Attached files
| file | filename |
|---|---|
| 8-K - FORM 8-K - HOPFED BANCORP INC | d122146d8k.htm |
Exhibit 99.1
NEWS
| CONTACT: | John E. Peck | |
| President and CEO | ||
| (270) 885-1171 |
HOPFED BANCORP, INC. REPORTS FOURTH QUARTER RESULTS
HOPKINSVILLE, Ky. (January 29, 2016) – HopFed Bancorp, Inc. (NASDAQ: HFBC) (the “Company”), the holding company for Heritage Bank USA, Inc. (the “Bank”), today reported results for the three and twelve month periods ended December 31, 2015. For the three month period ended December 31, 2015, the Company’s net income was $656,000, or $0.10 per share, basic and diluted. For the three month period ended December 31, 2014, the Company’s net loss was $1.0 million, or ($0.14) per share, basic and diluted. For the twelve month period ended December 31, 2015, the Company’s net income was $2.4 million, or $0.38 per share, basic and diluted. For the twelve month period ended December 31, 2014, the Company’s net income was $2.2 million, or $0.30 per share, basic and diluted.
Commenting on the fourth quarter results, John E. Peck, President and Chief Executive Officer, said, “The Company experienced loan growth of $17.1 million for the year ended December 31, 2015. The Company’s loan growth came almost exclusively from the Nashville, Tennessee loan production office, with $15.4 million in loans outstanding at December 31, 2015.
Mr. Peck continued, “In the fourth quarter of 2015, the Company’s deposit growth was strong due to increases in interest bearing checking accounts. In January and February of 2016, our scheduled maturities of time deposits include $52.4 million that have a weighted average cost of 2.52%. We will seek to retain a significant portion of these accounts at current market rates. The Company has increased its liquidity levels at December 31, 2015, providing us the opportunity to remain disciplined in our deposit pricing during the first two months of 2016.”
Financial Highlights
| • | At December 31, 2015, the Company’s tangible book value was $13.87 per share and tangible common equity ratio was 9.70%. The Company’s tangible book value and common equity ratio computations do not include 546,413 unallocated shares of common stock held by the Company’s ESOP. |
| • | The Bank’s estimated Tier 1 Leverage Ratio and Total Risk Based Capital Ratio at December 31, 2015, were 10.72% and 17.12%, respectively. The Company’s consolidated Tier 1 Leverage Ratio and Total Risk Based Capital Ratio at December 31, 2015, were 10.90% and 17.25%, respectively. |
| • | The Company purchased 47,202 shares of its common stock in the quarter at a weighted average price of $11.76 per share. For the twelve month period ended December 31, 2015, the Company purchased 907,505 shares of its common stock at a weighted average price of $13.14 per share. During 2015, the Company reissued 600,000 shares of common stock at $13.14 to establish an employee stock ownership plan. At December 31, 2015, the Company holds a total of 1,085,888 shares of treasury stock at a weighted average cost of $12.46 per share. |
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HFBC Reports Fourth Quarter Results
Page 2
January 29, 2016
Asset Quality
At December 31, 2015, the Company’s level of non-accrual loans totaled $7.4 million, as compared to $3.2 million at December 31, 2014. A summary of non-accrual loans at December 31, 2015, and December 31, 2014, is as follows:
| December 31, 2015 | December 31, 2014 | |||||||
| (Dollars in Thousands) | ||||||||
| One-to-four family mortgages |
$ | 2,234 | $ | 1,501 | ||||
| Home equity line of credit |
48 | — | ||||||
| Junior lien |
— | — | ||||||
| Multi-family |
1,968 | 95 | ||||||
| Construction |
— | — | ||||||
| Land |
1,553 | 215 | ||||||
| Non-residential real estate |
247 | 1,159 | ||||||
| Farmland |
166 | 115 | ||||||
| Consumer loans |
8 | — | ||||||
| Commercial loans |
1,198 | 90 | ||||||
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| Total non-accrual loans |
$ | 7,422 | $ | 3,175 | ||||
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At December 31, 2015, non-accrual loans plus other real estate and other assets owned totaled $9.2 million, or 1.01% of total assets. At December 31, 2014, non-accrual loans plus other real estate and other assets owned totaled $5.1 million, or 0.55% of total assets. A summary of the activity in other real estate owned for the twelve month period ended December 31, 2015, is as follows:
| Activity During 2015 | ||||||||||||||||||||||||
| Balance | Reduction | Gain (Loss) |
