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Home Federal Bancorp Announces Annual Earnings.



Business Editors

COLUMBUS Columbus.

1 City (1990 pop. 178,681), seat of Muscogee co., W Ga., at the head of navigation on the Chattahoochee River; settled and inc. 1828 on the site of a Creek village.
, Ind IND Investigational new drug Therapeutics A status assigned by the FDA to a drug before allowing its use in humans, exempting it from premarketing approval requirements so that experimental clinical trials may be conducted. See Phase 1.2, 3 studies, Sponsorship. .--(BUSINESS WIRE)--July 23, 2002

Home Federal Bancorp (the "Company") (Nasdaq:HOMF), the holding Company of Home Federal Savings Bank Noun 1. federal savings bank - a federally chartered savings bank
FSB

savings bank - a thrift institution in the northeastern United States; since deregulation in the 1980s they offer services competitive with many commercial banks
 of Columbus, Indiana Columbus (IPA: [kəˈlʌm.bəs]) is the county seat of Bartholomew County, Indiana. The population was 39,059 at the 2000 census. The current mayor is Fred Armstrong.  (the "Bank"), announced today quarterly earnings of $2,612,000 or $0.60 basic and $0.57 diluted di·lute  
tr.v. di·lut·ed, di·lut·ing, di·lutes
1. To make thinner or less concentrated by adding a liquid such as water.

2. To lessen the force, strength, purity, or brilliance of, especially by admixture.
 earnings per common share, for its fourth quarter ended June June: see month.  30, 2002.

This compared to earnings of $2,365,000, or $0.54 basic and $0.52 diluted earnings per common share a year earlier. For the fiscal year ended June 30, 2002 net income was $10,339,000, or $2.34 basic and $2.25 diluted earnings per common share, compared to $9,549,000, or $2.13 basic and $2.07 diluted earnings per common share, a year earlier. Basic and diluted earnings per common share increased 10.1% and 9.1% for the annual period, respectively. The increase in net income for the year-to-date Year-to-date (YTD)

The period beginning at the start of the calendar year up to the current date.
 period was attributed to increases in gain on sale of loans due to the lower rate environment and increased loan originations The examples and perspective in this article or section may not represent a worldwide view of the subject.
Please [ improve this article] or discuss the issue on the talk page.
 compared to the year ago period, as well as improved net interest income after the loan loss provision.

In fiscal year 2002, net interest income after provision for loan losses increased by $679,000. The increase in net interest income after provision for loan losses was the result of interest expense for liabilities decreasing more than interest income on assets. This was the result of yields on assets decreasing at a slower pace than costs on liabilities. In addition, outstanding rate sensitive liabilities declined more than rate sensitive assets.

Other income increased $3,369,000 from $9,020,000 in fiscal year 2001 to $12,389,000 in fiscal year 2002. This increase was primarily due to the increases in gain on sale of loans of $2,481,000 and increases in other non-interest income categories of $888,000. These additional increases came from improved gain on sale of securities, brokerage BROKERAGE, contracts. The trade or occupation of a broker; the commissions paid to a broker for his services.  and trust fees, real estate owned Real Estate Owned

Property owned by a lender - usually a bank - after an unsuccessful sale at a foreclosure auction. This is common because most of the properties up for sale at these auctions are worth less than the total amount owed to the bank: the minimum bid in most
 gains, and loan servicing Loan servicing is the process by which a mortgage bank or subservicing firm collects the timely payment of interest and principal from borrowers. The level of service varies depending on the type loan and the terms negotiated between the firm and the investor seeking their services.  income.

Other expenses increased $2,532,000 over the prior fiscal year to $20,045,000 from $17,513,000. The increases came primarily from three areas, compensation and employee benefits, occupancy Gaining or having physical possession of real property subject to, or in the absence of, legal right or title.

