Attached files
| file | filename |
|---|---|
| 8-K - FORM 8-K - HOPFED BANCORP INC | d248382d8k.htm |
Exhibit 99.1
NEWS
| FOR IMMEDIATE RELEASE | CONTACT: | John E. Peck | ||
| President and CEO | ||||
| (270) 885-1171 |
HOPFED BANCORP, INC. REPORTS THIRD QUARTER RESULTS
HOPKINSVILLE, Ky. (October 27, 2011) – HopFed Bancorp, Inc. (NASDAQ: HFBC) (the “Company”) today reported results for the three and nine month periods ended September 30, 2011. For the three month period ended September 30, 2011, the Company’s net income available to common shareholders was $1,368,000, or $0.18 per share basic and diluted, compared to net income available to common shareholders of $1,508,000, or $0.20 per share basic and diluted, for the three month period ended September 30, 2010. For the nine month period ended September 30, 2011, the Company’s net loss attributable to common shareholders was $180,000, or $0.02 per share basic and diluted, compared to net income available to common shareholders of $4,928,000, or $0.97 per share basic and diluted, for the nine month period ended September 30, 2010.
Commenting on the third quarter results, John E. Peck, President and Chief Executive Officer, said, “At September 30, 2011, other real estate owned totaled $4.6 million as compared to $10.0 million at June 30, 2011. The Company has contracts to sell $1.5 million of other real estate owned in the fourth quarter of 2011. In the nine month period ended September 30, 2011, activities related to other real estate owned resulted in $1.9 million in operating expenses. By reducing the size of our portfolio of other real estate owned, future expenses associated with these assets will be significantly reduced.”
Mr. Peck continued, “The Company has made progress in reducing the amount of impaired assets. At March 31, 2011, the Company’s total impaired assets increased to $80.1 million due primarily to both international and local weather events and a weak national economy. At September 30, 2011, total impaired assets declined to $65.0 million, due to improvements in the local economy, improved profitability expectations in the local agricultural sector and the sale of other real estate owned.”
Mr. Peck continued, “Our local small business community is experiencing a modest amount of revenue growth due to the return of the 101st Airborne from the Middle East as well as an increase in business activity associated with the $4.0 billion construction of the Hemlock Semiconductor facility. The local agriculture community has benefited from higher commodity prices, which have helped to offset lower yields due to weather related events. However, we anticipate mediocre loan demand for the remainder of 2011. The current pace of loan demand affords us the opportunity to focus on reducing the Company’s classified assets to capital ratio below 50%, improve our deposit mix and reducing our cost of funds.”
Mr. Peck concluded, “On July 21, 2011, the Office of Thrift Supervision was merged into the Office of Comptroller of the Currency (OCC). The OCC will be the regulatory agency responsible for supervision of Heritage Bank, our wholly owned bank subsidiary. The Board of Governors of the Federal Reserve System will supervise the Bank Holding Company. We anticipate that this transition will have no immediate impact on the daily operations of Heritage Bank or HopFed Bancorp.”
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HFBC Reports Third Quarter Results
Page 2
October 27, 2011
Financial Highlights
| o | The Company and Bank’s capital ratios remain strong. At September 30 2011, the Company’s tangible book value was $12.92 and our tangible common equity ratio is 9.34%. The Bank’s tier 1 capital and total risk based capital ratios at September 30, 2011, were 9.75% and 17.10%, respectively. The Company’s tier 1 capital and total risk based capital ratios are 11.33% and 19.83%, respectively. |
| o | At September 30, 2011, the Company’s and Bank’s net classified asset to risk based capital ratios were 46.7% and 54.7%, respectively. Net classified assets include all classified assets less any reserve allocation against the allowance for loan losses. At June 30, 2011, these ratios were 56.7% for the Company and 67.0% for the Bank. |
| o | For the three month period ended September 30, 2011, the Company’s net interest margin was 3.00%, as compared to 3.06% for the three month period ended June 30, 2011, and 3.15% for the three month period ended September 30, 2010. |
Asset Quality
At September 30, 2011, the Company’s level of non-accrual loans totaled $4.3 million, as compared to $4.1 million at June 30, 2011, and $5.0 million at December 31, 2010. At September 30, 2011, non-accrual loans plus other real estate owned totaled $8.9 million, or 0.83% of total assets, compared to $14.1 million, or 1.33% of total assets, at June 30, 201,1 and $14.8 million, or 1.37% of total assets at December 31, 2010. The Company’s level of other real estate owned declined from $10.0 million at June 30, 2011, to $4.6 million at September 30, 2011.
