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 December 31, 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 [ ]
As of December 31, 1996, there were 3,381,385 shares of common stock issued and
2,652,613 shares outstanding.
<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 1 December 31, 1996 and
September 30, 1996.
Consolidated Statements of Income for the
three months ended December 31, 1996 and 1995
Consolidated Statements of Cash Flows for the
three months ended December 31, 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
<TABLE>
<CAPTION>
CONSOLIDATED BALANCE SHEETS
AS OF DECEMBER 31, 1996 AND SEPTEMBER 30, 1996
(Unaudited)
December 31, September 30,
ASSETS 1996 1996
------------- -------------
<S> <C> <C>
Cash on hand and in other banks ............................. $ 1,412,734 $ 1,206,753
Interest earning deposits in other banks .................... 7,312,347 4,615,815
Federal funds sold .......................................... 11,800,000 6,100,000
------------- -------------
Cash and cash equivalents ................................... 20,525,081 11,922,568
Investment securities available for sale .................... 4,005,625 3,969,375
Investment securities held to maturity
(Market value $37,205,000; $49,272,500) .................. 36,810,077 48,818,448
Loans receivable, net
(Allowance for loan losses $1,386,189; $1,385,589) ....... 256,533,741 250,305,646
Federal Home Loan Bank stock ................................ 2,054,200 2,054,200
Accrued interest receivable ................................. 2,059,262 2,260,499
Bank premises & equipment ................................... 2,806,767 2,594,917
Intangible assets ........................................... -- --
Foreclosed real estate, net ................................. -- --
Deferred & current income taxes ............................. 306,772 514,781
Other assets ................................................ 66,474 261,480
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TOTAL ASSETS ................................................ $ 325,167,999 $ 322,701,914
============= =============
LIABILITIES
Deposits .................................................... $ 277,039,872 $ 271,185,467
Borrowings .................................................. -- --
Advances from borrowers for taxes and insurance ............. 1,231,376 1,886,859
Accrued interest payable .................................... 1,097,285 950,694
Other liabilities ........................................... 318,627 1,987,566
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TOTAL LIABILITIES ........................................... 279,687,160 276,010,586
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<PAGE>
<CAPTION>
CONSOLIDATED BALANCE SHEETS
AS OF DECEMBER 31, 1996 AND SEPTEMBER 30, 1996
(continued)
(Unaudited)
December 31, September 30,
1996 1996
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<S> <C> <C>
STOCKHOLDERS' EQUITY
Preferred stock, no par value, 5,000,000 shares
authorized, none issued .................................... -- --
Common stock, no par value, 10,000,000 shares authorized,
3,381,385; 3,381,505 issued, 2,652,613; 2,762,350 outstanding 33,801,763 33,758,217
Retained earnings ........................................... 25,729,734 25,181,166
Unearned ESOP compensation .................................. (1,943,228) (2,001,177)
Unearned RRP compensation ................................... (894,002) (955,589)
Treasury stock 728,772 appreciation; 619,155 shares, at cost (11,239,372) (9,294,413)
Net unrealized appreciation on securities available for sale 25,944 3,124
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TOTAL STOCKHOLDERS' EQUITY .................................. 45,480,839 46,691,328
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TOTAL LIABILITIES & STOCKHOLDERS' EQUITY .................... $ 325,167,999 $ 322,701,914
============= =============
</TABLE>
<PAGE>
HOME BANCORP
And wholly owned subsidiary
HOME LOAN BANK fsb
Fort Wayne, Indiana
<TABLE>
<CAPTION>
CONSOLIDATED STATEMENTS OF INCOME
THREE MONTHS ENDED DECEMBER 31, 1996 AND 1995
(Unaudited)
Three months ended:
December 31,
1996 1995
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<S> <C> <C>
INTEREST INCOME
Loans receivable ............................. $4,970,921 $4,311,733
Investment securities ........................ 999,083 1,402,185
---------- ----------
Total interest income ........................ 5,970,004 5,713,918
INTEREST EXPENSE
Deposits ..................................... 3,619,445 3,491,779
Borrowings ................................... -- --
---------- ----------
Total interest expense ....................... 3,619,445 3,491,779
Net interest income .......................... 2,350,559 2,222,139
Provision for loan losses .................... 600 6,000
---------- ----------
Net interest income after provision .......... 2,349,959 2,216,139
NON-INTEREST INCOME
Net gain-sale of interest earning assets ..... -- 2,112
Net gain-sale of real estate ................. -- --
Fees and service charges ..................... 59,071 54,808
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Total non-interest income .................... 59,071 56,920
NON-INTEREST EXPENSE
Compensation & employee benefits ............. 705,715 626,571
Net occupancy & equipment .................... 143,488 133,248
FDIC insurance premiums ...................... 152,337 144,137
Other general & administrative expenses ...... 297,261 295,511
