Exhibit 99.1

NEWS

 

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

HOPFED BANCORP, INC. REPORTS SECOND QUARTER RESULTS

HOPKINSVILLE, Ky. (July 26, 2013) – HopFed Bancorp, Inc. (NASDAQ: HFBC) (the “Company”), the holding company for Heritage Bank USA, Inc. (the “Bank”), today reported results for the three and six month periods ended June 30, 2013. For the three month period ended June 30, 2013, the Company’s net income available to common shareholders was $1.2 million, or $0.16 per share, basic and diluted, compared to net income available to common shareholders of $903,000, or $0.12 per share basic and diluted, for the three month period ended June 30, 2012. For the six month period ended June 30, 2013, 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 income attributable to common shareholders of $1.4 million, or $0.18 per share basic and diluted, for the six month period ended June 30, 2012.

Commenting on the second quarter results, John E. Peck, President and Chief Executive Officer, said, “Operating results improved modestly during the three month period ended June 30, 2013, as compared to the three months period ended March 31, 2013, due to an increase in gains on the sales of securities, an increase in the amount of service charge income and an increase in the amount of financial services commissions. The Company continues to carefully control our non-interest expenses as our linked quarter operating expenses declined by $150,000 and total operating expenses for the six month period ended June 30, 2013, were $140,000 lower as compared to the six month period ended June 30, 2012.”

Mr. Peck continued, “The Company’s non-accrual loans increased during the three month period ended June 30, 2013, as we placed a $6.3 million non-residential real estate relationship in non-accrual status and charged off approximately $1.3 million of that relationship in June 2013. The increase in non-accrual loans reduced interest income on loans by approximately $140,000. The increase in non-accruals did not result in an increase in the necessary funding level of the allowance for loan loss account or result in a material increase in the Company’s level of adversely classified assets.”

Mr. Peck concluded, “The Company continues to improve its deposit mix by reducing the Company’s reliance on time deposit funding. At June 30, 2013, the Company’s linked quarter non-interest expense declined by $120,000. In the three month period ending September 30, 2013, the Company has more than $60.0 million in time deposits re-pricing at a weighted average cost of 1.71%. The potential to lower our interest on deposit expense is likely to be offset by lower yields on loans and investments.”

Financial Highlights

 

•

At June 30, 2013, the Company’s tangible book value was $13.05 per share and tangible common equity ratio was 10.31%. The reduction in book value at June 30, 2013, as compared to March 31, 2013, was the result of a lower level of unrealized gains on securities. The Bank’s Tier 1 Capital and Total Risk Based Capital Ratios at June 30, 2013, were 11.04% and 19.14%, respectively. The Company’s Tier 1 Capital and Total Risk Based Capital Ratios were 11.18% and 19.31%, respectively.

 

•

At June 30, 2013, the Company’s allowance for loan loss totaled $9.4 million, or 1.75% of total loans and 79.6% of non-accrual loans. In the six month period ended June 30, 2013, the Company’s net charge offs totaled $2.0 million, or an annualized rate of 0.77% of average loans.

 

•

For the three month period ended June 30, 2013, the Company’s net interest margin was 2.90%, as compared to 2.87% for the three month period ended June 30, 2012, and 2.99% for the three month period ended March 31, 2013. During the three month period ended June 30, 2013, net interest income was reduced by approximately $140,000 due to increases in non-accrual loans.

 

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HFBC Reports Second Quarter Results

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July 26, 2013

 

Asset Quality

At June 30, 2013, the Company’s level of non-accrual loans totaled $11.8 million, as compared to $7.7 million at December 31, 2012, and $7.1 million at March 31, 2013. The increase in non-accrual loans is largely the result of one non-residential real estate relationship of approximately $5.0 million being classified as non-accrual in June 2013.

