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 December 31, 1996
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
Commission file number: 0-18847
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 February 12, 1997:
Common Stock, no par value -- 3,361,683 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)
<TABLE>
<CAPTION>
December 31, June 30,
1996 1996
--------- ---------
<S> <C> <C>
ASSETS:
Cash $ 18,628 $ 19,327
Interest-bearing deposits 2,194 6,301
--------- ---------
Total cash and cash equivalents 20,822 25,628
--------- ---------
Securities available for sale at fair value
(amortized cost $43,349
and $45,075 43,332 44,651
Securities held to maturity (fair value $10,382 and $6,753) 10,467 6,990
Loans held for sale (fair value $4,796 and $4,666) 4,732 4,623
Loans receivable, net of allowance for loan losses
of $3,251 and $3,061 543,094 520,097
Investments in joint ventures 3,098 2,855
Federal Home Loan Bank stock 4,098 3,798
Accrued interest receivable, net 3,982 3,893
Premises and equipment, net 7,863 8,090
Real estate owned 239 48
Prepaid expenses and other assets 1,465 2,440
Cash surrender value of life insurance 5,393 5,004
Goodwill 1,848 1,898
--------- ---------
TOTAL ASSETS $ 650,433 $ 630,015
========= =========
LIABILITIES AND SHAREHOLDERS' EQUITY:
Deposits $ 506,442 $ 489,573
Advances from Federal Home Loan Bank 76,700 70,700
Senior debt 8,450 9,100
Other borrowings 562 4,337
Advance payments by borrowers for taxes and insurance 387 621
Accrued expenses and other liabilities 3,966 4,167
--------- ---------
Total liabilities 596,507 578,498
--------- ---------
Shareholders' equity:
No par common stock; Authorized: 7,500,000 shares
Issued and outstanding: 7,002 6,819
3,351,683 shares at December 31, 1996
3,339,423 shares at June 30, 1996
Retained earnings, restricted 46,934 44,953
Unrealized gain (loss) on securities available
for sale, net of deferred taxes (10) (255)
--------- ---------
Total shareholders' equity 53,926 51,517
--------- ---------
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 650,433 $ 630,015
========= =========
</TABLE>
See notes to consolidated financial statements
<PAGE>
HOME FEDERAL BANCORP
CONSOLIDATED STATEMENTS OF INCOME
(in thousands except per share data)
(unaudited)
<TABLE>
<CAPTION>
Three Months Ended Six Months Ended
December 31, December 31,
--------------------------- ---------------------------
1996 1995 1996 1995
----------- ----------- ----------- -----------
<S> <C> <C> <C> <C>
Interest income:
Loans receivable $ 11,875 $ 10,788 $ 23,513 $ 21,338
Securities available for
sale and held to maturity 843 831 1,622 1,660
Other interest income 101 162 175 407
----------- ----------- ----------- -----------
Total interest income 12,819 11,781 25,310 23,405
----------- ----------- ----------- -----------
Interest expense:
Deposits 5,819 5,685 11,518 11,374
Advances and borrowings 1,339 1,192 2,668 2,393
----------- ----------- ----------- -----------
Total interest expense 7,158 6,877 14,186 13,767
----------- ----------- ----------- -----------
Net interest income 5,661 4,904 11,124 9,638
Provision for loan losses 267 182 434 249
----------- ----------- ----------- -----------
Net interest income after
provision for loan losses 5,394 4,722 10,690 9,389
----------- ----------- ----------- -----------
Other income:
Gain on sale of loans 351 345 738 767
Gain(loss) on sale of securities 0 1 201
Income from joint ventures 145 178 242 299
Insurance, late charges, other fees 300 328 663 703
Service fees on NOW accounts 426 425 831 832
Net gain (loss) on real estate owned
and repossessed assets (19) (34) (16) (40)
Loan servicing income 241 227 505 450
Miscellaneous 311 275 677 610
----------- ----------- ----------- -----------
Total other income 1,755 1,745 3,660 3,622
----------- ----------- ----------- -----------
Other expenses:
Compensation and employee benefits 1,906 1,715 3,700 3,530
Occupancy and equipment 500 470 988 946
Service bureau expense 189 189 379 374
Federal insurance premium 279 266 3,553 529
Marketing 104 74 233 266
Goodwill amortization 25 25 50 50
Miscellaneous 599 590 1,229 1,229
----------- ----------- ----------- -----------
Total other expenses 3,602 3,329 10,132 6,924
----------- ----------- ----------- -----------
Income before income taxes 3,547 3,138 4,218 6,087
Income tax provision 1,381 1,234 1,621 2,390
----------- ----------- ----------- -----------
Net Income $ 2,166 $ 1,904 $ 2,597 $ 3,697
=========== =========== =========== ===========
Net income per common and
