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 31, 2012) – HopFed Bancorp, Inc. (NASDAQ: HFBC) (the “Company”), the holding company for Heritage Bank (the “Bank”), today reported results for the three and nine month periods ended September 30, 2012. For the three month period ended September 30, 2012, the Company’s net income available to common shareholders was $819,000, or $0.11 per share, basic and diluted, compared to net income available to common shareholders of $1.4 million, or $0.18 per share basic and diluted, for the three month period ended September 30, 2011. For the nine month period ended September 30, 2012, the Company’s net income available to common shareholders was $2.2 million, or $0.29 per share, basic and diluted, compared to a net loss attributable to common shareholders of $180,000, or ($0.02) per share basic and diluted, for the nine month period ended September 30, 2011.

Commenting on the third quarter results, John E. Peck, President and Chief Executive Officer, said, “The Company has reduced the amount of Federal Home Loan Bank borrowings by approximately $20.0 million during the quarter. The reduction in FHLB borrowings, which include prepayment fees of approximately $480,000, reduces our balances outstanding related to wholesale funding. The prepayment penalties were offset by gains on the sales of securities, many of which were experiencing increasing high levels of cash flow and lower net yields due to national mortgage refinancing activity. We remain focused on reducing our cost of funds with approximately $96.8 million in time deposits maturing in the fourth quarter of 2012 with a weighted average cost of approximately 2.00%.”

Mr. Peck concluded, “The Company experienced an $11.8 million reduction in classified loans during the quarter due. In addition, we have contracts to sell $2.7 million in non-performing loans scheduled to close during the fourth quarter of 2012 at or near their current book value. The Company continues to market other non-performing assets in an attempt to further reduce our level of classified assets. The Company continues to find success working with borrowers in an effort to address credit quality issues.”

Financial Highlights

 

•

The Company and Bank’s capital ratios continue to strengthen. At September 30, 2012, the Company’s tangible book value was $13.88 and our tangible common equity ratio is 10.65%. The Bank’s tier 1 leverage and total risk based capital ratios at September 30, 2012, are 10.91% and 19.7240700%, respectively. The Company’s tier 1 leverage and total risk based capital ratios are 12.33% and 22.34%, respectively.

 

•

At September 30, 2012, the Company’s and Bank’s net classified asset to risk based capital ratios were 68.78% and 60.37%, respectively. At June 30, 2012, these ratios were 86.50% for the Bank and 76.1% for the Company.

 

•

At September 30, 2012, the Company’s allowance for loan loss totaled $10.5 million, or 1.90% of total loans and 87.23% of non-accrual loans. In the nine month period ended September 30, 2012, the Company’s net charge offs totaled $2.5 million, or an annualized rate of 0.61% of average loans.

 

•

For the three month period ended September 30, 2012, the Company’s net interest margin was 2.67%, as compared to 3.00% for the three month period ended September 30, 2011, and 2.87% for the three month period ended June 30, 2012. For the three month period ended September 30, 2012, the Company’s net interest margin was reduced 0.21% by our decision to liquidate FHLB borrowings and incur $480,000 in prepayment penalties.

 

-MORE-

---

HFBC Reports Third Quarter Results

Page 2

October 31, 2012

 

Asset Quality

At September 30, 2012, the Company’s level of non-accrual loans totaled $12.6 million, as compared to $6.1 million at December 31, 2011. At September 30, 2012, non-accrual loans total 2.20% of total loans. The Company has contracted to sell certain non-accrual assets classified as substandard at their current book balance. The sale includes $2.0 million in commercial real estate and $760,000 of land development. We anticipate the sale closing in mid-November 2012. We continue to market one additional commercial real estate property, with a book value of $900,000, through a nationally recognized broker dealer. All three loans are purchased participation loans outside of our current market area.

