Exhibit 99.1

 

NEWS
FOR IMMEDIATE RELEASE		CONTACT:		John E. Peck
				President and CEO
				(270) 885-1171

HOPFED BANCORP, INC. REPORTS FOURTH QUARTER RESULTS

HOPKINSVILLE, Ky. (January 31, 2013) – HopFed Bancorp, Inc. (NASDAQ: HFBC) (the “Company”), the holding company for Heritage Bank (the “Bank”), today reported results for the three and twelve month periods ended December 31, 2012. For the three month period ended December 31, 2012, the Company’s net income available to common shareholders was $648,000, or $0.09 per share, basic and diluted, compared to net income available to common shareholders of $2.1 million, or $0.28 per share basic and diluted, for the three month period ended December 31, 2011. For the twelve month period ended December 31, 2012, the Company’s net income available to common shareholders was $2.8 million, or $0.38 per share, basic and diluted, compared to a net income available to common shareholders of $1.9 million, or $0.25 per share basic and diluted, for the twelve month period ended December 31, 2011.

Commenting on the fourth quarter results, John E. Peck, President and Chief Executive Officer, said, “The Company has repurchased 100% of our Preferred Stock from the United States Treasury. The $18.4 million repurchase of Preferred Stock required the accelerated accretion of our warrant discount and a final dividend payment totaling $200,000 in December of 2012. The Warrant allowed the Treasury to purchase 253,667 shares of HopFed Common Stock at an exercise price of $10.88 and was scheduled to expire on December 12, 2018. On January 16, 2013, the Company repurchased the Warrant issued to the Treasury for $256,257.”

Mr. Peck continued, “We have been successful in reducing our cost of time deposits during the fourth quarter of 2012. For the three month period ended December 31, 2012, the cost of retail time deposits was 1.74%, as compared to 1.92% for the three month period ended September 30, 2012. For the three month period ended December 31, 2012, the Company’s cost of deposits was 1.20%, compared to 1.36% for the three month period ended September 30, 2012, and 1.46% for the three month period ended December 31, 2011. As discussed below, the Company’s net interest margin improved substantially as compared to the three month period ended September 30, 2012.”

Mr. Peck concluded, “The Company experienced a $9.2 million reduction in classified loans during the quarter and $23.7 million in the last two quarters. The Company’s credit trends continue to improve and our non-performing asset ratio continues to decline. Reducing the level of adversely classified assets remains a priority for the Company.”

Financial Highlights

 

•

The Company and Bank’s capital ratios remain strong after the repurchase of all Preferred Stock. At December 31, 2012, the Company’s tangible book value was $13.88 per share and our tangible common equity ratio is 10.83%. The Bank’s Tier 1 Leverage and Total Risk Based Capital Ratios at December 31, 2012, are 10.62% and 19.07%, respectively. The Company’s Tier 1 Leverage and Total Risk Based Capital Ratios are 10.85% and 19.42%, respectively.

 

•

At December 31, 2012, the Bank’s and Company’s net classified loans to risk based capital ratios were 60.74% and 59.36%, respectively. At September 30, 2012, these ratios were 68.76% for the Bank and 60.42% for the Company. At June 30, 2012, these ratios were 86.50% for the Bank and 76.1% for the Company. These ratios are improved despite the $18.4 million repurchase of Preferred Stock.

 

•

At December 31, 2012, the Company’s allowance for loan loss totaled $10.6 million, or 1.99% of total loans and 138.99% of non-accrual loans. In the twelve month period ended December 31, 2012, the Company’s net charge offs totaled $2.9 million, or an annualized rate of 0.52% of average loans.

 

•

For the three month period ended December 31, 2012, the Company’s net interest margin was 3.01%, as compared to 2.67% for the three month period ended September 30, 2012, and 3.13% for the three month period ended December 31, 2011.

 

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HFBC Reports Fourth Quarter Results

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January 31, 2013

 

Asset Quality

At December 31, 2012, the Company’s level of non-accrual loans totaled $7.6 million, as compared to $6.1 million at December 31, 2011. At December 31, 2012, non-accrual loans total 1.43% of total loans.

