Attached files
| file | filename |
|---|---|
| 8-K - 8-K - HOPFED BANCORP INC | d769205d8k.htm |
Exhibit 99.1
NEWS
| CONTACT: | John E. Peck President and CEO (270) 885-1171 |
HOPFED BANCORP, INC. REPORTS SECOND QUARTER RESULTS
HOPKINSVILLE, Ky. (July 31, 2014) – HopFed Bancorp, Inc. (NASDAQ: HFBC) (the “Company”), the holding company for Heritage Bank USA, Inc. (the “Bank”), today reported results for the three and six month periods ended June 30, 2014. For the three month period ended June 30, 2014, the Company’s net income was $925,000, or $0.13 per share, basic and diluted, compared to net income of $1.2 million, or $0.16 per share basic and diluted, for the three month period ended June 30, 2013. For the six month period ended June 30, 2014, the Company’s net income was $1.3 million, or $0.17 per share, basic and diluted, compared to net income of $2.2 million, or $0.29 per share basic and diluted, for the six month period ended June 30, 2013.
Commenting on the second quarter results, John E. Peck, President and Chief Executive Officer, said, “The Company’s net interest income for the three month period ended June 30, 2014, increased by $180,000 and $60,000, respectively, as compared to the three month periods ended June 30, 2013, and March 31, 2014, respectively. At June 30, 2014, net loans totaled $538.1 million, a decline of $5.5 million as compared to December 31, 2013, and an increase of $2.1 million as compared to March 31, 2014.”
Mr. Peck continued, “During the three month period ended June 30, 2014, the Company recaptured $261,000 of provision for loan loss expense into earnings. The provision reduction is possible due to the continued reduction of non-accrual loans and improved charge off trends. At June 30, 2014, non-accrual loans were $8.7 million, or 1.60% of total loans. Also at June 30, 2014, the Company’s allowance for loan loss account total $8.4 million, or 95.6% of non-accrual loans. The Company’s classified loans declined to $37.7 million, approximately 34% of risk based capital. For the six month period ended June 30, 2014, the Company’s net loan charge offs were $448,000, or 0.16% of average loan balances,” Mr. Peck concluded.
Financial Highlights
| • | At June 30, 2014, the Company’s tangible book value was $13.51 per share and tangible common equity ratio was 10.52%. The Bank’s estimated Tier 1 Leverage Ratio and Total Risk Based Capital Ratio at June 30, 2014, were 10.95% and 18.60%, respectively. The Company’s consolidated Tier 1 Leverage Ratio and Total Risk Based Capital Ratio at June 30, 2014, were 11.29% and 19.07%, respectively. |
| • | The Company purchased 62,470 shares of its common stock in the quarter at a weighted average price of $11.50 per share. The Company has purchased a total of 72,856 shares since December 31, 2013, at a weighted average price of $11.51 per share. At June 30, 2014, the Company has purchased 149,324 shares of its common stock under the current repurchase program and is authorized to repurchase an additional 225,676 shares of its common stock under the currently approved repurchase plan. |
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HFBC Reports Second Quarter Results
Page 2
July 31, 2014
Asset Quality
At June 30, 2014, the Company’s level of non-accrual loans totaled $8.7 million, as compared to $10.1 million at December 31, 2013. A summary of non-accrual loans at June 30, 2014, and December 31, 2013, is as follows:
| June 30, 2014 | December 31, 2013 | |||||||
| (Dollars in Thousands) | ||||||||
| One-to-four family mortgages |
$ | 524 | $ | 945 | ||||
| Home equity line of credit |
29 | 1 | ||||||
| Junior lien |
— | 2 | ||||||
| Construction |
— | 175 | ||||||
| Land |
1,217 | 1,218 | ||||||
| Non-residential real estate |
6,520 | 6,546 | ||||||
| Farmland |
13 | 703 | ||||||
| Consumer loans |
1 | 13 | ||||||
| Commercial loans |
431 | 463 | ||||||
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| Total non-accrual loans |
$ | 8,735 | $ | 10,066 | ||||
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At June 30, 2014, non-accrual loans plus other real estate owned totaled $10.2 million, or 1.08% of total assets. At December 31, 2013, non-accrual loans plus other real estate owned totaled $11.7 million, or 1.21% of total assets. A summary of the activity in other real estate owned for the six month period ended June 30, 2014, is as follows:
| Activity During 2014 | ||||||||||||||||||||||||
| Balance 12/31/2013 |
Foreclosures | Proceeds | Reduction in Values |
Gain (Loss) on Sale |
Balance 6/30/2014 |
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| (Dollars in Thousands) | ||||||||||||||||||||||||
| One-to-four family mortgages |
$ | 350 | 190 | (178 | ) | (5 | ) | (1 | ) | $ | 356 | |||||||||||||
| Land |
1,124 | — | (71 | ) | (100 | ) | (19 | ) | 934 | |||||||||||||||
| Non-residential real estate |
200 | — | — | — | — | 200 | ||||||||||||||||||
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| Total |
$ | 1,674 | 190 | (249 | ) | (105 | ) | (20 | ) | $ | 1,490 | |||||||||||||
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The Company had no loans classified as performing Troubled Debt Restructurings (“TDRs”) at June 30, 2014, and December 31, 2013. There were no loans added or removed from TDR status during the three month period ended June 30, 2014.
