SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
{Amendment No. 1)
(Mark One)
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934 FOR THE QUARTERLY PERIOD ENDED DECEMBER 31, 1998
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 Identification
incorporation or organization) 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 February 1, 1999 was 890,982.
<PAGE>
Home Financial Bancorp
Form 10-Q
Index
Page No.
Forward Looking Statements 3
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements
Consolidated Condensed Statement of
Financial Condition as of December 31,
1998 and June 30, 1998 (Unaudited) 4
Consolidated Condensed Statement of
Income for the three months ended December 31,
1998 and 1997 (Unaudited) 5
Consolidated Condensed Statement of
Income for the six months ended December 31,
1998 and 1997 (Unaudited) 6
Consolidated Condensed Statement of Changes in
Shareholders' Equity for the six months
ended December 31, 1998 and 1997 (Unaudited) 7
Consolidated Condensed Statement of
Cash Flows for the six months ended December
31, 1998 and 1997 (Unaudited) 8
Notes to Consolidated Condensed Financial Statements 10
Item 2. Management's Discussion and Analysis of Financial Condition
and Results of Operations. 12
Item 3. Quantitative and Qualitative Disclosures About Market Risk 18
PART II. OTHER INFORMATION
Item 1. Legal Proceedings 21
Item 2. Changes in Securities 21
Item 3. Defaults Upon Senior Securities 21
Item 4. Submission of Matters to a Vote of Security Holders 21
Item 5. Other Information 21
Item 6. Exhibits and Reports on Form 8-K 21
SIGNATURES 22
Item 1, Financial Statements, of the Registrant's Form 10-Q for the period ended
December 31, 1998, is amended by this filing to correct clerical errors in the
preparation of the EDGAR document in the original filing made on February 12,
1999.
<PAGE>
FORWARD LOOKING STATEMENTS
This Quarterly 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 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.
<PAGE>
HOME FINANCIAL BANCORP
AND WHOLLY-OWNED SUBSIDIARY
OWEN COMMUNITY BANK, s.b.
CONSOLIDATED CONDENSED STATEMENT OF FINANCIAL CONDITION
<TABLE>
<CAPTION>
December 31, June 30,
1998 1998
------------ ------------
(Unaudited)
ASSETS
<S> <C> <C>
Cash $ 401,730 $ 345,041
Short-term interest-bearing deposits 4,785,301 3,457,062
------------ ------------
Total cash and cash equivalents 5,187,031 3,802,103
Investment securities available for sale 8,745,277 1,917,735
Loans 33,925,462 34,278,725
Allowance for loan losses (316,235) (319,595)
------------ ------------
Net loans 33,609,227 33,959,130
Real estate acquired for development 12,721 20,758
Premises and equipment 2,048,122 1,687,355
Federal Home Loan Bank Stock 610,000 500,000
Other assets 1,348,220 672,662
------------ ------------
Total assets $ 51,560,598 $ 42,559,743
============ ============
LIABILITIES
Deposits $ 32,139,266 $ 26,648,610
Federal Home Loan Bank advances 12,200,000 8,200,000
Other liabilities 29,262 205,227
------------ ------------
Total liabilities 44,368,528 35,053,837
------------ ------------
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 - 890,982 shares and 929,052 4,246,811 4,372,621
Retained earnings 3,548,617 3,689,484
Unearned Compensation RRP (206,067) (228,169)
Unearned ESOP shares (284,073) (304,310)
Accumulated other comprehensive income (loss) (113,218) (23,720)
------------ ------------
Total shareholders' equity 7,192,070 7,505,906
------------ ------------
Total liabilities and shareholders' equity $ 51,560,598 $ 42,559,743
============ ============
</TABLE>
See notes to consolidated condensed financial statements.
<PAGE>
HOME FINANCIAL BANCORP
AND WHOLLY-OWNED SUBSIDIARY
OWEN COMMUNITY BANK, s.b.
CONSOLIDATED CONDENSED STATEMENT OF INCOME
<TABLE>
<CAPTION>
Three Months Ended
December 31,
------------------------
1998 1997
-------- --------
(Unaudited)
Interest income
<S> <C> <C>
Loans $834,475 $828,830
Interest-bearing deposits 44,945 48,073
Investment securities 60,436 21,078
Other interest and dividend income 15,360 10,082
-------- --------
Total interest income 955,216 908,063
Interest expense
Deposits 363,769 317,359
Advances from Federal Home Loan Bank and
other borrowings 115,111 144,664
-------- --------
Total interest expense 478,880 462,023
-------- --------
Net interest income 476,336 446,040
Provision for losses on loans 12,000 25,500
-------- --------
Net interest income after provision for losses on loans 464,336 420,540
-------- --------
Other income
Service charges on deposit accounts 18,762 14,043
Loss on sale of real estate acquired for
development 6,661 7,945
Gain on sales of securities available for sale 3,138 51,433
Other income 15,138 21,620
-------- --------
Total other income 43,699 95,041
-------- --------
Other expenses
Salaries and employee benefits 217,972 181,163
Net occupancy expenses 29,053 20,093
Equipment expenses 26,552 14,842
Deposit insurance expense 3,831 4,095
Computer processing fees 25,823 19,883
Legal and accounting fees 31,120 48,255
Other expenses 125,720 96,634
-------- --------
Total noninterest expenses 460,071 384,965
-------- --------
Income before income taxes 47,964 130,616
Income tax expense 20,546 51,303
-------- --------
Net income $ 27,418 $ 79,313
======== ========
Basic and diluted net income per share $ .03 $ .10
</TABLE>
See notes to consolidated condensed financial statements.