A summary of the activity in other real estate owned for the nine month period ended September 30, 2011 is as follows:
| Activity During 2011 | ||||||||||||||||||||||||
| Balance 12/31/2010 |
Foreclosures | Sales | Reduction in Values |
Gain (Loss) on Sale |
Balance 9/30/2011 |
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| (Dollars in Thousands) | ||||||||||||||||||||||||
| One-to-four family mortgages |
$ | 534 | 887 | (1,083 | ) | (111 | ) | (9 | ) | 218 | ||||||||||||||
| Multi-family |
7,266 | — | (2,892 | ) | (773 | ) | (1,094 | ) | 2,507 | |||||||||||||||
| Construction |
624 | 1,144 | (1,282 | ) | (15 | ) | 64 | 535 | ||||||||||||||||
| Land |
482 | 1,070 | (1,325 | ) | (25 | ) | 463 | 665 | ||||||||||||||||
| Non-residential real estate |
900 | 265 | (392 | ) | (116 | ) | (22 | ) | 635 | |||||||||||||||
| Consumer assets owned by bank |
6 | 149 | (151 | ) | — | (3 | ) | 1 | ||||||||||||||||
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| Total |
$ | 9,812 | 3,515 | (7,125 | ) | (1,040 | ) | (601 | ) | 4,561 | ||||||||||||||
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For the nine month period ended September 30, 2011, the Company has incurred $965,000 in losses on loans previously classified as TDR.
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HFBC Reports Third Quarter Results
Page 3
October 27, 2011
A summary of non-accrual loans at September 30, 2011, December 31, 2010, and September 30, 2010, is as follows:
| September 30, 2011 | December 31, 2010 | September 30, 2010 | ||||||||||
| (Dollars in Thousands) | ||||||||||||
| One-to-four family mortgages |
$ | 1,992 | 1,662 | 1,959 | ||||||||
| Multi-family |
— | 301 | 8,414 | |||||||||
| Construction |
— | 1,541 | — | |||||||||
| Land |
1,331 | 363 | 296 | |||||||||
| Non-residential real estate |
639 | 1,043 | 1,272 | |||||||||
| Consumer assets owned by bank |
9 | 23 | 9 | |||||||||
| Commercial loans |
278 | 97 | — | |||||||||
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| Total non-accrual loans |
$ | 4,249 | 5,030 | 11,950 | ||||||||
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At September 30, 2011, the Company’s levels of loans classified as substandard and doubtful were $54.6 million and $2.0 million, respectively, compared to $60.9 million and $2.3 million, respectively at June 30, 2011, and $57.1 million and $1.5 million, respectively, at December 31, 2010. The Company’s specific reserve for impaired loans was $6.0 million at September 30, 2011, $7.2 million at June 30, 2011, and $4.3 million at December 31, 2010. For the nine month period ended September 30, 2011, the Company’s net charge-offs totaled $1.7 million, an annualized rate of 0.39% of average loans.
At September 30, 2011, the Company’s level of performing Troubled Debt Restructurings (“TDRs”) was $6.9 million, as compared to $8.5 million at December 31, 2010. A summary of the activity in loans classified as TDRs for the nine month period ended September 30, 2011 is as follows:
| Balance at December 31, 2010 |
New TDR |
Loss or Foreclosure |
Removed or Payments made |
Balance
at September 31, 2011 |
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| (Dollars in Thousands) | ||||||||||||||||||||
| One-to-four family mortgages |
$ | 4,013 | 1,163 | 213 | 1,299 | 3,664 | ||||||||||||||
| Home equity line of credit |
33 | — | — | 33 | — | |||||||||||||||
| Multi-family |
246 | — | — | 3 | 243 | |||||||||||||||
| Construction |
1,541 | 100 | 1,641 | — | — | |||||||||||||||
| Land |
512 | 963 | 512 | — | 963 | |||||||||||||||
| Non-residential real estate |
3,915 | 1,299 | 1,228 | 397 | 3,589 | |||||||||||||||
| Consumer loans |
69 | 29 | — | 63 | 35 | |||||||||||||||
| Commercial loans |
700 | — | — | 481 | 219 | |||||||||||||||
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| Total performing TDRs |
$ | 11,029 | 3,554 | 3,594 | 2,276 | 8,713 | ||||||||||||||
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HFBC Reports Third Quarter Results
Page 4
October 27, 2011
A summary of TDRs and non-performing TDRs at September 30, 2011 is stated below:
| September 30, 2011 | December 31, 2010 | |||||||
| (Dollars in Thousands) | ||||||||
| One-to-four family mortgages |
$ | 3,664 | 4,013 | |||||
| Home equity line of credit |
— | 33 | ||||||
| Multi-family |
243 | 246 | ||||||
| Construction |
— | 1,541 | ||||||
| Land |
963 | 512 | ||||||
| Non-residential real estate |
3,589 | 3,915 | ||||||
| Consumer loans |
35 | 69 | ||||||
| Commercial loans |
219 | 700 | ||||||
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| Total TDRs |
8,713 | 11,029 | ||||||
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| Less: |
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| TDRs in non-accrual status: |
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| One-to-four family mortgages |
(1,501 | ) | (1,181 | ) | ||||
| Home equity line of credit |
— | — | ||||||
| Multi-family |
— | — | ||||||
| Construction |
— | (1,338 | ) | |||||
| Land |
— | — | ||||||
| Non-residential real estate |
(111 | ) | — | |||||
| Consumer loans |
— | — | ||||||
| Commercial loans |
(208 | ) | — | |||||
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| Total performing TDR |
$ | 6,893 | 8,510 | |||||
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Net Interest Income
For the three month period ended September 30, 2011, the Company’s net interest income was $6.9 million, compared to $7.0 million for the three month period ended June 30, 2011, and $7.7 million for the three month period ended September 30, 2010. For the nine month period ended September 30, 2011, net interest income was $20.7 million, compared to $22.9 million for the nine month period ended September 30, 2010.