A summary of non-accrual loans at December 31, 2012, and December 31, 2011, is as follows:

 

		12/31/2012				12/31/2011
		(Dollars in Thousands)
One-to-four family first mortgages			2,243				2,074
Home equity lines of credit			66				134
Junior liens			4				101
Multi-family			38				—
Construction			—				—
Land			2,768				1,330
Non-residential real estate			1,134				2,231
Farmland			648				—
Consumer loans			145				9
Commercial loans			617				254
Total non-accrual loans			7,663				6,133

A summary of the level of classified loans at December 31, 2012, is as follows:

 

		Pass				Special Mention				Impaired Loans								Total				Specific Reserve for Impairment				Reserve for Performing Loans
December 31, 2012										Substandard				Doubful
		(Dollars in Thousands)
One-to-four family mortgages			156,961				779				4,595				—				162,335				754				1,736
Home equity line of credit			34,737				1,109				1,237				—				37,083				76				298
Junior liens			3,821				47				468				—				4,336				188				42
Multi-family			27,463				1,478				4,115				—				33,056				38				486
Construction			14,052				—				4,848				—				18,900				—-				256
Land			14,374				7,683				23,849				—				45,906				932				1,252
Non-residential real estate			107,947				669				14,021				—				122,637				1,240				1,681
Farmland			38,496				1,230				7,073				—				46,799				184				528
Consumer loans			13,330				—				556				—				13,886				121				217
Commercial loans			44,191				516				5,842				—				50,549				308				311
Total			455,372				13,511				66,604				—				535,487				3,841				6,807

At December 31, 2012, non-accrual loans plus other real estate owned totaled $9.2 million, or 0.95% of total assets, as compared to $8.4 million, or 0.81% of total assets, at December 31, 2011. The Company’s level of other real estate owned has declined from $2.3 million at December 31, 2011, to $1.5 million at December 31, 2012.

This information is preliminary and based on company data available at the time of the presentation.

 

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HFBC Reports Fourth Quarter Results

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January 31, 2013

 

At December 31, 2012, the Company’s level of loans classified as substandard and doubtful were $66.6 million and none, respectively. At September 30, 2012, the Company’s level of loans classified as substandard and doubtful were $75.7 million and $116,000, respectively, as compared to $47.5 million and $1.7 million, respectively, at December 31, 2011. The Company’s specific reserve for impaired loans was $3.8 million at December 31, 2012, and $4.1 million at December 31, 2011.

At December 31, 2012, the Company’s level of performing Troubled Debt Restructurings (“TDRs”) was $11.1 million, as compared to $6.2 million at December 31, 2011. A summary of the activity in loans classified as performing TDRs for the twelve month period ended December 31, 2012, is as follows:

 

		Balance at 12/31/11				New TDR				Loss or Foreclosure				Removed Due to Performance				Removed from (Taken to) Non-accrual				Balance at 12/31/12
One-to-four family mortgages			1,111				146				—				705				(1,336	)			1,888
Home equity line of credit			—				244				—				244				—				—
Junior Lien			757				—				—				561				—				196
Multi-family			—				239				—				5				—				234
Construction			—				4,272				160				—				—				4,112
Land			941				4,850				233				804				4,098				656
Non-residential real estate			3,366				—				453				2,913				(3,129	)			3,129
Farmland			—				956				—				956				(909	)			909
Consumer loans			32				75				5				97				—				5
Commercial loans			20				931				10				932				—				9
Total performing TDR			6,227				11,713				861				7,217				(1,276	)			11,138

This information is preliminary and based on company data available at the time of the presentation.

 

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HFBC Reports Fourth Quarter Results

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January 31, 2013

 

A summary of TDRs and non-performing TDRs at December 31, 2012, and December 31, 2011, is stated below:

 

		December 31, 2012				December 31, 2011
		(Dollars in Thousands)
One-to-four family mortgages		$	1,888				2,521
Home equity line of credit			—				—
Junior lien			196				857
Multi-family			234				—
Construction			4,112				—
Land			3,424				941
Non-residential real estate			3,173				3,367
Farmland			909				—
Consumer loans			5				33
Commercial loans			128				125
Total TDR		$	14,069				7,844
Less:
TDR in non-accrual status
One-to-four family mortgages			—				(1,410	)
Home equity line of credit			—				—
Junior lien			—				(100	)
Multi-family			—				—
Construction			—				—
Land			(2,768	)			—
Non-residential real estate			(44	)			(1	)
Farmland			—				—
Consumer loans			—				(1	)
Commercial loans			(119	)			(105	)
Total performing TDR		$	11,138			$	6,227