<PAGE>
HOME FINANCIAL BANCORP
AND WHOLLY-OWNED SUBSIDIARY
OWEN COMMUNITY BANK, s.b.
CONSOLIDATED CONDENSED STATEMENT OF INCOME
<TABLE>
<CAPTION>
Six Months Ended
December 31,
------------------------
1998 1997
-------- --------
(Unaudited)
Interest income
<S> <C> <C>
Loans $1,651,416 $1,648,517
Interest-bearing deposits 88,909 83,618
Investment securities 77,412 47,355
Other interest and dividend income 31,615 20,479
---------- ----------
Total interest income 1,849,352 1,799,969
Interest expense
Deposits 693,669 640,183
Advances from Federal Home Loan Bank and
other borrowings 240,735 272,729
---------- ----------
Total interest expense 934,404 912,913
---------- ----------
Net interest income 914,948 887,056
Provision for losses on loans 24,000 51,000
---------- ----------
Net interest income after provision for losses on loans 890,948 836,056
---------- ----------
Other income
Service charges on deposit accounts 35,788 26,668
Gain (loss) on sale of real estate acquired for
development 6,148 7,667
Gain (loss) on sales of securities available for sale 3,326 84,058
Other income 21,190 35,151
---------- ----------
Total other income 66,452 153,544
---------- ----------
Other expenses
Salaries and employee benefits 429,364 361,659
Net occupancy expenses 52,483 41,998
Equipment expenses 39,257 32,080
Deposit insurance expense 7,769 7,847
Computer processing fees 49,087 39,342
Legal and accounting fees 51,418 72,503
Other expenses 209,355 169,222
---------- ----------
Total noninterest expenses 838,733 724,651
---------- ----------
Income before income taxes 118,667 264,950
Income tax expense 49,990 105,373
---------- ----------
Net income $ 68,677 $ 159,577
========== ==========
Basic and diluted net income per share $ .08 $ .19
</TABLE>
See notes to consolidated condensed financial statements.
<PAGE>
HOME FINANCIAL BANCORP
AND WHOLLY-OWNED SUBSIDIARY
OWEN COMMUNITY BANK, s.b.
Form 10-Q
CONSOLIDATED CONDENSED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY
<TABLE>
<CAPTION>
1998 1997
----------- -----------
(Unaudited)
<S> <C> <C>
Balance, July 1 $ 7,505,906 $ 7,197,134
Comprehensive income
Net income 68,677 159,577
Other comprehensive income, net of tax
Unrealized gain (loss) on securities, net of
reclassification adjustments (89,498) 86,902
----------- -----------
Other comprehensive income (loss) (20,821) 246,479
Common stock repurchased (304,029) (73,454)
Fair value adjustment of ESOP shares (488) 28,338
ESOP shares earned 39,718 20,236
RRP shares earned 22,102 18,140
Cash dividends (50,318) (46,723)
----------- -----------
Balance, December 31 $ 7,192,070 $ 7,390,150
=========== ===========
</TABLE>
See notes to consolidated condensed financial statements.
<PAGE>
HOME FINANCIAL BANCORP
AND WHOLLY-OWNED SUBSIDIARY
OWEN COMMUNITY BANK, s.b.
CONSOLIDATED CONDENSED STATEMENT OF CASH FLOWS
<TABLE>
<CAPTION>
Six Months Ended
December 31,
-------------------------------
1998 1997
----------- -----------
(Unaudited)
OPERATING ACTIVITIES
<S> <C> <C>
Net income $ 68,677 $ 159,577
Adjustments to reconcile net income to net cash
Provided by operating activities:
Provision for loan losses 24,000 51,000
Depreciation 65,070 42,257
Investment securities gains (3,326) (84,058)
Change in interest receivable (19,392) 13,112
Fair value adjustment of ESOP shares 488 28,338
Amortization of unearned ESOP shares 20,237 20,236
Amortization of unearned RRP shares 22,102 18,140
Other adjustments (142,720) 4,783
----------- -----------
Net cash provided by operating activities 35,136 253,385
----------- -----------
INVESTING ACTIVITIES
Purchases of securities available for sale (7,689,758) (1,326,242)
Proceeds from sales of securities available for sale 565,389 1,103,937
Proceeds from maturities and repayments of investment
securities available for sale 148,241 434,741
Net changes in loans 118,503 (841,774)
Purchases of Federal Home Loan Bank of Indianapolis
Stock (110,000) --
Purchases of premises and equipment (425,837) (185,316)
Proceeds from real estate owned sales 207,400 145,616
Proceeds from sale of real estate acquired for
Development 8,037 --
Disbursements for low-income housing investment (608,492) --
----------- -----------
Net cash used by investing activities (7,786,517) (669,038)
----------- -----------
FINANCING ACTIVITIES Net change in:
NOW and savings accounts 1,668,489 323,057
Certificates of deposit 3,822,167 (571,128)
Proceeds from Federal Home Loan Bank advances 6,000,000 2,000,000
Repayment of Federal Home Loan Bank advances (2,000,000) (1,000,000)
Purchase of stock (304,029) (73,454)
Cash dividends (50,318) (46,723)
----------- -----------
Net cash provided by financing activities 9,136,309 631,752
----------- -----------
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Six Months Ended
December 31,
----------------------------
1998 1997
---------- ----------
(Unaudited)
NET CHANGE IN CASH AND CASH EQUIVALENTS
<S> <C> <C>
1,384,928 938,512
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD
3,802,103 1,385,979
---------- ----------
CASH AND CASH EQUIVALENTS, END OF PERIOD
$5,187,031 $2,324,491
========== ==========
ADDITIONAL CASH FLOWS AND SUPPLEMENTARY INFORMATION
Interest paid $ 934,404 $ 797,146
Income tax paid 170,000 129,000
</TABLE>
See notes to consolidated condensed financial statements.
