[November 12, 2019]

Home Financial Bancorp Announces First Quarter Results

Home Financial Bancorp ("Company") (OTC Symbol "HWEN"), an Indiana corporation which is the holding company for Our Community Bank, ("Bank") based in Spencer, Indiana, announces unaudited results for the first quarter ended September 30, 2019.

First Quarter Highlights:

• Non-performing loans decreased 44% to $215,000, or 0.4% of total assets;
• Non-interest income rose $39,000 or 37%;
• Non-interest expense declined $29,000 or 4%;
• Net income increased $77,000, to $97,000.

For the quarter ended September 30, 2019, the Company reported net income of $97,000 or $.08 basic and diluted earnings per share. Net income totaled $20,000 or $.02 basic and diluted earnings per share for the quarter ended September 30, 2018. Higher interest income on loans, an increase in non-interest income and an overall decrease in non-interest expense resulted in improved net income compared to the same period a year earlier.

Net interest income increased $17,000 or 3%, to $667,000 for the three months ended September 30, 2019. Total interest income rose $31,000 or 4%, while interest expense increased $14,000, or 8%.

Loan loss provisions were $15,000 for the quarter-ended September 30, 2019, and $20,000 for the same period a year earlier. A regular assessment of loan loss allowance adequacy indicated that these provisions were required to maintain an appropriate allowance level. Changes in volume, composition and quality of the loan portfolio, as well as actual loan loss experience, will influence the need for future loan loss provisions.

Non-interest income increased $39,000 or 37%, compared to the year-earlier period. Much of this change is associated with a net loss on sale of repossessed property of $12,000 recognized during fiscal first quarter 2019. No similar loss on sale of repossessed property was recognized in the most recent quarter. Also contributing to the overall increase in non-interest income, ATM service fees increased $12,000 or 24% and service charge income on deposit accounts increased $8,000 or 15%.

Non-interest expense decreased $29,000 or 4%. Salaries and employee benefits increased $18,000 or 6%, and computer processing fees increased $17,000 or 21% compared to the same period last year. Offsetting these increases, legal and professional fees decreased $30,000 or 28%. Also contributing to the overall decrease in non-interest expense, net occupancy expense, advertising and assorted other expense categories declined compared to a year earlier.

At September 30, 2019, total assets were $72.8 million, an increase of $760,000 from $72.0 million at June 30, 2019. During fiscal first quarter 2020, cash and interest-bearing deposits increased $415,000, and investment securities decreased $507,000. Total loans increased $864,000 or 2%, to $54.1 million, from $53.2 million at June 30, 2019.

Loans delinquent 90 days or more decreased 44% to $215,000 or 0.4% of total loans at September 30, 2019. Three months earlier, non-performing loans were $386,000 or 0.7% of total loans. Non-performing assets, which includes non-performing loans, decreased 18% to $407,000, or 0.6% of total assets, at September 30, 2019. Non-performing assets totaled $495,000, or 0.7% of assets, at June 30, 2019. Non-performing assets included $192,000 in Other Real Estate Owned ("OREO") and other repossessed properties at September 30, 2019, compared to $109,000 three months earlier.

The allowance for loan losses was $505,000 at September 30, 2019, compared to $504,000 at June 30, 2019. Loan loss allowances were 0.93% of total loans at September 30, 2019, and 0.95% at June 30, 2019. Periodic provisions to loan loss allowances reflect management's view of risk in the Bank's entire portfolio due to a number of dynamic factors, which include, but are not limited to, current economic conditions and loan delinquency trends. Management considered the level of loan loss allowances at September 30, 2019 to be adequate to cover probable incurred losses inherent in the loan portfolio at that date.

Total deposits were $52.7 million as of September 30, 2019 and $53.1 million as of June 30, 2019. Total borrowings increased $1.0 million or 11%, to $10.5 million for quarter-ended September 30, 2019.

Shareholders' equity was $9.0 million or 12.3% of total assets at September 30, 2019. Factors affecting shareholders' equity during the quarter included net income, quarterly cash dividends of $.04 per share, and a $16,000 net increase in the market value of securities available for sale. Based on 1,155,594 shares outstanding, the Company's book value per share was $7.76 at September 30, 2019.

Home Financial Bancorp and Our Community Bank, an FDIC-insured, state stock commercial bank, operate from headquarters in Spencer, Indiana, and a branch office in Cloverdale, Indiana. Additional information concerning Home Financial Bancorp and its subsidiaries is available at www.hfbancorp.com or www.ocbconnect.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20191112005710/en/

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