Exhibit 99.1

 

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

HOPFED BANCORP, INC. REPORTS THIRD QUARTER RESULTS

HOPKINSVILLE, Ky. (October 28, 2013) – HopFed Bancorp, Inc. (NASDAQ: HFBC) (the “Company”), the holding company for Heritage Bank USA, Inc. (the “Bank”), today reported results for the three and nine month periods ended September 30, 2013. For the three month period ended September 30, 2013, the Company’s net income available to common shareholders was $536,000, or $0.07 per share, basic and diluted, compared to net income available to common shareholders of $819,000, or $0.11 per share basic and diluted, for the three month period ended September 30, 2012. For the nine month period ended September 30, 2013, the Company’s net income available to common shareholders was $2.7 million, or $0.36 per share, basic and diluted, compared to a net income attributable to common shareholders of $2.2 million, or $0.29 per share basic and diluted, for the nine month period ended September 30, 2012.

Commenting on the third quarter results, John E. Peck, President and Chief Executive Officer, said, “The Company’s net interest income for the three month period ended September 30, 2013, improved compared to the three month periods ending June 30, 2013, and September 30, 2012. The improved levels of net interest income are the result of our ability to reduce our interest expense by $298,000 on a linked quarter basis. As compared to the three month period ended September 30, 2012, total interest expense declined by approximately $1.6 million in the three month period ended September 30, 2013.”

Mr. Peck continued, “The Company’s non-interest expenses for the three and nine month periods ending September 30, 2013, remain relatively unchanged as compared to the same periods in 2012. On a linked quarter basis, non-interest expenses declined $141,000 despite an increase in non-interest expense associated with the termination of a merger agreement. We continue to focus on operating as efficiently as possible while focusing our energies to grow our loan portfolio in a safe and prudent manner.”

Mr. Peck concluded, “We recently announced a stock purchase program of 375,000 shares as well as an increase in our quarterly dividend payments. These announcements reflect the confidence of the Board of Directors and Management in the future of the Company.”

Financial Highlights

 

•

At September 30, 2013, the Company’s tangible book value was $12.92 per share and tangible common equity ratio was 10.32%. The reduction in book value at September 30, 2013, as compared to December 31, 2012, was the result of a lower level of unrealized gains on securities. The Bank’s Tier 1 Capital and Total Risk Based Capital Ratios at September 30, 2013, were 10.71% and 18.36%, respectively. The Company’s Tier 1 Capital and Total Risk Based Capital Ratios were 11.04% and 19.20%, respectively.

 

•

At September 30, 2013, the Company’s allowance for loan loss totaled $9.4 million, or 1.74% of total loans and 77.7% of non-accrual loans. In the nine month period ended September 30, 2013, the Company’s net charge offs totaled $2.4 million, or an annualized rate of 0.61% of average loans.

 

•

For the three month period ended September 30, 2013, the Company’s net interest margin was 3.04%, as compared to 2.67% for the three month period ended September 30, 2012, and 2.99% for the three month period ended June 30, 2013.

 

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HFBC Reports Third Quarter Results

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October 28, 2013

 

Asset Quality

At September 30, 2013, the Company’s level of non-accrual loans totaled $12.1 million, as compared to $7.7 million at December 31, 2012, and $11.8 million at June 30, 2013. A summary of non-accrual loans at September 30, 2013, and December 31, 2012, is as follows:

 

		September 30, 2013				December 31, 2012
		(Dollars in Thousands)
One-to-four family mortgages			865				2,243
Home equity line of credit			275				66
Junior lien			2				4
Multi-family			—				38
Construction			—				—
Land			2,257				2,768
Non-residential real estate			7,187				1,134
Farmland			744				648
Consumer loans			316				145
Commercial loans			482				617
Total non-accrual loans			12,128				7,663

A summary of the level of classified loans at September 30, 2013, is as follows:

 