In a fire insurance policy, for example, the term occupancy
 and equipment, and miscellaneous expenses. Compensation and employee benefits increased mainly due to rising funding expenses for the Bank's pension plans, increased health insurance costs, and expenses due to overtime Overtime is the amount of time someone works beyond normal working hours. Normal hours may be determined in several ways:
  • by custom (what is considered healthy or reasonable by society),
  • by practices of a given trade or profession,
  • by legislation,
 and commissions related to the increased loan activity during the year and extra time spent changing data processing data processing or information processing, operations (e.g., handling, merging, sorting, and computing) performed upon data in accordance with strictly defined procedures, such as recording and summarizing the financial transactions of a  systems during the year. Occupancy expense increased due to increased building depreciation expenses related to the remodeled Columbus, Indiana facility, as well as increased depreciation expense associated with new computer equipment and software required by the data processing system changes made during the year. Miscellaneous expenses increased primarily due to various real estate owned expenses, office supplies Office supplies is the generic term that refers to all supplies regularly used in offices by businesses and other organizations, from private citizens to governments, who works with the collection, refinement, and output of information (colloquially referred to as "paper work").  and data communication expenses.

Return on average assets for the year ended June 30, 2002, was 1.20%, up from the prior year of 1.12%. This ratio was up primarily due to the Bank's net interest income after loan loss provision improving as well as non-interest income growth exceeding non-interest expense growth.

Return on average equity for the year ended June 30, 2002, was 13.73%, slightly down from the prior year 13.76%.

Non-performing assets as a percentage of total assets declined to 0.70% at June 30, 2002, compared to 0.99%, at June 30, 2001. Non-performing loans A non-performing loan is a loan that is in default or close to being in default. Many loans become non-performing after being in default for 3 months, but this can depend on the contract terms.  to total gross loans declined to 0.58% for the current year-end year-end also year·end
n.
The end of a year.

adj.
Occurring or done at the end of the year: a year-end audit.

Noun 1.
 compared to 1.04% at June 30, 2001. These decreases have come primarily from the resolution of several large commercial real estate loans and commercial loans totaling approximately ap·prox·i·mate  
adj.
1. Almost exact or correct: the approximate time of the accident.

2.
 $1,958,000. Most of the current non-performing assets are secured with residential real estate of some type.

For the quarter ended June 30, 2002 net interest income after provision for loan loss increased $875,000 to $6,435,000 compared to $5,560,000 for the same period a year ago. In addition, the fourth quarter ended June 30, 2002 had a $508,000 reduction in the loan loss provision, this coupled with the same changes described above for the year-to-date increases, resulted in improved net interest income for the period.

Total other income remained basically unchanged at $2,680,000 for the quarter ended June 30, 2002 compared to $2,653,000 for the quarter ended June 30, 2001. The slight increase was due primarily to increases in joint venture income and brokerage and trust income offsetting a decrease on gain on sale of loans for the quarter ended June 30, 2002.

Non-interest expenses in the quarter ended June 30, 2002 increased to $5,019,000, compared to the quarter ended June 30, 2001 of $4,877,000, an increase of $142,000. Compensation and employee benefits increases were somewhat offset by reductions in miscellaneous expenses.

The Company's assets totaled $856,012,000 as of June 30, 2002, a decrease of $7,381,000 or less than 1%, from June 30, 2001. The decrease in assets was mainly the result of adjustable rate Adjustable rate

Applies mainly to convertible securities. Refers to interest rate or dividend that is adjusted periodically, usually according to a standard market rate outside the control of the bank or savings institution, such as that prevailing on Treasury bonds or notes.
 loans in the residential loan portfolio refinancing Refinancing

An extension and/or increase in amount of existing debt.
 to fixed rate loans and the cash from the sale of these loans being used to repay borrowings from the Federal Home Loan Bank of Indianapolis Indianapolis (ĭn'dēənă`pəlĭs), city (1990 pop. 731,327), state capital and seat of Marion co., central Ind., on the White River; selected 1820 as the site of the state capital (which was moved there in 1825), inc. 1847. .

