Exhibit 99.1

 

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

HOPFED BANCORP, INC. REPORTS FOURTH QUARTER RESULTS

HOPKINSVILLE, Ky. (January 30, 2012) – HopFed Bancorp, Inc. (NASDAQ: HFBC) (the “Company”), the holding company for Heritage Bank (the “Bank”), today reported results for the three and twelve month periods ended December 31, 2011. For the three month period ended December 31, 2011, the Company’s net income available to common shareholders was $2.1 million, or $0.28 per share basic and diluted, compared to net income available to common shareholders of $557,000, or $0.07 per share basic and diluted, for the three month period ended December 31, 2010. For the twelve month period ended December 31, 2011, the Company’s net income available to common shareholders was $1.9 million, or $0.25 per share basic and diluted, compared to net income available to common shareholders of $5.5 million, or $0.96 per share basic and diluted, for the twelve month period ended December 31, 2010.

Commenting on the fourth quarter results, John E. Peck, President and Chief Executive Officer, said, “Management’s focus on reducing the level of other real estate owned is paving the way for our improved financial performance. At December 31, 2011, the balance on other real estate owned totaled $2.3 million, compared to $9.8 million at December 31, 2010, and $10.0 million at June 30, 2011. For the three month period ended December 31, 2011, the Company incurred losses and expenses related to other real estate owned of $121,000, as compared to $586,000 for the three month period ended September 30, 2011. For the twelve month period ended December 31, 2011, losses and expenses related to other real estate owned totaled $2.0 million, as compared to a net gain of $57,000 for the year ended December 31, 2010. By reducing the balance in other real estate owned, we anticipate that future losses and operating cost associated with these properties will be minimal.”

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 December 31, 2011, total impaired assets declined to $54.9 million, due to improvements in the local economy, improved profitability expectations in the agricultural sector and the sale of other real estate owned.”

Financial Highlights

 

•

The Company and Bank’s capital ratios remain strong. At December 31, 2011, the Company’s tangible book value was $13.21 and our tangible common equity ratio is 9.69%. The Bank’s tier 1 capital and total risk based capital ratios at December 31, 2011, are 10.18% and 17.63%, respectively. The Company’s tier 1 capital and total risk based capital ratios are 11.71% and 20.26%, respectively.

 

•

At December 31, 2011, the Company’s and Bank’s net classified asset to risk based capital ratios were 43.0% and 49.9%, 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.

 

•

At December 31, 2011, the Company’s allowance for loan loss totaled $11.3 million, or 1.98% of total loans and 183.62% of non-accrual loans. In the three month period ended December 31, 2011, the Company charged off approximately $2.5 million in loans previously reserved for and classified as substandard. The loans in question have been written down to a percentage of their new appraised values. These charge offs did not materially affect the current required funding levels of the allowance for loan loss account as management had previously allocated adequate reserves for these loans.

 

•

For the three month period ended December 31, 2011, the Company’s net interest margin was 3.13%, as compared to 3.00% for the three month period ended September 30, 2011, and 3.07% for the three month period ended December 31, 2010.

 

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HFBC Reports Fourth Quarter Results

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January 30, 2012

 

Asset Quality

At December 31, 2011, the Company’s level of non-accrual loans totaled $6.1 million, as compared to $4.3 million at September 30, 2011, and $5.0 million at December 31, 2010. The increase in non-accrual loans was the result of two out of market participation loans totaling $2.2 million being placed into non-accrual status. Prior to being placed into non-accrual status, the Company incurred write downs of approximately $2.1 million on the book balances of these loans. At December 31, 2011, both loans were less than thirty days past due.

A summary of non-accrual loans at December 31, 2011, and December 31, 2010, is as follows:

 

		December 31, 2011				December 31, 2010
		(Dollars in Thousands)
One-to-four family mortgages			2,175				1,559
Home equity line of credit			134				103
Multi-family			—				301
Construction			—				1,541
Land			3,561				363
Non-residential real estate			—				1,043
Consumer loans			9				23
Commercial loans			254				97
Total			6,133				5,030

At December 31, 2011, non-accrual loans plus other real estate owned totaled $8.4 million, or 0.81% of total assets, as compared to $8.9 million, or 0.83% of total assets, at September 30, 2011, and $14.8 million, or 1.37% of total assets at December 31, 2010. The Company’s level of other real estate owned has declined from $10.0 million at June 30, 2011, to $2.3 million at December 31, 2011.