For the three month period ended September 30, 2011, the Company’s net interest margin was 3.00%, as compared to 3.06% for the three month period ended June 30, 2011, and 3.15% for the three month period ended September 30, 2010. For the nine month period ended September 30, 2011, the Company’s net interest margin was 3.01% as compared to 3.23% for the nine month period ended September 30, 2010. Weak loan demand and declining investment yields continued to result in lower levels of interest income. As a result of current economic conditions, the Company has chosen to reduce its exposure to Federal Home Loan Bank advances, brokered deposits and selected higher costing time deposits.
Non-interest Income
Non-interest income for the three month period ended September 30, 2011, was $3.3 million, as compared to $2.1 million for the three month period ended June 30, 2011, and $3.1 million for the three month period ended September 30, 2010. Non-interest income for the nine month period ended September 30, 2011, was $7.8 million, as compared to $7.9 million at September 30, 2010.
The increase in non-interest income for the three month period ended September 30, 2011, was primarily the result of $1.2 million in gains on the sale of securities, as compared to $1.1 million for the same three month period ended September 30, 2010 and a $329,000 gain realized in the three month period ended June 30, 2011. Investment gains were realized as management made the decision to sell selected longer duration investments during the quarter to fund reductions in higher cost time deposits.
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HFBC Reports Third Quarter Results
Page 5
October 27, 2011
The Company will continue to sell selected investments as we allow the run-off of higher cost liabilities. Given the Federal Reserve Bank’s current commitment to leave short term rates lower until at least mid-2013, the Company does not anticipate a further reduction in in the duration of its investment portfolio. Lower long term interest rates resulted in a significant quarter over quarter increase in mortgage origination income. Mortgage loan origination revenue increased from $58,000 for the three month period ended June 30, 2011, to $295,000 for the three month period ended September 30, 2011. The majority of fixed rate lending activity involved refinancing activity that is expected to continue into the fourth quarter of 2011.
Non-interest Expense
Non-interest expenses were $7.1 million and $7.4 million for the three month periods ended September 30, 2011, and June 30, 2011, respectively, as compared to $6.9 million for the three month period ended September 30, 2010. For the nine month period ended September 30, 2011, non-interest expenses were $22.0 million, an increase of $2.2 million as compared to the nine month period ended September 30, 2010.
For the nine month period ended September 30, 2011, the increase in non-interest expense was largely the result of a $1.6 million loss on the sale of real estate owned and a $364,000 increase in salaries and benefits expense, as compared to September 30, 2010. For the nine month period ended September 30, 2011, as compared to the nine month period ended September 30, 2010, the Company’s advertising expenses increased by $157,000, occupancy expenses increased by $101,000 and the Company experienced a $145,000 loss on the disposal of bank equipment. During the nine month period ended September 30, 2011, the Company had no other operating expenses increase by more than $100,000, as compared to the nine month period ended September 30, 2010.
Balance Sheet
Total assets were $1.06 billion at September 30, 2011, a decrease of $25.3 million as compared to December 31, 2010. During the first nine months of 2011, the Company’s deposits declined by $15.4 million and Federal Home Loan Bank Advances declined by $12.7 million. The Company’s level of brokered and CDARs deposits declined by $21.7 million, as management chose to reduce its asset base due to weak loan demand and relatively poor investment options. For the nine month period ended September 30, 2011, gross loans declined by approximately $28.5 million, to $581.6 million at September 30, 2011.
The Company
HopFed Bancorp, Inc. is the holding company for Heritage Bank headquartered in Hopkinsville, Kentucky. The Bank has eighteen offices in western Kentucky and middle Tennessee in addition to its subsidiaries, Fall & Fall Insurance of Fulton, Kentucky, Heritage Solutions of Murray, Kentucky, Hopkinsville, Kentucky, Kingston Springs, Tennessee and Pleasant View, Tennessee, and Heritage Mortgage Services of Clarksville, Tennessee. The Bank offers a broad line of banking and financial products and services with the personalized focus of a community banking organization. More information about HopFed Bancorp and Heritage Bank may be found on its website www.bankwithheritage.com.
