UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report: April 22, 2005
Home Federal Bancorp, Inc.
(Exact name of registrant as specified in its charter)
Federal 000-50901 20-0945587
(State or other jurisdiction (Commission File (I.R.S. Employer
of incorporation) Number) Identification No.)
500 12th Avenue South
Nampa, Idaho 83651
(Address of principal executive offices and zip code)
(208) 466-4634
(Registrant's telephone number, including area code)
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.
[ ] 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 22, 2005, Home Federal Bancorp, Inc. issued its earnings release for
the second quarter ended March 31, 2005. A copy of the press release is
attached hereto as Exhibit 99.1 and incorporated herein by reference.
Item 9.01 Financial Statements and Exhibits
-------------------------------------------
(c) Exhibits
99.1 Press release of Home Federal Bancorp, Inc. dated April 22, 2005
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, hereunto duly authorized.
HOME FEDERAL BANCORP, INC.
Date: April 22, 2005 By: /s/ Daniel L. Stevens
-------------------------------------
Daniel L. Stevens
President and Chief Executive Officer
Exhibit 99.1
Contact:
[HOME FEDERAL BANCORP, INC. LOGO] Home Federal Bancorp, Inc.
Daniel L. Stevens, Chairman,
President & CEO
Robert A. Schoelkoph, SVP, Treasurer
& CFO
208-466-4634
www.myhomefed.com
PRESS RELEASE - For Immediate Release
------------------------------------------------------------------------------
HOME FEDERAL BANCORP, INC. ANNOUNCES SECOND QUARTER EARNINGS
Nampa, ID (April 22, 2005) - Home Federal Bancorp, Inc. (the "Company")
(Nasdaq: HOME), the parent company of Home Federal Bank (the "Bank"), today
reported net income of $1.7 million, or $0.11 per share, for the quarter ended
March 31, 2005, compared to $915,000 for the same period a year ago. Results
for the quarter ended March 31, 2005 include a $386,000 pre-tax gain on the
sale of a former branch. Excluding the gain on the sale of the branch, the
Company had net income of $1.4 million, or $0.10 per share for the quarter.
For the first six months ended March 31, 2005 (the first six months of the
Company's fiscal year ending September 30, 2005), the Company's net income was
$1.7 million, or $0.12 per share, compared to $2.0 million for the same
six-month period a year ago. Excluding the gain on the sale of the branch and
the $1.8 million expense for establishing the Home Federal Foundation, Inc.
(the "Foundation"), the Company had net income of $2.6 million, or $0.18 per
share for the six months ended March 31, 2005.
On December 6, 2004, the Bank completed its mutual holding company
reorganization, at which time the Bank converted to stock form and the Company
was organized. As a result, comparisons to prior periods refer to the results
of the Bank as a federal mutual savings and loan association, and per share
data is not applicable. The per share data for the six months ended March 31,
2005 is being reported on shares outstanding from December 6, 2004 through
March 31, 2005.
The following table reconciles the Company's actual net income to pro forma
net income for the first three and six months ended March 31, 2005, exclusive
of the sale of the branch and the contribution to the Foundation and as
adjusted for Federal and state taxes (in thousands, except per share data):
Three Months Ended Six Months Ended
March 31, March 31,
------------------- -------------------
2005 2004 2005 2004
----- ------ ----- ------
Pro forma disclosure (unaudited)
Net income, as reported $1,674 $915 $1,748 $1,953
Sale of former branch (386) - (386) -
Contribution to Foundation - - 1,825 -
Federal and State income
tax benefit (expense) 151 - (561) -
------ ---- ------ ------
Pro forma net income $1,439 $915 $2,626 $1,953
====== ==== ====== ======
Earnings per share
Basic as reported $0.11 nm (1) $0.12 nm (1)
Pro forma basic $0.10 nm (1) $0.18 nm (1)
(1) Earnings per shares information is not meaningful. The Company did not
complete its minority stock offering until December 6, 2004.
Home Federal Bancorp, Inc.
April 22, 2005
Page 2 of 6
Revenues for the quarter ended March 31, 2005, which consisted of net interest
income before the provision for loan losses and non-interest income, increased
29% to $8.1 million for the quarter, compared to $6.3 million in the quarter
ended March 31, 2004. Revenues for the six months ended March 31, 2005
increased 19% to $15.3 million, compared to $12.9 million for the same period
of last year. Net interest income before the provision for loan losses
increased 28% to $5.5 million for the quarter ended March 31, 2005, compared
to $4.3 million for the same quarter of the prior year. For the six months
ended March 31, 2005, net interest income before the provision for loan losses
increased 24% to $10.5 million, compared to $8.5 million for the six months
ended March 31, 2004.