A summary of the activity in other real estate owned for the nine month period ended December 31, 2011, is as follows:

 

						Activity During 2011
		Balance 12/31/2010				Foreclosures				Sales				Reduction in Values				Gain (Loss) on Sales				Balance 12/31/2011
						(Dollars in Thousands)
One-to-four family mortgages			534				1,309				(1,083	)			(111	)			(9	)			640
Multi-family			7,266				—				(4,624	)			(973	)			(925	)			744
Construction			624				1,144				(1,577	)			(15	)			54				230
Land			482				1,070				(1,325	)			(46	)			463				644
Non-residential real estate			900				265				(1,027	)			(137	)			(1	)			—
Consumer assets			6				167				(161	)			—				(3	)			9
Total			9,812				3,955				(9,797	)			(1,282	)			(421	)			2,267

 

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HFBC Reports Fourth Quarter Results

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January 30, 2012

 

At December 31, 2011, the Company’s levels of loans classified as substandard and doubtful were $53.2 million and $1.7 million, respectively, compared to $54.8 million and $2.0 million, respectively at September 30, 2011, and $57.1 million and $1.5 million, respectively, at December 31, 2010. The Company’s specific reserve for impaired loans was $4.1 million at December 31, 2011, $6.0 million at September 30, 2011, and $4.3 million at December 31, 2010. For the twelve month period ended December 31, 2011, the Company’s net charge-offs totaled $4.4 million, an annualized rate of 0.76% of average loans.

At December 31, 2011, the Company’s level of performing Troubled Debt Restructurings (“TDRs”) was $6.2 million, as compared to $8.0 million at December 31, 2010. A summary of the activity in loans classified as TDRs for the twelve month period ended December 31, 2011, is as follows:

 

		Balance at December 31, 2010				New TDR				Loss or Foreclosure				Removed due to performance				Balance at December 31, 2011
		(Dollars in Thousands)
One-to-four family mortgages			3,932				1,163				401				2,173				2,521
Home equity line of credit			114				—				—				114				—
Junior Lien			—				857				—				—				857
Multi-family			246				—				5				241				—
Construction			1,541				100				1,641				—				—
Land			512				963				534				—				941
Non-residential real estate			3,915				1,540				1,228				860				3,367
Consumer loans			69				27				9				54				33
Commercial loans			700				102				235				442				125
Total TDR			11,029				4,752				4,053				3,884				7,844

A summary of TDRs and non-performing TDRs at December 31, 2011, and December 31, 2010, is stated below:

 

		December 31, 2011				December 31, 2010
		(Dollars in Thousands)
One-to-four family mortgages		$	2,521				3,932
Home equity line of credit			—				114
Junior lien			857				—
Multi-family			—				246
Construction			—				1,541
Land			941				512
Non-residential real estate			3,367				3,915
Consumer loans			33				69
Commercial loans			125				700
Total TDR		$	7,844				11,029
Less:
TDR in non-accrual status
One-to-four family mortgages			(1,410	)			(1,181	)
Home equity line of credit			—				—
Junior lien			(100	)			—
Multi-family			—				—
Construction			—				(1,338	)
Land			—				(512	)
Non-residential real estate			(1	)			—
Consumer loans			(1	)			—
Commercial loans			(105	)			—
Total performing TDR		$	6,227			$	7,998

 

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HFBC Reports Fourth Quarter Results

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January 30, 2012

 

For the twelve month period ended December 31, 2011, the Company has incurred approximately $1.0 million in losses on loans previously classified as TDR.

Net Interest Income

For the three month period ended December 31, 2011, the Company’s net interest income was $7.2 million, compared to $6.9 million for the three month period ended September 30, 2011, and $7.3 million for the three month period ended December 31, 2010. For the twelve month period ended December 31, 2011, net interest income was $27.8 million, compared to $30.2 million for the twelve month period ended December 31, 2010. The Company has experienced positive net interest income trends in the last two quarters as we have chosen to focus on reducing our cost of funds during a time of weak loan demand and declining investment yields. The current strategy of allowing selected liabilities to leave the Company is likely to continue until a time of improved loan demand and stronger regional economic activity.

