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 28, 2009) – HopFed Bancorp, Inc. (NASDAQ: HFBC) (the “Company”) today reported results for the fourth quarter and the twelve month period ended December 31, 2008. Net income available to common stockholders for the fourth quarter ended December 31, 2008, was $657,000, or $0.18 per share basic and diluted, compared with net income of $961,000, or $0.27 per share basic and diluted for the fourth quarter in 2007. Net income available to common stockholders for the twelve months ended December 31, 2008, was $4,559,000, or $1.28 per share basic and $1.27 per share fully diluted, compared with net income available to common stockholders of $4,116,000, or $1.15 per share basic and $1.14 per share diluted, for the twelve months ended December 31, 2007.
Commenting on fourth quarter and full year results, John E. Peck, President and Chief Executive Officer stated, “The Company’s financial performance for the year ended December 31, 2008, was exceptional as HopFed Bancorp set company records for net income production, organic loan and deposit growth, and capital accumulation. This performance was accomplished despite the most difficult operating environment in decades. The decline in fourth quarter net income was largely attributable to a $460,000 increase in provision for loan loss expense used to increase the Company’s funding level of its allowance for loan loss account. The recent investment of $18.4 million by the United States Treasury provides the Company with additional capital so that it may continue to grow and meet the needs of the communities in which we serve while taking advantage of opportunities provided by the current operating environment.”
Commenting further, Mr. Peck stated, “In the face of a challenging economy, the Company increased its reserve for loan losses by $1.3 million, boosting its allowance for loan loss balance to 0.97% of loans. 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 0.86% of total assets and non-accrual loans represent a total of 1.16% of total loans. In 2008, the Company’s net charge off ratio was 0.25%, well below the most recently published industry average at September 30, 2008.
“In addition, at December 31, 2008, total assets increased to $967.6 million compared with $808.4 million at December 31, 2007, deposits increased to $713.0 million compared with $598.8 million at December 31, 2007, while net loans increased to $628.3 million compared with $576.3 million at December 31, 2007.”
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.
HFBC Reports Fourth Quarter Results
Page 2
January 28, 2009
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)
Selected Financial Indicators as of: | ||||||||
December 31, 2008 | December 31, 2007 | |||||||
Total assets | $ | 967,560 | $ | 808,352 | ||||
Loans receivable, gross | 634,469 | 581,094 | ||||||
Securities available for sale | 246,952 | 142,310 | ||||||
Securities held to maturity | 454 | 14,095 | ||||||
Required investment in FHLB stock, at cost | 4,050 | 3,836 | ||||||
Allowance for loan loss | 6,133 | 4,842 | ||||||
Total deposits | 713,005 | 598,753 | ||||||
Total FHLB borrowings | 130,012 | 101,882 | ||||||
Repurchase agreements | 28,679 | 37,199 | ||||||
Stockholders’ equity | 78,234 | 55,803 | ||||||
Book value per share, gross | $ | 16.67 | $ | 15.54 | ||||
Tangible book value per share | $ | 14.77 | $ | 13.40 | ||||
Allowance for loan loss / Gross loans | 0.97 | % | 0.83 | % | ||||
Non-performing assets / Total asset | 0.86 | % | 0.12 | % | ||||
Non-performing loans / Total loans | 1.16 | % | 0.10 | % | ||||
Tier 1 Capital - Bank | 7.77 | % | 6.97 | % | ||||
Total Risk Based Capital - Bank | 12.62 | % | 10.47 | % | ||||
Year to date tax equivalent net yield on interest earning assets | 3.04 | % | 2.89 | % |
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HFBC Reports Fourth Quarter Results
Page 3
January 28, 2009
HOPFED BANCORP, INC.