																						Specific				Allowance
										Impaired Loans												Allowance				for
September 30, 2013						Special																for				Performing
		Pass				Mention				Substandard				Doubtful				Total				Impairment				Loans
		(Dollars in Thousands)
One-to-four family mortgages		$	151,028				1,423				5,406				—				157,857				755				1,386
Home equity line of credit			34,195				—				877				—				35,072				66				218
Junior liens			3,163				44				369				—				3,576				17				85
Multi-family			28,433				—				—				—				28,433				—				350
Construction			9,182				176				—				—				9,358				—				69
Land			19,523				1,789				16,209				—				37,521				828				298
Non-residential real estate			135,008				2,183				14,304				—				151,495				1,573				2,105
Farmland			45,275				807				4,826				—				50,908				—				439
Consumer loans			11,769				—				540				—				12,309				119				459
Commercial loans			52,089				96				2,746				—				54,931				44				607
Total		$	489,665				6,518				45,277				—				541,460				3,402				6,016

 

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HFBC Reports Third Quarter Results

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October 28, 2013

 

At September 30, 2013, non-accrual loans plus other real estate owned totaled $13.6 million, or 1.45% of total assets, as compared to $9.2 million, or 0.95% of total assets, at December 31, 2012. A summary of the activity in other real estate owned for the nine month period ended September 30, 2013, is as follows:

 

		Activity During 2013
		Balance												Reduction				Gain (Loss)				Balance
		12/31/2012				Foreclosures				Proceeds				in Values				on Sale				9/30/2013
		(Dollars in Thousands)
One-to-four family mortgages		$	258				758				(790	)			(8	)			34				252
Multi-family			—				—				—				—				—				—
Construction			130				—				(110	)			(110	)			90				—
Land			1,112				—				—				—				—				1,112
Non-residential real estate			44				40				(18	)			(11	)			18				73
Consumer assets			4				7				(3	)			(4	)			(2	)			2
Total		$	1,548				805				(921	)			(133	)			140				1,439

At September 30, 2013, the Company’s level of loans classified as substandard was $45.3 million as compared to $66.6 million at December 31, 2012. At September 30, 2013, the Company’s classified loan to risk based capital ratio was 39.2%. The Company’s specific reserve for impaired loans was $3.4 million at September 30, 2013, and $3.8 million at December 31, 2012, respectively.

At September 30, 2013, the Company has no loans classified as Troubled Debt Restructurings (“TDRs”) as compared to $11.0 million at December 31, 2012. A summary of the activity in loans classified as TDRs for the nine month period ended September 30, 2013, is as follows:

 

		Balance at 12/31/12				New TDR				Loss or Foreclosure				Removed due to Payment or Performance				Removed from (Taken to) Non-accrual				Balance at 9/30/13
		(Dollars in Thousands)
One-to-four family mortgages		$	1,888				242				—				(1,863	)			(267	)			—
Home equity line of credit			—				—				—				—				—				—
Junior Lien			96				—				—				(10	)			(86	)			—
Multi-family			234				—				—				(234	)			—				—
Construction			4,112				—				—				—				(4,112	)			—
Land			656				2,649				(393	)			(656	)			(2,256	)			—
Non-residential real estate			3,173				266				(864	)							(2,575	)			—
Farmland			865				—				—				(865	)			—				—
Consumer loans			5				—				—				(5	)			—				—
Commercial loans			9				222				—				(231	)			—				—
Total performing TDR		$	11,038				3,379				(1,257	)			(3,864	)			(9,296	)			—

 

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HFBC Reports Third Quarter Results

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October 28, 2013

 

A summary of TDRs and non-performing TDRs at September 30, 2013, and December 31, 2012, is stated below:

 

		September 30, 2013				December 31, 2012
		(Dollars in Thousands)
One-to-four family mortgages			—				1,888
Home equity line of credit			—				—
Junior lien			—				196
Multi-family			—				234
Construction			—				4,112
Land			—				3,424
Non-residential real estate			—				3,173
Farmland			—				909
Consumer loans			—				5
Commercial loans			—				128
Total TDR			—				14,069
Less:
TDR in non-accrual status
One-to-four family mortgages			—				—
Home equity line of credit			—				—
Junior lien			—				(100	)
Multi-family			—				—
Construction			—				—
Land			—				(2,768	)
Non-residential real estate			—				(44	)
Consumer loans			—				—
Commercial loans			—				(119	)
Total performing TDR			—			$	11,038