Forward-Looking Information
Information contained in this press release, other than historical information, may be considered forward-looking in nature and is subject to various risk, uncertainties, and assumptions. Should one or more of these risks or uncertainties materialize, or should the underlying assumptions prove incorrect, actual results may vary materially from those anticipated, estimated or expected. Among the key factors that may have a direct bearing on the Company’s operating results, performance or financial condition are competition and the demand for the Company’s products and services, and other factors as set forth in filings with the Securities and Exchange Commission.
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HFBC Reports Third Quarter Results
Page 6
October 27, 2011
HOPFED BANCORP, INC.
Balance Sheet
(Dollars in thousands)
| September 30, 2011 | December 31, 2010 | |||||||
| (Unaudited) | ||||||||
| Assets |
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| Cash and due from banks |
$ | 44,220 | 54,042 | |||||
| Interest-earning deposits in Federal Home Loan Bank |
6,828 | 6,942 | ||||||
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| Cash and cash equivalents |
51,048 | 60,984 | ||||||
| Federal Home Loan Bank stock, at cost |
4,428 | 4,378 | ||||||
| Securities available for sale |
382,673 | 357,738 | ||||||
| Loans receivable, net of allowance for loan losses of $13,541 at September 30, 2011, and $9,830 at December 31, 2010 |
568,027 | 600,215 | ||||||
| Accrued interest receivable |
5,929 | 6,670 | ||||||
| Real estate and other assets owned |
4,561 | 9,812 | ||||||
| Bank owned life insurance |
9,069 | 8,819 | ||||||
| Premises and equipment, net |
23,627 | 24,289 | ||||||
| Deferred tax assets |
2,239 | 3,788 | ||||||
| Intangible asset |
584 | 810 | ||||||
| Other assets |
5,100 | 5,088 | ||||||
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| Total assets |
$ | 1,057,285 | 1,082,591 | |||||
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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 |
$ | 78,626 | 69,139 | |||||
| Interest-bearing accounts |
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| NOW accounts |
130,664 | 138,936 | ||||||
| Savings and money market accounts |
71,264 | 63,848 | ||||||
| Other time deposits |
530,962 | 555,006 | ||||||
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| Total deposits |
811,516 | 826,929 | ||||||
| Advances from Federal Home Loan Bank |
69,197 | 81,905 | ||||||
| Repurchase agreements |
43,414 | 45,110 | ||||||
| Subordinated debentures |
10,310 | 10,310 | ||||||
| Advances from borrowers for taxes and insurance |
623 | 239 | ||||||
| Dividends payable |
176 | 613 | ||||||
| Accrued expenses and other liabilities |
6,260 | 6,041 | ||||||
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| Total liabilities |
941,496 | 971,147 | ||||||
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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 7
October 27, 2011
HOPFED BANCORP, INC.
Balance Sheet
(Dollars in thousands)
| September 31, 2011 |
December 31, 2010 |
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| (Unaudited) | ||||||||
| Stockholders’ equity |
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| Preferred stock, par value $0.01 per share; authorized—500,000 shares; 18,400 shares issued and outstanding with a liquidation preference of $18,400,000 at September 30, 2011, and December 31, 2010 |
— | — | ||||||
| Common stock, par value $.01 per share; authorized 15,000,000 shares; 7,895,336 issued and 7,492,420 outstanding at September 30, 2011 and 7,737,879 issued and 7,334,963 outstanding at December 31, 2010 (a) |
79 | 77 | ||||||
| Common stock warrants (253,666 issued and outstanding) |
556 | 556 | ||||||
| Additional paid-in-capital |
75,912 | 74,920 | ||||||
| Retained earnings-substantially restricted |
37,671 | 39,994 | ||||||
| Treasury stock (at cost, 402,916 shares at September 30, 2011, and December 31, 2010) |
(5,076 | ) | (5,076 | ) | ||||
| Accumulated other comprehensive income, net of taxes |
6,647 | 973 | ||||||
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| Total stockholders’ equity |
115,789 | 111,444 | ||||||
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| Total liabilities and stockholders’ equity |
$ | 1,057,285 | 1,082,591 | |||||
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| (a) | Shares at September 30, 2011, have been restated to reflect a 2% stock dividend distributed on October 18, 2011 |
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 8
October 27, 2011
HOPFED BANCORP, INC.