Selected Financial Data
(Dollars in thousands, except share and per share data)
For the Three Months Ended December 31, | For the Twelve Months Ended December 31, | |||||||
2008 | 2007 | 2008 | 2007 | |||||
Interest and dividend income: | ||||||||
Loans receivable | 10,098 | 10,589 | 41,421 | 40,720 | ||||
Investment in securities, taxable | 2,202 | 1,680 | 7,270 | 7,283 | ||||
Nontaxable securities available for sale | 162 | 137 | 639 | 511 | ||||
Interest-earning deposits | 29 | 173 | 147 | 519 | ||||
Total interest and dividend income | 12,491 | 12,579 | 49,477 | 49,033 | ||||
Interest expense: | ||||||||
Deposits | 5,458 | 5,794 | 20,789 | 22,279 | ||||
Advances from Federal Home Loan Bank | 922 | 1,170 | 3,940 | 4,428 | ||||
Repurchase agreements | 223 | 432 | 1,079 | 1,411 | ||||
Subordinated debentures | 207 | 186 | 612 | 773 | ||||
Total interest expense | 6,810 | 7,582 | 26,420 | 28,891 | ||||
Net interest income | 5,681 | 4,997 | 23,057 | 20,142 | ||||
Provision for loan losses | 735 | 274 | 2,417 | 976 | ||||
Net interest income after provision for loan losses | 4,946 | 4,723 | 20,640 | 19,166 | ||||
Non-interest income: | ||||||||
Service charges | 1,115 | 1,137 | 4,535 | 4,105 | ||||
Merchant card income | 144 | 133 | 576 | 494 | ||||
Gain on sale of loans | 23 | 16 | 135 | 98 | ||||
Gain on sale of securities | — | 6 | 718 | 6 | ||||
Income from bank owned life insurance | 67 | 55 | 270 | 302 | ||||
Financial services commission | 215 | 261 | 1,055 | 1,140 | ||||
Other operating income | 229 | 239 | 1,055 | 1,086 | ||||
Total non-interest income | 1,793 | 1,847 | 8,344 | 7,231 | ||||
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HFBC Reports Fourth Quarter Results
Page 4
January 28, 2009
HOPFED BANCORP, INC.
Selected Financial Data
(Dollars in thousands, except share and per share data)
For the Three Months Ended December 31, | For the Twelve Months Ended December 31, | |||||||||||
2008 | 2007 | 2008 | 2007 | |||||||||
Non-interest expenses: | ||||||||||||
Salaries and benefits | 2,789 | 2,692 | 11,456 | 10,619 | ||||||||
Occupancy expense | 770 | 727 | 2,882 | 2,672 | ||||||||
Data processing expense | 575 | 491 | 2,260 | 1,850 | ||||||||
State deposit tax | 128 | 93 | 512 | 504 | ||||||||
Intangible amortization expense | 204 | 258 | 847 | 961 | ||||||||
Professional services expense | 352 | 299 | 1,271 | 1,412 | ||||||||
Advertising expense | 361 | 264 | 1,167 | 1,005 | ||||||||
Postage and communications expense | 146 | 152 | 622 | 550 | ||||||||
Supplies expense | 88 | 80 | 341 | 374 | ||||||||
Other operating expenses | 310 | 122 | 1,059 | 606 | ||||||||
Total non-interest expense | 5,723 | 5,178 | 22,417 | 20,553 | ||||||||
Income before income tax expense | 1,016 | 1,392 | 6,567 | 5,844 | ||||||||
Income tax expense | 303 | 431 | 1,952 | 1,728 | ||||||||
Net income | 713 | 961 | 4,615 | 4,116 | ||||||||
Less: | ||||||||||||
Dividend on preferred shares | 50 | — | 50 | — | ||||||||
Accretion dividend on preferred shares | 6 | — | 6 | — | ||||||||
Net income available to common stockholders | $ | 657 | $ | 961 | $ | 4,559 | $ | 4,116 | ||||
Net income per share, basic | $ | 0.18 | $ | 0.27 | $ | 1.28 | $ | 1.15 | ||||
Net income per share, diluted | $ | 0.18 | $ | 0.27 | $ | 1.27 | $ | 1.14 | ||||
Dividend per share | $ | 0.12 | $ | 0.12 | $ | 0.48 | $ | 0.48 | ||||
Weighted average shares outstanding - basic | 3,571,713 | 3,571,547 | 3,572,127 | 3,588,163 | ||||||||
Weighted average shares outstanding - diluted | 3,576,604 | 3,594,587 | 3,597,483 | 3,607,870 | ||||||||