SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the Quarterly Period Ended March 31, 1997
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
Commission file number: O-18847
HOME FEDERAL BANCORP
(Exact name of registrant as specified in its charter)
Indiana 35-1807839
(State or other Jurisdiction (I.R.S. Employer
of Incorporation or Origination) Identification No.)
222 West Second Street, Seymour, Indiana 47274-0648
(Address of Principal Executive Offices) (Zip Code)
Registrant's telephone number including area code: (812) 522-1592
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 reports), and (2) has
been subject to such filing requirements for the past 90 days.
YES X NO_____
Indicate the number of shares outstanding of each of the issuer's
classes of common stock, as of May 9, 1997:
Common Stock, no par value -- 3,390,470 shares outstanding
<PAGE>
HOME FEDERAL BANCORP
FORM 10-Q
INDEX
Page No.
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements
Consolidated Balance Sheets
(unaudited) ............................................. 1
Consolidated Statements of Income
(unaudited) ............................................. 2
Consolidated Statements of Cash Flows
(unaudited) ............................................. 3
Notes to Consolidated Financial
Statements .............................................. 4
Item 2. Management's Discussion and Analysis of
Financial Condition and Results of
Operations .............................................. 5
PART II. OTHER INFORMATION
Item 6. Exhibits and Reports on Form 8-K ................................. 10
Signatures ................................................................ 11
-i-
<PAGE>
HOME FEDERAL BANCORP
CONSOLIDATED BALANCE SHEETS
(in thousands)
(unaudited) March 31, June 30,
1997 1996
-------- --------
ASSETS:
Cash .............................................. $ 16,570 $ 19,327
Interest-bearing deposits ......................... 1,093 6,301
-------- --------
Total cash and cash equivalents ................. 17,663 25,628
-------- --------
Securities available for sale at fair value
(amortized cost 40,944 and $45,075) ........... 40,670 44,651
Securities held to maturity
(fair value $12,206 and $6,753) ............... 12,400 6,990
Loans held for sale
(fair value $4,448 and $4,666) ................ 4,401 4,623
Loans receivable, net of allowance for
loan losses of $3,458 and $3,061 .............. 559,111 520,097
Investments in joint ventures ..................... 3,189 2,855
Federal Home Loan Bank stock ...................... 4,098 3,798
Accrued interest receivable, net .................. 4,201 3,893
Premises and equipment, net ....................... 8,011 8,090
Real estate owned ................................. 93 48
Prepaid expenses and other assets ................. 2,539 2,440
Cash surrender value of life insurance ............ 5,459 5,004
Goodwill .......................................... 1,823 1,898
-------- --------
TOTAL ASSETS ................................... $663,658 $630,015
======== ========
LIABILITIES AND SHAREHOLDERS' EQUITY:
Deposits .......................................... $515,173 $489,573
Advances from Federal Home Loan Bank .............. 76,145 70,700
Senior debt ....................................... 8,125 9,100
Other borrowings .................................. 3,532 4,337
Advance payments by borrowers
for taxes and insurance ..................... 797 621
Accrued expenses and other liabilities ............ 3,807 4,167
-------- --------
Total liabilities .............................. 607,579 578,498
-------- --------
Shareholders' equity:
No par common stock; Authorized: 7,500,000 shares
Issued and outstanding: ......................... 7,478 6,819
3,389,770 shares at March 31, 1997
3,339,423 shares at June 30, 1996
Retained earnings, restricted .................... 48,766 44,953
Unrealized loss on securities available
for sale, net of deferred taxes ............... (165) (255)
-------- --------
Total shareholders' equity ..................... 56,079 51,517
-------- --------
TOTAL LIABILITIES AND SHAREHOLDERS'EQUITY ....... $663,658 $630,015
======== ========
See notes to consolidated financial statements
1
<PAGE>
CONSOLIDATED STATEMENTS OF INCOME
(in thousands except per share data)
(unaudited)
<TABLE>
<CAPTION>
Three Months Ended Nine Months Ended
March 31 March 31
------------------- -------------------
1997 1996 1997 1996
-------- -------- -------- --------
<S> <C> <C> <C> <C>
Interest income:
Loans receivable ................... $ 12,029 $ 10,900 $ 35,542 $ 32,238
