Hopfed Bancorp (HFBC) 8-K Hopfed Bancorp, Inc. Reports Second Quarter Results

Exhibit 99.1

NEWS

FOR IMMEDIATE RELEASE	CONTACT:	John E. Peck
		President and CEO
		(270) 885-1171

HOPFED BANCORP, INC. REPORTS SECOND QUARTER RESULTS

HOPKINSVILLE, Ky. (July 28, 2009) – HopFed Bancorp, Inc. (NASDAQ: HFBC) (the “Company”) today reported results for the three and six month periods ended June 30, 2009. For the three month period ended June 30, 2009, net income available for common shareholders was $854,000, or $0.24 per share (basic and diluted), compared to $1,261,000, or $0.35 per share (basic and diluted) for the three month period ended June 30, 2008, and $1,012,000, or $0.28 per share (basic and diluted) for the three month period ended March 31, 2009. For the six month period ended June 30, 2009, net income available for common shareholders was $1,866,000, or $0.52 per share (basic and diluted), compared to $2,753,000, or $0.77 per share (basic and diluted), for the six month period ended June 30, 2008.

For the three and six month periods ended June 30, 2009, the Company’s results of operations includes preferred dividend and warrant accretion of $257,000 and $511,000, respectively related to the Company’s $18.4 million issuance of preferred stock to the United States Treasury on December 12, 2008.

Commenting on the first half and second quarter results, John E. Peck, president and chief executive officer, said, “The Company continues to experience a modest level of net interest margin expansion. For the three month periods ended June 30, 2009 and March 31, 2009, the Company’s net interest margin was 2.93% and 2.87%, respectively. The Company’s net interest income for the three months ended June 30, 2009 was $6,562,000, as compared to $6,395,000 for the three month period ended March 31, 2009 and $5,876,000 for the three month period ended June 30, 2008.”

Mr. Peck continued, “During the second quarter of 2009, the Company’s profitability was hampered due to higher operating expenses largely due to an increase in regulatory fees. The Company incurred approximately $722,000 in expenses related to deposit insurance and examination fees, as compared to $163,000 in the first quarter of 2009 and $113,000 in the second quarter of 2008. The increase in these fees includes an FDIC special assessment of approximately $460,000 but also reflects quarterly fees charged by the FDIC to fund its operations.

For the three and six month periods ended June 30, 2009, the Company’s provision for loan loss expense was $962,000 and $1.9 million, respectively, compared to $476,000 and $877,000, respectively for the same periods in 2008. The increase in the Company’s provision for loan loss expense was driven by an increase in loans internally classified as impaired, from $13.0 million at December 31, 2008 to $24.9 million at June 30, 2009. The allowance for loan loss to total loans ratio is now 1.15% as compared to 0.85% at June 30, 2008 and 0.97% at December 31, 2008. The Company’s credit quality ratios remain stable with both the Company’s non-performing asset ratio and net charge off ratio are largely unchanged at June 30, 2009 as compared to December 31, 2008.”

Mr. Peck commented on the Company’s future prospects, “For the remainder of 2009, management anticipates that operating expenses will moderate as higher regulatory fees will offset reductions in the Company’s core deposit intangible expense. The Company may have the opportunity to lower its cost of funds late in the third quarter, making it possible for an improved net interest margin in the fourth quarter. In light of the continued struggles in both the national and local economies, management anticipates that it will continue to focus on strengthening the balance sheet through continued aggressively funding the allowance for loan loss account. The Company will not recognize a goodwill impairment charge in the second quarter. However, the Company has chosen to accelerate its annual independent goodwill impairment study so that it may be completed by the end of the third quarter of 2009.”

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HFBC Announces First Quarter Results

Page 2

July 28, 2009

“At June 30, 2009, total assets increased to $1.0 billion, compared with $967.6 million at December 31, 2008, deposits increased to $743.5 million, compared with $713.0 million at December 31, 2008, while gross loans increased to $644.5 million, compared with $634.5 million at December 31, 2008. Federal Home Loan Bank borrowings decreased to $129.1 million at June 30, 2009, compared to $130.0 million at December 31, 2008. ”

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, Hopkinsville, Kentucky. Kingston Springs, 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.

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

(Dollars in thousands, except share and per share data)

	Selected Financial Indicators as of:
	June 30, 2009			December 31, 2008
Total assets	$	1,001,794		$	967,560
Loans receivable, gross		644,538			634,489
Securities available for sale		290,092			246,952
Securities held to maturity		413			454
Required investment in FHLB stock, at cost		4,281			4,050
Allowance for loan loss		7,427			6,133
Total deposits		743,547			713,005
Total FHLB borrowings		129,141			130,012
Repurchase agreements		31,438			28,680
Stockholders’ equity		79,809			78,284
Book value per share, gross	$	17.08		$	16.67
Tangible book value per share	$	15.30		$	14.77
Allowance for loan loss / Gross loans		1.15	%		0.97	%
Non-performing assets / Total asset		0.91	%		0.86	%
Non-performing loans / Total loans		1.26	%		1.16	%
Annualized net charge off ratio		0.20	%		0.20	%
Tier 1 Capital - Bank		7.80	%		7.77	%
Total Risk Based Capital - Bank		12.89	%		12.62	%
Year to date tax equivalent net yield on interest earning assets		2.91	%		3.04	%

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HFBC Announces First Quarter Results

Page 3

July 28, 2009

HOPFED BANCORP, INC.

