<PAGE>
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
JULY 30, 1996
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Date of Report
HOMECORP, INC.
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(Exact name of registrant as specified in its charter)
DELAWARE 0-182824 36-3680814
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(State or other jurisdication (Commission (IRS Employer
of incorporation File Number) Identification
Number)
1107 EAST STATE STREET, ROCKFORD, IL 61104-2259
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(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (815) 987-2200
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ITEM 5. OTHER EVENT
On July 16, 1996, the Registrant issued the attached Press Release.
ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS
(c) Exhibits
1. Press Release, dated July 16, 1996.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this Report to be signed on its behalf by the
undersigned thereunto duly authorized.
HOMECORP, INC.
Date: July 30, 1996 By: /s/ C. Steven Sjogren
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C. Steven Sjogren
President and
Chief Executive Officer
<PAGE>
HOMECORP, INC. REPORTS FINANCIAL RESULTS FOR SECOND QUARTER
Rockford, Illinois, July 16, 1996 - HomeCorp, Inc. (NASDAQ:HMCI), the parent
company for HomeBanc, fsb today reported net income for the second quarter ended
June 30, 1996 of $411,053 or $.35 per share. This is an increase of 31.9% from
$311,668 or $.26 per share in the second quarter last year. Earnings for the six
month period ended June 30, 1996 were $766,589 or $.65 per share up 24.8% from
$614,050 or $.52 per share during the comparable six month period in 1995.
Earnings gains in the second quarter resulted from increases in both net
interest income as well as non-interest income. Net interest income and the
Bank's net interest margin increased when compared to the year earlier quarter.
Net interest income increased 5.3% over the second quarter last year. The net
interest margin increased to 3.08% during the second quarter from 2.87% during
the second quarter last year.
The Bank's originations of new loans have all continued strong during the second
quarter. In comparison to the same quarter last year total originations were up
nearly 4%. Correspondingly, sales of mortgage loans originated have increased
from $8.4 million in the second quarter of 1995 to more than $14.6 million
during the second quarter this year. This increase in volume coupled with the
adoption of FASB 122, requiring the immediate recognition of the value of the
servicing right retained when a loan is sold, has resulted in an increase in the
gain recognized on the sale of loans and investments from just over $59,000 last
year to in excess of $211,000 during the same period this year. This increased
volume of loan originations as well as our highlighted focus on community
banking have contributed to nearly a 23% increase in loan fees and service
charges. Loan fees and service charges totaled almost $419,000 during the
second quarter of this year, compared to $341,000 during the same prior year
period.
The provision for loan losses made during the quarter was $105,000. The total
allowance for possible loan losses at the end of the quarter stands at
$1,365,000 after the reclassification of $450,000 for assets transferred to real
estate owned in prior periods.
Real estate owned remained virtually unchanged during the quarter.
HomeCorp, Inc. had total assets of $339.0 million and deposits of $314.8 million
at June 30, 1996. Stockholders' equity at June 30, 1996 was $21.1 million,
representing a book value of $18.72 per share.
HomeCorp's net worth was equal to 6.23% of total assets at June 30, 1996, and
HomeBanc exceeded all regulatory capital requirements.
The Bank's suit in the United States Court of Federal Claims against the United
States for breach of contract with regard to the utilization as capital of the
supervisory goodwill, which was created when the Bank acquired failing
institutions in the 1980's, has been stayed pending the outcome of an appeal in
another case that was heard by the U.S. Supreme Court. While the Supreme Court
ruled favorably on the issue in the other case, our suit has yet to be heard.
<PAGE>
HomeCorp, Inc. is the holding company for HomeBanc, fsb which operates ten
offices in Rockford, Loves Park, CherryVale, Freeport, and Dixon, Illinois.
HomeCorp's shares are traded on the NASDAQ/National Market System, using the
symbol HMCI.
