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: July 21, 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 July 21, 2005, Home Federal Bancorp, Inc. issued its earnings release for
the third quarter ended June 30, 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 July 21, 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: July 21, 2005 By: /s/ Daniel L. Stevens
-------------------------------------
Daniel L. Stevens
President and Chief Executive Officer
Exhibit 99.1
Contact:
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 THIRD QUARTER EARNINGS
Nampa, ID (July 21, 2005) - Home Federal Bancorp, Inc. (the "Company")
(Nasdaq:HOME), the parent company of Home Federal Bank (the "Bank"), today
reported net income of $1.8 million, or $0.12 per share, for the quarter ended
June 30, 2005, compared to $1.3 million for the same period a year ago. Net
income for the nine months ended June 30, 2005 was $3.5 million, or $0.24 per
share, compared to $3.3 million for the same nine-month period a year ago.
Results for the nine months ended June 30, 2005 include a $386,000 pre-tax
gain on the sale of a former branch and a $1.8 million pre-tax expense for
establishing the Home Federal Foundation, Inc. (the "Foundation"). Excluding
the gain on the sale of the branch and the expense for establishing the
Foundation, the Company had net income of $4.4 million, or $0.30 per share,
for the nine months ended June 30, 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
resultsof the Bank as a federal mutual savings and loan association, and per
share data is not applicable. The per share data for the nine months ended
June 30, 2005 is being reported on shares outstanding from December 6, 2004
through June 30, 2005. In connection with the reorganization, the Company
received $53.6 million in net proceeds from a minority stock offering.
The following table reconciles the Company's actual net income to pro forma
net income for the nine months ended June 30, 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):
Nine Months Ended
June 30,
------------------------
2005 2004
------------------------
Pro forma disclosure (unaudited)
Net income, as reported $3,546 $3,271
Sale of branch (386) -
Contribution to Foundation 1,825 -
Federal and state income tax
expense (561) -
-------- --------
Pro forma net income $4,424 $3,271
======== ========
Earnings per share
Basic as reported $0.24 nm (1)
Pro forma basic $0.30 nm (1)
(1) Earnings per share information is not meaningful. The Company did not
complete its minority stock offering until December 6, 2004.
Home Federal Bancorp, Inc.
July 21, 2005
Page 2 of 7
Revenues for the quarter ended June 30, 2005, which consisted of net interest
income before the provision for loan losses and noninterest income, increased
17% to $8.3 million for the quarter, compared to $7.1 million for the quarter
ended June 30, 2004. Revenues for the nine months ended June 30, 2005
increased 18% to $23.6 million, compared to $20.0 million for the same period
of last year. Net interest income before the provision for loan losses
increased 24% to $5.6 million for the quarter ended June 30, 2005, compared to
$4.5 million for the same quarter of the prior year. For the nine months
ended June 30, 2005, net interest income before the provision for loan losses
increased 24% to $16.1 million, compared to $13.0 million for the nine months
ended June 30, 2004.
For the quarter ended June 30, 2005, net interest income after provision for
loan losses grew 31% to $5.5 million, compared to $4.2 million for the same
quarter a year ago. Net interest income after provision for loan losses for
the nine months ended June 30, 2005 increased 29% to $15.6 million, compared
to $12.1 million for the same period of the prior year.
The Company's net interest margin decreased 21 basis points to 3.64% for the
quarter ended June 30, 2005, from 3.85% for the same quarter last year. The
net interest margin for the nine months ended June 30, 2005 decreased 28 basis
points to 3.61% from 3.89% for the same period a year earlier. During the
quarter ended December 31, 2004, 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 nine months ended June 30,
2005.
Noninterest income increased 4% to $2.7 million for the quarter ended June 30,
2005, compared to $2.6 million for the same quarter a year ago. Other
noninterest income includes the receipt of $460,000 in net life insurance
proceeds as a result of the death of a former Bank officer. The Company also
wrote down the value of its mortgage servicing rights by $200,000. For the
nine months ended June 30, 2005, noninterest income increased 9% to $7.6
million, compared to $7.0 million for the same period of the prior year. The
increase in other noninterest income is primarily attributable to the $386,000
gain on the sale of a branch and the receipt of $460,000 in life insurance
proceeds which is offset by a $300,000 impairment of the Company's mortgage
servicing rights.
Noninterest expense for the quarter ended June 30, 2005 increased 17% to $5.5
million, compared to $4.7 million for the comparable period a year earlier.
Included in other noninterest expense was a $210,000 death benefit paid to the
family of a former Bank officer, pursuant to a non-qualified retirement plan.
The efficiency ratio was relatively unchanged at 66.76% for the third quarter,
compared to 66.41% for the same quarter last year. Noninterest expense for
the nine months ended June 30, 2005 increased 28% to $17.8 million, compared
to $13.9 million for the nine months ended June 30, 2004. The $3.9 million
increase was primarily a result of the $1.8 million contribution to the
Foundation, the $210,000 death benefit paid to the family of a former Bank
officer, additional employee compensation and professional expenses related to
being a publicly held company. The efficiency ratio was 75.25% for the first
nine months of fiscal year end 2005, compared to 69.75% for the same period of
last fiscal year. Excluding the non-recurring contribution to the Foundation
and the gain on sale of the branch, the efficiency ratio was 68.66% for the
first nine months of fiscal year end 2005. The efficiency ratio indicates how
much is spent on non-interest expenses as a percentage of total revenue.