For the quarter ended March 31, 2005, net interest income after provision for
loan losses grew 32% to $5.3 million, compared to $4.0 million for the same
quarter a year ago. Net interest income after provision for loan losses for
the six months ended March 31, 2005 increased 29% to $10.2 million, compared
to $7.9 million for the same period of the prior year.
The Company's net interest margin decreased 20 basis points to 3.67% for the
second quarter, from 3.87% for the second quarter last year. The net interest
margin for the six months ended March 31, 2005 decreased 32 basis points to
3.59% from 3.91% a year earlier. During the first quarter, the Company
invested the majority of the proceeds from the Company's minority stock
offering in lower-yielding mortgage-backed securities which was the primary
reason for the decrease in the net interest margin for the quarter and the six
months ended March 31,2005.
Non-interest income increased 30% to $2.6 million for the quarter ended March
31, 2005, compared to $2.0 million for the same quarter a year ago. For the
six months ended March 31, 2005, non-interest income increased 14% to $4.9
million, compared to $4.3 million for the same period of the prior year. The
increase in non-interest income is primarily attributable to the $386,000 gain
on the sale of a branch.
Non-interest expense for the quarter ended March 31, 2005 increased 13% to
$5.2 million, compared to $4.6 million for the comparable period a year
earlier. The efficiency ratio, excluding the gain on sale of the branch,
improved to 67.01% for the quarter, compared to 72.83% for the second quarter
last year. Non-interest expense for the six months ended March 31, 2005
increased 32% to $12.2 million, compared to $9.2 million for the six months
ended March 31, 2004. The $3.0 million increase was primarily a result of the
$1.8 million contribution to the Foundation, additional employee compensation
and professional expenses related to being a publicly held company. Excluding
the contribution to the Foundation and the gain on sale of the branch, the
efficiency ratio was 69.71% for the first six months of fiscal year end 2005,
compared to 71.59% for the same period of last fiscal year. The efficiency
ratio indicates how much is spent on non-interest expenses as a percentage of
total revenue.
Total assets increased 30% to $643.4 million at March 31, 2005 compared to
$496.8 million a year earlier. Total assets at March 31, 2005 decreased
$100.5 million, or 14%, from $743.9 million at September 30, 2004. Assets at
September 30, 2004 included cash of $220.8 million that was received from
subscribers in the initial stock offering. These subscription funds were
subsequently refunded to subscribers in the quarter ended December 31, 2004 as
a result of a change in the appraisal of the Company, which increased the
valuation range of the offering. Following the refund to subscribers, the
Company conducted a resolicitation and received $153.1 million from
subscribers. The Company's stock offering, however, was oversubscribed and as
a result, $97.2 million of the $153.1 million of subscription funds received
were returned to investors.
Home Federal Bancorp, Inc.
April 22, 2005
Page 3 of 6
Deposits increased 13% to $373.1 million at March 31, 2005 compared to $329.5
million at March 31, 2004. In connection with the mutual holding company
reorganization and the minority stock offering, shareholders' equity increased
$55.1 million. In total, shareholders' equity increased $59.5 million to
$101.9 million at March 31, 2005 compared to $42.4 million a year earlier. The
Company's book value per share as of March 31, 2005 was $6.70 per share based
upon 15,208,750 outstanding shares.
Net loans at March 31, 2005, increased 9% to $419.1 million, compared to
$383.9 million at March 31, 2004. Single family lending represented 62% of
the Bank's loan portfolio at March 31, 2005, compared to 64% at March 31,
2004. Commercial real estate loans accounted for 28% of the loan portfolio at
March 31, 2005, compared to 27% of the portfolio at March 31, 2004.
Credit quality remains high, as non-performing assets were $803,000 or 0.12%
of total assets, at March 31, 2005, compared to $723,000, or 0.10% of total
assets, at September 30, 2004 and $566,000, or 0.11% of total assets, at March
31, 2004. The allowance for loan losses was $2.8 million, or 0.67% of gross
loans, including loans held for sale, at March 31, 2005 as compared to $2.6
million, or 0.66% of gross loans, at September 30, 2004 and $2.4 million, or
0.62% of gross loans, at March 31, 2004.
About the Company:
Home Federal Bancorp, Inc. is a savings and loan holding company headquartered
in Nampa, Idaho. It is the subsidiary of Home Federal MHC, a federally
chartered mutual holding company, and the parent company of Home Federal Bank,
a federal savings bank that was originally organized as a building and loan
association in 1920. The Company serves the Treasure Valley region of
southwestern Idaho, which includes Ada, Canyon, Elmore and Gem Counties,
through our 15 full-service banking offices and two mortgage loan centers.