A summary of non-accrual loans at June 30, 2013, and December 31, 2012, is as follows:

 

		June 30, 2013				December 31, 2012
		(Dollars in Thousands)
One-to-four family mortgages			1,131				2,243
Home equity line of credit			21				66
Junior lien			37				4
Multi-family			—				38
Construction			—				—
Land			2,256				2,768
Non-residential real estate			7,054				1,134
Farmland			781				648
Consumer loans			354				145
Commercial loans			177				617
Total non-accrual loans			11,811				7,663

A summary of the level of classified loans at June 30, 2013, is as follows:

 

																		Total				Specific Reserve for Impairment				Reserve for Performing Loans
June 30, 2013		Pass				Special Mention				Impaired Loans
										Substandard				Doubful
		(Dollars in Thousands)
One-to-four family mortgages			151,332				1,169				5,348				31				157,880				794				1,583
Home equity line of credit			35,017				—				965				—				35,982				146				243
Junior liens			3,361				45				506				—				3,912				—				63
Multi-family			27,870				—				2,095				—				29,965				—				233
Construction			8,818				176				—				—				8,994				—				67
Land			22,186				7,441				9,519				—				39,146				1,305				415
Non-residential real estate			126,709				932				13,750				—				141,391				1,145				1,892
Farmland			45,086				352				4,862				—				50,300				—				462
Consumer loans			12,418				—				438				—				12,856				—				392
Commercial loans			53,890				435				2,930				—				57,255				177				482
Total			486,687				10,550				40,413				31				537,681				3,567				5,832

 

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HFBC Reports Second Quarter Results

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July 26, 2013

 

At June 30, 2013, non-accrual loans plus other real estate owned totaled $13.4 million, or 1.42% of total assets, as compared to $9.2 million, or 0.95% of total assets, at December 31, 2012. A summary of the activity in other real estate owned for the six month period ended June 30, 2013, is as follows:

 

						Activity During 2013
		Balance 12/31/2012				Foreclosures				Proceeds				Reduction in Values				Gain (Loss) on Sale				Balance 6/30/2013
						(Dollars in Thousands)
One-to-four family mortgages		$	258				548				(349	)			—				(10	)			447
Multi-family			—				—				—				—				—				—
Construction			130				—				(110	)			(110	)			90				—
Land			1,112				—				—				—				—				1,112
Non-residential real estate			44				40				—				(11	)			—				73
Consumer assets			4				5				(3	)			(4	)			(2	)			—
Total		$	1,548				593				(462	)			(125	)			78				1,632

At June 30, 2013, the Company’s level of loans classified as substandard and doubtful were $40.4 million and $31,000, respectively, as compared to $66.6 million and none, respectively, at December 31, 2012. At June 30, 2013, the Company’s classified loan to risk based capital ratio was 35.5%. The Company’s specific reserve for impaired loans was $3.6 million at June 30, 2013, and $3.8 million at December 31, 2012, respectively.

At June 30, 2013, the Company’s level of performing Troubled Debt Restructurings (“TDRs”) was $469,000, as compared to $11.0 million at December 31, 2012. A summary of the activity in loans classified as TDRs for the six month period ended June 30, 2013, is as follows:

 

																		Removed
														Removed due to				from
		Balance at				New				Loss or				Payment or				(Taken to)				Balance at
		12/31/12				TDR				Foreclosure				Performance				Non-accrual				6/30/13
										(Dollars in Thousands)
One-to-four family mortgages		$	1,888				242				—				(1,863	)			—				267
Home equity line of credit			—				—				—				—				—				—
Junior Lien			96				—				—				(10	)			(86	)			—
Multi-family			234				—				—				(234	)			—				—
Construction			4,112				—				—				—				(4,112	)			—
Land			656				2,649				(393	)			(656	)			—				2,256
Non-residential real estate			3,173				266				(864	)			(3,344	)			4,112				3,343
Farmland			865				—				—				(865	)			—				—
Consumer loans			5				—				—				(1	)			—				4
Commercial loans			9				222				—				(1	)			—				230
Total performing TDR		$	11,038				3,379				(1,257	)			(6,974	)			(86	)			6,100

 

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HFBC Reports Second Quarter Results

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July 26, 2013

 

A summary of TDRs and non-performing TDRs at June 30, 2013, and December 31, 2012, is stated below:

 

		June 30, 2013				December 31, 2012
		(Dollars in Thousands)
One-to-four family mortgages		$	267				1,888
Home equity line of credit			—				—
Junior lien			—				196
Multi-family			—				234
Construction			—				4,112
Land			2,256				3,424
Non-residential real estate			3,343				3,173
Farmland			—				909
Consumer loans			4				5
Commercial loans			230				128
Total TDR			6,100				14,069
Less:
TDR in non-accrual status
One-to-four family mortgages			—				—
Home equity line of credit			—				—
Junior lien			—				(100	)
Multi-family			—				—
Construction			—				—
Land			(2,256	)			(2,768	)
Non-residential real estate			(3,248	)			(44	)
Consumer loans			—				—
Commercial loans			(127	)			(119	)
Total performing TDR		$	469			$	11,038

Net Interest Income

For the three month period ended June 30, 2013, the Company’s net interest income was $6.2 million, compared to $6.7 million for the three month period ended June 30, 2012, and $6.4 million for the three month period ended March 31, 2013.

For the three month period ended June 30, 2013, the Company’s net interest margin was 2.90%, as compared to 2.87% for the three month period ended June 30, 2012, and 2.99% for the three month period ended March 31, 2013.

For the six month period ended June 30, 2013, the Company’s net interest income was $12.6 million, as compared to $13.5 million for the six month period ended June 30, 2012. For the six month period ended June 30, 2013, the Company’s net interest margin was 2.94%, as compared to 2.93% for the six month period ended June 30, 2012.

The declines in the Company’s net interest income and net interest margin are largely the result of declining average loan balances and investment securities. Furthermore, the yields on all classes of earning assets continue to decline as both short term and long term rates are near record low levels. The Company’s results for the three and six month periods ended June 30, 2013, were negatively impacted by a substantial increase in non-accrual loans.

Non-interest Income

Non-interest income for the three month period ended June 30, 2013, was $2.8 million, as compared to $2.6 million for the three month period ended June 30, 2012, and $2.5 million for the three month period ended March 31, 2013.Non-interest income for the six month periods ended June 30, 2013, and June 30, 2012, was $5.3 million and $4.6 million, respectively. The increase in non-interest income for the three month period ended June 30, 2013, as compared to the three month periods ended June 30, 2012, and March 31, 2013, was primarily the result of an increase in gains on the sale of securities.

The Company recognized net gains on the sale of securities of $789,000, $630,000, and $627,000 for the three month periods ended June 30, 2013, June 30, 2012, and March 31, 2013, respectively. The Company recognized net gains on the sales of securities of $1.4 million and $674,000, for the six month periods ended June 30, 2013, and June 30, 2012, respectively.

 

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HFBC Reports Second Quarter Results

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July 26, 2013

 

For the three and six month periods ended June 30, 2013, the Company’s revenue related to the origination of fixed rate mortgage loans was $212,000 and $412,000, respectively, as compared to $263,000 and $466,000 for the same periods in 2012. The Company earned $347,000 and $644,000 in commission from our financial services production during the three and six month periods ended June 30, 2013, as compared to $271,000 and $498,000, respectively for the same periods in 2012.

Non-interest Expense

Non-interest expenses were $7.1 million, $7.4 million and $7.3 million for the three month periods ended June 30, 2013, June 30, 2012, and March 31, 2013, respectively. For the six months ended June 30, 2013, and June 30, 2012, non-interest expenses were $14.4 million and $14.5 million, respectively.

On a linked quarter basis, professional services expenses increased by $156,000. The increase in professional services expense was largely the result of the Company’s contested proxy vote. On a linked quarter basis, the Company has experienced a modest decline in most operating expense line items. For the three month period ended June 30, 2013, the Company’s salaries and benefits expense declined by $134,000 as compared to the previous quarter, and total operating expenses declined by $150,000, each as compared to the previous quarter.