For the three month period ended December 31, 2011, the Company’s net interest margin was 3.13%, as compared to 3.00% for the three month period ended September 30, 2011, and 3.07% for the three month period ended December 31, 2010. For the twelve month period ended December 31, 2011, the Company’s net interest margin was 3.02% as compared to 3.19% for the twelve month period ended December 31, 2010. Significant enhancements to the Company’s net interest margin will continue to be dependent on loan demand.

Non-interest Income

Non-interest income for the three month period ended December 31, 2011, was $2.4 million, as compared to $3.3 million for the three month period ended September 30, 2011, and $3.6 million for the three month period ended December 31, 2010. Non-interest income for the twelve month period ended December 31, 2011, was $10.1 million, as compared to $11.1 million at December 31, 2010.

The decline in non-interest income for the three month period ended December 31, 2011, as compared to the three month period ended September 30, 2011, was primarily the result of $600,000 reduction in gains on the sale of securities and a $141,000 impairment charge related to two private label CMO’s which were tested for impairment during the quarter. The decline in non-interest income for the three month periods ended December 31, 2011, and December 31, 2010, was the result of a $1.1 million reduction in investment gains and the above mentioned impairment charge.

The $1.2 million decline in non-interest income for the twelve month period ended December 31, 2011, as compared to December 31, 2010, was the result of several factors, the most significant being the $600,000 decline in investment gains. However, most non-interest income producing items experienced a reduction in 2011 as compared to 2010. The lone exceptions were mortgage loan origination revenue and merchant card income, which increased from $590,000 and $698,000 for the twelve month period ended December 31, 2010, respectively, as compared to $720,000 and $768,000 for the twelve month period ended December 31, 2011, respectively.

Non-interest Expense

Non-interest expenses were $6.7 million, $7.1 million and $6.7 million for the three month periods ended December 31, 2011, September 30, 2011, and December 31, 2010, respectively. For the twelve month period ended December 31, 2011, non-interest expenses were $28.7 million, an increase of $2.5 million as compared to the twelve month period ended December 31, 2010.

For the twelve month period ended December 31, 2011, the increase in non-interest expense was largely the result of a $1.7 million loss on the sale of other real estate owned, a $145,000 loss on the disposal of equipment and a $500,000 increase in salaries and benefits expense, as compared to the twelve month period ended December 31, 2010. Other expense items increasing by more than 5% from the prior year include professional services and FDIC expenses.

 

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HFBC Reports Fourth Quarter Results

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January 30, 2012

 

Balance Sheet

Total assets were $1.04 billion at December 31, 2011, a decrease of $41.8 million as compared to December 31, 2010. The decline in assets is largely the result of a reduction in loans outstanding offset by a reduction in brokered deposits and Federal Home Loan Bank (FHLB) advances. At December 31, 2011, brokered deposits totaled $58.3 million, as compared to $91.4 million at December 31, 2010. At December 31, 2011, the $33.1 million decline in brokered deposits was slightly offset by a $3.3 million increase in retail deposits. At December 31, 2011, FHLB advances totaled $63.3 million, as compared to $81.9 million at December 31, 2010. The decline in FHLB advances was achieved through scheduled maturity and principal payments. Likewise, the decline in brokered deposits was the result of scheduled maturities not being replaced by management due to a lack of productive uses for the funds.

For the twelve month period ended December 31, 2011, gross loans declined by approximately $43.8 million, to $556.4 million as compared to $600.2 million at December 31, 2010. During the three month period ended December 31, 2011, the decline in loans included approximately $2.7 million in write downs of loan balances in which all future payments are dependent on the sale of all or a portion of the collateral. These loans have been classified as impaired for several quarters with significant reserves previously allocated against these credits.

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 Fourth Quarter Results

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January 30, 2012

 

HOPFED BANCORP, INC.

Balance Sheet

(Dollars in thousands)

 

