SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20594
FORM 10-Q
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (D)
OF THE SECURITIES EXCHANGE ACT OF 1934
For Quarter Ended June 30, 1996 Commission File No. 0-22376
HOME BANCORP
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(exact name of registrant as specified in its charter)
Indiana 35-1906765
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(State or other Jurisdiction of (I.R.S. Employer
Incorporation or Organization) Identification No.)
132 East Berry Street, P.O. Box 989, Fort Wayne, Indiana 46801-0989
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(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code 219-422-3502
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Former name, former address and former fiscal year,
if changed since last report.
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 [ ]
<PAGE>
HOME BANCORP
Fort Wayne, Indiana
FORM 10-Q
INDEX
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements of Home Bancorp
Consolidated Balance Sheets as of June 30,
1996 and September 30, 1995
Consolidated Statements of Income for the
three months and nine months ended June 30,
1996 and 1995
Consolidated Statements of Cash Flows for the
nine months ended June 30, 1996 and 1995
Notes to Consolidated Financial Statements
Item 2. Management's Discussion and Analysis of
Financial Condition and Results of Operations
PART II. OTHER INFORMATION
SIGNATURES
<PAGE>
HOME BANCORP
And wholly owned subsidiary
HOME LOAN BANK fsb
Fort Wayne, Indiana
CONSOLIDATED BALANCE SHEETS
AS OF JUNE 30, 1996 and SEPTEMBER 30, 1995
(unaudited)
<TABLE>
<CAPTION>
ASSETS June 30, 1996 September 30, 1995
------------- ------------------
<S> <C> <C>
Cash on hand and in banks ...................................................... $ 1,219,255 $ 1,029,598
Interest earning deposits in other banks ....................................... 3,676,587 3,360,129
Federal funds sold ............................................................. 7,100,000 17,000,000
------------- -------------
Cash and cash equivalents ...................................................... 11,995,842 21,389,727
Investment securities available-for-sale ....................................... 5,993,125 --
Investment securities held-to-maturity
(Market value $51,305,938; $70,621,563) ................................... 50,840,956 69,949,107
Loans receivable, net
(Allowance for loan losses $1,384,989; $1,372,357) ........................ 239,809,560 214,404,753
Federal Home Loan Bank stock ................................................... 2,054,200 1,967,500
Accrued interest receivable .................................................... 2,572,721 2,681,613
Bank premises & equipment ...................................................... 2,394,780 2,331,986
Intangible assets .............................................................. -- --
Foreclosed real estate, net .................................................... -- --
Deferred & current income taxes ................................................ (33,188) 211,562
Other assets ................................................................... 272,761 248,635
------------- -------------
TOTAL ASSETS ................................................................... $ 315,900,757 $ 313,184,883
============= =============
LIABILITIES
Deposits ....................................................................... $ 264,331,628 $ 256,108,055
Borrowings ..................................................................... -- --
Advances from borrowers for taxes and insurance ................................ 1,297,046 1,798,345
Accrued interest payable ....................................................... 896,517 927,482
Other liabilities .............................................................. 401,420 290,549
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TOTAL LIABILITIES .............................................................. 266,926,611 259,124,431
------------- -------------
STOCKHOLDERS' EQUITY
Preferred stock, no par value, 5,000,000 shares authorized,
none issued ............................................................... -- --
Common stock, no par value, 10,000,000 shares authorized,
shares issued 3,381,505; 3,303,178 ........................................ 33,724,439 32,445,205
Retained earnings .............................................................. 25,685,034 23,831,000
Unearned ESOP compensation ..................................................... (2,071,248) (2,215,753)
Unearned RRP compensation ...................................................... (1,015,313) --
Treasury stock, 1996 - 494,690 shares, at cost ................................. (7,349,206) --
Net unrealized gain on securities available-for-sale ........................... 440 --
------------- -------------
TOTAL STOCKHOLDERS' EQUITY ..................................................... 48,974,146 54,060,452
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TOTAL LIABILITIES & STOCKHOLDERS' EQUITY ....................................... $ 315,900,757 $ 313,184,883
