-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, GEq7XG/e/96CSlpBz4zlMRLIsTC4mSJRxkX8qy0KGoXfvjLMTNbJ7yQhDumDp5fk 9zJpJmIsMhS7z170QAk6Ug== 0001144204-07-020494.txt : 20070425 0001144204-07-020494.hdr.sgml : 20070425 20070425103655 ACCESSION NUMBER: 0001144204-07-020494 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20070424 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20070425 DATE AS OF CHANGE: 20070425 FILER: COMPANY DATA: COMPANY CONFORMED NAME: HOME FEDERAL BANCORP CENTRAL INDEX KEY: 0000867493 STANDARD INDUSTRIAL CLASSIFICATION: SAVINGS INSTITUTION, FEDERALLY CHARTERED [6035] IRS NUMBER: 351807839 STATE OF INCORPORATION: IN FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 000-18847 FILM NUMBER: 07786397 BUSINESS ADDRESS: STREET 1: 501 WASHINGTON STREET CITY: COLUMBUS STATE: IN ZIP: 47201 BUSINESS PHONE: 8125221592 MAIL ADDRESS: STREET 1: 501 WASHINGTON STREET CITY: SEYMOUR STATE: IN ZIP: 47201 8-K 1 v072427.txt UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 FORM 8-K CURRENT REPORT Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Date of report (Date of earliest event reported): April 24, 2007 Home Federal Bancorp (Exact Name of Registrant as Specified in Its Charter) Indiana 000-18847 35-1807839 (State or Other Jurisdiction (Commission File Number) (IRS Employer of Incorporation) Identification No.) 501 Washington Street, Columbus, Indiana 47201 (Address of Principal Executive Offices) (Zip Code) (812) 522-1592 (Registrant's Telephone Number, Including Area Code) N/A (Former Name or Former Address, if Changed Since Last Report) Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below): |_| Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |_| Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |_| Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |_| Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) Item 2.02. Results of Operations and Financial Condition On April 24, 2007, Home Federal Bancorp (the "Registrant") issued a press release reporting its results of operations and financial condition for the first fiscal quarter ended March 31, 2007 and the announcement of its twelfth stock repurchase program. A copy of the press release is attached as Exhibit 99.1 to this Current Report and is incorporated herein by reference. The information disclosed under this Item 2.02, including Exhibit 99.1 hereto, is being furnished and shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, and shall not be deemed incorporated by reference into any filing made under the Securities Act of 1933, except as expressly set forth by specific reference in such filing. Item 9.01. Financial Statements and Exhibits (d) Exhibits. EXHIBIT NO. DESCRIPTION 99.1 Press Release dated April 24, 2007 SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereto duly authorized. Date: April 24, 2007 HOME FEDERAL BANCORP By:/s/ Mark T. Gorski --------------------------------- Mark T. Gorski Executive Vice President and Chief Financial Officer EX-99.1 2 v072427_ex99-1.txt LOGO NEWS RELEASE ------------ For Immediate Release April 24, 2007 Contacts: John K. Keach, Jr. Mark T. Gorski Chairman Executive Vice President Chief Executive Officer Chief Financial Officer (812) 373-7816 (812) 373-7379 HOME FEDERAL BANCORP ANNOUNCES FIRST QUARTER EARNINGS AND STOCK REPURCHASE PROGRAM (Columbus, In) -- Home Federal Bancorp (the "Company") (NASDAQ: HOMF), the holding company of HomeFederal Bank of Columbus, Indiana (the "Bank"), today announced quarterly earnings of $1,089,000 or $0.30 diluted earnings per common share, for the quarter. First quarter earnings included a pre-tax charge of $788,000 related to a separation agreement with a former executive vice president of the Bank and the Company. Excluding the impact of the charge related to the separation agreement, first quarter earnings would have been $1,565,000 or $0.43 diluted earnings per common share. This compared to earnings of $1,524,000, or $0.39 diluted earnings per common share, a year earlier. Total loans increased $13.5 million for the quarter driven by commercial loan growth of $22.6 million. The growth in commercial loans had a positive impact on net interest margin, which increased to 3.44% for the quarter - a 12 basis point increase from the prior year. Chairman and CEO John Keach, Jr. stated, "We are pleased with the continued growth of our commercial loan portfolio. We remain excited about our opportunities for growth in the Indianapolis market, but we are very encouraged by the $9 million of commercial loan growth during the quarter that