For more information, visit the Company web site at www.myhomefed.com
Forward Looking Statements:
Statements in this report regarding future events, performance or results are
"forward-looking statements" within the meaning of the Private Securities
Litigation Reform Act of 1995 ("PSLRA") and are made pursuant to the safe
harbors of the PSLRA. Actual results could be materially different from those
expressed or implied by the forward-looking statements. Factors that could
cause results to differ include but are not limited to: general economic and
banking business conditions, competitive conditions between banks and non-bank
financial service providers, interest rate fluctuations, regulatory and
accounting changes, the value of mortgage servicing rights, risks related to
construction and development, commercial real estate and consumer lending and
other risks. Additional factors that could cause actual results to differ
materially are disclosed in Home Federal Bancorp, Inc.'s recent filings with
the Securities and Exchange Commission, including but not limited to Annual
Reports on Form 10-K, quarterly reports on Form 10-Q and current reports on
Form 8-K. Forward-looking statements are accurate only as of the date
released, and we do not undertake any responsibility to update or revise any
forward-looking statements to reflect subsequent events or circumstances.
Home Federal Bancorp, Inc.
April 22, 2005
Page 4 of 6
HOME FEDERAL BANCORP, INC. AND SUBSIDIARY
CONSOLIDATED BALANCE SHEETS March 31, September 30, March 31,
(In thousands, except share data) (Unaudited) 2005 2004 2004
---- ---- ----
ASSETS
Cash and amounts due from depository institutions $ 11,875 $215,663 $ 15,992
Securities available for sale, at fair value - - 6,404
Mortgage-backed securities available for sale,
at fair value 19,120 871 -
Mortgage-backed securities held to maturity,
at cost 155,030 96,595 55,033
Federal Home Loan Bank stock, at cost 8,112 7,317 6,681
Loan receivable, net of allowance for loan losses
of $2,827, $2,637, and $2,411 419,146 392,634 383,950
Loans held for sale 1,566 3,577 3,160
Accrued interest receivable 2,261 2,019 1,700
Property and equipment, net 10,992 10,967 10,101
Mortgage servicing rights, net 2,998 3,152 3,016
Bank owned life insurance 10,214 10,052 9,842
Real estate and other property owned 567 113 -
Other assets 1,549 907 894
-------- -------- --------
TOTAL ASSETS $643,430 $743,867 $496,773
======== ======== ========
LIABILITIES AND SHAREHOLDERS' EQUITY
LIABILITIES
Deposit accounts
Savings deposits $ 25,917 $ 25,453 $ 24,620
Demand deposits 166,639 153,409 149,299
Certificates of deposit 180,594 164,225 155,596
-------- -------- --------
Total deposit accounts 373,150 343,087 329,515
Advances by borrowers for taxes and insurance 3,710 3,716 3,458
Interest payable 1,607 1,420 1,191
Deferred compensation 2,796 2,463 1,844
Federal Home Loan Bank advances 154,717 122,797 113,074
Deferred income tax liability 1,317 2,264 2,116
Income taxes payable 207 - 553
Other liabilities 3,984 223,023 2,666
-------- -------- --------
Total liabilities 541,488 698,770 454,417
SHAREHOLDERS' EQUITY
Serial preferred stock, $.01 par value;
5,000,000 authorized issued and
outstanding, none - - -
Common stock, $.01 par value; 50,000,000
authorized, issued and outstanding:
Mar. 31, 2005 - 15,208,750 issued,
15,208,750 outstanding 152 - -
Sept. 30, 2004 - none issued and outstanding
Mar. 31, 2004 - none issued and outstanding
Additional paid-in capital 59,884 - -
Retained earnings 46,847 45,099 42,368
Unearned shares issued to employee stock
ownership plan (4,784) - -
Accumulated other comprehensive loss (157) (2) (12)
-------- -------- --------
Total shareholders' equity 101,942 45,097 42,356
-------- -------- --------
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $643,430 $743,867 $496,773
======== ======== ========
Home Federal Bancorp, Inc.
