Exhibit 99.1
NEWS
FOR IMMEDIATE RELEASE | CONTACT: | John E. Peck | ||
President and CEO | ||||
(270) 887-2999 |
HOPFED BANCORP REPORTS SECOND QUARTER RESULTS
HOPKINSVILLE, Ky. (August 3, 2006) – HopFed Bancorp, Inc. (NASDAQ: HFBC) (the “Company”) today reported results for the second quarter and the six-month period ended June 30, 2006. Net income for the second quarter ended June 30, 2006, was $849,000, or $0.23 per share diluted, compared to $1,065,000, or $0.29 per share diluted, for the second quarter in 2005. Net income for the six months ended June 30, 2006, was $2,050,000, or $0.56 per share diluted, compared with $2,058,000, or $0.56 per share diluted, for the six months ended June 30, 2005.
Commenting on the second quarter results, John E. Peck, president and chief executive officer, said, “For the first six months in 2006, the Company’s pre-acquisition loan portfolio growth was over $40 million, or 10%. Furthermore, the Company continues to grow its non-interest income. Excluding gains on the sale of investments, non-interest income for the six-month period ending June 30, 2006 increased approximately $350,000, or 18%, as compared to the same period in 2005. Improvements in this area have been fueled by increased deposit fee income, fees associated with loan production and income generated by the addition of a full service mortgage origination business in April 2006.
“The Company is excited about its recent acquisitions of four offices in Middle Tennessee. Three of the offices lie within the fast growing Nashville Metropolitan Statistical Area and all four provide a highly desirable mix of loans and core deposits. The Company’s second quarter and year to date results included a $307,000 charge for expenses related to the acquisition of these offices. Net of taxes, this charge reduced net income for the second quarter and six-month period ended June 30, 2006 by approximately $210,000, or $0.05 per share diluted.
“The Company’s net interest margin has improved slightly over the same period last year but has declined in the last three months due to an increasingly flat yield curve, competitive deposit environment, and increasing reliance on borrowed money.
“In addition, at June 30, 2006, total assets increased to $748.0 million compared with $639.6 million at December 31, 2005, deposits increased to $540.2 million compared with $482.7 million at December 31, 2005, while net loans increased to $472.9 million compared with $397.3 million at December 31, 2005.”
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4155 Lafayette Road, Hopkinsville, KY 42240
HFBC Announces Second Quarter Results
Page 2
August 3, 2006
HopFed Bancorp, Inc. is a holding company for Heritage Bank headquartered in Hopkinsville, Kentucky. The Bank has fourteen offices in western Kentucky and middle Tennessee as well as Fall & Fall Insurance of Fulton, Kentucky, Heritage Solutions of Murray, Kentucky, and Heritage Mortgage Services of Clarksville, Tennessee. 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 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, | |||||||||||
2006 | 2005 | 2006 | 2005 | |||||||||
Earnings Summary | ||||||||||||
Interest income on loans | $ | 7,334 | $ | 5,189 | $ | 14,050 | $ | 10,189 | ||||
Interest income on taxable investments | 1,882 | 1,578 | 3,764 | 3,185 | ||||||||
Interest income on non taxable investments | 128 | 162 | 274 | 370 | ||||||||
Interest income on time deposits | 38 | 7 | 73 | 17 | ||||||||
Total interest income | 9,382 | 6,936 | 18,161 | 13,761 | ||||||||
Interest expense on deposits | 3,854 | 2,699 | 7,380 | 5,268 | ||||||||
Interest on subordinated debentures | 181 | 166 | 348 | 333 | ||||||||
Interest on repurchase agreements | 121 | — | 121 | — | ||||||||
Interest expense on borrowed funds | 1,208 | 699 | 2,211 | 1,381 | ||||||||
Total interest expense | 5,364 | 3,564 | 10,060 | 6,982 | ||||||||
Net interest income | 4,018 | 3,372 | 8,101 | 6,779 | ||||||||
Provision for loan losses | 204 | 300 | 417 | 600 | ||||||||
Net interest income after provision for loan losses | 3,814 | 3,072 | 7,684 | 6,179 | ||||||||
Non-interest income: | ||||||||||||
Income from financial services | 162 | 98 | 253 | 298 | ||||||||
Gain on sale of investments | 19 | 363 | 42 | 363 | ||||||||
Gain on sale of loans | 35 | 54 | 63 | 65 | ||||||||
Service charges | 694 | 566 | 1,274 | 1,096 | ||||||||
Income from bank owned life insurance | 65 | 66 | 130 | 134 | ||||||||
Other | 286 | 164 | 546 | 323 | ||||||||
Total non-interest income | 1,261 | 1,311 | 2,308 | 2,279 | ||||||||
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HFBC Announces Second Quarter Results
Page 3
August 3, 2006
HOPFED BANCORP, INC.
Selected Financial Data
(In thousands, except share, per share and percentages)
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||
2006 | 2005 | 2006 | 2005 | |||||||||
Non-interest expense: | ||||||||||||
Salaries and benefits | 1,827 | 1,447 | 3,522 | 2,880 | ||||||||
Intangible amortization | 95 | 95 | 190 | 190 | ||||||||
Occupancy expense | 363 | 260 | 659 | 484 | ||||||||
Data processing | 322 | 238 | 657 | 519 | ||||||||
Advertising expense | 212 | 199 | 341 | 339 | ||||||||
Professional services expense | 487 | 166 | 734 | 326 | ||||||||
State deposit taxes | 115 | 121 | 230 | 229 | ||||||||
Other operating expenses | 466 | 330 | 723 | 553 | ||||||||
Total non-interest expense | 3,887 | 2,856 | 7,056 | 5,520 | ||||||||
Net income before income taxes | 1,188 | 1,527 | 2,936 | 2,938 | ||||||||
Federal income tax expense | 339 | 462 | 886 | 880 | ||||||||
Net income | $ | 849 | $ | 1,065 | $ | 2,050 | $ | 2,058 | ||||
Earnings per share – basic | $ | 0.23 | $ | 0.29 | $ | 0.56 | $ | 0.57 | ||||
Earnings per share – diluted | $ | 0.23 | $ | 0.29 | $ | 0.56 | $ | 0.56 | ||||
Dividend per share | $ | 0.12 | $ | 0.12 | $ | 0.24 | $ | 0.24 | ||||
Weighted average shares outstanding – Basic | 3,650,279 | 3,640,706 | 3,649,679 | 3,639,999 | ||||||||
Weighted average shares outstanding – Diluted | 3,675,735 | 3,666,305 | 3,675,028 | 3,666,848 | ||||||||
As of | ||||||||
June 30, 2006 | December 31, 2005 | |||||||
Total assets | $ | 748,030 | $ | 639,589 | ||||
Loans receivable, gross | 477,103 | 401,314 | ||||||
Securities available for sale | 170,696 | 172,890 | ||||||
Required investment in FHLB stock | 3,533 | 3,211 | ||||||
Securities held to maturity | 18,096 | 18,183 | ||||||
Allowance for loan losses | 4,189 | 4,004 | ||||||
Total deposits | 540,227 | 482,728 | ||||||
Total borrowings | 154,262 | 103,482 | ||||||
Stockholders’ equity | 49,486 | 49,842 | ||||||
Book value | $ | 13.52 | $ | 13.66 | ||||
Allowance for loan loss / Gross loans | 0.88 | % | 1.00 | % | ||||
Non performing assets / Total assets | 0.15 | % | 0.19 | % | ||||
Non accrual loans / Total loans | 0.14 | % | 0.25 | % |
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