Attached files
| file | filename |
|---|---|
| 8-K - FORM 8-K - HOPFED BANCORP INC | d329368d8k.htm |
Exhibit 99.1
NEWS
CONTACT: John E. Peck
President and CEO
(270) 885-1171
HOPFED BANCORP, INC. REPORTS FOURTH QUARTER RESULTS
HOPKINSVILLE, Ky. (January 31, 2017) – HopFed Bancorp, Inc. (NASDAQ: HFBC) (the “Company”), the holding company for Heritage Bank USA, Inc. (the “Bank”), today reported results for the three and twelve month periods ended December 31, 2016. For the three month period ended December 31, 2016, the Company’s net income was $1.1 million, or $0.18 per share, basic and diluted. For the three month period ended December 31, 2015, the Company’s net income was $656,000, or $0.10 per share, basic and diluted. For the twelve month period ended December 31, 2016, the Company’s net income was $2.9 million, or $0.47 per share, basic and diluted. For the twelve month period ended December 31, 2015, the Company’s net income was $2.4 million, or $0.38 per share, basic and diluted.
Commenting on the Company’s results for the three and twelve month periods ended December 31, 2016, John E. Peck, President and Chief Executive Officer, said, “The Company experienced loan growth of $25.2 million and $18.3 million for the three month periods ended December 31, 2016, and September 30, 2016, respectively. In the three month period ended December 31, 2016, the Company’s loan growth largely occurred in our legacy markets. Our improving profitability levels are a direct result of our recent lending success. Entering 2017, our loan pipeline remains robust and we are optimistic about our future.”
Mr. Peck continued, “In the three month period ended December 31, 2016, the Company’s interest bearing checking accounts grew by $27.0 million, or 14.8%. The seasonal increase in transaction account balances is largely the result of our growth in the number of agri-business and municipal clients. In the first quarter of 2017, the Company will change the product lineup of our consumer transaction accounts in an attempt to maximize the profitability of our deposit relationships. This may result in increased volatility in the total outstanding balances of these accounts.”
Financial Highlights
| ○ | At December 31, 2016, the Company’s tangible book value was $13.90 per share and tangible common equity ratio was 9.69%. The Company’s tangible book value and common equity ratio computations do not include an estimated 498,346 unallocated shares of common stock held by the Company’s ESOP. |
| ○ | The Bank’s estimated Tier 1 Leverage Ratio and Total Risk Based Capital Ratio at December 31, 2016, were 10.68% and 16.04%, respectively. The Company’s consolidated Tier 1 Leverage Ratio and Total Risk Based Capital Ratio at December 31, 2016, were 10.79% and 16.19%, respectively. |
| ○ | The Company purchased 6,001 shares of its common stock in the quarter at a weighted average price of $11.34 per share. For the twelve month period ended December 31, 2016, the Company purchased 160,248 shares of its common stock at a weighted average price of $11.71 per share. At December 31, 2016, the Company owns 1,246,136 shares of treasury stock at a weighted average cost of $12.32 per share. |
HFBC Reports Fourth Quarter Results
Page 2
January 31, 2017
Asset Quality
At December 31, 2016, the Company’s level of non-accrual loans totaled $9.1 million, as compared to $7.4 million at December 31, 2015. A summary of non-accrual loans at December 31, 2016, and December 31, 2015, is as follows:
| December 31, 2016 |
December 31, 2015 |
|||||||
| (Dollars in Thousands) | ||||||||
| One-to-four family mortgages |
$ | 270 | $ | 2,234 | ||||
| Home equity line of credit |
402 | 48 | ||||||
| Multi-family |
208 | 1,968 | ||||||
| Land |
7,675 | 1,553 | ||||||
| Non-residential real estate |
— | 247 | ||||||
| Farmland |
— | 166 | ||||||
| Consumer loans |
3 | 8 | ||||||
| Commercial loans |
516 | 1,198 | ||||||
|
|
|
|
|
|||||
| Total non-accrual loans |
$ | 9,074 | $ | 7,422 | ||||
|
|
|
|
|
|||||
At December 31, 2016, non-accrual loans plus other real estate and other assets owned totaled $11.5 million, or 1.29% of total assets, compared to $12.4 million, or 1.42% of assets, at September 30, 2016, and $9.2 million, or 1.01% of assets, at December 31, 2015. Net charge offs for the three month period ended December 31, 2016, were $764,000, an annualized charge off rate of 0.52% of average loans. Net charge offs for the twelve month period ended December 31, 2016, were $830,000, or 0.15% of average loans. The increase in loan charge offs for the three month period ended December 31, 2016, was the result of a foreclosure on multi-family properties that were previously in non-accrual status.
