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

Exhibit 99.1

NEWS

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

HOPFED BANCORP, INC. REPORTS SECOND QUARTER RESULTS

HOPKINSVILLE, Ky. (July 29, 2016) – HopFed Bancorp, Inc. (NASDAQ: HFBC) (the “Company”), the holding company for Heritage Bank USA, Inc. (the “Bank”), today reported results for the three and six month periods ended June 30, 2016. For the three month period ended June 30, 2016, the Company reported net income of $304,000, or $0.05 per share, basic and diluted, compared to a net loss of $117,000, or ($0.02) per share basic and diluted, for the three month period ended June 30, 2015. For the six month period ended June 30, 2016, the Company’s net income was $813,000, or $0.13 per share, basic and diluted, compared to net income of $1.2 million, or $0.19 per share basic and diluted, for the six month period ended June 30, 2015.

Commenting on the second quarter results, John E. Peck, President and Chief Executive Officer, said, “The Company’s mortgage service division continues to find success in growing their business relationships. For the six month period ended June 30, 2016, mortgage origination revenue was $803,000, as compared to $520,000 in the six month period ended June 30, 2015. We look forward to adding a Nashville, Tennessee, location for Heritage Mortgage Services in the near future.”

Mr. Peck continued, “The Company’s operating results were negatively impacted by an increase in non-accrual loans. At June 30, 2016, Company’s non-accrual loans totaled $11.5 million and our non-accrual interest was approximately $515,000. At March 31, 2016, non-accrual loans totaled $5.0 million and non-accrual interest was approximately $285,000.” Mr. Peck concluded.

Financial Highlights

• At June 30, 2016, the Company’s tangible book value was $14.31 per share and tangible common equity ratio was 10.32%. The Company’s tangible book value and common equity ratio computations do not include 524,929 shares of common stock held by the Company’s ESOP that the Company has currently not committed to release.

• The Company purchased 62,561 shares of its common stock in the three month period ended June 30, 2016, at a weighted average price of $11.56 per share. For the six month period ended June 30, 2016, the Company purchased 138,218 shares of its common stock at a weighted average price of $11.75 per share. At June 30, 2016, the Company owns 1,224,106 shares of treasury stock at a weighted average cost of $12.33 per share.

• At June 30, 2016, net loans totaled $560.8 million, a $4.4 million increase as compared to December 31, 2015, and a $6.0 million increase as compared to March 31, 2016. The Company is encouraged by the size and quality of our loan pipeline.

• The Company’s estimated Tier 1 Leverage Ratio and Total Risk Based Capital Ratio at June 30, 2016, were 10.85% and 17.23%, respectively. The Bank’s Tier 1 Leverage Ratio and Total Risk Based Capital Ratio at June 30, 2015, were 10.64% and 17.01%, respectively.

-MORE-

HFBC Reports Second Quarter Results

Page 2

July 29, 2016

Asset Quality

At June 30, 2016, the Company’s level of non-accrual loans totaled $11.5 million, as compared to $7.4 million at December 31, 2015. A summary of non-accrual loans at June 30, 2016, and December 31, 2015, is as follows:

	June 30, 2016		December 31, 2015
	(Dollars in Thousands)
One-to-four family mortgages	$	469	$	2,234
Home equity line of credit		54		48
Multi-family		1,772		1,968
Land		8,281		1,553
Non-residential real estate		28		247
Farmland		—		166
Consumer loans		31		8
Commercial loans		888		1,198
Total non-accrual loans	$	11,523	$	7,422

The increase in non-accrual loans at June 30, 2016, as compared to December 31, 2015, is largely the result of one land development relationship that has been classified as substandard since July of 2013. The collateral for the loan consist of undeveloped land that is being held for future commercial development and a single family residence.