Selected Financial Data
(Dollars in thousands)
| For the Three Month Periods | For the Nine Month Periods | |||||||||||||||
| Ended September 30, | Ended September 30, | |||||||||||||||
| 2011 | 2010 | 2011 | 2010 | |||||||||||||
| Interest and dividend income: |
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| Loans receivable |
8,332 | 9,396 | 25,254 | 29,027 | ||||||||||||
| Investment in securities, taxable |
2,581 | 3,165 | 8,003 | 9,122 | ||||||||||||
| Nontaxable securities available for sale |
532 | 635 | 1,733 | 1,809 | ||||||||||||
| Interest-earning deposits |
5 | — | 13 | — | ||||||||||||
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| Total interest and dividend income |
11,450 | 13,196 | 35,003 | 39,958 | ||||||||||||
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| Interest expense: |
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| Deposits |
3,543 | 4,313 | 11,179 | 13,405 | ||||||||||||
| Advances from Federal Home Loan Bank |
625 | 818 | 1,946 | 2,500 | ||||||||||||
| Repurchase agreements |
238 | 213 | 668 | 619 | ||||||||||||
| Subordinated debentures |
186 | 193 | 551 | 557 | ||||||||||||
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| Total interest expense |
4,592 | 5,537 | 14,344 | 17,081 | ||||||||||||
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| Net interest income |
6,858 | 7,659 | 20,659 | 22,877 | ||||||||||||
| Provision for loan losses |
475 | 1,332 | 5,445 | 2,801 | ||||||||||||
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| Net interest income after provision for loan losses |
6,383 | 6,327 | 15,214 | 20,076 | ||||||||||||
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| Non-interest income: |
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| Service charges |
1,020 | 953 | 2,828 | 2,974 | ||||||||||||
| Merchant card income |
194 | 180 | 571 | 519 | ||||||||||||
| Mortgage origination revenue |
295 | 204 | 425 | 391 | ||||||||||||
| Gain on sale of securities |
1,247 | 1,060 | 2,297 | 1,786 | ||||||||||||
| Other than temporarily impairment on available for sale securities |
— | — | (14 | ) | — | |||||||||||
| Income from bank owned life insurance |
84 | 85 | 249 | 263 | ||||||||||||
| Financial services commission |
272 | 293 | 691 | 776 | ||||||||||||
| Gain on sale of real estate owned |
— | 63 | — | 356 | ||||||||||||
| Other operating income |
169 | 247 | 717 | 785 | ||||||||||||
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| Total non-interest income |
3,281 | 3,085 | 7,764 | 7,850 | ||||||||||||
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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 27, 2011
HOPFED BANCORP, INC.
Selected Financial Data
(Dollars in thousands, except share and per share data)
| For the Three Month Periods | For the Nine Month Periods | |||||||||||||||||||
| Ended September 30, | Ended September 30, | |||||||||||||||||||
| 2011 | 2010 | 2011 | 2010 | |||||||||||||||||
| Non-interest expenses: |
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| Salaries and benefits |
3,309 | 3,186 | 9,987 | 9,623 | ||||||||||||||||
| Occupancy expense |
867 | 795 | 2,452 | 2,351 | ||||||||||||||||
| Data processing expense |
653 | 705 | 2,056 | 2,101 | ||||||||||||||||
| State deposit tax |
151 | 162 | 476 | 479 | ||||||||||||||||
| Intangible amortization expense |
65 | 81 | 227 | 276 | ||||||||||||||||
| Professional services expense |
293 | 335 | 986 | 932 | ||||||||||||||||
| Deposit insurance and examination expense |
445 | 759 | 1,604 | 1,547 | ||||||||||||||||
| Advertising expense |
324 | 262 | 931 | 774 | ||||||||||||||||
| Postage and communications expense |
140 | 144 | 421 | 426 | ||||||||||||||||
| Supplies expense |
96 | 95 | 294 | 287 | ||||||||||||||||
| Loss on disposal of equipment |
5 | — | 145 | — | ||||||||||||||||
| Loss on sale of real estate owned |
570 | — | 1,642 | — | ||||||||||||||||
| Real estate owned expenses |
16 | 36 | 216 | 218 | ||||||||||||||||
| Other operating expenses |
193 | 296 | 575 | 815 | ||||||||||||||||
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| Total non-interest expense |
7,127 | 6,856 | 22,012 | 19,829 | ||||||||||||||||
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| Income before income tax expense |
2,537 | 2,556 | 966 | 8,097 | ||||||||||||||||
| Income tax expense |
909 | 788 | 375 | 2,398 | ||||||||||||||||
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| Net income |
1,628 | 1,768 | 591 | 5,699 | ||||||||||||||||
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| Less: |
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| Dividend on preferred shares |
232 | 232 | 688 | 688 | ||||||||||||||||
| Accretion dividend on preferred shares |
28 | 28 | 83 | 83 | ||||||||||||||||
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| Net income (loss) available (attributable) to common shareholders |
$ | 1,368 | $ | 1,508 | $ | (180 | ) | $ | 4,928 | |||||||||||
|
|
|
|
|
|
|
|
|
|||||||||||||
| Net income (loss) available (attributable) to common shareholders |
||||||||||||||||||||
| Per share, basic |
$ | 0.18 | $ | 0.20 | $ | (0.02 | ) | $ | 0.97 | |||||||||||
|
|
|
|
|
|
|
|
|
|||||||||||||
| Per share, diluted |
$ | 0.18 | $ | 0.20 | $ | (0.02 | ) | $ | 0.97 | |||||||||||
|
|
|
|
|
|
|
|
|
|||||||||||||
| Dividend per share |
$ | 0.02 | $ | 0.08 | $ | 0.18 | $ | 0.32 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||||||
| Weighted average shares outstanding—basic |
7,481,448 | a | 7,416,541 | 7,456,750 | a |
5,088,374 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||||||
| Weighted average shares outstanding—diluted |
7,481,448 | a | 7,416,541 | 7,456,750 | a |
5,088,374 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||||||
| (a) | Weighted average shares have been adjusted to reflect a 2% stock dividend dividend on October 18, 2011 |
This information is preliminary and based on company data available at the time of the presentation.
