Exhibit 99.1
NEWS
FOR IMMEDIATE RELEASE | CONTACT: | John E. Peck | ||||
President and CEO | ||||||
(270) 885-1171 |
HOPFED BANCORP REPORTS THIRD QUARTER RESULTS
HOPKINSVILLE, Ky. (October 26, 2004) – HopFed Bancorp, Inc. (NASDAQ: HFBC) (the “Company”) today reported results for the three-month and the nine-month periods ended September 30, 2004. Net income for the third quarter ended September 30, 2004, was $1,065,000, or $0.29 per share (basic and diluted), compared with net income of $1,046,0000, or $0.29 per share (basic and diluted), for the third quarter in 2003. Net income for the nine months ended September 30, 2004, was $3,053,000, or $0.84 per share (basic) and $0.83 per share (diluted), compared with net income of $2,547,000, or $0.70 per share (basic and diluted), for the nine months ended September 30, 2003.
Commenting on the third quarter results, John E. Peck, president and chief executive officer, said, “The Company’s operating results remain strong despite declines in non-interest income attributable to a decline in mortgage refinancing and higher interest rates. Net interest income primarily improved due to increased income on investment securities and a lower cost of deposits. Management is working to develop new products and services that we anticipate coming on-line in the first quarter of 2005. We anticipate that these new services should enhance non-interest income in 2005.”
At September 30, 2004, total assets increased to $573.1 million compared with $531.5 million at December 31, 2003; deposits increased to $429.1 million compared with $417.5 million at December 31, 2003; while net loans increased to $351.0 million compared with $334.7 million at December 31, 2003.
HopFed Bancorp, Inc. is the 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 website www.bankwithheritage.com.
Information contained in this press release, other than historical information, may be considered forward-looking in nature and is subject to various risks, uncertainties, and assumptions. Should one or more of these risks or uncertainties materialize, or should the underlying assumptions prove incorrect, actual results may vary materially from those anticipated, estimated or expected. Among the key factors that may have a direct bearing on the Company’s operating results, performance or financial condition are competition and the demand for the Company’s products and services, and other factors as set forth in filings with the Securities and Exchange Commission.
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2700 Fort Campbell Boulevard, Hopkinsville, KY 42240
HFBC Announces Third Quarter Results
Page 2
October 26, 2004
HOPFED BANCORP, INC.
Selected Financial Data
(In thousands, except per share data)
| Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||
| 2004 | 2003 | 2004 | 2003 | |||||||||
Earnings Summary | ||||||||||||
Interest income on loans | $ | 4,842 | $ | 4,868 | $ | 14,375 | $ | 14,442 | ||||
Interest income on taxable investments | 1,663 | 1,170 | 4,497 | 3,405 | ||||||||
Interest income on non taxable investments | 258 | 194 | 758 | 434 | ||||||||
Interest income on time deposits | 6 | 5 | 15 | 53 | ||||||||
Total interest income | 6,769 | 6,237 | 19,645 | 18,334 | ||||||||
Interest expense on deposits | 2,420 | 2,732 | 7,205 | 8,284 | ||||||||
Interest on subordinated debentures | 119 | 7 | 330 | 7 | ||||||||
Interest expense on borrowed funds | 623 | 353 | 1,634 | 930 | ||||||||
Total interest expense | 3,162 | 3,092 | 9,169 | 9,221 | ||||||||
Net interest income | 3,607 | 3,145 | 10,476 | 9,113 | ||||||||
Provision for loan losses | 300 | 450 | 900 | 1,300 | ||||||||
Net interest income after provision for loan losses | 3,307 | 2,695 | 9,576 | 7,813 | ||||||||
Non-interest income: | ||||||||||||
Gain on sale of investments | 125 | 156 | 300 | 528 | ||||||||
Gain on sale of loans | 14 | 153 | 70 | 531 | ||||||||
Loan fees | 146 | 120 | 414 | 321 | ||||||||
Service charges on deposits | 347 | 292 | 979 | 889 | ||||||||
Other | 214 | 162 | 578 | 534 | ||||||||
Total non-interest income | 846 | 883 | 2,341 | 2,803 | ||||||||
Non-interest expense: | ||||||||||||
Salaries and benefits | 1,340 | 1,092 | 3,868 | 4,062 | ||||||||
Occupancy expense | 187 | 162 | 531 | 537 | ||||||||
Data processing | 229 | 151 | 646 | 464 | ||||||||
State deposit taxes | 117 | 96 | 338 | 287 | ||||||||
Intangible amortization | 95 | 94 | 305 | 305 | ||||||||
Loss on sale of fixed assets | — | — | 7 | — | ||||||||
Other operating expenses | 609 | 437 | 1,672 | 1,212 | ||||||||
Total non-interest expense | 2,577 | 2,032 | 7,367 | 6,867 | ||||||||
Net income before income taxes | 1,576 | 1,546 | 4,550 | 3,749 | ||||||||
Federal income tax expense | 511 | 500 | 1,497 | 1,202 | ||||||||
Net income | $ | 1,065 | $ | 1,046 | $ | 3,053 | $ | 2,547 | ||||
Earnings per share - basic | $ | 0.29 | $ | 0.29 | $ | 0.84 | $ | 0.70 | ||||
Earnings per share - diluted | $ | 0.29 | $ | 0.29 | $ | 0.83 | $ | 0.70 | ||||
Dividend per share | $ | 0.12 | $ | 0.12 | $ | 0.36 | $ | 0.35 | ||||
Weighted average shares outstanding – basic | 3,638,152 | 3,630,396 | 3,633,379 | 3,630,396 | ||||||||
Weighted average shares outstanding – diluted | �� | 3,665,525 | 3,657,996 | 3,662,276 | 3,653,740 | |||||||
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HFBC Announces Third Quarter Results
Page 3
October 26, 2004
| As of | ||||||
| September 30, 2004 | December 31, 2003 | |||||
Total assets | $ | 573,079 | $ | 531,465 | ||
Loans receivable, gross | 354,133 | 337,316 | ||||
Securities available for sale | 146,036 | 143,514 | ||||
Securities held to maturity | 27,936 | 15,108 | ||||
Allowance for loan losses | 3,175 | 2,576 | ||||
Total deposits | 429,085 | 417,488 | ||||
Total borrowings | 92,030 | 64,663 | ||||
Stockholders’ equity | 49,025 | 47,238 | ||||
Book value | $ | 13.47 | $ | 13.01 | ||
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