HopFed Bancorp, Inc. Investor Presentation NASDAQ: HFBC www.bankwithheritage.com Exhibit 99.1 |
CAUTIONARY STATEMENT Information provided herein contains “forward-looking statements” with respect to the Company’s financial condition, results of operations and business. These forward- looking statements involve certain risks and uncertainties and are based on the beliefs and assumptions of management and information available at the time that this presentation was prepared. Factors that may cause actual results to differ materially from those contemplated by such forward-looking statements include: (1) general economic or business conditions may be less favorable than expected; (2) changes in interest rates may reduce net interest margins and/or the volumes and values of loans made or held, as well as the value of other financial assets; (3) competitive pressures among depository and other financial institutions may increase significantly; (4) legislative or regulatory changes may adversely affect the Company’s business; (5) local, state or federal taxing authorities may take adverse tax positions; (6) adverse changes may occur in the securities markets; and (7) competitors may have greater financial resources and develop products that enable them to compete more successfully than the Company. Accordingly, any forward-looking statements included herein do not purport to be predictions of future events or circumstances and may not be realized. Factors that might cause such a difference, include, but are not limited to, those discussed in periodic filings with the SEC. |
History of Organization • 1879 Hopkinsville Building and Loan founded • 1940 Date of deposit insurance • 1998 HopFed Bancorp first traded on NASDAQ • 7/2000 John Peck named President & CEO • 5/2002 Changed bank name to Heritage Bank • 9/2002 Acquired 2 branch offices in Fulton, Kentucky • 6/2006 Acquired 4 branch offices in Cheatham and Houston Counties in Middle Tennessee • 12/2006 Opened first of three retail banking offices in Clarksville, Tennessee |
• John E. Peck, President & CEO Twenty-eight years of banking experience with ten years at Firstar / US Bank. Nine years as President & CEO of HFBC. • Mike Woolfolk, Executive VP & Chief Operating Officer Thirty-seven years of experience with ten years at Mercantile & Firstar Banks. President of Bank of Marshall County. Eight years with HFBC as Chief Operating Officer. • Boyd Clark, Sr. VP & Secretary Thirty-seven years with HFBC. SENIOR MANAGEMENT |
Senior Management (continued) • Billy Duvall, Sr.VP & & Chief Financial Officer Nine years as regulatory examiner, two years in public accounting, eight years with HFBC. • Michael F. Stalls, Sr.VP & Chief Credit Officer Eighteen years at Regions Bank as Senior Lending Officer for Southern Tennessee. Eighteen years of Community Bank experience including six years with HFBC. |
Kentucky & Tennessee Locations |
Western Kentucky • Six offices in three counties • Significant agricultural base with wheat, corn and soybean production prominent • Light manufacturing • Tourism focused on Kentucky Lake and Land Between the Lakes • Home to Murray State University with 10,000 students |
Clarksville / Hopkinsville MSA • Population growth in MSA expected to grow 22% by 2010 to 270,000. • Clarksville named the ninth fastest growing city by the US Census Bureau in 2008. • Fort Campbell Army Post is home of the 101 st Screaming Eagles and is the largest employer in Tennessee and Kentucky. • Strong and diverse economy |
Hemlock Semiconductor Corporation • In December 2008, announced plans to building a $1.2 billion plant in Clarksville to process raw materials for solar panels. • Project provides 1,000 construction jobs for up to seven years and 900 permanent jobs upon completion. • Additional employment likely to result from suppliers being required to relocate to community |