============= =============
</TABLE>
<PAGE>
HOME BANCORP
And wholly owned subsidiary
HOME LOAN BANK fsb
Fort Wayne, Indiana
CONSOLIDATED STATEMENTS OF INCOME
THREE MONTHS AND NINE MONTHS ENDED JUNE 30, 1996 AND JUNE 30, 1995
(unaudited)
<TABLE>
<CAPTION>
3 Months Ended; June 30, 9 Months Ended: June 30,
1996 1995 1996 1995
----------- ----------- ----------- -----------
<S> <C> <C> <C> <C>
INTEREST INCOME
Loans receivable ....................................... $ 4,599,424 $ 4,046,178 $13,338,504 $11,979,167
Investment securities .................................. 1,109,164 1,439,498 3,739,989 3,511,410
----------- ----------- ----------- -----------
Total interest income .................................. 5,708,588 5,485,676 17,078,493 15,490,577
INTEREST EXPENSE
Deposits ............................................... 3,373,381 3,240,810 10,280,685 9,264,306
Borrowings ............................................. -- -- -- --
----------- ----------- ----------- -----------
Total interest expense ................................. 3,373,381 3,240,810 10,280,685 9,264,306
Net interest income .................................... 2,335,207 2,244,866 6,797,808 6,226,271
Provision for loan losses .............................. 600 21,750 12,600 65,500
----------- ----------- ----------- -----------
Net interest income after provision .................... 2,334,607 2,223,116 6,785,208 6,160,771
NON-INTEREST INCOME
Net gain-sale of interest earning assets ............... -- -- 2,112 857
Net gain-sale of real estate ........................... -- -- -- --
Fees and service charges ............................... 60,142 53,811 177,727 160,318
----------- ----------- ----------- -----------
Total non-interest income .............................. 60,142 53,811 179,839 161,175
NON-INTEREST EXPENSE
Compensation & employee benefits ....................... 624,120 542,448 1,856,015 1,540,296
Net occupancy & equipment .............................. 130,804 126,325 393,541 439,237
FDIC insurance premiums ................................ 147,692 145,530 438,879 437,905
Other general & administrative expenses ................ 298,668 282,596 875,089 944,824
----------- ----------- ----------- -----------
Total non-interest expense ............................. 1,201,284 1,096,899 3,563,524 3,362,262
Earnings before income tax ............................. 1,193,465 1,180,028 3,401,523 2,959,684
Income tax expense ..................................... 486,465 453,028 1,400,523 1,135,684
----------- ----------- ----------- -----------
NET INCOME ............................................. $ 707,000 $ 727,000 $ 2,001,000 $ 1,824,000
=========== =========== =========== ===========
Earnings per share ..................................... $ 0.26 $ 0.24 $ 0.68 $ 0.59
</TABLE>
<PAGE>
HOME BANCORP
Fort Wayne, Indiana
STATEMENTS OF CASH FLOWS
NINE MONTHS ENDED JUNE 30, 1996 AND 1995
(UNAUDITED)
<TABLE>
<CAPTION>
1996 1995
------------ ------------
<S> <C> <C>
OPERATING ACTIVITIES
Net Income ................................................................................ $ 2,001,000 $ 1,824,000
Adjustments to reconcile net income to net cash provided by
operating activities:
Depreciation .......................................................................... 132,061 177,884
Provision for loan losses ............................................................. 12,632 65,500
Gain on sale of loans ................................................................. (2,112) (857)
Loans made to customers held for sale ................................................. (121,388) (55,000)
Proceeds from loans held for sale ..................................................... 123,500 55,857
Amortization of premiums/discounts .................................................... (145,192) (238,065)
Net gain on sales of real estate owned ................................................ -- --
Change in other assets ................................................................ 220,624 (1,250)
Change in other liabilities ........................................................... (41,671) 310,307
Change in interest receivable ......................................................... 108,892 (377,836)
Reduction of obligation under ESOP .................................................... 259,117 48,168
Reduction of obligation under RRP ..................................................... 179,173 --
------------ ------------
NET CASH PROVIDED BY OPERATING ACTIVITIES ........................................ 2,726,636 1,808,708
INVESTING ACTIVITIES
Proceeds from maturities of investment securities ..................................... 19,000,000 14,000,000
Purchases of investment securities .................................................... (5,992,813) (40,674,531)
Net increase in loans ................................................................. (25,417,439) (6,519,388)
Purchases of office properties and equipment .......................................... (83,337) (106,442)
------------ ------------