Securities available for sale
and held to maturity ............ 832 805 2,454 2,466
Other interest income .............. 72 109 247 515
-------- -------- -------- --------
Total interest income ............... 12,933 11,814 38,243 35,219
-------- -------- -------- --------
Interest expense:
Deposits ........................... 5,795 5,542 17,313 16,916
Advances and borrowings ............ 1,306 1,176 3,974 3,569
-------- -------- -------- --------
Total interest expense .............. 7,101 6,718 21,287 20,485
-------- -------- -------- --------
Net interest income ................. 5,832 5,096 16,956 14,734
Provision for loan losses ........... 379 154 813 403
-------- -------- -------- --------
Net interest income after
provision for loan losses ........ 5,453 4,942 16,143 14,331
-------- -------- -------- --------
Other income:
Gain on sale of loans .............. 264 401 1,002 1,168
Gain on sale of securities ......... 0 0 20 1
Income from joint ventures ......... 40 96 282 395
Insurance, late charges, other fees 422 314 1,085 1,018
Service fees on NOW accounts ....... 402 405 1,233 1,237
Net gain (loss) on real estate owned
and repossessed assets .......... (7) 22 (23) (18)
Loan servicing income .............. 267 242 772 692
Miscellaneous ...................... 292 312 969 921
-------- -------- -------- --------
Total other income .................. 1,680 1,792 5,340 5,414
-------- -------- -------- --------
Other expenses:
Compensation and employee benefits . 2,106 1,921 5,806 5,451
Occupancy and equipment ............ 538 487 1,526 1,433
Service bureau expense ............. 207 212 586 586
Federal insurance premium .......... 17 267 3,570 796
Marketing .......................... 103 96 336 362
Goodwill amortization .............. 25 26 75 76
Miscellaneous ...................... 596 601 1,825 1,830
-------- -------- -------- --------
Total other expenses ................ 3,592 3,610 13,724 10,534
-------- -------- -------- --------
Income before income taxes .......... 3,541 3,124 7,759 9,211
Income tax provision ................ 1,370 1,244 2,991 3,634
-------- -------- -------- --------
Net Income .......................... $ 2,171 $ 1,880 $ 4,768 $ 5,577
======== ======== ======== ========
Net income per common and
common share equivalents ......... $ 0.61 $ 0.55 $ 1.37 $ 1.63
======== ======== ======== ========
Equivalent number of shares 3,532,153 3,422,601 3,477,429 3,422,178
Dividends per share $ 0.100 $ 0.083 $ 0.283 $ 0.217
</TABLE>
See notes to consolidated financial statements
2
<PAGE>
HOME FEDERAL BANCORP
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands) Nine Months Ended
(unaudited) March 31
------------------
1997 1996
------------------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income ....................................... $ 4,768 $ 5,577
Adjustments to reconcile net income to net cash
provided by operating activities:
Accretion of discounts, amortization
and depreciation ............................ 880 916
Provision for loan losses ..................... 813 403
Net gain from sale of loans ................... (670) (1,168)
Net gain from joint ventures; real estate owned (238) (360)
Net loan fees recognized ...................... (288) (75)
Proceeds from sale of loans held for sale ..... 62,216 88,555
Origination of loans held for sale ............ (61,324) (78,993)
Decrease in accrued interest and other assets 4,207 4,498
(Decrease) increase in other liabilities ...... (184) 1,229
-------- --------
Net cash provided by operating activities ........ 10,180 20,582
-------- --------
CASH FLOWS FROM INVESTING ACTIVITIES:
Net principal disbursed on loans ................. (44,272) (29,928)
Proceeds from:
Maturities/Repayments of:
Securities held to maturity ................ 221 2,472
Securities available for sale .............. 7,562 3,697
Sales of:
Securities available for sale .............. 6,572 5,507
Real estate owned and other asset sales .... 416 380
Purchases of:
Loans ......................................... (756) (2,870)
Securities available for sale ................. (10,042) (11,931)
Securities held to maturity ................... (5,633) --
Federal Home Loan Bank stock .................. (300) --
Increase in cash surrender value of life insurance (200) (176)
Acquisition of property and equipment, net ....... (682) (471)
-------- --------
Net cash used in investing activities ............ (47,114) (33,320)
-------- --------
CASH FLOWS FROM FINANCING ACTIVITIES:
Increase in deposits, net ........................ 25,600 10,147
Proceeds from borrowings ......................... 42,500 14,200
Repayment of borrowings .......................... (38,030) (13,475)
Net proceeds from (repayment of)
overnight borrowings .......................... (805) 669
Common stock options exercised ................... 659 58
Payment of dividends on common stock ............. (955) (721)
-------- --------
Net cash provided by financing activities ........ 28,969 10,878
-------- --------
NET DECREASE IN CASH AND CASH EQUIVALENTS ........ (7,965) (1,860)
Cash and cash equivalents, beginning of period ... 25,628 27,008
-------- --------
Cash and cash equivalents, end of period ......... $ 17,663 $ 25,148
======== ========
Supplemental information:
Cash paid for interest ........................... $ 21,141 $ 20,338
Cash paid for income taxes ....................... $ 2,613 $ 3,277
Assets acquired through foreclosure .............. $ 159 $ 133
See notes to consolidated financial statements
3
<PAGE>
Notes to Consolidated Financial Statements
1. Basis of Presentation
The consolidated financial statements include the accounts of Home Federal
Bancorp (the "Company") and its wholly-owned subsidiary, Home Federal Savings
Bank (the "Bank"). These consolidated interim financial statements at March 31,
1997, and for the three and nine month periods ended March 31, 1997, and 1996,
have not been examined by independent auditors, but reflect, in the opinion of
the Company's management, all adjustments (which include only normal recurring
adjustments) necessary to present fairly the financial position and results of
operations for such periods, including elimination of all significant
intercompany balances and transactions.
These statements should be read in conjunction with the consolidated financial
statements and related notes which are incorporated by reference in the
Company's Annual Report on Form 10-K for the year ended June 30, 1996.
2. Reclassifications
Some items in the financial statements of previous periods have been
reclassified to conform to the current period presentation.
3. Recent Accounting Pronouncements
The Company adopted Statement of Financial Accounting Standards 121 (SFAS 121),
"Accounting for the Impairment of Long-Lived Assets and for Long-Lived Assets to
be Disposed of, "effective July1, 1996. The adoption of SFAS 121 had no effect
on the financial position or results of operations of the Company.
The Company adopted Statement of Financial Accounting Standards 123 (SFAS
123),"Accounting for Stock Based Compensation," effective July1, 1996. The
Company has elected to continue to account for stock-based transactions under
Accounting Principles Board Opinion 25, "Accounting for Stock Issued to
Employees," but will disclose in the notes to the financial statements the pro
forma effects of the new method of accounting under SFAS 123.
In February 1997, the Financial Accounting Standards Board issued Statement of
Financial Accounting Standards 128, "Earnings per Share" (SFAS 128). SFAS 128
establishes new standards for computing and presenting earnings per share
("EPS"). Specifically, SFAS 128 replaces the presentation of primary EPS with a
presentation of basic EPS, 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., SFAS 128 is effective for financial statements issued for periods
ending after December 15, 1997; earlier application is not permitted. Management
has determined that the adoption of SFAS 128 will not have a material effect on
the accompanying consolidated financial statements.
4. Adoption of Statement of Financial Accounting Standards 122
Effective July 1, 1996, the Bank adopted Statement of Financial Accounting
Standard 122, (SFAS 122) "Accounting for Mortgage Servicing Rights - an
Amendment of FASB Statement 65." This statement requires the Company to
recognize the value of its mortgage servicing rights, however acquired, at the
time of acquisition.
The Company recorded a servicing asset of $340,906 for 684 loans sold during the
nine months ended March 31, 1997, totaling $46.7 million with a weighted average
servicing fee of .25%. The value of the servicing asset was derived with a
discount rate of 10.50%, an average cost to service of $55 and constant
prepayment rates ranging from 5.00% to 11.6%. For purposes of measuring
impairment of the capitalized mortgage serving rights, the loans were stratified
by term and note rate. As of March 31, 1997, there was no valuation allowance
related to the value of servicing.