was originated in our southeast Indiana markets." Executive Vice President and CFO Mark Gorski added, "We are very pleased with the improvement in our net interest margin resulting from the balance sheet repositioning strategies." Balance Sheet Total assets were $865.1 million as of March 31, 2007, a decrease of $39.4 million from December 31, 2006. Total loans increased $13.5 million while total cash and due from banks decreased $51.8 million. Cash and due from banks was unusually high at the end of the prior year due to large deposits made by public fund customers at year end, which were subsequently withdrawn in early January 2007. Total retail deposits decreased $27.1 million compared to balances at December 31, 2006. As mentioned above, prior year end balances included several unusually large public fund account balances. During the first quarter of 2007, public fund transaction account balances decreased $42.9 million to more consistent levels. All other retail deposit categories in total increased $15.8 million including growth of $13.4 million in certificates of deposit and growth of $2.8 million in non interest bearing checking accounts. ***** MORE ***** Home Federal Bancorp First Quarter Earnings Page 2 As of March 31, 2007, shareholders' equity was $68.4 million. The decrease in shareholders' equity of $2.9 million during the quarter was primarily the result of stock repurchases of 130,349 shares for $3.8 million. The return on average assets for the quarter was 0.50% annualized while the return on average equity was 6.17%. Excluding the impact of the charges associated with the separation agreement, the return on average assets for the quarter would have been 0.72% annualized while the return on average equity would have been 8.87%. Asset Quality Provision for loan losses was $280,000 for the first quarter, an increase of $163,000 over the first quarter of 2006. Net charge offs were $175,000 for the first quarter representing an annualized net charge off ratio of 0.10% compared to net charge offs of $99,000 representing an annualized net charge off ratio of 0.06% for the first quarter of 2006. The increase in the provision for loan losses resulted from the growth in generally higher risk commercial loans during the quarter. Non-performing assets to total assets increased to 0.57% at March 31, 2007 from 0.46% at December 31, 2006. Non-performing loans to total gross loans increased to 0.65% at March 31, 2007 from 0.54% at December 31, 2006. The ratio of the allowance for loan losses to total loans was 0.95% at March 31, 2007. In addition, the allowance for loan losses to non-performing loans was 143% as of March 31, 2007 compared to 176% at December 31, 2006. Net Interest Income Net interest income was $6,803,000 for the first quarter, an increase of $476,000 or 8% over the first quarter of 2006. Net interest margin for the quarter was 3.44%, a 10 basis point increase compared to the fourth quarter of 2006 and a 12 basis point increase compared to the first quarter of 2006. During periods of rising interest rates, the yield on interest bearing liabilities generally increases more rapidly than the yield on interest earning assets. The yield on interest earning assets and interest bearing liabilities have increased due to the impact of generally higher interest rates compared to the first quarter of 2006. However, the shift in interest earning assets away from lower yielding investment securities and residential mortgage loans into higher yielding commercial loans along with the shift from generally higher cost wholesale funding sources to retail deposits has allowed the yield on interest earning assets to grow at a faster pace than the yield on interest bearing liabilities. Non Interest Income Non interest income was $2,907,000 for the first quarter, an increase of $142,000 or 5% over the first quarter of 2006. The increase in non interest income was due primarily to increases in deposit service fee income and investment advisory fees. Total deposit fee income increased $341,000 or 31% over the first quarter of 2006 due primarily to the implementation of an enhanced overdraft privilege product in the second quarter of 2006 as well as an increased number of deposit accounts. Investment advisory fees increased $82,000 or 23% over the first quarter of 2006 due to continued increases in assets under management as compared to the prior year along with the addition of two additional brokers during 2006. These increases were partially offset by the decrease in loan servicing income. Due to the sale of the