As of June 30, 2002, shareholders' equity Shareholders' Equity

A firms' total assets minus its total liabilities. Equivalently, it is share capital plus retained earnings minus treasury shares. Shareholders' equity is the amount by which a company is financed through common and preferred shares.
 was $77,086,000, an increase of 7.0% from $72,044,000 at June 30, 2001. Based on June 30, 2002, book value of $17.78 per share, Home Federal Bancorp stock was trading at 130% of book value on that date. The stock price at June 30, 2002 was $23.10 per share or 10.3 times fiscal year 2002 diluted earnings per share diluted earnings per share

An earnings measure calculated by dividing net income less preferred stock dividends for a period by the average number of shares of common stock that would be outstanding if all convertible securities were converted into shares of
.

On March 26, 2002 the Board of Directors announced it had approved the fifth repurchase re·pur·chase  
tr.v. re·pur·chased, re·pur·chas·ing, re·pur·chas·es
To buy (something) again.

n.
The act of buying something that one previously sold or owned.

Noun 1.
, from time to time, on the open market of up to 5% of the Company's outstanding shares of common stock, without par value ("Common Stock"), or 218,385 such shares. Such purchases will be made subject to market conditions in open market or block transactions. To date the Company has purchased 87,150 shares under this plan.

Home Federal Bancorp is a financial holding company, with Home Federal Savings Bank as its principal subsidiary. Home Federal Savings Bank, a FDIC FDIC

See: Federal Deposit Insurance Corporation


FDIC

See Federal Deposit Insurance Corporation (FDIC).
 insured The person who obtains or is otherwise covered by insurance on his or her health, life, or property. The insured in a policy is not limited to the insured named in the policy but applies to anyone who is insured under the policy.


insured n.
 state chartered commercial bank, founded in 1908, offers a wide range of consumer and commercial financial services The examples and perspective in this article or section may not represent a worldwide view of the subject.
Please [ improve this article] or discuss the issue on the talk page.
 through seventeen Seventeen

novel of young love. [Am. Lit.: Booth Tarkington Seventeen in Magill I, 882]

See : Adolescence
 branch offices in southeastern south·east  
n.
1. Abbr. SE The direction or point on the mariner's compass halfway between due south and due east, or 135° east of due north.

2. An area or region lying in the southeast.

3.
 Indiana Indiana, state, United States
Indiana, midwestern state in the N central United States. It is bordered by Lake Michigan and the state of Michigan (N), Ohio (E), Kentucky, across the Ohio R. (S), and Illinois (W).
 and one commercial loan office in Indianapolis, Indiana “Indianapolis” redirects here. For other uses, see Indianapolis (disambiguation).
Indianapolis (IPA: [ˌɪndiəˈnæpəlɪs]) is the capital city of the U.S.
.

This press release contains certain forward-looking statements forward-looking statement

A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections.
 within the meaning of the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and  of 1995. Forward-looking statements include expressions such as "expects," "intends," "believes," and "should," which are necessarily statements of belief as to the expected outcomes of future events. Actual results could materially differ from those presented. Home Federal Bancorp undertakes no obligation to release revisions ReVisions is a 2004 anthology of alternate history short-stories. It is edited by Julie E. Czerneda and Isaac Szpindel. Contents

Title Author
The Resonance of Light James Alan Gardner
Out of China Julie E.
 to these forward-looking statements or reflect events or circumstances CIRCUMSTANCES, evidence. The particulars which accompany a fact.
     2. The facts proved are either possible or impossible, ordinary and probable, or extraordinary and improbable, recent or ancient; they may have happened near us, or afar off; they are public or
 after the date of this release. The company's ability to predict future results involves a number of risks and uncertainties, some of which have been set forth in the company's most recent annual report on Form 10-K Form 10-K

A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information.


Form 10-K

See 10-K.
, which disclosures are incorporated by reference herein.