common share equivalents $ 0.63 0.55 0.75 $ 1.08
=========== ==== ==== ===========
Equivalent number of shares 3,458,828 3,431,972 3,448,937 3,422,004
Dividends per share $ 0.125 $ 0.067 $ 0.183 $ 0.133
</TABLE>
See notes to consolidated financial statements
<PAGE>
HOME FEDERAL BANCORP
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
(unaudited)
<TABLE>
<CAPTION>
Six Months Ended
----------------------------
December 31, December 31,
1996 1995
------------ ------------
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $ 2,597 $ 3,697
Adjustments to reconcile net income to net cash
provided by (used in) operating activities:
Accretion of discounts, amortization
and depreciation 589 611
Provision for loan losses 434 249
Net gain from sale of loans (499) (767)
Net gain from sale of investment securities -- (1)
Net gain from joint ventures; real estate owned (205) (242)
Loan fees deferred (recognized), net (321 2
Proceeds from sale of loans held for sale 42,466 54,648
Origination of loans held for sale 42,076 54,586
Decrease in accrued interest and other assets 2,527 6,633
Increase in other liabilities (435) 422
-------- --------
Net cash provided by operating activities 5,077 10,666
-------- --------
CASH FLOWS FROM INVESTING ACTIVITIES:
Net principal disbursed on loans 25,031 17,244
Proceeds from:
Maturities/Repayments of:
Securities held to maturity 154 2,405
Securities available for sale 4,108 1,978
Sales of:
Securities available for sale 6,572 4,007
Real estate owned and other asset sales 128 175
Purchases of:
Loans (501) --
Securities available for sale 8,987 9,120
Securities held to maturity 3,633 --
Federal Home Loan Bank stock (300) --
Increase in cash surrender value of life insurance (134) (113)
Acquisition of property and equipment, net (270) (304
-------- --------
Net cash used in investing activities 27,894 18,216
-------- --------
CASH FLOWS FROM FINANCING ACTIVITIES:
Increase (decrease) in deposits, net 16,869 3,607
Proceeds from borrowings 28,500 9,600
Repayment of borrowings 23,150 11,150
Net repayment of overnight borrowings 3,775 544
Common stock options exercised 182 37
Payment of dividends on common stock (615) (444)
-------- --------
Net cash provided by (used in) financing activities 18,011 2,194
-------- --------
NET DECREASE IN CASH AND CASH EQUIVALENTS 4,806 5,356
Cash and cash equivalents, beginning of period 25,628 27,836
-------- --------
Cash and cash equivalents, end of period $ 20,822 $ 22,480
======== ========
Supplemental information:
Cash paid for interest $ 14,090 $ 13,672
Cash paid for income taxes $ 1,186 $ 2,122
Assets acquired through foreclosure $ 122 $ 21
</TABLE>
See notes to consolidated financial statements
<PAGE>
HOME FEDERAL BANCORP
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 December
31, 1996 and for the three and six month periods ended December 31, 1996, and
1995 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.
The results of operations for the three and six month periods ended December 31,
1996 are not necessarily indicative of the results to be expected for the year
ending June 30, 1997. 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 No. 121 (SFAS
121), "Accounting for the Impairment of Long-Lived Assets and for Long-Lived
Assets to be Disposed of," effective July 1, 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 No. 123 (SFAS
123), "Accounting for Stock Based Compensation," effective July 1, 1996. The
Company has elected to continue to account for stock-based transactions under
Accounting Principles Board Opinion No. 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.
4. Adoption of Statement of Financial Accounting Standards No. 122
Effective July 1, 1996, the Bank adopted Statement of Financial Accounting
Standards No. 122, (SFAS 122) "Accounting for Mortgage Servicing Rights - an
amendment of FASB Statement No. 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 $238,000 for 460 loans sold during the
six months ended December 31, 1996 totaling $31.7 million with a weighted
average interest rate of 8.43% and a weighted average servicing fee of .25%. The
value of the servicing asset was derived with a discount rate of 10.5%, an
average cost to service of $57 and constant prepayment rates ranging from 9.31%
to 20.65%. For purposes of measuring impairment of the capitalized mortgage
servicing rights, the loans were stratified by term and note rate. As of
December 31, 1996, the Company had recorded an impairment valuation allowance of
$13,000 related to the value of servicing.