4
<PAGE>
Part I, Item 2: Management's Discussion and Analysis of Financial Condition
and Results of Operations
Home Federal Bancorp (the "Company") is organized as a unitary savings and loan
holding company and owns all the outstanding capital stock of Home Federal
Savings Bank (the "Bank"). The business of the Bank and therefore, the Company,
is to provide consumer and business banking services to certain markets in the
south-central portions of the State of Indiana. The Bank does business through
15 full service banking branches and one loan production office.
RESULTS OF OPERATIONS:
Quarter Ended March 31, 1997 Compared to Quarter Ended March 31, 1996
General
The Company reported net income of $2,171,000 for the quarter ended March 31,
1997, compared to $1,880,000 for the quarter ended March 31, 1996, an increase
of $291,000. Earnings per share for the current quarter were $0.61 compared to
$0.55 for the quarter ended March 31, 1996, a 10.9% increase. The earnings per
share numbers have been adjusted for a 3 for 2 stock split in December 1996.
Net Interest Income
Net interest income before provision for loan losses increased by $736,000 for
the quarter ended March 31, 1997, compared to the quarter ended March 31, 1996.
The increase is due to the total interest sensitive assets growing faster than
interest bearing liabilities. Treasury rates were generally higher during the
three month period ended March 31, 1997, as compared to the same period ended
March 31, 1996. The return on interest bearing assets declined 13 basis points
for the three month period ended March 31, 1997, as compared to the three month
period ended March 31, 1996. The cost of interest bearing liabilities declined
16 basis points over the same period. Even though rates were increasing for this
period, over all portfolio yields and costs dropped because of tightening
spreads in the loan portfolio and higher costing deposits and borrowings rolling
into lower costing instruments. The increased use of special certificate of
deposit programs has also helped to reduce the cost of funds.
Net interest income after provision for loan losses increased by $511,000 for
the quarter ended March 31, 1997, compared to the quarter ended March 31, 1996.
The provision for loan losses increased $225,000 reflecting higher loans
outstanding and increased activity in non-mortgage loans. At March 31, 1997, the
loan loss allowance covered 115% of non-performing loans, real estate owned and
other repossessed assets. To the best of management's knowledge, and in its
opinion, classified assets do not represent material credits which would cause
management to have serious doubts as to the ability of such borrowers to comply
with their loan repayment terms. Based on management's analysis of classified
assets, loss histories and current future projections, the allowance balance
appears adequate at March 31, 1997.
(in thousands)
Quarter ending March 31: 1997 1996
------------------------ ------------------
Allowance beginning balance $ 3,251 $ 2,874
Provision for loan losses . 379 154
Charge-offs ............... (184) (115)
Recoveries ................ 12 13
------- -------
Loan Loss Allowance ....... $ 3,458 $ 2,926
======= =======
Allowance to Total Loans .60% .58%
Allowance to Nonperforming Assets 115% 103%
5
<PAGE>
Interest Income
Total interest income for the three-month period ended March 31, 1997, increased
$1,119,000, or 9.5%, over the same period of the prior year. The increase is due
primarily to increased loans outstanding.
Interest Expense
Total interest expense for the three-month period ended March 31, 1997 increased
$383,000, or 5.7%, as compared to the same period a year ago. The increase in
interest expense for the three month period ended March 31, 1997, compared to
the same period ended March 31, 1996, was due to increased deposit and borrowing
balances outstanding. The cost of these funds actually decreased from 1996 to
1997 for the reasons discussed above.
Other Income
Total other income for the three-month period ended March 31, 1997, decreased
$112,000 or 6.3% over the same period a year ago. Gain on sale of loans declined
$137,000 for the quarter ended March 31, 1997, as compared to the quarter ended
March 31, 1996. This decline reflected a reduction in the volume of loan sales
from $34.0 million to $21.1 million, in addition to tightening profit margins on
loan sales in the secondary market. Offsetting the decline in gain on sale of
loans was the recognition of $93,000 of originated mortgage servicing rights.
