Exhibit 99.1
FOR IMMEDIATE RELEASE | CONTACT: | John E. Peck | ||
President and CEO | ||||
(270) 885-1171 |
HOPFED BANCORP, INC. REPORTS FIRST QUARTER RESULTS
HOPKINSVILLE, Ky. (May 5, 2006) – HopFed Bancorp, Inc. (NASDAQ: HFBC) (the “Company”) today reported results for the first quarter ended March 31, 2006. Net income for the first quarter ended March 31, 2006, was $1,201,000, or $0.33 per share (basic and diluted), compared with net income of $993,000, or $0.27 per share (basic and diluted), for the first quarter in 2005.
Commenting on the first quarter results, John E. Peck, president and chief executive officer, said, “The Company’s net interest margin is improving as a result of robust loan demand and the repricing of the adjustable rate loans as short-term rates increase. Deposit growth is restrained due to a highly competitive market and the Company’s desire to limit increases in the Company’s interest expense. With loan demand remaining strong, deposit pricing will be key to further margin enhancement.”
“In addition, at March 31, 2006, total assets increased to $649.3 million compared with $639.6 million at December 31, 2005; deposits declined to $474.9 million compared with $482.7 million at December 31, 2005; while net loans increased to $416.3 million compared with $397.3 million at December 31, 2005.”
“We are excited about the recently announced acquisition of four AmSouth retail offices located in Cheatham and Houston counties in Tennessee. These are desirable locations with solid growth potential just outside of Nashville. The four offices have a combined deposit base of approximately $80 million, with a favorable mix of transaction and core deposit accounts. The loan portfolio is equally attractive, consisting largely of home equity lines of credit tied to prime. During the second quarter, the Company anticipates incurring approximately $180,000 in additional expenses related to this transaction.
The Company anticipates that the transaction, pending regulatory approval, will occur late in the second quarter. Beginning in the third quarter of 2006, management anticipates that the transaction will be immediately accretive to the earnings of the Company.”
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.
HFBC Announces First Quarter Results
Page 2
May 5, 2006
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 per share data)
Three Months Ended March 31, | ||||||
2006 | 2005 | |||||
Earnings Summary | ||||||
Interest income on loans | $ | 6,716 | $ | 5,000 | ||
Interest income on taxable investments | 1,882 | 1,607 | ||||
Interest income on non taxable investments | 146 | 208 | ||||
Interest income on time deposits | 35 | 10 | ||||
Total interest income | 8,779 | 6,825 | ||||
Interest expense on deposits | 3,526 | 2,569 | ||||
Interest expense on subordinated debentures | 167 | 167 | ||||
Interest expense on FHLB advances | 1,003 | 682 | ||||
Total interest expense | 4,696 | 3,418 | ||||
Net interest income | 4,083 | 3,407 | ||||
Provision for loan losses | 213 | 300 | ||||
Net interest income after provision for loan losses | 3,870 | 3,107 | ||||
Non-interest income: | ||||||
Income from financial services | 91 | 201 | ||||
Gain on sale of investments | 23 | — | ||||
Gain on sale of loans | 28 | 11 | ||||
Service charges | 580 | 530 | ||||
Income from bank owned life insurance | 65 | 64 | ||||
Other | 260 | 162 | ||||
Total non-interest income | 1,047 | 968 | ||||
HFBC Announces First Quarter Results
Page 3
May 5, 2006
Three Months Ended March 31, | ||||||
2006 | 2005 | |||||
Non-interest expense: | ||||||
Salaries and benefits | 1,695 | 1,433 | ||||
Intangible amortization | 95 | 95 | ||||
Occupancy expense | 296 | 224 | ||||
Data processing | 335 | 281 | ||||
State deposit taxes | 115 | 108 | ||||
Advertising expense | 129 | 140 | ||||
Professional services expense | 247 | 160 | ||||
Other operating expenses | 257 | 223 | ||||
Total non-interest expense | 3,169 | 2,664 | ||||
Net income before income taxes | 1,748 | 1,411 | ||||
Federal income tax expense | 547 | 418 | ||||
Net income | $ | 1,201 | $ | 993 | ||
Earnings per share - basic | $ | 0.33 | $ | 0.27 | ||
Earnings per share - diluted | $ | 0.33 | $ | 0.27 | ||
Dividend per share | $ | 0.12 | $ | 0.12 | ||
Weighted average shares outstanding – Basic | 3,649,078 | 3,639,283 | ||||
Weighted average shares outstanding – Diluted | 3,674,320 | 3,667,361 | ||||
As of | ||||||||
March 31, 2006 | December 31, 2005 | |||||||
Total assets | $ | 649,306 | $ | 639,589 | ||||
Loans receivable, gross | 420,303 | 401,314 | ||||||
Securities available for sale | 160,473 | 172,890 | ||||||
Securities held to maturity | 18,140 | 18,183 | ||||||
Allowance for loan losses | 3,968 | 4,004 | ||||||
Total deposits | 474,864 | 482,728 | ||||||
Total borrowings | 108,322 | 93,172 | ||||||
Stockholder’s equity | 49,786 | 49,842 | ||||||
Book value | 13.64 | 13.66 | ||||||
Allowance for loan loss as a percent of gross loans | 0.94 | % | 1.00 | % | ||||
Non performing assets as a percent of assets | 0.17 | % | 0.19 | % | ||||
Non-accrual and 90 days or more past due | ||||||||
Loan as a percent of gross loans | 0.18 | % | 0.25 | % |
-END-