		December 31, 2011				December 31, 2010
		(Unaudited)
Assets
Cash and due from banks		$	32,385				54,042
Interest-earning deposits in Federal Home Loan Bank			16,375				6,942
Cash and cash equivalents			48,760				60,984
Federal Home Loan Bank stock, at cost			4,428				4,378
Securities available for sale			383,782				357,738
Loans receivable, net of allowance for loan losses of $11,262 at December 31, 2011, and $9,830 at December 31, 2010			556,360				600,215
Accrued interest receivable			6,183				6,670
Real estate and other assets owned			2,267				9,812
Bank owned life insurance			9,135				8,819
Premises and equipment, net			23,431				24,289
Deferred tax assets			1,132				3,788
Intangible asset			519				810
Other assets			4,823				5,088
Total assets		$	1,040,820				1,082,591
Liabilities and Stockholders’ Equity
Liabilities:
Deposits:
Non-interest-bearing accounts		$	79,550				69,139
Interest-bearing accounts
NOW accounts			130,114				138,936
Savings and money market accounts			70,443				63,848
Other time deposits			519,988				555,006
Total deposits			800,095				826,929
Advances from Federal Home Loan Bank			63,319				81,905
Repurchase agreements			43,080				45,110
Subordinated debentures			10,310				10,310
Advances from borrowers for taxes and insurance			153				239
Dividends payable			176				613
Accrued expenses and other liabilities			5,204				6,041
Total liabilities			922,337				971,147

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

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January 30, 2012

 

HOPFED BANCORP, INC.

Balance Sheet

(Dollars in thousands)

 

		December 31, 2011				December 31, 2010
		(Unaudited)
Stockholders’ equity
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 December 31, 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 December 31, 2011, and 7,884,364 issued and 7,481,448 outstanding at December 31, 2010 (a)			79				77
Common stock warrants (253,666 issued and outstanding) (a)			556				556
Additional paid-in-capital			75,967				74,920
Retained earnings-substantially restricted			39,591				39,994
Treasury stock (at cost, 402,916 shares at December 31, 2011, and December 31, 2010)			(5,076	)			(5,076	)
Accumulated other comprehensive income, net of taxes			7,366				973
Total stockholders’ equity			118,483				111,444
Total liabilities and stockholders’ equity		$	1,040,820				1,082,591

 

(a)	Shares and warrants have been restated to reflect stock dividends distributed through 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 Fourth Quarter Results

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January 30, 2012

 

HOPFED BANCORP, INC.

Selected Financial Data

(Dollars in thousands)

 

		For the Three Month Periods Ended December 31,								For the Twelve Month Periods Ended December 31,
		2011				2010				2011				2010
Interest and dividend income:
Loans receivable			8,239				9,010				33,493				38,037
Investment in securities, taxable			2,462				2,801				10,465				11,911
Nontaxable securities available for sale			530				648				2,263				2,457
Interest-earning deposits			6				—				19				12
Total interest and dividend income			11,237				12,459				46,240				52,417
Interest expense:
Deposits			3,028				3,979				14,207				17,384
Advances from Federal Home Loan Bank			611				792				2,557				3,292
Repurchase agreements			241				212				909				831
Subordinated debentures			191				182				742				739
Total interest expense			4,071				5,165				18,415				22,246
Net interest income			7,166				7,294				27,825				30,171
Provision for loan losses			476				3,169				5,921				5,970
Net interest income afterprovision for loan losses			6,690				4,125				21,904				24,201
Non-interest income:
Service charges			985				948				3,813				3,922
Merchant card income			197				179				768				698
Mortgage origination revenue			295				199				720				590
Gain on sale of securities			600				1,718				2,897				3,504
Other than temporarily impairment on available for sale securities			(141	)			—				(155	)			—
Income from bank owned life insurance			66				81				315				344
Financial services commission			203				195				894				971
Other operating income			224				292				941				1,077
Total non-interest income			2,429				3,612				10,193				11,106

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

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January 30, 2012

 

HOPFED BANCORP, INC.

Selected Financial Data

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

 

		For the Three Month Periods Ended December 31,								For the Twelve Month Periods Ended December 31,
		2011				2010				2011				2010
Non-interest expenses:
Salaries and benefits			3,279				3,139				13,266				12,762
Occupancy expense			817				807				3,269				3,158
Data processing expense			589				706				2,645				2,807
State deposit tax			151				162				627				640
Intangible amortization expense			65				81				292				358
Professional services expense			386				293				1,372				1,225
Deposit insurance and examination expense			417				560				2,021				2,107
Advertising expense			304				341				1,235				1,115
Postage and communications expense			128				131				549				557
Supplies expense			105				117				399				404
Loss on disposal of equipment			—				—				145				—
(Gain) Loss on sale of real estate owned			61				35				1,703				(321	)
Real estate owned expenses			60				46				276				264
Other operating expenses			319				286				894				1,102
Total non-interest expense			6,681				6,704				28,693				26,178
Income before income tax expense			2,438				1,033				3,404				9,129
Income tax expense			109				216				484				2,613
Net income			2,329				817				2,920				6,516
Less:
Dividend on preferred shares			232				232				920				920
Accretion dividend on preferred shares			28				28				111				111
Net income available to common shareholders		$	2,069			$	557			$	1,889			$	5,485
Net income available to common shareholders
Per share, basic		$	0.28			$	0.07			$	0.25			$	0.96
Per share, diluted		$	0.28			$	0.07			$	0.25			$	0.96
Dividend per share		$	0.02			$	0.08			$	0.20			$	0.40
Weighted average shares outstanding - basic (a)			7,484,420				7,462,092				7,460,294				5,732,495
Weighted average shares outstanding - diluted (a)			7,484,420				7,462,092				7,460,294				5,732,495