Excluding the impact of SFAS 122, gain on sale of loans would show a reduction
of $230,000 for the three month period ended March 31, 1997, compared to the
three month period ended March 31, 1996. Insurance, late charges and other fees
increased $108,000 reflecting increases in annuity commissions of $57,000,
insurance commission increases of $23,000 as well as an increase of $28,000 in
various miscellaneous fee accounts for the quarter ended March 31, 1997, versus
the quarter ended March 31, 1996.
Joint venture income declined $56,000 for the three month period ended March 31,
1997, as compared to the three month period ended March 31, 1996. Joint venture
income comes primarily from the sale of lots in several projects the Company is
involved in and is difficult to project for future periods.
Other Expenses
Total other expenses for the three-month period ended March 31, 1997, remained
relatively constant over the same period ended March 31, 1996, although there
were fluctuations within expense categories included in the total other
expenses. Compensation and employee benefits increased $185,000. Increases in
compensation were due to normal salary increases as well as an increase in
accrued vacation pay. Federal insurance premium expense decreased $250,000
reflecting lower assessment rates as well as a $62,000 credit received on
insurance premiums paid in the fourth quarter of 1996.
Nine-months Ended March 31, 1997 Compared to Nine-months Ended March 31, 1996:
General
The Company reported net income of $4,768,000, or $1.37 per share, for the
nine-months ended March 31, 1997, compared to $5,577,000, or $1.63 per share,
for the same period a year ago, a decrease of $809,000, or $0.26 per share. The
decrease in net income was primarily attributed to a legislated special pre-tax
assessment of $3,001,000 to help recapitalize the FDIC Savings Association
Insurance Fund (SAIF). Without the SAIF assessment, net income for the period
ended March 31, 1997, would have been $6,494,000, or $1.87 per share. Per share
comparisons have been adjusted to reflect a 3 for 2 stock split in December
1996.
Net Interest Income
Net interest income before provision for loan losses increased $2,222,000 for
the nine-month period ended March 31, 1997, compared to the same period ended
March 31, 1996. The reasons for this increase were primarily the same as for the
three-month period ended March 31, 1997.
Net interest income after provision for loan losses increased by $1,812,000 for
the nine-month period ended March 31, 1997. Again, the reasons for this increase
were primarily the same as for the three-month period ended March 31, 1997.
6
<PAGE>
The change to the loan loss allowance for the nine-month periods ended March 31,
are as follows:
(in thousands)
Nine months ending March 31: 1997 1996
---------------------------- --------------------------
Allowance beginning balance $3,061 $2,806
Provision for loan losses 813 403
Charge-offs (471) (347)
Recoveries 55 64
------ -------
Loan Loss Allowance $3,458 $2,926
====== =======
Interest Income
Total interest income for the nine-month period ended March 31, 1997, increased
$3,024,000, compared to the nine-month period ended March 31, 1996. The increase
was due primarily to the same reasons as discussed in the three-month period
ended March 31, 1997. These reasons include a changing mix of loan products and
an increase in loans outstanding.
Interest Expense
Total interest expense for the nine-months ended March 31, 1997, increased
$802,000, compared to the nine-month period ended March 31, 1996. The increase
was due primarily to the same reasons as discussed in the three-month period
ended March 31, 1997. These reasons include increased deposits and borrowings
outstanding offset by lower costs. Lower costs in the deposit portfolio are
partially due to a shift by consumers to shorter maturing instruments with lower
rates.
Other Income
Total other income for the nine-month period ended March 31, 1997, was basically
unchanged as compared to the same period one year ago. Gain on sale of loans for
the current period included $332,000 of OMSR as required under FAS 122. Loan
servicing income included the amortization and impairment expense required under
FAS 122.
Other Expenses
Total other expenses for the nine-month period ended March 31, 1997 increased
$3,190,000. The FDIC/SAIF assessment accounted for $3,001,000 of the $3,190,000
increase. Compensation expense accounted for most of the remainder of the
increase and was the result of the same factors discussed in the three month
period.
