SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
(Mark One)
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934 FOR THE QUARTERLY PERIOD
ENDED SEPTEMBER 30, 1996 OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934 FOR THE TRANSITION PERIOD
FROM TO
Commission file number: 0-28510
HOME FINANCIAL BANCORP
(Exact name of registrant specified in its charter)
Indiana 35-1975585
(State or other jurisdiction of (I.R.S. Employer
incororation or organization) Identification Number)
279 East Morgan Street
Spencer, Indiana 47460
(Address of principle executive offices,
including Zip Code)
(812) 829-2095
(Registrant's telephone number, including area code)
Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the preceding 12 months (or for such shorter period that the Registrant was
required to file such report), and (2) has been subject to such filing
requirements for the past 90 days. Yes [X] No [ ]
The number of shares of the Registrant's common stock, without par value,
outstanding as of November 1, 1996 was 505,926.
<PAGE>
Home Financial Bancorp
Form 10-Q
Index
PART I. FINANCIAL INFORMATION Page No.
Item 1. Financial Statements
Consolidated Condensed Statement of Financial
Condition as of September 30, 1996 and June 30, 1996
(Unaudited) 3
Consolidated Condensed Statement of Income for the three
months ended September 30, 1996 and 1995
(Unaudited) 4
Consolidated Condensed Statement of Changes in
Shareholders' Equity for the three months ended September
30, 1996 and 1995 (Unaudited) 5
Consolidated Condensed Statement of Cash Flows for the
three months ended September 30, 1996 and 1995
(Unaudited) 6
Notes to Unaudited Consolidated Condensed Financial
Statements 8
Item 2. Management's Discussion and Analysis of Financial Condition
and Results of Operations. 10
PART II. OTHER INFORMATION
Item 1. Legal Proceedings 15
Item 2. Changes in Securities 15
Item 3. Defaults Upon Senior Securities 15
Item 4. Submission of Matters to a Vote of Security Holders 15
Item 5. Other Information 15
Item 6. Exhibits and Reports on Form 8-K 15
SIGNATURES 16
2
<PAGE>
HOME FINANCIAL BANCORP
AND WHOLLY-OWNED SUBSIDIARY
OWEN COMMUNITY BANK, s.b.
CONSOLIDATED CONDENSED STATEMENT OF FINANCIAL CONDITION
<TABLE>
<CAPTION>
September 30, June 30,
1996 1996
----------- -----------
(Unaudited)
ASSETS
<S> <C> <C>
Cash $ 440,416 $ 385,824
Short-term interest-bearing deposits 1,222,020 5,334,796
----------- -----------
Total cash and cash equivalents 1,662,436 5,720,620
Investment securities available for sale 7,405,975 4,901,120
Loans 28,502,785 27,274,557
Allowance for loan losses (164,852) (149,833)
----------- -----------
Net loans 28,337,933 27,124,724
Real estate acquired for development 42,193 171,580
Premises and equipment 472,562 512,768
Stock in Federal Home Loan Bank 410,000 360,000
Other assets 351,441 635,499
----------- -----------
Total assets $38,682,540 $39,426,311
=========== ===========
LIABILITIES
Deposits $24,103,174 $28,725,700
Federal Home Loan Bank advances 6,700,000 7,200,000
Other liabilities 132,947 90,539
----------- -----------
Total liabilities 30,936,121 36,016,239
----------- -----------
SHAREHOLDERS' EQUITY
Preferred stock, without par value:
Authorized and unissued - 2,000,000 shares --- ---
Common stock, without par value:
Authorized - 5,000,000 shares
Issued - 505,926 shares 4,728,294
Retained earnings 3,414,923 3,427,201
Unrealized loss on securities available for sale (2,177) (17,129)
Unearned ESOP shares (394,621)
----------- -----------
Total shareholders' equity 7,746,419 3,410,072
----------- -----------
Total liabilities and shareholders' equity $38,682,540 $39,426,311
=========== ===========
</TABLE>
See notes to consolidated condensed financial statements.