NET CASH USED BY INVESTING ACTIVITIES ............................................ (12,493,589) (33,300,361)
FINANCING ACTIVITIES
Net increase in deposit accounts ...................................................... 8,223,573 515,258
Net decrease in advance payments by borrowers for taxes
and insurance ....................................................................... (501,299) (569,647)
Proceeds from stock issue, net of conversion costs and stock acquired by ESOP .......... -- 30,087,910
Purchases of treasury stock ............................................................ (7,349,206) --
------------ ------------
NET CASH PROVIDED BY FINANCING ACTIVITIES ........................................ 373,068 30,033,521
CHANGE IN CASH AND CASH EQUIVALENTS ........................................................ (9,393,885) (1,458,132)
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD ............................................. 21,389,727 19,695,343
------------ ------------
CASH AND CASH EQUIVALENTS, END OF PERIOD ................................................... $ 11,995,842 $ 18,237,211
============ ============
Supplemental disclosures of cash flow information
Cash paid for
Interest on deposits .................................................................. $ 10,306,049 $ 9,365,402
Income taxes .......................................................................... $ 1,156,000 $ 965,000
</TABLE>
<PAGE>
Home Bancorp
Fort Wayne, IN
Notes to Consolidated Financial Statements
(Unaudited)
Item 1
Summary of Significant Accounting Policies
A. Basis of Presentation
The interim financial statements for Home Bancorp (the "Company") and
its wholly-owned subsidiary, Home Loan Bank fsb (the "Bank") have been
prepared in accordance with the instructions to Form 10-Q; and,
therefore, do not include all information and footnotes normally shown
for full annual financial statements.
The interim financial statements at June 30, 1996 and for the interim
periods ended June 30, 1996 and 1995 are unaudited, but reflect all
adjustments (consisting of only normal recurring adjustments) which
are, in the opinion of management, necessary to present fairly the
financial position, results of operations and cash flows for such
periods.
These interim financial statements should be read in conjunction with
the Company's most recent annual financial statements and footnotes.
The results of the periods presented are not necessarily representative
of the results of operations and cash flows which may be expected for
the entire year.
B. Conversion
The Bank completed a conversion from a mutual to a stock savings bank
on March 29, 1995 through a holding company structure incorporated in
the State of Indiana. The initial issuance of shares of common stock in
Home Bancorp on March 29, 1995 was 3,303,178 shares at $10 per share,
resulting in net proceeds of $32,400,000. Costs associated with the
conversion and stock offering amounted to $631,780, and were accounted
for as a reduction of the proceeds from the issuance of common stock of
the Holding Company. Upon closing of the stock offering, Home Bancorp
purchased all common shares issued by the Bank. This transaction was
accounted for at historical cost in a manner similar to the pooling of
interests method.
Federal regulations require that, upon conversion from a mutual to
stock form of ownership, a "liquidation account" be established by
restricting a portion of net worth for the benefit of eligible and
supplemental eligible account holders who maintain their savings
accounts with the Bank after conversion. In the event of a complete
liquidation (and only in such event), each such savings account holder
who continues to maintain his savings account shall be entitled to
receive a distribution from the liquidation account after payment to
all creditors, but before any liquidation distribution with respect to
capital stock. This account will be proportionately reduced for any
subsequent reduction in the eligible and supplemental eligible account
holder's savings accounts.
<PAGE>
Home Bancorp
Fort Wayne, IN
Notes to Consolidated Financial Statements
(Unaudited)
Item 1 Continued
Federal regulations impose limitations on the payment of dividends and
other capital distributions, including, among others, that the Company
may not declare or pay a cash dividend on any of its stock if the
effect thereof would cause the Bank's capital to be reduced below the
minimum amount required for the liquidation account or capital
requirements imposed by the Financial Institutions Reform Recovery and
Enforcement Act (FIRREA) and the Office of Thrift Supervision (the
"OTS").
C. Employee Stock Ownership Plan (ESOP)
The ESOP, a tax qualified employee benefit plan for officers and
employees of the Company and the Bank, purchased 231,209 shares of
common stock offered in the conversion. The ESOP purchased the shares
with funds borrowed for such purpose from the Company. The ESOP will
repay the loan through periodic tax-deductible contributions from the
Bank over a 12-year period with interest at the applicable Federal Rate
as set forth under the Internal Revenue Code of 1986, as amended.