A summary of the activity in other real estate owned for the twelve month period ended December 31, 2016, is as follows:
| Activity During 2016 | ||||||||||||||||||||||||
| Balance 12/31/2015 |
Foreclosures | Proceeds | Reduction in Values |
Gain (Loss) on Sale |
Balance 12/31/2016 |
|||||||||||||||||||
| (Dollars in Thousands) | ||||||||||||||||||||||||
| One-to-four family mortgages |
$ | 55 | 135 | (43 | ) | — | (12 | ) | $ | 135 | ||||||||||||||
| HELOC |
— | 68 | (34 | ) | (8 | ) | 2 | 28 | ||||||||||||||||
| Multi-family |
— | 1,915 | (153 | ) | — | 13 | 1,775 | |||||||||||||||||
| Land |
943 | 130 | (1,108 | ) | — | 35 | — | |||||||||||||||||
| Consumer |
— | 15 | (15 | ) | — | — | — | |||||||||||||||||
| Non-residential real estate |
738 | — | (270 | ) | — | (9 | ) | 459 | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
| Total |
1,736 | 2,263 | (1,623 | ) | (8 | ) | 29 | 2,397 | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
HFBC Reports Fourth Quarter Results
Page 3
January 31, 2017
Asset Quality (continued)
For the twelve month period ended December 31, 2016, the Company’s balance of loans classified as Troubled Debt Restructurings (“TDRs”) increased from $5.5 million to $6.5 million. The increase is the result of one lending relationship in which the Bank revised the customer’s payment terms to provide for interest only payments while the customer attempts to sell the collateral. A summary of the activity in loans classified as TDRs for the twelve month period ended December 31, 2016, is as follows:
| Balance at 12/31/15 |
New TDR |
Loss or Foreclosure |
Loan Amortization |
Removed from (Taken to) Non-accrual |
Balance 12/31/16 |
|||||||||||||||||||
| (Dollars in Thousands) | ||||||||||||||||||||||||
| Multi-family |
$ | — | 816 | — | (1 | ) | — | $ | 815 | |||||||||||||||
| Non-residential real estate |
5,536 | 228 | — | (118 | ) | — | 5,646 | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
| Total performing TDR |
5,536 | 1,044 | — | (119 | ) | — | 6,461 | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
At December 31, 2016, the Company’s level of loans classified as substandard was $29.3 million as compared to $28.1 million at December 31, 2015. At December 31, 2016, the Company’s classified loan to risk-based capital ratio was 29.2%. The Company’s specific reserve for impaired loans was $1.1 million at December 31, 2016, and $630,000 at December 31, 2015. A summary of loans by type, risk classification and related valuation allowance, gross of deferred loan fees of $439,000, at December 31, 2016, is as follows:
| Special Mention |
Impaired Loans | Specific Allowance for Impairment |
Allowance for Performing Loans |
|||||||||||||||||||||||||
| December 31, 2016 |
Pass | Substandard | Doubtful | Total | ||||||||||||||||||||||||
| (Dollars in Thousands) | ||||||||||||||||||||||||||||
| One-to-four family mortgages |
$ | 145,965 | 744 | 1,253 | — | $ | 147,962 | — | 805 | |||||||||||||||||||
| Home equity line of credit |
35,109 | 25 | 550 | — | 35,684 | — | 246 | |||||||||||||||||||||
| Junior liens |
1,411 | 30 | 11 | — | 1,452 | — | 7 | |||||||||||||||||||||
| Multi-family |
31,280 | — | 3,004 | — | 34,284 | — | 419 | |||||||||||||||||||||
| Construction |
39,255 | — | — | — | 39,255 | — | 295 | |||||||||||||||||||||
| Land |
15,581 | 35 | 8,224 | — | 23,840 | 1,036 | 960 | |||||||||||||||||||||
| Non-residential real estate |
172,834 | 3 | 10,542 | — | 183,379 | — | 845 | |||||||||||||||||||||
| Farmland |
44,832 | 674 | 2,290 | — | 47,796 | — | 735 | |||||||||||||||||||||
| Consumer loans |
7,943 | — | 335 | — | 8,278 | 84 | 118 | |||||||||||||||||||||
| Commercial loans |
85,174 | 603 | 3,130 | — | 88,907 | 28 | 534 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
| Total |
579,384 | 2,114 | 29,339 | — | 610,837 | 1,148 | 4,964 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
HFBC Reports Fourth Quarter Results
Page 4
January 31, 2017
Net Interest Income
For the three month period ended December 31, 2016, the Company’s net interest income was $6.6 million, compared to $6.3 million for the three-month period ended December 31, 2015, and $6.7 million for the three-month period ended September 30, 2016. For the three month period ended December 31, 2016, the Company’s net interest margin was 3.35%, as compared to 3.21% for the three month period ended December 31, 2015, and 3.41% for the three month period ended September 30, 2016. The decline in linked quarter net interest income and net interest margin was largely the result of a $6.3 million decline in the average balance of available for sale taxable securities and a $3.4 million decline in the average balance of available for sale tax free investments.
