EX-99.1 2 l11657aexv99w1.txt EXHIBIT 99.1 NEWS RELEASE FOR IMMEDIATE RELEASE EXHIBIT 99.1 HOME CITY FINANCIAL CORPORATION REPORTS FOURTH QUARTER AND ANNUAL EARNINGS Springfield, Ohio, January 25, 2005 - Home City Financial Corporation (Nasdaq SmallCap Market: HCFC) reported net income of $182,000, or $.23 basic earnings per share, for the fourth quarter ended December 31, 2004, compared to $151,000, or $.20 basic earnings per share, for the quarter ended December 31, 2003. Diluted earnings per share for the quarters were $.22 and $.19, respectively. HCFC's net income for the year ended December 31, 2004, was $682,000, or $.86 basic earnings per share, compared to $649,000, or $.87 basic earnings per share, for the year 2003. Diluted earnings per share for the years 2004 and 2003 were $.84 and $.85, respectively. Net interest income decreased by $115,000 for the year, reflecting decreased interest rate spreads. The yield on interest-earning assets decreased 52 basis points from 6.50% for the year 2003 to 5.98% for the year 2004, while the cost of interest-bearing liabilities decreased 31 basis points from 3.55% down to 3.24% during the year for a decrease in spread of 21 basis points. Noninterest income decreased by $15,000 mainly due to less gain on the sale of securities and other income. The provision for loan losses of $200,000 was $300,000 less than the amount provided last year reflecting management's thorough analysis of our loan delinquency status and related economic factors. Noninterest expense increased $94,000 reflecting mainly personnel related decisions. The federal income tax provision increased $43,000 due mainly to increased income and the composition of taxable and non-taxable factors. Assets totaled $156.2 million at December 31, 2004, an increase of $4.4 million, or 2.9%, from $151.8 million at December 31, 2003. Net loans receivable increased $3.6 million, or 2.8%, during the year 2004 and totaled $130.1 million at December 31, 2004. Available-for-sale securities increased $1.3 million, or 26.4%, funded mainly by increases in deposits. Deposits totaled $107.2 million at December 31, 2004, an increase of $3.3 million, or 3.2%, from $103.9 million at December 31, 2003. Our tiered prime statement savings account balances grew $3.0 million during 2004 up to $42.7 million reflecting the popularity of this flexible, rate mobile product. HCFC paid a dividend of $.11 per share on December 15, 2004, to holders of record at December 8, 2004. Year-to-date dividends of $.44 per share have been paid resulting in a dividend yield of 2.86%. HCFC's stock price stood at $15.40 per share at December 31, 2004, trading at slightly over its net book value per share of $15.24 attained at year end. Information on transactions in HCFC's shares is quoted on The Nasdaq SmallCap Market under the symbol "HCFC". Contact: J. William Stapleton, President, CEO and COO (937) 390-0470 Home City Financial Corporation

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