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HFBC Reports Second Quarter Results
Page 3
July 31, 2014
Asset Quality (continued)
At June 30, 2014, the Company’s level of loans classified as substandard was $37.7 million as compared to $42.6 million at December 31, 2013. At June 30, 2014, the Company’s classified loan to risk-based capital ratio was 33.9%. The Company’s specific reserve for impaired loans was $1.5 million at June 30, 2014, and $1.9 million at December 31, 2013. A summary of the level of classified loans at June 30, 2014, is as follows:
| Specific | Allowance | |||||||||||||||||||||||||||
| Allowance | for | |||||||||||||||||||||||||||
| June 30, 2014 |
Special | Impaired Loans | for | Performing | ||||||||||||||||||||||||
| Pass | Mention | Substandard | Doubtful | Total | Impairment | Loans | ||||||||||||||||||||||
| (Dollars in Thousands) | ||||||||||||||||||||||||||||
| One-to-four family mortgages |
$ | 147,030 | 204 | 5,147 | — | 152,381 | 303 | 1,420 | ||||||||||||||||||||
| Home equity line of credit |
32,594 | — | 612 | — | 33,206 | — | 237 | |||||||||||||||||||||
| Junior liens |
2,627 | 41 | 20 | — | 2,688 | — | 25 | |||||||||||||||||||||
| Multi-family |
23,093 | 2,928 | 2,221 | — | 28,242 | — | 330 | |||||||||||||||||||||
| Construction |
13,327 | — | — | — | 13,327 | — | — | |||||||||||||||||||||
| Land |
16,873 | 370 | 12,336 | — | 29,579 | 491 | 574 | |||||||||||||||||||||
| Non-residential real estate |
139,868 | 4,829 | 13,434 | — | 158,131 | 636 | 2,216 | |||||||||||||||||||||
| Farmland |
43,636 | 343 | 1,637 | — | 45,616 | 33 | 841 | |||||||||||||||||||||
| Consumer loans |
15,201 | — | 363 | — | 15,564 | 83 | 465 | |||||||||||||||||||||
| Commercial loans |
65,802 | 657 | 1,915 | — | 68,374 | — | 699 | |||||||||||||||||||||
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| Total |
$ | 500,051 | 9,372 | 37,685 | — | 547,108 | 1,546 | 6,807 | ||||||||||||||||||||
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Net Interest Income
For the three month period ended June 30, 2014, the Company’s net interest income was $6.4 million, compared to $6.3 million for the three month period ended March 31, 2014, and $6.2 million for the three month period ended June 30, 2013. For the three month period ended June 30, 2014, the Company’s net interest margin was 3.02%, as compared to 3.00% for the three month period ended March 31, 2014, and 2.90% for the three month period ended June 30, 2013.
The small increase in net interest income was the result of lower interest expense on deposits, offsetting a decline in interest income. For the three month period ended June 30, 2014, total interest income was $8.7 million, a decline of $260,000 compared to the three month period ended June 30, 2013. For the three month period ended June 30, 2014, the Company’s interest expense on deposits was $1.5 million as compared to $1.9 million for the three month period ended June 30, 2013.
