Attached files
| file | filename |
|---|---|
| 8-K - FORM 8-K - HOPFED BANCORP INC | d271237d8k.htm |
Exhibit 99.1
NEWS
| CONTACT: | John E. Peck | |||||||
| President and CEO | ||||||||
| (270) 885-1171 |
HOPFED BANCORP, INC. REPORTS THIRD QUARTER RESULTS
HOPKINSVILLE, Ky. (October 31, 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 nine month periods ended September 30, 2016. For the three month period ended September 30, 2016, the Company reported net income of $985,000, or $0.16 per share, basic and diluted, compared to net income of $510,000, or $0.08 per share basic and diluted, for the three month period ended September 30, 2015. For the nine month periods ended September 30, 2016, the Company’s net income was $1.8 million, or $0.29 per share basic and diluted. For the nine month period ended September 30, 2015, the company’s net income was $1.7 million, or $0.27 per share, basic and diluted.
Commenting on the third quarter results, John E. Peck, President and Chief Executive Officer, said, “The Company experienced net loan growth of $18.3 million during the three month period ended September 30, 2016. The Company’s Nashville loan production office has originated loans with balances totaling $39.5 million at September 30, 2016, as compared to $23.3 million at June 30, 2016, and $7.8 million at September 30, 2015. Our loan pipeline remains robust. In addition to commercial loan growth, our secondary market loan operation continues to find success. In October 2016, we opened a loan production office in Brentwood, Tennessee, that enhances both our secondary market and portfolio lending in the attractive Williamson County, Tennessee market.” Mr. Peck concluded.
Financial Highlights
| • | At September 30, 2016, the Company’s tangible book value was $14.31 per share and tangible common equity ratio was 10.18%. The Company’s tangible book value and common equity ratio computations do not include 514,187 shares of common stock held by the Company’s ESOP that the Company has currently not committed to release. |
| • | The Company purchased 16,029 shares of its common stock in the three month period ended September 30, 2016, at a weighted average price of $11.44 per share. For the nine month period ended September 30, 2016, the Company purchased 154,247 shares of its common stock at a weighted average price of $11.72 per share. At September 30, 2016, the Company owns 1,240,135 shares of treasury stock at a weighted average cost of $12.32 per share. |
| • | The Company’s estimated Tier 1 Leverage Ratio and Total Risk Based Capital Ratio at September 30, 2016, were 10.87% and 16.92%, respectively. The Bank’s Tier 1 Leverage Ratio and Total Risk Based Capital Ratio at September 30, 2016, were 10.75% and 16.76%, respectively. |
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HFBC Reports Third Quarter Results
Page 2
October 31, 2016
Asset Quality
At September 30, 2016, the Company’s level of non-accrual loans totaled $11.7 million, as compared to $7.4 million at December 31, 2015. A summary of non-accrual loans at September 30, 2016, and December 31, 2015, is as follows:
| September 30, 2016 | December 31, 2015 | |||||||
| (Dollars in Thousands) | ||||||||
| One-to-four family mortgages |
$ | 700 | $ | 2,234 | ||||
| Home equity line of credit |
124 | 48 | ||||||
| Multi-family |
1,772 | 1,968 | ||||||
| Land |
7,842 | 1,553 | ||||||
| Non-residential real estate |
248 | 247 | ||||||
| Farmland |
— | 166 | ||||||
| Consumer loans |
31 | 8 | ||||||
| Commercial loans |
947 | 1,198 | ||||||
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| Total non-accrual loans |
$ | 11,664 | $ | 7,422 | ||||
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The increase in non-accrual loans at September 30, 2016, as compared to December 31, 2015, is largely the result of one land development relationship that has been classified as substandard since July of 2013. The collateral for the loan consists of undeveloped land that is being held for future commercial development and a single family residence.
