EX-99 2 l15293aexv99.txt EXHIBIT 99 EXHIBIT 99 PRESS RELEASE FOR IMMEDIATE RELEASE ------------- --------------------- Contact: Preston Bair, Chief Financial Officer Telephone: (740) 622-0444 HOME LOAN FINANCIAL CORPORATION REPORTS EARNINGS FOR THE QUARTER AND YEAR ENDED JUNE 30, 2005 Coshocton, Ohio, July 27, 2005 - Home Loan Financial Corporation (Nasdaq:HLFC), the parent company of The Home Loan Savings Bank, today announced net income of $194,000, or $.12 basic and diluted earnings per share for the quarter ended June 30, 2005 compared to net income of $431,000, or $.27 basic and diluted earnings per share for the quarter ended June 30, 2004, a decrease of $237,000, or 55.1%. The decrease in earnings for the quarter ended June 30, 2005 compared with June 30, 2004, was primarily attributable to decreases in net interest income of $148,000 and noninterest income of $71,000 and increases in the provision for loan loss of $94,000 and noninterest expense of $90,000, partially offset by a decrease in income tax expense of $166,000. The decrease in net interest income was due to a decrease in the net interest margin partially offset by an increase in average earning assets. The decrease in noninterest income was primarily due to a nonrecurring gain on sales of securities available for sale of $115,000 in 2004, partially offset in 2005 by an increase in gains on the sale of loans of $32,000 and an increase of $15,000 in the value of bank owned life insurance. The increase in the provision for loan loss was primarily due to a decline in the value of rental real estate which resulted in the Company establishing specific reserves on certain nonperforming loans combined with an increase in the level of nonperforming loans due to general economic conditions in HLFC's market area. The increase in noninterest expense was primarily due to increases in salaries and benefits and other costs associated with the Mount Vernon branch, which opened in January 2005. Net income for the year ended June 30, 2005 was $1,290,000, or $0.80 basic and $0.79 diluted earnings per share, compared to $1,785,000 for the year ended June 30, 2004, or $1.13 basic and $1.11 diluted earnings per share, a decrease of $495,000, or 27.7%. The decrease in earnings for the year ended June 30, 2005 compared with June 30, 2004 was primarily attributable to a decrease in net interest income of $204,000 and increases in the provision for loan loss of $310,000 and noninterest expense of $261,000, partially offset by a decrease of $284,000 in income tax expense. The decrease in net interest income was primarily due to a decrease in net interest margin, partially offset by an increase in average earning assets. The increase in noninterest expense was primarily due to increases in salaries and benefits and other costs associated with the Mount Vernon branch, which opened in January 2005. The increase in the provision for loan losses was previously discussed. The net interest margin for the three months ended June 30, 2005 was 3.75%. Return on average equity and return on average assets for the three months ended June 30, 2005 were 3.35% and 0.48%, respectively. The book value of HLFC's common stock was $13.51 per share as of June 30, 2005 compared to $13.27 per share as of June 30, 2004, an increase of $.24, or 1.8%. Total assets at June 30, 2005 were $162.1 million compared to June 30, 2004 assets of $160.0 million, an increase of $2.1 million, or 1.3%. The increase in total assets was primarily due to increases in cash and cash equivalents of $2.0 million and premises and equipment of $848,000, partially offset by a decrease in mortgage-backed securities of $1.6 million. Total liabilities increased $1.4 million, or 1.0%, compared to June 30, 2004. The increase is primarily a result of a $4.8 million increase in total deposits which was partially offset by a $3.6 million decrease in FHLB advances. Total equity at June 30, 2005 was $23.0 million compared to $22.3 million at June 30, 2004. Home Loan Financial Corporation and The Home Loan Savings Bank are headquartered at 401 Main Street, Coshocton, Ohio 43812. The Home Loan Savings Bank has two offices located in Coshocton, Ohio, a branch in West Lafayette, Ohio and a branch in Mt. Vernon, Ohio. HOME LOAN FINANCIAL CORPORATION CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION

CONSOLIDATED STATEMENTS OF INCOME

KEY OPERATING RATIOS

* Net interest margin has been calculated on a fully taxed equivalent basis.

HOME LOAN FINANCIAL CORP 8-K