For the six month period ended June 30, 2014, the Company’s net interest income was $12.7 million, as compared to $12.6 million for the six month period ended June 30, 2013. For the six month period ended June 30, 2014, the Company’s interest expense on deposits was $3.0 million as compared to $4.0 million for the six month period ended June 30, 2013. For the six month period ended June 30, 2014, the Company’s net interest margin was 3.01%, as compared to 2.94% for the six month period ended June 30, 2013.
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HFBC Reports Second Quarter Results
Page 4
July 31, 2014
Non-interest Income
Non-interest income for the three month period ended June 30, 2014, was $1.9 million, as compared to $2.8 million for the three month period ended June 30, 2013. The decline in non-interest income for the three month period ended June 30, 2014, as compared to the three month period ended June 30, 2013, was primarily the result of a $548,000 decline in gains on the sale of the securities and a $79,000 decline of mortgage origination income. For the three month period ended June 30, 2014, financial services income declined by $179,000 as compared to the three month period ended June 30, 2013, due to the sale of the Company’s insurance assets in December 2013.
On a linked quarter basis, non-interest income increased by $347,000 in the three month period ended June 30, 2014. The increase was largely the result of lower interest rates, providing for a $75,000 increase in mortgage origination revenue and a $228,000 increase in realized gains on the sale of securities. Also on a linked quarter basis, service charge revenue increased by $70,000.
For the six month period ended June 30, 2014, non-interest income was $3.5 million, a decline of $1.8 million as compared to the six month period ended June 30, 2013. At June 30, 2014, the Company’s recognized gains on the sale of securities of $254,000 as compared to $1.4 million for the six month period ended June 30, 2013. During the same period, mortgage origination income declined by $221,000. The decline in both mortgage origination income and gains on sales of securities for the three and six month period ended June 30, 2014, as compared to the same periods in 2013, was largely the result of a 1.25% increase in the ten year treasury bond during the three month period ended June 30, 2013.
For the six month period ended June 30, 2014, service charge income declined by $164,000 as compared to the six month period ended June 30, 2013. For the six month period ended June 30, 2014, financial services income was $374,000, as compared to $644,000 for the six month period ended June 30, 2013. The decline in financial services income for the three and six month periods ended June 30, 2014, as compared to the same periods in 2013 is largely the result of the Company’s sale of its insurance assets in December 2013. For the three month period ended June 30, 2013, the Company’s financial services income was $347,000, which included the Company’s insurance assets in the amount of $233,000.
Non-interest Expense
On a linked quarter basis, the Company’s non-interest expenses increased by $123,000. The most significant increases in operating expenses were a $152,000 increase in bank franchise taxes, a $54,000 increase in professional services expense and $79,000 in losses on the sale of real estate. The most significant reductions in operating expense line items were to salaries and benefits of $103,000 and $101,000 in occupancy expenses.
For the three month period ended June 30, 2014, non-interest expenses increased by $323,000 as compared to the three month period ended June 30, 2013. At June 30, 2014, the Company’s bank franchise taxes increased by $251,000 and our data processing expenses increased by $90,000, each as compared to the three month period ended June 30, 2013. For the three month period ended June 30, 2014, the Company’s combined losses and expenses related to other real estate owned was $194,000 as compared to $44,000 for the three month period ended June 30, 2013.
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HFBC Reports Second Quarter Results
Page 5
July 31, 2014
Balance Sheet
At June 30, 2014, consolidated assets were $949.9 million, a decline of $23.7 million as compared to December 31, 2013. For the six month period ended June 30, 2014, the Company experienced a $30.9 million decrease in time deposits, a $6.0 million decrease in FHLB borrowings, a $26.0 million decrease in cash balances and a $5.1 million decrease in net loan balances. The Company invested excess liquidity in securities as the balance of available for sale securities increased $12.7 million to $331.6 million.
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. 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 Second Quarter Results
Page 6
July 31, 2014
HOPFED BANCORP, INC.