FINANCIAL CONDITION:
Total assets increased by $33,643,000 from June 30, 1996, to March 31, 1997. Net
loans receivable increased by $39,014,000 with loans held for sale decreasing
$222,000. Cash and cash equivalents decreased $7,965,000 and securities
available for sale and held to maturity (including mortgage-backed securities)
increased $1,429,000.
Total liabilities increased $29,081,000 from June 30, 1996, to March 31, 1997.
Deposits from customers increased $25,600,000 and advances from the Federal Home
Loan Bank and senior debt increased $4,470,000.
Shareholders' equity increased $4,562,000 during the same period. Retained
earnings increased $4,768,000 from net income and decreased $955,000 for
dividends paid. Common stock increased $664,000 for stock options exercised
during the period and decreased $5,000 for fractional shares redeemed resulting
from the 3 for 2 stock split. In accordance with Statement of Accounting
Standards 115, "Accounting for Certain Investments in Debt and Equity
Securities", the Company had unrealized losses in its available for sale
portfolio of $165,000, or a $90,000 increase in shareholders' equity from the
June 30, 1996 loss position of $255,000.
7
<PAGE>
At March 31, 1997, the Bank exceeded all current OTS regulatory capital
requirements as follows (in thousands):
Tangible capital $53,465 8.12% of tangible assets of $658,178
Required tangible capital 9,873 1.50% of tangible assets of $658,178
-------
Excess tangible capital $43,592
Core capital $53,465 8.12% of tangible assets of $658,178
Required core capital 19,745 3.00% of tangible assets of $658,178
-------
Excess core capital $33,720
Risk-based capital $56,590 12.11% of risk-weighted assets of $467,310
Required risk-based capital 37,385 8.00% of risk-weighted assets of $467,310
-------
Excess risk-based capital $19,205
Liquidity and Capital Resources
The standard measure of liquidity for the thrift industry is the ratio of cash
and eligible investments to a certain percentage of borrowings due within one
year and net withdrawable deposit accounts. The minimum required level is
currently set by OTS regulation at 5%. At March 31, 1997, the Bank's average
liquidity ratio was 10.46%. Historically, the Bank has maintained its liquid
assets which qualify for purposes of the OTS liquidity regulations above the
minimum requirements imposed by such regulations and at a level believed
adequate to meet requirements of normal daily activities, repayment of maturing
debt and potential deposit outflows. Cash flow projections are regularly
reviewed and updated to assure that adequate liquidity is maintained. Cash for
these purposes is generated through the sale or maturity of investment
securities and loan sales and repayments, and may be generated through increases
in deposits. Loan payments are a relatively stable source of funds, while
deposit flows are influenced significantly by the level of interest rates and
general money market conditions. Borrowings may be used to compensate for
reductions in other sources of funds such as deposits. As a member of the FHLB
system, the Bank may borrow from the FHLB of Indianapolis. At March 31, 1997,
the Bank had $76.1 million in such borrowings. As of that date, the Bank had
commitments to fund loan originations and purchases of approximately $17.2
million and commitments to sell loans of $11.1 million. In the opinion of
management, the Bank has sufficient cash flow and borrowing capacity to meet
current and anticipated funding commitments.