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Total non-interest expense ................... 1,298,801 1,199,467
Earnings before income tax ................... 1,110,229 1,073,592
Income tax expense ........................... 459,229 444,592
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NET INCOME ................................... $ 651,000 $ 629,000
========== ==========
Earnings per share ........................... $ 0.26 $ 0.20
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
HOME BANCORP
Fort Wayne, Indiana
STATEMENTS OF CASH FLOWS
THREE MONTHS ENDED DECEMBER 31, 1996 AND 1995
(Unaudited)
1996 1995
---- ----
<S> <C> <C>
CASH FLOW FROM OPERATING ACTIVITIES
Net Income ............................................................... $ 651,000 $ 629,000
Adjustments to reconcile net income to net cash from operating activities
Depreciation ....................................................... 47,072 43,571
Provision for loan losses ........................................... 600 6,000
Gain on sale of securities .......................................... - - - - - -
Gain on sale of loans ............................................... - - - (2,112)
Gain on sale of foreclosed real estate .............................. - - - - - -
Loans originated for sale ........................................... - - - (121,388)
Proceeds from loan sales ............................................ - - - 123,500
ESOP expense ........................................................ 86,589 79,412
Amortization of RRP contribution .................................... 59,757 - - -
Loss on disposal of premises and equipment .......................... - - - - - -
Amortization of premiums and accretion of discounts, net ............ (23,250) (33,669)
Change in
Accrued interest receivable .................................. 201,237 263,862
Other liabilities ............................................ (1,522,348) (98,695)
Other assets ................................................. 469,622 385,982
------------ ------------
Net cash from operating activities ...................... (29,721) 1,275,463
CASH FLOWS FROM INVESTING ACTIVITIES
Proceeds from maturities of securities held to maturity ........... 12,000,000 13,000,000
Proceeds from investment securities ............................... - - - - - -
Proceeds from sales of securities available for sale .............. - - - - - -
Purchase of securities available for sale ......................... - - - - - -
Purchase of securities held to maturity ........................... - - - - - -
Purchase of investment securities ................................. - - - - - -
Purchase of Federal Home Loan Bank stock .......................... - - - - - -
Net change in loans ............................................... (6,228,695) (7,174,161)
Purchase of premises and equipment ................................ (258,922) (22,133)
------------ ------------
Net cash from investing activities ...................... 5,512,383 5,803,706
CASH FLOW FROM FINANCING ACTIVITIES
Net change in deposit ............................................. 5,854,405 1,712,251
Decrease in advance payments by borrowers for taxes
and insurance .................................................. (655,483) (611,104)
Purchase of treasury stock ........................................ (1,944,959) - - -
Cash dividends paid ............................................... (134,112) - - -
------------ ------------
Net cash from financing activities ....................... 3,119,851 1,101,147
------------ ------------
<PAGE>
<CAPTION>
HOME BANCORP
Fort Wayne, Indiana
STATEMENTS OF CASH FLOWS
THREE MONTHS ENDED DECEMBER 31, 1996 AND 1995
(Unaudited)
(continued)
1996 1995
---- ----
<S> <C> <C>
Net change in cash and equivalents ........................................ 8,602,513 8,180,316
Cash and cash equivalents, beginning of period ............................ 11,922,568 21,389,727
------------ ------------
Cash and cash equivalents, end of period .................................. $ 20,525,081 $ 29,570,043
============ ============
Supplemental disclosures of cash flow information
Cash paid for
Interest on deposits ........................................... $ 3,472,854 $ 3,498,383
Income taxes ................................................... 262,976 444,592
</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 December 31, 1996 and for the interim
periods ended December 31, 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.
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.
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").
<PAGE>
Home Bancorp
Fort Wayne, IN
Notes to Consolidated Financial Statements
(Unaudited)
Item 1 Continued
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. Changes in Method of Accounting
Effective October 1, 1996 the Company adopted the following Statements of
Accounting Financial Standards (SFAS). These accounting statements include:
1) SFAS No. 121, "Accounting for the Impairment of Long-Lived Assets
and for Long-Lived Assets to be Disposed of"
2) SFAS No. 122, "Accounting for Mortgage Servicing Rights"
3) SFAS No. 123, "Accounting for Stock-Based Compensation"
4) SFAS No. 125, "Accounting for Transfers and Servicing of Financial
Assets and Extinguishment of Liabilities"
Management determined the current impact of the adoption of these statements on
the financial position or results of operations of the Company was not material.