Balance | |||||||||||||||||||||
| 12/31/2014 | Foreclosures | Proceeds | in Values | on Sale | 12/31/2015 | |||||||||||||||||||
| (Dollars in Thousands) | ||||||||||||||||||||||||
| One-to-four family mortgages |
$ | 159 | 105 | (194 | ) | — | (15 | ) | $ | 55 | ||||||||||||||
| Land |
1,768 | — | (124 | ) | — | (701 | ) | 943 | ||||||||||||||||
| Non-residential real estate |
— | 738 | — | — | — | 738 | ||||||||||||||||||
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| Total |
$ | 1,927 | 843 | (318 | ) | — | (716 | ) | $ | 1,736 | ||||||||||||||
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A summary of the activity in loans classified as TDRs for the twelve month period ended December 31, 2015, is as follows:
| Balance at 12/31/14 |
New TDR |
Loss or Foreclosure |
Loan Amortization |
Removed from (Taken to) Non-accrual |
Balance 12/31/15 |
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| (Dollars in Thousands) | ||||||||||||||||||||||||
| Non-residential real estate |
$ | 3,284 | 2,265 | — | (14 | ) | — | $ | 5,535 | |||||||||||||||
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| Total performing TDR |
$ | 3,284 | 2,265 | — | (14 | ) | — | $ | 5,535 | |||||||||||||||
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HFBC Reports Fourth Quarter Results
Page 3
January 29, 2016
Asset Quality (continued)
At December 31, 2015, the Company’s level of loans classified as substandard was $28.1 million as compared to $37.4 million at December 31, 2014. At December 31, 2015, the Company’s classified loan to risk-based capital ratio was 27.8%. The Company’s specific reserve for impaired loans was $630,000 at December 31, 2015, and $1.5 million at December 31, 2014. A summary of the level of classified loans at December 31, 2015, is as follows:
| December 31, 2015 |
Pass | Special Mention |
Impaired Loans Substandard |
Doubtful | Total | Specific Allowance for Impairment |
Allowance for Performing Loans |
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| (Dollars in Thousands) | ||||||||||||||||||||||||||||
| One-to-four family mortgages |
$ | 142,729 | 41 | 3,229 | — | 145,999 | 60 | 970 | ||||||||||||||||||||
| Home equity line of credit |
33,475 | — | 169 | — | 33,644 | — | 201 | |||||||||||||||||||||
| Junior liens |
1,720 | 35 | 16 | — | 1,771 | — | 8 | |||||||||||||||||||||
| Multi-family |
21,644 | — | 3,081 | — | 24,725 | 138 | 89 | |||||||||||||||||||||
| Construction |
34,878 | — | — | — | 34,878 | — | 377 | |||||||||||||||||||||
| Land |
11,794 | 41 | 10,618 | — | 22,453 | 69 | 1,310 | |||||||||||||||||||||
| Non-residential real estate |
138,420 | 2,489 | 8,357 | — | 149,266 | 134 | 1,005 | |||||||||||||||||||||
| Farmland |
41,917 | — | 329 | — | 42,246 | — | 358 | |||||||||||||||||||||
| Consumer loans |
20,123 | — | 201 | — | 20,324 | 49 | 309 | |||||||||||||||||||||
| Commercial loans |
84,317 | 352 | 2,074 | — | 86,743 | 180 | 443 | |||||||||||||||||||||
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| Total |
$ | 531,017 | 2,958 | 28,074 | — | 562,049 | 630 | 5,070 | ||||||||||||||||||||
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Net Interest Income
For the three month periods ended December 31, 2015, and December 31, 2014, the Company’s net interest income was $6.3 million, respectively, as compared to $6.4 million for the three month period ended September 30, 2015.
For the three month period ended December 31, 2015, the Company’s net interest margin was 3.21%, as compared to 3.06% for the three month period ended December 31, 2014, and 3.22% for the three month period ended September 30, 2015. The slight decline in linked quarter net interest income and net interest margin was largely the result of the accumulation of cash balances due to an increase in interest bearing checking accounts during the month of December 2015 and the Company’s desire to hold more cash on hand at year end due to the high level of time deposit maturities in the first two months of 2016.
For the twelve month period ended December 31, 2015, the Company’s net interest income was $26.6 million, as compared to $25.8 million for the twelve month period ended December 31, 2014. For the twelve month period ended December 31, 2015, the Company’s interest expense was $6.6 million as compared to $8.9 million for the twelve month period ended December 31, 2014. For the twelve month period ended December 31, 2015, the Company’s net interest margin was 3.36%, as compared to 3.08% for the twelve month period ended December 31, 2014.