8
<PAGE>
Supplemental Data: Three Months Nine Months
Ended Ended
March 31 March 31
------------- -------------
1997 1996 1997 1996
----- ----- ----- -----
Weighted average interest rate earned
on total interest-earning assets ........... 8.40 8.53 8.46 8.50%
Weighted average cost of total
interest-bearing liabilities ............... 4.87 5.03 4.89 5.08%
Interest rate spread during period ............. 3.53 3.50 3.57 3.43%
Net yield on interest-earning assets
(net interest income divided by average
interest-earning assets on annualized basis) 3.79 3.68 3.75 3.56%
Total interest income divided by average
total assets (on annualized basis) ......... 7.90 7.93 7.93 7.91%
Total interest expense divided by
average total assets (on annualized basis) . 4.40 4.53 4.41 4.59%
Net interest income divided by average
total assets (on annualized basis) ......... 3.56 3.42 3.52 3.31%
Return on assets (net income divided by
average total assets on annualized basis) .. 1.33 1.26 0.99 1.25%
Return on equity (net income divided by
average total equity on annualized basis) .. 15.80 15.15 11.91 15.54%
At March 31
---------------
1997 1996
------ ------
Book value per share outstanding .............. $16.54 $15.06
Interest rate spread .......................... 3.59% 3.47%
Nonperforming Assets:
Loans: Non-accrual ....................... $2,824 $2,766
Past due 90 days or more .... 0 50
Restructured ................ 1 2
------ ------
Total nonperforming loans ................ 2,825 2,818
Real estate owned, net ................... 62 0
Other repossessed assets, net ............ 31 32
------ ------
Total Nonperforming Assets .............. $2,918 $2,850
====== ======
Nonperforming assets divided by total assets... 0.44% 0.47%
Nonperforming loans divided by total loans .... 0.50% 0.56%
Balance in Provision for Loan Losses .......... $3,458 $2,926
9
<PAGE>
PART II. OTHER INFORMATION
Item 4. Submission of Matters to a Vote of Security Holders.
N/A
Item 5. Other information
N/A
Item 6. Exhibits and Reports on Form 8-K
(a) N/A
(b) Reports on Form 8-K.
Registrant filed no reports on Form 8-K during the fiscal
quarter ended March 31, 1997.
10
<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 behalf of
the undersigned thereto duly authorized.
Home Federal Bancorp
DATE: May 9, 1997 /S/ Lawrence E. Welker
----------------------- ------------------------
Lawrence E. Welker, Executive Vice President,
Treasurer, and Chief Financial Officer
11
<TABLE> <S> <C>
<ARTICLE> 9
<LEGEND>
This schedule contains summary financial
information extracted from the registrant's
unaudited consolidated finanacial statements
for the nine months ended March 31, 1997
and is qualified in its entirety by reference
to such financial statements.
</LEGEND>
<CIK> 0000867493
<NAME> Home Federal
Bancorp
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> JUN-30-1997
<PERIOD-START> JUL-01-1996
<PERIOD-END> MAR-31-1997
<CASH> 16,570
<INT-BEARING-DEPOSITS> 1,093
<FED-FUNDS-SOLD> 0
<TRADING-ASSETS> 0
<INVESTMENTS-HELD-FOR-SALE> 40,670
<INVESTMENTS-CARRYING> 12,400
<INVESTMENTS-MARKET> 12,206
<LOANS> 559,111
<ALLOWANCE> 3,458
<TOTAL-ASSETS> 663,658
<DEPOSITS> 515,173
<SHORT-TERM> 79,677
<LIABILITIES-OTHER> 3,807
<LONG-TERM> 8,125
0
0
<COMMON> 7,478
<OTHER-SE> 48,601
<TOTAL-LIABILITIES-AND-EQUITY> 663,658
<INTEREST-LOAN> 35,542
<INTEREST-INVEST> 2,454
<INTEREST-OTHER> 247
<INTEREST-TOTAL> 38,243
<INTEREST-DEPOSIT> 17,313
<INTEREST-EXPENSE> 21,287
<INTEREST-INCOME-NET> 16,956
<LOAN-LOSSES> 813
<SECURITIES-GAINS> 20
<EXPENSE-OTHER> 1,825
<INCOME-PRETAX> 7,759
<INCOME-PRE-EXTRAORDINARY> 7,759
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 4,768
<EPS-PRIMARY> 1.37
<EPS-DILUTED> 0
<YIELD-ACTUAL> 8.46
<LOANS-NON> 2,284
<LOANS-PAST> 0
<LOANS-TROUBLED> 1
<LOANS-PROBLEM> 0
<ALLOWANCE-OPEN> 3,061
<CHARGE-OFFS> 471
<RECOVERIES> 55
<ALLOWANCE-CLOSE> 3,458
<ALLOWANCE-DOMESTIC> 0
<ALLOWANCE-FOREIGN> 0
<ALLOWANCE-UNALLOCATED> 0
</TABLE>