HOME FEDERAL BANCORP
CONSOLIDATED BALANCE SHEETS
(in thousands)
(unaudited)                             June 30,  June 30,
                                          2002      2001
                                         -------   -------
ASSETS:
Cash                                 $   25,006  $ 25,814
Interest-bearing deposits                19,472     9,610
                                         -------   -------
 Total cash and cash equivalents         44,478    35,424
                                         -------   -------

Securities available for sale
 at fair value (amortized cost
 $113,132 and $79,826)                  114,989    80,316
Securities held to maturity
 (fair value $3,619 and $7,409)           3,493     7,296
Loans held for sale
 (fair value $6,383 and $12,518)          6,302    12,383
Loans receivable, net of allowance
 for loan losses of $6,451 and $5,690   631,815   674,552
Investments in joint ventures             8,153    10,075
Federal Home Loan Bank stock              9,965     9,866
Accrued interest receivable, net          4,431     5,213
Premises and equipment, net              12,192    11,915
Real estate owned                         2,239     1,298
Prepaid expenses and other assets         6,768     4,386
Cash surrender value of life insurance    9,792     9,274
Goodwill                                  1,395     1,395
                                         -------   -------
   TOTAL ASSETS                      $  856,012  $ 863,393
                                        =======    =======

LIABILITIES AND SHAREHOLDERS' EQUITY:
Deposits                             $   577,480 $ 576,543
Advances from Federal Home Loan Bank     174,139   192,067
Senior debt                               11,200    11,200
Other borrowings                           3,341     4,341
Advance payments by borrowers for
 taxes and insurance                         442       441
Accrued expenses and other liabilities    12,324     6,757
                                         --------  --------
   Total liabilities                     778,926   791,349
                                         --------  --------

Shareholders' equity:
 No par preferred stock;
  Authorized: 2,000,000 shares
  Issued and outstanding: None
 No par common stock;
  Authorized: 15,000,000 shares
  Issued and outstanding:                  9,086     8,033
     4,336,515 shares at June 30, 2002
     4,415,704 shares at June 30, 2001
 Retained earnings, restricted            67,150    63,787
Accumulated other comprehensive income,
  net of taxes                               850       224
                                          -------   -------
  Total shareholders' equity              77,086    72,044
                                          -------   -------
  TOTAL LIABILITIES AND SHAREHOLDERS'
   EQUITY                            $   856,012 $ 863,393
                                         =======   =======

HOME FEDERAL BANCORP
CONSOLIDATED STATEMENTS OF INCOME
(in thousands except per share data)
(unaudited)              Three Months Ended       Twelve Months Ended
                              June 30,                 June 30,
                       -----------------------  ----------------------
Interest income:         2002        2001        2002          2001
                         --------   ---------   --------     --------
 Loans receivable      $ 11,807    $ 14,206    $ 50,230     $ 57,590
 Securities available
  for sale and held
  to maturity             1,552       1,389      5,488        6,622
 Other interest
  income                    111          94        580          545
                         --------   ---------   --------     --------
 Total interest
  income                 13,470      15,689     56,298       64,757
                        --------    ---------   --------     --------

Interest expense:
 Deposit                  3,951       6,321     18,716       26,710
 Advances from
  Federal Home
  Loan Bank               2,688       2,901     11,106       11,987
 Other borrowings           203         206        813          819
                         --------   ---------   --------     --------
 Total interest
  expense                 6,842       9,428     30,635       39,516
                         --------   ---------   --------     --------

Net interest income       6,628       6,261     25,663       25,241
Provision for loan
 losses                     193         701      1,423        1,680
                         --------   ---------   --------     --------
Net interest income
 after provision for
 loan losses              6,435       5,560     24,240       23,561
                         --------   ---------   --------     --------

