Exhibit 99.1
NEWS
| FOR IMMEDIATE RELEASE | CONTACT: John E. Peck | |
| President and CEO | ||
| (270) 885-1171 |
HOPFED BANCORP REPORTS SECOND QUARTER RESULTS
HOPKINSVILLE, Ky. (July 22, 2005) – HopFed Bancorp, Inc. (NASDAQ: HFBC) (the “Company”) today reported results for the second quarter and the six-month period ended June 30, 2005. Net income for the second quarter ended June 30, 2005, was $1,065,000, or $0.29 per share diluted, compared with net income of $1,041,000, or $0.28 per share diluted, for the second quarter in 2004. Net income for the six months ended June 30, 2005, was $2,058,000, or $0.56 per share diluted, compared with net income of $1,988,000, or $0.54 per share diluted, for the six months ended June 30, 2004.
Commenting on the second quarter results, John E. Peck, president and chief executive officer, said, “The Company’s second quarter and year to date net income improved despite declines in the Company’s net interest margin, resulting from a flattening of the yield curve. Competition for time deposits is increasing and the Company remains focused on demand deposit growth to meet a greater portion of the Company’s funding needs. The Company’s commercial loan demand remains strong and the Company’s level of non-performing assets are less than $900,000.
“In April 2005, the Company realized a $328,800 gain on the sale of investments as a result of the acquisition of the Bank’s data processor, Intrieve Inc. by Harland Financial Solutions. Excluding gains on the sale of investments, the Company’s non-interest income has increased approximately $600,000, or 45%, over the six month period ending June 30, 2004.
“In addition, at June 30, 2005, total assets increased to $591.1 million compared with $579.7 million at December 31, 2004, deposits increased to $452.7 million compared with $436.1 million at December 31, 2004, despite a net decrease of $4.6 million in time deposits; while net loans increased to $367.2 million compared with $356.8 million at December 31, 2004.”
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.
HFBC Announces Second Quarter Results
Page 2
July 22, 2005
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.
HOPFED BANCORP, INC.
Selected Financial Data
(In thousands, except share and per share data)
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||
| 2005 | 2004 | 2005 | 2004 | |||||||||
| Earnings Summary | ||||||||||||
Interest income on loans | $ | 5,189 | $ | 4,814 | $ | 10,189 | $ | 9,534 | ||||
Interest income on taxable investments | 1,578 | 1,517 | 3,185 | 2,843 | ||||||||
Interest income on non taxable investments | 162 | 258 | 370 | 500 | ||||||||
Interest income on time deposits | 7 | 3 | 17 | 9 | ||||||||
Total interest income | 6,936 | 6,592 | 13,761 | 12,886 | ||||||||
Interest expense on deposits | 2,699 | 2,358 | 5,268 | 4,787 | ||||||||
Interest on subordinated debentures | 166 | 111 | 333 | 221 | ||||||||
Interest expense on borrowed funds | 699 | 585 | 1,381 | 1,011 | ||||||||
Total interest expense | 3,564 | 3,054 | 6,982 | 6,019 | ||||||||
Net interest income | 3,372 | 3,538 | 6,779 | 6,867 | ||||||||
Provision for loan losses | 300 | 300 | 600 | 600 | ||||||||
Net interest income after provision For loan losses | 3,072 | 3,238 | 6,179 | 6,267 | ||||||||
Non-interest income: | ||||||||||||
Gain on sale of assets | — | — | 4 | — | ||||||||
Gain on sale of investments | 363 | 3 | 363 | 174 | ||||||||
Gain on sale of loans | 54 | 25 | 65 | 57 | ||||||||
Service charges | 566 | 450 | 1,096 | 835 | ||||||||
Other | 328 | 227 | 751 | 431 | ||||||||
Total non-interest income | 1,311 | 705 | 2,279 | 1,497 | ||||||||
Non-interest expense: | ||||||||||||
Salaries and benefits | 1,447 | 1,271 | 2,880 | 2,527 | ||||||||
Intangible amortization | 95 | 95 | 190 | 190 | ||||||||
Occupancy expense | 260 | 175 | 484 | 344 | ||||||||
Data processing | 238 | 219 | 519 | 417 | ||||||||
State deposit taxes | 121 | 104 | 229 | 220 | ||||||||
Loss on sale of fixed assets | — | — | — | 7 | ||||||||
Other operating expenses | 695 | 531 | 1,218 | 1,086 | ||||||||
Total non-interest expense | 2,856 | 2,395 | 5,520 | 4,791 | ||||||||
Net income before income taxes | 1,527 | 1,548 | 2,938 | 2,973 | ||||||||
Federal income tax expense | 462 | 507 | 880 | 985 | ||||||||
Net income | $ | 1,065 | $ | 1,041 | $ | 2,058 | $ | 1,988 | ||||
Earnings per share - basic | $ | 0.29 | $ | 0.29 | $ | 0.57 | $ | 0.55 | ||||
Earnings per share - diluted | $ | 0.29 | $ | 0.28 | $ | 0.56 | $ | 0.54 | ||||
Dividend per share | $ | 0.12 | $ | 0.12 | $ | 0.24 | $ | 0.24 | ||||
Weighted average shares outstanding – Basic | 3,640,706 | 3,631,515 | 3,639,999 | 3,630,955 | ||||||||
Weighted average shares outstanding – Diluted | 3,666,305 | 3,659,691 | 3,666,848 | 3,660,581 | ||||||||
HOPFED BANCORP, INC.
Selected Financial Data
(In thousands, except share and per share data)
| As of | ||||||||
| June 30, 2005 | December 31, 2004 | |||||||
Total assets | $ | 591,102 | $ | 579,731 | ||||
Loans receivable, gross | 370,862 | 360,098 | ||||||
Securities available for sale | 150,913 | 155,166 | ||||||
Required investment in FHLB stock | 3,127 | 3,015 | ||||||
Securities held to maturity | 22,733 | 22,768 | ||||||
Allowance for loan losses | 3,664 | 3,273 | ||||||
Total deposits | 452,674 | 436,195 | ||||||
Total borrowings | 85,281 | 91,629 | ||||||
Stockholders’ equity | 50,396 | 49,373 | ||||||
Book value | $ | 13.82 | $ | 13.58 | ||||
Allowance for loan loss / Gross loans | 0.99 | % | 0.91 | % | ||||
Non performing assets / Total assets | 0.15 | % | 0.13 | % | ||||
Non accrual or 90 days past due / Total loans | 0.19 | % | 0.18 | % | ||||