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, 1997
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
incorporation 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, 1997 was 464,526.
<PAGE>
Home Financial Bancorp
Form 10-Q
Index
Page No.
Forward Looking Statements....................................................1
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements
Consolidated Condensed Statement of Financial
Condition as of September 30, 1997 and June 30, 1997
(Unaudited)...................................................2
Consolidated Condensed Statement of Income for the three
months ended September 30, 1997 and 1996
(Unaudited)...................................................3
Consolidated Condensed Statement of Changes in
Shareholders' Equity for the three months ended September
30, 1997 and 1996 (Unaudited).................................4
Consolidated Condensed Statement of Cash Flows for the
three months ended September 30, 1997 and 1996
(Unaudited)...................................................5
Notes to Consolidated Condensed Financial Statements..........7
Item 2. Management's Discussion and Analysis of Financial Condition
and Results of Operations............................................9
Item 3. Quantitative and Qualitative Disclosures About Market Risk..........14
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
<PAGE>
FORWARD LOOKING STATEMENTS
This Annual Report on Form 10-Q ("Form 10-Q") contains statements which
constitute forward looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995. These statements appear in a number of
places in this Form 10-Q and include statements regarding the intent, belief,
outlook, estimate or expectations of the Company (as defined below), its
directors or its officers primarily with respect to future events and the future
financial performance of the Company. Readers of this Form 10-Q are cautioned
that any such forward looking statements are not guarantees of future events or
performance and involve risks and uncertainties, and that actual results may
differ materially from those in the forward looking statements as a result of
various factors. The accompanying information contained in this Form 10-Q
identifies important factors that could cause such differences. These factors
include changes in interest rates; loss of deposits and loan demand to other
savings and financial institutions; substantial changes in financial markets;
changes in real estate values and the real estate market; regulatory changes; or
unanticipated results in pending legal proceedings.
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<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,
1997 1997
------------ ------------
(Unaudited)
ASSETS
<S> <C> <C>
Cash $ 187,443 $ 296,805
Short-term interest-bearing deposits 1,981,798 3,887,498
------------ ------------
Total cash and cash equivalents 2,169,241 4,184,303
Investment securities available for sale 2,076,681 2,101,734
Loans 35,344,458 34,348,648
Allowance for loan losses (256,897) (231,397)
------------ ------------
Net loans 35,087,561 34,117,251
Real estate acquired for development 20,758 20,758
Premises and equipment 990,622 963,657
Federal Home Loan Bank Stock 500,000 500,000
Other assets 464,436 620,524
Total assets $ 41,309,299 $ 42,508,227
============ ============
LIABILITIES
Deposits $ 25,862,664 $ 26,156,516
Federal Home Loan Bank advances 8,000,000 9,000,000
Other liabilities 195,689 154,577
Total liabilities 34,058,353 35,311,093
------------ ------------
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 - 464,526 shares and 469,526 4,352,625 4,389,698
Retained earnings 3,440,582 3,409,288
Unearned Compensation RRP (257,524) (264,781)
Unearned ESOP shares (354,145) (364,264)
Unrealized gain on securities available for sale 69,408 27,193
Total shareholders' equity 7,250,946 7,197,134
Total liabilities and shareholders' equity $ 41,309,299 $ 42,508,227
============ ============
</TABLE>
See notes to consolidated condensed financial statements.
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<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,
1997 1996
---------- ----------
(Unaudited)
Interest income
<S> <C> <C>
Loans $ 819,687 $ 670,392
Interest-bearing deposits 35,545 41,681
Investment securities 23,587 93,885
Other interest and dividend income 13,087 7,919
--------- ---------
Total interest income 891,906 813,877
Interest expense
Deposits 322,824 310,072
Advances from Federal Home Loan Bank and
other borrowings 128,065 108,050
Total interest expense 450,889 418,122
--------- ---------
Net interest income 441,017 395,755
Provision for losses on loans 25,500 17,000
Net interest income after provision for losses on loans 415,517 378,755
--------- ---------
Other income
Service charges on deposit accounts 12,625 9,891
Gain (loss) on sale of real estate acquired for
development (278) 4,799
Gain on sales of securities available for sale 32,625 - - - -
Other income 13,531 14,121
Total other income 58,503 28,811
--------- ---------
Other expenses
Salaries and employee benefits 180,496 114,084
Net occupancy expenses 21,905 17,566
Equipment expenses 17,238 12,911
Deposit insurance expense 3,752 156,940
Computer processing fees 19,459 15,847
Legal and accounting fees 24,248 44,805
Other expenses 72,588 66,820
Total noninterest expenses 339,686 428,973
--------- ---------
Income before income taxes 134,334 (21,407)
Income tax expense 54,070 (9,129)
Net income $ 80,264 $ (12,278)
========= =========
Net income per share $ .19 $ (.03)
Average shares outstanding 431,147 466,244
</TABLE>
See notes to consolidated condensed financial statements.
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<PAGE>
HOME FINANCIAL BANCORP
AND WHOLLY-OWNED SUBSIDIARY
OWEN COMMUNITY BANK, s.b.