mortgage servicing portfolio in the fourth quarter of 2006, loan servicing income decreased $292,000 over the first quarter of 2006. In addition, loan servicing income for the first quarter of 2006 included a $206,000 impairment recovery. ***** MORE ***** Home Federal Bancorp First Quarter Earnings Page 3 Non Interest Expenses Non interest expenses was $7,798,000 for the quarter, an increase of $1,096,000 over the first quarter of 2006. Excluding the impact of the charges associated with the separation agreement, non interest expenses increased $308,000 or 5% over the first quarter of 2006. Compensation and employee benefits expense increased $213,000 or 6% over the first quarter of 2006 due primarily to additional salary and incentive compensation expense for the new commercial lending and commercial credit staff in Indianapolis, additional brokerage commission costs resulting from increased revenue and normal annual salary increases. Marketing expense decreased $132,000 over the first quarter of 2006. We expect our marketing expense for 2007 to be approximately equal to 2006; however, the timing of when these amounts will be spent as compared to the prior year will fluctuate. Miscellaneous expenses, excluding the charges associated with the separation agreement, increased $187,000 over the first quarter of 2006. The increase was primarily due to an increase of $97,000 in professional fees as additional legal and accounting expenses were incurred to address new proxy disclosure requirements and new accounting pronouncements. Stock Repurchase Programs In October 2006, the Board of Directors approved the eleventh repurchase, 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 183,417 such shares. Such purchases will be made subject to market conditions in open market or block transactions. Management believes that the purchase of these shares will help increase long term shareholder value by increasing earnings per share and return on equity. The Company repurchased 130,349 shares under this plan during the first quarter. The Company had 3,832 shares remaining to be repurchased under this plan at March 31, 2007. In April 2007, the Board of Directors approved the twelfth repurchase, 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 175,628 such shares. The Company expects to begin buying its shares under this plan during the second quarter as they become available and upon completion of the current stock repurchase program. Home Federal Bancorp is a bank holding company registered with the Board of Governors of the Federal Reserve System (the "Federal Reserve"), which has been authorized by the Federal Reserve to engage in activities permissible for a financial holding company. HomeFederal Bank, its principal subsidiary, is an FDIC insured state chartered commercial bank. HomeFederal Bank was founded in 1908 and offers a wide range of consumer and commercial financial services through 19 branch offices in central and southeastern Indiana. Forward-Looking Statement This press release contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act 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 to these forward-looking statements or reflect events or circumstances 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, which disclosures are incorporated by reference herein. ***** MORE ***** HOME FEDERAL BANCORP CONSOLIDATED BALANCE SHEETS (in thousands, except share data) (unaudited)
March 31, December 31 2007 2006 --------- --------- Assets: Cash and due from banks $ 54,242 $ 106,063 Securities available for sale at fair value (amortized cost $58,943 and $57,421) 58,546 56,887 Securities held to maturity (fair value $1,627 and $1,628) 1,631 1,635 Loans held for sale (fair value $7,073 and $7,055) 6,939 6,925 Portfolio loans: Commercial loans 174,334 151,781 Commercial mortgage loans 227,496 227,433 Residential mortgage loans 160,745 166,003 Second & home equity loans 101,317 102,713 Other consumer loans 32,015 34,483 Unearned income (141) (153) --------- --------- Total portfolio loans 695,766 682,260 Allowance for loan losses (6,703) (6,598) --------- --------- Total portfolio loans, net 689,063 675,662 Bank premises and equipment 17,338 17,232 Accrued interest receivable 4,517 4,679 Goodwill 1,695 1,695 Other assets 31,139 33,689 --------- --------- TOTAL ASSETS $ 865,110 $ 904,467 ========= ========= Liabilities: Deposits: Demand $ 75,603 $ 72,804 Interest checking 92,199 129,025 Savings 44,768 41,710 Money market 155,986 165,605 Certificates 307,360 293,914 --------- --------- Retail deposits 675,916 