EXHIBIT 99.1
FOR IMMEDIATE RELEASE | CONTACT: | John E. Peck | ||
President and CEO | ||||
(270) 885-1171 |
HOPFED BANCORP REPORTS FOURTH QUARTER AND 2005 ANNUAL RESULTS
HOPKINSVILLE, Ky. (January 31, 2006) – HopFed Bancorp, Inc. (NASDAQ: HFBC) (the “Company”) today reported results for the three-month and the twelve-month periods ended December 31, 2005. Net income for the fourth quarter ended December 31, 2005, was $1,051,000, or $0.29 per share (basic) and $0.28 per share (diluted), compared with net income of $938,000, or $0.26 per share (basic and diluted), for the fourth quarter in 2004. Net income for the twelve months ended December 31, 2005, was $4,130,000, or $1.13 per share (basic) and $1.12 per share (diluted), compared with net income of $3,991,000, or $1.10 per share (basic) and $1.09 (diluted), for the twelve months ended December 31, 2004.
Commenting on the fourth quarter results, John E. Peck, president and chief executive officer, said, “The loan portfolio grew by $23 million in the fourth quarter, exceeding our net loan growth in the three previous quarters combined. The majority of the portfolio’s growth was in commercial real estate and construction loans. The Company is hopeful that loan growth will remain robust as we expand into Clarksville, Tennessee, approximately 20 miles south of the Company’s headquarters. As compared to the Company’s current markets, the Clarksville market is significantly larger than each of the Company’s current markets, with favorable growth, income, and demographic characteristics. In 2006, the Company anticipates building two retail offices in Clarksville.”
Largely due to the growth in the Company’s loan portfolio and non-interest income, fourth quarter net income has improved significantly over the same period last year. At December 31, 2005, total assets increased to $639.6 million compared with $579.7 million at December 31, 2004; deposits increased to $482.7 million compared with $436.2 million at December 31, 2004; while net loans increased to $397.3 million compared with $356.8 million at December 31, 2004.”
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.
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2700 Fort Campbell Boulevard, Hopkinsville, KY 42240
HFBC Announces Fourth Quarter Results
Page 2
January 31, 2006
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
(In thousands, except share and per share data)
Three Months Ended December 31, | Twelve Months Ended December 31, | |||||||||||
2005 | 2004 | 2005 | 2004 | |||||||||
Earnings Summary | ||||||||||||
Interest income on loans | $ | 6,183 | $ | 4,931 | $ | 22,006 | $ | 19,307 | ||||
Interest income on taxable investments | 1,911 | 1,542 | 6,868 | 6,048 | ||||||||
Interest income on non taxable investments | 156 | 225 | 673 | 983 | ||||||||
Interest income on time deposits | 39 | 28 | 119 | 43 | ||||||||
Total interest income | 8,289 | 6,726 | 29,666 | 26,381 | ||||||||
Interest expense on deposits | 3,484 | 2,546 | 11,909 | 9,753 | ||||||||
Interest on subordinated debentures | 173 | 149 | 680 | 489 | ||||||||
Interest expense on borrowed funds | 818 | 661 | 2,885 | 2,295 | ||||||||
Total interest expense | 4,475 | 3,356 | 15,474 | 12,537 | ||||||||
Net interest income | 3,814 | 3,370 | 14,192 | 13,844 | ||||||||
Provision for loan losses | 350 | 300 | 1,250 | 1,200 | ||||||||
Net interest income after provision for loan losses | 3,464 | 3,070 | 12,942 | 12,644 | ||||||||
Non-interest income: | ||||||||||||
Gain on sale of investments | — | 7 | 379 | 306 | ||||||||
Gain on sale of loans | 28 | 28 | 138 | 99 | ||||||||
Service charges | 868 | 323 | 2,462 | 1,302 | ||||||||
Income from bank owned life insurance | 64 | 64 | 260 | 268 | ||||||||
Income from financial service subsidiaries | 79 | 116 | 498 | 429 | ||||||||
Other | 249 | 157 | 795 | 634 | ||||||||
Total non-interest income | 1,288 | 695 | 4,532 | 3,038 | ||||||||
Non-interest expense: | ||||||||||||
Salaries and benefits | 1,535 | 1,299 | 5,906 | 5,166 | ||||||||
Occupancy expense | 318 | 228 | 1,038 | 759 | ||||||||
Data processing | 294 | 230 | 1,115 | 876 | ||||||||
State deposit taxes | 83 | 79 | 437 | 417 | ||||||||
Intangible amortization | 94 | 95 | 378 | 378 | ||||||||
Advertising expense | 130 | 192 | 620 | 600 | ||||||||
Professional services | 334 | 109 | 855 | 542 | ||||||||
Other operating expenses | 493 | 408 | 1,251 | 1,270 | ||||||||
Total non-interest expense | 3,281 | 2,640 | 11,600 | 10,008 | ||||||||
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HFBC Announces Fourth Quarter Results
Page 3
January 31, 2006
Three Months Ended December 31, | Twelve Months Ended December 31, | |||||||||||
2005 | 2004 | 2005 | 2004 | |||||||||
Net income before income taxes | 1,471 | 1,125 | 5,874 | 5,674 | ||||||||
Income tax expense | 420 | 187 | 1,744 | 1,683 | ||||||||
Net income | $ | 1,051 | $ | 938 | $ | 4,130 | $ | 3,991 | ||||
Earnings per share - basic | $ | 0.29 | $ | 0.26 | $ | 1.13 | $ | 1.10 | ||||
Earnings per share - diluted | $ | 0.28 | $ | 0.26 | $ | 1.12 | $ | 1.09 | ||||
Dividend per share | $ | 0.12 | $ | 0.12 | $ | 0.48 | $ | 0.48 | ||||
Weighted average shares outstanding – basic | 3,648,670 | 3,639,283 | 3,644,178 | 3,634,904 | ||||||||
Weighted average shares outstanding – diluted | 3,673,565 | 3,667,646 | 3,669,776 | 3,663,751 | ||||||||
As of | ||||||||
December 31, 2005 | December 31, 2004 | |||||||
Total assets | $ | 639,589 | $ | 579,735 | ||||
Loans receivable, gross | 401,314 | 360,098 | ||||||
Securities available for sale | 172,890 | 155,166 | ||||||
Required investment in FHLB stock | 3,211 | 3,015 | ||||||
Securities held to maturity | 18,183 | 22,768 | ||||||
Allowance for loan losses | 4,004 | 3,273 | ||||||
Total deposits | 482,728 | 436,195 | ||||||
Total borrowings | 103,482 | 91,629 | ||||||
Stockholders’ equity | 49,842 | 49,373 | ||||||
Book value | $ | 13.66 | $ | 13.57 | ||||
Allowance for loan loss / Gross loans | 1.00 | % | 0.91 | % | ||||
Non-performing assets / Total assets | 0.19 | % | 0.13 | % | ||||
Non-accrual or 90 days past due / Total loans | 0.25 | % | 0.18 | % |
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