Net Interest Income

For the three month period ended September 30, 2013, the Company’s net interest income was $6.3 million, compared to $5.9 million for the three month period ended September 30, 2012, and $6.2 million for the three month period ended June 30, 2013. For the three month period ended September 30, 2013, the Company’s net interest margin was 3.04%, as compared to 2.67% for the three month period ended September 30, 2012, and 2.90% for the three month period ended June 30, 2013.

For the nine month period ended September 30, 2013, the Company’s net interest income was $18.9 million, as compared to $19.4 million for the nine month period ended September 30, 2012. For the nine month period ended September 30, 2013, the Company’s net interest margin was 2.98%, as compared to 2.84% for the nine month period ended September 30, 2012.

The increase in the Company’s net interest income and net interest margin are largely the result of significant balances of time deposits that matured in the second and third quarters of 2013. The Company anticipates that the full benefit of the deposit maturities will be realized in the fourth quarter of 2013. The Company does not anticipate that it can make material reductions in its deposit structure for the next few quarters as the weighted average cost of upcoming maturities are generally below 1.00%.

 

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HFBC Reports Third Quarter Results

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October 28, 2013

 

Non-interest Income

Non-interest income for the three month period ended September 30, 2013, was $1.8 million, as compared to $2.9 million for the three month period ended September 30, 2012, and $2.8 million for the three month period ended June 30, 2013. Non-interest income for the nine month periods ended September 30, 2013, and September 30, 2012, was $7.1 million and $7.5 million, respectively.

The decline in non-interest income for the three month period ended September 30, 2013, as compared to the three month periods ended September 30, 2012, and June 30, 2013, was primarily the result of a $400,000 other than temporary impairment on the trust preferred security in the Company’s investment portfolio and a reduced amount of gains on the sale of securities. In June 2008, the Company purchased a $2.0 million private placement trust preferred security issued by First Financial Services Corporation (“FFKY”) of Elizabethtown, Kentucky. The security has a thirty year maturity and is scheduled to pay an 8% annualized dividend quarterly. In October 2010, the Company was informed that, pursuant to the trust preferred agreement, FFKY would defer future dividends due to asset quality and capital issues at FFKY.

The Company has continually reviewed all quarterly regulatory filings to determine the future viability of FFKY. Despite asset quality improvements at FFKY, we have determined that it is unlikely that FFKY will be able to resume dividend payments prior to the five year deferral period (set to expire in October 2015) provided for in the trust preferred agreement. Therefore, we have determined that the Company’s investment in FFKY is permanently impaired and should be written down accordingly. At September 30, 2013, the Company reduced the value of its FFKY investment by $400,000, or 20%, through an expense other than temporary impairment charge.

The Company recognized net gains on the sale of securities of $201,000, $944,000, and $789,000 for the three month periods ended September 30, 2013, September 30, 2012, and June 30, 2013, respectively. The Company recognized net gains on the sales of securities of $1.6 million, for the nine month periods ended September 30, 2013, and September 30, 2012, respectively.

For the three and nine month periods ended September 30, 2013, the Company’s revenue related to the origination of fixed rate mortgage loans was $147,000 and $559,000, respectively, as compared to $218,000 and $684,000 for the same periods in 2012. The recent increase in the long term interest rates has negatively affected the demand for secondary market mortgage loans, reducing our income in the three month period ended September 30, 2013. The Company earned $314,000 and $958,000 in commission from our financial services production during the three and nine month periods ended September 30, 2013, as compared to $280,000 and $778,000, respectively, for the same periods in 2012. The Company’s wealth management employees report increased interest in non-FDIC insured products as interest rates remain low and the United States equity markets continue to improve.

Non-interest Expense

Non-interest expenses were $7.0 million, $7.0 million and $7.1 million for the three month periods ended September 30, 2013, September 30, 2012, and June 30, 2013, respectively. For the nine months ended September 30, 2013, and September 30, 2012, non-interest expenses were $21.4 million and $21.5 million, respectively.

