Exhibit 99.1
NEWS
CONTACT: | John E. Peck | |||||
President and CEO | ||||||
(270) 885-1171 |
HOPFED BANCORP, INC. REPORTS THIRD QUARTER RESULTS
HOPKINSVILLE, Ky. (October 30, 2015) – HopFed Bancorp, Inc. (NASDAQ: HFBC) (the “Company”), the holding company for Heritage Bank USA, Inc. (the “Bank”), today reported results for the three and nine month periods ended September 30, 2015. For the three month period ended September 30, 2015, the Company reported net income of $510,000, or $0.08 per share, basic and diluted, compared to net income of $2.0 million, or $0.27 per share basic and diluted, for the three month period ended September 30, 2014. For the nine month period ended September 30, 2015, the Company’s net income was $1.7 million, or $0.27 per share, basic and diluted, compared to net income of $3.2 million, or $0.44 per share basic and diluted, for the nine month period ended September 30, 2014. Results for the three and nine month periods ended September 30, 2014, were strongly influenced by the resolution of a long standing non-accrual loan relationship.
Commenting on the third quarter results, John E. Peck, President and Chief Executive Officer, said, “The Company continues to find success in our Nashville loan production office. We have just hired our third commercial loan officer in that market and currently have an impressive pipeline of loan opportunities. At September 30, 2015, the Nashville loan production office currently has $13.0 million in outstanding loan balances, $7.7 million in unadvanced amounts on loans and $16.9 million in loan request currently under review.
The Company remains focused on the opportunities of reducing our interest expenses. Beginning in December 2015 and ending in February 2016, the Company has time deposits totaling $65.2 million maturing with a weighted average cost of 2.52%. In March 2016, we have a $4.0 million in Federal Home Loan Bank borrowing maturing at an interest rate of 5.34%. We have an opportunity to reprice these liabilities at current market cost.” Mr. Peck concluded.
Financial Highlights
• | At September 30, 2015, the Company’s tangible book value was $13.99 per share and tangible common equity ratio was 10.06%. The Company’s tangible book value and common equity ratio computations do not include 562,937 unallocated shares of common stock held by the Company’s ESOP. |
• | The Company purchased 65,495 shares of its common stock in the three month period ended September 30, 2015, at a weighted average price of $11.55 per share. At September 30, 2015, the Company owns 1,038,686 shares of treasury stock at a weighted average cost of $12.43 per share. |
• | At September 30, 2015, net loans totaled $561.5 million, a $22.3 million increase, as compared to December 31, 2014, and a $6.7 million increase as compared to June 30, 2015. The Company’s current annualized growth rate of loans is 5.5%. |
• | The Company’s estimated Tier 1 Leverage Ratio and Total Risk Based Capital Ratio at September 30, 2015, were 10.92% and 17.20%, respectively. The Bank’s Tier 1 Leverage Ratio and Total Risk Based Capital Ratio at September 30, 2015, were 10.67% and 16.84%, respectively. |
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HFBC Reports Third Quarter Results
Page 2
October 30, 2015
Asset Quality
At September 30, 2015, the Company’s level of non-accrual loans totaled $7.2 million, as compared to $3.2 million at December 31, 2014. At September 30, 2015, the Company has one land loan, totaling $1.5 million, that is past due 91 days and still accruing interest. The loan is well secured and in the process of collection. A summary of non-accrual loans at September 30, 2015, and December 31, 2014, is as follows:
September 30, 2015 | December 31, 2014 | |||||||
(Dollars in Thousands) | ||||||||
One-to-four family mortgages | $ | 1,427 | $ | 1,501 | ||||
Home equity line of credit | 48 | — | ||||||
Multi-family | 1,968 | 95 | ||||||
Land | 1,680 | 215 | ||||||
Non-residential real estate | 672 | 1,159 | ||||||
Farmland | 168 | 115 | ||||||
Commercial loans | 1,195 | 90 | ||||||
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Total non-accrual loans | $ | 7,158 | $ | 3,175 | ||||
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The Company has current appraisals on file for all significant non-accrual relationships. For the three month period ended September 30, 2015, a review of the most recent appraisal of our non-accrual land loan resulted in the Company taking an additional charge off of approximately $281,000. At September 30, 2015, non-accrual loans, loans past due over 90 days still accruing and other real estate owned totaled $10.4 million, or 1.18% of total assets. At December 31, 2014, non-accrual loans plus other real estate owned totaled $5.1 million, or 0.55% of total assets.