F. 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.
When used in this Form 10-Q or future filings by the Company with the Securities
and Exchange Commission, in the Company's press releases or other public or
shareholder communications, or in oral statements made with the approval of an
authorized executive officer, the words or phrases "will likely result", "are
expected to", "will continue", "is anticipated", "estimated", "project",
"believe" or similar expressions are intended to identify 'forward-looking
statements" within the meaning of the Private Securities Litigation Reform Act
of 1995. The Company wishes to caution readers not to place undue reliance on
any such forward-looking statements, which speak only as of the date made, and
to advise readers that various factors, including regional and national economic
conditions, changes in the levels of market interest rates, credit risks of
lending activities, and competitive and regulatory factors, could affect the
Company's financial performance and could cause the Company's actual results for
future periods to differ materially from those anticipated or projected.
The Company does not undertake, and specifically disclaims any obligation, to
publicly release the result of revisions which may be made to forward-looking
statements to reflect the occurrence of anticipated or unanticipated events or
circumstances after the date of such statements.
<PAGE>
Home Bancorp
Fort Wayne, IN
Management's Discussion and Analysis of
Financial Condition and Results of Operation
Item 2 Continued
Financial Condition
The Company's total assets were $325.2 million as of December 31, 1996 compared
to $322.7 million as of September 30, 1996, an increase of $2.5 million. For the
same period, equity decreased from $46.7 million as of September 30, 1996 to
$45.5 million as of December 31, 1996. The modest growth in total assets and the
decrease in equity for the period ended December 31, 1996, was the result of the
repurchase of 109,617 shares of the Company's common stock held as treasury
stock. The treasury stock purchases represented $1.9 million.
Deposits increased $5.8 million for the three months ended December 31, 1996
from $271.2 million as of September 30, 1996 to $277.0 million as of December
31, 1996.
Cash and cash equivalents increased from $11.9 million as of September 30, 1996
to $20.5 million as of December 31, 1996, an increase of $8.6 million.
Investment securities held to maturity decreased $12.0 million, from $48.8
million as of September 30, 1996 to $36.8 million as of December 31, 1996. As of
December 31, 1996 and September 30, 1996, the Company had $4.0 million in
securities held as available for sale. The decrease in investment securities was
the result of investment maturities during the period, used to fund the increase
in cash and cash equivalents, to fund the stock repurchase program, and growth
in the loan portfolio.
Loans receivable increased $6.2 million, primarily from 1-4 family residential
originations, from $250.3 million at September 30, 1996 to $256.5 million at
December 31, 1996. Accrued interest receivable decreased from $2.3 million to
$2.1 million as of December 31, 1996, as a decrease on accrued investment
securities offset increases from loan receivables during the period. Bank
premises and equipment during the quarter increased $0.2 million primarily from
construction expenditures associated with the Bank's ninth branch office located
north of Fort Wayne. Income taxes, current and deferred, as of December 31, 1996
reflect a decrease of $0.2 million during the period associated with the payment
of current tax liabilities.
Advances from borrowers for taxes and insurance decreased from $1.9 million as
of September 30, 1996 to $1.2 million as of December 31, 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 December 31, 1996 increased by
$22,000, or 3.5%, to $651,000 from $629,000 for the same period in 1995. This
increase is attributable to an increase in net interest income for the period
that more than offset increased non-interest expenses during the period.
<PAGE>
Home Bancorp
Fort Wayne, IN
Management's Discussion and Analysis
Financial Condition and Results of Operation
Item 2 Continued
Net Interest Income. The Company's net income is primarily dependent upon net
interest income. The $256,000 increase in net interest income for the three
month period ended December 31, 1996 compared to the same period in 1995, was
primarily the result of improving net interest rate spreads. The average yield
on interest-earning assets increased from 7.30% to 7.40% for the like three
month period ended December 31 due to higher market interest rates and increases
in outstanding loan balances. For the three month like periods, these increases
were enhanced by a decrease in the rates paid on deposits. For the three months
ended December 31,1996, the average cost of interest-bearing liabilities was
5.26% compared to 5.41% for the like period in 1995. This fluctuation is
attributable to 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 increased by $600 for the three months ended December 31, 1996
and $6,000 compared to the corresponding period 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 December 31, 1996, the
Company's allowance for loan losses totaled $1.4 million or .54% of net loans
receivable and 674.90% 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 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.
<PAGE>
Home Bancorp
Fort Wayne, IN
Management's Discussion and Analysis of
Financial Condition and Results of Operation
Item 2 Continued
Non-Interest Income. Non-interest income consists primarily of service fees on
deposit accounts and loan servicing fees. Non-interest income increased
approximately $2,000 for the three month period ended December 31, 1996 in
comparison to the like period in 1995. This modest increase was the result of
service related fees and safety deposit box income.
