President’s Message

To Our Shareholders

Earnings for the first quarter were $617,000, representing an unusual quarter from an earnings perspective.  The quarter includes a tax exempt gain of $240,000 for a Bank Owned Life Insurance Policy.  Core Earnings continue to show improvement as compared to the prior 2016 quarter. 

Asset quality continues to be our primary focus.  Loans past due 90 days or more were $232,621 or .17% to Total loans outstanding which represents an improvement over March 2016.  Our allowance for loan loss was $2,618,000 or 1.88% to Total loans outstanding representing in excess of eleven times our non-performing loans.  As of a result of these ratios, we chose not to set aside a provision for loan loss for this quarter. 

Non-interest expense for the quarter was $917,000 representing our abilities to continue to find methods to control our operating expenses.  Expenses for the quarter was also less than last year’s quarter and is on budget for 2017.

Net interest income was $1,348,000 showing an improvement over March 2016.  Loans outstanding closed the quarter at $139,142,000 which is a substantial increase when compared to loans outstanding at December 31, 2016.  Loan volume is critical to the improvement of net interest income and with the control of non-interest expense should result in continued improvement in our net income. 

Shareholders’ equity increased  $1,284,000 when compared to March 2016, generating a book value of $22.63 per share on 809,618 shares outstanding.   

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. 

Thank you for your investment in Home City Financial Corporation. As a reminder, please return your Proxy votes for the Annual Meeting scheduled April 26, 2017.

Sincerely,

J. William Stapleton, President & CEO

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