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 24, 2007) – HopFed Bancorp, Inc. (NASDAQ: HFBC) (the “Company”) today reported results for the three and nine-month periods ended September 30, 2007. Net income for the third quarter ended September 30, 2007, was $1,025,000, or $0.29 per share basic and $0.28 per share diluted, compared to $1,012,000, or $0.28 per share (basic and diluted), for the third quarter in 2006. Net income for the nine months ended September 30, 2007, was $3,155,000, or $0.87 per share (basic and diluted), compared with $3,062,000, or $0.84 per share (basic and diluted), for the nine months ended September 30, 2006.
Commenting on the third quarter and year to date results, John E. Peck, president and chief executive officer, said, “For the three and nine month periods ended September 30, 2007, the Company’s loan portfolio grew by more than $27.2 million and $63.2 million, respectively. Providing funding for third quarter loan growth resulted in five basis point reduction in the Company’s year to date net interest margin as compared to the second quarter 2007. However, the Company’s net interest margin remains twenty-two basis points higher as compared to the net interest margin for the year ended December 31, 2006.”
Mr. Peck continued, “For the first nine months in 2007, non-interest income increased $1.4 million compared to the same period last year. This growth is the result of a number of factors, the most important being an increase in service charge and merchant card income, increasing by almost $800,000 in 2007 over the same period in 2006. For the first nine months in 2007, the Company’s fee income from its financial services division increased by more than $400,000 as compared to the first nine months in 2006.
“In addition, the Company’s three retail locations in Clarksville, Tennessee and one new retail location in Murray, Kentucky have been well received by both new and current customers. The Company’s growth has largely been fueled by the addition of new retail locations in both new and current markets. The Company has completed its immediate goals for expanding its retail presence. Management believes that the Company’s current infrastructure is sufficient to accommodate significant organic growth.”
HopFed Bancorp, Inc. is a 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.
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 September 30, | Nine Months Ended September 30, | |||||||||||
2007 | 2006 | 2007 | 2006 | |||||||||
Earnings Summary | ||||||||||||
Interest income on loans | $ | 10,397 | $ | 8,712 | $ | 30,130 | $ | 22,762 | ||||
Interest income on taxable investments | 1,772 | 2,106 | 5,603 | 5,870 | ||||||||
Interest income on non taxable investments | 129 | 127 | 374 | 401 | ||||||||
Interest income on time deposits | 93 | 30 | 347 | 103 | ||||||||
Total interest income | 12,391 | 10,975 | 36,454 | 29,136 | ||||||||
Interest expense on deposits | 5,635 | 4,465 | 16,484 | 11,845 | ||||||||
Interest on subordinated debentures | 192 | 194 | 587 | 542 | ||||||||
Interest on repurchase agreements | 402 | 236 | 979 | 357 | ||||||||
Interest expense on borrowed funds | 1,145 | 1,420 | 3,259 | 3,631 | ||||||||
Total interest expense | 7,374 | 6,315 | 21,309 | 16,375 | ||||||||
Net interest income | 5,017 | 4,660 | 15,145 | 12,761 | ||||||||
Provision for loan losses | 224 | 312 | 702 | 729 | ||||||||
Net interest income after provision for loan losses | 4,793 | 4,348 | 14,443 | 12,032 | ||||||||
Non-interest income: | ||||||||||||
Income from financial services | 293 | 189 | 879 | 442 | ||||||||
Gain on sale of investments | — | — | — | 42 | ||||||||
Gain on sale of loans | 30 | 47 | 82 | 110 | ||||||||
Service charges | 1,076 | 1,052 | 2,968 | 2,326 | ||||||||
Income from bank owned life insurance | 77 | 70 | 247 | 200 | ||||||||
Merchant card income | 125 | 103 | 361 | 217 | ||||||||
Other | 276 | 242 | 847 | 674 | ||||||||
Total non-interest income | 1,877 | 1,703 | 5,384 | 4,011 | ||||||||
HOPFED BANCORP, INC.
Selected Financial Data
(In thousands, except share, per share and percentages)
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||
2007 | 2006 | 2007 | 2006 | |||||||||
Non-interest expense: | ||||||||||||
Salaries and benefits | 2,729 | 2,346 | 7,927 | 5,868 | ||||||||
Intangible amortization | 224 | 240 | 705 | 430 | ||||||||
Occupancy expense | 684 | 476 | 1,945 | 1,135 | ||||||||
Data processing | 477 | 455 | 1,359 | 1,112 | ||||||||
Advertising expense | 236 | 214 | 741 | 555 | ||||||||
Professional services expense | 337 | 375 | 1,113 | 1,109 | ||||||||
State deposit taxes | 145 | 116 | 411 | 346 | ||||||||
Postage and communications expense | 150 | 122 | 398 | 305 | ||||||||
Office supplies expense | 87 | 126 | 270 | 263 | ||||||||
Other operating expenses | 165 | 151 | 506 | 554 | ||||||||
Total non-interest expense | 5,234 | 4,621 | 15,375 | 11,677 | ||||||||
Net income before income taxes | 1,436 | 1,430 | 4,452 | 4,366 | ||||||||
Income tax expense | 411 | 418 | 1,297 | 1,304 | ||||||||
Net income | $ | 1,025 | $ | 1,012 | $ | 3,155 | $ | 3,062 | ||||
Earnings per share – basic | $ | 0.29 | $ | 0.28 | $ | 0.87 | $ | 0.84 | ||||
Earnings per share – diluted | $ | 0.28 | $ | 0.28 | $ | 0.87 | $ | 0.84 | ||||
Dividend per share | 0.12 | $ | 0.12 | $ | 0.36 | $ | 0.36 | |||||
Weighted average shares outstanding – Basic | 3,584,053 | 3,637,288 | 3,607,870 | 3,634,362 | ||||||||
Weighted average shares outstanding – Diluted | 3,607,093 | 3,663,883 | 3,628,455 | 3,656,872 | ||||||||
As of | ||||||||
September 30, 2007 | December 31, 2006 | |||||||
Total assets | $ | 796,406 | $ | 770,888 | ||||
Loans receivable, gross | 562,916 | 499,438 | ||||||
Securities available for sale | 139,525 | 183,339 | ||||||
Required investment in FHLB stock | 3,836 | 3,639 | ||||||
Securities held to maturity | 17,918 | 18,018 | ||||||
Allowance for loan losses | 4,840 | 4,470 | ||||||
Total deposits | 582,262 | 569,433 | ||||||
Total borrowings | 112,590 | 113,621 | ||||||
Stockholders’ equity | 54,450 | 52,270 | ||||||
Repurchase agreements | 41,722 | 21,236 | ||||||
Book value | $ | 15.12 | $ | 14.41 | ||||
Allowance for loan loss / Gross loans | 0.86 | % | 0.90 | % | ||||
Non performing assets / Total assets | 0.14 | % | 0.16 | % | ||||
Non accrual loans / Total loans | 0.13 | % | 0.17 | % | ||||
Tax equivalent net yield on interest earning assets | 2.93 | % | 2.71 | % |