Home Federal Bancorp, Inc.
July 21, 2005
Page 3 of 7
Total assets increased 31% to $679.2 million at June 30, 2005 compared to
$519.3 million a year earlier. Total assets at June 30, 2005 decreased $64.7
million, or 9%, from $743.9 million at September 30, 2004. Assets at
September 30, 2004 included $220.8 million that was received from subscribers
in the Company's minority 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 minority stock offering. Following the refund to
subscribers, the Company conducted a resolicitation and received $153.1
million from subscribers. The Company's minority stock offering, however, was
oversubscribed and as a result, $97.2 million of the $153.1 million of
subscription funds received by the Company were returned to investors in the
quarter ended December 31, 2004.
Net loans at June 30, 2005, increased 12% to $433.9 million, compared to
$386.8 million at June 30, 2004. Single family lending represented 61% of the
Bank's loan portfolio at June 30, 2005, compared to 63% at June 30, 2004.
Commercial real estate loans accounted for 29% of the Bank's loan portfolio at
June 30, 2005, compared to 27% at June 30, 2004.
Credit quality remains high, as non-performing assets were $1.1 million, or
0.16% of total assets, at June 30, 2005, compared to $723,000, or 0.10% of
total assets, at September 30, 2004 and $676,000, or 0.13% of total assets, at
June 30, 2004. The allowance for loan losses was $2.9 million, or 0.66% of
gross loans, including loans held for sale, at June 30, 2005 as compared to
$2.6 million, or 0.66% of gross loans, at September 30, 2004 and $2.7 million,
or 0.69% of gross loans, at June 30, 2004.
Deposits increased 14% to $381.1 million at June 30, 2005 compared to $333.5
million at June 30, 2004. In connection with the mutual holding company
reorganization and the minority stock offering, stockholders' equity increased
$55.1 million. In total, stockholders' equity increased $60.0 million to
$103.7 million at June 30, 2005 compared to $43.7 million a year earlier. The
Company's book value per share as of June 30, 2005 was $6.82 per share based
upon 15,208,750 outstanding shares of common stock.
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 15 full-service banking offices and two mortgage loan centers. For
more information, visit the Company's 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,
Home Federal Bancorp, Inc.
July 21, 2005
Page 4 of 7
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.
July 21, 2005
Page 5 of 7
HOME FEDERAL BANCORP, INC. AND SUBSIDIARY
CONSOLIDATED BALANCE SHEETS June 30, September 30, June 30,
(In thousands, except share data) (Unaudited) 2005 2004 2004
--------- ------------- ----------
ASSETS
Cash and amounts due from depository
institutions $ 21,577 $215,663 $ 13,694
Mortgage-backed securities available
for sale, at fair value 17,910 871 893
Mortgage-backed securities held to
maturity, at cost 164,337 96,595 82,653
Federal Home Loan Bank stock, at cost 9,591 7,317 7,117
Loan receivable, net of allowance for
loan losses of $2,903, $2,637, and
$2,706 433,892 392,634 386,837
Loans held for sale 3,521 3,577 1,813
Accrued interest receivable 2,337 2,019 1,797
Property and equipment, net 11,226 10,967 10,346
Mortgage servicing rights, net 2,752 3,152 3,303
Bank owned life insurance 10,009 10,052 9,947
Real estate and other property owned 604 113 114
Other assets 1,467 907 737
-------- -------- --------
TOTAL ASSETS $679,223 $743,867 $519,251
======== ======== ========
LIABILITIES AND STOCKHOLDERS' EQUITY
LIABILITIES
Deposit accounts
Demand deposits $167,684 $153,409 $149,956
Savings deposits 25,375 25,453 25,104
Certificates of deposit 188,052 164,225 158,462
-------- -------- --------
Total deposit accounts 381,111 343,087 333,522
Advances by borrowers for taxes and
insurance 2,053 3,716 1,840
Interest payable 1,648 1,420 1,283
Deferred compensation 2,867 2,463 1,976
Federal Home Loan Bank advances 181,750 122,797 131,756
Deferred income tax liability 1,548 2,264 2,120
Other liabilities 4,505 223,023 3,078
-------- -------- --------
Total liabilities 575,482 698,770 475,575
STOCKHOLDERS' 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:
June 30, 2005 15,208,750 issued
and outstanding 152 - -
September 30, 2004 none issued
and outstanding
June 30, 2004 none issued and
outstanding
Additional paid-in capital 59,909 - -
Retained earnings 48,359 45,099 43,686
Unearned shares issued to employee
stock ownership plan (4,635) - -
Accumulated other comprehensive loss (44) (2) (10)
--------
Total stockholders' equity 103,741 45,097 43,676
-------- -------- --------
TOTAL LIABILITIES AND STOCKHOLDERS'
EQUITY $679,223 $743,867 $519,251
======== ======== ========
Home Federal Bancorp, Inc.
July 21, 2005
Page 6 of 7
HOME FEDERAL BANCORP, INC. AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF INCOME Three Months Ended Nine Months Ended
(In thousands, except share data) (Unaudited) June 30, June 30,
------------------- --------------------
2005 2004 2005 2004
------- ------ -------- --------
Interest and dividend income:
Loan interest $6,666 $5,948 $19,050 $17,889
Investment interest 11 10 271 79
Mortgage-backed security interest 2,071 859 5,479 1,918
Federal Home Loan Bank dividends - 67 30 215
------- ------- ------- -------
Total interest and dividend income 8,748 6,884 24,830 20,101
------- ------- ------- -------
Interest expense:
Deposits 1,602 1,233 4,492 3,617
Federal Home Loan Bank advances 1,531 1,158 4,240 3,456
------- ------- ------- -------
Total interest expense 3,133 2,391 8,732 7,073
------- ------- ------- -------
Net interest income 5,615 4,493 16,098 13,028
Provision for loan losses 161 300 456 900
------- ------- ------- -------
Net interest income after provision
for loan losses 5,454 4,193 15,642 12,128
------- ------- ------- -------
Noninterest income:
Service charges and fees 2,146 2,030 6,057 5,504
Gain on sale of loans 62 77 202 421
Increase in cash surrender value of bank
owned life insurance 91 122 253 371
Loan servicing fees 166 168 506 500
Mortgage servicing rights, net (245) 287 (399) 173
Other 472 (68) 931 (12)
------- ------- ------- -------
Total noninterest income 2,692 2,616 7,550 6,957
------- ------- ------- -------
Noninterest expense:
Compensation and benefits 3,195 2,753 9,344 8,094
Occupancy and equipment 690 686 2,091 2,062
Data processing 427 374 1,246 1,098
Advertising 239 309 889 824
Postage and supplies 186 193 584 60
Professional services 276 73 698 253
Insurance and taxes 91 117 241 325
Charitable contribution to Foundation - - 1,825 -
Other 442 216 878 682
------- ------- ------- -------
Total noninterest expense 5,546 4,721 17,796 13,939
------- ------- ------- -------
Income before income taxes 2,600 2,088 5,396 5,146
Income tax expense 802 770 1,850 1,875
------ ------ ------- -------
NET INCOME $1,798 $1,318 $ 3,546 $ 3,271
====== ====== ======= =======
Earnings per common share:
Basic $0.12 nm (1) $0.24 nm (1)
Diluted $0.12 nm (1) $0.24 nm (1)
Weighted average number of shares outstanding:
Basic 14,735,474 nm (1) 14,725,923 nm (1)
Diluted 14,735,474 nm (1) 14,725,923 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.
July 21, 2005
Page 7 of 7
HOME FEDERAL BANCORP, INC. AND SUBSIDIARY At Or For The Nine At Or For The
ADDITIONAL FINANCIAL INFORMATION Months Ended Year Ended
(Dollars in thousands, except share data) (Unaudited) June 30, 2005 Sept. 30, 2004
-------------------- --------------------
FINANCIAL CONDITION DATA
Average interest-earning assets $595,097 $465,384
Average interest-bearing liabilities 494,649 409,591
Net average earning assets 100,448 55,793
Average interest-earning assets to average
interest-bearing liabilities 120.31% 113.62%
Stockholders' equity to assets 15.27% 6.06%
ASSET QUALITY
Allowance for loan losses 2,903 2,637
Non-performing loans 449 610
Non-performing assets 1,053 723
Allowance for loan losses to non-
performing loans 646.55% 432.30%
Allowance for loan losses to gross loans
and loans held for sale 0.66% 0.66%
Non-performing loans to gross loans
And loans held for sale 0.10% 0.15%
Non-performing assets to total assets 0.16% 0.10%
At Or For The Three Months At Or For The Nine Months
Ended June 30, Ended June 30,
-------------------------- -------------------------
2005 2004 2005 2004
------- ------ ------ ------
SELECTED PERFORMANCE RATIOS
Return on average assets (1) 1.10% 1.05% 0.75% 0.91%
Return on average equity (1) 6.92% nm (4) 5.30% nm (4)
Net interest margin (1) 3.64% 3.85% 3.61% 3.89%
Efficiency ratio 66.76% 66.41% 75.25% 69.75%
Efficiency ratio, excluding
non-recurring items (2) 66.76% 66.41% 68.66% 69.75%
PER SHARE DATA
Basic earnings per share $0.12 nm (4) $0.24 nm (4)
Diluted earnings per share $0.12 nm (4) $0.24 nm (4)
Book value per share 6.82 nm (4) 6.82 nm (4)
Cash dividends declared per share 0.05 nm (4) 0.05 nm (4)
Average number of shares
outstanding:
Basic (3) 14,735,474 nm (4) 14,725,923 nm (4)
Diluted (3) 14,735,474 nm (4) 14,725,923 nm (4)
(1) Amounts are annualized.
(2) Noninterest expense divided by net interest income plus noninterest income. The pro forma
efficiency ratio for the nine months ended June 30, 2005 excludes 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.