A summary of non-accrual loans at September 30, 2012, and December 31, 2011, is as follows:

 

		9/30/2012				12/31/2011
		(Dollars in Thousands)
One-to-four family first mortgages			2,795				2,074
Home equity lines of credit			24				134
Junior liens			—				101
Multi-family			190				—
Construction			—				—
Land			4,039				1,330
Non-residential real estate			3,271				2,231
Farmland			49				—
Consumer loans			59				9
Commercial loans			2,160				254
Total non-accrual loans			12,587				6,133
Non-accrual loans to total loans			2.29	%			1.08	%

A summary of the level of classified loans at September 30, 2012, is as follows:

 

September 30, 2012						Special				Impaired Loans												Specific Reserve for				Reserve for Performing
		Pass				Mention				Substandard				Doubful				Total				Impairment				Loans
										(Dollars in Thousands)
One-to-four family mortgages			156,358				1,940				7,025				116				165,439				509				1,840
Home equity line of credit			35,509				1,202				1,251				—				37,962				14				320
Junior liens			4,728				73				581				—				5,382				104				54
Multi-family			19,297				6,192				6,754				—				32,243				356				357
Construction			11,606				—				4,088				—				15,694				294				113
Land			17,688				9,069				21,340				—				48,097				888				1,066
Non-residential real estate			142,396				3,809				28,366				—				174,571				1,228				2,445
Consumer loans			13,645				12				504				—				14,161				102				160
Commercial loans			49,866				837				8,523				—				59,226				86				554
Total			451,093				23,134				78,432				116				552,775				3,581				6,909

 

-MORE-

---

HFBC Reports Third Quarter Results

Page 3

October 31, 2012

 

At September 30, 2012, non-accrual loans plus other real estate owned totaled $13.3 million, or 1.33% of total assets, as compared to $8.4 million, or 0.81% of total assets, at December 31, 2011. The Company’s level of other real estate owned has declined from $2.3 million at December 31, 2011, to $681,000 at September 30, 2012.

A summary of the activity in other real estate owned for the nine month period ended September 30, 2012, is as follows:

 

						Activity During 2012
		Balance 12/31/2011				Foreclosures				Sales				Reduction in Values				Gain (Loss) on Sales				Balance 9/30/2012
						(Dollars in Thousands)
One-to-four family mortgages			480				658				(855	)			(107	)			(29	)			147
Multi-family			905				—				(875	)			—				(30	)			—
Construction			465				—				(235	)			—				(14	)			216
Land			248				383				(269	)			(68	)			(19	)			275
Non-residential real estate			160				63				(160	)			(20	)			—				43
Consumer assets			9				—				(9	)			—				—				—
Total			2,267				1,104				(2,403	)			(195	)			(92	)			681

At September 30, 2012, the Company’s level of loans classified as substandard and doubtful were $78.4 million and $116,000, respectively, as compared to $47.5 million and $1.7 million, respectively, at December 31, 2011. The Company’s specific reserve for impaired loans was $3.6 million at September 30, 2012, and $4.1 million at December 31, 2011, respectively.

At September 30, 2012, the Company’s level of performing Troubled Debt Restructurings (“TDRs”) was $9.3 million, as compared to $6.2 million at December 31, 2011. A summary of the activity in loans classified as performing TDRs for the nine month period ended September 30, 2012, is as follows:

 

		Balance at December 31, 2011				New TDR				Loss or Foreclosure				Removed due to performance				Balance at September 30, 2012
										(Dollars in Thousands)
One-to-four family mortgages			1,111				146				—				705				552
Home equity line of credit			—				244				—				40				204
Junior Lien			757				—				—				757				—
Multi-family			—				239				—				3				236
Construction			—				3,145				—				—				3,145
Land			941				4,850				233				757				4,801
Farmland			—				956				—				956				—
Non-residential real estate			3,366				—				453				2,913				—
Consumer loans			32				75				2				97				8
Commercial loans			20				931				10				570				371
Total performing TDR			6,227				10,586				698				6,798				9,317

 

-MORE-

---

HFBC Reports Third Quarter Results

Page 4

October 31, 2012

 

A summary of TDRs and non-performing TDRs at September 30, 2012, and December 31, 2011, is stated below:

 