CONSOLIDATED CONDENSED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY
<TABLE>
<CAPTION>
1997 1996
----------- -----------
(Unaudited)
<S> <C> <C>
Balance, July 1 $ 7,197,134 $ 3,410,072
Net income 80,264 (12,278)
Common stock issued in conversion, net of costs -- 4,728,294
Common stock repurchased and retired (75,472) --
Contribution for unearned ESOP shares -- (404,740)
ESOP shares earned 23,046 10,119
RRP shares earned 7,257 --
Cash dividends (23,496) --
----------- -----------
Net change in unrealized gain on securities
available for sale 42,213 14,952
----------- -----------
Balance, September 30 $ 7,250,946 $ 7,746,419
=========== ===========
</TABLE>
See notes to consolidated condensed financial statements.
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<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,
1997 1996
----------- -----------
(Unaudited)
OPERATING ACTIVITIES
<S> <C> <C>
Net income $ 80,264 $ (12,278)
Adjustments to reconcile net income to net cash
provided by operating activities:
Provision for loan losses 25,500 17,000
Depreciation 20,909 18,777
Investment securities gains (32,625) --
Change in interest receivable (2,335) (34,620)
Amortization of unearned ESOP shares 23,046 --
Amortization of unearned RRP shares 7,257 --
Other adjustments 26,583 98,421
Net cash provided by operating activities 148,599 87,300
----------- -----------
INVESTING ACTIVITIES
Purchases of securities available for sale (544,363) (2,607,476)
Proceeds from sales of securities available for sale 636,875 --
Proceeds from maturities and repayments of investment
securities available for sale 34,715 126,441
Net changes in loans (995,810) (1,230,209)
Purchase of Federal Home Loan Bank of Indianapolis
stock -- (50,000)
Proceeds from sale of premises and equipment -- 35,000
Purchases of premises and equipment (47,874) (13,570)
Proceeds from real estate owned sales 145,616 --
Proceeds from sale of real estate acquired for
development -- 129,386
Net cash used by investing activities (770,841) (3,610,428)
----------- -----------
FINANCING ACTIVITIES Net change in:
NOW and savings accounts 571,783 (4,304,161)
Certificates of deposit (865,635) (318,365)
Proceeds from Federal Home Loan Bank advances -- 1,000,000
Repayment of Federal Home Loan Bank advances (1,000,000) (1,500,000)
Sale of common stock, net of costs -- 4,587,470
Purchase of stock (75,472) --
Cash dividends (23,496) --
Net cash used by financing activities (1,392,820) (535,056)
----------- -----------
</TABLE>
<PAGE>
Three Months Ended
September 30,
---------------------------
1997 1996
----------- -----------
(Unaudited)
NET CHANGE IN CASH AND CASH EQUIVALENTS
(2,015,062) (4,058,184)
CASH AND CASH EQUIVALENTS, BEGINNING OF
PERIOD 4,184,303 5,720,620
----------- -----------
CASH AND CASH EQUIVALENTS, END OF PERIOD
$ 2,169,241 $ 1,662,436
=========== ===========
ADDITIONAL CASH FLOWS AND
SUPPLEMENTARY INFORMATION
Interest paid $ 450,889 $ 418,122
Income tax paid 13,000 56,750
See notes to consolidated condensed financial statements.
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<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, 1997 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.
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.
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<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 was payable on November 27, 1996,
significantly increased other expenses and adversely affected results of
operations for the three month period ended September 30, 1996.
NOTE D: Stock Option Plan
On July 23, 1997, the Board of Directors approved a Stock Option Plan. The Plan
was approved by stockholders on October 14, 1997. Under the Stock Option Plan,
stock options representing an aggregate of up to 10% of common stock sold in the
conversion may be granted to directors, officers and other key employees of the
Company or its subsidiary.
-7-
<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. At September 30, 1997, 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
aside from purchases and sales of investment securities, 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 mortgage, 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 stock 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 2.8%, to $41.3 million at September 30, 1997 compared to
$42.5 million at June 30, 1997. Cash and short-term interest bearing deposits
decreased approximately $2.0 million due primarily to the use of funds for
lending activities and the reduction of Federal Home Loan Bank advances.
Investment securities totaled $2.1 million at each of the quarters-ended
September 30, 1997 and June 30, 1997. Total loans increased by $996,000, or
2.9%, during the quarter, to $35.3 million.
-8-
<PAGE>
Deposits remained fairly stable; totaling $25.9 million at September 30, 1997
compared to $26.2 at June 30, 1997. Borrowings at the Federal Home Loan Bank
("FHLB") decreased $1.0 million to $8.0 million as of September 30, 1997.
During the quarter ended September 30, 1997, the Company repurchased and retired
5,000 shares of common stock pursuant to a 10% stock repurchase plan announced
on March 10, 1997. The Company has repurchased and retired a total of 41,400
shares of common stock. The stock repurchase transaction reduced the number of
shares outstanding and reduced the overall increase in total shareholders'
equity resulting from net income for the quarter. Shareholders' equity was $7.3
million, or 17.6% of total assets as of September 30, 1997. Book value at
September 30, 1997 was $15.61 per share based on 464,526 shares outstanding.