Balance Sheet

At June 30, 2013, consolidated assets were $949.4 million, a decrease of $18.3 million as compared to December 31, 2012. The decline in assets is largely the result of a $29.0 million reduction in time deposits as the Company has chosen to allow selected high cost deposit funding to leave the Company. The Company has funded the outflow of deposits by the sale of securities.

For the six month period ended June 30, 2013, gross loans increased by approximately $2.1 million, to $537.7 million as compared to $535.6 million at December 31, 2012. In the Company’s market area, desirable lending opportunities remain limited at this time, making meaningful loan growth challenging.

The Company

Prior to June 5, 2013, HopFed Bancorp, Inc. was a federally chartered savings and loan holding company with Heritage Bank as its wholly owned thrift subsidiary. On June 5, 2013, Heritage Bank’s legal name was changed to Heritage Bank USA, Inc. and its charter was converted to a Kentucky state chartered commercial bank with the Kentucky Department of Financial Institutions and the Federal Deposit Insurance Corporation as its regulators. Also on June 5, 2013, HopFed Bancorp, Inc. became a non-member federally chartered commercial bank holding company regulated by the Federal Reserve Board. HopFed Bancorp, Inc. is the holding company for Heritage Bank USA, Inc. headquartered in Hopkinsville, Kentucky. The Bank has eighteen offices in western Kentucky and middle Tennessee in addition to its subsidiary, Fall & Fall Insurance of Fulton, Kentucky. The Company has two additional operating divisions including Heritage Wealth Management 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 that are originated for the secondary market in all communities in the Company’s general market area. The Bank offers a broad line of banking and financial products and services with the personalized focus of a community banking organization. More information about HopFed Bancorp and Heritage Bank USA, Inc. may be found on its website www.bankwithheritage.com.

 

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HFBC Reports Second Quarter Results

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July 26, 2013

 

Forward-Looking Information

Information contained in this press release, other than historical information, may be considered forward-looking in nature and is subject to various risk, uncertainties, and assumptions. Should one or more of these risks or uncertainties materialize, or should the underlying assumptions prove incorrect, actual results may vary materially from those anticipated, estimated or expected. Among the key factors that may have a direct bearing on the Company’s operating results, performance or financial condition are competition and the demand for the Company’s products and services, and other factors as set forth in filings with the Securities and Exchange Commission. The Company undertakes no duty to update any forward-looking statement to conform the statement to actual results or changes in the Company’s expectations. Certain tabular presentations may not reconcile because of rounding.

 

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HFBC Reports Second Quarter Results

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July 26, 2013

 

HOPFED BANCORP, INC.

Balance Sheet

(Dollars in thousands)

 

		June 30, 2013				December 31, 2012
		(unaudited)
Assets
Cash and due from banks		$	20,070				31,563
Interest-earning deposits			9,633				5,613
Cash and cash equivalents			29,703				37,176
Federal Home Loan Bank stock, at cost			4,428				4,428
Securities available for sale			338,936				356,345
Loans receivable, net of allowance for loan losses of $9,399 at June 30, 2013, and $10,648 at December 31, 2012			528,282				524,985
Accrued interest receivable			4,919				5,398
Real estate and other assets owned			1,632				1,548
Bank owned life insurance			9,486				9,323
Premises and equipment, net			21,853				22,557
Deferred tax assets			3,383				—
Intangible asset			195				292
Other assets			6,578				5,637
Total assets		$	949,395				967,689
Liabilities and Stockholders’ Equity
Liabilities:
Deposits:
Non-interest-bearing accounts		$	94,426				94,083
Interest-bearing accounts
Interest bearing checking accounts			154,444				147,047
Savings and money market accounts			85,735				81,643
Other time deposits			408,059				437,092
Total deposits			742,664				759,865
Advances from Federal Home Loan Bank			45,768				43,741
Repurchase agreements			47,072				43,508
Subordinated debentures			10,310				10,310
Advances from borrowers for taxes and insurance			697				396
Dividends payable			177				180
Deferred tax liability			—				568
Accrued expenses and other liabilities			4,634				4,122
Total liabilities			851,322				862,690

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

 

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HFBC Reports Second Quarter Results

Page 8

July 26, 2013

 

HOPFED BANCORP, INC.

