Hometown Bancorp, Inc. Announces Fourth Quarter and Annual Earnings

Business Wire, Feb 27, 2008

Total assets grew $15.3 million, or 13.0%, to $132.7 million at December 31, 2007 from $117.4 million at December 31, 2006, due primarily to loan growth which was offset in part by a reduction in securities. Loans net, increased $23.7 million, or 24.2%, from December 31, 2006 to $121.5 million at December 31, 2007. The primary loan growth during 2007 was increased volume of $9.3 million in residential mortgages, $5.3 million in commercial business loans, $5.3 million in non-residential mortgage loans and $2.7 million in land loans. Cash and cash equivalents increased by $748,000, while securities decreased by $9.3 million. The decrease in securities was primarily due to a $9.0 million security being called in September 2007. Approximately $7.0 million of these funds were used to pay off borrowings and the balance went to interest-earning deposits.

Total deposits were $112.1 million at December 31, 2007 compared to $104.5 million at December 31, 2006, an increase of $7.5 million or 7.2%. The increase was predominately in certificates of deposit of $13.4 million, offset by decreases in money market accounts of $4.8 million, mostly due to certificates of deposit promotions to fund loan growth and customer's preference for higher deposit rates.

Total stockholders' equity increased $10.0 million from $8.5 million at December 31, 2006 to $18.5 million at December 31, 2007. The increase in equity is related to the Company completing its stock offering on June 28, 2007, during which the Company sold 1,071,225 shares of common stock to subscribers at a price of $10.00 per share. The Company also issued 1,309,275 shares of its common stock to Hometown Bancorp MHC. The net offering proceeds after offering and ESOP expenses were $9.1 million, of which $6.0 million was provided to the Bank. Equity also increased by earnings of $850,000 for the year ended December 31, 2007.

Hometown Bancorp, Inc. is the holding company for Walden Federal Savings & Loan Association. Established in 1919, Walden Federal is a community-oriented financial institution headquartered in Walden, New York. Through its six offices, Walden Federal offers a full-range of financial services to individuals and businesses within its market area.

This press release contains certain forward-looking statements that are based on assumptions and may describe future plans, strategies and expectations of the Company. Forward-looking statements can be identified by the fact that they do not relate strictly to historical or current facts. They often include words like "believe," "expect," "anticipate," "estimate" and "intend" or future or conditional verbs such as "will," "would," "should," "could" or "may." Certain factors that could cause actual results to differ materially from expected results include changes in the interest rate environment, changes in general economic conditions, legislative and regulatory changes that adversely affect the business of the Company and the Bank, and changes in the securities markets. Except as required by law, the Company does not undertake any obligation to update any forward-looking statements to reflect changes in belief, expectations or events.