Exhibit 99.1
NEWS
FOR IMMEDIATE RELEASE | CONTACT: | John E. Peck | ||||
| President and CEO | ||||||
| (270) 887-2999 |
HOPFED BANCORP REPORTS FOURTH QUARTER RESULTS
HOPKINSVILLE, Ky. (January 31, 2007) – HopFed Bancorp, Inc. (NASDAQ: HFBC) (the “Company”) today reported results for the fourth quarter and the twelve month period ended December 31, 2006. Net income for the fourth quarter ended December 31, 2006, was $895,000, or $0.25 per share basic and diluted, compared with net income of $1,051,000, or $0.29 per share basic and $0.28 per share diluted for the fourth quarter in 2005. Net income for the twelve months ended December 31, 2006, was $3,957,000, or $1.09 per share basic and $1.08 per share diluted, compared with net income of $4,130,000, or $1.13 per share basic and $1.13 per share diluted, for the twelve months ended December 31, 2005.
Commenting on fourth quarter and full year results, John E. Peck, President and Chief Executive Officer stated, “For 2006, the Company’s year to date net income declined $173,000 from the previous year. This decline was influenced by a $328,000 gain on the sale of the Company’s data processing provider in 2005. Despite a very difficult interest rate environment, the Company’s net interest margin improved during the year. Asset quality remains impressive as the Company’s non-performing asset ratio is 0.15% and commercial loan demand is strong.”
Commenting further, Mr. Peck stated, “In 2006, the Company’s focus has been on establishing a market presence in new, fast growing markets. This growth has resulted in an increase in many operating expenses, including intangible amortization, salaries and facilities expense. However, the Company believes its long-term future rest with its ability to participate in the economic growth of the entire region. Therefore, the Company has decided to establish a retail-banking network in areas with the highest growth prospects. The Company’s expansion into new markets is almost complete. On December 15, 2006, the Company opened its first retail banking office in Clarksville, Tennessee, and plans on opening two more offices late in the second quarter. The Company’s purchase of four offices from AmSouth in June 2006 has resulted in improved levels of liquidity and non-interest income.
“In addition, at December 31, 2006, total assets increased to $770.9 million compared with $639.6 million at December 31, 2005, deposits increased to $569.4 million compared with $482.7 million at December 31, 2005, while net loans increased to $495.0 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 fifteen offices in western Kentucky and Middle Tennessee, Fall & Fall Insurance of Fulton, Kentucky, Heritage Solutions located in Murray, Kentucky, and Dickson, Tennessee, 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 Fourth Quarter Results
Page 2
January 31, 2007
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 December 31, | Twelve Months Ended December 31, | |||||||||||
| 2006 | 2005 | 2006 | 2005 | |||||||||
Earnings Summary | ||||||||||||
Interest income on loans | $ | 9,099 | $ | 6,183 | $ | 31,861 | $ | 22,006 | ||||
Interest income on taxable investments | 2,065 | 1,911 | 7,935 | 6,868 | ||||||||
Interest income on non taxable investments | 125 | 156 | 526 | 673 | ||||||||
Interest income on time deposits | 243 | 39 | 346 | 119 | ||||||||
Total interest income | 11,532 | 8,289 | 40,668 | 29,666 | ||||||||
Interest expense on deposits | 5,060 | 3,484 | 16,905 | 11,909 | ||||||||
Interest on subordinated debentures | 192 | 173 | 734 | 680 | ||||||||
Interest on repurchase agreements | 196 | — | 553 | — | ||||||||
Interest on borrowed funds | 1,390 | 818 | 5,021 | 2,885 | ||||||||
Total interest expense | 6,838 | 4,475 | 23,213 | 15,474 | ||||||||
Net interest income | 4,694 | 3,814 | 17,455 | 14,192 | ||||||||
Provision for loan losses | 294 | 350 | 1,023 | 1,250 | ||||||||
Net interest income after provision for loan losses | 4,400 | 3,464 | 16,432 | 12,942 | ||||||||
Non-interest income: | ||||||||||||
Gain on sale of investments | 9 | — | 51 | 379 | ||||||||
Gain on sale of loans | 31 | 28 | 141 | 138 | ||||||||
Service charges | 996 | 868 | 3,322 | 2,462 | ||||||||
Income from financial services | 290 | 79 | 732 | 498 | ||||||||
Income from Bank owned life insurance | 63 | 64 | 263 | 260 | ||||||||
Other | 365 | 249 | 1,256 | 795 | ||||||||
Total non-interest income | 1,754 | 1,288 | 5,765 | 4,532 | ||||||||
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HFBC Reports Fourth Quarter Results
Page 3
January 31, 2007
HOPFED BANCORP, INC.
Selected Financial Data
(Dollars in thousands, except share and per share data)
| Three Months Ended December 31, | Twelve Months Ended December 31, | |||||||||||
| 2006 | 2005 | 2006 | 2005 | |||||||||
Non-interest expense: | ||||||||||||
Salaries and benefits | $ | 2,412 | $ | 1,535 | $ | 8,280 | $ | 5,906 | ||||
Occupancy expense | 591 | 318 | 1,726 | 1,038 | ||||||||
Data processing expense | 444 | 294 | 1,556 | 1,115 | ||||||||
State deposit tax expense | 119 | 83 | 465 | 437 | ||||||||
Intangible amortization | 240 | 94 | 670 | 378 | ||||||||
Advertising expense | 206 | 130 | 761 | 620 | ||||||||
Professional services expense | 387 | 334 | 1,496 | 855 | ||||||||
Other operating expenses | 438 | 493 | 1,560 | 1,251 | ||||||||
Total non-interest expense | 4,837 | 3,281 | 16,514 | 11,600 | ||||||||
Net income before income taxes | 1,317 | 1,471 | 5,683 | 5,874 | ||||||||
Income tax expense | 422 | 420 | 1,726 | 1,744 | ||||||||
Net income | 895 | 1,051 | 3,957 | 4,130 | ||||||||
Earnings per share—basic | $ | 0.25 | $ | 0.29 | $ | 1.09 | $ | 1.13 | ||||
Earnings per share—diluted | $ | 0.25 | $ | 0.28 | $ | 1.08 | $ | 1.13 | ||||
Dividend per share | $ | 0.12 | $ | 0.12 | $ | 0.48 | $ | 0.48 | ||||
Weighted average shares outstanding—Basic | 3,621,572 | 3,648,670 | 3,634,138 | 3,644,178 | ||||||||
Weighted average shares outstanding—Fully diluted | 3,647,419 | 3,673,565 | 3,659,666 | 3,669,918 | ||||||||
| As of | ||||||||
| December 31, 2006 | December 31, 2005 | |||||||
Total assets | $ | 770,888 | $ | 639,589 | ||||
Loans, receivable, gross | 499,438 | 401,314 | ||||||
Securities available for sale | 183,339 | 172,890 | ||||||
Required investment in FHLB stock | 3,639 | 3,211 | ||||||
Securities held to maturity | 18,018 | 18,183 | ||||||
Allowance for loan losses | 4,470 | 4,004 | ||||||
Total deposits | 569,432 | 482,728 | ||||||
Total borrowings | 123,931 | 103,482 | ||||||
Stockholder’s equity | 52,319 | 49,842 | ||||||
Book value | $ | 14.42 | $ | 13.66 | ||||
Allowance for loan loss/Gross loans | 0.89 | % | 1.00 | % | ||||
Non performing assets/Total assets | 0.15 | % | 0.19 | % | ||||
Non accrual or 90 days past due/Total loans | 0.14 | % | 0.25 | % | ||||
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