A summary of the activity in other real estate owned for the twelve month period ended December 31, 2012, is as follows:

 

		Balance 12/31/2011				Foreclosures				Sales				Reduction in Values				Gain (Loss) on Sales				Balance 12/31/2012
						(Dollars in Thousands)
One-to-four family mortgages			480				983				(954	)			(92	)			(29	)			388
Multi-family			905				—				(875	)			—				(30	)			—
Construction			465				—				(451	)			—				(14	)			—
Land			248				1,229				(269	)			(77	)			(19	)			1,112
Non-residential real estate			160				64				(178	)			(20	)			18				44
Consumer assets			9				9				(11	)			—				(3	)			4
Total			2,267				2,285				(2,738	)			(189	)			(77	)			1,548

This information is preliminary and based on company data available at the time of the presentation.

 

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HFBC Reports Fourth Quarter Results

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January 31, 2013

 

Net Interest Income

For the three month period ended December 31, 2012, the Company’s net interest income was $6.5 million, compared to $7.2 million for the three month period ended December 31, 2011, and $5.9 million for the three month period ended September 30, 2012. For the twelve month period ended December 31, 2012, the Company’s net interest income was $26.0 million, as compared to $27.8 million for the twelve month period ended December 31, 2011. For the twelve month period ended December 31, 2012, the Company’s net interest margin was 2.90%, as compared to 3.02% for the twelve month period ended December 31, 2011. For the twelve month period ended December 31, 2012, net interest income was reduced by $480,000 as a result of FHLB prepayment penalties. FHLB prepayment penalties reduced the Company’s net interest margin for the twelve month period ended December 31, 2012, by 0.05%.

The Company’s net interest margin improved significant for the three month period ended December 31, 2012, as compared to the three month period ended September 30, 2012. The improvement occurred largely as a result of the re-pricing of more than $96 million in time deposits. On a linked quarter basis, interest expense on deposits declined by $348,000 and interest expense on FHLB borrowings declined by $563,000.

The decline in the Company’s net interest income and net interest margin for the twelve month period ended December 31, 2012, as compared to the twelve month period ending December 31, 2011, is largely the result of declining average loan balances and high level of cash flow from our investment portfolio.

Non-interest Income

Non-interest income for the three month period ended December 31, 2012, was $2.2 million, as compared to $2.4 million for the three month periods ended December 31, 2011, and $2.9 million for the three month period ended September 30, 2012, respectively. Non-interest income for the twelve month periods ended December 31, 2012, and December 31, 2011, was $9.6 million and $10.2 million, respectively.

The decrease in non-interest income for the three and twelve month periods ended December 31, 2012, as compared to the three and twelve month periods ended December 31, 2011, was primarily the result of a lower level of gains on the sale of securities. The Company recognized net gains on the sale of securities of $53,000 and $1.7 million for the three month and twelve month periods ended December 31, 2012, as compared to $600,000 and $2.9 million for the three and twelve month period ended December 31, 2011. The Company recognized $944,000 in gains on the sale of securities during the three month period ended September 30, 2012.

For the three and twelve month periods ended December 31, 2012, the Company’s income from financial services increased by $90,000 and $177,000, respectively as compared to the same periods in 2011. For the three and twelve month periods ended December 31, 2012, income from fixed rate mortgage originations was $272,000 and $956,000, as compared to $295,000 and $720,000 for the three and twelve month periods ended December 31, 2011. For the three month period ended December 31, 2012, income on bank owned life insurance increased by $95,000 as compared to the three month period ended December 31, 2011, as a result of the death benefit received.

This information is preliminary and based on company data available at the time of the presentation.

 

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HFBC Reports Fourth Quarter Results

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January 31, 2013

 

Non-interest Expense

Non-interest expenses were $6.9 million and $6.7 million for the three month periods ended December 31, 2012, and December 31, 2011, respectively, and $7.0 million for the three month period ended September 30, 2012. For the twelve month ended December 31, 2012, and December 31, 2011, non-interest expenses were $28.4 million and $28.7 million, respectively. On a linked quarter basis, non-interest expenses declined $39,000 due to lower levels of professional services expenses and deposit insurance expense. These reductions were largely offset by a $197,000 increase in other operating expense attributable to an alternative minimum tax adjustment at December 31, 2012.