		September 30, 2012				December 31, 2011
		(Dollars in Thousands)
One-to-four family mortgages		$	2,001				2,521
Home equity line of credit			204				—
Junior lien			—				857
Multi-family			236				—
Construction			3,145				—
Land			4,801				941
Non-residential real estate			2,490				3,367
Farmland			956				—
Consumer loans			8				33
Commercial loans			371				125
Total TDR		$	14,212				7,844
Less:
TDR in non-accrual status
One-to-four family mortgages			(1,449	)			(1,410	)
Home equity line of credit			—				—
Junior lien			—				(100	)
Multi-family			—				—
Construction			—				—
Land			—				—
Non-residential real estate			(2,490	)			(1	)
Farmland			(956	)			—
Consumer loans			—				(1	)
Commercial loans			—				(105	)
Total performing TDR		$	9,317			$	6,227

Net Interest Income

For the three month period ended September 30, 2012, the Company’s net interest income was $5.9 million, compared to $6.9 million for the three month period ended September 30, 2011, and $6.7 million for the three month period ended June 30, 2012. For the three and nine month periods ended September 30, 2012, net interest income was reduced by $480,000 as a result of FHLB prepayment penalties.

For the nine month period ended September 30, 2012, the Company’s net interest income was $19.4 million, as compared to $20.7 million for the nine month period ended September 30, 2011. For the nine month period ended September 30, 2012, the Company’s net interest margin was 2.84%, as compared to 3.01% for the nine month period ended September 30, 2011. For the nine month period ended September 30, 2012, FHLB prepayment penalties reduced the Company’s net interest margin 0.07%.

The decline in the Company’s net interest income and net interest margin for the three and nine month periods ended September 30, 2012, is largely the result of declining average loan balances and an increasingly high level of cash flow from our investment portfolio, resulting in an increase in premium amortizations and the reinvestment of funds at less attractive yields. Given the poor climate for reinvesting excess funds, management anticipates that our current pricing strategy may result in further reductions in time deposits. Management will fund the reduction in assets by selling investment securities.

 

-MORE-

---

HFBC Reports Third Quarter Results

Page 5

October 31, 2012

 

Non-interest Income

Non-interest income for the three month period ended September 30, 2012, was $2.9 million, as compared to $3.3 million for the three month periods ended September 30, 2011, and $2.6 million for the three month period ended June 30, 2012, respectively. Non-interest income for the nine month periods ended September 30, 2012, and September 30, 2011, was $7.5 million and $7.8 million, respectively.

The decrease in non-interest income for the three month period ended September 30, 2012, as compared to the three month period ended September 30, 2011, was primarily the result of a lower level of gains on the sale of securities. The Company recognized net gains on the sale of securities of $944,000 and $1,247,000 for the three month periods ended September 30, 2012, and September 30, 2011, respectively.

For the nine month period ended September 30, 2012, the Company’s non-interest income declined $311,000 as compared to the nine month period ended September 30, 2011. For the nine month period ended September 30, 2012, gains on the sale of securities were $1.6 million, as compared to $2.3 million for the nine month period ended September 30, 2011. For the nine month periods ended September 30, 2012, and September 30, 2011, revenue related to the origination of fixed rate mortgage loans was $755,000 and $425,000, respectively.

Non-interest Expense

Non-interest expenses were $7.1 million for the three month periods ended September 30, 2012, and September 30, 2011, respectively as compared to $7.4 million for the three month period ended June 30, 2012. For the nine months ended September 30, 2012, and September 30, 2011, non-interest expenses were $21.6 million and $22.0 million, respectively. On a linked quarter basis, non-interest expenses declined $378,000 due to slightly lower levels of compensation and professional services expenses. The increase in other operating expenses is the result of expenses related to the Company’s annual meeting and reporting requirements as well as increases in training expenses. No other operating expense item increased by more than $100,000 from June 30, 2012, to September 30, 2012.