Selected Financial Data

(Dollars in thousands)

	For the Three Months Ended June 30,		For the Six Months Ended June 30,
	2009	2008	2009	2008
Interest and dividend income:
Loans receivable	9,712	10,299	19,340	20,978
Investment in securities, taxable	3,205	1,641	6,491	3,318
Nontaxable securities available for sale	390	160	662	324
Interest-earning deposits	—	36	8	95
Total interest and dividend income	13,307	12,136	26,501	24,715
Interest expense:
Deposits	5,334	4,902	10,800	10,364
Advances from Federal Home Loan Bank	1,039	965	2,076	2,033
Repurchase agreements	196	271	390	600
Subordinated debentures	176	122	278	284
Total interest expense	6,745	6,260	13,544	13,281
Net interest income	6,562	5,876	12,957	11,434
Provision for loan losses	962	476	1,936	877
Net interest income after provision for loan losses	5,600	5,400	11,021	10,557
Non-interest income:
Service charges	1,098	1,103	2,022	2,170
Merchant card income	157	152	297	284
Gain on sale of loans	51	41	120	105
Gain on sale of securities	809	168	1,467	702
Income from bank owned life insurance	74	67	147	135
Financial services commission	250	279	476	519
Other operating income	302	287	571	586
Total non-interest income	2,741	2,097	5,100	4,501

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HFBC Announces First Quarter Results

Page 4

July 28, 2009

HOPFED BANCORP, INC.

Selected Financial Data

(Dollars in thousands, except share and per share data)

	For the Three Months Ended June 30,				For the Six Months Ended June 30,
	2009		2008		2009		2008
Non-interest expenses:
Salaries and benefits		3,172		2,891		6,218		5,792
Occupancy expense		750		699		1,498		1,386
Data processing expense		639		569		1,270		1,103
State deposit tax		155		128		311		256
Intangible amortization expense		203		220		407		439
Professional services expense		223		294		535		550
Advertising expense		320		315		643		597
Postage and communications expense		164		159		323		314
Supplies expense		91		87		171		167
Deposit insurance and examination expense		722		113		885		175
Other operating expenses		342		191		482		302
Total non-interest expense		6,781		5,666		12,743		11,081
Income before income tax expense		1,560		1,831		3,378		3,977
Income tax expense		449		570		1,001		1,224
Net income	$	1,111	$	1,261	$	2,377	$	2,753
Less:
Dividend on preferred shares	$	229		—	$	456		—
Accretion dividend on preferred shares	$	28		—	$	55		—
Net income available to common stockholders	$	854	$	1,261	$	1,866	$	2,753
Net income available to common stockholders
Per share, basic	$	0.24	$	0.35	$	0.52	$	0.77
Per share, diluted	$	0.24	$	0.35	$	0.52	$	0.77
Dividend per share	$	0.12	$	0.12	$	0.24	$	0.24
Weighted average shares outstanding - basic		3,568,814		3,558,893		3,568,257		3,567,727
Weighted average shares outstanding - diluted		3,568,814		3,573,652		3,568,257		3,582,297

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HFBC Announces First Quarter Results

Page 5

July 28, 2009

HOPFED BANCORP, INC.

Selected Financial Data

(Dollars in thousands)

	For the Three Months Ended
	6/30/2009		3/31/2009		Change from Prior Quarter
Interest and dividend income:
Loans receivable	$	9,712	$	9,628	$	84
Investment in securities, taxable		3,205		3,286		(81	)
Nontaxable securities available for sale		390		272		118
Interest-earning deposits		—		8		(8	)
Total interest and dividend income		13,307		13,194		113
Interest expense:
Deposits		5,334		5,466		(132	)
Advances from Federal Home Loan Bank		1,039		1,037		2
Repurchase agreements		196		194		2
Subordinated debentures		176		102		74
Total interest expense		6,745		6,799		(54	)
Net interest income		6,562		6,395		167
Provision for loan losses		962		974		(12	)
Net interest income after provision for loan losses		5,600		5,421		179
Non-interest income:
Service charges		1,098		924		174
Merchant card income		157		140		17
Gain on sale of loans		51		69		(18	)
Gain on sale of securities		809		658		151
Income from bank owned life insurance		74		73		1
Financial services commission		250		226		24
Other operating income		302		269		33
Total non-interest income		2,741		2,359		382

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HFBC Announces First Quarter Results

Page 6

July 28, 2009

HOPFED BANCORP, INC.

Selected Financial Data

(Dollars in thousands, except share and per share data)

	For the Three Months Ended
	6/30/2009		3/31/2009		Change from Prior Quarter
Non-interest expenses:
Salaries and benefits		3,172		3,046	126
Occupancy expense		750		748	2
Data processing expense		639		631	8
State deposit tax		155		156	(1	)
Intangible amortization expense		203		204	(1	)
Professional services expense		223		312	(89	)
Advertising expense		320		323	(3	)
Postage and communications expense		164		159	5
Supplies expense		91		80	11
Deposit insurance and examination expense		722		163	559
Other operating expenses		342		140	202
Total non-interest expense		6,781		5,962	819
Income before income tax expense		1,560		1,818	(258	)
Income tax expense		449		552	(103	)
Net income	$	1,111	$	1,266	(155	)
Less:
Dividends on preferred shares		229		227	2
Accretion dividend on preferred shares		28		27	1
Net income available to common stockholders	$	854	$	1,012	(158	)
Net income available to common stockholders
Per share, basic	$	0.24	$	0.28	(0.04	)
Per share, diluted	$	0.24	$	0.28	(0.04	)
Dividends per share	$	0.12	$	0.12	—
Weighted average shares outstanding - basic		3,568,814		3,576,791
Weighted average shares outstanding - diluted		3,568,814		3,576,791

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