<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. The results of operations for
the six months ended December 31, 1998 are not necessarily indicative of those
expected for the remainder of the year.
NOTE B: Stock Option Plan
On July 23, 1997, the Board of Directors approved a Stock Option Plan.
Stockholders approved the Plan 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. Under the Stock Option Plan 71,600 incentive stock
options have been granted to directors, executive officers, and other employees.
NOTE C: Earnings Per Share
Earnings per share (EPS) were computed as follows:
<TABLE>
<CAPTION>
For the Three Months Ended
December 31, 1998 1997
----------------------------------------- ----------------------------------------
Weighted Per Weighted Per
Net Average Share Net Average Share
Income Shares Amount Income Shares Amount
----------------------------------------- ----------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Basic Earnings Per Share:
Income Available to
Common Stockholders $ 27,418 808,443 $0.03 $ 79,313 831,938 $0.10
============= ========
Effect of Dilutive Securities 0 30 0 1,704
---------------------------- ---------------------------
Diluted Earnings Per Share:
Income Available to
Common Stockholders $ 27,418 808,473 $0.03 $ 79,313 833,642 $0.10
========================================= ========================================
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
For the Six Months Ended
December 31, 1998 1997
---------------------------------------- ----------------------------------------
Weighted Per Weighted Per
Net Average Share Net Average Share
Income Shares Amount Income Shares Amount
---------------------------------------- ----------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Basic Earnings Per Share:
Income Available to
Common Stockholders $ 68,677 822,383 $ 0.08 $ 159,577 831,036 $ 0.19
============= =============
Effect of Dilutive Securities 0 606 0 2,517
--------------------------- ---------------------------
Diluted Earnings Per Share:
Income Available to
Common Stockholders $ 68,677 822,989 $ 0.08 $ 159,577 833,553 $ 0.19
======================================== ========================================
</TABLE>
NOTE D: 2 for 1 Stock Split
On December 9, 1997, the Company announced a 2 for 1 stock split, under which
every share of its Common Stock outstanding at the close of business on December
23, 1997 was converted into two shares of Common Stock. The additional
certificates were distributed to shareholders on January 6, 1998. As a result of
the stock split, the number of shares outstanding increased from 464,526 to
929,052 shares. For presentation in this report, all share and per share data
have been restated for the 2 for 1 stock split.
NOTE E: Other Comprehensive Income
<TABLE>
<CAPTION>
1998
Tax
For the Six Months Ended Before-Tax (Expense) Net-of-Tax
December 31 Amount Benefit Amount
Unrealized gains (losses) on securities:
<S> <C> <C> <C>
Unrealized holding gains (losses) arising during the year $ (144,874) $ 57,385 $ (87,489)
Less: reclassification adjustment for gains (losses) realized in
net income
3,326 (1,317) 2,009
------------ ------------- -------------
Other comprehensive income (loss) $ (148,200) $ 58,702 $ (89,498)
=============================================
1997
Tax
For the Six Months Ended Before-Tax (Expense) Net-of-Tax
December 31 Amount Benefit Amount
Unrealized gains (losses) on securities:
Unrealized holding gains (losses) arising during the year $ 227,959 $ (90,294) $ 137,665
Less: reclassification adjustment for gains (losses) realized in
net income
84,058 (33,295) 50,763
------- -------- ------
Other comprehensive income (loss) $ 143,901 $ (56,999) $ 86,902
================================================
</TABLE>
<PAGE>
Signatures
Pursuant to the requirements of the Securities Exchange Act of 1934, as amended,
the Registrant has duly caused this Amendment to be signed on its behalf by the
undersigned thereunto duly authorized.
HOME FINANCIAL BANCORP
Date: February 23, 1999 By:/s/ Kurt D. Rosenberger
Kurt D. Rosenberger
Vice President and
Chief Financial Officer