Consolidated Condensed Balance Sheets
(Dollars in thousands)
| June 30, 2014 | December 31, 2013 | |||||||
| (unaudited) | ||||||||
| Assets | ||||||||
| Cash and due from banks |
$ | 24,125 | 37,229 | |||||
| Interest-earning deposits |
5,766 | 18,619 | ||||||
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| Cash and cash equivalents |
29,891 | 55,848 | ||||||
| Federal Home Loan Bank stock, at cost |
4,428 | 4,428 | ||||||
| Securities available for sale |
331,639 | 318,910 | ||||||
| Loans held for sale |
464 | — | ||||||
| Loans receivable, net of allowance for loan losses of $8,353 at June 30, 2014, and $8,682 at December 31, 2013 |
538,099 | 543,632 | ||||||
| Accrued interest receivable |
4,518 | 5,233 | ||||||
| Real estate and other assets owned |
1,490 | 1,674 | ||||||
| Bank owned life insurance |
9,837 | 9,677 | ||||||
| Premises and equipment, net |
22,896 | 23,108 | ||||||
| Deferred tax assets |
1,942 | 4,610 | ||||||
| Intangible asset |
65 | 130 | ||||||
| Other assets |
4,677 | 6,399 | ||||||
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| Total assets |
$ | 949,946 | 973,649 | |||||
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| Liabilities and Stockholders’ Equity |
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| Liabilities: |
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| Deposits: |
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| Non-interest-bearing accounts |
$ | 103,550 | 105,252 | |||||
| Interest-bearing accounts |
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| Interest-bearing checking accounts |
194,659 | 183,643 | ||||||
| Savings and money market accounts |
93,939 | 92,106 | ||||||
| Other time deposits |
351,121 | 381,996 | ||||||
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| Total deposits |
743,269 | 762,997 | ||||||
| Advances from Federal Home Loan Bank |
40,776 | 46,780 | ||||||
| Repurchase agreements |
51,125 | 52,759 | ||||||
| Subordinated debentures |
10,310 | 10,310 | ||||||
| Advances from borrowers for taxes and insurance |
723 | 521 | ||||||
| Dividends payable |
308 | 326 | ||||||
| Accrued expenses and other liabilities |
3,475 | 4,239 | ||||||
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| Total liabilities |
$ | 849,986 | 877,932 | |||||
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This information is preliminary and based on Company data available at the time of the presentation.
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HFBC Reports Second Quarter Results
Page 7
July 31, 2014
HOPFED BANCORP, INC.
Consolidated Condensed Balance Sheets, Continued
(Dollars in thousands)
| June 30, 2014 | December 31, 2013 | |||||||
| (unaudited) | ||||||||
| Stockholders’ equity: |
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| Preferred stock, par value $0.01 per share; authorized - 500,000 shares; no shares issued and outstanding at June 30, 2014, and December 31, 2013 |
— | — | ||||||
| Common stock, par value $.01 per share; authorized 15,000,000 shares; 7,947,525 issued and 7,395,285 outstanding at June 30, 2014, and 7,927,287 issued and 7,447,903 outstanding at December 31, 2013 |
79 | 79 | ||||||
| Additional paid-in-capital |
58,367 | 58,302 | ||||||
| Retained earnings |
45,382 | 44,694 | ||||||
| Treasury stock- common (at cost, 552,240 shares at June 30, 2014, and 479,384 shares at December 31, 2013) |
(6,767 | ) | (5,929 | ) | ||||
| Accumulated other comprehensive income (loss), net of taxes |
2,899 | (1,429 | ) | |||||
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| Total stockholders’ equity |
99,960 | 95,717 | ||||||
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| Total liabilities and stockholders’ equity |
$ | 949,946 | 973,649 | |||||
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This information is preliminary and based on Company data available at the time of the presentation.
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HFBC Reports Second Quarter Results
Page 8
July 31, 2014
HOPFED BANCORP, INC.
