Hemlock Federal Financial Reports 54% Increase In First Quarter Earnings Per Share

Apr 23, 2001, 01:00 ET from Hemlock Federal Financial Corporation

    CHICAGO, April 23 /PRNewswire Interactive News Release/ -- Hemlock Federal
 Financial Corporation (the 'Company') (Nasdaq: HMLK) the holding company for
 Hemlock Federal Bank for Savings (the 'Bank'), today announced earnings for
 the first quarter ended March 31, 2001.
     Net income was $492,000, or $.54 per share for the first quarter ended
 March 31, 2001, compared to net income of $472,000, or $.35 per share, for the
 quarter ended March 31, 2000. This represents a 54% increase in earnings per
 share for the Corporation.
     Net interest income for the quarter ended March 31, 2001 totaled
 $1.95 million, compared to $1.77 million for the same period one year ago.
 During the three months ended March 31, 2001, total interest income increased
 by $879,000 compared to the same period one year ago, primarily as a result of
 an increase in loans receivable.  Total interest expense increased by
 $704,000, from $2.03 million to $2.73 million, due to increases in both
 deposits and FHLB advances, primarily as a result of the acquisition of
 Midwest Savings Bank, which took place in June of 2000.
     Non-interest income increased to $357,000 for the three months ended
 March 31, 2001, from $155,000 for the same period one year ago. The $202,000
 increase is attributable to increases in ATM fee income and income on checking
 accounts, primarily due to the Midwest acquisition,  fee income generated
 through increased loan originations, as well as a $29,000 gain on the sale of
 securities in the quarter ended March 31, 2001.
     Non-interest expense increased to $1.57 million for the three months ended
 March 31, 2001, from $1.19 million for the same period one year ago. This
 increase of $380,000 is due primarily to increases in compensation, building,
 and other expenses associated with the two additional branches obtained
 through the Midwest acquisition, which took place in June of 2000.
     Total assets decreased to $270.15 million as of March 31, 2001, from
 $276.66 million as of December 31, 2000, a decrease in total assets of
 $6.51 million.   Loans receivable increased to $159.71 million as of March 31,
 2001 from $154.82 million as of December 31, 2000, due primarily to an
 increase in single-family loan originations generated through the bank's
 commissioned loan officer program.  Cash and cash equivalents decreased from
 $18.50 million as of December 31, 2000 to $5.91 million as of March 31, 2001.
 The cash was used in part to pay down Federal Home Loan Bank advances, which
 decreased $8.60 million, from $74.70 million as of December 31, 2000, to
 $66.10 million as of March 31, 2001. Total deposits increased to
 $180.93 million as of March 31, 2001 from $179.42 million as of December 31,
 2000, an increase of $1.51 million.
     Shareholders' equity increased to $19.79 million as of March 31, 2001 from
 $19.10 million as of December 31, 2000.  The increase of $690,000 is primarily
 due to net income earned during the quarter, as well as an increase in the
 value of the available for sale portfolio.
     "We are pleased with our continued progress in enhancing shareholder
 value," stated President Michael Stevens.  "We begin the year 2001 with 54%
 growth in earnings per share and a 21% increase in return on equity as
 compared to the levels for the same quarter one year ago, while loan
 originations and deposit growth remain strong."
 
 
     Hemlock Federal Financial Corporation
 
                                                      At            At
                                                   March 31,    December 31,
     Selected Financial Condition Data               2001          2000
                                                       (In Thousands)
 
     Total Assets                                   $270,148     $276,663
     Cash & cash equivalents                           5,908       18,504
     Loans Receivable, net                           159,689      154,821
     Securities available-for-sale                    40,783       37,298
     Securities held-to-maturity                      52,852       54,903
     Deposits                                        180,934      179,424
     Borrowings                                       66,100       74,700
     Total Shareholders' Equity                       19,789       19,103
 
 
                                                         Three Months Ended
                                                             March 31,
     Selected Operations Data                           2001           2000
                                                          (In Thousands)
 
     Interest income                                   $4,679         $3,800
     Interest expense                                   2,734          2,030
     Net interest income                                1,945          1,770
 
     Provision for loan losses                              0              0
     Net interest income after
      provision for loan losses                         1,945          1,770
     Total non-interest income                            357            155
     Total non-interest expense                         1,571          1,192
     Income before taxes                                  731            733
     Income Taxes                                         239            261
     Net Income                                           492           $472
 
 
 
                                                        Three Months Ended
                                                             March 31,
     Selected Financial Ratios (Annualized)             2001           2000
 
     Performance Ratios:
     Return on average assets                           0.73%          0.84%
     Return on average equity                          10.12%          8.34%
     Equity to total assets
      at end of period:                                 7.33%          8.74%
     Interest rate spread
      at end of period:                                 2.74%          2.90%
     Net interest margin                                3.00%          3.30%
     Average interest-earning assets to
      average interest bearing liabilities            104.81%        110.10%
     Efficiency Ratio                                  68.25%         61.92%
     Noninterest expense
      to average assets                                 2.32%          2.12%
 
     Asset Quality Ratios:
     Non-performing assets to
      total assets at end of period                     0.08%          0.10%
     Allowance for loan losses
      to non-performing loans                         440.45%        373.24%
     Allowance for loan losses
      to total loans receivable, net                    0.61%          0.67%
 
     Per Share Information:
     Book value per share outstanding:                 $19.05         $16.31
     Earning per share:                                  0.54           0.35
     Dividend declared                                   0.13           0.11
 
 
                     MAKE YOUR OPINION COUNT -  Click Here
                http://tbutton.prnewswire.com/prn/11690X23616595
 