Balance Sheet

(Dollars in thousands)

 

		June 30, 2013				December 31, 2012
		(unaudited)
Stockholders’ equity
Preferred stock, par value $0.01 per share; authorized - 500,000 shares; 18,400 shares issued and no shares outstanding at June 30, 2013, and December 31, 2012.			—				—
Common stock, par value $.01 per share; authorized 15,000,000 shares; 7,905,955 issued and 7,503,039 outstanding at June 30, 2013, and 7,905,728 issued and 7,502,812 outstanding at December 31, 2012			79				79
Common stock warrant			—				556
Additional paid-in-capital			76,634				76,288
Retained earnings			43,679				41,829
Treasury stock- preferred (at cost, 18,400 shares at June 30, 2013, and December 31, 2012)			(18,400	)			(18,400	)
Treasury stock- common (at cost, 402,916 shares at June 30, 2013, and December 31, 2012)			(5,076	)			(5,076	)
Accumulated other comprehensive income, net of taxes			1,157				9,723
Total stockholders’ equity			98,073				104,999
Total liabilities and stockholders’ equity		$	949,395				967,689

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

 

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HFBC Reports Second Quarter Results

Page 9

July 26, 2013

 

HOPFED BANCORP, INC.

Selected Financial Data

(Dollars in thousands)

 

		For the Three Month Periods								For the Six Month Periods
		Ended June 30,								Ended June 30,
		2013				2012				2013				2012
Interest and dividend income:
Loans receivable			6,676				7,413				13,558				15,214
Investment in securities, taxable			1,764				2,434				3,596				4,809
Investment in securities, non-taxable			547				547				1,132				1,122
Interest-earning deposits			7				6				13				14
Total interest and dividend income			8,994				10,400				18,299				21,159
Interest expense:
Deposits			1,936				2,755				3,982				5,639
Advances from Federal Home Loan Bank			446				565				890				1,138
Repurchase agreements			230				237				472				485
Subordinated debentures			182				181				364				368
Total interest expense			2,794				3,738				5,708				7,630
Net interest income			6,200				6,662				12,591				13,529
Provision for loan losses			406				400				782				1,269
Net interest income after provision for loan losses			5,794				6,262				11,809				12,260
Non-interest income:
Service charges			937				973				1,790				1,911
Merchant card income			259				212				482				408
Mortgage origination revenue			212				263				412				466
Gain on sale of securities			789				630				1,416				674
Income from bank owned life insurance			87				79				162				158
Financial services commission			347				271				644				498
Other operating income			197				211				405				441
Total non-interest income			2,828				2,639				5,311				4,556

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

 

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HFBC Reports Second Quarter Results

Page 10

July 26, 2013

 

HOPFED BANCORP, INC.

Selected Financial Data

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

 

		For the Three Month Periods								For the Six Month Periods
		Ended June 30,								Ended June 30,
		2013				2012				2013				2012
Non-interest expenses:
Salaries and benefits			3,714				3,561				7,562				7,068
Occupancy expense			882				884				1,727				1,739
Data processing expense			646				627				1,296				1,252
State bank tax			147				162				289				324
Intangible amortization expense			48				65				97				130
Professional services expense			549				498				942				886
Deposit insurance and examination expense			179				434				411				853
Advertising expense			308				324				641				628
Postage and communications expense			139				157				278				298
Supplies expense			93				105				229				216
Loss on disposal of equipment			—				2				—				8
Loss on sale of real estate owned			12				72				47				219
Real estate owned expenses			32				25				108				71
Other operating expenses			375				523				771				846
Total non-interest expense			7,124				7,439				14,398				14,538
Income before income tax expense			1,498				1,462				2,722				2,278
Income tax expense			332				300				572				389
Net income			1,166				1,162				2,150				1,889
Less:
Dividend on preferred shares			—				231				—				460
Accretion dividend on preferred shares			—				28				—				56
Net income available to common shareholders		$	1,166			$	903			$	2,150			$	1,373
Net income available to common shareholders
Per share, basic		$	0.16			$	0.12			$	0.29			$	0.18
Per share, diluted		$	0.16			$	0.12			$	0.29			$	0.18
Dividend per share		$	0.02			$	0.02			$	0.04			$	0.04
Weighted average shares outstanding - basic			7,488,906				7,485,283				7,488,788				7,484,498
Weighted average shares outstanding - diluted			7,488,906				7,485,283				7,488,788				7,484,498

