Home Loan Financial : HLFC Reports Earnings for the Quarter Ended December 31, 2016

PRESS RELEASE FOR IMMEDIATE RELEASE

Contact: Breann Miller, Chief Financial Officer Telephone: [phone]

HOME LOAN FINANCIAL CORPORATION REPORTS EARNINGS FOR THE QUARTER ENDED DECEMBER 31, 2016

Coshocton, Ohio, January 18, 2017 - Home Loan Financial Corporation (OTCBB: HLFN), the parent company of The Home Loan Savings Bank, today announced net income of $739,000, or $0.53 basic and diluted earnings per share, for the quarter ended December 31, 2016 compared to net income of $767,000 or $0.55 basic and diluted earnings per share, for the quarter ended December 31, 2015, a decrease of $29,000, or 3.7%.

This decrease in earnings for the quarter ended December 31, 2016 compared

with December 31, 2015 was primarily attributable to a decrease in net interest income of

$32,000 and an increase in noninterest expense of $39,000, partially offset by a decrease in the provision for loan losses of $24,000, an increase in noninterest income of $3,000, and a decrease of federal income tax expense of $15,000.

Total assets at December 31, 2016 were $205.0 million compared to June 30, 2016 assets of $200.3 million, an increase of $4.8 million or 2.4%. Total deposits at December 31, 2016 were $156.1 million compared to June 30, 2016 deposits of $150.0 million, an increase of $6.1 million or 4.1%. Total equity at December 31, 2016 was

$25.6 million compared to $25.4 million at June 30, 2016, an increase of $223,000.

Home Loan Financial Corporation and The Home Loan Savings Bank are headquartered at 413 Main Street, Coshocton, Ohio 43812. The Home Loan Savings Bank has two offices located in Coshocton, Ohio, a branch in West Lafayette, Ohio and a branch in Mount Vernon, Ohio.

HOME LOAN FINANCIAL CORPORATION CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION

ASSETS	December 31, 2016	June 30, 2016
Cash and cash equivalents	$ 12,894,883	$ 11,651,109
Interest-bearing time deposits	850,000	1,349,293
Securities available for sale	3,495,250	3,510,638
Federal Home Loan Bank stock	2,513,400	2,513,400
Loans held for sale	222,151
Loans, net	176,515,848	172,252,324
Premises and equipment	2,603,200	2,695,294
Accrued interest receivable	565,657	512,500
Bank owned life insurance	4,734,501	4,664,001
Other assets	856,263	889,661
Total assets	$205,029,002	$200,260,371

LIABILITIES
Deposits	$ 156,104,040	$ 149,962,748
Federal Home Loan Bank advances	22,175,609	23,555,632
Accrued interest payable	194,371	177,341
Accrued expenses and other liabilities	906,927	1,139,994
Total liabilities	179,380,947	174,835,715

SHAREHOLDERS' EQUITY

Preferred stock, no par value, 500,000 shares authorized,

none outstanding -- --

Common stock, no par value, 9,500,000 shares authorized,

2,248,250 shares issued -- --

Additional paid-in capital 15,011,531 14,994,322

Retained earnings 21,613,538 21,388,847

Treasury stock, at cost - 847,745 and 846,995 shares (10,974,218) (10,964,566)

at December 31, 2016 and June 30, 2016

Accumulated other comprehensive income (2,796) 6,053 Total shareholders' equity 25,648,055 25,424,656 Total liabilities and shareholders' equity $205,029,002 $200,260,371

CONSOLIDATED STATEMENTS OF INCOME

Three Months Ended		Six Months Ended
December 31,		December 31,
2016 2015		2016 2015
Total interest income	$2,317,912 $2,292,035		$4,626,410 $4,554,026
Total interest expense	262,760 205,338		520,738 394,719
Net interest income	2,055,152 2,086,697		4,105,672 4,159,307
Provision for loan losses	6,000 30,000		41,000 55,000
Net interest income after
provision for loan losses	2,049,152	2,056,697	4,064,672	4,104,307
Total noninterest income	284,763	282,041	611,239	575,261
Total noninterest expense	1,214,701	1,175,703	2,426,340	2,288,393
Income before income
tax expense	1,119,214	1,163,035	2,249,571	2,391,175
Income tax expense	380,500	395,600	764,800	813,300
Net income	$ 738,714	$ 767,435	$1,484,771	$1,577,875

Basic earnings per share	$	.53	$	.55	$	1.06	$	1.13
Diluted earnings per share	$	.53	$	.55	$	1.06	$	1.13