From the President
I am pleased to report that 2013 was a very successful year for Home Financial Bancorp. Our results are evidence that economic and regulatory challenges are not barriers to success. Earnings were the highest in corporate history. Asset quality continued a positive trend of improvement and stock repurchases benefited shareholders and the Company.
As the complexities of the banking industry intensify each year, the hard work and
dedication shown by our entire team continues to impress me. From directors to part-
Net income for fiscal 2013 was $549,000; marking a third consecutive year of record
earnings. Core earnings got a boost from gains realized on investment sales and
a reduction in loan loss provisions. Investment gains helped make up for diminishing
interest income. Due to the prolonged period of ultra-
Improvements in asset quality are reflected in less non-
After completing a ten percent stock buyback during the year, Home Financial’s equity
to assets ratio remained above 11percent at fiscal year-
Rules intended to address problems caused by very large financial companies are a significant threat to the future of traditional community banks. Community banks did not engage in widespread subprime lending. They did not engage in securitization of subprime residential mortgages. Nor did they use derivatives to engage in risky speculation. Simply put, community banks did not contribute to the financial crisis. This fact is widely acknowledged. However, massive and complicated rules and regulations written in response to the financial crisis fuel merger and acquisition activity by increasing the competitive advantage large banks have over smaller banks.
Recent congressional committee testimony of Thomas Boyle, vice chairman of State Bank of Countryside (Countryside, Illinois), describes the present situation for traditional community banks:
We strongly believe that our communities cannot reach their full potential without
the local presence of a bank – a bank that understands the financial and credit needs
of its citizens, business, and government. However, I am deeply concerned that this
model will collapse under the massive weight of new rules and regulations…. Banks
are working every day to make credit and financial services available. Those efforts,
however, are made more difficult by regulatory costs and second-
Costs of complying with an endless flow of new rules and the strong push for product
standardization will increase the competitive advantage of large banks to the detriment
of community banks. Dodd-
Our local business history demonstrates a century-
Thank you for your continued support of Home Financial Bancorp and Our Community Bank.
Kurt D. Rosenberger
President and Chief Executive Officer
Home Financial Bancorp’s common stock trades publicly
and is quoted under the symbol "HWEN.PK" as a pink sheet stock.
Stock Transfer Agent and Registrar
Shareholders requiring a change of name, address or ownership of stock, as well as information about shareholder records, lost or stolen certificates, dividend checks, and dividend direct deposit should contact:
Registrar and Transfer Company
10 Commerce Drive
Cranford, NJ 07016-