3
<PAGE>
HOME FINANCIAL BANCORP
AND WHOLLY-OWNED SUBSIDIARY
OWEN COMMUNITY BANK, s.b.
CONSOLIDATED CONDENSED STATEMENT OF INCOME
<TABLE>
<CAPTION>
Three Months Ended
September 30,
------------------------------------
1996 1995
----------- -----------
(Unaudited)
Interest income
<S> <C> <C>
Loans $ 670,392 $ 654,569
Interest-bearing deposits 41,681 31,073
Investment securities 93,885 43,497
Other interest and dividend income 7,919 5,150
----------- -----------
Total interest income 813,877 734,289
Interest expense
Deposits 310,072 311,310
Advances from Federal Home Loan Bank and other
borrowings 108,050 82,068
----------- -----------
Total interest expense 418,122 393,378
----------- -----------
Net interest income 395,755 340,911
Provision for losses on loans 17,000 13,500
----------- -----------
Net interest income after provision for losses on loans 378,755 327,411
----------- -----------
Noninterest income
Service charges on deposit accounts 9,891 8,934
Gain on sale of real estate acquired for 4,799 19,298
development
Other income 14,121 7,307
----------- -----------
Total noninterest income 28,811 35,539
----------- -----------
Noninterest expenses
Salaries and employee benefits 114,084 102,979
Net occupancy expenses 17,566 17,524
Equipment expenses 12,911 8,027
Deposit insurance expense 156,940 12,475
Computer processing fees 15,847 13,663
Legal and professional fees 44,805 7,915
Other expenses 66,820 64,835
----------- -----------
Total noninterest expenses 428,973 227,418
----------- -----------
Income (loss) before income taxes (21,407) 135,532
Income tax expense (benefit) (9,129) 53,287
----------- -----------
Net income (loss) $ (12,278) $ 82,245
=========== ===========
Net income (loss) per share $ (.03) Not applicable
Average shares outstanding 465,452 Not applicable
</TABLE>
See notes to consolidated condensed financial statements.
4
<PAGE>
HOME FINANCIAL BANCORP
AND WHOLLY-OWNED SUBSIDIARY
OWEN COMMUNITY BANK, s.b.
Form 10-Q
CONSOLIDATED CONDENSED STATEMENT OF CHANGES TO SHAREHOLDERS' EQUITY
<TABLE>
<CAPTION>
1996 1995
----------- -----------
(Unaudited)
<S> <C> <C>
Balance, July 1 $3,410,072 $3,159,767
Net income (loss) (12,278) 82,245
Common stock issued in conversion, net of costs 4,728,294
Contribution for unearned ESOP shares (394,621)
Net change in unrealized loss on securities
available for sale 14,952 (12,032)
----------- -----------
Balance, September 30 $7,746,419 $3,229,980
========== ==========
</TABLE>
See notes to consolidated condensed financial statements.
5
<PAGE>
HOME FINANCIAL BANCORP
AND WHOLLY-OWNED SUBSIDIARY
OWEN COMMUNITY BANK, s.b.