703,058 --------- --------- Brokered deposits 19,325 22,357 Public fund certificates 440 1,744 --------- --------- Wholesale deposits 19,765 24,101 --------- --------- Total deposits 695,681 727,159 --------- --------- FHLB borrowings 66,014 68,667 Short term borrowings 985 -- Junior subordinated debt 15,464 15,464 Accrued taxes, interest and expense 3,304 4,462 Other liabilities 15,272 17,434 --------- --------- Total liabilities 796,720 833,186 --------- --------- Commitments and Contingencies 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: 3,512,569 and 3,610,218 19,490 17,081 Retained earnings, restricted 49,748 55,137 Accumulated other comprehensive income/(loss), net of taxes (848) (937) --------- --------- Total shareholders' equity 68,390 71,281 --------- --------- TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 865,110 $ 904,467 ========= =========
***** MORE ***** HOME FEDERAL BANCORP CONSOLIDATED STATEMENTS OF INCOME (in thousands, except share data) (unaudited) Three Months Ended March 31, ----------------------- Interest Income: 2007 2006 ---------- ---------- Short term investments $ 433 $ 249 Securities 644 1,164 Commercial loans 3,312 1,974 Commercial mortgage loans 3,880 3,312 Residential mortgage loans 2,713 2,684 Second and home equity loans 1,871 1,594 Other consumer loans 588 652 ---------- ---------- Total interest income 13,441 11,629 ---------- ---------- Interest Expense: Checking and savings accounts 517 209 Money market accounts 1,313 950 Certificates of deposit 3,439 2,452 ---------- ---------- Total interest on retail deposits 5,269 3,611 ---------- ---------- Brokered deposits 252 277 Public funds 7 101 ---------- ---------- Total interest on wholesale deposits 259 378 ---------- ---------- Total interest on deposits 5,528 3,989 ---------- ---------- FHLB borrowings 837 1,092 Other borrowings 2 -- Long term debt -- 221 Junior subordinated debt 271 -- ---------- ---------- Total interest expense 6,638 5,302 ---------- ---------- Net interest income 6,803 6,327 Provision for loan losses 280 117 ---------- ---------- Net interest income after provision for loan losses 6,523 6,210 ---------- ---------- Non Interest Income: Gain on sale of loans 310 355 Investment advisory services 437 355 Service fees on deposit accounts 1,455 1,114 Loan servicing income, net of impairments 143 435 Miscellaneous 562 506 ---------- ---------- Total non interest income 2,907 2,765 ---------- ---------- Non Interest Expenses: Compensation and employee benefits 4,118 3,905 Occupancy and equipment 978 950 Service bureau expense 391 379 Marketing 206 338 Miscellaneous 2,105 1,130 ---------- ---------- Total non interest expenses 7,798 6,702 ---------- ---------- Income before income taxes 1,632 2,273 Income tax provision 543 749 ---------- ---------- Net Income $ 1,089 $ 1,524 ========== ========== Basic earnings per common share $ 0.30 $ 0.40 Diluted earnings per common share $ 0.30 $ 0.39 Basic weighted average number of shares 3,583,844 3,802,855 Dilutive weighted average number of shares 3,681,854 3,888,330 Dividends per share $ 0.200 $ 0.188 ***** MORE ***** Supplemental Data: Three Months Ended (unaudited) March 31 -------------- 2007 2006 ----- ------ Weighted average interest rate earned on total interest-earning assets 6.80% 6.10% Weighted average cost of total interest-bearing liabilities 3.49% 2.87% Interest rate spread during period 3.31% 3.23% Net interest margin (net interest income divided by average interest-earning assets on annualized basis) 3.44% 3.32% Total interest income divided by average total assets (on annualized basis) 6.20% 5.54% Total interest expense divided by average total assets (on annualized basis) 3.11% 2.56% Net interest income divided by average total assets (on annualized basis) 3.14% 3.01% Return on assets (net income divided by average total assets on annualized basis) 0.50% 0.73% Return on equity (net income divided by average total equity on annualized basis) 6.17% 8.34% March 31 December 31 2007 2006 ----- ---- Book value per share outstanding $19.47 $19.74 Nonperforming Assets: Loans: Non-accrual $3,423 $2,852 Past due 90 days or more 676 459 Restructured 501 440 ---------------- Total nonperforming loans 4,600 3,751 Real estate owned, net 301 416 Other repossessed assets, net 1 20 ---------------- Total Nonperforming Assets $4,902 $4,187 Nonperforming assets divided by total assets 0.57% 0.46% Nonperforming loans divided by total loans 0.65% 0.54% Balance in Allowance for Loan Losses $6,703 $6,598 ***** END ***** -----END PRIVACY-ENHANCED MESSAGE-----