Middle Tennessee • Offices are in or border Nashville / Davidson County MSA • Favorable demographics and $48,000 household income well above average for the region. • Currently has light manufacturing and serves as bedroom community to Nashville with strong likelihood for future growth. • Management values for good deposit mix, long term growth prospects and proximity to Nashville |
229 286 425 529 578 637 768 808 968 1,022 0 200 400 600 800 1000 1200 2000 2001 2002 2003 2004 2005 2006 2007 2008 SEPT 09 Total Assets (In Millions) |
166 200 354 418 436 483 570 599 713 765 0 100 200 300 400 500 600 700 800 900 2000 2001 2002 2003 2004 2005 2006 2007 2008 Sept 09 Total Deposits (In Millions) |
Deposit Mix (Dollars in Thousands) 9% 12% 8% 71% Non-interest-bearing accounts: NOW accounts Savings and money market accounts Other time deposits |
Growth in Non-Interest Bearing Deposits (Dollars in Millions) 4 7 19 27 32 37 51 52 57 63 0 10 20 30 40 50 60 70 2000 2001 2002 2003 2004 2005 2006 2007 2008 SEPT 09 |
Total Loans (In Millions) 129 170 292 335 357 397 495 576 628 648 0 100 200 300 400 500 600 700 2000 2001 2002 2003 2004 2005 2006 2007 2008 SEPT 09 |
Loan Portfolio Mix 1-4 Family 31% HELOC 6% Multi-family 7% Construction 5% Commercial RE 38% Consumer 3% Commercial Loans 10% |
Allowance for Loan Losses (In Thousands) 708 923 1,455 2,576 3,273 4,004 4,470 4,842 6,113 8,429 0 1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 9,000 2000 2001 2002 2003 2004 2005 2006 2007 2008 SEPT 09 |
Allowance for Loan Loss / Total Loans 0.55% 0.54% 0.50% 0.76% 0.91% 1.00% 0.90% 0.83% 0.97% 1.28% 0 0.002 0.004 0.006 0.008 0.01 0.012 0.014 2000 2001 2002 2003 2004 2005 2006 2007 2008 SEPT 09 |
Non-Performing Asset Ratio 0.19% 0.19% 0.29% 0.34% 0.18% 0.19% 0.16% 0.12% 0.86% 0.86% 0.00% 0.10% 0.20% 0.30% 0.40% 0.50% 0.60% 0.70% 0.80% 0.90% 1.00% 2000 2001 2002 2003 2004 2005 2006 2007 2008 SEPT 09 |
Net Charge Off Ratio Heritage to Peer 0.14% 0.16% 0.11% 0.20% 0.21% 0.28% 0.32% 0.56% 1.90% 1.84% 0.00% 0.20% 0.40% 0.60% 0.80% 1.00% 1.20% 1.40% 1.60% 1.80% 2.00% 2005 2006 2007 2008 SEPT 09 HFBC PEER |
Book Value Per Share 11.77 12.00 11.20 11.41 12.07 12.27 12.03 13.40 14.80 16.98 0.00 2.00 4.00 6.00 8.00 10.00 12.00 14.00 16.00 18.00 2000 2001 2002 2003 2004 2005 2006 2007 2008 SEPT 09 |
Net Income (In Thousands) (September 2009 Annualized) (September 2009 sans goodwill impairment) 2,666 1,839 4,594 3,495 3,991 4,130 3,908 4,116 4,559 3,045 0 500 1,000 1,500 2,000 2,500 3,000 3,500 4,000 4,500 5,000 2000 2001 2002 2003 2004 2005 2006 2007 2008 SEPT 09 |
Participation in Treasury Capital Purchase Plan • Issued $18.4 million in preferred stock to the United States Treasury on December 12, 2008 • Proceeds used to fund net loan growth of $6.8 million and $102.7 million of growth in investment portfolio. The portfolio growth was accomplished to offset the cost of the preferred stock dividend • Result has been to increase the subsidiary bank’s risk based capital ratio from 10.8% on September 30, 2008 to 13.2% at September 30, 2009 |
Why Invest in HopFed Bancorp • Diversity of markets and loan portfolio mix provides a lower risk profile as compared to many community banks • Risk profile enhanced by long history of below average charge offs and non- performing assets • New opportunities for growth as larger banks continue to struggle • Trading at approximately 60% of Tangible Book Value of $16.98 • Attractive dividend yield of approximately 4.75% • Experienced management team with history that has provided meaningful growth while maintaining an appropriate risk profile |