At September 30, 2016, non-performing assets totaled $12.4 million, or 1.43% of total assets. At September 30, 2016, the Company had no loans past due 90 days or more and still accruing interest. A summary of the activity in other real estate owned for the nine month period ended September 30, 2016, is as follows:
| Activity During 2016 | ||||||||||||||||||||||||
| Balance | Reduction | Gain (Loss) | Balance | |||||||||||||||||||||
| 12/31/2015 | Foreclosures | Proceeds | in Values | on Sale | 9/30/2016 | |||||||||||||||||||
| (Dollars in Thousands) | ||||||||||||||||||||||||
| One-to-four family mortgages |
$ | 55 | — | (43 | ) | — | (12 | ) | $ | — | ||||||||||||||
| Home equity line of credit |
— | 68 | — | — | — | 68 | ||||||||||||||||||
| Multi-family real estate |
— | 141 | — | — | — | 141 | ||||||||||||||||||
| Land |
943 | 130 | (987 | ) | — | (13 | ) | 73 | ||||||||||||||||
| Non-residential real estate |
738 | — | (270 | ) | — | (9 | ) | 459 | ||||||||||||||||
| Consumer |
— | 15 | (19 | ) | — | 4 | — | |||||||||||||||||
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| Total |
$ | 1,736 | 354 | (1,319 | ) | — | (30 | ) | $ | 741 | ||||||||||||||
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HFBC Reports Third Quarter Results
Page 3
October 31, 2016
Asset Quality (continued)
For the nine month period ended September 30, 2016, the Company’s balance of loans classified as Troubled Debt Restructurings (“TDRs”) increased from $5.5 million to $6.5 million. The increase is the result of one lending relationship in which the customer’s payment terms were revised to provide for interest only payments while the customer attempts to sell the collateral. A summary of the activity in loans classified as TDRs for the nine month period ended September 30, 2016, is as follows:
| Balance at | New | Loss or |
Loan | Removed from (Taken to) |
Balance at | |||||||||||||||||||
| 12/31/15 | TDR | Foreclosure | Amortization | Non-accrual | 09/30/16 | |||||||||||||||||||
| (Dollars in Thousands) | ||||||||||||||||||||||||
| Multi-family real estate |
— | 816 | — | — | — | 816 | ||||||||||||||||||
| Non-residential real estate |
$ | 5,536 | 228 | — | (77 | ) | — | 5,687 | ||||||||||||||||
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| Total performing TDR |
$ | 5,536 | 1,044 | — | (77 | ) | — | $ | 6,503 | |||||||||||||||
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At September 30, 2016, the Company’s level of loans classified as substandard was $31.9 million as compared to $28.1 million at December 31, 2015. The $3.8 million increase in classified assets at September 30, 2016, as compared to December 31, 2015, is largely the result of one large commercial agri-business loan that has been negatively affected by the decline in commodity prices and one unrelated multi-family loan. At September 30, 2016, the Company’s classified loan to total risk-based capital ratio was 31.8%. The Company’s specific reserve for impaired loans was $605,000 at September 30, 2016, and $630,000 at December 31, 2015. A summary of the level of classified loans and the Company’s allocation of its allowance for loan loss by loan type at September 30, 2016, is as follows:
| Specific | Allowance | |||||||||||||||||||||||||||
| Allowance | for | |||||||||||||||||||||||||||
| Special | Impaired Loans | for | Performing | |||||||||||||||||||||||||
| Pass | Mention | Substandard | Doubtful | Total | Impairment | Loans | ||||||||||||||||||||||
| (Dollars in Thousands) | ||||||||||||||||||||||||||||
| One-to-four family mortgages |
$ | 144,587 | 753 | 1,404 | — | 146,744 | — | 1,132 | ||||||||||||||||||||
| Home equity line of credit |
34,023 | 25 | 515 | — | 34,563 | — | 335 | |||||||||||||||||||||
| Junior liens |
1,557 | 32 | 12 | — | 1,601 | — | 11 | |||||||||||||||||||||
| Multi-family |
27,623 | — | 4,795 | — | 32,418 | 351 | 157 | |||||||||||||||||||||
| Construction |
37,775 | — | — | — | 37,775 | — | 806 | |||||||||||||||||||||
| Land |
14,562 | 37 | 8,400 | — | 22,999 | — | 1,044 | |||||||||||||||||||||
| Non-residential real estate |
160,096 | 5 | 10,658 | — | 170,759 | 101 | 1,143 | |||||||||||||||||||||
| Farmland |
44,066 | 505 | 2,306 | — | 46,877 | — | 1,015 | |||||||||||||||||||||
| Consumer loans |
8,605 | — | 303 | — | 8,908 | 70 | 143 | |||||||||||||||||||||
| Commercial loans |
79,484 | 666 | 3,534 | — | 83,684 | 83 | 421 | |||||||||||||||||||||
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| Total |
$ | 552,378 | 2,023 | 31,927 | — | 586,328 | 605 | 6,207 | ||||||||||||||||||||
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HFBC Reports Third Quarter Results
Page 4
October 31, 2016
Net Interest Income
For the three month period ended September 30, 2016, total interest income was $8.0 million, as compared to $7.7 million for the three month period ended June 30, 2016, and $8.0 million for the three month period ended September 30, 2015. For the three month period ended September 30, 2016, total interest expense was $1.3 million, representing a linked quarter increase of $47,000 and a decline of $318,000 as compared to the three month period ended September 30, 2015. The decline of interest expense for the three month period ended September 30, 2016, as compared to the three month period ended September 30, 2015, is largely attributable to maturities of higher costing time deposits, reducing the Company’s interest expense on deposits by $202,000 as compared to the three month period ended September 30, 2015. On a linked quarter basis, the slight increase in interest expense is largely the result of $12.7 million increase in total deposit balances and a 0.03% increase in the total cost interest bearing liabilities. For the three month period ended September 30, 2016, the Company’s interest expense on subordinated debentures declined by $87,000 as compared to the three month period ended September 30, 2015, due to the maturing of an interest rate swap on the debenture.
For the three month period ended September 30, 2016, the Company’s net interest income was $6.7 million, compared to $6.4 million for the three month periods ended June 30, 2016, and September 30, 2015, respectively. For the three month period ended September 30, 2016, the Company’s net interest margin was 3.41%, as compared to 3.28% for the three month period ended June 30, 2016, and 3.25% for the three month period ended September 30, 2015. The net interest margin for the three month period ended June 30, 2016, was negatively influenced by a large loan being classified as non-accrual, resulting in a $200,000 reduction of interest income on loans.
For the nine month period ended September 30, 2016, the Company’s total interest income was $23.8 million, as compared to $25.1 million for the nine month period ended September 30, 2015. The $1.3 million decline in total interest income for the nine month period ended September 30, 2016, as compared to September 30, 2015, was largely the result of a $1.7 million decline in investment income. For the nine month period ended September 30, 2015, the Company experienced an $830,000 recovery on a previously non-accrual investment. In addition to the investment income recovery, the combined average balance of taxable and tax free investments for the nine month period ended September 30, 2016, declined by $27.6 million as compared to the nine month period ended September 30, 2015.
For the nine month period ended September 30, 2016, the Company’s interest expense was $4.0 million, as compared to $4.9 million for the nine month period ended September 30, 2015. The decline of interest expense is the result of both lower interest rates and reduced average balances of time deposits. For the nine month period ended September 30, 2016, the average balance of retail time deposits were $257.8 million and their average cost was 0.95%. For the nine month period ended September 30, 2015, the average balance of retail time deposits were $289.2 million and their average cost was 1.16%. For the nine month period ended September 30, 2016, the Company’s interest expense on subordinated debentures was $287,000, or 3.71%, as compared to $553,000, or 7.15%, for the nine month period ended September 30, 2015. The decline in subordinated debentures interest expense is the result of the maturity of the Company’s interest rate swap on its debenture.
For the nine month period ended September 30, 2016, the Company’s net interest income was $19.8 million, as compared to $20.2 million for the nine month period ended September 30, 2015. For the nine month period ended September 30, 2016, the Company’s net interest margin was 3.36%, as compared to 3.40% for the nine month period ended September 30, 2015. For the nine month period ended September 30, 2015, the recovery of non-accrual investment interest added 0.16% to the Company’s net interest margin.
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HFBC Reports Third Quarter Results
Page 5
October 31, 2016
Non-interest Income
On a linked quarter basis, total non-interest income declined by $25,000 largely due to a $60,000 decline in financial services income. On a linked quarter basis, mortgage origination revenue declined by $20,000 while gains on the sale of securities and income from bank owned life insurance both increased by $27,000. For the three month period ended September 30, 2016, total non-interest income was $9,000 higher as compared to the three month period ended September 30, 2015. For the three month period ended September 30, 2016, service charge income was $719,000, representing a $31,000 decline as compared to the three month period ended September 30, 2015. For the three month period ended September 30, 2016, merchant card income was $308,000, as compared to $286,000 for the three month period ended September 30, 2015. The Company’s mortgage origination revenue for the three month period ended September 30, 2016, was $415,000, as compared to $345,000 for the three month period ended September 30, 2015. For the three month period ended September 30, 2016, financial services income was $131,000, as compared to $186,000 for the three month period ended September 30, 2015.
For the nine month period ended September 30, 2016, non-interest income was $5.9 million, as compared to $5.7 million for the nine month period ended September 30, 2015. The increase in non-interest income for the nine month period ended September 30, 2016, as compared to the nine month period ended September 30, 2015, is largely the result of a $353,000 increase in mortgage origination revenue. For the nine month period ended September 30, 2016, other operating income was $568,000, as compared to $483,000 for the nine month period ended September 30, 2015. For the nine month period ended September 30, 2016, gains on the sale of securities were $422,000, a decline of $130,000 as compared to the nine month period ended September 30, 2016.
Non-interest Expense
On a linked quarter basis, the Company’s non-interest expenses declined by $256,000. On a linked quarter basis, the most significant increases in operating expenses was a $40,000 increase in data processing expenses and a $63,000 increase in professional services expenses. For the three month period ended September 30, 2016, the Company’s salaries and benefits expenses declined by $144,000 and other operating expense declined by $140,000, respectively, as compared to the three month period ended June 30, 2016. During the three month period ended September 30, 2016, the Company sold real estate accounted for a fixed asset for a gain of $72,000.
For the three month period ended September 30, 2016, non-interest expenses declined by $200,000 as compared to the three month period ended September 30, 2015. For the three month period ended September 30, 2016, salaries and benefits expense declined by $203,000 as compared to the three month period ended September 30, 2015. For the three month period ended September 30, 2016, other non-interest expense declined by $67,000 as compared to the three month period ended September 30, 2015. For the three month period ended September 30, 2016, no other non-interest expense items increased or decreased by more than $50,000 as compared to the three month period ended September 30, 2015.
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HFBC Reports Third Quarter Results
Page 6
October 31, 2016
Non-interest Expense (continued)
For the nine month period ended September 30, 2016, non-interest expenses were $22.7 million, a decline of $612,000 as compared to the nine month period ended September 30, 2015. For the nine month period ended September 30, 2016, expense items changing by more than $100,000 as compared to the nine month period ended September 30, 2015, include:
| Nine Month Period Ended | Dollar | Percentage | ||||||||||||||
| 09/30/16 | 09/30/15 | Change | Change | |||||||||||||
| Salaries and benefits |
$ | 11,646 | $ | 12,148 | ($ | 502 | ) | -4.13 | % | |||||||
| Occupancy |
$ | 2,398 | $ | 2,278 | $ | 120 | 5.27 | % | ||||||||
| Professional services |
$ | 1,008 | $ | 1,177 | ($ | 169 | ) | -14.36 | % | |||||||
| Loss on sale of other real estate owned |
$ | 30 | $ | 716 | ($ | 686 | ) | -95.81 | % | |||||||
| Other expenses |
$ | 1,771 | $ | 1,446 | $ | 325 | 22.48 | % | ||||||||
Balance Sheet
At September 30, 2016, consolidated assets were $871.9 million, a decline of $31.2 million as compared to December 31, 2015. For the nine month period ended September 30, 2016, the Company experienced a $14.0 million decrease in time deposits, a $4.0 million decrease in FHLB borrowings, a $25.3 million decrease in cash balances and a $22.7 million increase in net loan balances. To fund the growth in loan balances and reduction in FHLB borrowings and time deposits, the Company has reduced its balance in available for sale securities by $23.9 million, to $213.3 million at September 30, 2016, as compared to December 31, 2015.
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 two loan production offices in Nashville, Tennessee, and Brentwood 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.
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HFBC Reports Third Quarter Results
Page 7
October 31, 2016
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
Page 8
October 31, 2016
HOPFED BANCORP, INC.
Consolidated Condensed Balance Sheets
(Dollars in thousands)
| September 30, 2016 | December 31, 2015 | |||||||
| (unaudited) | ||||||||
| Assets | ||||||||
| Cash and due from banks |
$ | 24,741 | 46,926 | |||||
| Interest-earning deposits |
4,695 | 7,772 | ||||||
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| Cash and cash equivalents |
29,436 | 54,698 | ||||||
| Federal Home Loan Bank stock, at cost |
4,428 | 4,428 | ||||||
| Securities available for sale |
213,289 | 237,177 | ||||||
| Loans held for sale |
1,547 | 2,792 | ||||||
| Loans receivable, net of allowance for loan losses of $6,812 at September 30, 2016, and $5,700 at December 31, 2015 |
579,063 | 556,349 | ||||||
| Accrued interest receivable |
3,603 | 4,139 | ||||||
| Real estate and other assets owned |
741 | 1,736 | ||||||
| Bank owned life insurance |
10,581 | 10,319 | ||||||
| Premises and equipment, net |
23,579 | 24,034 | ||||||
| Deferred tax assets |
2,144 | 2,642 | ||||||
| Other assets |
3,495 | 4,840 | ||||||
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| Total assets |
$ | 871,906 | 903,154 | |||||
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| Liabilities and Stockholders’ Equity | ||||||||
| Liabilities: |
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| Deposits: |
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| Non-interest-bearing accounts |
$ | 130,327 | 125,070 | |||||
| Interest-bearing accounts |
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| Interest-bearing checking accounts |
182,360 | 203,779 | ||||||
| Savings and money market accounts |
98,929 | 95,893 | ||||||
| Other time deposits |
300,701 | 314,664 | ||||||
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| Total deposits |
712,317 | 739,406 | ||||||
| Advances from Federal Home Loan Bank |
11,000 | 15,000 | ||||||
| Repurchase agreements |
44,465 | 45,770 | ||||||
| Subordinated debentures |
10,310 | 10,310 | ||||||
| Advances from borrowers for taxes and insurance |
1,111 | 614 | ||||||
| Dividends payable |
287 | 287 | ||||||
| Accrued expenses and other liabilities |
3,554 | 4,137 | ||||||
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| Total liabilities |
783,044 | 815,524 | ||||||
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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 Third Quarter Results
Page 9
October 31, 2016
HOPFED BANCORP, INC.