CONSOLIDATED CONDENSED STATEMENT OF CASH FLOWS
<TABLE>
<CAPTION>
Three Months Ended
September 30,
--------------------------------------
1996 1995
----------- -----------
(Unaudited)
OPERATING ACTIVITIES
<S> <C> <C>
Net income (loss) $ (12,278) $ 82,245
Adjustments to reconcile net income (loss) to net cash
provided by operating activities:
Provision for loan losses 17,000 13,500
Depreciation 18,777 12,600
Change in interest receivable (34,620) (16,182)
Other adjustments 98,421 (32,589)
----------- -----------
Net cash provided by operating activities 87,300 59,574
----------- -----------
INVESTING ACTIVITIES
Purchases of securities available for sale (2,607,476)
Proceeds from maturities and repayments of
investment securities available for sale 126,441
Proceeds from maturities and repayments of
investment securities held to maturity 49,481
Net changes in loans (1,230,209) (1,239,651)
Purchase of Federal Home Loan Bank of Indianapolis
stock (50,000) (10,000)
Proceeds from sale of premises and equipment 35,000
Purchases of premises and equipment (13,570) (30,299)
Proceeds from sale of real estate acquired for
development 129,386
Other investing activities (645)
----------- -----------
Net cash used by investing activities (3,610,428) (1,231,114)
----------- -----------
FINANCING ACTIVITIES
Net change in:
NOW and savings accounts (4,304,161) 440,266
Certificates of deposit (318,365) 1,862,713
Proceeds from Federal Home Loan Bank advances 1,000,000 200,000
Repayment of Federal Home Loan Bank advances (1,500,000)
Sale of common stock, net of costs 4,587,470
Other financing activities (4,335)
----------- -----------
Net cash used by financing activities (535,056) (2,498,644)
----------- -----------
</TABLE>
6
<PAGE>
<TABLE>
<CAPTION>
Three Months Ended
September 30,
-----------------------------------
1996 1995
----------- -----------
(Unaudited)
NET CHANGE IN CASH AND CASH
<S> <C> <C>
EQUIVALENTS (4,058,184) 1,327,104
CASH AND CASH EQUIVALENTS,
BEGINNING OF PERIOD 5,720,620 1,385,979
----------- -----------
CASH AND CASH EQUIVALENTS, END OF
PERIOD $1,662,436 $2,713,083
========== ==========
ADDITIONAL CASH FLOWS AND
SUPPLEMENTARY INFORMATION
Interest paid $ 418,122 $ 393,378
Income tax paid 56,750 35,000
</TABLE>
See notes to consolidated condensed financial statements.
7
<PAGE>
HOME FINANCIAL BANCORP
AND WHOLLY-OWNED SUBSIDIARY
OWEN COMMUNITY BANK, s.b.
NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS
NOTE A: Basis of Presentation
The unaudited interim consolidated condensed financial statements include the
accounts of Home Financial Bancorp ("Company") and its subsidiary, Owen
Community Bank, s.b. ("Bank").
The unaudited interim consolidated condensed financial statements have been
prepared in accordance with the instructions to Form 10-Q and, therefore, do not
include all information and disclosures required by generally accepted
accounting principles for complete financial statements. The significant
accounting policies followed by the Company and Bank for interim financial
reporting are consistent with the accounting policies followed for annual
financial reporting. All adjustments, consisting of normal recurring
adjustments, which in the opinion of management are necessary for a fair
presentation of the results for the periods reported, have been included in the
accompanying consolidated financial statements. Financial and other data
contained herein prior to July 1, 1996 relates solely to the Bank (See Note B).
The results of operations for the three months ended September 30, 1996 are not
necessarily indicative of those expected for the remainder of the year.
NOTE B: Conversion to State Stock Savings Bank
In October, 1995, the Board of Directors adopted a Plan of Conversion ("Plan")
to convert the Bank from a state-chartered mutual savings bank to a
state-chartered stock savings bank through amendment of its charter and the sale
of common stock to a holding company formed in connection with the conversion.
On July 1, 1996, the Bank completed the conversion and the formation of Home
Financial Bancorp as the holding company of the Bank. As part of the conversion,
the Company issued 505,926 shares of common stock at $10 per share of which
40,474 shares were issued to an Employee Stock Ownership Plan. Net proceeds of
the Company's stock issuance, after costs, were approximately $4,728,000 of
which $2,472,548 were used to acquire 100% of the stock and ownership of the
Bank. Costs associated with the conversion were deducted from the proceeds of
stock sold by the Company. The transaction was accounted for in a manner similar
to a pooling of interests. Since the Company did not commence operations until
July 1, 1996, financial and other data contained herein prior to July 1, 1996
relates solely to the Bank.
At the date of conversion, the Bank established a liquidation account of
$3,293,000 which equaled the Bank's retained earnings as of the most recent
financial statements, December 31, 1995, contained in the final conversion
prospectus. The liquidation account was established to provide a limited
priority claim to the assets of the Bank to qualifying depositors who continue
to maintain deposits in the Bank after conversion. In the unlikely event of a
complete liquidation of the Bank, and only in such event, qualifying depositors
would receive a liquidation distribution based on their proportionate share of
the then total remaining qualifying deposits.