HFBC Reports Fourth Quarter Results
Page 4
January 29, 2016
Non-interest Income
Non-interest income for the three month periods ended December 31, 2015, September 30, 2015, and December 31, 2014, was $1.9 million, respectively. For the twelve month period ended December 31, 2015, non-interest income was $7.6 million, a decline of $240,000 as compared to the twelve month period ended December 31, 2014.
For the three and twelve month periods ended December 31, 2015, service charge income was $741,000 and $2.9 million, respectively. This represents a decline of $108,000 and $429,000, respectively, as compared to the three and twelve month periods ended December 31, 2014. The decline in service charge fee income is occurring despite the continued growth of the Company’s non-interest deposit account base and is largely the result of mandated regulatory changes. For the three month period ended December 31, 2015, as compared to the three month period ended December 31, 2014, the decline in service charge income was partially offset by a $98,000 increase in mortgage origination income and a $109,000 increase in gains on the sale of securities. For the three month period ended December 31, 2015, financial services income was $146,000, a decline of $97,000 as compared to the three month period ended December 31, 2014, as instability in the financial markets may have muted demand for products offered by our wealth management division. On a linked quarter basis, the changes in the non-interest income results were minor in nature, with the total decline in non-interest income of $51,000.
For the twelve month period ended December 31, 2015, mortgage origination income was $1.2 million, as compared $719,000 for the twelve month period ended December 31, 2014, despite higher market interest rates. At the same time, financial services income declined from $980,000 for the twelve month period ended December 31, 2014, to $685,000 for the twelve month period ended December 31, 2015.
Non-interest Expense
On a linked quarter basis, the Company’s non-interest expenses declined by $425,000, largely the result of the $298,000 reduction in payroll expense and a $97,000 reduction in expenses related to other real estate owned. On a linked quarter basis, the reduction in payroll expenses is largely the result of decline in the cost of our self-funded health insurance benefits, a small reduction in staffing levels and the seasonality factors.
For the three month period ended December 31, 2015, non-interest expenses were $7.1 million, as compared to $11.6 million for the three month period ended December 31, 2014. In the three month period ended December 31, 2014, the Company incurred a $2.5 million charge for the early retirement of FHLB debt and a $1.8 million loss on the sale of a loan. For the three month period ended December 31, 2015, salaries and benefit expenses were $3.7 million, as compared to $3.9 million for the three month period ended December 31, 2014.
For the twelve month period ended December 31, 2015, non-interest expenses were $30.4 million, as compared to $33.9 million for the twelve month period ended December 31, 2014. For the twelve month period ended, December 31, 2015, the Company experienced the following significant increases in operating expenses as compared to the twelve month period ended December 31, 2014:
| • Salary and benefits |
$ | 588,000 | 3.9 | % | ||||
| • Professional services |
$ | 175,000 | 13.1 | % | ||||
| • Loss on real estate owned |
$ | 508,000 | 244.2 | % |
Increases in compensation expenses for the twelve month period ended December 31, 2015, as compared to the twelve month period ended December 31, 2014, the result of the full year establishment of a loan production office in Nashville, Tennessee and higher commissions paid to secondary market lender that resulted in higher gross revenue on the sale of mortgage loans.
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HFBC Reports Fourth Quarter Results
Page 5
January 29, 2016
Balance Sheet
At December 31, 2015, consolidated assets were $903.2 million, a decline of $32.6 million as compared to December 31, 2014. At December 31, 2015, the Company experienced a $17.2 million decrease in time deposits, a $10.0 million increase in non-interest bearing deposits, a $19.0 million decrease in FHLB borrowings, a $14.3 million increase in cash and cash equivalents, a $66.4 million decrease in securities available for sale and a $17.1 million increase in net loan balances as compared to December 31, 2014.
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 and a loan production office in Nashville, Tennessee. The Company has two additional operating divisions including Heritage Bank Wealth Management of Murray, Kentucky, Hopkinsville, Kentucky, Kingston Springs, Tennessee and Clarksville, Tennessee, which offers a broad line of financial services. Heritage Bank 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 at our 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.
HFBC Reports Fourth Quarter Results
Page 6
January 29, 2016
HOPFED BANCORP, INC.
