President’s Message

To Our Shareholders

Home City Financial Corporation is pleased to report another successful year for earnings.  Annual earnings for 2017 were $2,169,000 generating a Return on Assets of 1.32% and Return on Equity of 11.45%.  This is our ninth consecutive year of increasing annual earnings.

Shares of Home City Financial Corporation closed the year at the market price of $28.80.  Book value per share was $23.83 based on weighted average Shares Outstanding of 812,611.  As a result of our earnings performance, annual 2017 cash dividends were $.87 per share compared to $.52 per share in 2016. 

Loans Outstanding ended the year in excess of $144,000,000, which represents our fifth consecutive year with increasing Loan volumes.  Asset Quality continues to be our primary focus, Loans Past Due 90 Days or more were $297,135 representing .21% of Total Loans Outstanding. 

Non Interest Expense continues to compare very favorably to our peers.  We continue to find methods to control our operating expenses.

Provision for Income Taxes increased an additional $337,000 for 2017 reflecting a one time expense associated with our Deferred Tax Assets. In December 2017, the President of the United States signed new tax legislation which will have a positive impact on our business. Our new 2018 tax rate will be 21% as compared to 33%.

We continue to stay focused on our Community (market that we serve), Shareholder Values (ownership) and Staff.  Each group has different agendas, but the ultimate goal of all is a Safe, Sound, and Well Managed Bank. 

In summary, another record earnings year for your Bank, good asset quality, good cost controls, good net interest margin, increased Shareholder cash dividends and increased market value per share.

Thank you for your investment in Home City Financial Corporation.

Sincerely,

J. William Stapleton, President & CEO

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