Hometown Bancorp, Inc (HTWC.OB), the mid-tier holding company for Walden Federal Savings and Loan Association, announced earnings of $248,000 for the three months ended September 30, 2007. Compared to earnings of $209,000 for the same period in 2006, this represents a significant increase. Additionally, for the nine month period that ended September 30, 2007, the Company reported net income of $633,000, compared to $418,000 for the same period in 2006.
The balance sheets have also specified that net interest income increased 11.1% to $1.5 million, from $1.4 million the same period last year. This increase of net interest income resulted primarily from an $11.9 million value increase in the average balance of a continuous net interest-earning asset debenture.
Loan losses increased by $47,000 and $97,000 for the three and nine months ended September 30, 2007. The increase in loss is the result of commercial business and mortgage loan portfolios going into default.
Non-interest income was $418,000 for the quarter ended September 30, 2007 compared to $321,000 for the quarter ended September 30, 2006. Non-interest income was $1.3 million for the nine months ended for 2007 compared to $862,000 for the same period in 2006.
Non-interest expense was $1.5 million for the quarter ended September 30, 2007 compared to $1.4 million for the quarter ended September 30, 2006. Non-interest expense was $4.4 million for the nine months ended September 30, 2007 compared to $4.0 million for the same period in 2006. The primary reasons for the increases in operating costs during the respective periods were the expenses associated with the expansion of the branch offices and the related compensation expenses for increased staffing.
Total assets grew $12.5 million, or 10.6%, to $129.9 million at September 30, 2007 from $117.4 million at December 31, 2006. Loans net, increased $18.9 million, or 19.3%, from December 31, 2006 to $116.7 million at September 30, 2007. The primary loan growth during 2007 was increased volume of $7.7 million in residential mortgages, $5.0 million in commercial business loans and $3.2 million in non-residential mortgage loans. Cash and cash equivalents increased by $2.6 million, while securities decreased by $9.2 million. A $9.0 million security was called on the last day of the quarter and $7.0 million of these funds were used to pay off borrowings and the balance went to interest-earning deposits.
Total deposits were $109.7 million at September 30, 2007 compared to $104.5 million at December 31, 2006, an increase of $5.2 million or 4.9%. The increase was predominately in certificates of deposit of $11.1 million, offset by decreases in money market accounts of $5.1 million, mostly due to certificates of deposit promotions to fund loan growth and customer’s preference for higher deposit rates.
Total stockholders’ equity increased $9.7 million from $8.5 million at December 31, 2006 to $18.3 million at September 30, 2007. The increase in equity is related to the Company completing its stock offering on June 28, 2007, during which the Company sold 1,071,225 shares of common stock to subscribers at a price of $10.00 per share. The Company also issued 1,309,275 shares of its common stock to Hometown Bancorp MHC. The net offering proceeds after offering and ESOP expenses were $9.1 million, of which $6.0 million was provided to the Bank. Equity also increased by earnings of $633,000 for the nine months ended September 30, 2007.
Let us hear your thoughts below:
