Exhibit 99.1
Presenters:
John E. Peck, President / CEO
Billy Duvall, CFO
1
Forward-Looking Statements
Statements herein that are not historical facts are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). These statements are subject to known and unknown risks, uncertainties and other factors which may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by such forward-looki ng statements. You should understand that these statements are not guarantees of performance or results and are preliminary in nature. Statements preceded by followed by or that otherwise include the words “believes”, “expects”, “anticipates”, “intends”, “projects”, “estimates”, “plans”, “may result”, “will result”, “may fluctuate” and similar expressions or future or conditional verbs such as “will”, “should”, “would”, “may” and “could” are generally forward-looking in nature and not historical facts.
You should consider the areas or risk described under the heading “Cautionary Note Regarding Forward-Looking Statements” and “Risk Factors” in our periodic reports filed with the Securities and Exchange Commission under the Securities Exchange Act of 1934 in connection with any forward-looking statements that may be made by us and our businesses generally. Except for our ongoing obligations to disclose material information under the federal securities laws, we undertake no obligations to release publicly any updates or revisions to any forward-looking statements, to report events or to report the occurrence of unanticipated events unless required by law.
2
Billy Duvall
Chief Financial Officer
4
ASSETS
$1,200.00 $1,082.6 $1,029.9 $1,040.8 $967.6 $967.7 $981.1 $1,000.00
$808.4 $770.9 $800.00
$640 $580 $600.00 $532
$428
$400.00 $286
$200.00
$0.00
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Mar-13
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NET LOANS
$700.00 $642.4 $628.4 $600.2 $600.00 $576.3 $556.4 $525.0 $530.9 $495.0 $500.00
$397.3 $400.00 $356.8 $334.7
$292.1 $300.00
$200.00 $170.0
$100.00
$0.00
6 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Mar-13
Total Deposits
$900
$794.1 $800.1 $777.6 $800 $759.9 $729.9 $713.0
$700
$598.8 $600 $569.4
$500 $482.7 $436.2 $417.5
$400 $353.7
$300
$200.3 $200
$100
$0
7 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Mar-13
Net Income
$5,485 $6,000
$4,559 $5,000
$3,936
$4,000
$2,840 $3,000
$1,889
$2,000 $944
$1,000
$0
8 2008 2009 2010 2011 2012 March 2013 (annualized)
Non-Interest Deposits
(Millions)
$120
$100
$80
$60
$40
$20
$0
$4
$7
$19
$27
$32
$37
$51
$52
$57
$68
$69
$80
$94
$100
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
Q1-2013
9
TIME DEPOSIT / TOTAL DEPOSIT
75.0%
71.2%
70.5%
70.0%
67.1%
65.0%
65.0%
60.0%
57.5%
54.7%
55.0%
50.0%
45.0%
40.0%
2008 2009 2010 2011 2012 Mar-13
10
LOAN MIX 12/31/2000
C & I, 0.7% Consumer, 5.1% CRE, 16.5%
Construction , 4.4%
Multi-family ,
2.2%
1—4 family , 71.1%
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LOAN MIX March 31, 2013
Consumer 2%
C & I 10%
Other CRE 1—4 family 10% 37%
O.O. CRE 15%
Multi-family Farmland 6%
9% Land 8%
Construction 3%
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NPA / Total Assets
Heritage Bank All Institutions All Savings < $1 billion
3.50%
3.00%
2.50%
2.00%
1.50%
1.00%
0.50%
0.00%
13 2007 2008 2009 2010 2011 2012
Source: FDIC – Statistics on Depository Institutions Report
NET CHARGE OFFS
Heritage Bank All Institutions All Savings < $1 billion
3.00%
2.50%
2.00%
1.50%
1.00%
0.50%
0.00%
14 2007 2008 2009 2010 2011 2012
Source: FDIC – Statistics on Depository Institutions Report
CLASSIFIED LOANS
$100,000