At June 30, 2016, the Company had one lending relationship, with a balance of $2.7 million, past due more than 90 days and still accruing interest. The lending relationship consists of approximately $1.2 million in loans secured by land held for development, approximately $1.2 million in loans secured by non-residential real estate and approximately $300,000 in loans secured by single family residential properties. The Company’s loan to value ratio on this relationship is very strong and we anticipate the collection of all principal and interest due.

At June 30, 2016, non-performing assets plus loans past due more than 90 days and still accruing interest totaled $15.0 million, or 1.74% of total assets. At December 31, 2015, non-performing assets plus loans past due more than 90 days and still accruing interest was $9.2 million, or 1.01% of total assets. A summary of the activity in other real estate owned for the six month period ended June 30, 2016, is as follows:

	Balance		Activity During 2016					Reduction		Gain (Loss)			Balance
	12/31/2015		Foreclosures		Proceeds			in Values		on Sale			6/30/2016
	(Dollars in Thousands)
One-to-four family mortgages	$	55		—		(43	)		—		(12	)	$	—
Multi-family real estate		—		141		—			—		—			141
Land		943		130		(913	)		—		12			172
Non-residential real estate		738		—		(270	)		—		(9	)		459
Consumer		—		15		(19	)		—		4			—
Total	$	1,736		286		(1,245	)		—		(5	)	$	772

-MORE-

HFBC Reports Second Quarter Results

Page 3

July 29, 2016

Asset Quality (continued)

For the six month period ended June 30, 2016, the Company’s balance of loans classified as Troubled Debt Restructurings (“TDRs”) increased from $5.5 million to $6.5 million. The increase is the result of one lending relationship in which the customer’s payment terms were revised to provide for interest only payments while the customer attempts to sell the collateral. A summary of the activity in loans classified as TDRs for the six month period ended June 30, 2016, is as follows:

	Balance at		New		Loss or		Loan			Removed from (Taken to)		Balance at
	12/31/15		TDR		Foreclosure		Amortization			Non-accrual		06/30/16
	(Dollars in Thousands)
Multi-family real estate		—		816		—		—			—		816
Non-residential real estate	$	5,536		228		—		(43	)		—		5,721
Total performing TDR	$	5,536		1,044		—		(43	)		—	$	6,537

At June 30, 2016, the Company’s level of loans classified as substandard was $37.6 million as compared to $28.1 million at December 31, 2015. At June 30, 2016, the Company’s classified loan to risk-based capital ratio was 37.7%. The Company’s specific reserve for impaired loans was $463,000 at June 30, 2016, and $630,000 at December 31, 2015. A summary of the level of classified loans and the Company’s allocation of its allowance for loan loss by loan type at June 30, 2016, is as follows:

											Specific		Allowance
											Allowance		for
			Special		Impaired Loans						for		Performing
	Pass		Mention		Substandard		Doubtful		Total		Impairment		Loans
	(Dollars in Thousands)
One-to-four family mortgages	$	142,893		753		2,213		—		145,859		206		1,119
Home equity line of credit		32,767		21		275		—		33,063		—		306
Junior liens		1,616		33		12		—		1,661		—		10
Multi-family		26,460		—		4,829		—		31,289		—		153
Construction		36,923		—		—		—		36,923		—		746
Land		11,560		38		10,283		—		21,881		—		1,096
Non-residential real estate		144,028		282		10,348		—		154,658		108		1,056
Farmland		43,321		—		2,272		—		45,593		—		577
Consumer loans		8,229		—		253		—		8,482		50		113
Commercial loans		80,777		324		7,157		—		88,258		99		885
Total	$	528,574		1,451		37,642		—		567,667		463		6,061

-MORE-

HFBC Reports Second Quarter Results

Page 4

July 29, 2016

Net Interest Income

For the three month period ended June 30, 2016, total interest income was $7.7 million, as compared to $8.1 million for the three month period ended March 31, 2016, and $7.9 million for the three month period ended June 30, 2015.

The decline in interest income for the three month period ended June 30, 2016, is largely the result of the increase of unrecognized interest income on non-accrual loans. At June 30, 2016, non-accrual interest on loans was $515,000, as compared to $285,000 at March 31, 2016, and $193,000 at June 30, 2015.