5. Stock Split
On November 26, 1996, the Company declared a 3 for 2 stock split pursuant to
which every two shares of its common stock outstanding at the close of business
on December 6, 1996 were converted into three shares of common stock. The stock
split resulted in the issuance of 1,118,200 additional shares. Share data for
the quarter ended December 31, 1996 has been adjusted accordingly.
<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 December 31, 1996 Compared to Quarter Ended December 31, 1995:
General
The Company reported net income of $2,166,000 for the quarter ended December 31,
1996, compared to $1,904,000 for the quarter ended December 31, 1995, an
increase of $262,000. Earnings per share for the current quarter were $0.63
compared to $0.55 for the quarter ended December 31, 1995, a 14.5% increase. The
earnings per share comparisons have been adjusted for a 3 for 2 stock split in
December of 1996.
Net Interest Income
Net interest income before provision for loan losses increased by $757,000 for
the quarter ended December 31, 1996, compared to the quarter ended December 31,
1995. The increase is due to the total interest sensitive assets growing faster
than interest bearing liabilities. Treasury rates with terms of more than one
year were generally higher during the three month period ended December 31, 1996
as compared to the same period ended December 31, 1995. The one year Treasury
rate was basically unchanged during these periods. The return on interest
earning assets was basically unchanged from 1995 to 1996; however, the cost of
interest-bearing liabilities decreased by 19 basis points due to reduced
borrowing costs and shifts to shorter term deposits with correspondingly lower
rates. The increased use of special certificate of deposit programs also helped
to reduce the cost of funds.
Net interest income after provision for loan losses increased by $672,000 for
the quarter ended December 31, 1996, compared to the quarter ended December 31,
1995. The provision for loan losses increased $85,000 reflecting higher loans
outstanding and increased activity in non-mortgage loans. At December 31, 1996,
the loan loss allowance covered 93% 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 December 31, 1996.
(in thousands)
Quarter ending December 31: 1996 1995
--------------------------- ----------------------
Allowance beginning balance $ 3,122 $ 2,810
Provision for loan losses 267 182
Charge-offs (161) (133)
Recoveries 23 15
------- -------
Loan Loss Allowance $ 3,251 $ 2,874
======= =======
Allowance to Total Loans .60% .59%
Allowance to Nonperforming Assets 93% 92%
Interest Income
Total interest income for the three-month period ended December 31, 1996
increased $1,038,000, or 8.8%, 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 December 31, 1996
increased $281,000, or 4.1%, as compared
<PAGE>
to the same period a year ago. The increase in interest expense for the three
month period ended December 31, 1996, compared to the same period ended December
31, 1995, was due to increased deposit and borrowing balances outstanding. The
cost of these funds actually decreased from 1995 to 1996 for the reasons
discussed above.
The ability of the Company to continue to hold its cost of funds down will
depend heavily on the actions of the Federal Reserve Board and competitive
factors within the Company's market.
Other Income
Total other income for the three-month period ended December 31, 1996 was
basically unchanged over the same period a year ago. Gain on sale of loans
included the recognition of $113,000 of originated mortgage servicing rights
("OMSR") as required by Statement of Financial Accounting Standards No. 122
(SFAS 122), "Accounting for Mortgage Servicing Rights, an amendment of FASB
Statement No. 65". Insurance, late charges and other fees, which includes
mortgage servicing income, was reduced by $18,000 for the OMSR amortization and
impairment calculations required by SFAS 122. The income the Company will
realize over the life of a loan it has sold, but retained the servicing, will be
the same under the new standards as it would have been prior to the adoption of
these standards. The timing of the recognition of that income will occur earlier
in the life of the loan and will be subject to more volatility depending on
changes in interest rates which affect the value of the OMSR.
Excluding the impact of SFAS 122, gain on sale of loans would show a reduction
for the three month period ended December 31, 1996, compared to the three month
period ended December 31, 1995. The reduction is due primarily to reduced loan
volumes in the fixed rate categories, which are normally sold to the secondary
market. The reduced volumes are attributed to higher long term interest rates.
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 December 31, 1996
increased $273,000, or 8.2%, over the same period ended December 31, 1995.
Compensation and employee benefits contributed $191,000 to the total increase.