Consolidated Condensed Balance Sheets, Continued
(Dollars in thousands)
| September 30, 2016 | December 31, 2015 | |||||||
| (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 September 30, 2016, and December 31, 2015 |
— | — | ||||||
| Common stock, par value $.01 per share; authorized 15,000,000 shares; 7,963,378 issued and 6,723,243 outstanding at September 30, 2016, and 7,951,699 issued and 6,865,811 outstanding at December 31, 2015 |
80 | 79 | ||||||
| Additional paid-in-capital |
58,658 | 58,604 | ||||||
| Retained earnings |
48,176 | 47,124 | ||||||
| Treasury stock- common (at cost, 1,240,135 shares at September 30, 2016, and 1,085,888 shares at December 31, 2015) |
(15,279 | ) | (13,471 | ) | ||||
| Unallocated ESOP shares (at cost 514,187 shares at September 30, 2016, and 546,413 shares at December 31, 2015) |
(6,756 | ) | (7,180 | ) | ||||
| Accumulated other comprehensive income, net of taxes |
3,983 | 2,474 | ||||||
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| Total stockholders’ equity |
88,862 | 87,630 | ||||||
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| Total liabilities and stockholders’ equity |
$ | 871,906 | 903,154 | |||||
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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 Third Quarter Results
Page 10
October 31, 2016
HOPFED BANCORP, INC.
Consolidated Condensed Statements of Income
(Dollars in thousands)
Unaudited
| For the Three Month Periods | For the Nine Month Periods | |||||||||||||||
| Ended September 30, | Ended September 30, | |||||||||||||||
| 2016 | 2015 | 2016 | 2015 | |||||||||||||
| Interest income: |
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| Loans receivable |
6,569 | 6,374 | 19,175 | 18,895 | ||||||||||||
| Securities available for sale - taxable |
1,099 | 1,237 | 3,544 | 4,953 | ||||||||||||
| Securities available for sale - nontaxable |
326 | 398 | 1,019 | 1,267 | ||||||||||||
| Interest-earning deposits |
10 | 3 | 38 | 11 | ||||||||||||
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| Total interest income |
8,004 | 8,012 | 23,776 | 25,126 | ||||||||||||
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| Interest expense: |
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| Deposits |
1,044 | 1,246 | 3,146 | 3,751 | ||||||||||||
| Advances from Federal Home Loan Bank |
33 | 71 | 134 | 206 | ||||||||||||
| Repurchase agreements |
139 | 130 | 421 | 368 | ||||||||||||
| Subordinated debentures |
99 | 186 | 287 | 553 | ||||||||||||
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| Total interest expense |
1,315 | 1,633 | 3,988 | 4,878 | ||||||||||||
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| Net interest income |
6,689 | 6,379 | 19,788 | 20,248 | ||||||||||||
| Provision for loan losses |
255 | 275 | 1,178 | 760 | ||||||||||||
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| Net interest income after provision for loan losses |
6,434 | 6,104 | 18,610 | 19,488 | ||||||||||||
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| Non-interest income: |
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| Service charges |
719 | 750 | 2,094 | 2,184 | ||||||||||||
| Merchant card income |
308 | 286 | 913 | 842 | ||||||||||||
| Mortgage origination revenue |
415 | 345 | 1,218 | 865 | ||||||||||||
| Gain on sale of securities |
79 | 103 | 422 | 552 | ||||||||||||
| Income from bank owned life insurance |
104 | 108 | 265 | 252 | ||||||||||||
| Financial services commission |
131 | 186 | 455 | 539 | ||||||||||||
| Other operating income |
189 | 158 | 568 | 483 | ||||||||||||
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|||||||||
| Total non-interest income |
1,945 | 1,936 | 5,935 | 5,717 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
This information is preliminary and based on Company data available at the time of the presentation.
-MORE-
HFBC Reports Third Quarter Results
Page 11
October 31, 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 | For the Nine Month Periods | |||||||||||||||
| Ended September 30, | Ended September 30, | |||||||||||||||
| 2016 | 2015 | 2016 | 2015 | |||||||||||||
| Non-interest expenses: |
||||||||||||||||
| Salaries and benefits |
3,757 | 3,960 | 11,646 | 12,148 | ||||||||||||
| Occupancy |
810 | 788 | 2,398 | 2,278 | ||||||||||||
| Data processing |
744 | 724 | 2,175 | 2,117 | ||||||||||||
| State deposit tax |
248 | 260 | 743 | 759 | ||||||||||||
| Intangible amortization |
— | — | — | 32 | ||||||||||||
| Professional services |
368 | 380 | 1,008 | 1,177 | ||||||||||||
| Deposit insurance and examination |
164 | 135 | 496 | 403 | ||||||||||||
| Advertising |
376 | 337 | 1,067 | 983 | ||||||||||||
| Postage and communications |
157 | 162 | 484 | 428 | ||||||||||||
| Supplies |
148 | 107 | 456 | 364 | ||||||||||||
| Loss (gain) on real estate owned |
22 | (18 | ) | 30 | 716 | |||||||||||
| Loss (gain) on sale of fixed assets |
(72 | ) | — | (72 | ) | — | ||||||||||
| Real estate owned |
182 | 202 | 443 | 406 | ||||||||||||
| Other operating |
449 | 516 | 1,771 | 1,446 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Total non-interest expense |
7,353 | 7,553 | 22,645 | 23,257 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Income before income tax |
1,026 | 487 | 1,900 | 1,948 | ||||||||||||
| Income tax expense (benefit) |
41 | (23 | ) | 102 | 200 | |||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Net income |
985 | 510 | 1,798 | 1,748 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Net income per share: |
||||||||||||||||
| Basic |
$ | 0.16 | $ | 0.08 | $ | 0.29 | $ | 0.27 | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Diluted |
$ | 0.16 | $ | 0.08 | $ | 0.29 | $ | 0.27 | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Dividend per share |
$ | 0.04 | $ | 0.04 | $ | 0.12 | $ | 0.12 | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Weighted average shares outstanding - basic |
6,212,231 | 6,359,556 | 6,247,536 | 6,493,449 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Weighted average shares outstanding - diluted |
6,212,231 | 6,359,556 | 6,247,536 | 6,493,449 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
This information is preliminary and based on Company data available at the time of the presentation.
