<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
October 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 0-18284 36-3680814
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(State or other jurisdication (Commission (IRS Employer
of incorporaton 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 October 15, 1996, the Registrant issued the attached Press
Release.
ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS
(c) Exhibits
1. Press Release, dated October 15, 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: October 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 THIRD QUARTER
Rockford, Illinois, October 15, 1996 - HomeCorp, Inc. (NASDAQ:HMCI), the parent
company for HomeBanc, fsb today announced earnings for the third quarter and
nine months ended September 30, 1996. HomeCorp's third quarter earnings were
impacted by Congressional legislation signed by President Clinton on September
30, 1996 which included a special assessment on all institutions insured under
the Savings Association Insurance Fund (SAIF). HomeCorp's special assessment
totaled $2,042,942 which resulted in a net after tax reduction in the quarterly
earnings of $1,246,194. Excluding the special assessment, HomeCorp's third
quarter earnings were $489,827 or $.41 per share, an increase of 76% from the
$277,953 or $.23 per share reported for the same period last year. Including
the assessment, HomeCorp, Inc. reported a loss from operations for the third
quarter ended September 30, 1996, of $756,367 or $.64 per share.
Earnings for the nine month period were likewise impacted by the special
assessment and resulted in net income for the nine months ended September 30,
1996 of $10,222. Results for the nine month period excluding the special
assessment were $1,256,416 or $1.06 per share; up 41% from $892,003 or $.76 per
share for the comparable nine month period last year.
The Board of Directors has long supported the concept of a special assessment
and believes that its implementation will be positive for the Company. According
to C. Steven Sjogren, the Company's President and CEO, "While the one-time
charge to add reserves to the federal deposit insurance fund is a significant
burden placed on our industry, we believe it will be worth it in the long run.
With the reduction in premiums, as a result of the special assessment, our cost
for deposit insurance will become more consistent with that of our competitors,
and will allow a payback in less than four years."
The Company's earnings for the third quarter of 1996 were favorably impacted by
gains in loan fees and service charges as well as income from real estate
development. Loan fees and service charges during the third quarter increased
17% to $436,298 from the corresponding period last year. Income from real
estate development totaled $388,409 during the quarter as the result of real
estate closings. The Company's net interest income reflects the
reclassification of a significant earning asset to real estate owned. Net
interest income, exclusive of the reclassification showed a 4.4% increase from
the same year earlier quarter.
The Company's overall origination of new loans continued at previous levels with
increases in consumer lending offsetting declines in real estate loan volumes.
The Bank's provision for possible loan losses during the recent quarter was
$175,000. The Bank's total allowance for possible loan losses totaled nearly
$1.5 million at September 30, 1996 representing 118% of non-performing loans.
Non-interest operating expenses increased mainly as a result of the one-time
special FDIC assessment and the Bank's increased focus on community banking.
Real estate owned remained virtually unchanged during the quarter.
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The Company had total assets of $340.0 million and deposits of $307.8 million at
September 30, 1996. Stockholders' equity at September 30, 1996 was $20.4
million, representing a book value of $18.10 per share after the impact of the
one-time FDIC Special Assessment.
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 of the supervisory
goodwill as capital created when the Bank acquired failing institutions in the
1980's, has been stayed. HomeBanc, along with others is awaiting notice from the
court of its order of priority for scheduling hearings of these claims.
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>
09/30/96 12/31/95
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<S> <C> <C>
Selected Balance Sheet Data:
Total Assets $340,448,802 $338,026,597
Loans Receivable, Net 270,844,733 261,021,836
Loans Held for Sale 1,593,435 4,741,405
Mortgage-Backed Securities 19,679,101 24,487,509
Investment Securities 5,502,862 6,504,355
Securities Held For Sale 12,148,726 8,311,118
Investment in Real Estate Dev. 5,197,628 4,059,899
Deposits 307,820,247 314,293,883
Total Borrowings 8,300,000 0
Stockholders' Equity $ 20,424,218 $ 20,423,500
Book Value Per Share * $18.10 $ 18.13
Book Value Per Share-Fully Diluted $17.37 $ 17.46
Stockholders' Equity
to Total Assets 6.00% 6.04%
</TABLE>
* 1,128,579 Shares Outstanding at September 30, 1996.
<TABLE>
<CAPTION>
Three Months Ended Nine Months Ended
09/30/96 09/30/95 09/30/96 09/30/95
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<S> <C> <C> <C> <C>
Selected Operating Data:
Total Interest Income $ 6,134,173 $6,350,927 $18,172,967 $18,318,971
Total Interest Expense 3,751,816 3,954,695 11,105,686 11,218,555
------------ ---------- ----------- -----------
Net Interest Income 2,382,357 2,396,232 7,067,281 7,100,416
Provision for Loan Losses 175,000 90,000 395,000 270,000
Loan Fees and Service Charges 436,298 371,245 1,252,084 1,049,404
Income (Loss) from Real Estate 388,409 (68,374) 374,546 26,599
REO Operations 120,062 0 350,947 0
Other Non-Interest Operating Inc. 21,565 39,840 105,914 111,253
Non-Interest Operating Expense 4,611,253 2,304,124 9,480,108 6,767,359
</TABLE>
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<TABLE>
<S> <C> <C> <C> <C>
Net Gains on Sale of Investments,
Mortgage-Backed Securities,
and Loans 180,697 101,184 729,465 183,825
------------ ------------ ---------- -----------
Income Before Income Taxes (1,256,865) 466,003 5,129 1,434,138
Income Tax Expense (500,498) 168,050 (5,093) 542,135
------------ ------------ ---------- -----------
Net Income $ (756,367) $ 277,953 $ 10,222 $ 892,003
============ ============ ========== ===========
Earnings Per Share:
Net Income $(0.64) $ 0.23 $0.01 $ 0.76
============ ============ ========== ===========
EFFECT OF SAIF ASSESSMENT
Income/ Per Income/ Per
(Loss) Share (Loss) Share
------------ ------------ ---------- -----------
Net income/(Loss) as reported $ (756,367) $ (0.64) $ 10,222 $ 0.01
------------ ------------ ---------- -----------
SAIF (FDIC) Assessment 2,042,942 2,042,942
Less Income Tax Effect (796,748) (796,748)
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SAIF (FDIC) Assessment - Net 1,246,194 1.05 1,246,194 1.05
------------ ------------ ---------- -----------
Results excluding effect
of SAIF Assessment $ 489,827 $ 0.41 $1,256,416 $ 1.06
============ ============ ========== ===========
</TABLE>
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 9
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-START> JAN-01-1996
<PERIOD-END> SEP-30-1996
<CASH> 6,915
<INT-BEARING-DEPOSITS> 33
<FED-FUNDS-SOLD> 0
<TRADING-ASSETS> 0
<INVESTMENTS-HELD-FOR-SALE> 12,149
<INVESTMENTS-CARRYING> 25,182
<INVESTMENTS-MARKET> 24,630
<LOANS> 272,297
<ALLOWANCE> 1,452
<TOTAL-ASSETS> 340,449
<DEPOSITS> 307,820
<SHORT-TERM> 8,300
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0
0
<OTHER-SE> 20,413
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<INTEREST-TOTAL> 18,173
<INTEREST-DEPOSIT> 11,032
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</TABLE>
