Exhibit 99.1
NEWS
FOR IMMEDIATE RELEASE | CONTACT: | John E. Peck | ||
President and CEO | ||||
(270) 887-2999 |
HOPFED BANCORP REPORTS THIRD QUARTER RESULTS
HOPKINSVILLE, Ky. (October 30, 2006) – HopFed Bancorp, Inc. (NASDAQ: HFBC) (the “Company”) today reported results for the third quarter and the nine-month period ended September 30, 2006. Net income for the third quarter ended September 30, 2006, was $1,012,000, or $0.28 per share basic and $0.27 per share diluted, compared with net income of $1,021,000, or $0.28 per share basic and diluted for the third quarter in 2005. Net income for the nine months ended September 30, 2006, was $3,062,000, or $0.84 per share basic and $0.83 diluted, compared with net income of $3,079,000, or $0.85 per share basic and $0.84 per share diluted, for the nine months ended September 30, 2005.
Commenting on the third quarter results, John E. Peck, president and chief executive officer, said, “The Company’s most significant accomplishment in the third quarter was the successful integration of four retail offices acquired in Cheatham and Houston Counties in middle Tennessee on June 29, 2006. These offices provide the Company with a solid foundation to expand further into the Nashville, Tennessee metropolitan statistical area.
Commenting further, Mr. Peck stated, “The Company’s year to date net income is relatively unchanged over the previous year, which was significantly influenced by gains on the sale of investments experienced in April of 2005. The Company continues to see an improvement in non-interest income from service charges on loans and deposits. The Company continues to experience challenges in gathering deposits to meet commercial loan demand, which remains strong. As a result, interest rate margins remain under pressure. The Company is utilizing numerous sources to fund loan demand, including Federal Home Loan Bank advances, brokered deposits, and public funds. The Company continues to expand its network of retail offices and ATM to take advantage of current and future growth opportunities and to enhance its ability to growth demand deposit accounts.
“In addition, at September 30, 2006, total assets increased to $759.1 million compared with $639.6 million at December 31, 2005, deposits increased to $552.4 million compared with $482.7 million at December 31, 2005, while net loans increased to $487.6 million compared with $397.3 million at December 31, 2005.”
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, 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.
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4155 Lafayette Road, Hopkinsville, KY 42240
HFBC Reports Third Quarter Results
Page 2
October 30, 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
(Dollars in thousands, except share and per share data)
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||
2006 | 2005 | 2006 | 2005 | |||||||||
Earnings Summary | ||||||||||||
Interest income on loans | $ | 8,712 | $ | 5,634 | $ | 22,762 | $ | 15,823 | ||||
Interest income on taxable investments | 2,106 | 1,772 | 5,870 | 4,957 | ||||||||
Interest income on non taxable investments | 127 | 147 | 401 | 517 | ||||||||
Interest income on time deposits | 30 | 63 | 103 | 80 | ||||||||
Total interest income | 10,975 | 7,616 | 29,136 | 21,377 | ||||||||
Interest expense on deposits | 4,465 | 3,157 | 11,845 | 8,425 | ||||||||
Interest on subordinated debentures | 194 | 174 | 542 | 507 | ||||||||
Interest on repurchase agreements | 236 | — | 357 | — | ||||||||
Interest on borrowed funds | 1,420 | 686 | 3,631 | 2,067 | ||||||||
Total interest expense | 6,315 | 4,017 | 16,375 | 10,999 | ||||||||
Net interest income | 4,660 | 3,599 | 12,761 | 10,378 | ||||||||
Provision for loan losses | 312 | 300 | 729 | 900 | ||||||||
Net interest income after provision for loan losses | 4,348 | 3,299 | 12,032 | 9,478 | ||||||||
Non-interest income: | ||||||||||||
Gain on sale of investments | — | 16 | 42 | 379 | ||||||||
Gain on sale of loans | 47 | 45 | 110 | 110 | ||||||||
Service charges | 1,052 | 498 | 2,326 | 1,594 | ||||||||
Income from financial services | 189 | 121 | 442 | 419 | ||||||||
Income from Bank owned life insurance | 70 | 62 | 200 | 196 | ||||||||
Other | 345 | 228 | 891 | 551 | ||||||||
Total non-interest income | 1,703 | 970 | 4,011 | 3,249 | ||||||||
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HFBC Reports Third Quarter Results
Page 3
October 30, 2006
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, | |||||||||||
2006 | 2005 | 2006 | 2005 | |||||||||
Non-interest expense: | ||||||||||||
Salaries and benefits | 2,346 | 1,491 | 5,868 | 4,371 | ||||||||
Intangible amortization | 240 | 94 | 430 | 284 | ||||||||
Occupancy expense | 476 | 236 | 1,135 | 720 | ||||||||
Data processing | 455 | 302 | 1,112 | 821 | ||||||||
State deposit taxes | 116 | 125 | 346 | 354 | ||||||||
Advertising expense | 214 | 151 | 555 | 490 | ||||||||
Professional services expense | 375 | 181 | 1,109 | 507 | ||||||||
Other operating expenses | 399 | 218 | 1,122 | 771 | ||||||||
Total non-interest expense | 4,621 | 2,798 | 11,677 | 8,318 | ||||||||
Net income before income taxes | 1,430 | 1,471 | 4,366 | 4,409 | ||||||||
Federal income tax expense | 418 | 450 | 1,304 | 1,330 | ||||||||
Net income | 1,012 | 1,021 | 3,062 | 3,079 | ||||||||
Earnings per share - basic | $ | 0.28 | $ | 0.28 | $ | 0.84 | $ | 0.85 | ||||
Earnings per share - diluted | $ | 0.27 | $ | 0.28 | $ | 0.83 | $ | 0.84 | ||||
Dividend per share | $ | 0.12 | $ | 0.12 | $ | 0.36 | $ | 0.36 | ||||
Weighted average shares outstanding - Basic | 3,660,109 | 3,647,917 | 3,653,310 | 3,642,667 | ||||||||
Weighted average shares outstanding - Diluted | 3,685,601 | 3,672,394 | 3,678,731 | 3,668,724 | ||||||||
As of | ||||||||
September 30, 2006 | December 31, 2005 | |||||||
Total assets | $ | 759,072 | $ | 639,589 | ||||
Loans, receivable, gross | 491,950 | 401,314 | ||||||
Securities available for sale | 174,742 | 172,890 | ||||||
Required investment in FHLB stock | 3,585 | 3,211 | ||||||
Securities held to maturity | 18,066 | 18,183 | ||||||
Allowance for loan losses | 4,349 | 4,004 | ||||||
Total deposits | 552,393 | 482,728 | ||||||
Total borrowings | 125,527 | 103,482 | ||||||
Stockholder’s equity | 52,207 | 49,842 | ||||||
Book value | $ | 14.26 | $ | 13.66 | ||||
Allowance for loan loss/Gross loans | 0.88 | % | 1.00 | % | ||||
Non performing assets/Total assets | 0.15 | % | 0.19 | % | ||||
Non accrual or 90 days past due/Total loans | 0.16 | % | 0.25 | % |
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