Comparison of Operating Results for the Three-Month Periods Ended September 30,
1997 and 1996
The Company reported net income of $80,000, or $.19 per share, for the
three-months ended September 30, 1997, compared to a net loss of $12,000 for the
same three-month period in 1996. Absent the one-time FDIC special assessment to
recapitalize the Savings Association Insurance Fund ("SAIF"), net income for the
quarter ended September 30, 1996 would have been approximately $74,000.
Net interest income before the provision for loan losses increased $45,000, or
11.4%, to $441,000 for the 1997 period, from $396,000 for the 1996 period. The
increase was primarily attributed to an increase in loan interest income,
resulting from an increase in total loans.
Management has established valuation allowances sufficient to absorb estimated
losses or exposure inherent in the Bank's asset structure. Adjustments to these
allowances reflect management's assessment of various risk factors which
include, but are not limited to changes in the type and volume of the lending
portfolio, level and trend of loan delinquencies, size of individual credit
exposure, and effectiveness of collection efforts. During the quarter ended
September 30, 1997, the provision for loan losses was $26,000, compared to
$17,000 for the same period in 1996. At September 30, 1997, the allowance for
loan losses was .73% of total loans compared to .67% at June 30, 1997, and .58%
at September 30, 1996.
Total noninterest income increased $30,000 for the quarter ended September 30,
1997 compared to the same period in 1996. The increase primarily resulted from a
net gain on investment securities sold by the Company. Management anticipates
that gains on the sale of real estate acquired for development, a reliable
source of income in the past, will decrease in the future and consequently
contribute less to noninterest income. In connection with the Bank's conversion
to an Indiana stock savings bank, the FDIC required the Bank to terminate this
business activity by November, 2000.
Total noninterest expenses decreased $89,000 to $340,000 for the 1997 September
quarter compared to $429,000 for the 1996 September quarter. The decrease in
noninterest expenses compared to a year earlier was attributed to the $142,000
FDIC special assessment expensed during the quarter ended September 30, 1996.
Compared to a year earlier, salaries and employee benefits increased $66,000 for
the quarter while legal and accounting fees decreased by $21,000. The increase
in salaries and employee benefits resulted from an increase in the number of
Bank employees, normal salary increases, and employee benefit plans adopted in
connection with the stock conversion. Legal and accounting expenses decreased
due to a reduced reliance on outside professionals to meet the Company's various
regulatory and public reporting obligations.
-9-
<PAGE>
Income tax expense for the three months ended September 30, 1997 was $54,000,
compared to a $9,000 tax benefit for the 1996 period due to the pre-tax loss
resulting from the FDIC special assessment.
Asset Quality
The allowance for loan losses was $257,000 at September 30, 1997 compared to
$231,000 at June 30, 1997. Management considered the allowance for loan losses
at September 30, 1997, to be adequate to cover estimated losses inherent in the
loan portfolio at that date, including 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 and re-evaluation over time. The following
table sets forth the changes affecting the allowance for loan losses for the
three months ended September 30, 1997.
Balance, July 1, 1997 $231,397
Provision for loan losses 25,500
Recoveries --
Loans charged off --
----------
Balance, September 30, 1997 $256,897
==========
Total non-performing loans rose to $673,000 or 1.9% of total loans at September
30, 1997 compared to $561,000 or 1.6% of total loans at June 30, 1997.
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, 1997 and June 30, 1997, cash and
interest-bearing deposits totaled $2.2 million and $4.2 million, respectively.
The reduction in liquid assets funded a $996,000 increase in total loans and a
$1.0 million repayment of borrowings.
The Company's primary sources of funds include principal and interest payments
on loans, loan 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, 1997, the Company had approximately $7.0 million
of unused credit available to it under such guidelines. At September 30, 1997,
borrowing from the FHLB totaled $8.0 million.
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<PAGE>
Shareholders' equity was $7.3 million at September 30, 1997 or 17.6% of total
assets. Book value at September 30, 1997 was $15.61 per share based on 464,526
outstanding shares. All fully phased-in regulatory capital requirements for the
Bank 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, 1997.
<TABLE>
<CAPTION>
Required For Required To Be
Actual Adequate Capital* Well Capitalized*
---------------------- --------------------- ---------------------
Amount Ratio Amount Ratio Amount Ratio
--------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Total capital *(to risk weighted assets) $6,222 25.5% $1,954 8.0% $2,443 10.0%
Tier 1 capital *(to risk weighted assets) 5,965 24.4% 977 4.0% 1,466 6.0%
Tier 1 capital *(to total assets) 5,965 14.9% 1,603 4.0% 2,003 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
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<PAGE>
measure stock-based compensation. The disclosure requirements of Opinion No. 25
have been superseded by the disclosure requirements of this Statement.
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 does not believe the impact of SFAS No. 123 on either the Company's
financial position or results of operations will be material.
