Contact: Home Federal Bancorp, Inc. Len E. Williams, President & CEO Eric S. Nadeau, EVP, Treasurer & CFO 208-466-4634 www.myhomefed.com/ir

 

·	Net interest income decreased $1.0 million compared to the linked quarter ended December 31, 2012, and decreased $2.3 million compared to the year-ago period, due to a decline in the yield on purchased loans during the quarter ended March 31, 2013, and a lower average balance of loans;

·	A reverse provision for loan losses of ($227,000) was recorded during the quarter ended March 31, 2013, of which ($225,000) was for noncovered loans.

·

Noninterest income during the quarter ended March 31, 2013, included impairment of the FDIC indemnification asset of $2.0 million, which was a result of a reduction in estimated future losses on covered loans. The impairment of the FDIC indemnification asset was $2.8 million in the linked quarter and $3.3 million in the year-ago quarter;

·	Noninterest expense decreased by $863,000 during the quarter ended March 31, 2013, compared to the year-ago quarter, and decreased $865,000 compared to the linked quarter, with expense reductions occurring in nearly all categories of noninterest expense;

·	As previously announced, the Bank closed four branches in Oregon on February 28, 2013;

·	The Bank opened a construction loan production office in Salt Lake City, Utah in March 2013;

·	Total assets increased $2.2 million during the quarter ended March 31, 2013, compared to December 31, 2012, but decreased $57.0 million since March 31, 2012;

·	Noncovered nonperforming assets declined $495,000 to $13.4 million at March 31, 2013, compared to December 31, 2012. Total nonperforming assets decreased $866,000 during the quarter to $23.9 million at March 31, 2013, compared to December 31, 2012; and

·	The Company declared and paid its regular quarterly dividend of $0.06 per share. The total cash paid on dividends was $827,000 during the quarter.

 

		Three Months Ended
(in thousands)		March 31, 2013				December 31, 2012				March 31, 2012
Total noninterest income, as reported		$	498			$	(333	)		$	(1,107	)
Less: FDIC indemnification impairment related to current period provision for loan losses			(41	)			(627	)			(819	)
Impairment of FDIC indemnification asset			(1,994	)			(2,814	)			(3,343	)
Total noninterest income, excluding FDIC indemnification items		$	2,533			$	3,108			$	3,055

		March 31, 2013												December 31, 2012												Quarter Change
(in thousands)		Covered Assets				Noncovered Assets				Total				Covered Assets				Noncovered Assets				Total				Covered Assets				Noncovered Assets
Real estate construction		$	233			$	772			$	1,005			$	248			$	811			$	1,059			$	(15	)		$	(39	)
Commercial and multifamily real estate			4,036				4,471				8,507				4,108				4,552				8,660				(72	)			(81	)
One-to-four family residential			324				2,929				3,253				338				3,240				3,578				(14	)			(311	)
Other			134				943				1,077				95				994				1,089				39				(51	)
Total nonperforming loans			4,727				9,115				13,842				4,789				9,597				14,386				(62	)			(482	)
Real estate owned and other repossessed assets			5,802				4,262				10,064				6,111				4,275				10,386				(309	)			(13	)
Total nonperforming assets		$	10, 529			$	13,377			$	23,906			$	10,900			$	13,872			$	24,772			$	(371	)		$	(495	)

 

 

 

 

 

 

 

CONSOLIDATED BALANCE SHEETS		March 31,				December 31,				March 31,
(In thousands, except share data) (Unaudited)		2013				2012				2012
ASSETS
Cash and equivalents		$	120,528			$	115,529			$	140,517
Investments available-for-sale, at fair value			433,822				420,505				412,669
FHLB stock, at cost			17,243				17,401				17,717
Loans and leases receivable, net of allowance for loan and lease losses of $12,573, $12,528 and $13,739, respectively			396,232				409,846				435,713
Accrued interest receivable			2,970				2,776				2,997
Property and equipment, net			27,767				29,057				30,830
Bank owned life insurance			16,054				15,938				15,571
Real estate owned and other repossessed assets			10,064				10,386				15,965
FDIC indemnification receivable, net			9,416				10,846				20,160
Core deposit intangible			2,399				2,523				2,935
Other assets			14,288				13,813				12,724
TOTAL ASSETS		$	1,050,783			$	1,048,620			$	1,107,798
LIABILITIES AND STOCKHOLDERS’ EQUITY
LIABILITIES
Deposit accounts:
Noninterest-bearing demand		$	158,231			$	142,207			$	129,950
Interest-bearing demand			249,338				248,836				251,632
Money market			166,335				167,202				184,158
Savings			87,435				83,401				81,663
Certificates			193,852				209,242				251,329
Total deposit accounts			855,191				850,888				898,732
Advances by borrowers for taxes and insurance			868				490				832
Accrued interest payable			144				167				197
Deferred compensation			6,242				6,149				5,933
Repurchase agreements			4,791				4,775				4,676
Other liabilities			4,890				6,366				5,594
Total liabilities			872,126				868,835				915,964
STOCKHOLDERS’ EQUITY
Serial preferred stock, $.01 par value; 10,000,000 authorized; issued and outstanding: none			--				--				--
Common stock, $.01 par value; 90,000,000 authorized; issued and outstanding:			145				145				157
Mar. 31, 2013 - 17,514,997 issued; 14,492,288 outstanding
Dec. 31, 2012 - 17,512,197 issued; 14,453,399 outstanding
Mar. 31, 2012 - 17,512,197 issued; 15,702,640 outstanding
Additional paid-in capital			132,303				131,934				143,485
Retained earnings			45,971				46,337				49,324
Unearned shares issued to employee stock ownership plan			(6,634	)			(6,823	)			(7,392	)
Accumulated other comprehensive income			6,872				8,192				6,260
Total stockholders’ equity			178,657				179,785				191,834
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY		$	1,050,783			$	1,048,620			$	1,107,798