8
<PAGE>
The Company, subject to certain supervisory policies of the Board of Governors
of the Federal Reserve System and the Federal Deposit Insurance Corporation, may
pay dividends to its shareholders if its assets exceed its liabilities and it is
able to pay its debts as they come due. Current regulations allow the Bank to
pay dividends on its stock after the conversion if its regulatory capital would
not be reduced below the amount then required for the liquidation account, and
if those dividends do not exceed net profits of the Bank for the current year
plus those for the previous two years.
NOTE C: Special Savings Association Insurance Fund Assessment
The deposits of the Bank are presently insured by the Savings Association
Insurance Fund ("SAIF"). A recapitalization plan for the SAIF was enacted in
late September 1996 which provided for a special assessment on substantially all
SAIF-insured institutions to enable the SAIF to achieve its required level of
reserves. The proposed assessment of .657% was effected based on deposits as of
March 31, 1995 and the Bank's special assessment was $142,457 before taxes.
Accordingly, this special assessment, which is payable on November 27, 1996,
significantly increased other expenses and adversely affected results of
operations for the period ended September 30, 1996.
9
<PAGE>
Item 2: Management's Discussion and Analysis of Financial Condition and Results
of Operations.
General
Home Financial Bancorp ("Company") is an Indiana corporation which was organized
in February 1996 to become a bank holding company upon its acquisition of all
the capital stock of Owen Community Bank, s.b. ("Bank") in connection with the
Bank's conversion from mutual to stock form. The Company became the Bank's
holding company at July 1, 1996. All historical financial and other data prior
to July 1, 1996 relates solely to the Bank. At September 30, 1996, the principal
asset of the Company consisted of 100% of the issued and outstanding shares of
common stock of the Bank. At that date, the Company had no material liabilities
and the Company had not conducted any material operations. As a result, the
consolidated condensed financial statements appearing herein and the following
discussion of results of operations relate primarily to the Bank.
The Bank has been, and continues to be, a community- oriented financial
institution offering selected financial services to meet the needs of the
communities it serves. The Bank attracts deposits from the general public and
historically has used such deposits, together with other funds, primarily to
originate one-to-four-family residential loans. The Bank also originates
commercial, consumer, and to a lesser extent, construction loans. Through its
only office located in Spencer, Indiana, the Bank serves communities in Owen and
surrounding counties.
BSF, Inc. ("BSF") is the wholly owned subsidiary of the Bank which engages in
purchasing and developing large tracts of real estate. After land is purchased,
BSF subdivides the real estate into lots, makes improvements such as streets and
sells individual lots, usually on contract. In connection with the Bank's
conversion to an Indiana mutual savings bank, the FDIC required the Bank to
cease BSF's land acquisitions, divest BSF's nonconforming real estate holdings
by November 16, 2000, and maintain the Bank's capital at levels sufficient to
classify the Bank as a well-capitalized institution. BSF has ceased land
acquisitions and is in process of divesting of its real estate holdings.
The Company's results of operations depend primarily upon the level of net
interest income, which is the difference between the interest income earned on
its interest-earning assets such as loans and investments, and the costs of the
Company's interest-bearing liabilities, primarily deposits and borrowings.
Results of operations are also dependent upon the level of the Company's
non-interest income, including fee income and service charges, and affected by
the level of its non-interest expenses, including its general and administrative
expenses.
Financial Condition
Total assets decreased to $38,683,000 at September 30, 1996 compared to
$39,426,000 at June 30, 1996. Cash and short-term interest bearing deposits
decreased approximately $4.1 million due to the use of funds for lending
activities, investment in securities and the partial repayment of borrowings. At
June 30, 1996, cash and short-term investments were unusually high as a result
of funds on deposit related to the conversion. Investment securities increased
$2.5 million and loans increased $1.2 million at September 30, 1996 compared to
June 30, 1996.