For the three month period ended June 30, 2016, total interest expense was $1.3 million, representing a linked quarter decline of $137,000 and a decline of $344,000 as compared to the three month period ended June 30, 2015. The decline of interest expense is largely attributable to maturities of higher costing time deposits, reducing the Company’s interest expense on deposits by $88,000 on a linked quarter basis and by $238,000 as compared to the three month period ended June 30, 2015. For the three month period ended June 30, 2016, the Company’s interest expense on subordinated debentures declined by $89,000 as compared to the three month period ended June 30, 2015.

For the three month period ended June 30, 2016, the Company’s net interest income was $6.4 million, compared to $6.7 million for the three month period ended March 31, 2016, and $6.3 million for the three month period ended June 30, 2015. For the three month period ended June 30, 2016, the Company’s net interest margin was 3.28%, as compared to 3.39% for the three month period ended March 31, 2016, and 3.17% for the three month period ended June 30, 2015.

For the six month period ended June 30, 2016, the Company’s total interest income was $15.8 million, as compared to $17.1 million for the six month period ended June 30, 2015. The $1.3 million decline in total interest income was largely the result of a decline in investment income. For the six month period ended June 30, 2015, the Company experienced an $830,000 recovery on a previously non-accrual investment. In addition to the investment income recovery, the combined average balance of taxable and tax free investments for the six month period ended June 30, 2016, declined by $29.9 million as compared to the six month period ended June 30, 2015.

For the six month period ended June 30, 2016, the Company’s interest expense was $2.7 million, as compared to $3.2 million for the six month period ended June 30, 2015. The decline of interest expense is the result of both lower interest rates and reduced average balances of time deposits. For the six month period ended June 30, 2016, the average balance of retail time deposits were $258.8 million and their average cost was 0.94%. For the six month period ended June 30, 2015, the average balance of retail time deposits were $290.5 million and their average cost was 1.15%. For the six month period ended June 30, 2016, the Company’s interest expense on subordinated debentures was $188,000, or 3.65%, as compared to $367,000, or 7.12%, for the six month period ended June 30, 2015. The decline in subordinated debentures interest expense is the result of the maturity of the Company’s interest rate swap on its debenture.

For the six month period ended June 30, 2016, the Company’s net interest income was $13.1 million, as compared to $13.9 million for the six month period ended June 30, 2015. For the six month period ended June 30, 2016, the Company’s net interest margin was 3.34%, as compared to 3.48% for the six month period ended June 30, 2015. For the six month period ended June 30, 2015, the recovery of non-accrual investment interest added 0.20% to the Company’s net interest margin.

-MORE-

HFBC Reports Second Quarter Results

Page 5

July 29, 2016

Non-interest Income

On a linked quarter basis, total non-interest income declined by $50,000 largely due to a $239,000 decline in gains on the sale of securities. During the three month period ended March 31, 2016, the Company utilized proceeds from the sale of securities to fund a reduction in high cost time deposits. The decline in linked quarter gains on the sale of securities was partially offset by a $67,000 increase in mortgage origination revenue and a $58,000 increase in financial services income.

For the three month period ended June 30, 2016, total non-interest income was $102,000 higher as compared to the three month period ended June 30, 2015. For the three month period ended June 30, 2016, service charge income was $698,000, representing a $22,000 decline as compared to the three month period ended June 30, 2015. For the three month period ended June 30, 2016, merchant card income was $314,000, as compared to $286,000 for the three month period ended June 30, 2015. The Company’s mortgage origination revenue for the three month period ended June 30, 2016, was $435,000, as compared to $343,000 for the three month period ended June 30, 2015.