Non-Interest Expense. Non-interest expenses were $1,298,801 for the three period
ended December 31, 1996 compared to $1,199,467 reported for the same period in
1995. For the period ended December 31, 1996, compensation and employee benefits
increased $79,144 compared to the same period in 1995 due to contributions to
the defined retirement program, staffing requirements from the opening of an
additional branch office, and normal inflationary increases to salaries. Net
occupancy and equipment expense increased $10,240 for period ended December 31,
1996 compared to the same period in 1995 from operating expenses associated with
the additional branch office and non-recurring charges and equipment purchases.
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.
<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
Three Months Ended
December 31,
FINANCIAL HIGHLIGHTS (Averages) 1996 1995
------------ ------------
<S> <C> <C>
Return on assets ...................................... 0.80% 0.80%
Return on equity ...................................... 5.66% 4.62%
Yield on interest-earning assets ...................... 7.40% 7.30%
Cost of interest-bearing liabilities .................. 5.26% 5.41%
Net interest spread ................................... 2.14% 1.89%
Net interest rate margin .............................. 2.90% 2.83%
Net interest income to operating (G&A) expenses ....... 180.98% 185.26%
Operating (G&A) expenses to assets .................... 1.60% 1.53%
Non-interest income to assets ......................... 0.07% 0.07%
Interest-earning assets to interest-bearing liabilities 115.88% 120.68%
Efficiency ratio ...................................... 53.90% 52.63%
Equity to assets ...................................... 14.21% 17.33%
Tangible equity to assets ............................. 14.21% 17.33%
Average assets (dollars in thousands) ................. $ 323,859 $ 314,008
ASSET QUALITY RATIOS
Non-performing assets to total assets ................. 0.06% 0.08%
Non-performing loans to net loans ..................... 0.08% 0.11%
Allowance for loan losses to net loans ................ 0.54% 0.62%
Allowance for loan losses to non-performing loans ..... 674.90% 555.49%
Net charge offs to loans .............................. -- --
Loans to deposits ..................................... 92.60% 85.94%
Loans to assets ....................................... 78.89% 70.37%
PER COMMON SHARE
Net income ............................................ $ 0.26 $
Book value ............................................ $ 17.15 $ 16.19
Tangible book value ................................... $ 17.15 $ 16.19
STOCK PRICE
High .................................................. $ 19.50 $ 16.00
Low ................................................... $ 16.00 $ 14.50
Close ................................................. $ 19.00 $ 15.25
</TABLE>
<PAGE>
Home Bancorp
Fort Wayne, IN
Management's Discussion and Analysis of
Financial Condition and Results of Operations
Item 2 Continued
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 December 31, 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 December 31, 1996, the Bank's liquidity ratio was 20.52%.
As of December 31, 1995, the Bank's liquidity was 29.22%.
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
December 31, 1996, the Bank had outstanding commitments to extend credit which
amounted to $11.7 million (including $8.8 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.
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 December 31, 1996, the Bank's capital totaled $38.5
million, or 12.03% of tangible and core capital. Risk-based capital totaled
$39.9 million, or represented 26.50% 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
No matter was submitted to a vote of security holders, through the
solicitation of proxies or otherwise, during the quarter ended December
31, 1996. Subsequent to December 31, 1996, however, the following
matters were voted on:
(a) Annual Meeting of Shareholders meeting date: January 28, 1997 (b)
Meeting of January 28, 1997 involved the election of two (2) directors,
Messrs. Daniel F. Fulkerson and Walter A. McComb, Jr. The expiration of
their terms and those directors continuing in office are as follows:
Director Expiration of Term
-------- ------------------
Daniel F. Fulkerson 2000
Walter A. McComb, Jr. 2000
Matthew P. Forrester 1999
Rod M. Howard 1999
Luben Lazoff 1999
C. Philip Andorfer 1998
Richard P. Hormann 1998
W. Paul Wolf 1998
<PAGE>
Home Bancorp
Fort Wayne, IN
Part II Other Information
(c) Matters voted upon at the Annual Meeting on January 28, 1997
included the following items and the number of votes cast included:
Election of Directors Votes For Votes Against
--------------------- --------- -------------
Daniel F. Fulkerson 2,229,051 22,927
Walter A. McComb, Jr. 2,224,001 27,977
Votes Against
Ratification of Auditor Votes For Or Withheld
Crowe Chizek 2,232,841 19,137
and Company, LLP
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 December 31,
1996 include:
Date of Report Subject
-------------- -------
October 28, 1996 Fiscal Year 1996 Earnings Report,
Quarterly Dividend Declaration
December 23, 1996 Announcement of Completion of Stock
Repurchase, and of the Announcement of the
5th 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: February 10, 1997 /s/ W. Paul Wolf
----------------
W. Paul Wolf
Chairman, President, CEO
Date: February 10, 1997 /s/ Matthew P. Forrester
------------------------
Matthew P. Forrester
Vice President, Treasurer
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0
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