Consolidated Condensed Statements of Income
(Dollars in thousands)
Unaudited
| For the Three Month Periods | For the Six Month Periods | |||||||||||||||
| Ended June 30, | Ended June 30, | |||||||||||||||
| 2014 | 2013 | 2014 | 2013 | |||||||||||||
| Interest income: |
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| Loans receivable |
6,503 | 6,676 | 12,830 | 13,558 | ||||||||||||
| Securities available for sale - taxable |
1,694 | 1,764 | 3,473 | 3,596 | ||||||||||||
| Securities available for sale - nontaxable |
531 | 547 | 1,075 | 1,132 | ||||||||||||
| Interest-earning deposits |
6 | 7 | 14 | 13 | ||||||||||||
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| Total interest income |
8,734 | 8,994 | 17,392 | 18,299 | ||||||||||||
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| Interest expense: |
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| Deposits |
1,488 | 1,936 | 2,959 | 3,982 | ||||||||||||
| Advances from Federal Home Loan Bank |
428 | 446 | 862 | 890 | ||||||||||||
| Repurchase agreements |
245 | 230 | 494 | 472 | ||||||||||||
| Subordinated debentures |
193 | 182 | 377 | 364 | ||||||||||||
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| Total interest expense |
2,354 | 2,794 | 4,692 | 5,708 | ||||||||||||
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| Net interest income |
6,380 | 6,200 | 12,700 | 12,591 | ||||||||||||
| Provision for loan losses |
(261 | ) | 406 | 119 | 782 | |||||||||||
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| Net interest income after provision for loan losses |
6,641 | 5,794 | 12,581 | 11,809 | ||||||||||||
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| Non-interest income: |
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| Service charges |
848 | 937 | 1,626 | 1,790 | ||||||||||||
| Merchant card income |
276 | 259 | 535 | 482 | ||||||||||||
| Mortgage origination revenue |
133 | 212 | 191 | 412 | ||||||||||||
| Gain on sale of securities |
241 | 789 | 254 | 1,416 | ||||||||||||
| Income from bank owned life insurance |
66 | 87 | 161 | 162 | ||||||||||||
| Financial services commission |
168 | 347 | 374 | 644 | ||||||||||||
| Other operating income |
213 | 197 | 402 | 405 | ||||||||||||
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| Total non-interest income |
1,945 | 2,828 | 3,543 | 5,311 | ||||||||||||
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This information is preliminary and based on Company data available at the time of the presentation.
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HFBC Reports Second Quarter Results
Page 9
July 31, 2014
HOPFED BANCORP, INC.
Consolidated Condensed Statements of Income, Continued
(Dollars in thousands, except share and per share data)
(Unaudited)
| For the Three Month Periods | For the Six Month Periods | |||||||||||||||
| Ended June 30, | Ended June 30, | |||||||||||||||
| 2014 | 2013 | 2014 | 2013 | |||||||||||||
| Non-interest expenses: |
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| Salaries and benefits |
3,692 | 3,714 | 7,487 | 7,562 | ||||||||||||
| Occupancy |
808 | 882 | 1,717 | 1,727 | ||||||||||||
| Data processing |
736 | 646 | 1,464 | 1,296 | ||||||||||||
| Bank franchise tax |
398 | 147 | 644 | 289 | ||||||||||||
| Intangible amortization |
33 | 48 | 65 | 97 | ||||||||||||
| Professional services |
341 | 549 | 628 | 942 | ||||||||||||
| Deposit insurance and examination |
183 | 179 | 380 | 411 | ||||||||||||
| Advertising |
341 | 308 | 655 | 641 | ||||||||||||
| Postage and communications |
140 | 139 | 283 | 278 | ||||||||||||
| Supplies |
158 | 93 | 303 | 229 | ||||||||||||
| Loss on real estate owned |
102 | 12 | 125 | 47 | ||||||||||||
| Real estate owned expense |
92 | 32 | 222 | 108 | ||||||||||||
| Other operating expenses |
423 | 375 | 798 | 771 | ||||||||||||
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| Total non-interest expense |
7,447 | 7,124 | 14,771 | 14,398 | ||||||||||||
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| Income before income tax expense |
1,139 | 1,498 | 1,353 | 2,722 | ||||||||||||
| Income tax expense |
214 | 332 | 74 | 572 | ||||||||||||
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| Net income |
925 | 1,166 | 1,279 | 2,150 | ||||||||||||
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| Net income per share: |
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| Basic |
$ | 0.13 | $ | 0.16 | $ | 0.17 | $ | 0.29 | ||||||||
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| Diluted |
$ | 0.13 | $ | 0.16 | $ | 0.17 | $ | 0.29 | ||||||||
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| Dividend per share |
$ | 0.04 | $ | 0.02 | $ | 0.08 | $ | 0.04 | ||||||||
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| Weighted average shares outstanding - basic |
7,376,726 | 7,488,906 | 7,396,627 | 7,488,788 | ||||||||||||
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| Weighted average shares outstanding - diluted |
7,376,726 | 7,488,906 | 7,396,627 | 7,488,788 | ||||||||||||
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This information is preliminary and based on Company data available at the time of the presentation.
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HFBC Reports Second Quarter Results
Page 10
July 31, 2014
HOPFED BANCORP, INC.