The decrease in non-interest expense during the nine month period ended September 30, 2012, as compared to September 30, 2011, is largely the result of a reduced level of losses on the sale of other real estate owned. Losses on the sale of other real estate owned were $1.6 million during the nine month period ended September 30, 2011, and $287,000 for the same period in 2012. For the nine month period ended September 30, 2012, non-interest expenses experiencing notable changes as compared to the nine month period ended September 31, 2011, were:

 

		Change in expense				Percentage change from prior period
Salaries and benefits			528,000				5.48	%
Professional services			334,000				33.87	%
Deposit insurance and examination			(332,000	)			-20.70	%
Other operating expenses			711,000				123.65	%
Loss on sale of other assets owned			(1,355,000	)			-82.52	%

The Company’s salaries and benefits expense, other operating expenses and professional services expenses have increased due to increased regulatory and compliance requirements. The reduction in losses on sale of other real estate owned is the result of lower balances in that asset class. The reduction in the Company’s deposit insurance and examination expense is largely the result of a reduced level of brokered and time deposits.

 

-MORE-

---

HFBC Reports Third Quarter Results

Page 6

October 31, 2012

 

Balance Sheet

Total assets were $996.7 million at September 30, 2012, a decrease of $44.1 million as compared to December 31, 2011. The decline in the size of the balance sheet is largely the result of a $45.5 million reduction in time deposit balances and $19.1 million decline in FHLB borrowings. The reduction in time deposits included an $8.2 million decline in brokered deposits.

The Company funded the decline in the balance sheet largely by reducing the size of its investment portfolio by $34.9 million.

For the nine month period ended September 30, 2012, gross loans declined by approximately $17.6 million, to $550.0 million as compared to $567.6 million at December 31, 2011. For the three month period ended September 30, 2012, gross loans decreased $884,000. The Company is experiencing modest loan demand in its highly competitive market.

The Company recently completed its first examination under the Office of the Comptroller of the Currency (“OCC”). As a result of the examination, the OCC has terminated the Bank’s Memorandum of Understanding agreement. The termination of the memorandum may result in lower operating cost and increased business opportunities in the future. The Company remains fully compliant with a Memorandum of Understanding with the Federal Reserve Bank that limits our ability to borrow money and make capital distributions. The termination of the Company’s Memorandum will provide management the opportunity to re-evaluate its capital requirements, including the possibility of making a request to the United States Treasury Department to repurchase all outstanding preferred shares sold under the Treasury’s Capital Purchase Plan in 2008. In repurchasing all outstanding preferred shares, the Company would save $920,000 in preferred dividends, or $0.12 per share, basic and diluted.

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 subsidiary, Fall & Fall Insurance of Fulton, Kentucky. The Bank has two additional operating divisions including Heritage Solutions of Murray, Kentucky, Hopkinsville, Kentucky, Kingston Springs, Tennessee 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 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 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.

 

-MORE-

---

HFBC Reports Third Quarter Results

Page 7

October 31, 2012

 

HOPFED BANCORP, INC.

Balance Sheet

(Dollars in thousands)

 

		September 30, 2012				December 31, 2011
		(Unaudited )
Assets
Cash and due from banks		$	40,700				44,389
Interest-earning deposits in Federal Home Loan Bank			17,003				4,371
Cash and cash equivalents			57,703				48,760
Federal Home Loan Bank stock, at cost			4,428				4,428
Securities available for sale			348,877				383,782
Loans held for sale			2,763				—
Loans receivable, net of allowance for loan losses of $10,490 at September 30, 2012, and $11,262 at December 31, 2011			539,503				556,360
Accrued interest receivable			5,333				6,183
Real estate and other assets owned			681				2,267
Bank owned life insurance			9,373				9,135
Premises and equipment, net			22,750				23,431
Deferred tax assets			—				1,132
Intangible asset			341				519
Other assets			4,981				4,823
Total assets		$	996,733				1,040,820
Liabilities and Stockholders’ Equity
Liabilities:
Deposits:
Non-interest-bearing accounts		$	88,451				79,550
Interest-bearing accounts
NOW accounts			131,952				130,114
Savings and money market accounts			74,314				70,443
Other time deposits			474,539				519,988
Total deposits			769,256				800,095
Advances from Federal Home Loan Bank			44,222				63,319
Repurchase agreements			42,799				43,080
Subordinated debentures			10,310				10,310
Advances from borrowers for taxes and insurance			639				153
Deferred tax liability			628				—
Dividends payable			179				176
Accrued expenses and other liabilities			5,439				5,204
Total liabilities			873,472				922,337

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

 

-MORE-

---

HFBC Reports Third Quarter Results

Page 8

October 31, 2012

 

HOPFED BANCORP, INC.