$90,368
$90,000 $82,117
$75,785
$80,000
$66,604
$70,000
$60,000
$43,655
$50,000 $39,862 $40,000
$30,000
$20,000
3/31/2012 6/30/2012 9/30/2012 12/31/2012 3/31/2013 5/30/2013
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John E. Peck
President / CEO
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Opportunity
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Transaction Overview
Transaction Value
$10.04 per share or $14.3 million in cash
Subject to possible increase or reduction based on Sumner performance
Valuation Multiples (as of 12/31/12)
Price to tangible book value of 111%
Core deposit premium of 1.2%
Price to LTM earnings per share of 14.6x
SBLF Preferred Stock
Sumner SBLF Preferred Stock will be exchanged for shares of HopFed Preferred Stock and will be subject to the same terms as Sumner agreed to with the U.S. Department of the Treasury
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Pro Forma Branch Map
Branch Summary
For the period ended June 30, 2012
(Dollars in Thousands)
Gallatin I
780 Browns Lane
Gallatin, TN 37066
2012 Deposits: $55,306
2011 Deposits: $46,531
Gallatin II
240 W Broadway
Gallatin, TN 37066
2012 Deposits: $55,848
2011 Deposits: $56,364
Hendersonville
255 Indian Lake Blvd
Hendersonville, TN 37075
2012 Deposits: $28,083
2011 Deposits: $16,039
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Transaction Rationale
Financial Considerations
20
Transaction Rationale
Strategic Considerations
Significantly enhances our presence in the Nashville MSA with the addition of 3 branches and 3 loan production offices
Expansion into markets with attractive demographics and growth profiles
Local leadership has been retained and will lead our efforts in these new markets
Utilizes our enhanced infrastructure allowing for significant cost savings
Improves our deposit mix and net interest margin
Includes attractive retail mortgage business
21
Attractive Market Demographics
Nashville, TN MSA
County (Seat) 2012 Population Population Change 2012 Median 2012 Median Value
2000-2012 Household Owner Occupied
Income Housing Unit
Robertson
(Springfield) 67.683 24.3% $45,984 $146,778
Sumner
(Gallatin) 165,950 27.2 52,233 178,732
Wilson
(Lebanon) 118,990 34.0 56,555 175,577
Rutherford(Murfreesboro) 273,378 50.2 51,533 149,005
Williamson (Franklin) 191,532 51.2 78,845 321,900
Maury (Columbia) 83,089 19.6 45,787 124,137
Dickson (Charlotte) 50,144 16.2 41,711 127,735
Davidson (Nashville) 640,154 12.3 42,642 164,240
Cheatham (Ashland City) 39,446 9.8 50,105 136,390
Nashville MSA Total 1,630,366 25.3% $50,828 $177,944
Note: Acquired branches/LPO’s are located in the highlighted counties.
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HFBC Stock Price
Since Common Stock Offering
$12.00 2/12/13: Announce acquisition of Sumner Bank & Trust
$11.00 1/16/13: Repurchased warrants relating to TARP
$10.00 7/21/11: OTS transfers authority to Federal Reserve and OCC
$9.00 10/10/12: MOU is terminated between the OCC and Heritage Bank
$8.00 6/16/10: Closing of $32.3M follow-on common stock offering at $8.65 (split-adjusted) 12/19/12: Repurchase TARP at par
$7.00 5/21/12: Initial OCC exam commences 8/6/12: Signed NDA to explore Sumner acquisition 11/21/12: MOU is terminated between Federal Reserve and HopFed Bancorp, Inc.
$6.00
$5.00
6/16/10
9/16/10
12/16/10
3/16/11
6/16/11
9/16/11
12/16/11
3/16/12
6/16/12
9/16/12
12/16/12
3/16/13
Source: SNL Financial
Pricing as of March 28, 2013
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Presenters:
John E. Peck, President / CEO
Billy Duvall, CFO
24 www.bankwithheritage.com