Consolidated Condensed Balance Sheets
(Dollars in thousands)
| December 31, 2015 | December 31, 2014 | |||||||
| (unaudited) | ||||||||
| Assets | ||||||||
| Cash and due from banks |
$ | 46,926 | $ | 34,389 | ||||
| Interest-earning deposits |
7,772 | 6,050 | ||||||
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| Cash and cash equivalents |
54,698 | 40,439 | ||||||
| Federal Home Loan Bank stock, at cost |
4,428 | 4,428 | ||||||
| Securities available for sale |
237,177 | 303,628 | ||||||
| Loans held for sale |
2,792 | 1,444 | ||||||
| Loans receivable, net of allowance for loan losses of $5,700 at December 31, 2015, and $6,289 at December 31, 2014 |
556,349 | 539,264 | ||||||
| Accrued interest receivable |
4,139 | 4,576 | ||||||
| Real estate and other assets owned |
1,736 | 1,927 | ||||||
| Bank owned life insurance |
10,319 | 9,984 | ||||||
| Premises and equipment, net |
24,034 | 22,940 | ||||||
| Deferred tax assets |
2,642 | 2,261 | ||||||
| Intangible asset |
— | 33 | ||||||
| Other assets |
4,840 | 4,861 | ||||||
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| Total assets |
$ | 903,154 | $ | 935,785 | ||||
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| Liabilities and Stockholders’ Equity | ||||||||
| Liabilities: |
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| Deposits: |
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| Non-interest-bearing accounts |
$ | 125,070 | $ | 115,051 | ||||
| Interest-bearing accounts: |
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| Interest-bearing checking accounts |
203,779 | 186,616 | ||||||
| Savings and money market accounts |
95,893 | 97,726 | ||||||
| Other time deposits |
314,664 | 331,915 | ||||||
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| Total deposits |
739,406 | 731,308 | ||||||
| Advances from Federal Home Loan Bank |
15,000 | 34,000 | ||||||
| Repurchase agreements |
45,770 | 57,358 | ||||||
| Subordinated debentures |
10,310 | 10,310 | ||||||
| Advances from borrowers for taxes and insurance |
614 | 513 | ||||||
| Dividends payable |
287 | 301 | ||||||
| Accrued expenses and other liabilities |
4,137 | 3,593 | ||||||
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| Total liabilities |
815,524 | 837,383 | ||||||
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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 Fourth Quarter Results
Page 7
January 29, 2016
HOPFED BANCORP, INC.
Consolidated Condensed Balance Sheets, Continued
(Dollars in thousands)
| December 31, 2015 | December 31, 2014 | |||||||
| (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 December 31, 2015, and December 31, 2014 |
— | — | ||||||
| Common stock, par value $.01 per share; authorized 15,000,000 shares; 7,951,699 issued and 6,865,811 outstanding at December 31, 2015, and 7,949,665 issued and 7,171,282 outstanding at December 31, 2014 |
79 | 79 | ||||||
| Additional paid-in-capital |
58,604 | 58,466 | ||||||
| Retained earnings |
47,124 | 45,729 | ||||||
| Treasury stock- common (at cost, 1,085,888 shares at December 31, 2015, and 778,383 shares at December 31, 2014) |
(13,471 | ) | (9,429 | ) | ||||
| Unallocated ESOP shares (at cost, 546,413 at December 31, 2015, and no shares at December 31, 2014) |
(7,180 | ) | — | |||||
| Accumulated other comprehensive income, net of taxes |
2,474 | 3,557 | ||||||
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| Total stockholders’ equity |
87,630 | 98,402 | ||||||
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| Total liabilities and stockholders’ equity |
$ | 903,154 | $ | 935,785 | ||||
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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 Fourth Quarter Results
Page 8
January 29, 2016
HOPFED BANCORP, INC.
