Exhibit 99.1
NEWS
| FOR IMMEDIATE RELEASE | CONTACT: John E. Peck | |||
| President and CEO | ||||
| (270) 885-1171 |
HOPFED BANCORP REPORTS FOURTH QUARTER AND 2004 ANNUAL RESULTS
HOPKINSVILLE, Ky. (January 31, 2005) – HopFed Bancorp, Inc. (NASDAQ: HFBC) (the “Company”) today reported results for the three-month and the twelve-month periods ended December 31, 2004. Net income for the fourth quarter ended December 31, 2004, was $938,000, or $0.26 per share (basic and diluted), compared with net income of $948,000, or $0.26 per share (basic and diluted), for the fourth quarter in 2003. Net income for the twelve months ended December 31, 2004, was $3,991,000, or $1.10 per share (basic) and $1.09 per share (diluted), compared with net income of $3,495,000, or $0.96 per share (basic and diluted), for the twelve months ended December 31, 2003.
Commenting on the fourth quarter results, John E. Peck, president and chief executive officer, said, “Early in the fourth quarter, the Company extended select liabilities in anticipation of rising rates and saw rate pressures on short-term deposits, resulting in a small decline in the Company’s net interest margin. Operating expenses have increased due to several factors, including hiring additional staff and outside service providers to assist the Company in Sarbanes-Oxley compliance. Despite these challenges, net income remains relatively unchanged over the same period last year. At December 31, 2004, total assets increased to $579.7 million compared with $531.5 million at December 31, 2003; deposits increased to $436.2 million compared with $417.5 million at December 31, 2003; while net loans increased to $356.8 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 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 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 Fourth Quarter Results
Page 6
January 31, 2005
HOPFED BANCORP, INC.
ARTICLE ISelected Financial Data
(In thousands, except share and per share data)
ARTICLE II
ARTICLE III
| Three Months Ended December 31, | Twelve Months Ended December 31, | |||||||||||
| 2004 | 2003 | 2004 | 2003 | |||||||||
Earnings Summary | ||||||||||||
Interest income on loans | $ | 4,931 | $ | 4,817 | $ | 19,307 | $ | 19,332 | ||||
Interest income on taxable investments | 1,542 | 1,340 | 6,048 | 4,663 | ||||||||
Interest income on non taxable investments | 225 | 239 | 983 | 674 | ||||||||
Interest income on time deposits | 28 | 13 | 43 | 74 | ||||||||
Total interest income | 6,726 | 6,409 | 26,381 | 24,743 | ||||||||
Interest expense on deposits | 2,546 | 2,611 | 9,753 | 10,896 | ||||||||
Interest on subordinated debentures | 149 | 112 | 489 | 119 | ||||||||
Interest expense on borrowed funds | 661 | 435 | 2,295 | 1,364 | ||||||||
Total interest expense | 3,356 | 3,158 | 12,537 | 12,379 | ||||||||
Net interest income | 3,370 | 3,251 | 13,844 | 12,364 | ||||||||
Provision for loan losses | 300 | 450 | 1,200 | 1,750 | ||||||||
Net interest income after provision for loan losses | 3,070 | 2,801 | 12,644 | 10,614 | ||||||||
Non-interest income: | ||||||||||||
Gain on sale of investments | 7 | 18 | 306 | 634 | ||||||||
Gain on sale of loans | 28 | 207 | 99 | 552 | ||||||||
Loan fees and servicing | 148 | 119 | 562 | 520 | ||||||||
Service charges on deposits | 323 | 223 | 1,302 | 1,162 | ||||||||
Other | 189 | 129 | 769 | 631 | ||||||||
Total non-interest income | 695 | 696 | 3,038 | 3,499 | ||||||||
Non-interest expense: | ||||||||||||
Salaries and benefits | 1,299 | 1,178 | 5,166 | 5,241 | ||||||||
Occupancy expense | 228 | 162 | 759 | 652 | ||||||||
Data processing | 230 | 151 | 876 | 639 | ||||||||
State deposit taxes | 79 | 96 | 416 | 383 | ||||||||
Intangible amortization | 95 | 102 | 376 | 378 | ||||||||
Loss on sale of fixed assets | 6 | — | 13 | — | ||||||||
Other operating expenses | 703 | 488 | 2,402 | 1,751 | ||||||||
Total non-interest expense | 2,640 | 2,177 | 10,008 | 9,044 | ||||||||
Net income before income taxes | 1,125 | 1,320 | 5,674 | 5,069 | ||||||||
Federal income tax expense | 187 | 372 | 1,683 | 1,574 | ||||||||
Net income | $ | 938 | $ | 948 | $ | 3,991 | $ | 3,495 | ||||
Earnings per share - basic | $ | 0.26 | $ | 0.26 | $ | 1.10 | $ | 0.96 | ||||
Earnings per share - diluted | $ | 0.26 | $ | 0.26 | $ | 1.09 | $ | 0.96 | ||||
Dividend per share | $ | 0.12 | $ | 0.12 | $ | 0.48 | $ | 0.47 | ||||
Weighted average shares outstanding – basic | 3,639,283 | 3,630,396 | 3,634,904 | 3,630,396 | ||||||||
Weighted average shares outstanding – diluted | 3,667,646 | 3,653,974 | 3,663,751 | 3,653,974 | ||||||||
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HFBC Announces Fourth Quarter Results
Page 7
January 31, 2005
| As of | ||||||
| December 31, 2004 | December 31, 2003 | |||||
Total assets | $ | 579,735 | $ | 531,465 | ||
Loans receivable, gross | 360,098 | 337,316 | ||||
Securities available for sale | 158,492 | 143,514 | ||||
Securities held to maturity | 22,768 | 15,108 | ||||
Allowance for loan losses | 3,273 | 2,576 | ||||
Total deposits | 436,194 | 417,488 | ||||
Total borrowings | 91,628 | 64,663 | ||||
Stockholders’ equity | 49,373 | 47,238 | ||||
Book value | $ | 13.57 | $ | 13.01 | ||
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