D. Stock Option and Incentive Plan (SOP) and Recognition and Retention
Plan (RRP)
On October 10, 1995 at a special meeting of the shareholders, a stock
option and incentive plan (SOP) and recognition and retention plan
(RRP) were approved. Both benefit plans are administered by the
compensation committee of the Company. This committee selects
recipients and terms of awards pursuant to the plan. The maximum total
shares intended to be made available under the SOP and RRP plans are
330,317 and 115,611, respectively. Of the shares available under the
SOP, 227,704 shares have been awarded to directors, and officers
subject to certain vesting requirements over a 5 year period, and
exercisable over a term not to exceed ten years from the date of the
grant, October 10, 1995. A total of 78,327 shares under the RRP have
been awarded to directors, officers, and employees of the Company
subject to certain vesting and employment requirements over a five
year period commencing one year from the date of the grant on October
10, 1995. All options and grants will be priced at $15.25, equal to the
fair market value of the shares on the date of the grants.
E. Earnings Per Share
Earnings per common share are calculated by dividing net earnings by
the average number of common shares outstanding (total shares issued
less unallocated shares in the Employee Stock Ownership Plan and less
treasury shares).
<PAGE>
Management's Discussion and Analysis of
Financial Condition and Results of Operation
Item 2
General
Home Bancorp (the "Company") was formed as an Indiana corporation on
December 14, 1993 for the purpose of issuing Common Stock and owning
all of the outstanding common stock of Home Loan Bank (the "Bank") as a
unitary holding company. On March 29, 1995, Home Bancorp acquired all
the capital stock of the Bank upon its Conversion from a mutual to
stock institution. Prior to the conversion, the Company had no
operating history.
The principal business of savings banks, including Home Loan, has
historically consisted of attracting deposits from the general public
and making loans secured by residential real estate. The Company's
earnings are primarily dependent on net interest income, the difference
between interest income and interest expense. This is a function of the
yield on interest-earning assets less the cost of interest-bearing
liabilities. Earnings are also affected by provisions for loan losses,
service charges and fee income, operating expenses and income taxes.
The most significant outside factors influencing the operations of the
Bank and other savings institutions include general economic
conditions, competition in the local market place and the related
monetary and fiscal policies of agencies that regulate financial
institutions. More specifically, the cost of funds (deposits) is
influenced by interest rates on competing investments and general
market rates of interest, while lending activities are influenced by
the demand for real estate financing, which in turn is affected by the
interest rates at which such loans may be offered and other factors
affecting loan demand and funds availability.
Financial Condition
The Company's total assets were $315.9 million as of June 30, 1996
compared to $313.2 million as of September 30, 1995, an increase of
$2.7 million. For the same period, equity decreased from $54.1 million
as of September 30, 1995 to $49.0 million as of June 30, 1996. The
modest growth in total assets and the decrease in equity for the period
ended June 30, 1996, was the result of the repurchase of 494,690 shares
of the Company's common stock held as treasury stock. The treasury
stock purchases represented $7.3 million.
Deposits increased $8.2 million for the nine months ended June 30, 1996
from $256.1 million as of September 30, 1995 to $264.3 million as of
June 30, 1996.
<PAGE>
Home Bancorp
Fort Wayne, IN
Management's Discussion and Analysis of
Financial Condition and Results of Operation
Item 2 Continued
Cash and cash equivalents decreased from $21.4 million as of September
30, 1995 to $12.0 million as of June 30, 1996, a decrease of $9.4
million. Investment securities held to maturity decreased $19.1
million, from $69.9 million as of September 30, 1995 to $50.8 million
as of June 30, 1996. As of June 30, 1996 the company had $6.0 million
in securities held as available for sale, and none as of September 30,
1995. The decrease in investment securities, and cash and cash
equivalents, was the result of investment maturities during the period
and the use of available balances to fund the stock repurchase program,
and growth in the loan portfolio.
Loans receivable increased $25.4 million, primarily from 1-4 family
residential originations, from $214.4 million at September 30, 1995 to
$239.8 million at June 30, 1996. Accrued interest receivable decreased
from $2.7 million to $2.6 million as of June 30, 1996, as a decrease
from timing of accrued balances on investment securities offset
increases from loan receivables during the period. Income taxes,
current and deferred as of June 30, 1996, reflect a decrease of $0.2
million during the period associated with the payment of current and
deferred tax liabilities.