 

SOURCE Hemlock Federal Financial Corporation
    CHICAGO, April 23 /PRNewswire Interactive News Release/ -- Hemlock Federal
 Financial Corporation (the 'Company') (Nasdaq: HMLK) the holding company for
 Hemlock Federal Bank for Savings (the 'Bank'), today announced earnings for
 the first quarter ended March 31, 2001.
     Net income was $492,000, or $.54 per share for the first quarter ended
 March 31, 2001, compared to net income of $472,000, or $.35 per share, for the
 quarter ended March 31, 2000. This represents a 54% increase in earnings per
 share for the Corporation.
     Net interest income for the quarter ended March 31, 2001 totaled
 $1.95 million, compared to $1.77 million for the same period one year ago.
 During the three months ended March 31, 2001, total interest income increased
 by $879,000 compared to the same period one year ago, primarily as a result of
 an increase in loans receivable.  Total interest expense increased by
 $704,000, from $2.03 million to $2.73 million, due to increases in both
 deposits and FHLB advances, primarily as a result of the acquisition of
 Midwest Savings Bank, which took place in June of 2000.
     Non-interest income increased to $357,000 for the three months ended
 March 31, 2001, from $155,000 for the same period one year ago. The $202,000
 increase is attributable to increases in ATM fee income and income on checking
 accounts, primarily due to the Midwest acquisition,  fee income generated
 through increased loan originations, as well as a $29,000 gain on the sale of
 securities in the quarter ended March 31, 2001.
     Non-interest expense increased to $1.57 million for the three months ended
 March 31, 2001, from $1.19 million for the same period one year ago. This
 increase of $380,000 is due primarily to increases in compensation, building,
 and other expenses associated with the two additional branches obtained
 through the Midwest acquisition, which took place in June of 2000.
     Total assets decreased to $270.15 million as of March 31, 2001, from
 $276.66 million as of December 31, 2000, a decrease in total assets of
 $6.51 million.   Loans receivable increased to $159.71 million as of March 31,
 2001 from $154.82 million as of December 31, 2000, due primarily to an
 increase in single-family loan originations generated through the bank's
 commissioned loan officer program.  Cash and cash equivalents decreased from
 $18.50 million as of December 31, 2000 to $5.91 million as of March 31, 2001.
 The cash was used in part to pay down Federal Home Loan Bank advances, which
 decreased $8.60 million, from $74.70 million as of December 31, 2000, to
 $66.10 million as of March 31, 2001. Total deposits increased to
 $180.93 million as of March 31, 2001 from $179.42 million as of December 31,
 2000, an increase of $1.51 million.
     Shareholders' equity increased to $19.79 million as of March 31, 2001 from
 $19.10 million as of December 31, 2000.  The increase of $690,000 is primarily
 due to net income earned during the quarter, as well as an increase in the
 value of the available for sale portfolio.
     "We are pleased with our continued progress in enhancing shareholder
 value," stated President Michael Stevens.  "We begin the year 2001 with 54%
 growth in earnings per share and a 21% increase in return on equity as
 compared to the levels for the same quarter one year ago, while loan
 originations and deposit growth remain strong."
 
 
     Hemlock Federal Financial Corporation
 
                                                      At            At
                                                   March 31,    December 31,
     Selected Financial Condition Data               2001          2000
                                                       (In Thousands)
 
     Total Assets                                   $270,148     $276,663
     Cash & cash equivalents                           5,908       18,504
     Loans Receivable, net                           159,689      154,821
     Securities available-for-sale                    40,783       37,298
     Securities held-to-maturity                      52,852       54,903
     Deposits                                        180,934      179,424
     Borrowings                                       66,100       74,700
     Total Shareholders' Equity                       19,789       19,103
 
 
                                                         Three Months Ended
                                                             March 31,
     Selected Operations Data                           2001           2000
                                                          (In Thousands)
 
     Interest income                                   $4,679         $3,800
     Interest expense                                   2,734          2,030
     Net interest income                                1,945          1,770
 
     Provision for loan losses                              0              0
     Net interest income after
      provision for loan losses                         1,945          1,770
     Total non-interest income                            357            155
     Total non-interest expense                         1,571          1,192
     Income before taxes                                  731            733
     Income Taxes                                         239            261
     Net Income                                           492           $472
 
 
 
                                                        Three Months Ended
                                                             March 31,
     Selected Financial Ratios (Annualized)             2001           2000
 
     Performance Ratios:
     Return on average assets                           0.73%          0.84%
     Return on average equity                          10.12%          8.34%
     Equity to total assets
      at end of period:                                 7.33%          8.74%
     Interest rate spread
      at end of period:                                 2.74%          2.90%
     Net interest margin                                3.00%          3.30%
     Average interest-earning assets to
      average interest bearing liabilities            104.81%        110.10%
     Efficiency Ratio                                  68.25%         61.92%
     Noninterest expense
      to average assets                                 2.32%          2.12%
 
     Asset Quality Ratios:
     Non-performing assets to
      total assets at end of period                     0.08%          0.10%
     Allowance for loan losses
      to non-performing loans                         440.45%        373.24%
     Allowance for loan losses
      to total loans receivable, net                    0.61%          0.67%
 
     Per Share Information:
     Book value per share outstanding:                 $19.05         $16.31
     Earning per share:                                  0.54           0.35
     Dividend declared                                   0.13           0.11
 
 
                     MAKE YOUR OPINION COUNT -  Click Here
                http://tbutton.prnewswire.com/prn/11690X23616595
 
 SOURCE  Hemlock Federal Financial Corporation