10
<PAGE>
Deposits decreased $4.6 million primarily as a result of funds on deposit
related to the conversion at June 30, 1996 being utilized for the purchase of
common stock issued in the conversion. Borrowings at the Federal Home Loan Bank
("FHLB") decreased $.5 million to $6.7 as a result of net repayments.
Shareholders' equity increased $4.3 million as a result of stock issued by the
Company to complete the conversion process on July 1, 1996.
Comparison of Operating Results for the Three-Month Periods Ended September 30,
1996 and 1995
The Company incurred a net loss of $12,000 for the three-months ended September
30, 1996 compared to net income of $82,000 for the three-month period ended
September 30, 1995. The decrease of $94,000 is primarily a result of the
one-time FDIC special assessment to recapitalize the Savings Association
Insurance Fund ("SAIF"), net of tax. Absent the one-time assessment, net income
for the first quarter of 1996 would have been $74,000.
Net interest income increased $55,000 to $396,000 for the 1996 period from
$341,000 for the 1995 period. The increase resulted primarily from a higher
level of earning assets during the 1996 period.
The provision for loan losses was $17,000 during the quarter ended September 30,
1996 compared to $13,500 for the comparable period in 1995. The increase of
$3,500 reflected the increase in total loans and management's desire to raise
the level of the allowance for loan losses to a level more in line with its peer
group. At September 30, 1996, the allowance for loan losses was .58% of total
loans of total loans compared to .55% at June 30, 1996.
Total noninterest income decreased $7,000 for the quarter ended September 30,
1996 compared to the same period in 1995. The net decrease resulted from a
decrease of $14,000 in gains on the sale of real estate acquired for development
and a $7,000 increase, primarily late fees on loans, in other income. Management
anticipates that gains on the sale of real estate acquired for development will
continue to decrease in the future as the volume of this business activity
decreases. In connection with the Bank's conversion to an Indiana mutual savings
bank, the FDIC required the Bank to terminate this business activity by
November, 2000.
Total noninterest expenses increased $202,000 to $429,000 for the 1996 quarter
compared to $227,000 for the 1995 quarter. The increase in the 1996 quarter was
primarily the result of the one-time FDIC special assessment to recapitalize the
SAIF. FDIC deposit insurance increased $145,000 to $157,000 for the three months
ended September 30, 1996 from $12,000 for the three month period ended September
30, 1995 . Salaries and employee benefits also increased during the 1996 period
by $11,000 primarily as a result of expenses related to the employee stock
ownership plan adopted in July 1996. The other major component of the increase
in the 1996 period was the $37,000 increase in legal and professional fees.
Additional fees were incurred with outside professionals to meet filing
requirements of the Securities and Exchange Commission and other regulatory
bodies. Management anticipates that legal and professional fees will decrease in
future periods as internal personnel complete all or a portion of required
filings with less reliance on outside professionals.
Income tax expense decreased from an expense of $53,000 for the three months
ended September 30, 1995 to a tax benefit of $9,000 for the 1996 period due to
the pre-tax loss resulting primarily from the FDIC special assessment.
11
<PAGE>
Asset Quality
The allowance for loan losses was $165,000 at September 30, 1996 compared to
$150,000 at June 30, 1996. Management considered the allowance for loan losses
at September 30, 1996, to be adequate to cover estimated losses inherent in the
loan portfolio at that date, and its consideration included probable losses that
could be reasonably estimated. Such belief is based upon an analysis of loans
currently outstanding, past loss experience, current economic conditions and
other factors and estimates which are subject to change over time. The following
table sets forth the changes affecting the allowance for loan losses for the
three months ended September 30, 1996.
Balance, July 1, 1996 $149,833
Provision for loan losses 17,000
Recoveries ---
Loans charged off (1,981)
--------
Balance, September 30, 1996 $164,852
========
Total non-performing loans totaled $339,000 or 1.19% of total loans at September
30, 1996 compared to $359,000 or 1.32% of total loans at June 30, 1996.