Balance Sheet

(Dollars in thousands)

 

		September 30, 2012				December 31, 2011
		(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 September 30, 2012, and December 31, 2011			—				—
Common stock, par value $.01 per share; authorized 15,000,000 shares; 7,905,728 issued and 7,502,812 outstanding at September 30, 2012, and 7,895,336 issued and 7,492,420 outstanding at December 31, 2011			79				79
Common stock warrants (253,666 issued and outstanding)			556				556
Additional paid-in-capital			76,127				75,967
Retained earnings-substantially restricted			41,330				39,591
Treasury stock (at cost, 402,916 shares at September 30, 2012, and December 31, 2011)			(5,076	)			(5,076	)
Accumulated other comprehensive income, net of taxes			10,245				7,366
Total stockholders’ equity			123,261				118,483
Total liabilities and stockholders’ equity		$	996,733				1,040,820

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

 

-MORE-

---

HFBC Reports Third Quarter Results

Page 9

October 31, 2012

 

HOPFED BANCORP, INC.

Selected Financial Data

(Dollars in thousands)

 

		For the Three Month Periods Ended September 30,								For the Nine Month  Periods Ended September 30,
		2012				2011				2012				2011
Interest and dividend income:
Loans receivable			7,403				8,332				22,617				25,254
Investment in securities, taxable			2,014				2,581				6,823				8,003
Nontaxable securities available for sale			573				532				1,695				1,733
Interest-earning deposits			6				5				20				13
Total interest and dividend income			9,996				11,450				31,155				35,003
Interest expense:
Deposits			2,640				3,543				8,279				11,179
Advances from Federal Home Loan Bank			1,017				625				2,155				1,946
Repurchase agreements			236				238				721				668
Subordinated debentures			185				186				553				551
Total interest expense			4,078				4,592				11,708				14,344
Net interest income			5,918				6,858				19,447				20,659
Provision for loan losses			506				475				1,775				5,445
Net interest income after provision for loan losses			5,412				6,383				17,672				15,214
Non-interest income:
Service charges			963				1,020				2,874				2,828
Merchant card income			212				194				620				571
Mortgage origination revenue			289				295				755				425
Gain on sale of securities			944				1,247				1,618				2,297
Other than temporarily impairment on available for sale securities			—				—				—				(14	)
Income from bank owned life insurance			80				84				238				249
Financial services commission			280				272				778				691
Other operating income			129				169				570				717
Total non-interest income			2,897				3,281				7,453				7,764

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 31, 2012

 

HOPFED BANCORP, INC.

Selected Financial Data

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

 

		For the Three Month Periods Ended September 30,								For the Nine Month Periods Ended September 30,
		2012				2011				2012				2011
Non-interest expenses:
Salaries and benefits			3,447				3,309				10,515				9,987
Occupancy expense			875				867				2,614				2,452
Data processing expense			610				653				1,863				2,056
State deposit tax			161				151				485				476
Intangible amortization expense			48				65				178				227
Professional services expense			435				293				1,320				986
Deposit insurance and examination expense			419				445				1,272				1,604
Advertising expense			324				324				952				931
Postage and communications expense			146				140				444				421
Supplies expense			64				96				280				294
Loss on disposal of equipment			5				5				13				145
Loss on sale of real estate owned			68				570				287				1,642
Real estate owned expenses			19				16				90				216
Other operating expenses			440				193				1,286				575
Total non-interest expense			7,061				7,127				21,599				22,012
Income before income tax expense			1,248				2,537				3,526				966
Income tax expense			173				909				562				375
Net income			1,075				1,628				2,964				591
Less:
Dividend on preferred shares			229				232				689				688
Accretion dividend on preferred shares			27				28				83				83
Net income available to common shareholders		$	819			$	1,368			$	2,192			($	180	)
Net income available to common shareholders
Per share, basic		$	0.11			$	0.18			$	0.29			($	0.02	)
Per share, diluted		$	0.11			$	0.18			$	0.29			($	0.02	)
Dividend per share		$	0.02			$	0.02			$	0.06			$	0.18
Weighted average shares outstanding - basic			7,487,283				7,481,448				7,485,571				7,456,750
Weighted average shares outstanding - diluted			7,487,283				7,481,448				7,485,571				7,456,750

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, 2012

 

HOPFED BANCORP, INC.