On a linked quarter basis, professional services expenses declined by $56,000 despite the Company incurring charges in excess of $150,000 related to the previously announced termination of a merger agreement with Sumner Bank and Trust. On a linked quarter basis, the Company has experienced a modest decline in most operating expense line items.

 

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HFBC Reports Third Quarter Results

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October 28, 2013

 

Balance Sheet

At September 30, 2013, consolidated assets were $935.5 million, a decrease of $32.1 million as compared to December 31, 2012. The decline in assets is largely the result of a $54.1 million reduction in time deposits as the Company has chosen to allow selected high cost deposit funding to leave the Company. The Company has funded the outflow of deposits by the sale of securities.

For the nine month period ended September 30, 2013, gross loans increased by approximately $5.8 million, to $541.4 million as compared to $535.6 million at December 31, 2012. In the Company’s market area, desirable lending opportunities remain limited at this time, making meaningful loan growth challenging.

The Company

Prior to June 5, 2013, HopFed Bancorp, Inc. was a federally chartered savings and loan holding company with Heritage Bank as its wholly owned thrift subsidiary. On June 5, 2013, Heritage Bank’s legal name was changed to Heritage Bank USA, Inc. and its charter was converted to a Kentucky state chartered commercial bank with the Kentucky Department of Financial Institutions and the Federal Deposit Insurance Corporation as its regulators. Also on June 5, 2013, HopFed Bancorp, Inc. became a non-member federally chartered commercial bank holding company regulated by the Federal Reserve Board. HopFed Bancorp, Inc. is the holding company for Heritage Bank USA, Inc. 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 Company has two additional operating divisions including Heritage Wealth Management of Murray, Kentucky, Hopkinsville, Kentucky, 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 that are originated for the secondary market 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 USA, Inc. 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. The Company undertakes no duty to update any forward-looking statement to conform the statement to actual results or changes in the Company’s expectations. Certain tabular presentations may not reconcile because of rounding.

 

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HFBC Reports Third Quarter Results

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October 28, 2013

 

HOPFED BANCORP, INC.

Consolidated Balance Sheets

(Dollars in thousands)

 

Assets		September 30, 2013				December 31, 2012
		(unaudited)
Cash and due from banks		$	24,566				31,563
Interest-earning deposits			3,777				5,613
Cash and cash equivalents			28,343				37,176
Federal Home Loan Bank stock, at cost			4,428				4,428
Securities available for sale			322,776				356,345
Loans receivable, net of allowance for loan losses of $9,418 at September 30, 2013, and $10,648 at December 31, 2012			532,013				524,985
Accrued interest receivable			5,042				5,398
Real estate and other assets owned			1,439				1,548
Bank owned life insurance			9,574				9,323
Premises and equipment, net			21,707				22,557
Deferred tax assets			4,033				—
Intangible asset			162				292
Other assets			5,936				5,637
Total assets		$	935,453				967,689
Liabilities and Stockholders’ Equity
Liabilities:
Deposits:
Non-interest-bearing accounts		$	98,437				94,083
Interest-bearing accounts
NOW accounts			155,655				147,047
Savings and money market accounts			89,869				81,643
Other time deposits			382,976				437,092
Total deposits			726,937				759,865
Advances from Federal Home Loan Bank			47,276				43,741
Repurchase agreements			48,182				43,508
Subordinated debentures			10,310				10,310
Advances from borrowers for taxes and insurance			822				396
Dividends payable			326				180
Deferred tax liability			—				568
Accrued expenses and other liabilities			4,882				4,122
Total liabilities			838,735				862,690

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

 

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HFBC Reports Third Quarter Results

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October 28, 2013

 

HOPFED BANCORP, INC.