Other income:
 Gain on sale of loans      635         790      4,456        1,975
 Gain(loss) on sale
  of securities             --           --         92         (196)
 Income (loss) from
  joint ventures            266          77        880          811
 Insurance, annuity
  income, other fees        406         312      1,400        1,159
 Service fees on
  NOW accounts              595         607      2,241        2,316
 Net gain (loss)
  on real estate
  owned and repossessed
  assets                     56           8        271          107
 Loan servicing income      238         296      1,031          836
 Miscellaneous              484         563      2,018        2,012
                         --------   ---------   --------     --------
 Total other income       2,680       2,653     12,389        9,020
                         --------   ---------   --------     --------

Other expenses:
 Compensation and
  employee benefits       2,880       2,446     10,813        9,270
 Occupancy and equipment    705         665      2,850        2,530
 Service bureau expense     240         263      1,029          938
 Federal insurance
  premium                    25          27        104          113
 Marketing                  148         153        571          549
 Goodwill amortization        -           25         -          101
 Miscellaneous            1,021       1,298      4,678        4,012
                         --------   ---------   --------     --------
 Total other expenses     5,019       4,877     20,045       17,513
                         --------   ---------   --------     --------

Income before income
 taxes                    4,096       3,336     16,584       15,068
Income tax provision      1,484         971      6,245        5,519
                         --------   ---------   --------     --------
Net Income              $ 2,612     $ 2,365   $ 10,339      $ 9,549
                        ========    ========  ========      ==========

Basic earnings per
 common share           $  0.60     $  0.54   $   2.34      $  2.13
Diluted earnings
 per common share       $  0.57     $  0.52   $   2.25      $  2.07

Basic weighted average
 number of shares     4,346,629   4,414,675  4,409,829    4,485,583
Dilutive weighted
 average number of
 shares               4,593,603   4,570,940  4,588,594    4,623,419
Dividends per share     $ 0.150     $  .138   $  0.575      $ 0.550



Supplemental Data:          Three Months Ended       Year to Date
(unaudited)                      June 30,               June 30,
                        ------------------------  --------------------
                              2002      2001      2002      2001
                             ------    ------    ------    ------
Weighted average
 interest rate
 earned on total
 interest-earning
 assets                        6.93%    7.98%    7.17%    8.25%
Weighted average cost
 of total
  interest-bearing
  liabilities                  3.61%    4.87%    3.98%    5.12%
Interest rate spread
 during period                 3.32%    3.10%    3.19%    3.12%

Net yield on
 interest-earning assets
 (net interest income
 divided by average
 interest-earning
 assets on annualized
 basis)                        3.41%    3.18%    3.27%    3.21%
Total interest income
 divided by average
 total assets (on
 annualized basis)             6.33%    7.28%    6.55%    7.60%
Total interest expense
 divided by average
 total assets (on
 annualized basis)             3.22%    4.39%    3.57%    4.64%
Net interest income
 divided by average
 total assets (on
 annualized basis)             3.11%    2.91%    2.99%    2.96%

Return on assets
 (net income divided by
    average total assets
  on annualized basis)         1.23%    1.10%    1.20%    1.12%
Return on equity (net
 income divided by
 average total equity
 on annualized basis)         13.72%   13.30%   13.73%   13.76%


                                          At June 30,
                                  ------------------------------
                                        2002       2001
                                       -----       -----

Book value per share
 outstanding                           $17.78    $16.32

Nonperforming Assets:
 Loans: Non-accrual                    $2,281    $6,351
        Past due 90 days or more        1,110         0
        Restructured                      374       879
                                        ------   ------
  Total nonperforming loans             3,765     7,230
  Real estate owned, net                2,168     1,238
  Other repossessed assets, net            71        60
                                        ------   ------
 Total Nonperforming Assets            $6,004    $8,528

Nonperforming assets divided
 by total assets                         0.70%     0.99%
Nonperforming loans divided
 by total loans                          0.58%     1.04%

Balance in Allowance for Loan Losses   $6,451    $5,690

COPYRIGHT 2002 Business Wire
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 2002, Gale Group. All rights reserved. Gale Group is a Thomson Corporation Company.

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Publication:Business Wire
Geographic Code:1U3IN
Date:Jul 23, 2002
Words:2195
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