Increases in compensation were due to normal salary increases as well as
accruing for performance bonuses normally paid at the end of the fiscal year. In
prior periods, the Company began accruing for these bonuses in the third
quarter. In order to spread these costs more evenly during the entire year, the
current quarter includes $88,000 of such bonus accrual. If pre-determined
targets are not met, these bonuses would not be paid and the expense accrual
would be taken back to income. The Company currently anticipates paying bonuses
for the current fiscal year although it is too early to determine the actual
amount to be paid.
Six-months Ended December 31, 1996 Compared to Six-months Ended December 31,
1995:
General
The Company reported net income of $2,597,000, or $0.75 per share, for the
six-months ended December 31, 1996, compared to $3,697,000, or $1.08 per share,
for the same period a year ago, a decrease of $1,100,000, or $0.33 per share.
The decrease in net income was 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 December 31, 1996, would have been $4,323,000, or $1.25 per share. Per
share comparisons have been adjusted to reflect a 3 for 2 stock split in
December of 1996.
Net Interest Income
Net interest income before provision for loan losses increased $1,486,000 for
the six-month period ended December 31, 1996, compared to the same period ended
December 31, 1995. The reasons for this increase were primarily the same as for
the three-month period ended December 31, 1996.
Net interest income after provision for loan losses increased by $1,301,000 for
the six-month period ended December 31, 1996. Again, the reasons for this
increase were primarily the same as for the three-month period ended December
31, 1996.
<PAGE>
The change to the loan loss allowance for the six-month period ended December
31, 1996 is as follows:
(in thousands)
Six months ending December 31: 1996 1995
------- -------
Allowance beginning balance $ 3,061 $ 2,806
Provision for loan losses 434 249
Charge-offs (287) (232)
Recoveries 43 51
------- -------
Loan Loss Allowance $ 3,251 $ 2,874
======= =======
Interest Income
Total interest income for the six-month period ended December 31, 1996 increased
$1,905,000, compared to the
<PAGE>
six-month period ended December 31, 1995. The increase was due primarily to the
same reasons as discussed in the three-month period ended December 31, 1996.
These reasons include a changing mix of loan products and an increase in loans
outstanding.
Interest Expense
Total interest expense for the six-months ended December 31, 1996 increased
$419,000, compared to the six-month period ended December 31, 1995. The increase
was due primarily to the same reasons as discussed in the three-month period
ended December 31, 1996. These reasons include increased deposits and borrowings
outstanding offset by lower costs.
Other Income
Total other income for the six-month period ended December 31, 1996 was
basically unchanged as compared to the same period one year ago. Gain on sale of
loans for the current period included $239,000 of OMSR as required under SFAS
122. Insurance, late charges and other fees included the amortization and
impairment expense required under SFAS 122. These expenses were the same for the
current six month period as the three month period because December was the
first quarter that the amortization and impairment were calculated.
Other Expenses
Total other expenses for the six-month period ended December 31, 1996 increased
$3,208,000. The FDIC/SAIF assessment accounted for $3,001,000 of the $3,208,000
increase. Compensation expense accounted for most of the remainder of the
increase and the increased compensation expense was the result of the same
factors discussed in the three month period.
FINANCIAL CONDITION:
Total assets increased by $20,418,000 from June 30, 1996 to December 31, 1996.
Net loans receivable increased by $22,997,000 with loans held for sale
increasing $109,000. Cash and cash equivalents decreased $4,806,000 and
securities available for sale and held to maturity (including mortgage-backed
securities) increased $2,158,000.
Total liabilities increased $18,009,000 from June 30, 1996 to December 31, 1996.
Deposits from customers increased $16,869,000 and advances from the Federal Home
Loan Bank and senior debt increased $5,350,000.
Shareholders' equity increased $2,409,000 during the same period. Retained
earnings increased $2,597,000 from net income and decreased $615,000 for
dividends paid. Common stock increased $187,000 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 Financial
Accounting Standards No. 115, "Accounting for Certain Investments in Debt and
Equity Securities", the Company had unrealized losses in its available for sale
portfolio of $10,000, or a $245,000 increase in shareholders' equity from the
June 30, 1996 loss position of $255,000.