Consolidated Condensed Statements of Income
(Dollars in thousands)
Unaudited
| For the Three Month Periods | For the Twelve Month Periods | |||||||||||||||
| Ended December 31, | Ended December 31, | |||||||||||||||
| 2015 | 2014 | 2015 | 2014 | |||||||||||||
| Interest income: |
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| Loans receivable |
$ | 6,405 | 6,282 | 25,300 | 26,025 | |||||||||||
| Securities available for sale - taxable |
1,196 | 1,513 | 6,149 | 6,548 | ||||||||||||
| Securities available for sale - nontaxable |
384 | 492 | 1,651 | 2,081 | ||||||||||||
| Interest-earning deposits |
11 | 7 | 22 | 26 | ||||||||||||
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| Total interest income |
7,996 | 8,294 | 33,122 | 34,680 | ||||||||||||
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| Interest expense: |
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| Deposits |
1,280 | 1,290 | 5,031 | 5,603 | ||||||||||||
| Advances from Federal Home Loan Bank |
83 | 373 | 289 | 1,665 | ||||||||||||
| Repurchase agreements |
123 | 152 | 491 | 874 | ||||||||||||
| Subordinated debentures |
186 | 186 | 739 | 737 | ||||||||||||
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| Total interest expense |
1,672 | 2,001 | 6,550 | 8,879 | ||||||||||||
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| Net interest income |
6,324 | 6,293 | 26,572 | 25,801 | ||||||||||||
| Provision for loan losses |
291 | (1,500 | ) | 1,051 | (2,273 | ) | ||||||||||
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| Net interest income after provision for loan losses |
6,033 | 7,793 | 25,521 | 28,074 | ||||||||||||
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| Non-interest income: |
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| Service charges |
741 | 849 | 2,925 | 3,354 | ||||||||||||
| Merchant card income |
288 | 275 | 1,130 | 1,075 | ||||||||||||
| Mortgage origination revenue |
310 | 212 | 1,175 | 719 | ||||||||||||
| Gain on sale of securities |
139 | 30 | 691 | 578 | ||||||||||||
| Income from bank owned life insurance |
83 | 81 | 335 | 307 | ||||||||||||
| Financial services commission |
146 | 243 | 685 | 980 | ||||||||||||
| Other operating income |
178 | 214 | 661 | 827 | ||||||||||||
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| Total non-interest income |
1,885 | 1,904 | 7,602 | 7,840 | ||||||||||||
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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 Fourth Quarter Results
Page 9
January 29, 2016
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 December 31, |
For the Twelve Month Periods Ended December 31, |
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| 2015 | 2014 | 2015 | 2014 | |||||||||||||
| Non-interest expenses: |
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| Salaries and benefits |
$ | 3,662 | 3,854 | 15,810 | 15,222 | |||||||||||
| Occupancy |
799 | 719 | 3,077 | 3,217 | ||||||||||||
| Data processing |
711 | 693 | 2,827 | 2,887 | ||||||||||||
| State bank tax |
259 | 346 | 1,018 | 1,336 | ||||||||||||
| Intangible amortization |
1 | 16 | 33 | 97 | ||||||||||||
| Professional services |
329 | 306 | 1,506 | 1,331 | ||||||||||||
| Deposit insurance and examination |
183 | 162 | 586 | 724 | ||||||||||||
| Advertising |
319 | 318 | 1,302 | 1,341 | ||||||||||||
| Postage and communications |
149 | 154 | 577 | 577 | ||||||||||||
| Supplies |
163 | 168 | 527 | 627 | ||||||||||||
| Loss on disposal of equipment |
1 | — | 1 | — | ||||||||||||
| Loss on real estate owned |
— | 48 | 716 | 208 | ||||||||||||
| Real estate owned expense |
105 | 73 | 511 | 266 | ||||||||||||
| Loss on sale of loan |
— | 1,781 | — | 1,781 | ||||||||||||
| Other operating expenses |
447 | 2,944 | 1,894 | 4,302 | ||||||||||||
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| Total non-interest expense |
7,128 | 11,582 | 30,385 | 33,916 | ||||||||||||
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| Income (loss) before income tax |
790 | (1,885 | ) | 2,738 | 1,998 | |||||||||||
| Income tax expense (benefit) |
134 | (852 | ) | 334 | (201 | ) | ||||||||||
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| Net income (loss) |
$ | 656 | (1,033 | ) | 2,404 | 2,199 | ||||||||||
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| Net income (loss) per share: |
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| Basic |
$ | 0.10 | ($ | 0.14 | ) | $ | 0.38 | $ | 0.30 | |||||||
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| Diluted |
$ | 0.10 | ($ | 0.14 | ) | $ | 0.38 | $ | 0.30 | |||||||
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| Dividend per share |
$ | 0.04 | $ | 0.04 | $ | 0.16 | $ | 0.16 | ||||||||
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| Weighted average shares outstanding - basic |
6,328,324 | 7,165,957 | 6,372,277 | 7,306,078 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Weighted average shares outstanding - diluted |
6,328,324 | 7,165,957 | 6,372,277 | 7,306,078 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
This information is preliminary and based on Company data available at the time of the presentation.
-MORE-
HFBC Reports Fourth Quarter Results
Page 10
January 29, 2016
HOPFED BANCORP, INC.