Selected Financial Data

(Dollars in thousands)

 

		For the Three Months Ended
		9/30/2012				6/30/2012				Change from Prior Quarter
Interest and dividend income:
Loans receivable			7,403				7,413				(10	)
Investment in securities, taxable			2,014				2,434				(420	)
Nontaxable securities available for sale			573				547				26
Interest-earning deposits			6				6				—
Total interest and dividend income			9,996				10,400				(404	)
Interest expense:
Deposits			2,640				2,755				(115	)
Advances from Federal Home Loan Bank			1,017				565				452
Repurchase agreements			236				237				(1	)
Subordinated debentures			185				181				4
Total interest expense			4,078				3,738				340
Net interest income			5,918				6,662				(744	)
Provision for loan losses			506				400				106
Net interest income after provision for loan losses			5,412				6,262				(850	)
Non-interest income:
Service charges			963				973				(10	)
Merchant card income			212				212				0
Mortgage orgination revenue			289				263				26
Gain on sale of securities			944				630				314
Income from bank owned life insurance			80				79				1
Financial services commission			280				271				9
Other operating income			129				211				(82	)
Total non-interest income			2,897				2,639				258

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, 2012

 

HOPFED BANCORP, INC.

Selected Financial Data

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

 

		For the Three Months Ended
		9/30/2012				6/30/2012				Change from Prior Quarter
Non-interest expenses:
Salaries and benefits		$	3,447				3,561				(114	)
Occupancy expense			875				884				(9	)
Data processing expense			610				627				(17	)
State deposit tax			161				162				(1	)
Intangible amortization expense			48				65				(17	)
Professional services expense			435				498				(63	)
Deposit insurance and examination expense			419				434				(15	)
Advertising expense			324				324				—
Postage and communications expense			146				157				(11	)
Supplies expense			64				105				(41	)
Loss on disposal of equipment			5				2				3
Loss on sale of real estate owned			68				72				(4	)
Real estate owned expenses			19				25				(6	)
Other operating expenses			440				523				(83	)
Total non-interest expense			7,061				7,439				(378	)
Income before income tax expense			1,248				1,462				(214	)
Income tax expense			173				300				(127	)
Net income			1,075				1,162				(87	)
Less:
Dividend on preferred shares			229				231				(2	)
Accretion dividend on preferred shares			27				28				(1	)
Net income (loss) available (attributable) to common stockholders		$	819				903				(84	)
Net income (loss) available (attributable) to common stockholders
Per share, basic		$	0.11			$	0.12				(0.01	)
Per share, diluted		$	0.11			$	0.12				(0.01	)
Dividend per share		$	0.02			$	0.02
Weighted average shares outstanding - basic			7,487,283				7,485,283
Weighted average shares outstanding - diluted			7,487,283				7,485,283

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, 2012

 

HOPFED BANCORP, INC.

Selected Financial Data

The table below adjusts tax-free investment income for the nine month periods ended September 30, 2012, and September 30, 2011, by $798,000 and $810,000, respectively; for a tax equivalent rate using a cost of funds rate of 2.00% for the nine month period ended September 30, 2012, and 2.20% for the nine month period ended September 30, 2011. The table adjusts tax-free loan income by $7,000 for the nine month period ended September 30, 2012, and $27,000 for the nine month period ended September 30, 2011, for a tax equivalent rate using the same cost of funds rate:

 