At December 31, 1996, the Bank exceeded all current OTS regulatory capital
requirements as follows (in thousands):
<TABLE>
<CAPTION>
<S> <C> <C>
Tangible capital $52,133 8.08% of tangible assets of $645,044
Required tangible capital 9,676 1.50% of tangible assets of $645,044
---------
Excess tangible capital $42,457
Core capital $52,133 8.08% of tangible assets of $645,044
Required core capital 19,351 3.00% of tangible assets of $645,044
--------
Excess core capital $32,782
Risk-based capital $55,055 12.05% of risk-weighted assets of $456,878
Required risk-based capital 36,550 8.00% of risk-weighted assets of $456,878
--------
Excess risk-based capital $18,505
</TABLE>
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 December 31, 1996, the Bank's average
liquidity ratio was 11.1%. 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 December 31, 1996,
the Bank had $76.7 million in such borrowings. As of that date, the Bank had
commitments to fund loan originations and purchases of approximately $25.53
million and commitments to sell loans of $10.99 million. In the opinion of
management, the Bank has sufficient cash flow and borrowing capacity to meet
current and anticipated funding commitments.
<PAGE>
<TABLE>
<CAPTION>
Supplemental Data:
Three Months Ended Six Months Ended
December 31, December 31,
----------------- -----------------
1996 1995 1996 1995
------- ------ ------ ------
<S> <C> <C> <C> <C>
Weighted average interest rate earned
on total interest-earning assets 8.47% 8.54% 8.49% 8.49%
Weighted average cost of total
interest-bearing liabilities 4.91% 5.10% 4.92% 5.10%
---- ---- ---- ----
Interest rate spread during the period 3.56% 3.44% 3.57% 3.39%
Net yield on interest-earning assets
(net interest income divided by average
interest-earning assets on annualized basis) 3.74% 3.55%
3.73% 3.50%
Total interest income divided by average
total assets (on annualized basis) 7.99% 7.97%
7.95% 7.91%
Total interest expense divided by
average total assets (on annualized basis) 4.44% 4.63%
4.43% 4.63%
Net interest income divided by average
total assets (on annualized basis) 3.53% 3.32% 3.49% 3.26%
Return on average assets 1.35% 1.29% .82% 1.25%
Return on stockholders' equity 16.41% 15.93% 9.89% 15.75%
Average stockholders' equity to average assets 8.22% 8.08% 8.25% 7.93%
</TABLE>
At December 31,
----------------------
1996 1995
------ ------
Book value per share outstanding $16.09 $14.63
Interest rate spread 3.62% 3.43%
Nonperforming Assets: (in thousands)
Loans: Non-accrual $3,260 $2,881
Past due 90 days or more 1 158
Restructured 1 2
------ ------
Total nonperforming loans 3,262 3,041
Real estate owned, net 122 --
Other repossessed assets, net 116 72
------ ------
Total nonperforming assets $3,500 $3,113
====== ======
Nonperforming assets divided by total assets .54% .52%
Nonperforming loans divided by total loans .59% .63%
Balance in allowance for loan losses $3,251 $2,874
<PAGE>
PART II. OTHER INFORMATION
Item 4. Submission of Matters to a Vote of Security Holders.
On October 22, 1996, the Annual Meeting of Shareholders was held, the results of
which were as follows:
<TABLE>
<CAPTION>
Against or Broker
For Withheld Non-votes Abstentions
<S> <C> <C> <C> <C>
Election of John K. Keach, Jr. as
Director for term expiring in 1999 1,796,412 11,883 - 0 - - 0 -
Election of David W. Laitinen, MD as
Director for term expiring in 1999 1,775,002 33,293 - 0 - - 0 -
</TABLE>
Item 5. Other information
Effective January 2, 1997, LaSalle National Trust, N.A. merged into LaSalle
National Bank. Their new address is:
LaSalle National Bank
135 South LaSalle Street, Room 1811
Chicago, Illinois 60603
(312) 904-2450 or (800) 246-5761
LaSalle National Bank is the Company's transfer agent.
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 December 31, 1996.
<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: February 12, 1997 /s/Lawrence E. Welker
--------------------------------
Lawrence E. Welker,
Executive Vice President,
Treasurer, and Chief Financial Officer
<TABLE> <S> <C>
<ARTICLE> 9
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
REGISTRANT'S AUDITED CONSOLIDATED FINANCIAL STATEMENTS FOR THE THREE MONTHS
ENDED DECEMBER 31, 1996 AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH
FINANCIAL STATEMENTS.
</LEGEND>
<CIK> 0000867493
<NAME> Home Federal Bancorp
<MULTIPLIER> 1,000
<CURRENCY> U.S. Dollars
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> JUN-30-1997
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0
0
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