Selected Financial Data
(Dollars in thousands)
| For the Three Months Ended |
Change from Prior Quarter |
|||||||||||
| 12/31/2015 | 9/30/2015 | |||||||||||
| Interest income: |
||||||||||||
| Loans receivable |
$ | 6,405 | 6,374 | 31 | ||||||||
| Securities available for sale - taxable |
1,196 | 1,237 | (41 | ) | ||||||||
| Securities available for sale - nontaxable |
384 | 398 | (14 | ) | ||||||||
| Interest-earning deposits |
11 | 3 | 8 | |||||||||
|
|
|
|
|
|
|
|||||||
| Total interest income |
7,996 | 8,012 | (16 | ) | ||||||||
|
|
|
|
|
|
|
|||||||
| Interest expense: |
||||||||||||
| Deposits |
1,280 | 1,246 | 34 | |||||||||
| Advances from Federal Home Loan Bank |
83 | 71 | 12 | |||||||||
| Repurchase agreements |
123 | 130 | (7 | ) | ||||||||
| Subordinated debentures |
186 | 186 | — | |||||||||
|
|
|
|
|
|
|
|||||||
| Total interest expense |
1,672 | 1,633 | 39 | |||||||||
|
|
|
|
|
|
|
|||||||
| Net interest income |
6,324 | 6,379 | (55 | ) | ||||||||
| Provision for loan losses |
291 | 275 | 16 | |||||||||
|
|
|
|
|
|
|
|||||||
| Net interest income after provision for loan losses |
6,033 | 6,104 | (71 | ) | ||||||||
|
|
|
|
|
|
|
|||||||
| Non-interest income: |
||||||||||||
| Service charges |
741 | 750 | (9 | ) | ||||||||
| Merchant card income |
288 | 286 | 2 | |||||||||
| Mortgage orgination revenue |
310 | 345 | (35 | ) | ||||||||
| Gain on sale of securities |
139 | 103 | 36 | |||||||||
| Income from bank owned life insurance |
83 | 108 | (25 | ) | ||||||||
| Financial services commission |
146 | 186 | (40 | ) | ||||||||
| Other operating income |
178 | 158 | 20 | |||||||||
|
|
|
|
|
|
|
|||||||
| Total non-interest income |
1,885 | 1,936 | (51 | ) | ||||||||
|
|
|
|
|
|
|
|||||||
This information is preliminary and based on Company data available at the time of the presentation.
-MORE-
HFBC Reports Fourth Quarter Results
Page 11
January 29, 2016
HOPFED BANCORP, INC.
Selected Financial Data
(Dollars in thousands, except share and per share data)
| For the Three Months Ended |
Change from Prior Quarter |
|||||||||||
| 12/31/2015 | 9/30/2015 | |||||||||||
| Non-interest expenses: |
||||||||||||
| Salaries and benefits |
$ | 3,662 | 3,960 | (298 | ) | |||||||
| Occupancy |
799 | 788 | 11 | |||||||||
| Data processing |
711 | 724 | (13 | ) | ||||||||
| Franchise and deposit tax |
259 | 260 | (1 | ) | ||||||||
| Intangible amortization |
1 | — | 1 | |||||||||
| Professional services |
329 | 380 | (51 | ) | ||||||||
| Deposit insurance and examination |
183 | 135 | 48 | |||||||||
| Advertising |
319 | 337 | (18 | ) | ||||||||
| Postage and communications |
149 | 162 | (13 | ) | ||||||||
| Supplies |
163 | 107 | 56 | |||||||||
| Loss on disposal of equipment |
1 | — | 1 | |||||||||
| Loss on real estate owned |
— | (18 | ) | 18 | ||||||||
| Real estate owned expense |
105 | 202 | (97 | ) | ||||||||
| Other operating expenses |
447 | 516 | (69 | ) | ||||||||
|
|
|
|
|
|
|
|||||||
| Total non-interest expense |
7,128 | 7,553 | (425 | ) | ||||||||
|
|
|
|
|
|
|
|||||||
| Income before income tax expense |
790 | 487 | 303 | |||||||||
| Income tax expense |
134 | (23 | ) | 157 | ||||||||
|
|
|
|
|
|
|
|||||||
| Net income |
$ | 656 | $ | 510 | $ | 146 | ||||||
|
|
|
|
|
|
|
|||||||
| Net income per share: |
||||||||||||
| Basic |
$ | 0.10 | $ | 0.08 | $ | 0.02 | ||||||
|
|
|
|
|
|
|
|||||||
| Diluted |
$ | 0.10 | $ | 0.08 | $ | 0.02 | ||||||
|
|
|
|
|
|
|
|||||||
| Dividend per share |
$ | 0.04 | $ | 0.04 | ||||||||
|
|
|
|
|
|||||||||
| Weighted average shares outstanding - basic |
6,328,324 | 6,359,556 | ||||||||||
|
|
|
|
|
|||||||||
| Weighted average shares outstanding - diluted |
6,328,324 | 6,359,556 | ||||||||||
|
|
|
|
|
|||||||||
This information is preliminary and based on Company data available at the time of the presentation.