Earnings per Share. Statement No. 128 establishes standards for computing and
presenting earnings per share ("EPS") and applies to entities with publicly held
common stock or potential common stock, as well as any other entity that chooses
to present EPS in its financial statements.
This Statement simplifies the current standards of APB Opinion No. 15, Earnings
per Share, and makes them comparable to international EPS standards. It
eliminates the presentation of primary EPS and requires presentation of basic
EPS (the principal difference being that common stock equivalents are not
considered in the computation of basic EPS). It also requires dual presentation
of basic and diluted EPS on the face of the income statement for all entities
with complex capital structures and requires a reconciliation of the numerator
and denominator of the basic EPS computation to the numerator and denominator of
the diluted EPS computation.
Basic EPS includes no dilution and is computed by dividing income available to
common stockholders by the weighted-average number of common shares outstanding
for the period. Diluted EPS reflects the potential dilution that could occur if
the potential common shares were exercised or converted into common stock or
resulted in the issuance of common stock that then shared in the earnings of the
entity. Diluted EPS is computed similarly to that of fully diluted EPS pursuant
to Opinion No. 15.
SFAS No. 128 is effective for financial statements issued for periods ending
after December 15, 1997, including interim periods. Earlier application is not
permitted. The Statement requires restatement of all prior-period EPS data
presented.
Disclosure of Information about Capital Structure.
Statement No. 129 continues the current requirements to disclose certain
information about an entity's capital structure found in APB Opinion No.10,
Omnibus Opinion (1966, Opinion 15, and SFAS No. 47, Disclosure of
-12-
<PAGE>
Long-Term Obligations. It consolidates specific disclosure requirements from
those standards. SFAS No. 129 is effective for financial statements issued for
periods ending after December 15, 1997, including interim periods.
Item 3. Quantitative and Qualitative Disclosures About Market Risk
There have been no material changes in market interest rates or in the
Company's interest rate sensitive instruments which would cause a material
change in the market risk exposures which effect the quantitative and
qualitative risk disclosures as presented in Item 7A of the Registrant's Annual
Report on Form 10-K for the period ended June 30, 1997.
-13-
<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.
On October 14, 1997, the Company held its second annual meeting of shareholders
at which time matters submitted to a vote of stockholders included an election
of two Company directors, approval and ratification of the Home Financial
Bancorp Stock Option Plan, and approval and ratification of the appointment of
Geo. S.
Olive & Co., LLC as auditors for the fiscal year ending June 30, 1998.
Both director nominees were elected, the Stock Option Plan and appointment of
auditors were also approved and ratified by a majority of 469,526 issued and
outstanding share votes. A tabulation of votes cast as to each matter submitted
to stockholders is presented below:
Director Nominees For Against Abstain Non-Vote
----------------- --- ------- ------- --------
John T. Gillaspy - 3 years 360,350 9,781 - 99,395
Robert W. Raper - 3 years 360,150 9,981 - 99,395
Other Matters
-------------
Stock Option Plan 261,689 20,085 740 187,012
Auditors 363,405 6,176 550 99,395
Item 5. Other Information.
Item 6. Exhibits and Reports on Form 8-K.
(a) Exhibits
3(1). The Articles of Incorporation of the Registrant are
incorporated by reference to Exhibit 3(1) to the
Registration Statement on Form S-1 (Registration No.
333-1746).
3(2). By-Laws of the Registrant are incorporated by
reference to Exhibit 3(2) to the Report on Form 10-Q
for the period ended March 31, 1997.
10(6) Home Financial Bancorp Stock Option Plan.
27. Financial Data Schedule (filed electronically).
(b) Reports on Form 8-K There were no reports on Form 8-K filed
during the period ended September 30, 1997.
-14-
<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 11, 1997 By: /s/ Kurt J. Meier
-----------------
Kurt J. Meier
President and Chief Executive
Officer
Date: November 11, 1997 By: /s/ Kurt D. Rosenberger
-----------------------
Kurt D. Rosenberger
Vice President and Chief Financial
Officer
-15-
HOME FINANCIAL BANCORP
STOCK OPTION PLAN
1. Purpose. The purpose of the Home Financial Bancorp Stock Option Plan
(the "Plan") is to provide to directors, officers and other key employees of
Home Financial Bancorp (the "Holding Company") and its majority-owned and
wholly-owned subsidiaries (individually a "Subsidiary" and collectively the
"Subsidiaries"), including, but not limited to, Owen Community Bank, s.b.
("Owen"), who are materially responsible for the management or operation of the
business of the Holding Company or a Subsidiary and have provided valuable
services to the Holding Company or a Subsidiary, a favorable opportunity to
acquire Common Stock, without par value ("Common Stock"), of the Holding
Company, thereby providing them with an increased incentive to work for the
success of the Holding Company and its Subsidiaries and better enabling each
such entity to attract and retain capable directors and executive personnel.
2. Administration of the Plan. The Plan shall be administered,
construed and interpreted by a committee (the "Committee") consisting of at
least two members of the Board of Directors of the Holding Company, each of whom
is a "Non-Employee Director" within the meaning of the definition of that term
contained in Reg. ss. 16b-3 promulgated under the Securities Exchange Act of
1934, as amended (the "1934 Act"). The members of the Committee shall be
designated from time to time by the Board of Directors of the Holding Company.