Consolidated Balance Sheets, Continued

(Dollars in thousands)

 

		September 30, 2013				December 31, 2012
		(unaudited)
Stockholders’ equity
Preferred stock, par value $0.01 per share; authorized - 500,000 shares; no shares outstanding at September 30, 2013, and 18,400 shares issued and outstanding at December 31, 2012			—				—
Common stock, par value $.01 per share; authorized 15,000,000 shares; 7,927,287 issued and 7,574,267 outstanding at September 30, 2013, and 7,905,728 issued and 7,502,812 outstanding at December 31, 2012			79				79
Common stock warrant			—				556
Additional paid-in-capital			58,262				76,288
Retained earnings			43,916				41,829
Treasury stock- preferred (at cost, none at September 30, 2013, and 18,400 shares at December 31, 2012)			—				(18,400	)
Treasury stock- common (at cost, 453,020 shares at September 30, 2013, and 402,916 shares at December 31, 2012)			(5,635	)			(5,076	)
Accumulated other comprehensive income, net of taxes			96				9,723
Total stockholders’ equity			96,718				104,999
Total liabilities and stockholders’ equity		$	935,453				967,689

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

 

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HFBC Reports Third Quarter Results

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October 28, 2013

 

HOPFED BANCORP, INC.

Consolidated Condensed Statements of Income

(Dollars in thousands)

Unaudited

 

		For the Three Month Periods Ended September 30,								For the Nine Month Periods Ended September 30,
		2013				2012				2013				2012
Interest and dividend income:
Loans receivable			6,605				7,403				20,163				22,617
Investment in securities, taxable			1,641				2,014				5,237				6,823
Nontaxable securities available for sale			544				573				1,676				1,695
Interest-earning deposits			5				6				18				20
Total interest and dividend income			8,795				9,996				27,094				31,155
Interest expense:
Deposits			1,622				2,640				5,604				8,279
Advances from Federal Home Loan Bank			445				1,017				1,335				2,155
Repurchase agreements			245				236				717				721
Subordinated debentures			184				185				548				553
Total interest expense			2,496				4,078				8,204				11,708
Net interest income			6,299				5,918				18,890				19,447
Provision for loan losses			426				506				1,208				1,775
Net interest income after provision for loan losses			5,873				5,412				17,682				17,672
Non-interest income:
Service charges			949				963				2,739				2,874
Merchant card income			245				212				727				620
Mortgage origination revenue			147				218				559				684
Gain on sale of securities			201				944				1,617				1,618
Other than temporary impairment			(400	)			—				(400	)			—
Income from bank owned life insurance			88				80				250				238
Financial services commission			314				280				958				778
Other operating income			225				200				630				641
Total non-interest income			1,769				2,897				7,080				7,453

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

 

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HFBC Reports Third Quarter Results

Page 10

October 28, 2013

 

HOPFED BANCORP, INC.

Consolidated Condensed Statements of Income, Continued

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

(Unaudited)

 

		For the Three Month Periods Ended September 30,								For the Nine Month Periods Ended September 30,
		2013				2012				2013				2012
Non-interest expenses:
Salaries and benefits			3,735				3,447				11,297				10,515
Occupancy			878				875				2,605				2,614
Data processing			652				610				1,948				1,863
State bank tax			143				161				432				485
Intangible amortization			33				48				130				178
Professional services			493				435				1,435				1,320
Deposit insurance and examination			137				419				548				1,272
Advertising expense			292				324				933				952
Postage and communications			149				146				427				444
Supplies expense			159				64				388				280
Loss on disposal of equipment			—				5				—				13
(Gain) loss on real estate owned			(54	)			68				(7	)			287
Real estate owned expenses			78				19				186				90
Other operating			289				350				1,060				1,196
Total non-interest expense			6,984				6,971				21,382				21,509
Income before income tax expense			658				1,338				3,380				3,616
Income tax expense			122				263				694				652
Net income			536				1,075				2,686				2,964
Less:
Dividend on preferred shares			—				229				—				689
Accretion dividend on preferred shares			—				27				—				83
Net income available to common shareholders		$	536			$	819			$	2,686			$	2,192
Net income available to common shareholders
Per share, basic		$	0.07			$	0.11			$	0.36			$	0.29
Per share, diluted		$	0.07			$	0.11			$	0.36			$	0.29
Dividend per share		$	0.04			$	0.02			$	0.08			$	0.06
Weighted average shares outstanding - basic			7,483,582				7,487,283				7,483,606				7,485,571
Weighted average shares outstanding - diluted			7,483,582				7,485,283				7,483,606				7,485,571

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

 

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HFBC Reports Third Quarter Results

Page 11

October 28, 2013

 

HOPFED BANCORP, INC.