-MORE-
HFBC Reports Third Quarter Results
Page 10
October 27, 2011
HOPFED BANCORP, INC.
Selected Financial Data
(Dollars in thousands)
| For the Three Months Ended |
|
|||||||||||
| Change from | ||||||||||||
| 9/30/2011 | 6/30/2011 | Prior Quarter | ||||||||||
| Interest and dividend income: |
||||||||||||
| Loans receivable |
$ | 8,332 | 8,440 | (108 | ) | |||||||
| Investment in securities, taxable |
2,581 | 2,732 | (151 | ) | ||||||||
| Nontaxable securities available for sale |
532 | 590 | (58 | ) | ||||||||
| Interest-earning deposits |
5 | 4 | 1 | |||||||||
|
|
|
|
|
|
|
|||||||
| Total interest and dividend income |
11,450 | 11,766 | (316 | ) | ||||||||
|
|
|
|
|
|
|
|||||||
| Interest expense: |
||||||||||||
| Deposits |
3,543 | 3,731 | (188 | ) | ||||||||
| Advances from Federal Home Loan Bank |
625 | 627 | (2 | ) | ||||||||
| Repurchase agreements |
238 | 225 | 13 | |||||||||
| Subordinated debentures |
186 | 180 | 6 | |||||||||
|
|
|
|
|
|
|
|||||||
| Total interest expense |
4,592 | 4,763 | (171 | ) | ||||||||
|
|
|
|
|
|
|
|||||||
| Net interest income |
6,858 | 7,003 | (145 | ) | ||||||||
| Provision for loan losses |
475 | 452 | 23 | |||||||||
|
|
|
|
|
|
|
|||||||
| Net interest income after provision for loan losses |
6,383 | 6,551 | (168 | ) | ||||||||
|
|
|
|
|
|
|
|||||||
| Non-interest income: |
||||||||||||
| Service charges |
1,020 | 952 | 68 | |||||||||
| Merchant card income |
194 | 195 | (1 | ) | ||||||||
| Mortgage origination revenue |
295 | 58 | 237 | |||||||||
| Gain on sale of securities |
1,247 | 329 | 918 | |||||||||
| Income from bank owned life insurance |
84 | 76 | 8 | |||||||||
| Financial services commission |
272 | 232 | 40 | |||||||||
| Other operating income |
169 | 276 | (107 | ) | ||||||||
|
|
|
|
|
|
|
|||||||
| Total non-interest income |
3,281 | 2,118 | 1,163 | |||||||||
|
|
|
|
|
|
|
|||||||
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 27, 2011
HOPFED BANCORP, INC.