 

(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.

 

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HFBC Reports Fourth Quarter Results

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January 30, 2012

 

HOPFED BANCORP, INC.

Selected Financial Data

(Dollars in thousands)

 

		For the Three Months Ended
		12/31/2011				9/30/2011				Change from Prior Quarter
Interest and dividend income:
Loans receivable			8,239				8,332				(93	)
Investment in securities, taxable			2,462				2,581				(119	)
Nontaxable securities available for sale			530				532				(2	)
Interest-earning deposits			6				5				1
Total interest and dividend income			11,237				11,450				(213	)
Interest expense:
Deposits			3,028				3,543				(515	)
Advances from Federal Home Loan Bank			611				625				(14	)
Repurchase agreements			241				238				3
Subordinated debentures			191				186				5
Total interest expense			4,071				4,592				(521	)
Net interest income			7,166				6,858				308
Provision for loan losses			476				475				1
Net interest income after provision for loan losses			6,690				6,383				307
Non-interest income:
Service charges			985				1,020				(35	)
Merchant card income			197				194				3
Mortgage orgination revenue			295				295				0
Gain on sale of securities			600				1,247				(647	)
Income from bank owned life insurance			68				84				(16	)
Other than temporarily impairment on available for sale securities			(141	)			—				(141	)
Financial services commission			203				272				(69	)
Other operating income			222				169				53
Total non-interest income			2,429				3,281				(852	)

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

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January 30, 2012

 

HOPFED BANCORP, INC.

Selected Financial Data

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

 

		For the Three Months Ended
		12/31/2011				9/30/2011				Change from Prior Quarter
Non-interest expenses:
Salaries and benefits		$	3,279				3,309				(30	)
Occupancy expense			817				867				(50	)
Data processing expense			589				653				(64	)
State deposit tax			151				151				0
Intangible amortization expense			65				65				—
Professional services expense			386				293				93
Deposit insurance and examination expense			417				445				(28	)
Advertising expense			304				324				(20	)
Postage and communications expense			128				140				(12	)
Supplies expense			105				96				9
Loss on disposal of equipment			—				5				(5	)
Loss on sale of real estate owned			61				570				(509	)
Real estate owned expenses			60				16				44
Other operating expenses			319				193				126
Total non-interest expense			6,681				7,127				(446	)
Income before income tax expense			2,438				2,537				(99	)
Income tax expense			109				909				(800	)
Net income			2,329				1,628				701
Less:
Dividend on preferred shares			232				232				—
Accretion dividend on preferred shares			28				28				—
Net income (loss) available (attributable)to common stockholders		$	2,069				1,368				701
Net income (loss) available (attributable) to common stockholders
Per share, basic		$	0.28			$	0.18				0.10
Per share, diluted		$	0.28			$	0.18				0.10
Dividend per share		$	0.02			$	0.02
Weighted average shares outstanding - basic			7,484,420				7,481,448
Weighted average shares outstanding - diluted			7,484,420				7,481,448

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 12

January 30, 2012

 

HOPFED BANCORP, INC.