For the twelve month period ended December 31, 2016, the Company’s net interest income was $26.4 million, as compared to $26.6 million for the twelve month period ended December 31, 2015. For the twelve month period ended December 31, 2016, the Company’s interest expense was $5.3 million as compared to $6.6 million for the twelve month period ended December 31, 2015. For the twelve month period ended December 31, 2016, the Company’s net interest margin was 3.35%, as compared to 3.36% for the twelve month period ended December 31, 2015.
The decline in interest income for the twelve month period ended December 31, 2016, compared to December 31, 2015, is largely the result of a $1.6 million decline in income on taxable securities available for sale. A significant portion of this decline is the result of the collection of $830,000 of non-accrual investment interest in March 2015. For the twelve-month period ended December 31, 2016, the average balance and yield of taxable securities available for sale was $190.8 million at 2.41%, compared to $203.2 million and 3.03% for the twelve month period ended December 31, 2015. For the year ended December 31, 2015, the collection of non-accrual investment interest increased the Company’s yield on taxable securities by 0.41% and our net interest margin by 0.11%.
Non-Interest Income
Non-interest income for the three month periods ended December 31, 2016, September 30, 2016, and December 31, 2015, was $2.0 million, $1.9 million and $1.9 million, respectively. For the twelve month period ended December 31, 2016, non-interest income was $7.9 million as compared to $7.6 million for the twelve month period ended December 31, 2015.
For the three and twelve month periods ended December 31, 2016, service charge income was $694,000 and $2.8 million, respectively, compared to $741,000 and $2.9 million for the three month period and twelve month period ended December 31, 2015, and $719,000 for the three-month period ended September 30, 2016. The decline in service charge income represents a multi-year trend of declining income despite significant growth in both the numbers and balances of transaction accounts and is the result of regulatory changes. This trend was a significant factor in the Company’s decision to revise our transaction deposit account lineup.
For the three month period ended December 31, 2016, mortgage origination revenue was $367,000, compared to $415,000 for the three-month period ended September 30, 2016, and $310,000 for the three month period ended December 31, 2015. The decline in mortgage origination income on a linked quarter basis is largely the result of a 75 basis point increase in the ten-year treasury that occurred in November 2016, reducing the amount of mortgage applications received from buyers.
For the three month period ended December 31, 2016, gains on the sale of securities were $190,000, as compared to $139,000 for the three-month period ended December 31, 2015, and $79,000 for the three month period ended September 30, 2016. In the three month period ended December 31, 2016, the Company used security sales to fund loan growth.
HFBC Reports Fourth Quarter Results
Page 5
January 31, 2017
Non-Interest Expense
On a linked quarter basis, the Company’s non-interest expenses declined by $142,000, largely the result of the $156,000 reduction in real estate owned expenses and a $51,000 gain realized on the sale of real estate owned properties. For the three month periods ended December 31, 2016, and December 31, 2015, non-interest expenses were $7.2 million, respectively, as compared to $7.4 million for the three month period ended September 30, 2016.
For the twelve-month period ended December 31, 2016, the Company’s non-interest expenses were $29.9 million, representing a decline of $589,000 as compared to the twelve-month period ended December 31, 2015. For the twelve-month period ended, December 31, 2016, the Company experienced the following significant changes in operating expenses as compared to the twelve-month period ended December 31, 2015:
| Balance Change |
Percentage Change |
|||||||
| Salary and benefits |
$ | (410,000 | ) | -2.6 | % | |||
| Occupancy |
96,000 | 3.1 | % | |||||
| Data processing |
115,000 | 4.1 | % | |||||
| Professional services |
(102,000 | ) | -6.8 | % | ||||
| Loss on real estate owned |
(737,000 | ) | -102.9 | % | ||||
| Other operating expenses |
375,000 | 19.2 | % | |||||
Balance Sheet
At December 31, 2016, consolidated assets were $891.5 million, a decline of $11.7 million as compared to December 31, 2015. At December 31, 2016, the Company experienced the following changes in our balance sheet:
| Balance Change |
Percentage Change |
|||||||
| Cash and cash equivalents |
$ | (28,949 | ) | -52.9 | % | |||
| Securities |
(27,697 | ) | -11.7 | % | ||||
| Gross loans |
48,349 | 8.6 | % | |||||
| Time deposits |
(21,586 | ) | -6.9 | % | ||||
| Total deposits |
(6,524 | ) | -0.9 | % | ||||
| FHLB borrowings |
(4,000 | ) | -26.7 | % | ||||
| Repurchase agreements |
1,885 | 4.1 | % | |||||
For the twelve month period ended December 31, 2016, a significant portion of the Company’s loan growth occurred in two markets. In Christian County, Kentucky, the Company’s loan growth was $31.4 million, or 30.6%. At December 31, 2016, the Company’s Nashville, Tennessee loan production offices had outstanding loan balances of $42.5 million, representing loan growth of $26.3 million during the twelve month period ended December 31, 2016.