Selected Financial Data
(Dollars in thousands, except share and per share data)
| For the Three Months Ended |
|
|||||||||||
| Change from | ||||||||||||
| 9/30/2011 | 6/30/2011 | Prior Quarter | ||||||||||
| Non-interest expenses: |
||||||||||||
| Salaries and benefits |
$ | 3,309 | 3,352 | (43 | ) | |||||||
| Occupancy expense |
867 | 797 | 70 | |||||||||
| Data processing expense |
653 | 716 | (63 | ) | ||||||||
| State deposit tax |
151 | 157 | (6 | ) | ||||||||
| Intangible amortization expense |
65 | 81 | (16 | ) | ||||||||
| Professional services expense |
293 | 378 | (85 | ) | ||||||||
| Deposit insurance and examination expense |
445 | 567 | (122 | ) | ||||||||
| Advertising expense |
324 | 328 | (4 | ) | ||||||||
| Postage and communications expense |
140 | 133 | 7 | |||||||||
| Supplies expense |
96 | 102 | (6 | ) | ||||||||
| Loss on disposal of equipment |
5 | 2 | 3 | |||||||||
| Loss on sale of real estate owned |
570 | 563 | 7 | |||||||||
| Real estate owned expenses |
16 | 127 | (111 | ) | ||||||||
| Other operating expenses |
193 | 133 | 60 | |||||||||
|
|
|
|
|
|
|
|||||||
| Total non-interest expense |
7,127 | 7,436 | (309 | ) | ||||||||
|
|
|
|
|
|
|
|||||||
| Income before income tax expense |
2,537 | 1,233 | 1,304 | |||||||||
| Income tax expense |
909 | 426 | 483 | |||||||||
|
|
|
|
|
|
|
|||||||
| Net income |
1,628 | 807 | 821 | |||||||||
|
|
|
|
|
|
|
|||||||
| Less: |
||||||||||||
| Dividend on preferred shares |
232 | 229 | 3 | |||||||||
| Accretion dividend on preferred shares |
28 | 28 | — | |||||||||
|
|
|
|
|
|
|
|||||||
| Net income available to common stockholders |
1,368 | $ | 550 | 818 | ||||||||
|
|
|
|
|
|
|
|||||||
| Net income available to common stockholders |
||||||||||||
| Per share, basic |
$ | 0.18 | $ | 0.07 | 0.11 | |||||||
|
|
|
|
|
|
|
|||||||
| Per share, diluted |
$ | 0.18 | $ | 0.07 | 0.11 | |||||||
|
|
|
|
|
|
|
|||||||
| Dividend per share |
$ | 0.02 | $ | 0.08 | ||||||||
|
|
|
|
|
|||||||||
| Weighted average shares outstanding—basic |
7,481,448 | 7,467,503 | ||||||||||
|
|
|
|
|
|||||||||
| Weighted average shares outstanding—diluted |
7,481,448 | 7,467,503 | ||||||||||
|
|
|
|
|
|||||||||
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 27, 2011
HOPFED BANCORP, INC.
Selected Financial Data
The table below adjusts tax-free investment income for the three month periods ended September 30, 2011, and September 30, 2010, by $250,000 and $292,000, respectively; for a tax equivalent rate using a cost of funds rate of 2.00% for the three month period ended September 30, 2011, and 2.40% for the three month period ended September 30, 2010. The table adjusts tax-free loan income by $7,000 for three month period ended September 30, 2011 and $10,000 for the three month period ended September, 2010, for a tax equivalent rate using the same cost of funds rate:
| Average Balance 9/30/2011 |
Income & Expense 9/30/2011 |
Average Rates 9/30/2011 |
Average Balance 9/30/2010 |
Income & Expense 9/30/2010 |
Average Rates 9/30/2010 |
|||||||||||||||||||
| (Dollars in Thousands, Except Percentages) | ||||||||||||||||||||||||
| Loans |
$ | 568,600 | $ | 8,339 | 5.87 | % | $ | 623,398 | $ | 9,406 | 6.04 | % | ||||||||||||
| Investments AFS taxable |
316,104 | 2,586 | 3.27 | % | 320,891 | 3,165 | 3.95 | % | ||||||||||||||||
| Investment AFS tax free |
64,712 | 782 | 4.84 | % | 67,111 | 927 | 5.53 | % | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
| Total interest earning assets |
949,416 | 11,707 | 4.93 | % | 1,011,400 | 13,498 | 5.34 | % | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||||||||||
| Other assets |
118,896 | 104,919 | ||||||||||||||||||||||
|
|
|
|
|
|||||||||||||||||||||
| Total assets |
$ | 1,068,312 | $ | 1,116,319 | ||||||||||||||||||||
|
|
|
|
|
|||||||||||||||||||||
| Retail time deposits |
$ | 475,287 | 2,773 | 2.33 | % | $ | 487,998 | 3,337 | 2.74 | % | ||||||||||||||
| Brokered deposits |
76,557 | 374 | 1.95 | % | 83,632 | 488 | 2.33 | % | ||||||||||||||||
| Now accounts |
133,022 | 358 | 1.08 | % | 140,826 | 431 | 1.22 | % | ||||||||||||||||
| MMDA and savings accounts |
68,913 | 38 | 0.22 | % | 62,920 | 57 | 0.36 | % | ||||||||||||||||
| FHLB borrowings |
70,575 | 625 | 3.54 | % | 89,874 | 818 | 3.64 | % | ||||||||||||||||
| Repurchase agreements |
39,323 | 238 | 2.42 | % | 46,459 | 213 | 1.83 | % | ||||||||||||||||
| Subordinated debentures |
10,310 | 186 | 7.22 | % | 10,310 | 193 | 7.49 | % | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
| Total interest bearing liabilities |
873,987 | 4,592 | 2.10 | % | 922,019 | 5,537 | 2.40 | % | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||||||||||
| Non-interest bearing deposits |
74,077 | 69,962 | ||||||||||||||||||||||
| Other liabilities |
4,983 | 5,503 | ||||||||||||||||||||||
| Stockholders’ equity |
115,265 | 118,835 | ||||||||||||||||||||||
|
|
|
|
|
|||||||||||||||||||||
| Total liabilities and stockholders’ equity |
$ | 1,068,312 | $ | 1,116,319 | ||||||||||||||||||||
|
|
|
|
|
|||||||||||||||||||||
| Net interest income |
$ | 7,115 | $ | 7,961 | ||||||||||||||||||||
|
|
|
|
|
|||||||||||||||||||||
| Interest rate spread |
2.83 | % | 2.94 | % | ||||||||||||||||||||
|
|
|
|
|
|||||||||||||||||||||
| Net yield on interest earning assets |
3.00 | % | 3.15 | % | ||||||||||||||||||||
|
|
|
|
|
|||||||||||||||||||||
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 27, 2011
HOPFED BANCORP, INC.