Advances from borrowers for taxes and insurance decreased from $1.8
million as of September 30, 1995 to $1.3 million as of June 30, 1996
due to the timing of semi-annual payments of real estate taxes and
annual insurance premiums on behalf of loan customers.
Results of Operation
General. Net income for the three months ended June 30, 1996 decreased
by $20,000, or 2.8%, to $707,000 from $727,000 for the same period in
1995. For the nine months ended June 30, 1996 net income was
$2,001,000, an increase of $177,000, or 9.7%, over net income of
$1,824,000 for the comparable prior year period. The three month
decrease in net income from the prior year reflects the decrease in
earning assets used for the treasury stock repurchase. The nine month
increase in net income for 1996 compared to 1995 is primarily
attributable to the Company's stock conversion in March 1995 which
reflects only a partial year's increased interest-earning assets due
from those proceeds.
Net Interest Income. The Company's net income is primarily dependent
upon net interest income. The $90,341 and the $571,537 increases in net
interest income for the three month and nine month periods ended June
30, 1996 compared to the same periods in 1995, was primarily the result
of increased balances of the Company's interest-earning assets and
improving interest yields on those assets. The Company's ratio of
interest-earning assets to interest-bearing liabilities for the three
month and nine month periods ended June 30, 1996 were 119.11% and
119.80%, respectively, compared to 120.04% and 112.77% for the same
<PAGE>
Home Bancorp
Fort Wayne, IN
Management's Discussion and Analysis
Financial Condition and Results of Operation
Item 2 Continued
periods in the preceding year. In addition, the yield on
interest-earning assets increased in the three and nine month periods
ended June 30, 1996 to 7.32% and 7.30% respectively, compared to 7.26%,
and 7.16% for the same periods in 1995 due to higher market interest
rates and increases in outstanding loan balances. For the nine month
like periods these increases were more than offset by increased rates
paid on deposits. For the three and nine months ended June 30, 1996,
cost of interest-bearing liabilities were 5.24% and 5.33%,
respectively, compared to 5.27% and 4.97%, for like periods in 1995.
These fluctuations in costs were the result of general changes in
market rates on deposits.
While the interest rate environment of recent years has proven
beneficial to most financial institutions, including the Company,
increases in market rates of interest generally adversely affect the
net income of most financial institutions. Because the Company's
liabilities generally reprice more quickly than assets, interest
margins would likely decrease if interest rates were to rise, or the
yield on repricing assets was not enhanced.
Provision for Loan Losses. The provision for loan losses is a result of
management's periodic analysis of the adequacy for loan losses. The
provision for loan losses decreased by $52,900 for the nine months
ended June 30, 1996 and $21,150 for the three months ended on that date
compared to the corresponding periods in 1995. This change is
attributable to management's analysis of the adequacy of the allowance
for loan losses to both recognizable and unforeseen losses. At June 30,
1996, the Company's allowance for loan losses totaled $1.4 million or
.58% of net loans receivable and 1,146.64% of total nonperforming
loans.
The Company establishes an allowance for loan losses based on an
analysis of risk factors in the loan portfolio. This analysis includes,
among other factors, the level of the Company's classified and
nonperforming assets and their estimated value, the national economic
outlook which may tend to inhibit economic activity and depress real
estate and other values in the Company's primary market area,
regulatory issues, and the levels of the allowance for loan losses
established by the Company's peers in assessing the adequacy of the
loan loss allowance. Accordingly, the calculation of the adequacy of
the allowance for loan losses is not based directly on the level of
nonperforming loans.
The Company will continue to monitor its allowance for loan losses and
make future additions to the allowance through the provision for loan
losses as economic conditions dictate. Although the Company maintains
its allowance for loan losses at a current level which it considers to
be adequate to provide for losses, there can be no assurance that
future losses will not exceed estimated amounts or that additional
provisions for loan losses will not be required in future periods. In
addition, the Company's determination as to the amount of the allowance
<PAGE>
Home Bancorp
Fort Wayne, IN
Management's Discussion and Analysis of
Financial Condition and Results of Operation
Item 2 Continued
for loan losses is subject to review by the OTS, as part of their
examination process, which may result in the establishment of an
additional allowance based upon their judgement of the information
available to them at the time of their examination.
