Exhibit 99.1
NEWS
FOR IMMEDIATE RELEASE | CONTACT: | John E. Peck | ||||||
President and CEO | ||||||||
(270) 885-1171 |
HOPFED BANCORP REPORTS SECOND QUARTER RESULTS
HOPKINSVILLE, Ky. (July 25, 2008) – HopFed Bancorp, Inc. (NASDAQ: HFBC) (the “Company”) today reported results for the second quarter and the six-month period ended June 30, 2008. Net income for the three month period ended June 30, 2008 was $1,261,000, or $0.35 per share (basic and diluted), compared to $1,108,000, or $0.31 per share (basic and diluted), for the three month period ended June 30, 2007. Net income for the six month period ended June 30, 2008, was $2,753,000, or $0.77 per share (basic and diluted), compared with $2,130,000, or $0.59 per share (basic and diluted), for the six month period ended June 30, 2007.
Commenting on the Company’s performance, John E. Peck, president and chief executive officer, said, “The Company continues to perform well despite a difficult economy, maintaining its quarterly dividend at $0.12 per share at a time when other financial institutions have dramatically reduced or eliminated dividends. For the first six months in 2008, the Company’s loan portfolio grew by more than $19.9 million and its net interest margin increased to 3.14% as compared to 2.98% at December 31, 2007. Net interest margins were enhanced by Heritage Bank’s focus on checking account growth. The Bank has opened more than 2,500 checking accounts in the first half of 2008, a 30% increase over the first six months in 2007. As a result, the average balance of non-interest checking accounts has increased by more than $4.8 million for the six month period ended June 30, 2008, as compared to the six month period ended June 30, 2007. Furthermore, the growth in checking accounts is largely responsible for a $300,000 increase in fee income from merchant cards and service charges for the six month period ended June 30, 2008, as compared to the six month period ended June 30, 2007.”
Mr. Peck continued, “At June 30, 2008, the Company’s credit quality measurements remained strong. However, the Company is monitoring a limited number of lending relationships whose business may deteriorate due to a slowing economy and difficulties in the credit markets. The Company continues to evaluate these relationships for loss exposure and remains confident that the Bank and Company will remain well capitalized. In response to a slowing economy and a potential increase in nonaccrual loans, the Company may increase its provision for loan loss expense in future periods.”
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 as well as Fall & Fall Insurance of Fulton, Kentucky, Heritage Solutions of Murray, Kentucky, Hopkinsville, Kentucky, Pleasant View, Tennessee 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, P.O. Box 537, Hopkinsville, KY 42241
HFBC Reports Second Quarter Results
Page 2
July 25, 2008
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)
Selected Financial Indicators as of: | ||||||||
June 30, 2008 | December 31, 2007 | |||||||
Total assets | $ | 827,194 | $ | 808,352 | ||||
Loans receivable, gross | 601,010 | 581,094 | ||||||
Securities available for sale | 149,000 | 142,310 | ||||||
Securities held to maturity | 2,016 | 14,095 | ||||||
Required investment in FHLB stock, at cost | 3,996 | 3,836 | ||||||
Allowance for loan loss | 5,118 | 4,842 | ||||||
Total deposits | 621,286 | 598,753 | ||||||
Total FHLB borrowings | 97,309 | 101,882 | ||||||
Repurchase agreements | 34,949 | 37,199 | ||||||
Stockholders' equity | 56,467 | 55,803 | ||||||
Book value per share, gross | $ | 15.75 | $ | 15.54 | ||||
Tangible book value per share | $ | 13.74 | $ | 13.40 | ||||
Allowance for loan loss / Gross loans | 0.85 | % | 0.83 | % | ||||
Non-performing assets / Total asset | 0.12 | % | 0.12 | % | ||||
Non-performing loans / Total loans | 0.10 | % | 0.10 | % | ||||
Tier 1 Capital - Bank | 7.23 | % | 6.97 | % | ||||
Total Risk Based Capital - Bank | 10.84 | % | 10.47 | % | ||||
Year to date tax equivalent net yield on interest earning assets | 3.14 | % | 2.98 | % |
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HFBC Reports Second Quarter Results
Page 3
July 25, 2008
HOPFED BANCORP, INC.