Selected Financial Data
The table below adjusts tax-free investment income for the nine month periods ended September 30, 2011, and September 30, 2010, by $810,000 and $832,000, respectively; for a tax equivalent rate using a cost of funds rate of 2.15% for the nine month period ended September 30, 2011, and 2.50% for the nine month period ended September 30, 2010. The table adjusts tax-free loan income by $27,000 for nine month period ended September 30, 2011 and $35,000 for the nine month period ended September 30, 2010, for a tax equivalent rate using the same cost of funds rate:
| Average Balance 9/30/2011 |
Income and Expense 9/30/2011 |
Average Rates 9/30/2011 |
Average Balance 9/30/2010 |
Income and Expense 9/30/2010 |
Average Rates 9/30/2010 |
|||||||||||||||||||
| (Dollars in Thousands, Except Percentages) | ||||||||||||||||||||||||
| Loans |
$ | 579,888 | $ | 25,281 | 5.81 | % | $ | 635,118 | $ | 29,069 | 6.10 | % | ||||||||||||
| Investments AFS taxable |
305,778 | 8,016 | 3.50 | % | 282,627 | 9,122 | 4.30 | % | ||||||||||||||||
| Investment AFS tax free |
66,877 | 2,543 | 5.07 | % | 61,776 | 2,641 | 5.70 | % | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
| Total interest earning assets |
952,543 | 35,840 | 5.02 | % | 979,521 | 40,832 | 5.56 | % | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||||||||||
| Other assets |
121,080 | 99,898 | ||||||||||||||||||||||
|
|
|
|
|
|||||||||||||||||||||
| Total assets |
$ | 1,073,623 | $ | 1,079,419 | ||||||||||||||||||||
|
|
|
|
|
|||||||||||||||||||||
| Retail time deposits |
$ | 470,894 | 8,608 | 2.44 | % | $ | 492,589 | 10,542 | 2.85 | % | ||||||||||||||
| Brokered deposits |
84,139 | 1,222 | 1.94 | % | 84,415 | 1,564 | 2.47 | % | ||||||||||||||||
| Now accounts |
137,961 | 1,256 | 1.21 | % | 123,816 | 1,203 | 1.30 | % | ||||||||||||||||
| MMDA and savings accounts |
67,369 | 93 | 0.18 | % | 62,745 | 96 | 0.20 | % | ||||||||||||||||
| FHLB borrowings |
72,557 | 1,946 | 3.58 | % | 94,081 | 2,500 | 3.54 | % | ||||||||||||||||
| Repurchase agreements |
39,676 | 668 | 2.24 | % | 41,652 | 619 | 1.98 | % | ||||||||||||||||
| Subordinated debentures |
10,310 | 551 | 7.13 | % | 10,310 | 559 | 7.23 | % | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
| Total interest bearing liabilities |
882,906 | 14,344 | 2.17 | % | 909,608 | 17,083 | 2.50 | % | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||||||||||
| Non-interest bearing deposits |
72,216 | 68,434 | ||||||||||||||||||||||
| Other liabilities |
4,905 | 5,032 | ||||||||||||||||||||||
| Shareholders equity |
113,596 | 96,345 | ||||||||||||||||||||||
|
|
|
|
|
|||||||||||||||||||||
| Total liabilities and shareholder equity |
$ | 1,073,623 | $ | 1,079,419 | ||||||||||||||||||||
|
|
|
|
|
|||||||||||||||||||||
| Net interest income |
$ | 21,496 | $ | 23,749 | ||||||||||||||||||||
|
|
|
|
|
|||||||||||||||||||||
| Interest rate spread |
2.85 | % | 3.06 | % | ||||||||||||||||||||
|
|
|
|
|
|||||||||||||||||||||
| Net interest margin |
3.01 | % | 3.23 | % | ||||||||||||||||||||
|
|
|
|
|
|||||||||||||||||||||
This information is preliminary and based on company data available at the time of the presentation.
-MORE-