HFBC Reports Fourth Quarter Results
Page 6
January 31, 2017
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 changed to Heritage Bank USA, Inc., and its charter converted to a Kentucky state chartered commercial bank with the Kentucky Department of Financial Institutions and the Federal Deposit Insurance Corporation as its regulators. Also on June 5, 2013, HopFed Bancorp, Inc. became a non-member federally chartered commercial bank holding company regulated by the Federal Reserve Board. HopFed Bancorp, Inc. is the holding company for Heritage Bank USA, Inc. headquartered in Hopkinsville, Kentucky. The Bank has eighteen offices in western Kentucky and middle Tennessee and loan production offices in Brentwood, Tennessee, and Nashville, Tennessee. The Company offers a broad line of financial services through Heritage Bank Wealth Management of Murray, Kentucky, Hopkinsville, Kentucky, Kingston Springs, Tennessee and Clarksville, Tennessee. Heritage Bank Mortgage Services of Clarksville, Tennessee, offers long term fixed rate single 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 at our 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. 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.
HFBC Reports Fourth Quarter Results
Page 7
January 31, 2017
HOPFED BANCORP, INC.
Consolidated Condensed Balance Sheets
(Dollars in thousands)
| December 31, 2016 |
December 31, 2015 |
|||||||
| (unaudited) | ||||||||
| Assets | ||||||||
| Cash and due from banks |
$ | 21,779 | 46,926 | |||||
| Interest-earning deposits |
3,970 | 7,772 | ||||||
|
|
|
|
|
|||||
| Cash and cash equivalents |
25,749 | 54,698 | ||||||
| Federal Home Loan Bank stock, at cost |
4,428 | 4,428 | ||||||
| Securities available for sale |
209,480 | 237,177 | ||||||
| Loans held for sale |
1,094 | 2,792 | ||||||
| Loans receivable, net of allowance for loan losses of $6,112 at December 31, 2016, and $5,700 at December 31, 2015 |
604,286 | 556,349 | ||||||
| Accrued interest receivable |
3,799 | 4,139 | ||||||
| Real estate and other assets owned |
2,397 | 1,736 | ||||||
| Bank owned life insurance |
10,662 | 10,319 | ||||||
| Premises and equipment, net |
23,461 | 24,034 | ||||||
| Deferred tax assets |
3,052 | 2,642 | ||||||
| Other assets |
3,078 | 4,840 | ||||||
|
|
|
|
|
|||||
| Total assets |
$ | 891,486 | 903,154 | |||||
|
|
|
|
|
|||||
| Liabilities and Stockholders’ Equity | ||||||||
| Liabilities: |
||||||||
| Deposits: |
||||||||
| Non-interest-bearing accounts |
$ | 131,145 | 125,070 | |||||
| Interest-bearing accounts: |
||||||||
| Interest-bearing checking accounts |
209,347 | 203,779 | ||||||
| Savings and money market accounts |
99,312 | 95,893 | ||||||
| Other time deposits |
293,078 | 314,664 | ||||||
|
|
|
|
|
|||||
| Total deposits |
732,882 | 739,406 | ||||||
| Advances from Federal Home Loan Bank |
11,000 | 15,000 | ||||||
| Repurchase agreements |
47,655 | 45,770 | ||||||
| Subordinated debentures |
10,310 | 10,310 | ||||||
| Advances from borrowers for taxes and insurance |
766 | 614 | ||||||
| Dividends payable |
288 | 287 | ||||||
| Accrued expenses and other liabilities |
2,157 | 4,137 | ||||||
|
|
|
|
|
|||||
| Total liabilities |
805,058 | 815,524 | ||||||
|
|
|
|
|
|||||
This information is preliminary and based on Company data available at the time of the presentation.
HFBC Reports Fourth Quarter Results
Page 8
January 31, 2017
HOPFED BANCORP, INC.
Consolidated Condensed Balance Sheets, Continued
(Dollars in thousands)
| December 31, 2016 |
December 31, 2015 |
|||||||
| (unaudited) | ||||||||
| Stockholders’ equity: |
||||||||
| Preferred stock, par value $0.01 per share; authorized 500,000 shares; no shares issued and outstanding at December 31, 2016, and December 31, 2015 |
— | — | ||||||
| Common stock, par value $.01 per share; authorized 15,000,000 shares; 7,963,378 issued and 6,717,242 outstanding at December 31, 2016, and 7,951,699 issued and 6,865,811 outstanding at December 31, 2015 |
80 | 79 | ||||||
| Additional paid-in-capital |
58,660 | 58,604 | ||||||
| Retained earnings |
49,035 | 47,124 | ||||||
| Treasury stock- common (at cost, 1,246,136 shares at December 31, 2016, and 1,085,888 shares at December 31, 2015) |
(15,347 | ) | (13,471 | ) | ||||
| Unallocated ESOP shares (at cost, 498,346 at December 31, 2016, and 546,413 shares at December 31, 2015) |
(6,548 | ) | (7,180 | ) | ||||
| Accumulated other comprehensive income, net of taxes |
548 | 2,474 | ||||||
|
|
|
|
|
|||||
| Total stockholders’ equity |
86,428 | 87,630 | ||||||
|
|
|
|
|
|||||
| Total liabilities and stockholders’ equity |
$ | 891,486 | $ | 903,154 | ||||
|
|
|
|
|
|||||
This information is preliminary and based on Company data available at the time of the presentation.