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

 

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HFBC Reports Second Quarter Results

Page 11

July 26, 2013

 

HOPFED BANCORP, INC.

Selected Financial Data

(Dollars in thousands)

 

		For the Three Months Ended
		6/30/2013				3/31/2013				Change from Prior Quarter
Interest and dividend income:
Loans receivable			6,676				6,882				(206	)
Investment in securities, taxable			1,764				1,832				(68	)
Investment in securities, non-taxable			547				585				(38	)
Interest-earning deposits			7				6				1
Total interest and dividend income			8,994				9,305				(311	)
Interest expense:
Deposits			1,936				2,046				(110	)
Advances from Federal Home Loan Bank			446				444				2
Repurchase agreements			230				242				(12	)
Subordinated debentures			182				182				—
Total interest expense			2,794				2,914				(120	)
Net interest income			6,200				6,391				(191	)
Provision for loan losses			406				376				30
Net interest income after provision for loan losses			5,794				6,015				(221	)
Non-interest income:
Service charges			937				853				84
Merchant card income			259				223				36
Mortgage orgination revenue			212				200				12
Gain on sale of securities			789				627				162
Income from bank owned life insurance			87				75				12
Financial services commission			347				297				50
Other operating income			197				208				(11	)
Total non-interest income			2,828				2,483				345

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

 

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HFBC Reports Second Quarter Results

Page 12

July 26, 2013

 

HOPFED BANCORP, INC.

Selected Financial Data

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

 

		Months Ended
		6/30/2013				3/31/2013				Change from Prior Quarter
Non-interest expenses:
Salaries and benefits		$	3,714				3,848				(134	)
Occupancy expense			882				845				37
Data processing expense			646				650				(4	)
State bank tax			147				142				5
Intangible amortization expense			48				49				(1	)
Professional services expense			549				393				156
Deposit insurance and examination expense			179				232				(53	)
Advertising expense			308				333				(25	)
Postage and communications expense			139				139				—
Supplies expense			93				136				(43	)
Loss on sale of real estate owned			12				35				(23	)
Real estate owned expenses			32				76				(44	)
Other operating expenses			375				396				(21	)
Total non-interest expense			7,124				7,274				(150	)
Income before income tax expense			1,498				1,224				274
Income tax expense			332				240				92
Net income			1,166				984				182
Net income available to common stockholders
Per share, basic		$	0.16			$	0.13				0.03
Per share, diluted		$	0.16			$	0.13				0.03
Dividend per share		$	0.02			$	0.02
Weighted average shares outstanding - basic			7,488,906				7,488,445
Weighted average shares outstanding - diluted			7,488,906				7,488,445

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

 

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HFBC Reports Second Quarter Results

Page 13

July 26, 2013

 

HOPFED BANCORP, INC.

Selected Financial Data

The table below adjusts tax-free investment income for the six month periods ended June 30, 2013, and June 30, 2012, by $545,000 and $533,000, respectively; for a tax equivalent rate using a cost of funds rate of 1.50% for the six month period ended June 30, 2013, and 1.80% for the six month period ended June 30, 2012. The table adjusts tax-free loan income by $4,000 for six month period ended June 30, 2012, and $5,000 for the six month period ended June 30, 2012, for a tax equivalent rate using the same cost of funds rate:

 