The Company’s salaries and benefits expense, other operating expenses and professional services expenses have increased due to increased regulatory and compliance requirements. The reduction in losses on sale of other real estate owned is the result of lower balances in that asset class. The reduction in the Company’s deposit insurance and examination expense is largely the result of a reduced level of brokered and time deposits and the removal of informal regulatory actions.

Balance Sheet

Total assets were $967.7 million at December 31, 2012, a decrease of $73.1 million as compared to December 31, 2011. The decline in the size of the balance sheet is largely the result of an $82.9 million reduction in time deposit balances and $19.6 million decline in FHLB borrowings. The reduction in time deposits included an $8.2 million decline in brokered deposits. The Company funded the decline in the balance sheet largely by reducing the size of its investment portfolio by $27.4 million. For the twelve month period ended December 31, 2012, gross loans declined by approximately $32.0 million, to $535.6 million as compared to $567.6 million at December 31, 2011.

The Company recently repurchased all outstanding Preferred Stock and the associated Warrant sold under the Treasury’s Capital Purchase Plan in December 2008. In repurchasing all outstanding preferred shares, the Company will not have to pay $920,000 in preferred dividends and incur $111,120 of warrant accretion in 2013, equal to $0.14 per share, basic and diluted. As a result of the repurchase of preferred shares, the Company accelerated a final dividend payment $87,000 and warrant accretion of $111,120, reducing net income available to common shareholders by $0.03 per share, basic and diluted.

The Company

HopFed Bancorp, Inc. is the holding company for Heritage Bank headquartered in Hopkinsville, Kentucky. The Bank has eighteen offices in western Kentucky and middle Tennessee in addition to its subsidiary, Fall & Fall Insurance of Fulton, Kentucky. The Bank’s operations include Heritage Solutions of Murray, Kentucky, Hopkinsville, Kentucky, Kingston Springs, Tennessee and Pleasant View, Tennessee, which offers a broad line of financial services. Heritage Mortgage Services of Clarksville, Tennessee offers long term fixed rate 1- 4 family mortgages loans in all communities in the Company’s general market area. The Bank offers a broad line of banking and financial products and services with the personalized focus of a community banking organization. More information about HopFed Bancorp and Heritage Bank may be found on its website www.bankwithheritage.com.

Forward-Looking Information

Information contained in this press release, other than historical information, may be considered forward-looking in nature and is subject to various risk, uncertainties, and assumptions. Should one or more of these risks or uncertainties materialize, or should the underlying assumptions prove incorrect, actual results may vary materially from those anticipated, estimated or expected. Among the key factors that may have a direct bearing on the Company’s operating results, performance or financial condition are competition and the demand for the Company’s products and services, and other factors as set forth in filings with the Securities and Exchange Commission.

This information is preliminary and based on company data available at the time of the presentation.

 

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HFBC Reports Fourth Quarter Results

Page 7

January 31, 2013

 

HOPFED BANCORP, INC.

Balance Sheet

(Dollars in thousands)

 

		December 31, 2012				December 31, 2011
Assets
Cash and due from banks		$	32,309				44,389
Interest-earning deposits			4,867				4,371
Cash and cash equivalents			37,176				48,760
Federal Home Loan Bank stock, at cost			4,428				4,428
Securities available for sale			356,345				383,782
Loans receivable, net of allowance for loan losses of $10,648 at December 31, 2012, and $11,262 at December 31, 2011			524,985				556,360
Accrued interest receivable			5,398				6,183
Real estate and other assets owned			1,548				2,267
Bank owned life insurance			9,323				9,135
Premises and equipment, net			22,557				23,431
Deferred tax assets			—				1,132
Intangible asset			292				519
Other assets			5,637				4,823
Total assets		$	967,689				1,040,820
Liabilities and Stockholders’ Equity
Liabilities:
Deposits:
Non-interest-bearing accounts		$	94,083				79,550
Interest-bearing accounts
NOW accounts			147,047				130,114
Savings and money market accounts			81,643				70,443
Other time deposits			437,092				519,988
Total deposits			759,865				800,095
Advances from Federal Home Loan Bank			43,741				63,319
Repurchase agreements			43,508				43,080
Subordinated debentures			10,310				10,310
Advances from borrowers for taxes and insurance			396				153
Dividends payable			180				176
Deferred tax liability			568				—
Accrued expenses and other liabilities			4,122				5,204
Total liabilities			862,690				922,337

This information is preliminary and based on company data available at the time of the presentation.

