Hometown Bancorp, Inc. Announces Second Quarter Earnings and 5% Stock Repurchase Plan

Business Wire, July 28, 2008

Total assets grew $5.5 million, or 4.2%, to $138.2 million at June 30, 2008 from $132.7 million at December 31, 2007. Loans net, increased $5.3 million, or 4.4%, from $121.5 million at December 31, 2007 to $126.8 million at June 30, 2008. Loan growth during the six months of 2008 consisted of $4.7 million in residential mortgages, $2.5 million in land loans offset by, a decrease of $1.6 million in commercial business loans. Cash and cash equivalents decreased by $47,000, while investment securities decreased by $168,000 primarily due to principal repayments on mortgage-backed investments.

Total deposits were $114.2 million at June 30, 2008 compared to $112.1 million at December 31, 2007, an increase of $2.1 million or 1.9%. The increase was predominately in core deposits of $3.7 million offset by a decrease in certificates of deposit of $1.6 million mostly due to promotional certificates of deposit maturing and our decision to use lower cost borrowings from the FHLB to fund the loan growth.

Total borrowings were $3.0 million at June 30, 2008 compared to no borrowings at December 31, 2007. The borrowings were advances from the FHLB used to partially fund the loan growth.

Total stockholders' equity increased $380,000 from $18.5 million at December 31, 2007 to $18.9 million at June 30, 2008. This increase was primarily due to earnings of $359,000 for the six months ended June 30, 2008.

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.

Selected Financial and Other Data

[TABLE OMITTED]
[TABLE OMITTED]
[TABLE OMITTED]