The decision of a majority of the members of the Committee shall constitute the
decision of the Committee, and the Committee may act either at a meeting at
which a majority of the members of the Committee is present or by a written
consent signed by all members of the Committee. The Committee shall have the
sole, final and conclusive authority to determine, consistent with and subject
to the provisions of the Plan:
(a) the individuals (the "Optionees") to whom options or
successive options or cash awards shall be granted under the Plan;
(b) the time when options or cash awards shall be granted
hereunder;
(c) the number of shares of Common Stock to be covered under
each option and the amount of any cash awards;
(d) the option price to be paid upon the exercise of each
option;
(e) the period within which each such option may be exercised;
(f) the extent to which an option is an incentive stock option
or a non-qualified stock option; and
(g) the terms and conditions of the respective agreements by
which options granted or cash awards shall be evidenced.
The Committee shall also have authority to prescribe, amend, waive, and rescind
rules and regulations relating to the Plan, to accelerate the vesting of any
stock options or cash awards made hereunder, to make amendments or modifications
in the terms and conditions (including exercisability) of the options relating
to the effect of termination of employment of the optionee (subject to the last
sentence of Section 12 hereof), to waive any restrictions or conditions
applicable to any option or the exercise thereof, and to make all other
determinations necessary or advisable in the administration of the Plan.
3. Eligibility. The Committee may, consistent with the purposes of the
Plan, grant options and cash awards to officers, directors and other key
employees of the Holding Company or of a Subsidiary who in the opinion of the
Committee are from time to time materially responsible for the management or
operation of the business of the Holding Company or of a Subsidiary and have
provided valuable services to the Holding Company or a Subsidiary; provided,
however, that in no event may any employee who owns (after application of the
ownership rules in ss. 425(d) of the Internal Revenue Code of 1986, as amended
(the "Code")) shares of stock possessing more than 10 percent of the total
combined voting power of all classes of stock of the Holding Company or any of
its Subsidiaries be granted an incentive stock option hereunder unless at the
time such option is granted the option price is at least 110% of the fair market
value of the stock subject to the option and such option by its terms is not
exercisable after the expiration of five (5) years from the date such option is
granted. An individual who has been granted an option under the Plan (an
"Optionee"), if he is otherwise eligible, may be granted an additional option or
options if the Committee shall so determine.
4. Stock Subject to the Plan. There shall be reserved for issuance upon
the exercise of options granted under the Plan, 50,592 shares of Common Stock of
the Holding Company, which may be authorized but unissued shares or treasury
shares of the Holding Company. Subject to Section 7 hereof, the shares for which
options may be granted under the Plan shall not exceed that number. If any
option shall expire or terminate or be surrendered for any reason without having
been exercised in full, the unpurchased shares subject thereto shall (unless the
Plan shall have terminated) become available for other options under the Plan.
5. Terms of Options. Each option granted under the Plan shall be
subject to the following terms and conditions and to such other terms and
conditions not inconsistent therewith as the Committee may deem appropriate in
each case:
(a) Option Price. The price to be paid for shares of stock upon
the exercise of each option shall be determined by the Committee at the
time such option is granted, but such price in no event shall be less
than the fair market value, as determined by the Committee consistent
with Treas. Reg. ss. 20.2031-2 and any requirements of ss. 422A of the
Code, of such stock on the date on which such option is granted;
provided, however that the Committee shall have discretion to award
non-qualified stock options to eligible employees or directors of the
Holding Company or of a Subsidiary at a price no less than 85% of the
fair market value of the Common Stock on the date of grant, as
determined by the Committee consistent with Treas. Reg ss. 20.2031-2.
(b) Period for Exercise of Option. An option shall not be
exercisable after the expiration of such period as shall be fixed by
the Committee at the time of the grant thereof, but such period in no
event shall exceed ten (10) years and one day from the date on which
such option is granted; provided, that incentive stock options granted
hereunder shall have terms not in excess of ten (10) years and
non-qualified stock options shall be for a period not in excess of ten
(10) years and one day from the date of grant thereof. Options shall be
subject to earlier termination as hereinafter provided.