HFBC Reports Fourth Quarter Results
Page 9
January 31, 2017
HOPFED BANCORP, INC.
Consolidated Condensed Statements of Income
(Dollars in thousands)
Unaudited
| For the Three Month Periods Ended December 31, |
For the Twelve Month Periods Ended December 31, |
|||||||||||||||
| 2016 | 2015 | 2016 | 2015 | |||||||||||||
| Interest income: |
||||||||||||||||
| Loans receivable |
$ | 6,603 | 6,405 | 25,778 | 25,300 | |||||||||||
| Securities available for sale — taxable |
1,051 | 1,196 | 4,595 | 6,149 | ||||||||||||
| Securities available for sale — nontaxable |
289 | 384 | 1,308 | 1,651 | ||||||||||||
| Interest-earning deposits |
8 | 11 | 46 | 22 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Total interest income |
7,951 | 7,996 | 31,727 | 33,122 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Interest expense: |
||||||||||||||||
| Deposits |
1,094 | 1,280 | 4,240 | 5,031 | ||||||||||||
| Advances from Federal Home Loan Bank |
29 | 83 | 163 | 289 | ||||||||||||
| Repurchase agreements |
87 | 123 | 508 | 491 | ||||||||||||
| Subordinated debentures |
101 | 186 | 388 | 739 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Total interest expense |
1,311 | 1,672 | 5,299 | 6,550 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Net interest income |
6,640 | 6,324 | 26,428 | 26,572 | ||||||||||||
| Provision for loan losses |
63 | 291 | 1,241 | 1,051 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Net interest income after provision for loan losses |
6,577 | 6,033 | 25,187 | 25,521 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Non-interest income: |
||||||||||||||||
| Service charges |
694 | 741 | 2,788 | 2,925 | ||||||||||||
| Merchant card income |
311 | 288 | 1,224 | 1,130 | ||||||||||||
| Mortgage origination revenue |
367 | 310 | 1,585 | 1,175 | ||||||||||||
| Gain on sale of securities |
190 | 139 | 612 | 691 | ||||||||||||
| Income from bank owned life insurance |
78 | 83 | 343 | 335 | ||||||||||||
| Financial services commission |
159 | 146 | 614 | 685 | ||||||||||||
| Other operating income |
201 | 178 | 769 | 661 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Total non-interest income |
2,000 | 1,885 | 7,935 | 7,602 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
This information is preliminary and based on Company data available at the time of the presentation.
HFBC Reports Fourth Quarter Results
Page 10
January 31, 2017
HOPFED BANCORP, INC.
Consolidated Condensed Statements of Income, Continued
(Dollars in thousands, except share and per share data)
(Unaudited)
| For the Three Month Periods Ended December 31, |
For the Twelve Month Periods Ended December 31, |
|||||||||||||||
| 2016 | 2015 | 2016 | 2015 | |||||||||||||
| Non-interest expenses: |
||||||||||||||||
| Salaries and benefits |
$ | 3,754 | 3,662 | 15,400 | 15,810 | |||||||||||
| Occupancy |
775 | 799 | 3,173 | 3,077 | ||||||||||||
| Data processing |
767 | 710 | 2,942 | 2,827 | ||||||||||||
| State bank tax |
247 | 259 | 990 | 1,018 | ||||||||||||
| Intangible amortization |
— | 1 | — | 33 | ||||||||||||
| Professional services |
396 | 329 | 1,404 | 1,506 | ||||||||||||
| Deposit insurance and examination |
113 | 183 | 609 | 586 | ||||||||||||
| Advertising |
334 | 319 | 1,401 | 1,302 | ||||||||||||
| Postage and communications |
141 | 149 | 625 | 577 | ||||||||||||
| Supplies |
151 | 163 | 607 | 527 | ||||||||||||
| (Gain) loss on sale of fixed assets |
— | 1 | (72 | ) | 1 | |||||||||||
| (Gain) loss on real estate owned |
(51 | ) | — | (21 | ) | 716 | ||||||||||
| Real estate owned expense |
26 | 105 | 469 | 511 | ||||||||||||
| Other operating expenses |
558 | 508 | 2,329 | 1,954 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Total non-interest expense |
7,211 | 7,188 | 29,856 | 30,445 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Income before income tax |
1,366 | 730 | 3,266 | 2,678 | ||||||||||||
| Income tax expense |
260 | 74 | 362 | 274 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Net income |
$ | 1,106 | 656 | 2,904 | 2,404 | |||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Net income per share: |
||||||||||||||||
| Basic |
$ | 0.18 | $ | 0.10 | $ | 0.47 | $ | 0.38 | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Diluted |
$ | 0.18 | $ | 0.10 | $ | 0.47 | $ | 0.38 | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Dividend per share |
$ | 0.04 | $ | 0.04 | $ | 0.16 | $ | 0.16 | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Weighted average shares outstanding — basic |
6,193,278 | 6,328,324 | 6,233,860 | 6,372,277 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Weighted average shares outstanding — diluted |
6,193,278 | 6,328,324 | 6,233,860 | 6,372,277 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
This information is preliminary and based on Company data available at the time of the presentation.