SELECTED CONSOLIDATED FINANCIAL INFORMATION
<TABLE>
<CAPTION>
06/30/96 12/31/95
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<S> <C> <C>
Selected Balance Sheet Data:
Total Assets $338,984,600 $338,026,597
Loans Receivable, Net 260,131,844 261,021,836
Loans Held for Sale 4,684,293 4,741,405
Mortgage-Backed Securities 20,914,453 24,487,509
Investment Securities 7,582,366 6,504,355
Securities Held For Sale 12,500,817 8,311,118
Investment in Real Estate Dev. 4,695,219 4,059,899
Deposits 314,811,332 314,293,883
Stockholders' Equity $ 21,132,650 $ 20,423,500
Book Value Per Share * $18.72 $18.13
Book Value Per Share-Fully Diluted $18.03 $17.46
Stockholders' Equity
to Total Assets 6.23% 6.04%
</TABLE>
* 1,128,579 Shares Outstanding at June 30, 1996.
<TABLE>
<CAPTION>
Three Months Ended Six Months Ended
06/30/96 06/30/95 06/30/96 06/30/95
-------- -------- -------- --------
<S> <C> <C> <C> <C>
Selected Operating Data:
Total Interest Income $ 6,065,503 $ 6,100,713 $12,038,794 $11,968,044
Total Interest Expense 3,646,845 3,803,614 7,353,870 7,263,860
------------ ---------- ----------- -----------
Net Interest Income 2,418,658 2,297,099 4,684,924 4,704,184
Provision for Loan Losses 105,000 90,000 220,000 180,000
Loan Fees and Service Charges 418,812 341,691 815,786 678,159
Income (Loss) from Real Estate (13,644) 147,578 (13,863) 94,973
REO Operations 115,934 - 230,885 -
Other Non-Interest Operating Inc. 51,085 38,411 84,349 71,413
Non-Interest Operating Expense 2,425,062 2,289,044 4,868,855 4,463,235
Net Gains on Sale of Investments,
Mortgage-Backed Securities,
and Loans 211,270 59,468 548,768 82,641
------------ ------------ ---------- -----------
Income Before Income Taxes 672,053 505,203 1,261,994 988,135
Income Tax Expense 261,000 193,535 495,405 374,085
------------ ------------ ---------- -----------
Net Income $ 411,053 $ 311,668 $ 766,589 $ 614,050
============ ============ ========== ===========
Earnings Per Share:
Net Income $0.35 $0.26 $0.65 $0.52
====== ===== ===== =====
</TABLE>
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 9
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-START> JAN-01-1996
<PERIOD-END> JUN-30-1996
<CASH> 6,636
<INT-BEARING-DEPOSITS> 975
<FED-FUNDS-SOLD> 4,345
<TRADING-ASSETS> 0
<INVESTMENTS-HELD-FOR-SALE> 12,501
<INVESTMENTS-CARRYING> 26,417
<INVESTMENTS-MARKET> 25,607
<LOANS> 261,496
<ALLOWANCE> 1,365
<TOTAL-ASSETS> 338,985
<DEPOSITS> 314,811
<SHORT-TERM> 0
<LIABILITIES-OTHER> 3,041
<LONG-TERM> 0
<COMMON> 11
0
0
<OTHER-SE> 21,121
<TOTAL-LIABILITIES-AND-EQUITY> 338,985
<INTEREST-LOAN> 10,648
<INTEREST-INVEST> 1,099
<INTEREST-OTHER> 291
<INTEREST-TOTAL> 12,039
<INTEREST-DEPOSIT> 7,354
<INTEREST-EXPENSE> 7,354
<INTEREST-INCOME-NET> 4,685
<LOAN-LOSSES> 220
<SECURITIES-GAINS> 0
<EXPENSE-OTHER> 4,869
<INCOME-PRETAX> 1,262
<INCOME-PRE-EXTRAORDINARY> 767
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 767
<EPS-PRIMARY> 0.65
<EPS-DILUTED> 0.65
<YIELD-ACTUAL> 2.98
<LOANS-NON> 798
<LOANS-PAST> 0
<LOANS-TROUBLED> 0
<LOANS-PROBLEM> 207
<ALLOWANCE-OPEN> 1,175
<CHARGE-OFFS> 33
<RECOVERIES> 3
<ALLOWANCE-CLOSE> 1,365
<ALLOWANCE-DOMESTIC> 1,365
<ALLOWANCE-FOREIGN> 0
<ALLOWANCE-UNALLOCATED> 0
</TABLE>
