2.0
million and premises and equipment of $848,000, partially offset by a decrease
in mortgage-backed securities of $1.6 million. Total liabilities increased $1.4
million, or 1.0%, compared to June 30, 2004. The increase is primarily a result
of a $4.8 million increase in total deposits which was partially offset by a
$3.6 million decrease in FHLB advances. Total equity at June 30, 2005 was $23.0
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 Home Loan Savings
Bank has two offices located in Coshocton, Ohio, a branch in West Lafayette,
Ohio and a branch in Mt. Vernon, Ohio.
HOME LOAN FINANCIAL CORPORATION
CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
June 30, 2005 June 30, 2004
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ASSETS
Cash and cash equivalents $ 5,242,892 $ 3,275,185
Interest bearing time deposits 500,762 --
Securities available for sale 7,256,203 7,105,703
Mortgage-backed securities available for sale 8,691,644 10,321,735
Federal Home Loan Bank stock 2,352,700 2,250,700
Loans, net 131,013,785 131,549,778
Premises and equipment, net 2,228,933 1,380,927
Accrued interest receivable 815,055 719,141
Bank owned life insurance 3,147,036 3,016,864
Other assets 803,826 410,239
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Total assets $ 162,052,836 $ 160,030,272
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LIABILITIES
Deposits $ 92,732,451 $ 87,853,639
Federal Home Loan Bank advances 45,144,836 48,756,389
Accrued interest payable 564,501 503,994
Accrued expenses and other liabilities 651,862 606,824
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Total liabilities 139,093,650 137,720,846
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 14,745,661 14,508,999
Retained earnings 14,463,377 14,722,513
Unearned employee stock ownership plan shares (492,319) (773,982)
Unearned recognition and retention plan shares (165,809) (189,779)
Treasury stock, at cost - 548,337 shares at (5,668,771) (5,818,102)
June 30, 2005 and 566,543 shares at
June 30, 2004
Accumulated other comprehensive income 77,047 (140,223)
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Total shareholders' equity 22,959,186 22,309,426
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Total liabilities and shareholders' equity $ 162,052,836 $ 160,030,272
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CONSOLIDATED STATEMENTS OF INCOME
Three Months Ended Year Ended
June 30, June 30,
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2005 2004 2005 2004
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Total interest income $2,404,085 $2,428,407 $9,563,245 $9,642,882
Total interest expense 996,111 871,916 3,756,925 3,632,598
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Net interest income 1,407,974 1,556,491 5,806,320 6,010,284
Provision for loan losses 360,000 266,000 661,000 351,000
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Net interest income after
provision for loan losses 1,047,974 1,290,491 5,145,320 5,659,284
Total noninterest income 258,616 329,674 873,850 877,747
Total noninterest expense 1,009,856 920,037 4,037,553 3,776,782
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Income before income
tax expense 296,734 700,128 1,981,617 2,760,249
Income tax expense 103,200 268,921 691,200 974,821
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Net income $ 193,534 $ 431,207 $1,290,417 $1,785,428
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Basic earnings per share $.12 $ .27 $ .80 $ 1.13
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Diluted earnings per share $ .12 $ .27 $ .79 $ 1 11
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KEY OPERATING RATIOS
At or For The At or For The
Three Months Ended Year Ended
June 30, June 30,
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2005 2004 2005 2004
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Net interest margin* 3.75% 4.15% 3.86% 4.11%
Return on average assets 0.48% 1.09% 0.80% 1.17%
Return on average equity 3.35% 7.58% 5.63% 7.97%
Total equity to total assets 14.17% 13.94% 14.17% 13.94%
Common shares outstanding 1,699,913 1,681,707 1,699,913 1,681,707
Book value per share $13.51 $13.27 $13.51 $13.27
Nonperforming assets to
total assets 1.36% 0.95% 1.36% 0.95%
* Net interest margin has been calculated on a fully taxed equivalent basis.