HFBC Reports Fourth Quarter Results
Page 11
January 31, 2017
HOPFED BANCORP, INC.
Selected Financial Data
(Dollars in thousands)
| For the Three Months Ended |
Change from Prior Quarter |
|||||||||||
| 12/31/2016 | 9/30/2016 | |||||||||||
| Interest income: |
||||||||||||
| Loans receivable |
$ | 6,603 | 6,569 | 34 | ||||||||
| Securities available for sale — taxable |
1,051 | 1,099 | (48 | ) | ||||||||
| Securities available for sale — nontaxable |
289 | 326 | (37 | ) | ||||||||
| Interest-earning deposits |
8 | 10 | (2 | ) | ||||||||
|
|
|
|
|
|
|
|||||||
| Total interest income |
7,951 | 8,004 | (53 | ) | ||||||||
|
|
|
|
|
|
|
|||||||
| Interest expense: |
||||||||||||
| Deposits |
1,094 | 1,044 | 50 | |||||||||
| Advances from Federal Home Loan Bank |
29 | 33 | (4 | ) | ||||||||
| Repurchase agreements |
87 | 139 | (52 | ) | ||||||||
| Subordinated debentures |
101 | 99 | 2 | |||||||||
|
|
|
|
|
|
|
|||||||
| Total interest expense |
1,311 | 1,315 | (4 | ) | ||||||||
|
|
|
|
|
|
|
|||||||
| Net interest income |
6,640 | 6,689 | (49 | ) | ||||||||
| Provision for loan losses |
63 | 255 | (192 | ) | ||||||||
|
|
|
|
|
|
|
|||||||
| Net interest income after provision for loan losses |
6,577 | 6,434 | 143 | |||||||||
|
|
|
|
|
|
|
|||||||
| Non-interest income: |
||||||||||||
| Service charges |
694 | 719 | (25 | ) | ||||||||
| Merchant card income |
311 | 308 | 3 | |||||||||
| Mortgage origination revenue |
367 | 415 | (48 | ) | ||||||||
| Gain on sale of securities |
190 | 79 | 111 | |||||||||
| Income from bank owned life insurance |
78 | 104 | (26 | ) | ||||||||
| Financial services commission |
159 | 131 | 28 | |||||||||
| Other operating income |
201 | 189 | 12 | |||||||||
|
|
|
|
|
|
|
|||||||
| Total non-interest income |
2,000 | 1,945 | 55 | |||||||||
|
|
|
|
|
|
|
|||||||
This information is preliminary and based on Company data available at the time of the presentation.
HFBC Reports Fourth Quarter Results
Page 12
January 31, 2017
HOPFED BANCORP, INC.