Non-Interest Income. Non-interest income consists primarily of service
fees on deposit accounts and loan servicing fees. Non-interest income
increased $6,331, and $18,664, respectively for the three and nine
month periods ended June 30, 1996 in comparison to like periods in
1995. These increases were the result of service fees on deposit
accounts and a modest increase in gains on sale of mortgage loans which
offset decreases in loan prepayments and late charges for the periods
ended June 30, 1996 compared to corresponding periods in 1995.
Non-Interest Expense. Non-interest expenses were $1,201,284 and
$3,563,524 for the three and nine month periods ended June 30, 1996
compared $1,096,899 and $3,362,262 reported for the same prior year
periods. For the periods ended June 30, 1996, compensation and employee
benefits increased $81,672 and $315,719 for the respective three and
nine month periods compared to 1995 results, primarily from the
inclusion of expenses associated with the Employee Stock Ownership Plan
(ESOP) and the Recognition and Retention Plan (RRP), normal
inflationary increases on salaries, less decreases in expenditures for
other defined retirement plans, including a 401k program. Expenditures
for the ESOP and RRP plans for the nine month period ended June 30,
1996 were $259,117 and $179,173, respectively. Net occupancy and
equipment expenses for the periods ended June 30, 1996, compared to
like periods in 1995, reflect decreases in depreciation costs and
non-recurring charges and equipment upgrades in 1995. Other general and
administrative expenses have decreased in the nine month period
primarily as a result of cost containments, and as a result of
increases in loan origination credits charged against expenses.
<PAGE>
Home Bancorp
Fort Wayne, IN
Management's Discussion and Analysis of
Financial Condition and Results of Operation
Item 2 Continued
The following table provides key ratios and balances for the periods
indicated (For calculation purposes, month-end averages, which do not
differ materially from daily averages, have been used.)
<TABLE>
<CAPTION>
At and For the At and For the
Three Months Ended Nine Months Ended
June 30, June 30,
FINANCIAL HIGHLIGHTS (Averages) 1996 1995 1996 1995
- ------------------------------- ---------------------------------------------------------------
<S> <C> <C> <C> <C>
Return on assets ............................................... 0.90% 0.94% 0.85% 0.84%
Return on equity ............................................... 5.65% 5.48% 5.12% 6.81%
Yield on interest-earning assets ............................... 7.32% 7.26% 7.30% 7.16%
Cost of interest-bearing liabilities ........................... 5.24% 5.27% 5.33% 4.97%
Net interest spread ............................................ 2.08% 1.99% 1.97% 2.19%
Net interest rate margin ....................................... 2.98% 2.93% 2.89% 2.86%
Net interest income to operating (G&A) expenses ................ 194.39% 204.66% 190.76% 185.18%
Operating (G&A) expenses to assets ............................. 1.53% 1.43% 1.52% 1.54%
Non-interest income to assets .................................. 0.08% 0.07% 0.08% 0.07%
Interest-earning assets to interest-bearing liabilities ........ 119.11% 120.04% 119.80% 112.77%
Efficiency ratio ............................................... 51.44% 47.72% 51.07% 52.64%
Equity to assets ............................................... 15.98% 17.32% 16.64% 12.26%
Tangible equity to assets ...................................... 15.98% 17.32% 16.64% 12.26%
Average assets (dollars in thousands) .......................... $ 313,342 $ 306,324 $ 313,111 $ 290,589
ASSET QUALITY RATIOS
Non-performing assets to total assets .......................... 0.04% 0.08%
Non-performing loans to net loans .............................. 0.05% 0.12%
Allowance for loan losses to net loans ......................... 0.58% 0.65%
Allowance for loan losses to non-performing loans .............. 1,146.64% 546.91%
Net charge offs to loans ....................................... -- --
Loans to deposits .............................................. 90.72% 82.26%
Loans to assets ................................................ 75.91% 67.38%
PER COMMON SHARE
Net income ..................................................... $ 0.26 $ 0.24 $ 0.68 $ 0.59
Book value ..................................................... $ 16.96 $ 16.15
Tangible book value ............................................ $ 16.96 $ 16.15
STOCK PRICE
High ........................................................... $ 15.25 $ 14.50
Low ............................................................ $ 14.25 $ 12.50
Close .......................................................... $ 15.25 $ 13.25
</TABLE>
<PAGE>
Home Bancorp
Fort Wayne, IN
Management's Discussion and Analysis of
Financial Condition and Results of Operation
Item 2 Continued
Asset/Liability Management
The primary objective of asset/liability management is to manage
interest rate risk so as to control and limit fluctuations in net
interest income. The Company monitors its asset/liability mix on an
ongoing basis and attempts to manage interest rate risk by applying
policies that provide strategic and tactical guidance for improving net
interest income. Those policies include the sale of fixed-rate loans
with terms over twenty years in the secondary market, and the
aggressive promotion of adjustable rate products. In addition, the
Company strives to match maturities of long-term deposits with that of
fixed rate portfolio loans. Management actively manages its liquidity
position to achieve a balance between the desire to minimize risk and
maximize yield to fulfill its asset/liability goals.