 

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HFBC Reports Fourth Quarter Results

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January 31, 2013

 

HOPFED BANCORP, INC.

Balance Sheet

(Dollars in thousands)

 

		December 31, 2012				December 31, 2011
Stockholders’ equity
Preferred stock, par value $0.01 per share; authorized - 500,000 shares; 18,400 shares issued and no shares outstanding at December 31, 2012; and 18,400 shares issued and outstanding with a liquidation preference of $18,400,000 at December 31, 2011.			—				—
Common stock, par value $.01 per share; authorized 15,000,000 shares; 7,905,728 issued and 7,502,812 outstanding at December 31, 2012, and 7,895,336 issued and 7,492,420 outstanding at December 31, 2011			79				79
Common stock warrant			556				556
Additional paid-in-capital			76,288				75,967
Retained earnings-substantially restricted			41,829				39,591
Treasury stock-preferred (at cost, 18,400 shares at December 31, 2012, and none at December 31, 2011)			(18,400	)			—
Treasury stock-common (at cost, 402,916 shares at
December 31, 2012, and December 31, 2011)			(5,076	)			(5,076	)
Accumulated other comprehensive income, net of taxes			9,723				7,366
Total stockholders’ equity			104,999				118,483
Total liabilities and stockholders’ equity		$	967,689				1,040,820

This information is preliminary and based on company data available at the time of the presentation.

 

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HFBC Reports Fourth Quarter Results

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January 31, 2013

 

HOPFED BANCORP, INC.

Selected Financial Data

(Dollars in thousands)

 

		For the Three Month Periods Ended December 31,								For the Twelve Month Periods Ended December 31,
		2012				2011				2012				2011
Interest and dividend income:
Loans receivable			7,211				8,239				29,828				33,493
Investment in securities, taxable			1,899				2,462				8,722				10,465
Nontaxable securities available for sale			571				530				2,266				2,263
Interest-earning deposits			4				6				24				19
Total interest and dividend income			9,685				11,237				40,840				46,240
Interest expense:
Deposits			2,292				3,028				10,571				14,207
Advances from Federal Home Loan Bank			454				611				2,609				2,557
Repurchase agreements			242				241				963				909
Subordinated debentures			181				191				734				742
Total interest expense			3,169				4,071				14,877				18,415
Net interest income			6,516				7,166				25,963				27,825
Provision for loan losses			500				476				2,275				5,921
Net interest income after provision for loan losses			6,016				6,690				23,688				21,904
Non-interest income:
Service charges			966				985				3,840				3,813
Merchant card income			222				197				842				768
Mortgage origination revenue			272				295				956				720
Gain on sale of securities			53				600				1,671				2,897
Other than temporarily impairment on available for sale securities			—				(141	)			—				(155	)
Income from bank owned life insurance			161				66				399				316
Financial services commission			293				203				1,071				894
Other operating income			219				224				860				940
Total non-interest income			2,186				2,429				9,639				10,193

This information is preliminary and based on company data available at the time of the presentation.

 

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HFBC Reports Fourth Quarter Results

Page 10

January 31, 2013

 

HOPFED BANCORP, INC.

Selected Financial Data

(Dollars in thousands, except share and per share data)

 

		For the Three Month Periods Ended December 31,								For the Twelve Month Periods Ended December 31,
		2012				2011				2012				2011
Non-interest expenses:
Salaries and benefits			3,464				3,279				13,979				13,266
Occupancy expense			917				817				3,531				3,269
Data processing expense			631				589				2,494				2,645
State deposit tax			162				151				647				627
Intangible amortization expense			49				65				227				291
Professional services expense			285				386				1,605				1,372
Deposit insurance and examination expense			267				417				1,539				2,021
Advertising expense			405				304				1,357				1,235
Postage and communications expense			118				128				562				549
Supplies expense			75				105				355				399
Loss on disposal of equipment			—				—				13				145
(Gain) Loss on sale of real estate owned			(21	)			61				266				1,703
Real estate owned expenses			33				60				123				276
Other operating expenses			547				319				1,743				895
Total non-interest expense			6,932				6,681				28,441				28,693
Income before income tax expense			1,270				2,438				4,886				3,404
Income tax expense			165				109				817				484
Net income			1,105				2,329				4,069				2,920
Less:
Dividend on preferred shares			318				232				1,007				920
Accretion dividend on preferred shares			139				28				222				111
Net income available to common shareholders		$	648			$	2,069			$	2,840			$	1,889
Net income available to common shareholders
Per share, basic		$	0.09			$	0.28			$	0.38			$	0.25
Per share, diluted		$	0.09			$	0.28			$	0.38			$	0.25
Dividend per share		$	0.02			$	0.02			$	0.08			$	0.20
Weighted average shares outstanding - basic			7,487,726				7,484,420				7,486,445				7,460,294
Weighted average shares outstanding - diluted			7,487,726				7,484,420				7,486,445				7,460,294

This information is preliminary and based on company data available at the time of the presentation.