At September 30, 2015, and December 31, 2014, the Company’s balance in other real estate owned was $1.7 million and $1.9 million, respectively. A summary of the activity in other real estate owned for the nine month period ended September 30, 2015, is as follows:
Balance 12/31/2014 | Reduction in Values | Gain (Loss) on Sale | Balance 9/30/2015 | |||||||||||||||||||||
Foreclosures | Proceeds | |||||||||||||||||||||||
(Dollars in Thousands) | ||||||||||||||||||||||||
One-to-four family mortgages | $ | 159 | 105 | (194 | ) | — | (15 | ) | $ | 55 | ||||||||||||||
Land | 1,768 | — | (124 | ) | — | (701 | ) | 943 | ||||||||||||||||
Non-residential real estate | — | 738 | — | — | — | 738 | ||||||||||||||||||
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Total | $ | 1,927 | 843 | (318 | ) | — | (716 | ) | $ | 1,736 | ||||||||||||||
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HFBC Reports Third Quarter Results
Page 3
October 30, 2015
Asset Quality (continued)
A summary of the activity in loans classified as TDRs for the nine month period ended September 30, 2015, is as follows:
Balance at | New | Loss or | Loan | Removed (Taken to) | Balance | |||||||||||||||||||
12/31/14 | TDR | Foreclosure | Amortization | Non-accrual | 09/30/15 | |||||||||||||||||||
(Dollars in Thousands) | ||||||||||||||||||||||||
Non-residential real estate | $ | 3,284 | 2,149 | — | (1 | ) | — | $ | 5,432 | |||||||||||||||
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Total performing TDR | $ | 3,284 | 2,149 | — | (1 | ) | — | $ | 5,432 | |||||||||||||||
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At September 30, 2015, the Company’s level of loans classified as substandard was $23.5 million as compared to $37.4 million at December 31, 2014. At September 30, 2015, the Company’s classified loan to risk-based capital ratio was 23.4%. The Company’s specific reserve for impaired loans was $545,000 at September 30, 2015, and $1.5 million at December 31, 2014. A summary of the Company’s loan portfolio by risk grade classification, at September 30, 2015, is as follows:
September 30, 2015 | Pass | Special Mention | Impaired Loans | Total | Specific Allowance for Impairment | Allowance for Performing Loans | ||||||||||||||||||||||
Substandard | Doubtful | |||||||||||||||||||||||||||
(Dollars in Thousands) | ||||||||||||||||||||||||||||
One-to-four family mortgages | $ | 143,121 | 330 | 2,919 | — | 146,370 | 29 | 931 | ||||||||||||||||||||
Home equity line of credit | 32,703 | — | 273 | — | 32,976 | — | 181 | |||||||||||||||||||||
Junior liens | 1,746 | 36 | 16 | — | 1,798 | — | 8 | |||||||||||||||||||||
Multi-family | 20,272 | — | 3,094 | — | 23,366 | — | 74 | |||||||||||||||||||||
Construction | 32,669 | — | — | — | 32,669 | — | 197 | |||||||||||||||||||||
Land | 11,604 | 1,529 | 9,521 | — | 22,654 | 266 | 1,417 | |||||||||||||||||||||
Non-residential real estate | 147,938 | 4,158 | 5,018 | — | 157,114 | 143 | 1,058 | |||||||||||||||||||||
Farmland | 40,309 | — | 330 | — | 40,639 | — | 337 | |||||||||||||||||||||
Consumer loans | 18,171 | — | 204 | — | 18,375 | 51 | 300 | |||||||||||||||||||||
Commercial loans | 89,085 | 357 | 2,108 | — | 91,550 | 56 | 439 | |||||||||||||||||||||
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Total | $ | 537,618 | 6,410 | 23,483 | — | 567,511 | 545 | 4,942 | ||||||||||||||||||||
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HFBC Reports Third Quarter Results
Page 4
October 30, 2015
Net Interest Income
For the three month period ended September 30, 2015, the Company’s net interest income was $6.4 million, compared to $6.3 million for the three month period ended June 30, 2015, and $6.8 million for the three month period ended September 30, 2014. For the three month period ended September 30, 2015, the Company’s net interest margin was 3.25%, as compared to 3.17% for the three month period ended June 30, 2015, and 3.22% for the three month period ended September 30, 2014.
For the nine month period ended September 30, 2015, the Company’s net interest income was $20.2 million, as compared to $19.5 million for the nine month period ended September 30, 2014. For the nine month period ended September 30, 2015, the Company’s interest expense was $4.9 million as compared to $6.9 million for the nine month period ended September 30, 2014. The Company’s reduced interest expense was largely the result of lower Federal Home Loan Bank borrowing balances and a reduced dependency on non-core funding. For the nine month period ended September 30, 2015, the Company’s net interest margin was 3.40%, as compared to 3.12% for the nine month period ended September 30, 2014.
Non-interest Income
Non-interest income for the three month periods ended September 30, 2015, and June 30, 2015 was $1.9 million, respectively, as compared to $2.4 million for the three month period ended September 30, 2014. On a linked quarter basis, total non-interest income increased by $68,000 largely due to a $30,000 increase in service charge income, a $35,000 increase from bank owned life insurance and a $20,000 increase in gains on the sale of securities. During the three and nine month periods ended September 30, 2015, mortgage origination revenue was $345,000 and $865,000, respectively, as compared to $316,000 and $507,000 for the three and nine month period ended September 30, 2014.
For the three month period ended September 30, 2015, total non-interest income was $457,000 lower as compared to the three month period ended September 30, 2014. For the three month period ended September 30, 2015, service charge income was $750,000, representing a $129,000 decline as compared to the three month period ended September 30, 2014. For the three month period ended September 30, 2015, gains on the sale of securities was $103,000, as compared to $294,000 for the three month period ended September 30, 2014. For the three month period ended September 30, 2015, income from financial services was $186,000, as compared to $363,000 for the three month period ended September 30, 2014.
For the nine month period ended September 30, 2015, non-interest income was $5.7 million, as compared to $5.9 million for the nine month period ended September 30, 2014. For the nine month period ended September 30, 2015, service charge income was $2.2 million, a $321,000 decline as compared to the nine month period ended September 30, 2014. For the nine month period ended September 30, 2015, financial services commissions was $539,000, as compared to $737,000 for the nine month period ended September 30, 2014.
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HFBC Reports Third Quarter Results
Page 5
October 30, 2015
Non-interest Expense
On a linked quarter basis, the Company’s non-interest expenses declined by $681,000. The most significant decline in linked quarter operating expenses was a $759,000 decline in losses on the sale of real estate owned. For the three month period ended September 30, 2015, the Company’s salaries and benefits expenses declined by $44,000 and professional services expenses declined by $88,000 as compared to the three month period ended June 30, 2015.
For the three month period ended September 30, 2015, non-interest expenses declined by $10,000 as compared to the three month period ended September 30, 2014. For the three month period ended September 30, 2015, expense items increasing by more than 5% as compared to the three month period ended September 30, 2014, include:
Three Month Period Ended | Dollar | Percentage | ||||||||||||||
09/30/15 | 09/30/14 | Change | Change | |||||||||||||
Postage and communications | $ | 162 | $ | 140 | $ | 22 | 15.71 | % | ||||||||
Real estate owned expense | $ | 202 | ($ | 29 | ) | $ | 231 | 796.55 | % |
For the nine month period ended September 30, 2015, non-interest expenses were $23.3 million, an increase of $923,000 as compared to the nine month period ended September 30, 2014. For the nine month period ended September 30, 2015, the increase in non-interest expenses as compared to the nine month period ended September 30, 2014, is largely the result of an increase in compensation related to an increase in staffing for the Company’s loan production office, increases in the Company’s health insurance cost and losses on the sale of other real estate owned. For the nine month period ended September 30, 2015, expense items increasing by more than 5% as compared to the nine month period ended September 30, 2014, include:
Nine Month Period Ended | Dollar | Percentage | ||||||||||||||
09/30/15 | 09/30/14 | Change | Change | |||||||||||||
Salaries and benefits | $ | 12,148 | $ | 11,368 | $ | 780 | 6.86 | % | ||||||||
Professional services | $ | 1,177 | $ | 1,025 | $ | 152 | 14.83 | % | ||||||||
Loss on sale of other real estate owned | $ | 716 | $ | 160 | $ | 556 | 347.50 | % | ||||||||
Real estate owned expenses | $ | 406 | $ | 193 | $ | 213 | 110.36 | % | ||||||||
Other expenses | $ | 1,446 | $ | 1,358 | $ | 88 | 6.48 | % |
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HFBC Reports Third Quarter Results
Page 6
October 30, 2015
Balance Sheet
At September 30, 2015, consolidated assets were $882.7 million, a decline of $53.0 million as compared to December 31, 2014. For the nine month period ended September 30, 2015, the Company experienced an $18.4 million decrease in time deposits, a $9.0 million decrease in FHLB borrowings, a $16.7 million decrease in cash balances and a $22.3 million increase in net loan balances. To fund the growth in loan balances and reduction in FHLB borrowings and time deposits, the Company has reduced its balance in available for sale securities by $63.7 million as compared to December 31, 2014.
