Exhibit 99.1
NEWS
FOR IMMEDIATE RELEASE | CONTACT: | John E. Peck | ||
President and CEO | ||||
(270) 887-2999 |
HOPFED BANCORP, INC. REPORTS FIRST QUARTER RESULTS
HOPKINSVILLE, Ky. (April 30, 2007) – HopFed Bancorp, Inc. (NASDAQ: HFBC) (the “Company”) today reported results for the first quarter ended March 31, 2007. Net income for the first quarter ended March 31, 2007, was $1,022,000, or $0.28 per share (basic and diluted), compared with net income of $1,201,000, or $0.33 per share (basic and diluted), for the first quarter in 2006.
Commenting on the first quarter results, John E. Peck, president and chief executive officer, said, “The Company’s net interest margin has stabilized despite a difficult rate environment as cash flow from the securities portfolio is being used to fund both loan growth and to reduce the Company’s level of Federal Home Loan Bank borrowings. Both loan and deposit growth are ahead of the Company’s projections and the loan pipeline remains robust. Non-interest income was strong due to the performance of Heritage Mortgage Services and Heritage Solutions as well as higher service charge income resulting from an increase in demand deposit accounts.”
Mr. Peck continued, “We are excited about the opening of two new banking offices in Clarksville, Tennessee. In April 2007, the Company opened its second office at 2185 Madison Street. The Company will open its third Clarksville office at 322 Main Street in July 2007. In the last twelve months, the Company’s infrastructure has been enhanced by increasing the number of banking offices from nine to sixteen, adding 24 ATM locations and the implementation of new products for both consumer and business customers. These infrastructure improvements provide the Company with the opportunity to participate in the economic growth of both Clarksville, Tennessee, and the communities surrounding Nashville, Tennessee. These communities represent some of the fastest growing communities in middle Tennessee and the Company believes that its growing presence in these markets will enhance both its future financial performance and shareholder value.
“In addition, at March 31, 2007, total assets decreased slightly to $770.2 million compared with $770.9 million at December 31, 2006, deposits increased to $584.0 million compared with $569.4 million at December 31, 2006, while net loans increased to $505.4 million compared with $495.0 million at December 31, 2006. Federal Home Loan Bank borrowings have decreased to $89.1 million at March 31, 2007, compared to $113.6 million at December 31, 2006. The Company’s ratio of loans past due more than thirty days is 0.33% of total loans. Asset quality benefits from strong underwriting standards and the absence of any present or past sub-prime lending programs.”
HopFed Bancorp, Inc. is the holding company for Heritage Bank headquartered in Hopkinsville, Kentucky. The Bank has sixteen offices in western Kentucky and middle Tennessee as well as Fall & Fall Insurance of Fulton, Kentucky, Heritage Solutions of 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.
HFBC Announces First Quarter Results
Page 2
April 30, 2007
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, | ||||||
2007 | 2006 | |||||
Earnings Summary | ||||||
Interest income on loans | $ | 9,520 | $ | 6,716 | ||
Interest income on taxable investments | 1,967 | 1,882 | ||||
Interest income on non taxable investments | 122 | 146 | ||||
Interest income on time deposits | 171 | 35 | ||||
Total interest income | 11,780 | 8,779 | ||||
Interest expense on deposits | 5,320 | 3,526 | ||||
Interest expense on subordinated debentures | 187 | 167 | ||||
Interest expense on repurchase agreements | 248 | — | ||||
Interest expense on FHLB advances | 1,101 | 1,003 | ||||
Total interest expense | 6,856 | 4,696 | ||||
Net interest income | 4,924 | 4,083 | ||||
Provision for loan losses | 240 | 213 | ||||
Net interest income after provision for loan losses | 4,684 | 3,870 | ||||
Non-interest income: | ||||||
Income from financial services | 301 | 91 | ||||
Gain on sale of investments | — | 23 | ||||
Gain on sale of loans | 27 | 28 | ||||
Service charges | 892 | 580 | ||||
Income from bank owned life insurance | 93 | 65 | ||||
Income from office rental | 43 | 1 | ||||
Merchant card income | 119 | 59 | ||||
Other | 266 | 200 | ||||
Total non-interest income | 1,741 | 1,047 | ||||
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HFBC Announces First Quarter Results
Page 3
April 30, 2007
Three Months Ended March 31, | ||||||
2007 | 2006 | |||||
Non-interest expense: | ||||||
Salaries and benefits | $ | 2,589 | $ | 1,695 | ||
Intangible amortization | 241 | 95 | ||||
Occupancy expense | 613 | 296 | ||||
Data processing | 430 | 335 | ||||
State deposit taxes | 128 | 115 | ||||
Advertising expense | 253 | 129 | ||||
Professional services expense | 370 | 247 | ||||
Postage and telephone expense | 126 | 91 | ||||
Office supplies expense | 102 | 52 | ||||
Other operating expenses | 136 | 114 | ||||
Total non-interest expense | 4,988 | 3,169 | ||||
Net income before income taxes | 1,437 | 1,748 | ||||
Income tax expense | 415 | 547 | ||||
Net income | $ | 1,022 | $ | 1,201 | ||
Earnings per share—basic | $ | 0.28 | $ | 0.33 | ||
Earnings per share—diluted | $ | 0.28 | $ | 0.33 | ||
Dividend per share | $ | 0.12 | $ | 0.12 | ||
Weighted average shares outstanding – Basic | 3,629,520 | 3,649,078 | ||||
Weighted average shares outstanding – Diluted | 3,654,726 | 3,674,320 | ||||
As of | ||||||||
March 31, 2007 | December 31, 2006 | |||||||
Total assets | $ | 770,245 | $ | 770,888 | ||||
Loans receivable, gross | 509,982 | 499,438 | ||||||
Securities available for sale | 169,030 | 183,339 | ||||||
Securities held to maturity | 17,985 | 18,018 | ||||||
Federal Home Loan Bank stock, at cost | 3,696 | 3,639 | ||||||
Allowance for loan losses | 4,579 | 4,470 | ||||||
Total deposits | 583,975 | 569,433 | ||||||
FHLB borrowings | 89,065 | 113,621 | ||||||
Repurchase agreements | 28,513 | 21,236 | ||||||
Stockholder’s equity | 53,137 | 52,270 | ||||||
Book value per share | $ | 14.69 | $ | 14.41 | ||||
Allowance for loan loss as a percent of gross loans | 0.90 | % | 0.90 | % | ||||
Non performing assets as a percent of assets | 0.15 | % | 0.16 | % | ||||
Non-accrual and 90 days or more past due | ||||||||
Loan as a percent of gross loans | 0.16 | % | 0.17 | % | ||||
Net yield on interest earning assets | 2.88 | % | 2.72 | % |
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