-MORE-
HFBC Reports Third Quarter Results
Page 12
October 31, 2016
HOPFED BANCORP, INC.
Selected Financial Data
(Dollars in thousands)
| For the Three | ||||||||||||
| Months Ended | ||||||||||||
| Change from | ||||||||||||
| September 30, 2016 | June 30, 2016 | Prior Quarter | ||||||||||
| Interest and dividend income: |
||||||||||||
| Loans receivable |
6,569 | 6,141 | 428 | |||||||||
| Securities available for sale - taxable |
1,099 | 1,198 | (99 | ) | ||||||||
| Securities available for sale - nontaxable |
326 | 340 | (14 | ) | ||||||||
| Interest-earning deposits |
10 | 12 | (2 | ) | ||||||||
|
|
|
|
|
|
|
|||||||
| Total interest and dividend income |
8,004 | 7,691 | 313 | |||||||||
|
|
|
|
|
|
|
|||||||
| Interest expense: |
||||||||||||
| Deposits |
1,044 | 1,007 | 37 | |||||||||
| Advances from Federal Home Loan Bank |
33 | 28 | 5 | |||||||||
| Repurchase agreements |
139 | 139 | — | |||||||||
| Subordinated debentures |
99 | 94 | 5 | |||||||||
|
|
|
|
|
|
|
|||||||
| Total interest expense |
1,315 | 1,268 | 47 | |||||||||
|
|
|
|
|
|
|
|||||||
| Net interest income |
6,689 | 6,423 | 266 | |||||||||
| Provision for loan losses |
255 | 465 | (210 | ) | ||||||||
|
|
|
|
|
|
|
|||||||
| Net interest income after provision for loan losses |
6,434 | 5,958 | 476 | |||||||||
|
|
|
|
|
|
|
|||||||
| Non-interest income: |
||||||||||||
| Service charges |
719 | 698 | 21 | |||||||||
| Merchant card income |
308 | 314 | (6 | ) | ||||||||
| Mortgage orgination revenue |
415 | 435 | (20 | ) | ||||||||
| Gain on sale of securities |
79 | 52 | 27 | |||||||||
| Income from bank owned life insurance |
104 | 77 | 27 | |||||||||
| Financial services commission |
131 | 191 | (60 | ) | ||||||||
| Other operating income |
189 | 203 | (14 | ) | ||||||||
|
|
|
|
|
|
|
|||||||
| Total non-interest income |
1,945 | 1,970 | (25 | ) | ||||||||
|
|
|
|
|
|
|
|||||||
This information is preliminary and based on Company data available at the time of the presentation
-MORE-
HFBC Reports Third Quarter Results
Page 13
October 31, 2016
HOPFED BANCORP, INC.
