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 21, 2005) – HopFed Bancorp, Inc. (NASDAQ: HFBC) (the “Company”) today reported results for the third quarter and the nine-month period ended September 30, 2005. Net income for the third quarter ended September 30, 2005, was $1,021,000, or $0.28 per share diluted, compared with net income of $1,065,000, or $0.29 per share diluted, for the third quarter in 2004. Net income for the nine months ended September 30, 2005, was $3,079,000, or $0.84 per share diluted, compared with net income of $3,053,000, or $0.83 per share diluted, for the nine months ended September 30, 2004.
Commenting on the third quarter results, John E. Peck, president and chief executive officer, said, “The Company’s year to date net income remained relatively unchanged as compared to the same period last year despite a difficult interest rate environment. The small decline in the Company’s third quarter 2005 net income is largely the result of a reduced amount of gains on the sale of investments. The Company continues to see an improvement in non-interest income from service charges on loans and deposits. The Company’s commercial loan demand remains strong and we anticipate meeting our goal for loan growth by the end of October 2005.
“In addition, at September 30, 2005, total assets increased to $616.7 million compared with $579.7 million at December 31, 2004, deposits increased to $469.7 million compared with $436.1 million at December 31, 2004, while net loans increased to $373.6 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.
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HFBC Announces Second Quarter Results
Page 2
October 21, 2005
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.
HOPFED BANCORP, INC.
Selected Financial Data
(Dollars In thousands, except share and per share data)
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||
2005 | 2004 | 2005 | 2004 | |||||||||
Earnings Summary | ||||||||||||
Interest income on loans | $ | 5,634 | $ | 4,842 | $ | 15,823 | $ | 14,375 | ||||
Interest income on taxable investments | 1,772 | 1,663 | 4,957 | 4,497 | ||||||||
Interest income on non taxable investments | 147 | 258 | 517 | 758 | ||||||||
Interest income on time deposits | 63 | 6 | 80 | 15 | ||||||||
Total interest income | 7,616 | 6,769 | 21,377 | 19,645 | ||||||||
Interest expense on deposits | 3,157 | 2,420 | 8,425 | 7,205 | ||||||||
Interest on subordinated debentures | 174 | 119 | 507 | 330 | ||||||||
Interest expense on borrowed funds | 686 | 623 | 2,067 | 1,634 | ||||||||
Total interest expense | 4,017 | 3,162 | 10,999 | 9,169 | ||||||||
Net interest income | 3,599 | 3,607 | 10,378 | 10,476 | ||||||||
Provision for loan losses | 300 | 300 | 900 | 900 | ||||||||
Net interest income after provision For loan losses | 3,299 | 3,307 | 9,478 | 9,576 | ||||||||
Non-interest income: | ||||||||||||
Gain on sale of assets | — | — | 4 | — | ||||||||
Gain on sale of investments | 16 | 125 | 379 | 300 | ||||||||
Gain on sale of loans | 45 | 14 | 110 | 70 | ||||||||
Service charges | 659 | 493 | 2,054 | 1,393 | ||||||||
Other | 250 | 214 | 702 | 578 | ||||||||
Total non-interest income | 970 | 846 | 3,249 | 2,341 | ||||||||
Non-interest expense: | ||||||||||||
Salaries and benefits | 1,491 | 1,340 | 4,371 | 3,868 | ||||||||
Intangible amortization | 94 | 95 | 284 | 305 | ||||||||
Occupancy expense | 236 | 187 | 720 | 531 | ||||||||
Data processing | 302 | 229 | 821 | 646 | ||||||||
State deposit taxes | 125 | 117 | 354 | 338 | ||||||||
Loss on sale of fixed assets | — | — | — | 7 | ||||||||
Other operating expenses | 550 | 609 | 1,768 | 1,672 | ||||||||
Total non-interest expense | 2,798 | 2,577 | 8,318 | 7,367 | ||||||||
Net income before income taxes | 1,471 | 1,576 | 4,409 | 4,550 | ||||||||
Federal income tax expense | 450 | 511 | 1,330 | 1,497 | ||||||||
Net income | $ | 1,021 | $ | 1,065 | $ | 3,079 | $ | 3,053 | ||||
Earnings per share - basic | $ | 0.28 | $ | 0.29 | $ | 0.85 | $ | 0.84 | ||||
Earnings per share - diluted | $ | 0.28 | $ | 0.29 | $ | 0.84 | $ | 0.83 | ||||
Dividend per share | $ | 0.12 | $ | 0.12 | $ | 0.36 | $ | 0.36 | ||||
Weighted average shares outstanding – Basic | 3,647,917 | 3,638,152 | 3,642,667 | 3,633,379 | ||||||||
Weighted average shares outstanding – Diluted | 3,672,394 | 3,665,525 | 3,668,724 | 3,662,276 | ||||||||
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HFBC Announces Second Quarter Results
Page 3
October 21, 2005
As of | ||||||||
September 30, 2005 | December 31, 2004 | |||||||
Total assets | $ | 616,665 | $ | 579,731 | ||||
Loans receivable, gross | 377,455 | 360,098 | ||||||
Securities available for sale | 176,708 | 155,166 | ||||||
Required investment in FHLB stock | 3,166 | 3,015 | ||||||
Securities held to maturity | 18,237 | 22,768 | ||||||
Allowance for loan losses | 3,817 | 3,273 | ||||||
Total deposits | 469,694 | 436,195 | ||||||
Total borrowings | 93,883 | 91,629 | ||||||
Stockholders’ equity | 49,976 | 49,373 | ||||||
Book value | $ | 13.70 | $ | 13.58 | ||||
Allowance for loan loss / Gross loans | 1.01 | % | 0.91 | % | ||||
Non performing assets / Total assets | 0.23 | % | 0.13 | % | ||||
Non accrual or 90 days past due / Total loans | 0.34 | % | 0.18 | % |
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