Home Loan Financial : 2023 Annual Report

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ANNUAL RE PORT

HOME LOAN FINANCIAL CORPORATION

ANNUAL REPORT

June 30, 2023

CONTENTS

LETTER TO SHAREHOLDERS	2
INDEPENDENT AUDITOR'S REPORT	3
CONSOLIDATED FINANCIAL STATEMENTS
Consolidated Balance Sheets	5
Consolidated Statements of Income	6
Consolidated Statements of Comprehensive Income	7
Consolidated Statements of Changes in Shareholders' Equity	8
Consolidated Statements of Cash Flows	10
Notes to Consolidated Financial Statements	12
SHAREHOLDER INFORMATION	46
CORPORATE INFORMATION	47

Home Loan Financial Corporation

413 Main Street

Coshocton, OH 43812-1547

Telephone [phone]

Fax [phone]

Dear Fellow Shareholder:

We are pleased to share Home Loan Financial Corporation's (HLFN) fiscal 2023, consolidated financial results with you.

We achieved another new record earnings total for the year ended June 30, 2023.

Net income for the year ended June 30, 2023, was $5,171,000, or $3.69 basic and diluted earnings per share, compared to $4,156,000 for the year ended June 30, 2022, or $2.97 basic and diluted earnings per share, an increase of $1,041,000, or 24.4%.

This increase in earnings for the year ended June 30, 2023 compared with June 30, 2022 was primarily attributable to an increase in net interest income of $2,479,000 partially offset by an increase in the provision for loan losses of $183,000, a decrease in noninterest income of $405,000, an increase in noninterest expense of $473,000, and increase in federal income tax expense of 404,000.

Total assets at June 30, 2023 were $291.2 million compared to June 30, 2022 assets of $254.6 million, an increase of $36.6 million or 14.4%. Total deposits at June 30, 2023 were $220.6 million compared to June 30, 2022 deposits of $215.3 million, an increase of $5.3 million or 2.5%. Total equity at June 30, 2023 was $35.7 million compared to $33.1 million at June 30, 2022, an increase of $2.6 million or 7.9%.

The investors that were part of HLFN's initial conversion from a mutual to a stock company have seen their investment on March 25, 1998 grow from $5.89 per share (adjusted for the return of capital distribution in fiscal 1999) to $28.65 per share as of June 30, 2023. In addition, those shareholders have received $25.685 in dividends per share since the conversion. Based upon HLFN's ending stock price at June 30, 2023 of $28.65, the current annual dividend of $1.91 produced a yield of 6.67%.

On behalf of the HLFN management team, employees and our Board of Directors, we want to thank you for investing in HLFN. We encourage you to do your personal and business banking with The Home Loan Savings Bank, as our accounts build our company and enhance your investment.

Sincerely,

Robert C. Hamilton

Chairman of the Board and CEO

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DIXON, DAVIS, BAGENT & COMPANY

CERTIFIED PUBLIC ACCOUNTANTS

1205 WEAVER DRIVE• GRANVILLE, OHIO 43023 • 740-321-1000• FAX [phone]

INDEPENDENT AUDITOR'S REPORT

Board of Directors

Home Loan Financial Corporation

Coshocton, Ohio

Opinion

We have audited the accompanying consolidated financial statements of Home Loan Financial Corporation, which comprise the consolidated balance sheets as of June 30, 2023 and 2022, and the related consolidated statements of income, comprehensive income, changes in shareholders' equity, and cash flows for the years then ended, and the related notes to the financial statements.

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Home Loan Financial Corporation as of June 30, 2023 and 2022, and the results of its operations and its cash flows for the years then ended in accordance with accounting principles generally accepted in the United States of America.

Basis for Opinion

We conducted our audits in accordance with auditing standards generally accepted in the United States of America. Our responsibilities under those standards are fu1ther described in the Auditor's Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of Home Loan Financial Corporation and to meet our other ethical responsibilities in accordance with the relevant ethical requirements relating to our audits. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

Responsibilities of Management for the Financial Statements

Management is responsible for the preparation and fair presentation of the consolidated financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the consolidated financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about Home Loan Financial Corporation's ability to continue as a going concern within one year after the date that the consolidated financial statements are available to be issued.

Auditor's Responsibilities for the Audit of the Financial Statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion.

ACCOUNTANTS, AUDITORS, & CONSULTANTS TO FINANCIAL INSTITUTIONS

MEMBERS: THE AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS• OHIO SOCIETY OF CERTIFIED PUBLIC ACCOUNTANTS

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