Selected Financial Data

(Dollars in thousands)

 

		For the Three Months Ended
		9/30/2013				6/30/2013				Change from Prior Quarter
Interest and dividend income:
Loans receivable			6,605				6,676				(71	)
Investment in securities, taxable			1,641				1,764				(123	)
Nontaxable securities available for sale			544				547				(3	)
Interest-earning deposits			5				7				(2	)
Total interest and dividend income			8,795				8,994				(199	)
Interest expense:
Deposits			1,622				1,936				(314	)
Advances from Federal Home Loan Bank			445				446				(1	)
Repurchase agreements			245				230				15
Subordinated debentures			184				182				2
Total interest expense			2,496				2,794				(298	)
Net interest income			6,299				6,200				99
Provision for loan losses			426				406				20
Net interest income after provision for loan losses			5,873				5,794				79
Non-interest income:
Service charges			949				937				12
Merchant card income			245				259				(14	)
Mortgage origination revenue			147				212				(65	)
Gain on sale of securities			201				789				(588	)
Other than temporary impairment			(400	)			—				(400	)
Income from bank owned life insurance			88				87				1
Financial services commission			314				347				(33	)
Other operating income			225				197				28
Total non-interest income			1,769				2,828				(1,059	)

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

 

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HFBC Reports Third Quarter Results

Page 12

October 28, 2013

 

HOPFED BANCORP, INC.

Selected Financial Data

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

 

		For the Three Months Ended
		9/30/2013				6/30/2013				Change from Prior Quarter
Non-interest expenses:
Salaries and benefits		$	3,735				3,714				21
Occupancy expense			878				882				(4	)
Data processing expense			652				646				6
State deposit tax			143				147				(4	)
Intangible amortization expense			33				48				(15	)
Professional services expense			493				549				(56	)
Deposit insurance and examination expense			137				179				(42	)
Advertising expense			292				308				(16	)
Postage and communications expense			149				139				10
Supplies expense			159				93				66
(Gain) Loss on sale of real estate owned			(54	)			12				(66	)
Real estate owned expenses			78				32				46
Other operating expenses			289				375				(86	)
							-86
Total non-interest expense			6,984				7,038				(140	)
Income before income tax expense			658				1,584				(926	)
Income tax expense			122				332				(210	)
Net income			536				1,252				(716	)
Net income (loss) available (attributable) to common stockholders
Per share, basic		$	0.07			$	0.16				(0.09	)
Per share, diluted		$	0.07			$	0.16				(0.09	)
Dividend per share		$	0.02			$	0.02
Weighted average shares outstanding - basic			7,483,582				7,488,906
Weighted average shares outstanding - diluted			7,483,582				7,488,906

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

 

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HFBC Reports Third Quarter Results

Page 13

October 28, 2013

 

HOPFED BANCORP, INC.

Selected Financial Data

The table below adjusts tax-free investment income for the nine month periods ended September 30, 2013, and September 30, 2012, by $811,000 and $798,000, respectively; for a tax equivalent rate using a cost of funds rate of 1.40% for the nine month period ended September 30, 2013, and 1.80% for the nine month period ended September 30, 2012. The table adjusts tax-free loan income by $6,000 for nine month period ended September 30, 2013, and $7,000 for the nine month period ended September 30, 2012, for a tax equivalent rate using the same cost of funds rate:

 

