<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
February 3, 1997
----------------
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 jurisdiction (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 January 22, 1997, the Registrant issued the attached Press
Release.
ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS
(c) Exhibits
1. Press Release, dated January 22, 1997.
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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: February 3, 1997 By: /s/ C. Steven Sjogren
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C. Steven Sjogren
President and
Chief Executive Officer
<PAGE>
HOMECORP, INC. REPORTS FOURTH QUARTER AND ANNUAL EARNINGS
Rockford, Illinois, January 22, 1997 - HomeCorp, Inc. (NASDAQ:HMCI), the parent
company for HomeBanc, fsb today reported earnings for the quarter and the full
year ended December 31, 1996. Earnings for the fourth quarter were $348,609 or
$0.29 per share up 10.5% from $315,479 or $0.27 per share during the same period
last year. HomeCorp's earnings for the twelve month period were impacted by
Congressional legislation which included a special assessment on all
institutions insured under the Federal Deposit Insurance Corporation's (FDIC)
Savings Association Insurance Fund (SAIF). HomeCorp's special assessment
resulted in a net after tax reduction in the full year's earnings of $1,246,194.
Excluding this special assessment, HomeCorp's full year's earnings were
$1,605,025 or $1.36 per share, an increase of 33% from $1,207,482 or $1.03 per
share during the full year 1995. Including the special assessment, HomeCorp
reported earnings for the full year 1996 of $358,831 or $0.30 per share.
The Company's earnings for the fourth quarter and full year 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 fourth quarter
increased 10% over the corresponding period last year, and increased 16.7% over
the prior year to $1.7 million for the full year 1996. Income from real estate
development totaled $486,629 during the fourth quarter of 1996 and $861,175
during the full year 1996 as a result of real estate closings. This is
consistent with the Company's ongoing plan to reduce its involvement in real
estate development activities.
Net interest income for the fourth quarter increased nearly 7% over the fourth
quarter of 1995. The Company's net interest income for the full year 1996 was
negatively impacted by the transfer of a significant earning asset to real
estate owned; earnings on real estate owned are reported as non-interest income.
Net interest income, exclusive of the transfer, would have increased 5.1% from
the year earlier. The Bank's net interest margin also increased to 3.15% during
the fourth quarter of 1996 from 2.92% during the same quarter last year.
The Bank's continued focus on growth in our core banking business has resulted
in a 3.5% increase in loan originations during 1996 when compared to 1995.
While the real estate loan originations remained relatively constant year to
year, steady growth continued in consumer and business loans. Core deposit
balances also increased approximately 4.5% over the prior year and the number of
account relationships increased nearly 7%.
Real estate owned declined slightly during the period. The Bank's provision for
loan losses during the fourth quarter was $170,000. The Bank's allowance for
loan losses totaled approximately $1.6 million at December 31, 1996,
representing .60% of total loans. The provision for loss on real estate and
other includes a $246,000 provision for costs associated with termination of the
Bank's position as a credit enhancer.
The Company had total assets of $335.8 million and total deposits of $311.8
million and net loans receivable of $259.1 million at December 31, 1996.
Stockholders' Equity at December 31, 1996 was $20.9 million representing a book
value of $18.48 per share.
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, continues to be 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.
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SELECTED CONSOLIDATED FINANCIAL INFORMATION
<TABLE>
<CAPTION>
12/31/96 12/31/95
-------- --------
Selected Balance Sheet Data:
<S> <C> <C>
Total Assets $335,824,474 $338,026,597
Loans Receivable, Net 259,139,564 261,021,836
Loans Held for Sale 1,872,513 4,741,405
Mortgage-Backed Securities 18,858,630 24,487,509
Investment Securities 5,502,353 6,504,355
Securities Held For Sale 12,496,885 8,311,118
Investment in Real Estate Dev. 5,094,960 4,059,899
311,754,446 314,293,883
Stockholders' Equity $ 20,858,256 $ 20,423,500
Book Value Per Share * $18.48 $18.13
Book Value Per Share-Fully Diluted $17.73 $17.46
Stockholders' Equity
to Total Assets 6.21% 6.04%
* 1,128,579 Shares Outstanding at December 31, 1996.