		Average Balance 9/30/2012				Income and Expense 9/30/2012				Average Rates 9/30/2012				Average Balance 9/30/2011				Income and Expense 9/30/2011				Average Rates 9/30/2011
		(Dollars in Thousands, Except Percentages)
Loans		$	545,464			$	22,624				5.53	%		$	579,888			$	25,281				5.81	%
Investments AFS taxable			322,091				6,823				2.82	%			305,778				8,016				3.50	%
Investment AFS tax free			67,714				2,493				4.91	%			66,877				2,543				5.07	%
Fed Funds			14,918				20				0.18	%			—				—				—
Total interest earning assets			950,187				31,960				4.48	%			952,543				35,840				5.02	%
Other assets			87,878												121,080
Total assets		$	1,038,065											$	1,073,623
Retail time deposits		$	444,553				6,538				1.96	%		$	470,894				8,608				2.44	%
Brokered deposits			52,558				754				1.91	%			84,139				1,222				1.94	%
Now accounts			145,015				888				0.82	%			137,961				1,256				1.21	%
MMDA and savings accounts			73,983				99				0.18	%			67,369				93				0.18	%
FHLB borrowings			61,336				2,155				4.68	%			72,557				1,946				3.58	%
Repurchase agreements			40,968				721				2.35	%			39,676				668				2.24	%
Subordinated debentures			10,310				553				7.15	%			10,310				551				7.13	%
Total interest bearing liabilities			828,723				11,708				1.88	%			882,906				14,344				2.17	%
Non-interest bearing deposits			82,800												72,216
Other liabilities			5,717												4,905
Shareholders equity			120,825												113,596
Total liabilities and shareholder equity		$	1,038,065											$	1,073,623
Net interest income						$	20,252											$	21,496
Interest rate spread											2.60	%											2.85	%
Net interest margin							2.84	%											3.01	%

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, 2012

 

HOPFED BANCORP, INC.

Selected Financial Data

The table below adjusts tax-free investment income for the three month periods ended September 30, 2012, and September 30, 2011, by $273,000 and $250,000, respectively; for a tax equivalent rate using a cost of funds rate of 2.00% for the three month period ended September 30, 2012, and 2.00% for the three month period ended September 30, 2011. The table adjusts tax-free loan income by $2,000 for the three month period ended September 30, 2012 and $7,000 for the three month period ended September 30, 2011, for a tax equivalent rate using the same cost of funds rate:

 

		Average Balance 9/30/2012				Income & Expense 9/30/2012				Average Rates 9/30/2012				Average Balance 9/30/2011				Income & Expense 9/30/2011				Average Rates 9/30/2011
		(Dollars in Thousands, Except Percentages)
Loans		$	540,811			$	7,405				5.48	%		$	568,600			$	8,339				5.87	%
Investments AFS taxable			308,578				2,014				2.61	%			316,104				2,586				3.27	%
Investment AFS tax free			69,420				846				4.87	%			64,712				782				4.83	%
Fed Funds			10,555				6				—				—				—				—
Total interest earning assets			929,364				10,271				4.42	%			949,416				11,707				4.93	%
Other assets			87,537												118,896
Total assets		$	1,016,901											$	1,068,312
Retail time deposits		$	430,568				2,064				1.92	%		$	475,287				2,773				2.33	%
Brokered deposits			49,181				258				2.10	%			76,557				374				1.95	%
Now accounts			140,424				285				0.81	%			133,022				358				1.08	%
MMDA and savings accounts			75,031				33				0.18	%			68,913				38				0.22	%
FHLB borrowings			58,962				1,017				6.90	%			70,575				625				3.54	%
Repurchase agreements			39,093				236				2.41	%			39,323				238				2.42	%
Subordinated debentures			10,310				185				7.18	%			10,310				186				7.22	%
Total interest bearing liabilities			803,569				4,078				2.03	%			873,987				4,592				2.10	%
Non-interest bearing deposits			84,079												74,077
Other liabilities			6,284												4,983
Stockholders’ equity			122,969												115,265
Total liabilities and stockholders’ equity		$	1,016,901											$	1,068,312
Net interest income						$	6,193											$	7,115
Interest rate spread											2.39	%											2.83	%
Net interest margin							2.67	%											3.00	%

 

-END-