The Company
Prior to June 5, 2013, HopFed Bancorp, Inc. was a federally chartered savings and loan holding company with Heritage Bank as its wholly owned thrift subsidiary. On June 5, 2013, Heritage Bank’s legal name was changed to Heritage Bank USA, Inc., and its charter was converted to a Kentucky state chartered commercial bank with the Kentucky Department of Financial Institutions and the Federal Deposit Insurance Corporation as its regulators. Also on June 5, 2013, HopFed Bancorp, Inc. became a non-member federally chartered commercial bank holding company regulated by the Federal Reserve Board. HopFed Bancorp, Inc. is the holding company for Heritage Bank USA, Inc. headquartered in Hopkinsville, Kentucky. The Bank has eighteen offices in western Kentucky and middle Tennessee and a loan production office in Nashville, Tennessee. The Company has two additional operating divisions including Heritage Wealth Management of Murray, Kentucky, Hopkinsville, Kentucky, and Pleasant View, Tennessee, which offers a broad line of financial services. Heritage Mortgage Services of Clarksville, Tennessee, offers long term fixed rate 1- 4 family mortgages loans that are originated for the secondary market in all communities in the Company’s general market area. 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 USA, Inc. may be found on its websitewww.bankwithheritage.com.
Forward-Looking Information
Information contained in this press release, other than historical information, may be consideredforward-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. The Company undertakes no duty to update any forward-looking statement to conform the statement to actual results or changes in the Company’s expectations. Certain tabular presentations may not reconcile because of rounding.
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HFBC Reports Third Quarter Results
Page 7
October 30, 2015
HOPFED BANCORP, INC.
Consolidated Condensed Balance Sheets
(Dollars in thousands)
September 30, 2015 | December 31, 2014 | |||||||
(unaudited) | ||||||||
Assets | ||||||||
Cash and due from banks | $ | 18,110 | 34,389 | |||||
Interest-earning deposits | 5,647 | 6,050 | ||||||
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Cash and cash equivalents | 23,757 | 40,439 | ||||||
Federal Home Loan Bank stock, at cost | 4,428 | 4,428 | ||||||
Securities available for sale | 239,922 | 303,628 | ||||||
Loans held for sale | 5,298 | 1,444 | ||||||
Loans receivable, net of allowance for loan losses of $5,487 at September 30, 2015, and $6,289 at December 31, 2014 | 561,514 | 539,264 | ||||||
Accrued interest receivable | 4,119 | 4,576 | ||||||
Real estate and other assets owned | 1,736 | 1,927 | ||||||
Bank owned life insurance | 10,236 | 9,984 | ||||||
Premises and equipment, net | 24,371 | 22,940 | ||||||
Deferred tax assets | 1,198 | 2,261 | ||||||
Intangible asset | — | 33 | ||||||
Other assets | 6,157 | 4,861 | ||||||
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Total assets | $ | 882,736 | 935,785 | |||||
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Liabilities and Stockholders’ Equity | ||||||||
Liabilities: | ||||||||
Deposits: | ||||||||
Non-interest-bearing accounts | $ | 113,469 | 115,051 | |||||
Interest-bearing accounts | ||||||||
Interest-bearing checking accounts | 185,377 | 186,616 | ||||||
Savings and money market accounts | 93,821 | 97,726 | ||||||
Other time deposits | 313,531 | 331,915 | ||||||
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Total deposits | 706,198 | 731,308 | ||||||
Advances from Federal Home Loan Bank | 25,000 | 34,000 | ||||||
Repurchase agreements | 46,300 | 57,358 | ||||||
Subordinated debentures | 10,310 | 10,310 | ||||||
Advances from borrowers for taxes and insurance | 1,077 | 513 | ||||||
Dividends payable | 289 | 301 | ||||||
Accrued expenses and other liabilities | 4,739 | 3,593 | ||||||
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Total liabilities | 793,913 | 837,383 | ||||||
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This information is preliminary and based on Company data available at the time of the presentation.
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HFBC Reports Third Quarter Results
Page 8
October 30, 2015
HOPFED BANCORP, INC.
Consolidated Condensed Balance Sheets, Continued
(Dollars in thousands)
September 30, 2015 | December 31, 2014 | |||||||
(unaudited) | ||||||||
Stockholders’ equity: | ||||||||
Preferred stock, par value $0.01 per share; authorized - 500,000 shares; no shares issued and outstanding at September 30, 2015, and December 31, 2014 | — | — | ||||||
Common stock, par value $.01 per share; authorized 15,000,000 shares; 7,951,699 issued and 6,913,013 outstanding at September 30, 2015, and 7,949,665 issued and 7,171,282 outstanding at December 31, 2014 | 79 | 79 | ||||||
Additional paid-in-capital | 58,578 | 58,466 | ||||||
Retained earnings | 46,719 | 45,729 | ||||||
Treasury stock- common (at cost, 1,038,686 shares at September 30, 2015, and 778,383 shares at December 31, 2014) | (12,915 | ) | (9,429 | ) | ||||
Unallocated ESOP shares (at cost 562,937 shares at September 30, 2015, and no shares at December 31, 2014) | (7,397 | ) | — | |||||
Accumulated other comprehensive income , net of taxes | 3,759 | 3,557 | ||||||
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Total stockholders’ equity | 88,823 | 98,402 | ||||||
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Total liabilities and stockholders’ equity | $ | 882,736 | 935,785 | |||||
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This information is preliminary and based on Company data available at the time of the presentation.