(c) Exercise of Options. The option price of each share of stock
purchased upon exercise of an option shall be paid in full at the time
of such exercise. Payment may be in (i) cash, (ii) if the Optionee may
do so in conformity with Regulation T (12 C.F.R. ss. 220.3(e)(4))
without violating ss. 16(b) or ss. 16(c)of the 1934 Act, pursuant to a
broker's cashless exercise procedure, by delivering a properly executed
exercise notice together with irrevocable instructions to a broker to
promptly deliver to the Holding Company the total option price in cash
and, if desired, the amount of any taxes to be withheld from the
Optionee's compensation as a result of any withholding tax obligation
of the Holding Company or any of its Subsidiaries, as specified in such
notice, or (iii) beginning on July 1, 1999 and with the approval of the
Committee, by tendering whole shares of the Holding Company's Common
Stock owned by the Optionee and cash having a fair market value equal
to the cash exercise price of the shares with respect to which the
option is being exercised. For this purpose, any shares so tendered by
an Optionee shall be deemed to have a fair market value equal to the
mean between the highest and lowest quoted selling prices for the
shares on the date of exercise of the option (or if there were no sales
on such date the weighted average of the means between the highest and
lowest quoted selling prices for the shares on the nearest date before
and the nearest date after the date of exercise of the options as
prescribed by Treas. Reg. ss. 20-2031-2), as reported in The Wall
Street Journal or a similar publication selected by the Committee. The
Committee shall have the authority to grant options exercisable in full
at any time during their term, or exercisable in such installments at
such times during their term as the Committee may determine; provided,
however, that options shall not be exercisable during the first six (6)
months of their term. Installments not purchased in earlier periods
shall be cumulated and be available for purchase in later periods.
Subject to the other provisions of this Plan, an option may be
exercised at any time or from time to time during the term of the
option as to any or all whole shares which have become subject to
purchase pursuant to the terms of the option or the Plan, but not at
any time as to fewer than one hundred (100) shares unless the remaining
shares which have become subject to purchase are fewer than one hundred
(100) shares. An option may be exercised only by written notice to the
Holding Company, mailed to the attention of its Secretary, signed by
the Optionee (or such other person or persons as shall demonstrate to
the Holding Company his or their right to exercise the option),
specifying the number of shares in respect of which it is being
exercised, and accompanied by payment in full in either cash or by
check in the amount of the aggregate purchase price therefor, by
delivery of the irrevocable broker instructions referred to above, or,
if the Committee has approved the use of the stock swap feature
provided for above, followed as soon as practicable by the delivery of
the option price for such shares.
(d) Certificates. The certificate or certificates for the shares
issuable upon an exercise of an option shall be issued as promptly as
practicable after such exercise. An Optionee shall not have any rights
of a shareholder in respect to the shares of stock subject to an option
until the date of issuance of a stock certificate to him for such
shares. In no case may a fraction of a share be purchased or issued
under the Plan, but if, upon the exercise of an option, a fractional
share would otherwise be issuable, the Holding Company shall pay cash
in lieu thereof.
(e) Termination of Option. If an Optionee (other than a director
of the Holding Company or a Subsidiary who is not an employee of the
Holding Company or a Subsidiary (an "Outside Director")) ceases to be
an employee of the Holding Company and the Subsidiaries for any reason
other than retirement, permanent and total disability (within the
meaning of ss. 22(e)(3) of the Code), or death, any option granted to
him shall forthwith terminate. Leave of absence approved by the
Committee shall not constitute cessation of employment. If an Optionee
(other than an Outside Director) ceases to be an employee of the
Holding Company and the Subsidiaries by reason of retirement, any
option granted to him may be exercised by him in whole or in part
within three (3) years after the date of his retirement, whether or not
the option was otherwise exercisable at the date of his retirement;
provided, however, that if such employee remains a director or director
emeritus of the Holding Company, the option granted to him may be
exercised by him in whole or in part until the later of (a) three (3)
years after the date of his retirement, or (b) six months after his
service as a director or director emeritus of the Holding Company
terminates. (The term "retirement" as used herein means such
termination of employment as shall entitle such individual to early or
normal retirement benefits under any then existing pension plan of the
Holding Company or a Subsidiary.) If an Optionee (other than an Outside
Director) ceases to be an employee of the Holding Company and the
Subsidiaries by reason of permanent and total disability (within the
meaning of ss. 22(e)(3) of the Code), any option granted to him may be
exercised by him in whole or in part within one (1) year after the date
of his termination of employment by reason of such disability whether
or not the option was otherwise exercisable at the date of such
termination. Options granted to Outside Directors shall cease to be
exercisable six (6) months after the date such Outside Director is no
longer a director or director emeritus of the Holding Company or a
Subsidiary for any reason other than death or disability. If an
Optionee who is an Outside Director ceases to be a director and a
director emeritus by reason of disability, any option granted to him
may be exercised in whole or in part within one (1) year after the date
the Optionee ceases to be a director and a director emeritus by reason
of such disability, whether or not the option was otherwise exercisable
at such date. In the event of the death of an Optionee while in the
employ or service as a director or director emeritus of the Holding
Company or a Subsidiary, or, if the Optionee is not an Outside
Director, within three (3) years after the date of his retirement (or,
if later, six months following his termination of service as a director
or director emeritus of the Holding Company or a Subsidiary) or within
one (1) year after the termination of his employment by reason of
permanent and total disability (within the meaning of ss. 22(e)(3) of
the Code), or, if the Optionee is an Outside Director, within six (6)
months after he is no longer a director and a director emeritus of the
Holding Company or of a Subsidiary for reasons other than disability
or, within one (1) year after the termination of his service by reason
of disability, any option granted to him may be exercised in whole or
in part at any time within one (1) year after the date of such death by
the executor or administrator of his estate or by the person or persons
entitled to the option by will or by applicable laws of descent and
distribution until the expiration of the option term as fixed by the
Committee, whether or not the option was otherwise exercisable at the
date of his death. Notwithstanding the foregoing provisions of this
subsection (e), no option shall in any event be exercisable after the
expiration of the period fixed by the Committee in accordance with
subsection (b) above.