Selected Financial Data
(Dollars in thousands, except share and per share data)
| For the Three Months Ended |
Change from Prior Quarter |
|||||||||||
| 12/31/2016 | 9/30/2016 | |||||||||||
| Non-interest expenses: |
||||||||||||
| Salaries and benefits |
$ | 3,754 | 3,757 | (3 | ) | |||||||
| Occupancy |
775 | 810 | (35 | ) | ||||||||
| Data processing |
767 | 744 | 23 | |||||||||
| Franchise and deposit tax |
247 | 248 | (1 | ) | ||||||||
| Professional services |
396 | 368 | 28 | |||||||||
| Deposit insurance and examination |
113 | 164 | (51 | ) | ||||||||
| Advertising |
334 | 376 | (42 | ) | ||||||||
| Postage and communications |
141 | 157 | (16 | ) | ||||||||
| Supplies |
151 | 148 | 3 | |||||||||
| Loss (gain) on sale of fixed asset |
— | (72 | ) | 72 | ||||||||
| (Gain) loss on sale of real estate owned |
(51 | ) | 22 | (73 | ) | |||||||
| Real estate owned expense |
26 | 182 | (156 | ) | ||||||||
| Other operating expenses |
558 | 449 | 109 | |||||||||
|
|
|
|
|
|
|
|||||||
| Total non-interest expense |
7,211 | 7,353 | (142 | ) | ||||||||
|
|
|
|
|
|
|
|||||||
| Income before income tax expense |
1,366 | 1,026 | 340 | |||||||||
| Income tax expense |
260 | 41 | 219 | |||||||||
|
|
|
|
|
|
|
|||||||
| Net income |
$ | 1,106 | $ | 985 | $ | 121 | ||||||
|
|
|
|
|
|
|
|||||||
| Net income per share: |
||||||||||||
| Basic |
$ | 0.18 | $ | 0.16 | $ | 0.02 | ||||||
|
|
|
|
|
|
|
|||||||
| Diluted |
$ | 0.18 | $ | 0.16 | $ | 0.02 | ||||||
|
|
|
|
|
|
|
|||||||
| Dividend per share |
$ | 0.04 | $ | 0.04 | ||||||||
|
|
|
|
|
|||||||||
| Weighted average shares outstanding — basic |
6,193,278 | 6,232,465 | ||||||||||
|
|
|
|
|
|||||||||
| Weighted average shares outstanding — diluted |
6,193,278 | 6,232,465 | ||||||||||
|
|
|
|
|
|||||||||
This information is preliminary and based on Company data available at the time of the presentation.
HFBC Reports Fourth Quarter Results
Page 13
January 31, 2017
HOPFED BANCORP, INC.
Selected Financial Data
(Dollars in thousands, except share and per share data)
The table below adjusts tax-free investment income for the twelve month periods ended December 31, 2016, and December 31, 2015, by $650 and $813 respectively, for a tax equivalent rate using a cost of funds rate of 0.80% for the twelve month period ended December 31, 2016, and 1.00% for the twelve month period ended December 31, 2015. The table adjusts tax-free loan income by $23 and $22 respectively, for the twelve month periods ended December 31, 2016, and December 31, 2015, respectively, for a tax equivalent rate using the same cost of funds rate:
| Average | Income & | Average | Average | Income & | Average | |||||||||||||||||||
| Balance | Expense | Rates | Balance | Expense | Rates | |||||||||||||||||||
| 12/31/2016 | 12/31/2016 | 12/31/2016 | 12/31/2015 | 12/31/2015 | 12/31/2015 | |||||||||||||||||||
| Loans |
$ | 570,674 | $ | 25,801 | 4.52 | % | $ | 552,265 | $ | 25,322 | 4.59 | % | ||||||||||||
| Investments AFS taxable |
190,843 | 4,595 | 2.41 | % | 203,160 | 6,149 | 3.03 | % | ||||||||||||||||
| Investments AFS tax free |
38,981 | 1,958 | 5.02 | % | 52,836 | 2,464 | 4.66 | % | ||||||||||||||||
| Federal funds |
7,512 | 46 | 0.61 | % | 8,528 | 22 | 0.26 | % | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
| Total interest earning assets |
808,010 | 32,400 | 4.01 | % | 816,789 | 33,957 | 4.16 | % | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||||||||||
| Other assets |
72,407 | 75,032 | ||||||||||||||||||||||
|
|
|
|
|
|||||||||||||||||||||
| Total assets |
$ | 880,417 | $ | 891,821 | ||||||||||||||||||||
|
|
|
|
|
|||||||||||||||||||||
| Retail time deposits |
258,069 | 2,488 | 0.96 | % | 287,601 | 3,357 | 1.39 | % | ||||||||||||||||
| Brokered deposits |
36,409 | 398 | 1.09 | % | 33,288 | 378 | 1.52 | % | ||||||||||||||||
| Now accounts |
202,916 | 1,183 | 0.58 | % | 194,432 | 1,105 | 0.75 | % | ||||||||||||||||
| MMDA and savings accounts |
98,715 | 171 | 0.17 | % | 97,495 | 191 | 0.18 | % | ||||||||||||||||
| FHLB borrowings |
12,404 | 163 | 1.31 | % | 17,279 | 289 | 3.96 | % | ||||||||||||||||
| Repurchase agreements |
43,566 | 508 | 1.17 | % | 43,495 | 491 | 1.13 | % | ||||||||||||||||
| Subordinated debentures |
10,310 | 388 | 3.76 | % | 10,310 | 739 | 7.17 | % | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
| Total interest bearing liabilities |
662,389 | 5,299 | 0.80 | % | 683,900 | 6,550 | 0.96 | % | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||||||||||
| Non-interest bearing deposits |
125,709 | 113,350 | ||||||||||||||||||||||
| Other non-interest bearing liabilities |
3,274 | 3,865 | ||||||||||||||||||||||
| Stockholders’ equity |
89,045 | 90,706 | ||||||||||||||||||||||
|
|
|
|
|
|||||||||||||||||||||
| Total liabilities and stockholders’ equity |
$ | 880,417 | $ | 891,821 | ||||||||||||||||||||
|
|
|
|
|
|||||||||||||||||||||
| Net interest income |
$ | 27,101 | $ | 27,407 | ||||||||||||||||||||
|
|
|
|
|
|||||||||||||||||||||
| Interest rate spread |
3.21 | % | 2.90 | % | ||||||||||||||||||||
|
|
|
|
|
|||||||||||||||||||||
| Net interest margin |
3.35 | % | 3.36 | % | ||||||||||||||||||||
|
|
|
|
|
|||||||||||||||||||||
This information is preliminary and based on Company data available at the time of the presentation.
