Exhibit 99.1
NEWS
FOR IMMEDIATE RELEASE | CONTACT: | John E. Peck | ||
President and CEO | ||||
(270) 885-1171 |
HOPFED BANCORP REPORTS FOURTH QUARTER RESULTS
HOPKINSVILLE, Ky. (January 24, 2008) – HopFed Bancorp, Inc. (NASDAQ: HFBC) (the “Company”) today reported results for the fourth quarter and the twelve month period ended December 31, 2007. Net income for the fourth quarter ended December 31, 2007, was $961,000, or $0.28 per share basic and $0.27 per share diluted, compared with net income of $846,000, or $0.25 per share basic and diluted for the fourth quarter in 2006. Net income for the twelve months ended December 31, 2007, was $4,116,000, or $1.15 per share basic and $1.14 per share diluted, compared with net income of $3,908,000, or $1.08 per share basic and $1.07 per share diluted, for the twelve months ended December 31, 2006.
Commenting on fourth quarter and full year results, John E. Peck, President and Chief Executive Officer stated, “Despite a difficult operating environment, the Company’s year to date net income increased by more than $200,000. The Company’s improved net income occurred as management embarked on an ambitious plan to enhance its market presence in new growth markets. The Company’s network of branches has increased from nine to eighteen in the last eighteen months. By February 2008, the Company’s ATM network will include sixty-four locations in eighteen counties in Western Kentucky and Middle Tennessee as compared to eleven ATM locations in eight Western Kentucky counties just two years before. This expansion of the Company’s retail network is largely complete. The Company’s improved infrastructure will provide a strong platform for increasing its penetration in both its new and legacy markets
Commenting further, Mr. Peck stated, “In 2007, financial institutions have suffered from serious credit quality issues in both their loan and investment portfolios. The Company’s long standing focus on strong loan underwriting standards combined with the knowledge and service that only a community bank can provide has allowed the Company to grow its loan portfolio while maintaining a reasonable risk profile. Asset quality remains impressive as the Company’s non-performing asset ratio is 0.11%, non-accrual loans represent a total of 0.09% of total loans and the Company’s balance in its allowance for loan loss is more than eight times greater than the amount of our non-performing assets. In 2007, the Company’s net charge off ratio was 0.11%.
“In addition, at December 31, 2007, total assets increased to $808.4 million compared with $770.9 million at December 31, 2006, deposits increased to $598.8 million compared with $569.4 million at December 31, 2006, while net loans increased to $576.3 million compared with $495.0 million at December 31, 2006.”
HopFed Bancorp, Inc. is a holding company for Heritage Bank headquartered in Hopkinsville, Kentucky. The Bank has eighteen 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 24, 2008
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 | |||||||
2007 | 2006 | 2007 | 2006 | |||||
EARNINGS SUMMARY | ||||||||
Interest income on loans | 10,589 | 9,099 | 40,719 | 31,861 | ||||
Interest income on taxable investments | 1,680 | 2,065 | 7,283 | 7,935 | ||||
Interest income on non-taxable investments | 137 | 125 | 511 | 526 | ||||
Interest income on time deposits | 173 | 243 | 520 | 346 | ||||
Total interest income | 12,579 | 11,532 | 49,033 | 40,668 | ||||
Interest expense on deposits | 5,794 | 5,060 | 22,278 | 16,905 | ||||