Selected Financial Data

The table below adjusts tax-free investment income for the three month periods ended December 31, 2011, and December 31, 2010, by $249,000 and $298,000, respectively; for a tax equivalent rate using a cost of funds rate of 2.00% for the three month period ended December 31, 2011, and 2.50% for the three month period ended December 31, 2010. The table adjusts tax-free loan income by $8,000 for three month period ended December 31, 2011 and $10,000 for the three month period ended December 31, 2010, for a tax equivalent rate using the same cost of funds rate:

 

		Average Balance 12/31/2011				Income & Expense 12/31/2011				Average Rates 12/31/2011				Average Balance 12/31/2010				Income & Expense 12/31/2010				Average Rates 12/31/2010
		(Dollars in Thousands, Except Percentages)
Loans, net		$	560,987			$	8,247				5.88	%		$	613,376			$	9,019				5.88	%
Investments AFS taxable			314,703			$	2,463				3.13	%			311,026				2,801				3.60	%
Investment AFS tax free			63,809				779				4.89	%			67,343				946				5.62	%
Overnight funds			10,747				6				0.22	%			—				—				—
Total interest earning assets			950,246				11,495				4.84	%			991,745				12,766				5.15	%
Other assets			97,842												106,882
Total assets		$	1,048,088											$	1,098,627
Retail time deposits		$	463,586				2,421				2.09	%		$	476,490				3,087				2.59	%
Brokered deposits			63,738				300				1.88	%			75,733				395				2.09	%
Now accounts			133,464				287				0.86	%			140,795				463				1.32	%
MMDA and savings accounts			71,250				21				0.12	%			66,001				34				0.21	%
FHLB borrowings			67,747				610				3.60	%			89,120				792				3.55	%
Repurchase agreements			40,550				241				2.38	%			44,787				212				1.89	%
Subordinated debentures			10,310				191				7.41	%			10,310				182				7.06	%
Total interest bearing liabilities			850,645				4,071				1.91	%			903,236				5,165				2.29	%
Non-interest bearing deposits			75,169												70,288
Other liabilities			6,153												5,497
Stockholders’ equity			116,121												119,606
Total liabilities and stockholders’ equity		$	1,048,088											$	1,098,627
Net interest income						$	7,424											$	7,601
Interest rate spread											2.93	%											2.86	%
Net yield on interest earning assets							3.13	%											3.07	%

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 13

January 30, 2012

 

HOPFED BANCORP, INC.

Selected Financial Data

The table below adjusts tax-free investment income for the twelve month periods ended December 31, 2011, and December 31, 2010, by $1,065,000 and $1,130,000, respectively; for a tax equivalent rate using a cost of funds rate of 2.00% for the twelve month period ended December 31, 2011, and 2.50% for the twelve month period ended December 31, 2010. The table adjusts tax-free loan income by $34,000 for twelve month period ended December 31, 2011, and $52,000 for the twelve month period ended December 31, 2010, for a tax equivalent rate using the same cost of funds rate:

 

		Average Balance 12/31/2011				Income & Expense 12/31/2011				Average Rates 12/31/2011				Average Balance 12/31/2010				Income & Expense 12/31/2010				Average Rates 12/31/2010
Loans		$	575,133			$	33,527				5.83	%		$	629,633			$	38,089				6.05	%
Investments AFS taxable			308,022				10,465				3.40	%			289,556				11,923				4.12	%
Investment AFS tax free			66,104				3,328				5.03	%			63,179				3,587				5.68	%
Federal funds			9,075				19				0.21	%			—				—				—
Total interest earning assets			958,334				47,339				4.94	%			982,368				53,599				5.46	%
Other assets			108,997												101,119
Total assets		$	1,067,331											$	1,083,487
Retail time deposits		$	469,052				10,908				2.33	%		$	488,531				13,629				2.79	%
Brokered deposits			78,996				1,642				2.08	%			82,226				1,959				2.38	%
Now accounts			136,828				1,543				1.13	%			128,096				1,666				1.30	%
MMDA and savings accounts			68,347				114				0.17	%			63,565				130				0.20	%
FHLB borrowings			71,352				2,557				3.58	%			92,830				3,292				3.55	%
Repurchase agreements			39,894				909				2.28	%			42,442				831				1.96	%
Subordinated debentures			10,310				742				7.20	%			10,310				739				7.17	%
Total interest bearing liabilities			874,779				18,415				2.11	%			908,000				22,246				2.45	%
Non-interest bearing deposits			72,961												68,901
Other non-interest bearing liabilities			4,562												4,651
Stockholders’ equity			115,029												101,935
Total liabilities and stockholders’ equity		$	1,067,331											$	1,083,487
Net change in interest earning assets and interest bearing liabilities						$	28,924											$	31,353
Interest rate spread											2.83	%											3.01	%
Net yield on interest earning assets							3.02	%											3.19	%

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

 

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