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HFBC Reports Third Quarter Results
Page 9
October 30, 2015
HOPFED BANCORP, INC.
Consolidated Condensed Statements of Income
(Dollars in thousands)
Unaudited
For the Three Month Periods | For the Nine Month Periods | |||||||||||||||
Ended September 30, | Ended September 30, | |||||||||||||||
2015 | 2014 | 2015 | 2014 | |||||||||||||
Interest income: | ||||||||||||||||
Loans receivable | $ | 6,374 | 6,913 | 18,895 | 19,743 | |||||||||||
Securities available for sale - taxable | 1,237 | 1,562 | 4,953 | 5,035 | ||||||||||||
Securities available for sale - nontaxable | 398 | 514 | 1,267 | 1,589 | ||||||||||||
Interest-earning deposits | 3 | 5 | 11 | 19 | ||||||||||||
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Total interest income | 8,012 | 8,994 | 25,126 | 26,386 | ||||||||||||
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Interest expense: | ||||||||||||||||
Deposits | 1,246 | 1,354 | 3,751 | 4,313 | ||||||||||||
Advances from Federal Home Loan Bank | 71 | 430 | 206 | 1,292 | ||||||||||||
Repurchase agreements | 130 | 228 | 368 | 722 | ||||||||||||
Subordinated debentures | 186 | 174 | 553 | 551 | ||||||||||||
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Total interest expense | 1,633 | 2,186 | 4,878 | 6,878 | ||||||||||||
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Net interest income | 6,379 | 6,808 | 20,248 | 19,508 | ||||||||||||
Provision for loan losses | 275 | (892 | ) | 760 | (773 | ) | ||||||||||
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Net interest income after provision for loan losses | 6,104 | 7,700 | 19,488 | 20,281 | ||||||||||||
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Non-interest income: | ||||||||||||||||
Service charges | 750 | 879 | 2,184 | 2,505 | ||||||||||||
Merchant card income | 286 | 265 | 842 | 800 | ||||||||||||
Mortgage origination revenue | 345 | 316 | 865 | 507 | ||||||||||||
Gain on sale of securities | 103 | 294 | 552 | 548 | ||||||||||||
Income from bank owned life insurance | 108 | 65 | 252 | 226 | ||||||||||||
Financial services commission | 186 | 363 | 539 | 737 | ||||||||||||
Other operating income | 158 | 211 | 483 | 613 | ||||||||||||
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Total non-interest income | 1,936 | 2,393 | 5,717 | 5,936 | ||||||||||||
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This information is preliminary and based on Company data available at the time of the presentation.
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HFBC Reports Third Quarter Results
Page 10
October 30, 2015
HOPFED BANCORP, INC.
Consolidated Condensed Statements of Income, Continued
(Dollars in thousands, except share and per share data)
(Unaudited)
For the Three Month Periods | For the Nine Month Periods | |||||||||||||||
Ended September 30, | Ended September 30, | |||||||||||||||
2015 | 2014 | 2015 | 2014 | |||||||||||||
Non-interest expenses: | ||||||||||||||||
Salaries and benefits | $ | 3,960 | 3,881 | 12,148 | 11,368 | |||||||||||
Occupancy | 788 | 781 | 2,278 | 2,498 | ||||||||||||
Data processing | 724 | 730 | 2,117 | 2,194 | ||||||||||||
Franchise and deposit tax | 260 | 346 | 759 | 990 | ||||||||||||
Intangible amortization | — | 16 | 32 | 81 | ||||||||||||
Professional services | 380 | 397 | 1,177 | 1,025 | ||||||||||||
Deposit insurance and examination | 135 | 182 | 403 | 562 | ||||||||||||
Advertising | 337 | 368 | 983 | 1,023 | ||||||||||||
Postage and communications | 162 | 140 | 428 | 423 | ||||||||||||
Supplies | 107 | 156 | 364 | 459 | ||||||||||||
Loss (gain) on real estate owned | (18 | ) | 35 | 716 | 160 | |||||||||||
Real estate owned | 202 | (29 | ) | 406 | 193 | |||||||||||
Other operating expenses | 516 | 560 | 1,446 | 1,358 | ||||||||||||
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Total non-interest expense | 7,553 | 7,563 | 23,257 | 22,334 | ||||||||||||
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Income before income tax | 487 | 2,530 | 1,948 | 3,883 | ||||||||||||
Income tax expense (benefit) | (23 | ) | 577 | 200 | 651 | |||||||||||
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Net income | $ | 510 | 1,953 | 1,748 | 3,232 | |||||||||||
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Net income per share: | ||||||||||||||||
Basic | $ | 0.08 | $ | 0.27 | $ | 0.27 | $ | 0.44 | ||||||||
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Diluted | $ | 0.08 | $ | 0.27 | $ | 0.27 | $ | 0.44 | ||||||||
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Dividend per share | $ | 0.04 | $ | 0.04 | $ | 0.12 | $ | 0.12 | ||||||||
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Weighted average shares outstanding - basic | 6,359,556 | 7,265,597 | 6,493,449 | 7,348,708 | ||||||||||||
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Weighted average shares outstanding - diluted | 6,359,556 | 7,265,597 | 6,493,449 | 7,348,708 | ||||||||||||
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This information is preliminary and based on Company data available at the time of the presentation.