(f) Nontransferability of Option. No option may be transferred by
the Optionee otherwise than by will or the laws of descent and
distribution or pursuant to a qualified domestic relations order as
defined by the Code or Title I of the Employee Retirement Income
Security Act, or the rules thereunder, and during the lifetime of the
Optionee options shall be exercisable only by the Optionee or his
guardian or legal representative.
(g) No Right to Continued Service. Nothing in this Plan or in any
agreement entered into pursuant hereto shall confer on any person any
right to continue in the employ or service of the Holding Company or
its Subsidiaries or affect any rights the Holding Company, a
Subsidiary, or the shareholders of the Holding Company may have to
terminate his service at any time.
(h) Maximum Incentive Stock Options. The aggregate fair market
value of stock with respect to which incentive stock options (within
the meaning of ss. 422A of the Code) are exercisable for the first time
by an Optionee during any calendar year under the Plan or any other
plan of the Holding Company or its Subsidiaries shall not exceed
$100,000. For this purpose, the fair market value of such shares shall
be determined as of the date the option is granted and shall be
computed in such manner as shall be determined by the Committee,
consistent with the requirements of ss. 422A of the Code.
(i) Agreement. Each option shall be evidenced by an agreement
between the Optionee and the Holding Company which shall provide, among
other things, that, with respect to incentive stock options, the
Optionee will advise the Holding Company immediately upon any sale or
transfer of the shares of Common Stock received upon exercise of the
option to the extent such sale or transfer takes place prior to the
later of (a) two (2) years from the date of grant or (b) one (1) year
from the date of exercise.
(j) Investment Representations. Unless the shares subject to an
option are registered under applicable federal and state securities
laws, each Optionee by accepting an option shall be deemed to agree for
himself and his legal representatives that any option granted to him
and any and all shares of Common Stock purchased upon the exercise of
the option shall be acquired for investment and not with a view to, or
for the sale in connection with, any distribution thereof, and each
notice of the exercise of any portion of an option shall be accompanied
by a representation in writing, signed by the Optionee or his legal
representatives, as the case may be, that the shares of Common Stock
are being acquired in good faith for investment and not with a view to,
or for sale in connection with, any distribution thereof (except in
case of the Optionee's legal representatives for distribution, but not
for sale, to his legal heirs, legatees and other testamentary
beneficiaries). Any shares issued pursuant to an exercise of an option
may bear a legend evidencing such representations and restrictions.
6. Incentive Stock Options and Non-Qualified Stock Options. Options
granted under the Plan may be incentive stock options under ss. 422A of the Code
or non-qualified stock options, provided, however, that Outside Directors shall
be granted only non-qualified stock options. All options granted hereunder will
be clearly identified as either incentive stock options or non-qualified stock
options. In no event will the exercise of an incentive stock option affect the
right to exercise any non-qualified stock option, nor shall the exercise of any
non-qualified stock option affect the right to exercise any incentive stock
option. Nothing in this Plan shall be construed to prohibit the grant of
incentive stock options and non-qualified stock options to the same person,
provided, further, that incentive stock options and non-qualified stock options
shall not be granted in a manner whereby the exercise of one non-qualified stock
option or incentive stock option affects the exercisability of the other.
7. Adjustment of Shares. In the event of any change after the effective
date of the Plan in the outstanding stock of the Holding Company by reason of
any reorganization, recapitalization, stock split, stock dividend, combination
of shares, exchange of shares, merger or consolidation, liquidation,
extraordinary distribution (consisting of cash, securities, or other assets), or
any other change after the effective date of the Plan in the nature of the
shares of stock of the Holding Company, the Committee shall determine what
changes, if any, are appropriate in the number and kind of shares reserved under
the Plan, and the Committee shall determine what changes, if any, are
appropriate in the option price under and the number and kind of shares covered
by outstanding options granted under the Plan. Any determination of the
Committee hereunder shall be conclusive.
8. Cash Awards. The Committee may, at any time and in its discretion,
grant to any Optionee who is granted a non-qualified stock option the right to
receive, at such times and in such amounts as determined by the Committee in its
discretion, a cash amount ("cash award") which is intended to reimburse the
Optionee for all or a portion of the federal, state and local income taxes
imposed upon such Optionee as a consequence of the exercise of a non-qualified
stock option and the receipt of a cash award.
9. Replacement and Extension of the Terms of Options and Cash Awards.
The Committee from time to time may permit an Optionee under the Plan or any
other stock option plan heretofore or hereafter adopted by the Holding Company
or any Subsidiary to surrender for cancellation any unexercised outstanding
stock option and receive from his employing corporation in exchange therefor an
option for such number of shares of Common Stock as may be designated by the
Committee. Such Optionees also may be granted related cash awards as provided in
Section 8 hereof.