Selected Financial Data
(Dollars in thousands)
| For the Three Months Ended |
Change from Prior Quarter |
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| 6/30/2014 | 3/31/2014 | |||||||||||
| Interest income: |
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| Loans receivable |
$ | 6,503 | 6,327 | 176 | ||||||||
| Securities available for sale - taxable |
1,694 | 1,779 | (85 | ) | ||||||||
| Securities available for sale - nontaxable |
531 | 544 | (13 | ) | ||||||||
| Interest-earning deposits |
6 | 8 | (2 | ) | ||||||||
|
|
|
|
|
|
|
|||||||
| Total interest income |
8,734 | 8,658 | 76 | |||||||||
|
|
|
|
|
|
|
|||||||
| Interest expense: |
||||||||||||
| Deposits |
1,488 | 1,471 | 17 | |||||||||
| Advances from Federal Home Loan Bank |
428 | 434 | (6 | ) | ||||||||
| Repurchase agreements |
245 | 249 | (4 | ) | ||||||||
| Subordinated debentures |
193 | 184 | 9 | |||||||||
|
|
|
|
|
|
|
|||||||
| Total interest expense |
2,354 | 2,338 | 16 | |||||||||
|
|
|
|
|
|
|
|||||||
| Net interest income |
6,380 | 6,320 | 60 | |||||||||
| Provision for loan losses |
(261 | ) | 380 | (641 | ) | |||||||
|
|
|
|
|
|
|
|||||||
| Net interest income after provision for loan losses |
6,641 | 5,940 | 701 | |||||||||
|
|
|
|
|
|
|
|||||||
| Non-interest income: |
||||||||||||
| Service charges |
848 | 778 | 70 | |||||||||
| Merchant card income |
276 | 259 | 17 | |||||||||
| Mortgage orgination revenue |
133 | 58 | 75 | |||||||||
| Gain on sale of securities |
241 | 13 | 228 | |||||||||
| Income from bank owned life insurance |
66 | 95 | (29 | ) | ||||||||
| Financial services commission |
168 | 206 | (38 | ) | ||||||||
| Other operating income |
213 | 189 | 24 | |||||||||
|
|
|
|
|
|
|
|||||||
| Total non-interest income |
1,945 | 1,598 | 347 | |||||||||
|
|
|
|
|
|
|
|||||||
This information is preliminary and based on Company data available at the time of the presentation.
-MORE-
HFBC Reports Second Quarter Results
Page 11
July 31, 2014
HOPFED BANCORP, INC.
Selected Financial Data
(Dollars in thousands, except share and per share data)
| Data processing |
736 | 728 | 8 | |||||||||
| Bank franchise tax |
398 | 246 | 152 | |||||||||
| Intangible amortization |
33 | 32 | 1 | |||||||||
| Professional services |
341 | 287 | 54 | |||||||||
| Deposit insurance and examination |
183 | 197 | (14 | ) | ||||||||
| Advertising |
341 | 314 | 27 | |||||||||
| Postage and communications |
140 | 143 | (3 | ) | ||||||||
| Supplies |
158 | 145 | 13 | |||||||||
| Loss on real estate owned |
102 | 23 | 79 | |||||||||
| Real estate owned |
92 | 130 | (38 | ) | ||||||||
| Other operating |
423 | 375 | 48 | |||||||||
|
|
|
|
|
|
|
|||||||
| Total non-interest expense |
7,447 | 7,324 | 123 | |||||||||
|
|
|
|
|
|
|
|||||||
| Income before income tax expense |
1,139 | 214 | 925 | |||||||||
| Income tax expense |
214 | (140 | ) | 354 | ||||||||
|
|
|
|
|
|
|
|||||||
| Net income |
$ | 925 | $ | 354 | $ | 571 | ||||||
|
|
|
|
|
|
|
|||||||
| Net income per share: |
||||||||||||
| Basic |
$ | 0.13 | $ | 0.05 | $ | 0.08 | ||||||
|
|
|
|
|
|
|
|||||||
| Fully diluted |
$ | 0.13 | $ | 0.05 | $ | 0.08 | ||||||
|
|
|
|
|
|
|
|||||||
| Dividend per share |
$ | 0.04 | $ | 0.04 | ||||||||
|
|
|
|
|
|||||||||
| Weighted average shares outstanding - basic |
7,376,726 | 7,416,716 | ||||||||||
|
|
|
|
|
|||||||||
| Weighted average shares outstanding - diluted |
7,376,726 | 7,416,716 | ||||||||||
|
|
|
|
|
This information is preliminary and based on Company data available at the time of the presentation.
