Profile: Hometown Bancorp Inc (HTWC.PK)
11 Dec 2013
Hometown Bancorp, Inc. (Hometown Bancorp) is a federally chartered mid-tier stock holding company for Walden Federal Savings and Loan Association (Walden Federal or the Bank). Hometown Bancorp’s primary business activity is the ownership of Walden Federal. The Bank is a federally chartered savings association. The Bank operates as a community-oriented financial institution offering financial services to consumers and businesses in its market area. It attracts deposits from the general public and use those funds to originate one- to four-family real estate, multi-family and commercial real estate loans, construction, land, commercial and consumer loans, which, with the exception of long-term (more than 10 year terms) fixed-rate one- to four-family real estate loans, it primarily hold for investment. In addition, a segment of its lending business involves the purchase and sale of loan participation interests. It also offers insurance and investment services through Walden Federal. In addition to its main office, it operates five full-service branch offices in Montgomery, Otisville, Newburgh and Monroe, New York. The Bank generates deposits through its six offices and conducts lending activities throughout Orange, lower Sullivan and lower Ulster Counties, New York.
The largest segment of its loan portfolio is comprised of mortgage loans to enable borrowers to purchase or refinance existing homes most of which serve as the primary residence of the owner. At December 31, 2009, one- to four-family residential loans totaled $59.6 million, or 43 % of total loans. It offers fixed-rate and adjustable-rate loans with terms up to 30 years. Its adjustable-rate mortgage loans generally adjust annually after an initial fixed period that ranges from 1 to 10 years. Generally, loans are sold to the Federal Home Loan Mortgage Corporation (Freddie Mac) and to a lesser extent Federal Home Loan Bank (FHLB) with servicing retained and sold to other investors on a servicing released basis. The majority of one- to four-family residential loans originated by Walden Federal are sold to Freddie Mac or kept in portfolio. It also sells some loans to the State of New York Mortgage Agency (SONYMA) and other investors, with servicing released.
The Bank offer fixed- and adjustable-rate mortgage loans secured by a variety of commercial and multi-family real estate, such as small office buildings, warehouses, retail properties and small apartment buildings. At December 31, 2009, multi-family and commercial real estate loans totaled $28.2 million, or 20.3% of total loans. It originates a variety of fixed- and adjustable-rate commercial real estate and multi-family real estate loans generally with rates fixed for up to 10 years and for terms of up to 20 years. At December 31, 2009, its largest multi-family loan was $1.1 million and was secured by apartment buildings and its largest commercial real estate loan was $1.3 million and was secured by a mixed use auto body and repair shop and office building.
The Bank originates fixed-rate loans to individuals and to builders to finance the construction of residential dwellings. It also makes construction loans for small commercial development projects. At December 31, 2009, construction loans totaled $7.8 million, or 5.6% of total loans. At December 31, 2009, its largest commercial business loan was $1.3 million, which was partially secured by marketable securities.
The Bank also originates loans secured by developed and undeveloped land to individuals and builders. At December 31, 2009, land loans totaled $15.3 million, or 11.0% of total loans. At December 31, 2009, its largest land loan was a $1.4 million letter of credit and was secured by a residential land development loan. Its consumer loans consist primarily of home equity loans and lines of credit. At December 31, 2009, consumer loans totaled $12.6 million, or 9.1% of total loans. It makes loans secured by passbook or certificate accounts, unsecured loans, overdraft loans and automobile loans. It offers fixed-rate home equity loans with a maximum combined loan to value ratio of 90% or less for terms up to 15 years. At December 31, 2009, fixed-rate home equity loans totaled $8.2 million, or 5.9% of total loans.
The Bank has the authority to invest in various types of liquid assets, including United States Treasury obligations, securities of various federal agencies and of state and municipal governments, mortgage-backed securities and certificates of deposit of federally insured institutions. Within certain regulatory limits, it also may invest a portion of its assets in corporate securities and mutual funds. It is also required to maintain an investment in Federal Home Loan Bank of New York stock and Atlantic Central Bankers Bank (ACBB). At December 31, 2009, its investment portfolio totaled $1.3 million, or 0.8% of total assets, and consisted of United States agency securities and mortgage-backed securities held to maturity.
Deposit Activities and Other Sources of Funds
Deposits, borrowings and loan repayments are the major sources of its funds for lending and other investment purposes. Deposits are attracted from within its market area through advertising and the offering of a selection of deposit instruments, including noninterest-bearing demand deposits (such as checking accounts), interest-bearing demand accounts (such as negotiable order of withdrawal (NOW) and money market accounts), savings accounts and certificates of deposit. In addition to accounts for individuals, it also offers commercial checking accounts designed for the businesses operating in its market area. Municipal deposits comprise a portion of its total deposits. At December 31, 2009, $10 million, or 7.6% of its total deposits consisted of one municipal deposit from the New York State Office of the Comptroller.
Hometown Bancorp’s only direct subsidiary is Walden Federal. Walden Federal has two active wholly owned subsidiaries, Ever-Green Financial Services Inc. and Valley Services, Inc. Evergreen’s sole business activity is a 50% ownership interest in Evergreen Title Agency, LP, which is in the title insurance business. Valley Services was formed to hold real estate owned.
The Bank competes with Bank of America, JP Morgan Chase, Keycorp and Citizens Financial Group, Inc.
Hometown Bancorp Inc
12 Main Street
WALDEN NY 12586