April 22, 2005
Page 5 of 6
HOME FEDERAL BANCORP, INC. AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF INCOME Three Months Ended Six Months Ended
(In thousands, except share data) (Unaudited) March 31, March 31,
------------------ ----------------
2005 2004 2005 2004
---- ---- ---- ----
Interest and dividend income:
Loan interest $6,315 $5,965 $12,384 $11,941
Investment interest 17 46 260 80
Mortgage-backed security interest 2,045 608 3,408 1,048
Federal Home Loan Bank dividends 30 66 30 148
------ ------ ------- -------
Total interest and dividend income 8,407 6,685 16,082 13,217
------ ------ ------- -------
Interest expense:
Deposits 1,465 1,207 2,890 2,383
Federal Home Loan Bank advances 1,448 1,146 2,709 2,299
------ ------ ------- -------
Total interest expense 2,913 2,353 5,599 4,682
------ ------ ------- -------
Net interest income 5,494 4,332 10,483 8,535
Provision for loan losses 236 300 295 600
------ ------ ------- -------
Net interest income after provision
for loan losses 5,258 4,032 10,188 7,935
------ ------ ------- -------
Non-interest income:
Service charges and fees 1,952 1,770 3,911 3,475
Gain on sale of loans 72 125 140 344
Increase in cash surrender value of
bank owned life insurance 87 124 162 249
Loan servicing fees 168 166 340 332
Mortgage servicing rights, net (58) (183) (154) (114)
Other 420 12 459 55
------ ------ ------- -------
Total noninterest income 2,641 2,014 4,858 4,341
------ ------ ------- -------
Non-interest expense:
Compensation and benefits 3,096 2,692 6,149 5,340
Occupancy and equipment 682 674 1,401 1,375
Data processing 376 357 819 724
Advertising 310 304 650 515
Postage and supplies 188 214 398 408
Professional services 203 67 422 180
Insurance and taxes 84 111 150 209
Charitable contribution to Foundation - - 1,825 -
Other 254 203 436 467
------ ------ ------- -------
Total noninterest expense 5,193 4,622 12,250 9,218
------ ------ ------- -------
Income before income taxes 2,706 1,424 2,796 3,058
Income tax expense 1,032 509 1,048 1,105
------ ------ ------- -------
NET INCOME $1,674 $ 915 $ 1,748 $ 1,953
====== ====== ======= =======
Earnings per common share:
Basic $0.11 nm (1) $0.12 nm (1)
Diluted $0.11 nm (1) $0.12 nm (1)
Weighted average number of shares outstanding:
Basic 14,720,524 nm (1) 14,718,364 nm (1)
Diluted 14,720,524 nm (1) 14,718,364 nm (1)
(1) Shares outstanding and earnings per share information are not meaningful. The Company did not complete
its minority stock offering until December 6, 2004 and did not have any outstanding shares prior to that
date.
Home Federal Bancorp, Inc.
April 22, 2005
Page 6 of 6
AT OR FOR THE AT OR FOR THE
HOME FEDERAL BANCORP, INC. AND SUBSIDIARY SIX MONTHS YEAR
ADDITIONAL FINANCIAL INFORMATION ENDED ENDED
(Dollars in thousands, except share data) (Unaudited) MARCH 31, 2005 SEPT. 30, 2004
-------------- --------------
FINANCIAL CONDITION DATA
Average interest-earning assets $583,760 $465,384
Average interest-bearing liabilities 491,359 409,591
Net average earning assets 92,401 55,793
Average interest-earning assets to average
interest-bearing liabilities 118.81% 113.62%
Shareholders' equity to assets 15.84% 6.06%
ASSET QUALITY
Allowance for loan losses 2,827 2,637
Non-performing loans 236 610
Non-performing assets 803 723
Allowance for loan losses to non-performing loans 1,197.88% 432.30%
Allowance for loan losses to net loans 0.67% 0.66%
Non-performing loans to total net loans 0.06% 0.15%
Non-performing assets to total assets 0.12% 0.10%
AT OR FOR THE THREE AT OR FOR THE SIX
MONTHS ENDED MONTHS ENDED
MARCH 31, MARCH 31,
------------------ ------------------
2005 2004 2005 2004
------ ------ ------ ------
SELECTED PERFORMANCE RATIOS
Return on average assets (1) 1.05% 0.76% 0.56% 0.83%
Return on average equity (1) 6.56% nm (4) 4.28% nm (4)
Net interest margin (1) 3.67% 3.87% 3.59% 3.91%
Efficiency ratio (2) 67.01% 72.83% 69.71% 71.59%
PER SHARE DATA
Basic earnings per share $0.11 nm (4) $0.12 nm (4)
Diluted earnings per share $0.11 nm (4) $0.12 nm (4)
Book value per share 6.70 nm (4) 6.70 nm (4)
Cash dividends declared per share - nm (4) - nm (4)
Average number of shares outstanding:
Basic (3) 14,720,524 nm (4) 14,718,364 nm (4)
Diluted (3) 14,720,524 nm (4) 14,718,364 nm (4)
(1) Amounts are annualized.
(2) Non-interest expense divided by net interest income plus non-interest income. Amounts calculated
exclude the effect of the $1.8 million contribution to the Foundation and the $386,000 gain on sale
of a branch.
(3) Amounts calculated exclude Employee Stock Ownership Plan shares not committed to be released.
(4) Shares outstanding and earnings per share information are not meaningful. The Company did not
complete its minority stock offering until December 6, 2004.