Selected Financial Data
(Dollars in thousands, except share and per share data)
| For the Three | ||||||||||||
| Months Ended | ||||||||||||
| Change from | ||||||||||||
| September 30, 2016 | June 30, 2016 | Prior Quarter | ||||||||||
| Non-interest expenses: |
||||||||||||
| Salaries and benefits |
$ | 3,757 | 3,901 | (144 | ) | |||||||
| Occupancy |
810 | 801 | 9 | |||||||||
| Data processing |
744 | 704 | 40 | |||||||||
| State deposit tax |
248 | 247 | 1 | |||||||||
| Professional services |
368 | 305 | 63 | |||||||||
| Deposit insurance and examination |
164 | 159 | 5 | |||||||||
| Advertising |
376 | 371 | 5 | |||||||||
| Postage and communications |
157 | 172 | (15 | ) | ||||||||
| Supplies expense |
148 | 159 | (11 | ) | ||||||||
| Loss (gain) on real estate owned |
22 | (1 | ) | 23 | ||||||||
| Loss (gain) on sale of fixed assets |
(72 | ) | — | (72 | ) | |||||||
| Real estate owned |
182 | 202 | (20 | ) | ||||||||
| Other operating |
449 | 589 | (140 | ) | ||||||||
|
|
|
|
|
|
|
|||||||
| Total non-interest expense |
7,353 | 7,609 | (256 | ) | ||||||||
|
|
|
|
|
|
|
|||||||
| Income before income tax expense |
1,026 | 319 | 707 | |||||||||
| Income tax expense |
41 | 15 | 26 | |||||||||
|
|
|
|
|
|
|
|||||||
| Net income |
985 | 304 | 681 | |||||||||
|
|
|
|
|
|
|
|||||||
| Net income per share |
||||||||||||
| Basic |
$ | 0.16 | $ | 0.05 | $ | 0.11 | ||||||
|
|
|
|
|
|
|
|||||||
| Fully diluted |
$ | 0.16 | $ | 0.05 | $ | 0.11 | ||||||
|
|
|
|
|
|
|
|||||||
| Dividend per share |
$ | 0.04 | $ | 0.04 | ||||||||
|
|
|
|
|
|||||||||
| Weighted average shares outstanding - basic |
6,212,231 | 6,232,457 | ||||||||||
|
|
|
|
|
|||||||||
| Weighted average shares outstanding - diluted |
6,212,231 | 6,232,457 | ||||||||||
|
|
|
|
|
|||||||||
This information is preliminary and based on Company data available at the time of the presentation.
-MORE-
HFBC Reports Third Quarter Results
Page 14
October 31, 2016
HOPFED BANCORP, INC.
Selected Financial Data
The table below adjusts tax-free investment income for the nine month periods ended September 30, 2016, and September 30, 2015, by $506,000 and $625,000, respectively, for a tax equivalent rate using a cost of funds rate of 0.80% for the nine month period ended September 30, 2016, and 0.95% for the nine month period ended September 30, 2015. The table adjusts tax-free loan income by $20,000 and $5,000, respectively, for nine month periods ended September 30, 2016, and September 30, 2015, respectively, for a tax equivalent rate using the same cost of funds rate:
| Balance | Expense | Rates | Balance | Expense | Rates | |||||||||||||||||||
| 9/30/2016 | 9/30/2016 | 9/30/2016 | 9/30/2015 | 9/30/2015 | 9/30/2015 | |||||||||||||||||||
| (Table Amounts in Thousands, Except Percentages) | ||||||||||||||||||||||||
| Loans |
$ | 562,870 | 19,195 | 4.55 | % | 550,047 | 18,900 | 4.58 | % | |||||||||||||||
| Investments AFS taxable |
194,657 | 3,544 | 2.43 | % | 208,721 | 4,953 | 3.16 | % | ||||||||||||||||
| Investment AFS tax free |
40,283 | 1,525 | 5.05 | % | 53,859 | 1,892 | 4.68 | % | ||||||||||||||||
| Interest bearing deposits |
8,168 | 38 | 0.62 | % | 5,096 | 11 | 0.29 | % | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
| Total interest earning assets |
805,978 | 24,302 | 4.02 | % | 817,723 | 25,756 | 4.20 | % | ||||||||||||||||
|
|
|
|
|
|||||||||||||||||||||
| Other assets |
74,212 | 74,136 | ||||||||||||||||||||||
|
|
|
|
|
|||||||||||||||||||||
| Total assets |
$ | 880,190 | 891,859 | |||||||||||||||||||||
|
|
|
|
|
|||||||||||||||||||||
| Retail time deposits |
257,790 | 1,835 | 0.95 | % | 289,157 | 2,516 | 1.16 | % | ||||||||||||||||
| Brokered deposits |
35,853 | 294 | 1.09 | % | 32,706 | 279 | 1.14 | % | ||||||||||||||||
| Saving & MMDA |
98,510 | 129 | 0.17 | % | 95,016 | 146 | 0.20 | % | ||||||||||||||||
| Interest bearing checking |
203,736 | 888 | 0.58 | % | 195,929 | 810 | 0.55 | % | ||||||||||||||||
| FHLB borrowings |
12,876 | 134 | 1.39 | % | 17,315 | 206 | 1.59 | % | ||||||||||||||||
| Repurchase agreements |
44,186 | 421 | 1.27 | % | 43,726 | 368 | 1.12 | % | ||||||||||||||||
| Subordinated debentures |
10,310 | 287 | 3.71 | % | 10,310 | 553 | 7.15 | % | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
| Total interest bearing liabilities |
663,261 | 3,988 | 0.80 | % | 684,159 | 4,878 | 0.95 | % | ||||||||||||||||
|
|
|
|
|
|||||||||||||||||||||
| Non-interest bearing deposits |
124,788 | 112,198 | ||||||||||||||||||||||
| Other liabilities |
3,501 | 4,363 | ||||||||||||||||||||||
| Stockholders’ equity |
88,640 | 91,139 | ||||||||||||||||||||||
|
|
|
|
|
|||||||||||||||||||||
| Total liabilities and stockholders’ equity |
$ | 880,190 | $ | 891,859 | ||||||||||||||||||||
|
|
|
|
|
|||||||||||||||||||||
| Net interest income |
20,314 | 20,878 | ||||||||||||||||||||||
|
|
|
|
|
|||||||||||||||||||||
| Net interest spread |
3.22 | % | 3.25 | % | ||||||||||||||||||||
|
|
|
|
|
|||||||||||||||||||||
| Net interest margin |
3.36 | % | 3.40 | % | ||||||||||||||||||||
|
|
|
|
|
|||||||||||||||||||||
This information is preliminary and based on Company data available at the time of the presentation.