HFBC Reports Fourth Quarter Results
Page 14
January 31, 2017
HOPFED BANCORP, INC.
Selected Financial Data
The table below adjusts tax-free investment income for the three month periods ended December 31, 2016, and December 31, 2015, by $144 and $189, respectively, for a tax equivalent rate using a cost of funds rate of 0.80% for the three-month period ended December 31, 2016, and 1.00% for the three-month period ended December 31, 2015. The table adjusts tax-free loan income by $5 for three-month period ended December 31, 2016, and $8 for the three-month period ended December 31, 2015, respectively, for a tax equivalent rate using the same cost of funds rate:
| Average | Income & | Average | Average | Income & | Average | |||||||||||||||||||
| Balance | Expense | Rates | Balance | Expense | Rates | |||||||||||||||||||
| 12/31/2016 | 12/31/2016 | 12/31/2016 | 12/31/2015 | 12/31/2015 | 12/31/2015 | |||||||||||||||||||
| Loans |
$ | 589,282 | $ | 6,608 | 4.49 | % | $ | 559,423 | $ | 6,413 | 4.59 | % | ||||||||||||
| Investments AFS taxable |
179,483 | 1,051 | 2.34 | % | 186,659 | 1,196 | 2.56 | % | ||||||||||||||||
| Investments AFS tax free |
35,102 | 433 | 4.93 | % | 49,780 | 573 | 4.60 | % | ||||||||||||||||
| Federal funds |
5,915 | 8 | 0.54 | % | 15,635 | 11 | 0.28 | % | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
| Total interest earning assets |
809,782 | 8,100 | 4.00 | % | 811,497 | 8,193 | 4.04 | % | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||||||||||
| Other assets |
70,443 | 82,070 | ||||||||||||||||||||||
|
|
|
|
|
|||||||||||||||||||||
| Total assets |
$ | 880,225 | $ | 893,567 | ||||||||||||||||||||
|
|
|
|
|
|||||||||||||||||||||
| Retail time deposits |
258,899 | 653 | 1.01 | % | 282,985 | 841 | 1.19 | % | ||||||||||||||||
| Brokered deposits |
38,064 | 104 | 1.09 | % | 35,013 | 99 | 1.13 | % | ||||||||||||||||
| Now accounts |
200,475 | 295 | 0.59 | % | 195,141 | 295 | 0.60 | % | ||||||||||||||||
| MMDA and savings accounts |
99,325 | 42 | 0.17 | % | 99,698 | 45 | 0.18 | % | ||||||||||||||||
| FHLB borrowings |
11,000 | 29 | 1.05 | % | 17,174 | 83 | 1.93 | % | ||||||||||||||||
| Repurchase agreements |
41,717 | 87 | 0.83 | % | 42,810 | 123 | 1.15 | % | ||||||||||||||||
| Subordinated debentures |
10,310 | 101 | 7.22 | % | 10,310 | 186 | 7.22 | % | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
| Total interest bearing liabilities |
659,790 | 1,311 | 0.79 | % | 683,131 | 1,672 | 0.98 | % | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||||||||||
| Non-interest bearing deposits |
128,450 | 116,769 | ||||||||||||||||||||||
| Other non-interest bearing liabilities |
3,557 | 4,347 | ||||||||||||||||||||||
| Stockholders’ equity |
88,428 | 89,320 | ||||||||||||||||||||||
|
|
|
|
|
|||||||||||||||||||||
| Total liabilities and stockholders’ equity |
$ | 880,225 | $ | 893,567 | ||||||||||||||||||||
|
|
|
|
|
|||||||||||||||||||||
| Net interest income |
$ | 6,789 | $ | 6,521 | ||||||||||||||||||||
|
|
|
|
|
|||||||||||||||||||||
| Interest rate spread |
3.21 | % | 3.06 | % | ||||||||||||||||||||
|
|
|
|
|
|||||||||||||||||||||
| Net interest margin |
3.35 | % | 3.21 | % | ||||||||||||||||||||
|
|
|
|
|
|||||||||||||||||||||
This information is preliminary and based on Company data available at the time of the presentation.
-END-