Three Months Ended Twelve Months Ended
12/31/96 12/31/95 12/31/96 12/31/95
-------- -------- -------- --------
<S> <C> <C> <C> <C>
Selected Operating Data:
Total Interest Income $6,208,339 $ 6,116,853 $ 24,381,306 $ 24,435,824
Total Interest Expense 3,779,541 3,846,043 14,885,227 15,064,598
---------- ------------ ------------ ------------
Net Interest Income 2,428,798 2,270,810 9,496,079 9,371,226
Provision for Loan Losses 170,000 90,000 565,000 360,000
Provision for Loss on Real Estate
and Other 346,000 0 346,000 0
Loan Fees and Service Charges 447,136 406,121 1,699,220 1,455,525
Income (Loss) from Real Estate 486,629 (80,272) 861,175 (53,673)
REO Operations 120,162 115,573 471,109 115,573
Other Non-Interest Operating Inc. 59,598 18,117 165,512 129,370
Non-Interest Operating Expense 2,673,362 2,236,921 10,110,528 9,004,280
SAIF Special Assessment 0 0 2,042,942 0
Gains on Sale of Investments,
Mortgage-Backed Securities,
and Loans 203,849 113,221 933,314 297,046
---------- ------------ ------------ ------------
Income Before Income Taxes 556,810 516,649 561,939 1,950,787
Income Tax Expense 208,201 201,170 203,108 743,305
---------- ------------ ------------ ------------
Net Income $ 348,609 $ 315,479 $ 358,831 $ 1,207,482
========== ============ ============ ==========
Earnings Per Share:
Net Income $0.29 $0.27 $0.30 $1.03
===== ===== ===== =====
EFFECT OF SAIF ASSESSMENT
Income/ Per
(Loss) Share
------------ --------
Net income/(Loss) as reported $ 358,831 $0.30
------------ -----
SAIF (FDIC) Assessment 2,042,942
Less Income Tax Effect (796,748)
------------
SAIF (FDIC) Assessment - Net 1,246,194 1.06
------------ ----
Results excluding effect
of SAIF Assessment $ 1,605,025 $1.36
============ =====
</TABLE>
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 9
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-START> JAN-01-1996
<PERIOD-END> DEC-31-1996
<CASH> 13,959
<INT-BEARING-DEPOSITS> 181
<FED-FUNDS-SOLD> 0
<TRADING-ASSETS> 0
<INVESTMENTS-HELD-FOR-SALE> 12,497
<INVESTMENTS-CARRYING> 24,361
<INVESTMENTS-MARKET> 24,048
<LOANS> 260,722
<ALLOWANCE> 1,582
<TOTAL-ASSETS> 335,824
<DEPOSITS> 311,754
<SHORT-TERM> 0
<LIABILITIES-OTHER> 3,212
<LONG-TERM> 0
<COMMON> 11
0
0
<OTHER-SE> 20,847
<TOTAL-LIABILITIES-AND-EQUITY> 335,824
<INTEREST-LOAN> 21,788
<INTEREST-INVEST> 2,203
<INTEREST-OTHER> 390
<INTEREST-TOTAL> 24,381
<INTEREST-DEPOSIT> 14,749
<INTEREST-EXPENSE> 14,885
<INTEREST-INCOME-NET> 9,496
<LOAN-LOSSES> 565
<SECURITIES-GAINS> (10)
<EXPENSE-OTHER> 12,153
<INCOME-PRETAX> 562
<INCOME-PRE-EXTRAORDINARY> 359
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 359
<EPS-PRIMARY> 0.30
<EPS-DILUTED> 0.30
<YIELD-ACTUAL> 3.04
<LOANS-NON> 2,146
<LOANS-PAST> 1,445
<LOANS-TROUBLED> 0
<LOANS-PROBLEM> 197
<ALLOWANCE-OPEN> 1,175
<CHARGE-OFFS> 163
<RECOVERIES> 5
<ALLOWANCE-CLOSE> 1,582
<ALLOWANCE-DOMESTIC> 1,582
<ALLOWANCE-FOREIGN> 0
<ALLOWANCE-UNALLOCATED> 0
</TABLE>