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HFBC Reports Third Quarter Results
Page 11
October 30, 2015
HOPFED BANCORP, INC.
Selected Financial Data
(Dollars in thousands)
For the Three | Change from | |||||||||||
Months Ended | Prior Quarter | |||||||||||
9/30/2015 | 6/30/2015 | |||||||||||
Interest income: | ||||||||||||
Loans receivable | $ | 6,374 | 6,231 | 143 | ||||||||
Securities available for sale - taxable | 1,237 | 1,268 | (31 | ) | ||||||||
Securities available for sale - nontaxable | 398 | 416 | (18 | ) | ||||||||
Interest-earning deposits | 3 | 4 | (1 | ) | ||||||||
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|
|
|
|
| |||||||
Total interest income | 8,012 | 7,919 | 93 | |||||||||
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|
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| |||||||
Interest expense: | ||||||||||||
Deposits | 1,246 | 1,245 | 1 | |||||||||
Advances from Federal Home Loan Bank | 71 | 66 | 5 | |||||||||
Repurchase agreements | 130 | 118 | 12 | |||||||||
Subordinated debentures | 186 | 183 | 3 | |||||||||
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|
|
|
|
| |||||||
Total interest expense | 1,633 | 1,612 | 21 | |||||||||
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|
|
|
|
| |||||||
Net interest income | 6,379 | 6,307 | 72 | |||||||||
Provision for loan losses | 275 | 270 | 5 | |||||||||
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|
|
|
| |||||||
Net interest income after provision for loan losses | 6,104 | 6,037 | 67 | |||||||||
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| |||||||
Non-interest income: | ||||||||||||
Service charges | 750 | 720 | 30 | |||||||||
Merchant card income | 286 | 286 | — | |||||||||
Mortgage orgination revenue | 345 | 343 | 2 | |||||||||
Gain on sale of securities | 103 | 83 | 20 | |||||||||
Income from bank owned life insurance | 108 | 73 | 35 | |||||||||
Financial services commission | 186 | 194 | (8 | ) | ||||||||
Other operating income | 158 | 169 | (11 | ) | ||||||||
|
|
|
|
|
| |||||||
Total non-interest income | 1,936 | 1,868 | 68 | |||||||||
|
|
|
|
|
|
This information is preliminary and based on Company data available at the time of the presentation
-MORE-
HFBC Reports Third Quarter Results
Page 12
October 30, 2015
HOPFED BANCORP, INC.
Selected Financial Data
(Dollars in thousands, except share and per share data)
For the Three | Change from | |||||||||||
Months Ended | Prior Quarter | |||||||||||
9/30/2015 | 6/30/2015 | |||||||||||
Non-interest expenses: | ||||||||||||
Salaries and benefits | $ | 3,960 | 4,004 | (44 | ) | |||||||
Occupancy | 788 | 752 | 36 | |||||||||
Data processing | 724 | 701 | 23 | |||||||||
Franchise and deposit tax | 260 | 251 | 9 | |||||||||
Intangible amortization | — | 16 | (16 | ) | ||||||||
Professional services | 380 | 468 | (88 | ) | ||||||||
Deposit insurance and examination | 135 | 151 | (16 | ) | ||||||||
Advertising | 337 | 340 | (3 | ) | ||||||||
Postage and communications | 162 | 134 | 28 | |||||||||
Supplies | 107 | 111 | (4 | ) | ||||||||
(Gain) loss on real estate owned | (18 | ) | 741 | (759 | ) | |||||||
Real estate owned | 202 | 67 | 135 | |||||||||
Other operating | 516 | 498 | 18 | |||||||||
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Total non-interest expense | 7,553 | 8,234 | (681 | ) | ||||||||
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| |||||||
Income (loss) before income tax expense | 487 | (329 | ) | 816 | ||||||||
Income tax expense (benefit) | (23 | ) | (212 | ) | 189 | |||||||
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| |||||||
Net income (loss) | $ | 510 | ($ | 117 | ) | $ | 627 | |||||
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Net income (loss) per share: | ||||||||||||
Basic | $ | 0.08 | ($ | 0.02 | ) | $ | 0.10 | |||||
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Fully diluted | $ | 0.08 | ($ | 0.02 | ) | $ | 0.10 | |||||
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Dividend per share | $ | 0.04 | $ | 0.04 | ||||||||
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| |||||||||
Weighted average shares outstanding - basic | 6,359,556 | 6,425,687 | ||||||||||
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| |||||||||
Weighted average shares outstanding - diluted | 6,359,556 | 6,425,687 | ||||||||||
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This information is preliminary and based on Company data available at the time of the presentation.