-MORE-
HFBC Reports Second Quarter Results
Page 12
July 31, 2014
HOPFED BANCORP, INC.
Selected Financial Data
The table below adjusts tax-free investment income for the six month periods ended June 30, 2014, and June 30, 2013, by $524,000 and $545,000, respectively, for a tax equivalent rate using a cost of funds rate of 1.25% for the six month period ended June 30, 2014, and 1.50% for the six month period ended June 30, 2013. The table adjusts tax-free loan income by $6,000 and $4,000, respectively, for six month periods ended June 30, 2014, and June 30, 2013, respectively, for a tax equivalent rate using the same cost of funds rate:
| Average | Income and | Average | Average | Income and | Average | |||||||||||||||||||
| Balance | Expense | Rates | Balance | Expense | Rates | |||||||||||||||||||
| 6/30/2014 | 6/30/2014 | 6/30/2014 | 6/30/2013 | 6/30/2013 | 6/30/2013 | |||||||||||||||||||
| (Table Amounts in Thousands, Except Percentages) | ||||||||||||||||||||||||
| Loans |
$ | 535,830 | 12,836 | 4.79 | % | $ | 525,448 | 13,562 | 5.16 | % | ||||||||||||||
| Investments AFS taxable |
264,596 | 3,473 | 2.63 | % | $ | 283,867 | 3,596 | 2.53 | % | |||||||||||||||
| Investment AFS tax free |
66,303 | 1,599 | 4.82 | % | $ | 73,499 | 1,677 | 4.56 | % | |||||||||||||||
| Interest bearing deposits |
11,225 | 14 | 0.25 | % | $ | 9,672 | 13 | 0.27 | % | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
| Total interest earning assets |
877,954 | 17,922 | 4.08 | % | 892,486 | 18,848 | 4.22 | % | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||||||||||
| Other assets |
81,908 | 79,201 | ||||||||||||||||||||||
|
|
|
|
|
|||||||||||||||||||||
| Total assets |
$ | 959,862 | $ | 971,687 | ||||||||||||||||||||
|
|
|
|
|
|||||||||||||||||||||
| Retail time deposits |
$ | 326,464 | 1,890 | 1.16 | % | $ | 378,326 | 2,877 | 1.52 | % | ||||||||||||||
| Brokered deposits |
44,061 | 291 | 1.32 | % | 46,390 | 362 | 1.56 | % | ||||||||||||||||
| Saving & MMDA |
93,630 | 96 | 0.21 | % | 83,367 | 70 | 0.17 | % | ||||||||||||||||
| Now accounts |
189,518 | 682 | 0.72 | % | 165,564 | 673 | 0.81 | % | ||||||||||||||||
| FHLB borrowings |
43,775 | 862 | 3.94 | % | 43,586 | 890 | 4.08 | % | ||||||||||||||||
| Repurchase agreements |
47,670 | 494 | 2.07 | % | 40,595 | 472 | 2.33 | % | ||||||||||||||||
| Subordinated debentures |
10,310 | 377 | 7.31 | % | 10,310 | 364 | 7.06 | % | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
| Total interest bearing liabilities |
755,428 | 4,692 | 1.24 | % | 768,138 | 5,708 | 1.49 | % | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||||||||||
| Non-interest bearing deposits |
101,987 | 93,857 | ||||||||||||||||||||||
| Other non-interest bearing liabilities |
4,525 | 4,944 | ||||||||||||||||||||||
| Stockholders’ equity |
97,922 | 104,748 | ||||||||||||||||||||||
|
|
|
|
|
|||||||||||||||||||||
| Total liabilities and stockholders’ equity |
$ | 959,862 | $ | 971,687 | ||||||||||||||||||||
|
|
|
|
|
|||||||||||||||||||||
| Net interest income |
13,230 | 13,140 | ||||||||||||||||||||||
|
|
|
|
|
|||||||||||||||||||||
| Net interest rate spread |
2.84 | % | 2.73 | % | ||||||||||||||||||||
|
|
|
|
|
|||||||||||||||||||||
This information is preliminary and based on Company data available at the time of the presentation.