 

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HFBC Reports Fourth Quarter Results

Page 11

January 31, 2013

 

HOPFED BANCORP, INC.

Selected Financial Data

(Dollars in thousands)

 

		For the Three Months Ended								Change from Prior Quarter
		12/31/2012				9/30/2012
Interest and dividend income:
Loans receivable			7,211				7,403				(192	)
Investment in securities, taxable			1,899				2,014				(115	)
Nontaxable securities available for sale			571				573				(2	)
Interest-earning deposits			4				6				(2	)
Total interest and dividend income			9,685				9,996				(311	)
Interest expense:
Deposits			2,292				2,640				(348	)
Advances from Federal Home Loan Bank			454				1,017				(563	)
Repurchase agreements			242				236				6
Subordinated debentures			181				185				(4	)
Total interest expense			3,169				4,078				(909	)
Net interest income			6,516				5,918				598
Provision for loan losses			500				506				(6	)
Net interest income after provision for loan losses			6,016				5,412				604
Non-interest income:
Service charges			966				963				3
Merchant card income			222				212				10
Mortgage orgination revenue			272				218				54
Gain on sale of securities			53				944				(891	)
Income from bank owned life insurance			161				80				81
Financial services commission			293				280				13
Other operating income			219				200				19
Total non-interest income			2,186				2,897				(711	)

This information is preliminary and based on company data available at the time of the presentation

 

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HFBC Reports Fourth Quarter Results

Page 12

January 31, 2013

 

HOPFED BANCORP, INC.

Selected Financial Data

(Dollars in thousands, except share and per share data)

 

		12/31/2012				9/30/2012
										Change from Prior Quarter
Non-interest expenses:
Salaries and benefits		$	3,464				3,447				17
Occupancy expense			917				875				42
Data processing expense			631				610				21
State deposit tax			162				161				1
Intangible amortization expense			49				48				1
Professional services expense			285				435				(150	)
Deposit insurance and examination expense			267				419				(152	)
Advertising expense			405				324				81
Postage and communications expense			118				146				(28	)
Supplies expense			75				64				11
Loss on disposal of equipment			—				5				(5	)
Loss on sale of real estate owned			(21	)			68				(89	)
Real estate owned expenses			33				19				14
Other operating expenses			547				350				197
Total non-interest expense			6,932				6,971				(39	)
Income before income tax expense			1,270				1,338				(68	)
Income tax expense			165				263				(98	)
Net income			1,105				1,075				30
Less:
Dividend on preferred shares			318				229				89
Accretion dividend on preferred shares			139				27				112
Net income available to common shareholders		$	648				819				(171	)
Net income available to common shareholders
Per share, basic		$	0.09			$	0.11				(0.02	)
Per share, diluted		$	0.09			$	0.11				(0.02	)
Dividend per share		$	0.02			$	0.02
Weighted average shares outstanding - basic			7,487,726				7,487,283
Weighted average shares outstanding - diluted			7,487,726				7,487,283

This information is preliminary and based on company data available at the time of the presentation.

 

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HFBC Reports Fourth Quarter Results

Page 13

January 31, 2013

 

HOPFED BANCORP, INC.

Selected Financial Data

The table below adjusts tax-free investment income for the twelve month periods ended December 31, 2012, and December 31, 2011, by $1,076,000 and $1,065,000, respectively; for a tax equivalent rate using a cost of funds rate of 1.80% for the twelve month period ended December 31, 2012, and 2.00% for the twelve month period ended December 31, 2011. The table adjusts tax-free loan income by $9,000 for the twelve month period ended December 31, 2012, and $34,000 for the twelve month period ended December 31, 2011, for a tax equivalent rate using the same cost of funds rate:

 