Interest expense on subordinated debentures | 186 | 192 | 773 | 734 | ||||
Interest expense on repurchase agreements | 432 | 271 | 1,411 | 628 | ||||
Interest expense on borrowed funds | 1,170 | 1,390 | 4,429 | 5,021 | ||||
Total interest expense | 7,582 | 6,913 | 28,891 | 23,288 | ||||
Net interest income | 4,997 | 4,619 | 20,142 | 17,380 | ||||
Provision for loan loss | 275 | 294 | 977 | 1,023 | ||||
Net interest income after provision for loan losses | 4,722 | 4,325 | 19,165 | 16,357 | ||||
Non-interest income | ||||||||
Gain on sale of investments | 6 | 9 | 6 | 51 | ||||
Gain on sale of loans | 16 | 31 | 98 | 141 | ||||
Service charges | 1,137 | 996 | 4,105 | 3,322 | ||||
Merchant card income | 133 | 123 | 494 | 319 | ||||
Income from financial services | 261 | 290 | 1,140 | 732 | ||||
Income from Bank owned life insurance | 55 | 63 | 302 | 263 | ||||
Other income | 239 | 242 | 1,086 | 937 | ||||
Total non-interest income | 1,847 | 1,754 | 7,231 | 5,765 |
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HFBC Reports Fourth Quarter Results
Page 3
January 24, 2008
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 | |||||||||||
2007 | 2006 | 2007 | 2006 | |||||||||
Non-interest expense: | ||||||||||||
Salaries and benefits | $ | 2,692 | $ | 2,412 | $ | 10,619 | $ | 8,280 | ||||
Occupancy expense | 727 | 591 | 2,672 | 1,726 | ||||||||
Data processing expense | 491 | 444 | 1,850 | 1,556 | ||||||||
State deposit tax expense | 93 | 119 | 504 | 465 | ||||||||
Intangible amortization | 258 | 240 | 963 | 670 | ||||||||
Advertising expense | 264 | 206 | 1,005 | 761 | ||||||||
Professional services expense | 299 | 387 | 1,412 | 1,496 | ||||||||
Postage and communication expense | 152 | 127 | 550 | 432 | ||||||||
Office supplies expense | 80 | 111 | 350 | 374 | ||||||||
Other operating expenses | 75 | 200 | 581 | 754 | ||||||||
Total non-interest expense | 5,131 | 4,837 | 20,506 | 16,514 | ||||||||
Net income before income taxes | 1,438 | 1,242 | 5,890 | 5,608 | ||||||||
Income tax expense | 477 | 396 | 1,774 | 1,700 | ||||||||
Net income | 961 | 846 | 4,116 | 3,908 | ||||||||
Earnings per share, basic | $ | 0.28 | $ | 0.25 | $ | 1.15 | $ | 1.08 | ||||
Earnings per share, diluted | $ | 0.27 | $ | 0.25 | $ | 1.14 | $ | 1.07 | ||||
Dividends per share | $ | 0.12 | $ | 0.12 | $ | 0.48 | $ | 0.48 | ||||
Weighted average shares outstanding, basic | 3,571,547 | 3,621,572 | 3,588,163 | 3,634,138 | ||||||||
Weighted average shares outstanding, diluted | 3,594,587 | 3,647,419 | 3,607,870 | 3,659,666 | ||||||||
As of | ||||||||
December 31, 2007 | December 31, 2006 | |||||||
Total assets | $ | 808,352 | $ | 770,888 | ||||
Loans receivable, gross | 581,094 | 499,438 | ||||||
Allowance for loan losses | 4,842 | 4,470 | ||||||
Securities available for sale | 142,310 | 183,339 | ||||||
Securities held to maturity | 14,095 | 18,018 | ||||||
Required investment in FHLB stock | 3,836 | 3,639 | ||||||
Total deposits | 598,753 | 569,433 | ||||||
Total FHLB borrowings | 101,882 | 113,621 | ||||||
Repurchase agreements | 37,199 | 21,236 | ||||||
Stockholders’ equity | 55,804 | 52,270 | ||||||
Book value | $ | 15.54 | $ | 14.42 | ||||
Allowance for loan loss / Gross loans | 0.83 | % | 0.90 | % | ||||
Allowance for loan loss / nonperforming assets | 885.82 | % | 517.96 | % | ||||
Non-performing assets / Total assets | 0.11 | % | 0.16 | % | ||||
Non-accrual loans / Total loans | 0.09 | % | 0.17 | % | ||||
Tax equivalent net yield on average interest earning assets | 2.89 | % | 2.71 | % |
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