HOME FEDERAL BANCORP, INC. AND SUBSIDIARY

CONSOLIDATED STATEMENTS OF OPERATIONS

(In thousands, except share and per share data) (Unaudited)

 

 

HOME FEDERAL BANCORP, INC. AND SUBSIDIARY
ADDITIONAL FINANCIAL INFORMATION
(Dollars in thousands, except share and per share data) (Unaudited)
		At or For the Three Months Ended
		March 31,  2013				December 31, 2012				September 30, 2012				June 30, 2012				March 31, 2012
SELECTED PERFORMANCE RATIOS
Return on average assets (1)			0.18	%			0.08	%			0.12	%			0.21	%			0.25	%
Return on average equity (1)			1.03				0.48				0.68				1.16				1.44
Net interest margin (1)			4.16				4.55				4.74				4.17				4.92
PER SHARE DATA
Diluted earnings per share		$	0.03			$	0.02			$	0.02			$	0.04			$	0.05
Tangible book value per outstanding share (2)			12.16				12.26				12.45				12.22				12.03
Cash dividends declared per share			0.06				0.18				0.06				0.055				0.055
Average number of diluted shares outstanding (3) for earnings per share			13,714,084				13,689,742				14,117,621				14,638,663				14,771,849
ASSET QUALITY- NONCOVERED (4)
Allowance for loan losses		$	8,412			$	8,611			$	8,614			$	8,905			$	9,292
Nonperforming loans			9,115				9,597				14,447				16,321				17,172
Nonperforming assets			13,377				13,872				20,746				22,998				23,039
Provision for loan losses			(225	)			--				--				--				--
Allowance for loan losses to gross loans			2.58	%			2.59	%			2.57	%			2.67	%			2.88	%
Nonperforming loans to gross loans			2.79				2.87				4.32				4.89				5.31
Nonperforming assets to total assets			1.22				1.46				2.18				2.41				2.37
TOTAL COVERED ASSETS (5)		$	88,425			$	95,556			$	107,093			$	120,329			$	137,594
FINANCIAL CONDITION DATA
Average interest-earning assets		$	966,269			$	973,113			$	973,664			$	989,698			$	1,006,057
Average interest-bearing liabilities			706,561				717,519				728,310				749,879				775,880
Net average earning assets			259,708				255,594				245,354				239,819				230,177
Average interest-earning assets to average interest-bearing liabilities			136.76	%			135.62	%			133.69	%			131.98	%			129.67	%
Stockholders’ equity to total assets			17.00				17.14				17.32				17.60				17.32
STATEMENT OF OPERATIONS DATA
Interest income		$	10,867			$	11,908			$	12,437			$	11,313			$	13,491
Interest expense			812				844				908				1,007				1,123
Net interest income			10,055				11,064				11,529				10,306				12,368
Provision for loan losses (6)			(227	)			(653	)			105				(434	)			(783	)
Noninterest income			498				(333	)			(351	)			1,136				(1,107	)
Noninterest expense			10,097				10,962				10,486				11,106				10,960
Income before taxes			683				422				587				770				1,084
Income tax provision			222				203				265				211				382
Net income		$	461			$	219			$	322			$	559			$	702

(1)	Amounts are annualized.

(2)

Tangible book value, which excludes core deposit and other intangible assets is a non-GAAP (Generally Accepted Accounting Principles) financial measure which is included in this press release to facilitate the comparison by investors of  the Company with its peers. Tangible book value is equal to book value less core deposit and other intangibles, net of related deferred tax liabilities.

(3)	Amounts calculated exclude ESOP shares not committed to be released and unvested restricted shares.

(4)	Excludes loans and REO covered by a loss sharing agreement with the FDIC.

(5)	Loans and REO covered by loss share agreements with the FDIC.

(6)	Provision for loan losses does not consider impact of indemnification for losses on covered loans under the loss sharing agreements with the FDIC, which is reported in noninterest income as “FDIC indemnification recovery.”