		Average Balance 9/30/2013				Income and Expense 9/30/2013				Average Rates 9/30/2013				Average Balance 9/30/2012				Income and Expense 9/30/2012				Average Rates 9/30/2012
		(Dollars in Thousands, Except Percentages)
Loans		$	527,054			$	20,169				5.10	%		$	545,464			$	22,624				5.53	%
Investments AFS taxable			275,934				5,237				2.53	%			322,091				6,823				2.82	%
Investment AFS tax free			71,269				2,488				4.66	%			67,714				2,493				4.91	%
Interest bearing deposits			8,851				18				0.27	%			14,918				20				0.18	%
Total interest earning assets			883,108				27,912				4.21	%			950,187				31,960				4.48	%
Other assets			79,779												87,878
Total assets		$	962,887											$	1,038,065
Retail time deposits		$	370,917				4,018				1.44	%		$	444,553				6,538				1.96	%
Brokered deposits			44,002				525				1.59	%			52,558				754				1.91	%
Now accounts			163,493				952				0.78	%			145,015				888				0.82	%
MMDA and savings accounts			84,823				109				0.17	%			73,983				99				0.18	%
FHLB borrowings			43,602				1,335				4.08	%			61,336				2,155				4.68	%
Repurchase agreements			41,556				717				2.30	%			40,968				721				2.35	%
Subordinated debentures			10,310				548				7.09	%			10,310				553				7.15	%
Total interest bearing liabilities			758,703				8,204				1.44	%			828,723				11,708				1.88	%
Non-interest bearing deposits			94,695												82,800
Other liabilities			4,361												5,717
Shareholders equity			105,128												120,825
Total liabilities and shareholder equity		$	962,887											$	1,038,065
Net interest income						$	19,708											$	20,252
Interest rate spread											2.77	%											2.60	%
Net interest margin							2.98	%											2.84	%

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

 

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HFBC Reports Third Quarter Results

Page 14

October 28, 2013

 

HOPFED BANCORP, INC.

Selected Financial Data

The table below adjusts tax-free investment income for the three month periods ended September 30, 2013, and September 30, 2012, by $264,000 and $273,000, respectively; for a tax equivalent rate using a cost of funds rate of 1.35% for the three month period ended September 30, 2013, and 2.00% for the three month period ended September 30, 2012. The table adjusts tax-free loan income by $2,000 for three month periods ended September 30, 2013, and September 30, 2012, respectively, for a tax equivalent rate using the same cost of funds rate:

 

		Average Balance 9/30/2013				Income & Expense 9/30/2013				Average Rates 9/30/2013				Average Balance 9/30/2012				Income & Expense 9/30/2012				Average Rates 9/30/2012
		(Dollars in Thousands, Except Percentages)
Loans		$	530,086			$	6,607				4.99	%		$	540,811			$	7,405				5.48	%
Investments AFS taxable			260,326				1,641				2.52	%			308,578				2,014				2.61	%
Investment AFS tax free			66,882				808				4.83	%			69,420				846				4.87	%
Fed Funds			7,237				5				0.28	%			10,555				6				0.23	%
Total interest earning assets			864,531				9,061				4.19	%			929,364				10,271				4.42	%
Other assets			75,930												87,537
Total assets		$	940,461											$	1,016,901
Retail time deposits		$	352,291				1,141				1.30	%		$	430,568				2,064				1.92	%
Brokered deposits			43,353				163				1.50	%			49,181				258				2.10	%
Now accounts			159,419				279				0.70	%			140,424				285				0.81	%
MMDA and savings accounts			87,687				39				0.18	%			75,031				33				0.18	%
FHLB borrowings			43,634				445				4.08	%			58,962				1,017				6.90	%
Repurchase agreements			43,448				245				2.26	%			39,093				236				2.41	%
Subordinated debentures			10,310				184				7.14	%			10,310				185				7.18	%
Total interest bearing liabilities			740,142				2,496				1.35	%			803,569				4,078				2.03	%
Non-interest bearing deposits			96,343												84,079
Other liabilities			5,013												6,284
Stockholders’ equity			98,963												122,969
Total liabilities and stockholders’ equity		$	940,461											$	1,016,901
Net interest income						$	6,565											$	6,193
Interest rate spread											2.84	%											2.39	%
Net yield on interest earning assets							3.04	%											2.67	%

 

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