		Average Balance 6/30/2013				Income and Expense 6/30/2013				Average Rates 6/30/2013				Average Balance 6/30/2012				Income and Expense 6/30/2012				Average Rates 6/30/2012
		(Table Amounts in Thousands, Except Percentages)
Loans		$	525,448				13,562				5.16	%		$	547,815				15,219				5.56	%
Investments AFS taxable			283,867				3,596				2.53	%		$	329,809				4,809				2.92	%
Investment AFS tax free			73,499				1,677				4.56	%		$	66,852				1,655				4.95	%
Interest earning deposits			9,672				13				0.27	%		$	14,762				14				0.19	%
Total interest earning assets			892,486				18,848				4.22	%			959,238				21,697				4.52	%
Other assets			79,201												89,115
Total assets		$	971,687											$	1,048,353
Retail time deposits			378,326				2,877				1.52	%			451,622				4,459				1.97	%
Brokered deposits			46,390				362				1.56	%			54,265				510				1.88	%
Saving & MMDA			83,367				70				0.17	%			73,453				66				0.18	%
Now accounts			165,564				673				0.81	%			147,336				604				0.82	%
FHLB borrowings			43,586				890				4.08	%			62,537				1,138				3.64	%
Repurchase agreements			40,595				472				2.33	%			41,915				485				2.31	%
Subordinated debentures			10,310				364				7.06	%			10,310				368				7.14	%
Total interest bearing liabilities			768,138				5,708				1.49	%			841,438				7,630				1.81	%
Non-interest bearing deposits			93,857												82,153
Other liabilities			4,944												5,212
Stockholders’ equity			104,748												119,550
Total liabilities and stockholders’ equity		$	971,687											$	1,048,353
Net interest income							13,140												14,067
Net interest spread											2.73	%											2.71	%
Net interest margin							2.94	%											2.93	%

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

 

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HFBC Reports Second Quarter Results

Page 14

July 26, 2013

 

HOPFED BANCORP, INC.

Selected Financial Data

The table below adjusts tax-free investment income for the three month periods ended June 30, 2013, and June 30, 2012, by $263,000 and $260,000, respectively; for a tax equivalent rate using a cost of funds rate of 1.50% for the three month period ended June 30, 2013, and 1.80% for the three month period ended June 30, 2012. The table adjusts tax-free loan income by $2,000 for three month period ended June 30, 2013 and $3,000 for the three month period ended June 30, 2012, for a tax equivalent rate using the same cost of funds rate:

 

		Average Balance 6/30/2013				Income and Expense 6/30/2013				Average Rates 6/30/2013				Average Balance 6/30/2012				Income and Expense 6/30/2012				Average Rates 6/30/2012
		(Table Amounts in Thousands, Except Percentages)
Loans		$	528,160				6,678				5.06	%		$	544,056				7,416				5.45	%
Investments AFS taxable			283,262				1,764				2.49	%			339,125				2,434				2.87	%
Investment AFS tax free			71,333				810				4.54	%			68,035				807				4.74	%
Interest earning deposits			9,465				7				0.30	%			13,632				6				0.18	%
Total interest earning assets			892,220				9,259				4.15	%			964,848				10,663				4.42	%
Other assets			73,757												79,426
Total assets		$	965,977											$	1,044,274
Retail time deposits			371,908				1,378				1.48	%			445,784				2,186				1.96	%
Brokered deposits			45,688				178				1.56	%			51,185				226				1.77	%
Savings & MMDA			86,018				37				0.17	%			74,472				33				0.18	%
Now accounts			167,038				343				0.82	%			150,813				310				0.82	%
FHLB borrowings			43,612				446				4.09	%			62,105				565				3.64	%
Repurchase agreements			38,185				230				2.41	%			39,788				237				2.38	%
Subordinated debentures			10,310				182				7.06	%			10,310				181				7.02	%
Total interest bearing liabilities			762,759				2,794				1.47	%			834,457				3,738				1.79	%
Non-interest bearing deposits			93,616												83,803
Other liabilities			4,891												4,158
Stockholders’ equity			104,711												121,856
Total liabilities and stockholders’ equity		$	965,977											$	1,044,274
Net interest income							6,465												6,925
Interest rate spread											2.68	%											2.63	%
Net interest margin							2.90	%											2.87	%

 

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