Results of Operations
For the Three Months Ended June 30, | For the Six Months Ended June 30, | |||||||
2008 | 2007 | 2008 | 2007 | |||||
Interest and dividend income | ||||||||
Loans receivable | 10,299 | 10,213 | 20,978 | 19,733 | ||||
Investment in securities, taxable | 1,641 | 1,864 | 3,318 | 3,831 | ||||
Nontaxable securities available for sale | 160 | 123 | 324 | 245 | ||||
Interest-earning deposits | 36 | 83 | 95 | 254 | ||||
Total interest and dividend income | 12,136 | 12,283 | 24,715 | 24,063 | ||||
Interest expense: | ||||||||
Deposits | 4,902 | 5,529 | 10,364 | 10,849 | ||||
Advances from Federal Home Loan Bank | 965 | 1,013 | 2,033 | 2,114 | ||||
Repurchase agreements | 271 | 328 | 600 | 576 | ||||
Subordinated debentures | 122 | 208 | 284 | 395 | ||||
Total interest expense | 6,260 | 7,078 | 13,281 | 13,934 | ||||
Net interest income | 5,876 | 5,205 | 11,434 | 10,129 | ||||
Provision for loan losses | 476 | 238 | 877 | 478 | ||||
Net interest income after | 5,400 | 4,967 | 10,557 | 9,651 | ||||
provision for loan losses | ||||||||
Non-interest income: | ||||||||
Service charges | 1,103 | 1,000 | 2,170 | 1,892 | ||||
Merchant card income | 152 | 117 | 284 | 236 | ||||
Gain on sale of loans | 41 | 25 | 105 | 52 | ||||
Gain on sale of securities | 168 | — | 702 | — | ||||
Income from bank owned life insurance | 67 | 77 | 135 | 170 | ||||
Financial services commission | 279 | 284 | 519 | 585 | ||||
Other operating income | 287 | 263 | 586 | 572 | ||||
Total non-interest income | 2,097 | 1,766 | 4,501 | 3,507 | ||||
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HFBC Reports Second Quarter Results
Page 4
July 25, 2008
HOPFED BANCORP, INC.
Results of Operations (continued)
For the Three Months Ended June 30, | For the Six Months Ended June 30, | |||||||||||
2008 | 2007 | 2008 | 2007 | |||||||||
Non-interest expenses: | ||||||||||||
Salaries and benefits | 2,891 | 2,609 | 5,792 | 5,198 | ||||||||
Occupancy expense | 699 | 649 | 1,386 | 1,262 | ||||||||
Data processing expense | 569 | 452 | 1,103 | 882 | ||||||||
State deposit tax | 128 | 138 | 256 | 266 | ||||||||
Intangible amortization expense | 220 | 240 | 439 | 481 | ||||||||
Professional services expense | 294 | 406 | 550 | 776 | ||||||||
Advertising expense | 315 | 252 | 597 | 505 | ||||||||
Postage and communications expense | 159 | 121 | 314 | 247 | ||||||||
Supplies expense | 87 | 81 | 167 | 183 | ||||||||
Other operating expenses | 304 | 205 | 477 | 341 | ||||||||
Total non-interest expense | 5,666 | 5,153 | 11,081 | 10,141 | ||||||||
Income before income tax expense | 1,831 | 1,580 | 3,977 | 3,017 | ||||||||
Income tax expense | 570 | 472 | 1,224 | 887 | ||||||||
Net income | $ | 1,261 | $ | 1,108 | $ | 2,753 | $ | 2,130 | ||||
Earnings per share, basic | $ | 0.35 | $ | 0.31 | $ | 0.77 | $ | 0.59 | ||||
Earnings per share, diluted | $ | 0.35 | $ | 0.31 | $ | 0.77 | $ | 0.59 | ||||
Dividend per share | $ | 0.12 | $ | 0.12 | $ | 0.24 | $ | 0.24 | ||||
Weighted average shares outstanding—basic | 3,558,893 | 3,587,986 | 3,567,727 | 3,609,532 | ||||||||
Weighted average shares outstanding—diluted | 3,573,652 | 3,612,575 | 3,582,297 | 3,634,485 | ||||||||
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