10. Change in Control. In the event of a Change in Control, all options
previously granted and still outstanding under the Plan regardless of their
terms, shall become exercisable. For this purpose, "Change in Control" shall
mean a change in control of the Holding Company or Owen, within the meaning of
12 C.F.R. ss. 225.41(b) (other than a change of control resulting from a trustee
or other fiduciary holding shares of Common Stock under an employee benefit plan
of the Holding Company or any of its Subsidiaries).
11. Tax Withholding. Whenever the Holding Company proposes or is
required to issue or transfer shares of Common Stock under the Plan, the Holding
Company shall have the right to require the Optionee or his or her legal
representative to remit to the Holding Company an amount sufficient to satisfy
any federal, state and/or local withholding tax requirements prior to the
delivery of any certificate or certificates for such shares, and whenever under
the Plan payments are to be made in cash, such payments shall be net of an
amount sufficient to satisfy any federal, state and/or local withholding tax
requirements. If permitted by the Committee and pursuant to procedures
established by the Committee, an Optionee may make a written election to have
shares of Common Stock having an aggregate fair market value, as determined by
the Committee, consistent with the requirements of Treas. Reg. ss. 20.2031-2,
sufficient to satisfy the applicable withholding taxes, withheld from the shares
otherwise to be received upon the exercise of a non-qualified option.
12. Amendment. The Board of Directors of the Holding Company may amend
the Plan from time to time and, with the consent of the Optionee, the terms and
provisions of his option or cash award, except that without the approval of the
holders of at least a majority of the shares of the Holding Company voting in
person or by proxy at a duly constituted meeting or adjournment thereof:
(a) the number of shares of stock which may be reserved for
issuance under the Plan may not be increased, except as provided in
Section 7 hereof;
(b) the period during which an option may be exercised may not be
extended beyond ten (10) years and one day from the date on which such
option was granted; and
(c) the class of persons to whom options or cash awards may be
granted under the Plan shall not be modified materially.
No amendment of the Plan, however, may, without the consent of the
Optionees, make any changes in any outstanding options or cash awards
theretofore granted under the Plan which would adversely affect the rights of
such Optionees.
13. Termination. The Board of Directors of the Holding Company may
terminate the Plan at any time and no option or cash award shall be granted
thereafter. Such termination, however, shall not affect the validity of any
option or cash award theretofore granted under the Plan. In any event, no
incentive stock option may be granted under the Plan after the date which is ten
(10) years from the effective date of the Plan.
14. Successors. This Plan shall be binding upon the successors and
assigns of the Holding Company.
15. Governing Law. The terms of any options granted hereunder and the
rights and obligations hereunder of the Holding Company, the Optionees and their
successors in interest shall be governed by Indiana law.
16. Government and Other Regulations. The obligations of the Holding
Company to issue or transfer and deliver shares under options granted under the
Plan or make cash awards shall be subject to compliance with all applicable
laws, governmental rules and regulations, and administrative action.
17. Effective Date. The Plan shall become effective on the date the
Plan is approved by the holders of at least a majority of the shares of the
Holding Company voting in person or by proxy at a duly constituted meeting or
adjournment thereof and any options granted pursuant to the Plan may not be
exercised until the Board of Directors of the Holding Company has been advised
by counsel that such approval has been obtained and all other applicable legal
requirements have been met.
<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, 1997 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-30-1997
<PERIOD-START> JUL-1-1997
<PERIOD-END> SEP-30-1997
<EXCHANGE-RATE> 1.000
<CASH> 187
<INT-BEARING-DEPOSITS> 1,982
<FED-FUNDS-SOLD> 0
<TRADING-ASSETS> 0
<INVESTMENTS-HELD-FOR-SALE> 2,077
<INVESTMENTS-CARRYING> 0
<INVESTMENTS-MARKET> 0
<LOANS> 35,344
<ALLOWANCE> 257
<TOTAL-ASSETS> 41,309
<DEPOSITS> 25,863
<SHORT-TERM> 4,300
<LIABILITIES-OTHER> 196
<LONG-TERM> 3,700
<COMMON> 4,314
0
0
<OTHER-SE> 2,937
<TOTAL-LIABILITIES-AND-EQUITY> 41,309
<INTEREST-LOAN> 820
<INTEREST-INVEST> 26
<INTEREST-OTHER> 46
<INTEREST-TOTAL> 892
<INTEREST-DEPOSIT> 323
<INTEREST-EXPENSE> 451
<INTEREST-INCOME-NET> 441
<LOAN-LOSSES> 26
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<EXPENSE-OTHER> 340
<INCOME-PRETAX> 134
<INCOME-PRE-EXTRAORDINARY> 134
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 80
<EPS-PRIMARY> 0.19
<EPS-DILUTED> 0.19
<YIELD-ACTUAL> 9.30
<LOANS-NON> 673
<LOANS-PAST> 0
<LOANS-TROUBLED> 0
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<ALLOWANCE-OPEN> 231
<CHARGE-OFFS> 0
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<ALLOWANCE-CLOSE> 257
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</TABLE>