-MORE-
HFBC Reports Third Quarter Results
Page 13
October 30, 2015
HOPFED BANCORP, INC.
Selected Financial Data
The table below adjusts tax-free investment income for the nine month periods ended September 30, 2015, and September 30, 2014, by $625,000 and $774,000, respectively, for a tax equivalent rate using a cost of funds rate of 0.95% for the nine month period ended September 30, 2015, and 1.25% for the nine month period ended September 30, 2014. The table adjusts tax-free loan income by $5,000 and $9,000, respectively, for nine month periods ended September 30, 2015, and September 30, 2014, respectively, for a tax equivalent rate using the same cost of funds rate:
Average | Income and | Average | Average | Income and | Average | |||||||||||||||||||
Balance | Expense | Rates | Balance | Expense | Rates | |||||||||||||||||||
9/30/2015 | 9/30/2015 | 9/30/2015 | 9/30/2014 | 9/30/2014 | 9/30/2014 | |||||||||||||||||||
(Table Amounts in Thousands, Except Percentages) | ||||||||||||||||||||||||
Loans | $ | 550,047 | 18,900 | 4.58 | % | $ | 535,659 | 19,752 | 4.92 | % | ||||||||||||||
Investments AFS taxable | 208,721 | 4,953 | 3.16 | % | 259,615 | 5,035 | 2.59 | % | ||||||||||||||||
Investment AFS tax free | 53,859 | 1,892 | 4.68 | % | 63,321 | 2,363 | 4.98 | % | ||||||||||||||||
Interest bearing deposits | 5,096 | 11 | 0.29 | % | 9,819 | 19 | 0.26 | % | ||||||||||||||||
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|
|
|
|
|
|
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| |||||||||||||
Total interest earning assets | 817,723 | 25,756 | 4.20 | % | 868,414 | 27,169 | 4.17 | % | ||||||||||||||||
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| |||||||||||||||||
Other assets | 74,136 | 73,550 | ||||||||||||||||||||||
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| |||||||||||||||||||||
Total assets | $ | 891,859 | $ | 941,964 | ||||||||||||||||||||
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| |||||||||||||||||||||
Retail time deposits | 289,157 | 2,516 | 1.16 | % | 307,307 | 2,786 | 1.21 | % | ||||||||||||||||
Brokered deposits | 32,706 | 279 | 1.14 | % | 39,741 | 401 | 1.35 | % | ||||||||||||||||
MMDA & Savings | 95,016 | 146 | 0.20 | % | 96,278 | 145 | 0.20 | % | ||||||||||||||||
Interest bearing checking | 195,929 | 810 | 0.55 | % | 191,925 | 981 | 0.68 | % | ||||||||||||||||
FHLB borrowings | 17,315 | 206 | 1.59 | % | 44,985 | 1,292 | 3.83 | % | ||||||||||||||||
Repurchase agreements | 43,726 | 368 | 1.12 | % | 41,386 | 722 | 2.33 | % | ||||||||||||||||
Subordinated debentures | 10,310 | 553 | 7.15 | % | 10,310 | 551 | 7.13 | % | ||||||||||||||||
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|
|
|
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| |||||||||||||
Total interest bearing liabilities | 684,159 | 4,878 | 0.95 | % | 731,932 | 6,878 | 1.25 | % | ||||||||||||||||
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|
|
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| |||||||||||||||||
Non-interest bearing deposits | 112,198 | 105,325 | ||||||||||||||||||||||
Other liabilities | 4,363 | 5,026 | ||||||||||||||||||||||
Stockholders’ equity | 91,139 | 99,681 | ||||||||||||||||||||||
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| |||||||||||||||||||||
Total liabilities and stockholders’ equity | $ | 891,859 | $ | 941,964 | ||||||||||||||||||||
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|
| |||||||||||||||||||||
Net interest income | 20,878 | 20,291 | ||||||||||||||||||||||
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| |||||||||||||||||||||
Net interest spread | 3.25 | % | 2.92 | % | ||||||||||||||||||||
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| |||||||||||||||||||||
Net interest margin | 3.40 | % | 3.12 | % | ||||||||||||||||||||
|
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|
|
This information is preliminary and based on Company data available at the time of the presentation.