-MORE-
HFBC Reports Third Quarter Results
Page 15
October 31, 2016
HOPFED BANCORP, INC.
Selected Financial Data
The table below adjusts tax-free investment income for the three month periods ended September 30, 2016, and September 30, 2015, by $162,000 and $197,000, respectively, for a tax equivalent rate using a cost of funds rate of 0.80% for the three month period ended September 30, 2016, and 0.97% for the three month period ended September 30, 2015. The table adjusts tax-free loan income by $6,000 for three month periods ended September 30, 2016, and $3,000 for the three month period ended September 30, 2015, 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 | |||||||||||||||||||
| 9/30/2016 | 9/30/2016 | 9/30/2016 | 9/30/2015 | 9/30/2015 | 9/30/2015 | |||||||||||||||||||
| (Table Amounts in Thousands, Except Percentages) | ||||||||||||||||||||||||
| Loans |
$ | 575,083 | 6,575 | 4.57 | % | $ | 555,792 | 6,377 | 4.59 | % | ||||||||||||||
| Investments AFS taxable |
185,812 | 1,099 | 2.37 | % | 196,524 | 1,237 | 2.52 | % | ||||||||||||||||
| Investment AFS tax free |
38,467 | 488 | 5.07 | % | 51,063 | 595 | 4.66 | % | ||||||||||||||||
| Interest bearing deposit |
5,517 | 10 | 0.73 | % | 6,305 | 3 | 0.19 | % | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
| Total interest earning assets |
804,879 | 8,172 | 4.06 | % | 809,684 | 8,212 | 4.06 | % | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||||||||||
| Other assets |
69,248 | 67,860 | ||||||||||||||||||||||
|
|
|
|
|
|||||||||||||||||||||
| Total assets |
$ | 874,127 | $ | 877,544 | ||||||||||||||||||||
|
|
|
|
|
|||||||||||||||||||||
| Retail time deposits |
255,840 | 617 | 0.96 | % | 286,516 | 840 | 1.17 | % | ||||||||||||||||
| Brokered deposits |
38,574 | 107 | 1.11 | % | 30,149 | 89 | 1.18 | % | ||||||||||||||||
| Savings & MMDA |
99,077 | 42 | 0.17 | % | 94,679 | 45 | 0.19 | % | ||||||||||||||||
| Interest bearing checking |
191,721 | 278 | 0.58 | % | 191,903 | 272 | 0.57 | % | ||||||||||||||||
| FHLB borrowings |
14,022 | 33 | 0.94 | % | 10,685 | 71 | 2.66 | % | ||||||||||||||||
| Repurchase agreements |
46,282 | 139 | 1.20 | % | 47,124 | 130 | 1.10 | % | ||||||||||||||||
| Subordinated debentures |
10,310 | 99 | 3.84 | % | 10,310 | 186 | 7.22 | % | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
| Total interest bearing liabilities |
655,826 | 1,315 | 0.80 | % | 671,366 | 1,633 | 0.97 | % | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||||||||||
| Non-interest bearing deposits |
125,598 | 114,319 | ||||||||||||||||||||||
| Other liabilities |
3,781 | 4,574 | ||||||||||||||||||||||
| Stockholders’ equity |
88,922 | 87,285 | ||||||||||||||||||||||
|
|
|
|
|
|||||||||||||||||||||
| Total liabilities and stockholders’ equity |
$ | 874,127 | $ | 877,544 | ||||||||||||||||||||
|
|
|
|
|
|||||||||||||||||||||
| Net interest income |
6,857 | 6,579 | ||||||||||||||||||||||
|
|
|
|
|
|||||||||||||||||||||
| Interest rate spread |
3.26 | % | 3.09 | % | ||||||||||||||||||||
|
|
|
|
|
|||||||||||||||||||||
| Net interest margin |
3.41 | % | 3.25 | % | ||||||||||||||||||||
|
|
|
|
|
|||||||||||||||||||||
This information is preliminary and based on Company data available at the time of the presentation.
-END-