Welcome Shareholders 2015 Annual Meeting Exhibit 99.1 |
Disclosure The information provided in this presentation is for the May 20, 2015 Shareholders meeting of Hopfed Bancorp, Inc. information provided relates to it’s Subsidiary Heritage Bank USA, Inc. 2 This information is for Heritage Bank 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-looking 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 increase”, “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 of 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 obligation 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. |
John E. Peck President & CEO Mike Woolfolk Executive VP & COO Billy Duvall Sr.VP & & Chief Financial Officer P. Michael Foley Sr.VP & Chief Credit Officer SENIOR MANAGEMENT 3 III , , , , |
Gilbert E. Lee Chairman of the Board John E. Peck H. Joseph Dempsey, M.D. Clay Smith Ted Kinsey Robert Bolton Steve Hunt Richard H. Perkins Michael L. Woolfolk HopFed Bancorp, Inc. Board of Directors 4 Owner – Parkway Chrysler President – Iron Bay Capitol Vice President – Agri-Power and Agri- Co-owner-C&L Rentals, L.L.C. President and Chief Executive Officer Anesthesiologist Mercury And Purchase Ford, Lincoln, Mercury Retired – Bank Examiner Chief Operating Officer, Executive Vice President and Secretary President – Pennyrile Ford, Lincoln, Chem |
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Recent Accomplishments of Heritage Bank 6 Leading the market share in all communities Heritage Bank serves Approximately $13 million increase in checking deposits year over year Substantial reduction in costs of deposits Continued Improvement in Asset Quality & Loan Mix |
Recent Accomplishments Of Heritage Bank 7 •Kentucky Chamber of Commerce “BEST PLACES TO WORK” winner five years in a row 2011 - 2015 •Expand Facilities in Marshall County KY •Continued a Robust Stock Buy-Back Program •Established an Employee Stock Ownership Program (ESOP) |
Billy Duvall Chief Financial Officer 8 |
9 The Following Slides are for Heritage Bank The next slides reflects performance of Heritage Bank a State Chartered Bank and are not consolidated numbers. |
Non-Interest Deposits (Millions) 10 This information is for Heritage Bank 4 7 19 27 32 37 51 52 57 68 69 80 94 105 115 0 20 40 60 80 100 120 140 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 |
Cost of funding Earning Asset 11 This information is for Heritage Bank 2.20% 1.85% 1.53% 1.12% 0.94% 0.70% 2010 2011 2012 2013 2014 Mar-15 |
Net Income 2011 – 2014 12 This information is for Heritage Bank Thousands $- $500 $1,000 $1,500 $2,000 $2,500 $3,000 $3,500 $4,000 $4,500 $5,000 2011 2012 2013 2014 $3,771 $4,975 $4,683 $3,023 |
Net Income 2011 – 2014 Sans FHLB Prepayment 13 This information is for Heritage Bank Effect of FHLB Prepayment $4,680 Thousands $- $500 $1,000 $1,500 $2,000 $2,500 $3,000 $3,500 $4,000 $4,500 $5,000 2011 2012 2013 2014 $3,771 $4,975 $4,683 $3,023 $1,657 |
Year End Adjustments FHLB This information is for Heritage Bank 14 (In Thousands ) 4 th QTR 2014 1 st QTR 2015 First Year Savings Average Balance FHLB Borrowings $40,871 $23,167 Average Cost Borrowings 3.65% 1.19% FHLB Borrowing Expense $434 $69 $365 Actual / Annualized Expense $1,665 $276 $1,389 |
First Quarter 2015 Performance 15 This information is for Heritage Bank (In Thousands) Full Year 2014 First Quarter 2015 Net Income $3,023 $1,571 Cost of Interest Bearing Liabilities 1.20% 0.85% Net Interest Margin 3.08% 3.78% NPA / Total Assets 0.55% 0.50% |
John E. Peck President / CEO 16 |
Comparative Financial Performance 1 st Quarter 2015 17 This information is for Heritage Bank Ratio of Return on Return on Net Non Assets Loans to Average Average Interest Efficiency Equity / Performing Regions (In Thousands) Deposits Assets Equity Margin Ratio Assets Assets Nashville $332,509 82% 0.71% 7.20% 3.68% 72% 10.20% 1.03% Heritage $894,285 76% 0.70% 6.34% 3.78% 76% 11.86% 0.50% Information Provided by: Monroe Financial Partners, Inc. (26) |
Net Interest Margin 18 This information is for Heritage Bank 3.19% 3.01% 2.93% 3.01% 3.08% 3.78% 2010 2011 2012 2013 2014 Mar-15 |
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Nashville LPO This information is for Heritage Bank •West End 20 |
NASHVILLE 21 |
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Nashville and Heritage Bank 26 This information is for Heritage Bank •Approximately $60 Million in Loans •$90 Million in Deposits •Four Offices •Offers Unlimited Opportunity for Growth |
NASHVILLE 27 |
Repurchase Program 28 HopFed Bancorp Inc. Period Number of Shares Value Average Cost Per Share Year End 2014 298,999 $3,500,043 $11.71 3 Month ended 3/31/15 725,341 $9,722,576 $13.40 |
ESOP 29 This information is for Heritage Bank •March 2, 2015 Purchased 600,000 Shares of Common Stock at $13.14 Per Share •Employees Now Own Approximately 8.5% of Common Shares Outstanding •ESOP is Primary Employer Sponsored Retirement Vehicle and is Expected to be “Expense Neutral” •ESOP Received Regulatory Authority to Own up to 24.9% of the Company’s Common Stock |
Capital Position 30 This information is for Heritage Bank Well Capitalized Total Risk Based Capital Well Capitalized Tier 1 10% 2010 2011 2012 2013 2014 Mar 15 9.40% 10.20% 10.60% 10.80% 11.00% 10.50% 16.20% 17.60% 19.10% 17.80% 18.60% 17.40% Tier 1 Total Risk Based 6% |
Stock Price 31 6.7 6.95 8.76 10.96 11.39 11.62 12.96 12.99 Jan-12 Jun -12 Jan-13 Jun -13 Jan-14 Jun -14 Jan-15 May-15 |
Welcome Shareholders 2015 Annual Meeting |