-MORE-
HFBC Reports Third Quarter Results
Page 14
October 30, 2015
HOPFED BANCORP, INC.
Selected Financial Data
The table below adjusts tax-free investment income for the three month periods ended September 30, 2015, and September 30, 2014, by $197,000 and $251,000, respectively, for a tax equivalent rate using a cost of funds rate of 0.94% for the three month period ended September 30, 2015, and 1.20% for the three month period ended September 30, 2014. The table adjusts tax-free loan income by $3,000 for each of the three month periods ended September 30, 2015, and September 30, 2014, for a tax equivalent rate using the same cost of funds rate:
Average | Income and | Average | Average | Income and | Average | |||||||||||||||||||
Balance | Expense | Rates | Balance | Expense | Rates | |||||||||||||||||||
9/30/2015 | 9/30/2015 | 9/30/2015 | 9/30/2014 | 9/30/2014 | 9/30/2014 | |||||||||||||||||||
(Table Amounts in Thousands, Except Percentages) | ||||||||||||||||||||||||
Loans | $ | 555,792 | 6,377 | 4.59 | % | $ | 535,774 | 6,916 | 5.16 | % | ||||||||||||||
Investments AFS taxable | 196,524 | 1,237 | 2.52 | % | 265,853 | 1,562 | 2.35 | % | ||||||||||||||||
Investment AFS tax free | 51,063 | 595 | 4.66 | % | 65,298 | 765 | 4.69 | % | ||||||||||||||||
Interest bearing deposits | 6,305 | 3 | 0.19 | % | 10,917 | 5 | 0.18 | % | ||||||||||||||||
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|
|
|
|
|
| |||||||||||||||||
Total interest earning assets | 809,684 | 8,212 | 4.06 | % | 877,842 | 9,248 | 4.21 | % | ||||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||||||
Other assets | 67,860 | 75,617 | ||||||||||||||||||||||
|
|
|
| |||||||||||||||||||||
Total assets | $ | 877,544 | $ | 953,459 | ||||||||||||||||||||
|
|
|
| |||||||||||||||||||||
Retail time deposits | 286,516 | 840 | 1.17 | % | 320,008 | 896 | 1.12 | % | ||||||||||||||||
Brokered deposits | 30,149 | 89 | 1.18 | % | 42,605 | 110 | 1.03 | % | ||||||||||||||||
MMDA & Savings | 94,679 | 45 | 0.19 | % | 94,522 | 49 | 0.21 | % | ||||||||||||||||
Interest bearing checking | 191,903 | 272 | 0.57 | % | 190,329 | 299 | 0.63 | % | ||||||||||||||||
FHLB borrowings | 10,685 | 71 | 2.66 | % | 42,970 | 430 | 4.00 | % | ||||||||||||||||
Repurchase agreements | 47,124 | 130 | 1.10 | % | 46,765 | 228 | 1.95 | % | ||||||||||||||||
Subordinated debentures | 10,310 | 186 | 7.22 | % | 10,310 | 174 | 6.75 | % | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total interest bearing liabilities | 671,366 | 1,633 | 0.97 | % | 747,509 | 2,186 | 1.17 | % | ||||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||||||
Non-interest bearing deposits | 114,319 | 103,112 | ||||||||||||||||||||||
Other liabilities | 4,574 | 4,660 | ||||||||||||||||||||||
Stockholders’ equity | 87,285 | 98,178 | ||||||||||||||||||||||
|
|
|
| |||||||||||||||||||||
Total liabilities and stockholders’ equity | $ | 877,544 | $ | 953,459 | ||||||||||||||||||||
|
|
|
| |||||||||||||||||||||
Net interest income | 6,579 | 7,062 | ||||||||||||||||||||||
|
|
|
| |||||||||||||||||||||
Interest rate spread | 3.09 | % | 3.04 | % | ||||||||||||||||||||
|
|
|
| |||||||||||||||||||||
Net interest margin | 3.25 | % | 3.22 | % | ||||||||||||||||||||
|
|
|
|
This information is preliminary and based on Company data available at the time of the presentation.
-END-