Home Financial Bancorp Announces Third Quarter Results

SPENCER, Ind.–(BUSINESS WIRE)–Home Financial Bancorp (“Company”) (OTCPink: “HWEN”), an Indiana
corporation which is the holding company for Our Community Bank,
(“Bank”) based in Spencer, Indiana, announces results for the third
quarter and nine months ended March 31, 2019.

Third Quarter Highlights:

• Net interest income decreased 6% or $40,000;
• Non-interest income increased 11% or $12,000;
• Non-interest expenses decreased 2% or $15,000;
• Net income rose 5%, from $100,000 to $105,000.

Nine Month Highlights:

• Total shareholders’ equity totaled $8.8 million or 12% of assets;
• Non-performing loans decreased 24%, or $212,000;
• Net interest income declined 5%, or $96,000;
• Net income decreased 19%, from $247,000 to $201,000.

For the quarter ended March 31, 2019, the
Company reported net income of $105,000 or $.09 basic and diluted
earnings per share. For the same period last year, the Company reported
net income of $100,000 or $.09 per share. Net income was higher,
compared to third quarter 2018 results, due to an increase in
non-interest income, slightly lower non-interest expenses, and lower
income tax expense.

Total interest income was higher by $17,000 or 2%, while interest
expense increased $57,000 or 47% during the quarter ended March 31,
2019, compared to the quarter ended March 31, 2018. As a result, net
interest income decreased $40,000, or 6%, for the three months ended
March 31, 2019, compared to the same period in 2018.

Loan loss provisions for third quarter 2019 totaled $9,000. Loan loss
provisions were $15,000 for the same period a year earlier. A regular
assessment of loan loss allowance adequacy indicated that these
provisions were necessary to maintain an appropriate allowance level.
Changes in volume, composition and quality of the loan portfolio, as
well as actual loan loss experience, will influence the need for future
loss provisions.

Third quarter 2019 non-interest income totaled $130,000 compared to
$118,000 a year earlier. Service charges on deposit accounts increased
$17,000 or 40%. Non-interest expense for the quarter ended March 31,
2019 totaled $672,000, compared to $687,000 for the same period a year
earlier.

For the nine-month period ended March 31, 2019,
the Company reported net income of $201,000 or $.17 earnings per share.
Net income was $247,000 or $.21 earnings per share for the year-earlier
period. Net income declined due to higher interest expense on deposits.

Total interest income increased $90,000, or 4%. Interest expense rose
$186,000 or 53%. Consequently, net interest income before provisions for
loan losses decreased $96,000 or 5%, compared to the same period in 2018.

For the nine-month period ended March 31, 2019, loan loss provisions
were $39,000, compared to $40,000 recorded for the nine-month period
ended March 31, 2018. Loan loss provisions reflect management’s
assessment of various risk factors including, but not limited to, the
level and trend of loan delinquencies and losses.

Total non-interest income increased $36,000, or 11%. Accounting for most
of the change, service charges on deposit accounts increased $46,000, or
36%, compared to the year-earlier period. Total non-interest expense
increased $39,000, or 2%, compared to the same nine-months during the
prior year.

As of March 31, 2019, total assets were
$73.0 million and $73.2 million at June 30, 2018; the end of the prior
fiscal year. Cash and interest-bearing deposits totaled $6.7 million at
March 31, 2019. Investment securities available for sale decreased $1.0
million, or 10%, to $9.0 million at March 31, 2019. Total loans
increased to $52.9 million, from $52.3 million at June 30, 2018.

Non-performing loans decreased 24% and totaled $667,000, or 1.3% of
total loans at March 31, 2019. At June 30, 2018, non-performing loans
were $879,000, or 1.7% of total loans. Total non-performing assets were
$754,000, or 1.0% of total assets at March 31, 2019, compared to
$932,000, or 1.3% of total assets at June 30, 2018. Non-performing
assets included $87,000 in Other Real Estate Owned (“OREO”) and other
repossessed properties at March 31, 2019, compared to $53,000 nine
months earlier.

The balance of the loan loss allowance increased 5% to $507,000 or 1.0%
of total loans at March 31, 2019, compared to $485,000, or 0.9% of total
loans at June 30, 2018. Management considered the level of loan loss
allowances at March 31, 2019 to be adequate to cover estimated losses
inherent in the loan portfolio at that date.

Total deposits increased 8% to $54.0 million as of March 31, 2019, from
$50.1 million nine months earlier. Total borrowings decreased $4.5
million, or 32%, to $9.5 million.

Shareholders’ equity was $8.8 million, or 12.0% of total assets at March
31, 2019, compared to $8.7 million or 11.9% of total assets at June 30,
2018. Factors impacting shareholder equity during the first three
quarters of fiscal 2019 included net income, three quarterly cash
dividends totaling $.12 per share, and a decrease in accumulated other
comprehensive loss from $91,000 at June 30, 2018, to $12,000 at March
31, 2019. At March 31, 2019, the Company’s book value per share was
$7.59 based on 1,155,594 shares outstanding. The last reported price per
share as of March 31, 2019 was $7.29.

Home Financial Bancorp and Our Community Bank, an FDIC-insured, Indiana
stock commercial bank, operate from headquarters in Spencer, Indiana,
and a branch office in Cloverdale, Indiana. Additional information
concerning Home Financial Bancorp and its subsidiaries is available at www.hfbancorp.com
or www.ocbconnect.com.

*Based on 1,155,594 shares at March 31, 2019 and 1,166,002 at June 30,
2018.

Contacts

Kurt D. Rosenberger
Phone: (812) 829-2095