-MORE-
HFBC Reports Second Quarter Results
Page 13
July 31, 2014
HOPFED BANCORP, INC.
Selected Financial Data
The table below adjusts tax-free investment income for the three month periods ended June 30, 2014, and June 30, 2013, by $259,000 and $263,000, respectively, for a tax equivalent rate using a cost of funds rate of 1.20% for the three month period ended June 30, 2014, and 1.50% for the three month period ended June 30, 2013. The table adjusts tax-free loan income by $3,000 for three month period ended June 30, 2014, and $1,000 for the three month period ended June 30, 2013, respectively, for a tax equivalent rate using the same cost of funds rate:
| Average | Income and | Average | Average | Income and | Average | |||||||||||||||||||
| Balance | Expense | Rates | Balance | Expense | Rates | |||||||||||||||||||
| 6/30/2014 | 6/30/2014 | 6/30/2014 | 6/30/2013 | 6/30/2013 | 6/30/2013 | |||||||||||||||||||
| (Table Amounts in Thousands, Except Percentages) | ||||||||||||||||||||||||
| Loans |
$ | 538,895 | 6,506 | 4.83 | % | $ | 528,160 | 6,678 | 5.06 | % | ||||||||||||||
| Investments AFS taxable |
266,815 | 1,694 | 2.54 | % | 283,262 | 1,764 | 2.49 | % | ||||||||||||||||
| Investment AFS tax free |
65,323 | 790 | 4.84 | % | 71,333 | 810 | 4.54 | % | ||||||||||||||||
| Interest bearing deposits |
9,899 | 6 | 0.24 | % | 9,465 | 7 | 0.30 | % | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
| Total interest earning assets |
880,932 | 8,996 | 4.08 | % | 892,220 | 9,259 | 4.15 | % | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||||||||||
| Other assets |
76,307 | 73,757 | ||||||||||||||||||||||
|
|
|
|
|
|||||||||||||||||||||
| Total assets |
$ | 957,239 | $ | 965,977 | ||||||||||||||||||||
|
|
|
|
|
|||||||||||||||||||||
| Retail time deposits |
320,957 | 927 | 1.16 | % | 371,908 | 1,378 | 1.48 | % | ||||||||||||||||
| Brokered deposits |
42,024 | 146 | 1.39 | % | 45,688 | 178 | 1.56 | % | ||||||||||||||||
| Savings & MMDA |
93,932 | 54 | 0.23 | % | 86,018 | 37 | 0.17 | % | ||||||||||||||||
| Now accounts |
194,863 | 361 | 0.74 | % | 167,038 | 343 | 0.82 | % | ||||||||||||||||
| FHLB borrowings |
41,764 | 428 | 4.10 | % | 43,612 | 446 | 4.09 | % | ||||||||||||||||
| Repurchase agreements |
45,997 | 245 | 2.13 | % | 38,185 | 230 | 2.41 | % | ||||||||||||||||
| Subordinated debentures |
10,310 | 193 | 7.49 | % | 10,310 | 182 | 7.06 | % | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
| Total interest bearing liabilities |
749,847 | 2,354 | 1.26 | % | 762,759 | 2,794 | 1.47 | % | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||||||||||
| Non-interest bearing deposits |
103,717 | 93,616 | ||||||||||||||||||||||
| Other non-interest bearing liabilities |
4,522 | 4,891 | ||||||||||||||||||||||
| Stockholders’ equity |
99,153 | 104,711 | ||||||||||||||||||||||
|
|
|
|
|
|||||||||||||||||||||
| Total liabilities and stockholders’ equity |
$ | 957,239 | $ | 965,977 | ||||||||||||||||||||
|
|
|
|
|
|||||||||||||||||||||
| Net interest income |
6,642 | 6,465 | ||||||||||||||||||||||
|
|
|
|
|
|||||||||||||||||||||
| Interest rate spread |
2.82 | % | 2.68 | % | ||||||||||||||||||||
|
|
|
|
|
|||||||||||||||||||||
| Net interest margin |
3.02 | % | 2.90 | % | ||||||||||||||||||||
|
|
|
|
|
|||||||||||||||||||||
This information is preliminary and based on Company data available at the time of the presentation.
-MORE-