		Average Balance 12/31/2012				Income & Expense 12/31/2012				Average Rates 12/31/2012				Average Balance 12/31/2011				Income & Expense 12/31/2011				Average Rates 12/31/2011
Loans		$	542,292			$	29,837				5.50	%		$	575,133			$	33,527				5.83	%
Investments AFS taxable			313,347				8,722				2.78	%			308,022				10,465				3.40	%
Investments AFS tax free			68,428				3,342				4.88	%			66,104				3,328				5.03	%
Federal funds			9,850				24				0.24	%			9,075				19				0.21	%
Total interest earning assets			933,917				41,925				4.49	%			958,334				47,339				4.94	%
Other assets			85,560												108,997
Total assets		$	1,019,477											$	1,067,331
Retail time deposits		$	435,454				8,316				1.91	%		$	469,052				10,908				2.33	%
Brokered deposits			51,193				946				1.85	%			78,996				1,642				2.08	%
Now accounts			145,173				1,180				0.81	%			136,828				1,543				1.13	%
MMDA and savings accounts			74,574				129				0.17	%			68,347				114				0.17	%
FHLB borrowings			56,990				2,609				4.58	%			71,352				2,557				3.58	%
Repurchase agreements			40,915				963				2.35	%			39,894				909				2.28	%
Subordinated debentures			10,310				734				7.12	%			10,310				742				7.20	%
Total interest bearing liabilities			814,609				14,877				1.83	%			874,779				18,415				2.11	%
Non-interest bearing deposits			84,304												72,961
Other non-interest bearing liabilities			6,559												4,562
Stockholders’ equity			114,005												115,029
Total liabilities and stockholders’ equity		$	1,019,477											$	1,067,331
Net change in interest earning assets and interest bearing liabilities						$	27,048											$	28,924
Interest rate spread											2.66	%											2.83	%
Net yield on interest earning assets							2.90	%											3.02	%

This information is preliminary and based on company data available at the time of the presentation.

 

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HFBC Reports Fourth Quarter Results

Page 14

January 31, 2013

 

HOPFED BANCORP, INC.

Selected Financial Data

The table below adjusts tax-free investment income for the three month periods ended December 31, 2012, and December 31, 2011, by $274,000 and $249,000, respectively; for a tax equivalent rate using a cost of funds rate of 1.60% for the three month period ended December 31, 2012, and 2.00% for the three month period ended December 31, 2011. The table adjusts tax-free loan income by $1,000 for the three month period ended December 31, 2012 and $8,000 for the three month period ended December 31, 2011, for a tax equivalent rate using the same cost of funds rate:

 

		Average Balance 12/31/2012				Income & Expense 12/31/2012				Average Rates 12/31/2012				Average Balance 12/31/2011				Income & Expense 12/31/2011				Average Rates 12/31/2011
Loans		$	532,847			$	7,212				5.41	%		$	560,987			$	8,247				5.88	%
Investments AFS taxable			285,565				1,899				2.66	%			314,703				2,463				3.13	%
Investments AFS tax free			70,554				845				4.79	%			63,809				779				4.89	%
Federal funds			14,003				4				0.11	%			10,747				6				0.22	%
Total interest earning assets			902,969				9,960				4.41	%			950,246				11,495				4.84	%
Other assets			79,807												97,842
Total assets		$	982,776											$	1,048,088
Retail time deposits		$	408,353				1,777				1.74	%		$	463,586				2,421				2.09	%
Brokered deposits			47,127				193				1.64	%			63,738				300				1.88	%
Now accounts			145,644				290				0.80	%			133,464				287				0.86	%
MMDA and savings accounts			76,335				32				0.17	%			71,250				21				0.12	%
FHLB borrowings			44,044				454				4.12	%			67,747				610				3.60	%
Repurchase agreements			40,758				242				2.37	%			40,550				241				2.38	%
Subordinated debentures			10,310				181				7.02	%			10,310				191				7.41	%
Total interest bearing liabilities			772,571				3,169				1.64	%			850,645				4,071				1.91	%
Non-interest bearing deposits			88,783												75,169
Other non-interest bearing liabilities			6,753												6,153
Stockholders’ equity			114,669												116,121
Total liabilities and stockholders’ equity		$	982,776											$	1,048,088
Net change in interest earning assets and interest bearing liabilities						$	6,791											$	7,424
Interest rate spread											2.77	%											2.93	%
Net yield on interest earning assets							3.01	%											3.13	%

This information is preliminary and based on company data available at the time of the presentation.

 

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