-MORE-
HFBC Reports Fourth Quarter Results
Page 12
January 29, 2016
HOPFED BANCORP, INC.
Selected Financial Data
(Dollars in thousands, except share and per share data)
The table below adjusts tax-free investment income for the twelve month periods ended December 31, 2015, and December 31, 2014, by $813 and $1,016 respectively, for a tax equivalent rate using a cost of funds rate of 1.00% for the twelve month period ended December 31, 2015, and 1.20% for the twelve month period ended December 31, 2014. The table adjusts tax-free loan income by $22 and $13 respectively, for twelve month periods ended December 31, 2015, and December 31, 2014, respectively, for a tax equivalent rate using the same cost of funds rate:
| Average Balance 12/31/2015 |
Income & Expense 12/31/2015 |
Average Rates 12/31/2015 |
Average Balance 12/31/2014 |
Income & Expense 12/31/2014 |
Average Rates 12/31/2014 |
|||||||||||||||||||
| Loans |
$ | 552,265 | $ | 25,322 | 4.59 | % | $ | 534,404 | $ | 26,038 | 4.87 | % | ||||||||||||
| Investments AFS taxable |
203,160 | 6,149 | 3.03 | % | 262,154 | 6,548 | 2.50 | % | ||||||||||||||||
| Investments AFS tax free |
52,836 | 2,464 | 4.66 | % | 64,393 | 3,097 | 4.81 | % | ||||||||||||||||
| Federal funds |
8,528 | 22 | 0.26 | % | 10,461 | 26 | 0.25 | % | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
| Total interest earning assets |
816,789 | 33,957 | 4.16 | % | 871,412 | 35,709 | 4.10 | % | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||||||||||
| Other assets |
75,032 | 77,716 | ||||||||||||||||||||||
|
|
|
|
|
|||||||||||||||||||||
| Total assets |
$ | 891,821 | $ | 949,128 | ||||||||||||||||||||
|
|
|
|
|
|||||||||||||||||||||
| Retail time deposits |
$ | 287,601 | 3,357 | 1.17 | % | $ | 314,703 | 3,660 | 1.39 | % | ||||||||||||||
| Brokered deposits |
33,288 | 378 | 1.14 | % | 41,366 | 495 | 1.52 | % | ||||||||||||||||
| Now accounts |
194,432 | 1,105 | 0.57 | % | 189,433 | 1,253 | 0.75 | % | ||||||||||||||||
| MMDA and savings accounts |
97,495 | 191 | 0.20 | % | 95,174 | 195 | 0.18 | % | ||||||||||||||||
| FHLB borrowings |
17,279 | 289 | 1.67 | % | 42,441 | 1,665 | 3.96 | % | ||||||||||||||||
| Repurchase agreements |
43,495 | 491 | 1.13 | % | 45,823 | 874 | 1.91 | % | ||||||||||||||||
| Subordinated debentures |
10,310 | 739 | 7.17 | % | 10,310 | 737 | 7.15 | % | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
| Total interest bearing liabilities |
683,900 | 6,550 | 0.96 | % | 739,250 | 8,879 | 1.20 | % | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||||||||||
| Non-interest bearing deposits |
113,350 | 104,911 | ||||||||||||||||||||||
| Other non-interest bearing liabilities |
3,865 | 4,855 | ||||||||||||||||||||||
| Stockholders’ equity |
90,706 | 100,112 | ||||||||||||||||||||||
|
|
|
|
|
|||||||||||||||||||||
| Total liabilities and stockholders’ equity |
$ | 891,821 | $ | 949,128 | ||||||||||||||||||||
|
|
|
|
|
|||||||||||||||||||||
| Net change in interest earning assets and interest bearing liabilities |
$ | 27,407 | $ | 26,830 | ||||||||||||||||||||
|
|
|
|
|
|||||||||||||||||||||
| Interest rate spread |
3.20 | % | 2.90 | % | ||||||||||||||||||||
|
|
|
|
|
|||||||||||||||||||||
| Net interest margin |
3.36 | % | 3.08 | % | ||||||||||||||||||||
|
|
|
|
|
|||||||||||||||||||||
This information is preliminary and based on Company data available at the time of the presentation.