Liquidity and Capital Resources
The Company's most liquid assets are cash and interest bearing deposits. The
levels of these assets are dependent on the Company's operating, financing and
investing activities. At September 30, 1996 and June 30, 1996, cash and
interest-bearing deposits totaled $1.7 million and $5.7 million, respectively.
The level at June 30, 1996 was unusually high as a result of funds on deposit
related to the conversion which were invested short term.
The Company's primary sources of funds include principal and interest payments
on loans and maturities and repayments on investment securities. While scheduled
loan repayments and proceeds from investment securities are relatively
predictable, deposit flows and early repayments are more influenced by interest
rates, general economic conditions and competition. The Company attempts to
price its deposits to meet asset-liability objectives and local market
conditions.
If the Company requires funds beyond its ability to generate them internally, it
has the ability to borrow funds from the FHLB of Indianapolis. Federal law
limits an institution's borrowings from the FHLB to 20 times the amount paid for
capital stock in the FHLB, subject to regulatory capital requirements. As a
policy matter, however, the FHLB of Indianapolis typically limits the amount of
borrowings from the FHLB to 50% of adjusted assets (total assets less
borrowings). At September 30, 1996, the Company had approximately $9 million of
unused credit available to it under such guidelines. However, the Bank's Board
of Directors had, by resolution, limited the amount of authorized borrowings to
$13 million at September 30, 1996. At September 30, 1996, borrowing from the
FHLB totaled $6.7 million.
12
<PAGE>
Shareholders' equity was $7.7 million at September 30, 1996 or 20% of total
assets. All fully phased-in capital requirements are currently met. In
connection with the Bank's conversion to a state savings bank, the FDIC imposed
heightened capital requirements on the Bank because of the impermissible real
estate development activities of the Bank's subsidiary. The FDIC currently
requires that the Bank maintain capital (after deduction of its investment in
its subsidiary) at levels sufficient for the Bank to be classified as a
well-capitalized institution. The Bank's actual and required capital amounts (in
thousands) and ratios are as follows as of September 30, 1996.
<TABLE>
<CAPTION>
Actual Required For Required To Be
Adequate Well
Capital* Capitalized*
-------------------------------------------------------------------------
Amount Ratio Amount Ratio Amount Ratio
-------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Total capital *(to risk weighted assets) $5,596 32.3% $1,385 8.0% $1,731 10.0%
Tier 1 capital *(to risk weighted 5,431 31.4% 692 4.0% 1,039 6.0%
assets)
Tier 1 capital *(to total assets) 5,431 14.8% 1,466 4.0% 1,832 5.0%
</TABLE>
*As defined by the regulatory agencies
Effect of Inflation and Changing Prices
The Company's asset and liability structure is substantially different from that
of an industrial company in that most of its assets and liabilities are monetary
in nature. Management believes the impact of inflation on financial results
depends upon the Company's ability to react to changes in interest rates and, by
such reaction, reduce the inflationary impact on performance. Interest rates do
not necessarily move in the same direction at the same time, or at the same
magnitude, as the prices of other goods and services. Management relies on its
ability to manage the relationship between interest-sensitive assets and
liabilities to protect against wide interest rate fluctuations, including those
resulting from inflation.
Accounting Matters
Accounting for Stock-based Compensation. SFAS No. 123, Accounting for
Stock-based Compensation, establishes a fair value based method of accounting
for stock-based compensation plans. The FASB encourages all entities to adopt
this method for accounting for all arrangements under which employees receives
shares of stock or other equity instruments of the employer, or the employer
incurs liabilities to employees in amounts based on the price of its stock.
Due to the extremely controversial nature of this project, the Statement permits
a company to continue the accounting for stock-based compensation prescribed in
Accounting Principles Board Opinion No. 25, Accounting for Stock Issued to
Employees. If a company elects that option, proforma disclosures of net income
(and earnings per share, if presented) are required in the footnotes as if the
provisions of this Statement had been used to measure stock-based compensation.
The disclosure requirements of Opinion No. 25 have been superseded by the
disclosure requirements of this Statement.
