EXHIBIT 99.1
NEWS
| FOR IMMEDIATE RELEASE | CONTACT: | John E. Peck | ||||
| President and CEO | ||||||
| (270) 885-1171 |
HOPFED BANCORP, INC. REPORTS FIRST QUARTER RESULTS
HOPKINSVILLE, Ky. (April 23, 2008) – HopFed Bancorp, Inc. (NASDAQ: HFBC) (the “Company”) today reported results for the first quarter ended March 31, 2008. Net income for the first quarter ended March 31, 2008, was $1,492,000, or $0.42 per share (basic and diluted), compared with net income of $1,022,000, or $0.28 per share (basic and diluted), for the first quarter ended March 31, 2007.
Commenting on the first quarter results, John E. Peck, president and chief executive officer, said, “The Company’s net interest margin improved during the quarter as we were able to reduce our cost of liabilities without experiencing a reduction in total deposits. For the three months ended March 31, 2008, the Company’s net interest margin was 3.05%, as compared to 2.89% for the twelve months ended December 31, 2007. Customer demand for deposit services remains robust and the addition of twenty-four cash machines in western Kentucky enhances our visibility in the marketplace. The Company’s loan growth is in line with management’s projections.”
Mr. Peck continued, “The combination of eighteen convenient full service retail locations, 64 cash machines, free online banking with free bill pay and exceptional customer service has resulted in a record growth of new checking account customers. The Bank’s 2008 marketing plan is focused on promoting and growing all deposit accounts, with an emphasis on checking accounts. As a result of these efforts, service charge income in the first quarter of 2008 increased by $175,000 as compared to the first quarter of 2007. Management will continue to focus on improving the Company’s deposit mix, reducing our interest expense while improving our net interest margin and growing non-interest income.”
Commenting on changes in the investment portfolio, Mr. Peck said, “During the first quarter of 2008, the Federal Reserve aggressively reduced the federal funds rate. The reduction in short-term interest rates provided the opportunity for the Company to realize $534,000 in gains on the sales of securities, the vast majority being agency bonds. Coupled with other issues in the credit markets, the Company was able to reinvest these funds into agency mortgage-backed securities at attractive yields.
“In addition, at March 31, 2008, total assets increased to $812.6 million compared with $808.4 million at December 31, 2007, deposits increased to $601.7 million compared with $598.8 million at December 31, 2007, while net loans increased to $585.7 million compared with $576.3 million at December 31, 2007. Federal Home Loan Bank borrowings have decreased to $98.2 million at March 31, 2008, compared to $101.9 million at December 31, 2007.”
HopFed Bancorp, Inc. is the holding company for Heritage Bank headquartered in Hopkinsville, Kentucky. The Bank has eighteen offices in western Kentucky and middle Tennessee as well as Fall & Fall Insurance of Fulton, Kentucky, Heritage Solutions of Murray, Kentucky, Dickson, Tennessee and Pleasant View, 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, P.O. Box 537, Hopkinsville, KY 42241
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, | ||||||
| 2008 | 2007 | |||||
| Earnings Summary | ||||||
Interest income on loans | $ | 10,679 | $ | 9,520 | ||
Interest income on investments, taxable | 1,677 | 1,967 | ||||
Interest income on investments, tax exempt | 164 | 122 | ||||
Interest income on fed funds | 58 | 171 | ||||
Total interest income | 12,578 | 11,780 | ||||
Interest expense on deposits | 5,463 | 5,320 | ||||
Interest expense on subordinated debentures | 161 | 187 | ||||
Interest expense on repurchase agreements | 329 | 248 | ||||
Interest expense on FHLB advances | 1,068 | 1,101 | ||||
Total interest expense | 7,021 | 6,856 | ||||
Net interest income | 5,557 | 4,924 | ||||
Provision for loan losses | 401 | 240 | ||||
Net interest income after provision for loan losses | 5,156 | 4,684 | ||||
Non-interest income: | ||||||
Income from financial services | 240 | 301 | ||||
Gain on sale of investments | 534 | — | ||||
Gain on sale of loans | 64 | 27 | ||||
Service charges | 1,067 | 892 | ||||
Income from bank owned life insurance | 68 | 93 | ||||
Merchant card income | 132 | 119 | ||||
Other | 299 | 309 | ||||
Total non-interest income | 2,404 | 1,741 | ||||
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HFBC Announces First Quarter Results
Page 3
April 23, 2008
| Three Months Ended March 31, | ||||||
| 2008 | 2007 | |||||
Non-interest expense: | ||||||
Salaries and benefits | $ | 2,901 | $ | 2,589 | ||
Intangible amortization | 220 | 241 | ||||
Occupancy expense | 687 | 613 | ||||
Data processing | 534 | 430 | ||||
State deposit taxes | 128 | 128 | ||||
Advertising expense | 282 | 253 | ||||
Professional services expense | 256 | 370 | ||||
Postage and telephone expense | 155 | 126 | ||||
Office supplies expense | 80 | 102 | ||||
Other operating expenses | 171 | 136 | ||||
Total non-interest expense | 5,414 | 4,988 | ||||
Net income before income taxes | 2,146 | 1,437 | ||||
Income tax expense | 654 | 415 | ||||
Net income | $ | 1,492 | $ | 1,022 | ||
Earnings per share - basic | $ | 0.42 | $ | 0.28 | ||
Earnings per share - diluted | $ | 0.42 | $ | 0.28 | ||
Dividend per share | $ | 0.12 | $ | 0.12 | ||
Weighted average shares outstanding - Basic | 3,568,556 | 3,629,520 | ||||
Weighted average shares outstanding - Diluted | 3,583,017 | 3,654,726 | ||||
| As of | ||||||||
| March 31, 2008 | December 31, 2007 | |||||||
Total assets | $ | 812,611 | $ | 808,352 | ||||
Loans receivable, gross | 590,555 | 581,094 | ||||||
Securities available for sale | 146,339 | 142,310 | ||||||
Securities held to maturity | 4,037 | 14,095 | ||||||
Federal Home Loan Bank stock, at cost | 3,943 | 3,836 | ||||||
Allowance for loan losses | 4,862 | 4,842 | ||||||
Total deposits | 601,728 | 598,753 | ||||||
FHLB borrowings | 98,202 | 101,882 | ||||||
Repurchase agreements | 39,181 | 37,199 | ||||||
Stockholder’s equity | 57,250 | 55,803 | ||||||
Book value per share | $ | 16.02 | $ | 15.54 | ||||
Allowance for loan loss as a percent of gross loans | 0.82 | % | 0.83 | % | ||||
Non performing assets as a percent of assets | 0.20 | % | 0.12 | % | ||||
Non-accrual loans as a percent of gross loans | 0.21 | % | 0.10 | % | ||||
Net yield on interest earning assets | 3.05 | % | 2.89 | % | ||||
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