-MORE-
HFBC Reports Fourth Quarter Results
Page 13
January 29, 2016
HOPFED BANCORP, INC.
Selected Financial Data
The table below adjusts tax-free investment income for the three month periods ended December 31, 2015, and December 31, 2014, by $189 and $230, respectively, for a tax equivalent rate using a cost of funds rate of 1.00% for the three month period ended December 31, 2015, and 1.12% for the three month period ended December 31, 2014. The table adjusts tax-free loan income by $8 for three month period ended December 31, 2015, and $4 for the three month period ended December 31, 2014, respectively, for a tax equivalent rate using the same cost of funds rate:
| Average Balance 12/31/2015 |
Income & Expense 12/31/2015 |
Average Rates 12/31/2015 |
Average Balance 12/31/2014 |
Income & Expense 12/31/2014 |
Average Rates 12/31/2014 |
|||||||||||||||||||
| Loans |
$ | 559,423 | $ | 6,413 | 4.59 | % | $ | 530,313 | $ | 6,286 | 4.74 | % | ||||||||||||
| Investments AFS taxable |
186,659 | 1,196 | 2.56 | % | 251,178 | 1,513 | 2.41 | % | ||||||||||||||||
| Investments AFS tax free |
49,780 | 573 | 4.60 | % | 61,706 | 722 | 4.68 | % | ||||||||||||||||
| Federal funds |
15,635 | 11 | 0.28 | % | 9,477 | 7 | 0.30 | % | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
| Total interest earning assets |
811,497 | 8,193 | 4.04 | % | 852,674 | 8,528 | 4.00 | % | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||||||||||
| Other assets |
82,070 | 78,608 | ||||||||||||||||||||||
|
|
|
|
|
|||||||||||||||||||||
| Total assets |
$ | 893,567 | $ | 931,282 | ||||||||||||||||||||
|
|
|
|
|
|||||||||||||||||||||
| Retail time deposits |
$ | 282,985 | 841 | 1.19 | % | $ | 298,960 | 874 | 1.17 | % | ||||||||||||||
| Brokered deposits |
35,013 | 99 | 1.13 | % | 37,690 | 94 | 1.00 | % | ||||||||||||||||
| Now accounts |
195,141 | 295 | 0.60 | % | 186,772 | 272 | 0.58 | % | ||||||||||||||||
| MMDA and savings accounts |
99,698 | 45 | 0.18 | % | 97,106 | 50 | 0.21 | % | ||||||||||||||||
| FHLB borrowings |
17,174 | 83 | 1.93 | % | 40,871 | 373 | 3.65 | % | ||||||||||||||||
| Repurchase agreements |
42,810 | 123 | 1.15 | % | 43,026 | 152 | 1.41 | % | ||||||||||||||||
| Subordinated debentures |
10,310 | 186 | 7.22 | % | 10,310 | 186 | 7.22 | % | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
| Total interest bearing liabilities |
683,131 | 1,672 | 0.98 | % | 714,735 | 2,001 | 1.12 | % | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||||||||||
| Non-interest bearing deposits |
116,769 | 110,249 | ||||||||||||||||||||||
| Other non-interest bearing liabilities |
4,347 | 6,950 | ||||||||||||||||||||||
| Stockholders’ equity |
89,320 | 99,348 | ||||||||||||||||||||||
|
|
|
|
|
|||||||||||||||||||||
| Total liabilities and stockholders’ equity |
$ | 893,567 | $ | 931,282 | ||||||||||||||||||||
|
|
|
|
|
|||||||||||||||||||||
| Net change in interest earning assets and interest bearing liabilities |
$ | 6,521 | $ | 6,527 | ||||||||||||||||||||
|
|
|
|
|
|||||||||||||||||||||
| Interest rate spread |
3.06 | % | 2.88 | % | ||||||||||||||||||||
|
|
|
|
|
|||||||||||||||||||||
| Net interest margin |
3.21 | % | 3.06 | % | ||||||||||||||||||||
|
|
|
|
|
|||||||||||||||||||||
This information is preliminary and based on Company data available at the time of the presentation.
-END-