Liquidity and Capital Resources
The Company's primary source of funds are deposits, principal and
interest payments on loans, and maturities of investment securities.
While maturities of investment securities and scheduled amortizations
of loans are a predictable source of funds, deposit flows and mortgage
prepayments are greatly influenced by general interest rates, economic
conditions and competition. In addition, if the Bank requires
additional funds beyond its ability to acquire them locally, it has
borrowing capability through the Federal Home Loan Bank (the "FHLB") of
Indianapolis. At June 30, 1996, the Bank had no advances from the FHLB
of Indianapolis or other borrowings outstanding and has not had any
such advances or other borrowings outstanding since 1983.
Home Loan Bank is required by federal regulations to maintain specific
levels of "liquid" assets consisting of cash and other eligible
investments. The standard measure of liquidity for thrift institutions
is the ratio of qualifying assets due within one year to net
withdrawable savings. Currently the minimum requirement is 5%. At June
30, 1996, the Bank's liquidity ratio was 24.53%. As of September 30,
1995, the Bank's liquidity was 31.72%.
The Bank uses its liquidity resources principally to meet ongoing
commitments, to fund maturing certificates of deposit and deposit
withdrawals and to meet operating expenses. The Bank anticipates that
it will have sufficient funds available to meet current loan
commitments and those liquidity needs. At June 30, 1996, the Bank had
outstanding commitments to extend credit which amounted to $14.4
million (including $8.2 million in unused lines of credit). Management
believes that loan repayments and other sources of funds will be
adequate to meet the Bank's foreseeable liquidity needs.
<PAGE>
Home Bancorp
Fort Wayne, IN
Management's Discussion and Analysis of
Financial Condition and Results of Operations
Item 2 Continued
The institution is required to maintain specific amounts of regulatory
capital pursuant to regulations of the Office of Thrift Supervision.
Regulatory standards impose the following capital requirements: a
risk-based capital expressed as a percent of risk-adjusted assets, a
leverage ratio of core capital to total adjusted assets, and a tangible
capital ratio expressed as a percent of total adjusted assets. As of
June 30, 1996, the Bank's capital totaled $39.4 million, or 12.75% of
tangible and core capital. Risk-based capital totaled $40.8 million, or
represented 29.17% of risk-based assets. The institution substantially
exceeded all regulatory capital standards.
<PAGE>
Home Bancorp
Fort Wayne, IN
Part II Other Information
Item 1 Legal Proceedings
There were no material proceedings to which Home Bancorp or
Home Loan Bank fsb is a party or of which any of their
property is subject. From time-to-time, the Bank is a party to
various legal proceedings incident to its business.
Item 2 Changes in Securities
None
Item 3 Defaults Upon Senior Securities
None
Item 4 Submission of Matters to a Vote of Security Holders
None
Item 5 Other Information
None
Item 6 Exhibits and Reports on Form 8-k
Press releases filed on Form 8-k for the quarter ended June
30, 1996 include:
Date of Report Subject
-------------- -------
May 2, 1996 2nd Quarter Fiscal 1996 Earnings
May 2, 1996 Announcement of First Declared Quarterly Dividend
May 21, 1996 Announcement of Completion of Stock Repurchase
June 10, 1996 Announcement of 3rd Stock Repurchase Program
<PAGE>
Home Bancorp
Fort Wayne, IN
Signatures
Pursuant to the requirement 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.
Home Bancorp
Date: August 2, 1996 /s/ W. Paul Wolf
------------------------
W. PAUL WOLF
Chairman, President, CEO
Date: August 2, 1996 /s/ Matthew P. Forrester
-------------------------
MATTHEW P. FORRESTER
Vice President, Treasurer
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