Exhibit 99.1
| FOR IMMEDIATE RELEASE | CONTACT: JohnE. Peck President and CEO (270) 885-1171 |
HOPFED BANCORP REPORTS SECOND QUARTER RESULTS
HOPKINSVILLE, Ky. (July 26, 2004) – HopFed Bancorp, Inc. (NASDAQ: HFBC) (the “Company”) today reported results for the second quarter and the six-month period ended June 30, 2004. Net income for the second quarter ended June 30, 2004, was $1,041,000, or $0.29 per share, compared with net income of $505,000, or $0.14 per share, for the second quarter in 2003. Net income for the six months ended June 30, 2004, was $1,988,000, or $0.55 per share, compared with net income of $1,501,000, or $0.41 per share.
Commenting on the second quarter results, John E. Peck, president and chief executive officer, said, “The Company continues to experience growth in the number of demand deposit accounts. By focusing on core deposits, the Company is working to reduce its cost of funds and improving its net interest margin. As interest rates increase, this focus further enhances our operating results. The Company’s improved net interest income offset declines in non-operating income over the same six-month period in 2003. The decline in non-interest income is the result of higher interest rates, weakening the demand for fixed rate mortgages and limiting the Company’s opportunities to realize gains on the sale of investment securities. Despite these challenges, net income increased almost $100,000 over the previous quarter.”
“In addition, at June 30, 2004, total assets increased to $582.2 million compared with $531.5 million at December 31, 2003; deposits declined to $416.5 million compared with $417.5 million at December 31, 2003; while net loans increased to $351.4 million compared with $334.7 million at December 31, 2003.”
HopFed Bancorp, Inc. is a holding company for Heritage Bank headquartered in Hopkinsville, Kentucky. The Bank has nine offices in western Kentucky as well as Fall & Fall Insurance of Fulton, Kentucky and Heritage Solutions of Murray, Kentucky. 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 websitewww.bankwithheritage.com.
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.
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||
| 2004 | 2003 | 2004 | 2003 | |||||||||
Earnings Summary | ||||||||||||
Interest income on loans | $ | 4,814 | $ | 4,843 | $ | 9,534 | $ | 9,574 | ||||
Interest income on taxable investments | 1,517 | 1,214 | 2,843 | 2,235 | ||||||||
Interest income on non taxable investments | 258 | 125 | 500 | 240 | ||||||||
Interest income on time deposits | 3 | 10 | 9 | 48 | ||||||||
Total interest income | 6,592 | 6,192 | 12,886 | 12,097 | ||||||||
Interest expense on deposits | 2,358 | 2,786 | 4,787 | 5,552 | ||||||||
Interest on subordinated debentures | 111 | — | 221 | — | ||||||||
Interest expense on borrowed funds | 585 | 310 | 1,011 | 577 | ||||||||
Total interest expense | 3,054 | 3,096 | 6,019 | 6,129 | ||||||||
Net interest income | 3,538 | 3,096 | 6,867 | 5,968 | ||||||||
Provision for loan losses | 300 | 450 | 600 | 850 | ||||||||
Net interest income after provision | ||||||||||||
For loan losses | 3,238 | 2,646 | 6,267 | 5,118 | ||||||||
Non-interest income: | ||||||||||||
Gain on sale of investments | 3 | 54 | 174 | 372 | ||||||||
Gain on sale of loans | 25 | 260 | 57 | 378 | ||||||||
Service charges | 450 | 586 | 835 | 1,161 | ||||||||
Other | 227 | 5 | 431 | 9 | ||||||||
Total non-interest income | 705 | 905 | 1,497 | 1,920 | ||||||||
Non-interest expense: | ||||||||||||
Salaries and benefits | 1,271 | 1,947 | 2,527 | 2,970 | ||||||||
Occupancy expense | 175 | 166 | 344 | 376 | ||||||||
Data processing | 219 | 127 | 417 | 313 | ||||||||
State deposit taxes | 104 | 96 | 220 | 192 | ||||||||
Loss on sale of fixed assets | — | — | 7 | — | ||||||||
Other operating expenses | 626 | 476 | 1,276 | 984 | ||||||||
Total non-interest expense | 2,395 | 2,812 | 4,791 | 4,835 | ||||||||
Net income before income taxes | 1,548 | 739 | 2,973 | 2,203 | ||||||||
Federal income tax expense | 507 | 234 | 985 | 702 | ||||||||
Net income | $ | 1,041 | $ | 505 | $ | 1,988 | $ | 1,501 | ||||
Earnings per share – basic | $ | 0.29 | $ | 0.14 | $ | 0.55 | $ | 0.41 | ||||
Earnings per share – diluted | $ | 0.28 | $ | 0.14 | $ | 0.54 | $ | 0.41 | ||||
Dividend per share | $ | 0.12 | $ | 0.12 | $ | 0.24 | $ | 0.23 | ||||
Weighted average shares outstanding – Basic | 3,630,396 | 3,630,396 | 3,630,396 | 3,630,396 | ||||||||
Weighted average shares outstanding – Diluted | 3,658,572 | 3,654,347 | 3,660,022 | 3,650,581 | ||||||||
| As of | ||||||
| June 30, 2004 | December 31, 2003 | |||||
Total assets | $ | 582,278 | $ | 531,465 | ||
Loans receivable, gross | 354,368 | 337,316 | ||||
Securities available for sale | 160,710 | 143,514 | ||||
Securities held to maturity | 29,969 | 15,108 | ||||
Allowance for loan losses | 2,999 | 2,576 | ||||
Total deposits | 416,465 | 417,488 | ||||
Total borrowings | 116,795 | 64,663 | ||||
Stockholders’ equity | 46,380 | 47,238 | ||||
Book value | $ | 12.78 | $ | 13.01 | ||