13
<PAGE>
Once an equity adopts the fair value based method for accounting for these
transactions, that election cannot be reversed.
Equity instruments granted or otherwise transferred directly to an employee by a
principal stockholder are stock-based employee compensation to be accounted for
in accordance with either Opinion 25 or this Statement, unless the transfer
clearly is for a purpose other than compensation.
The accounting requirements of this Statement are effective for transactions
entered into in fiscal years that begin after December 15, 1995. The disclosure
requirements are effective for financial statements for fiscal years beginning
after December 15, 1995. Proforma disclosures required for entities that elect
to continue to measure compensation cost using Opinion 25 must include the
effects of all awards granted in fiscal years that begin after December 15,
1994.
During the initial phase-in period, the effects of applying this Statement are
not likely to be representative of the effects on the reported net income for
future years because options vest over several years and additional awards
generally are made each year. If that situation exists, the entity shall include
a statement to that effect.
Management has not determined the impact of SFAS No. 123 on either the Company's
financial position or results of operations.
Accounting for Employee Stock Plans. In November 1993, the American Institute of
Certified Public Accountants issued Statement of Position ("SOP") 93-6 which
addresses the accounting for shares of stock issued to employees by an employee
stock ownership plan ("Employee Plan"). SOP 93-6 requires that the employer
record compensation expense in an amount equal to the fair value of shares
committed to be released to employees from the Employee Plan. SOP 93-6 is
effective for fiscal years beginning after December 15, 1993 and relates to
shares purchased by an Employee Plan after December 31, 1992. Assuming shares of
Common Stock appreciate in value overtime, the adoption of SOP 93-6 will likely
increase compensation expense relative to the Company's ESOP established in
connection with the Conversion, as compared with prior guidance which would have
required the recognition of compensation expense based on the cost of shares
acquired by the ESOP. However, the amount of the increase has not been
determined as the expense will be based on the fair value of the shares
committed to be released to employees, which is not yet determinable.
14
<PAGE>
Part II. OTHER INFORMATION
Item 1. Legal Proceedings. None.
Item 2. Changes in Securities. None.
Item 3. Defaults Upon Senior Securities. None.
Item 4. Submission of Matters to Vote of Security Holders. None.
Item 5. Other Information. None.
Item 6. Exhibits and Reports on Form 8-K.
(a) Exhibits
27. Financial Data Schedule
(b) No reports on form 8-K were filed during the quarter ended
September 30, 1996.
15
<PAGE>
Signatures
Pursuant to the requirements of the Securities Exchange Act of 1934, as amended,
the Registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
HOME FINANCIAL BANCORP
Date: November 8, 1996 By:/s/ Kurt J. Meier
-----------------------
Kurt J. Meier
President and
Chief Executive Officer
Date: November 8, 1996 By:/s/ Kurt D. Rosenberger
-----------------------------
Kurt D. Rosenberger
Vice President and Chief
Financial Officer
16
<TABLE> <S> <C>
<ARTICLE> 9
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
REGISTRANT'S UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS FOR THE THREE MONTHS
ENDED SEPTEMBER 30, 1996 AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH
FINANCIAL STATEMENTS.
</LEGEND>
<CIK> 0001009242
<NAME> Home Financial Bancorp
<MULTIPLIER> 1,000
<CURRENCY> U.S. Dollars
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> JUN-30-1996
<PERIOD-START> JUL-1-1996
<PERIOD-END> SEP-30-1996
<EXCHANGE-RATE> 1.000
<CASH> 440
<INT-BEARING-DEPOSITS> 1,222
<FED-FUNDS-SOLD> 0
<TRADING-ASSETS> 0
<INVESTMENTS-HELD-FOR-SALE> 7,404
<INVESTMENTS-CARRYING> 0
<INVESTMENTS-MARKET> 0
<LOANS> 28,503
<ALLOWANCE> 165
<TOTAL-ASSETS> 38,683
<DEPOSITS> 24,103
<SHORT-TERM> 0
<LIABILITIES-OTHER> 133
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0
4,728
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</TABLE>