For the six month period ended June 30, 2016, non-interest income was $4.0 million, as compared to $3.8 million for the six month period ended June 30, 2015. The increase in non-interest income for the six month period ended June 30, 2016, as compared to the six month period ended June 30, 2015, is largely the result of a $283,000 increase in mortgage origination revenue. For the six month period ended June 30, 2016, other operating income was $379,000, as compared to $325,000 for the six month period ended June 30, 2015.

Non-interest Expense

On a linked quarter basis, the Company’s non-interest expenses declined by $74,000. On a linked quarter basis, the most significant increases in operating expenses was a $143,000 increase in real estate owned expenses due to legal expenses and a $51,000 increase in advertising expenses. For the three month period ended June 30, 2016, the Company’s salaries and benefits expenses declined by $87,000 and other operating expense declined by $144,000, respectively, as compared to the three month period ended March 31, 2016.

For the three month period ended June 30, 2016, non-interest expenses declined by $625,000 as compared to the three month period ended June 30, 2015. For the three month period ended June 30, 2016, expense items changing by more than $50,000 as compared to the three month period ended June 30, 2015, include:

	Three Month Period Ended					Dollar			Percentage
	06/30/16			06/30/15		Change			Change
Salaries and benefits	$	3,901		$	4,004	($	103	)		-2.57	%
Professional services	$	305		$	468	($	163	)		-34.83	%
(Gain) loss on sale of other real estate owned	($	1	)	$	741	($	742	)		-100.13	%
Real estate owned	$	202		$	67	$	135			201.49	%
Other expenses	$	589		$	498	$	91			18.27	%

-MORE-

HFBC Reports Second Quarter Results

Page 6

July 29, 2016

Non-interest Expense (continued)

For the six month period ended June 30, 2016, non-interest expenses were $15.3 million, a decline of $412,000 as compared to the six month period ended June 30, 2015. For the six month period ended June 30, 2016, expense items changing by more than $75,000 as compared to the six month period ended June 30, 2015, include:

	Six Month Period Ended				Dollar			Percentage
	06/30/16		06/30/15		Change			Change
Salaries and benefits	$	7,889	$	8,188	($	299	)		-3.65	%
Occupancy	$	1,588	$	1,490	$	98			6.58	%
Professional services	$	640	$	797	($	157	)		-19.70	%
Loss on sale of other real estate owned	$	8	$	734	($	726	)		-98.91	%
Other expenses	$	1,322	$	930	$	392			42.15	%

Balance Sheet

At June 30, 2016, consolidated assets were $861.7 million, a decline of $41.5 million as compared to December 31, 2015. For the six month period ended June 30, 2016, the Company experienced a $28.3 million decrease in time deposits, a $4.0 million decrease in FHLB borrowings, a $36.3 million decrease in cash balances and a $4.4 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 $4.6 million, to $232.6 million at June 30, 2016, as compared to December 31, 2015.

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.

-MORE-

HFBC Reports Second Quarter Results

Page 7

July 29, 2016

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.

-MORE-

HFBC Reports Second Quarter Results

Page 8

July 29, 2016

HOPFED BANCORP, INC.

Consolidated Condensed Balance Sheets

(Dollars in thousands)

	June 30, 2016		December 31, 2015
	(unaudited)
Assets
Cash and due from banks	$	14,826		46,926
Interest-earning deposits		3,545		7,772
Cash and cash equivalents		18,371		54,698
Federal Home Loan Bank stock, at cost		4,428		4,428
Securities available for sale		232,585		237,177
Loans held for sale		1,637		2,792
Loans receivable, net of allowance for loan losses of $6,524 at June 30, 2016, and $5,700 at December 31, 2015		560,759		556,349
Accrued interest receivable		3,781		4,139
Real estate and other assets owned		772		1,736
Bank owned life insurance		10,480		10,319
Premises and equipment, net		23,730		24,034
Deferred tax assets		1,615		2,642
Other assets		3,585		4,840
Total assets	$	861,743		903,154
Liabilities and Stockholders’ Equity
Liabilities:
Deposits:
Non-interest-bearing accounts	$	121,852		125,070
Interest-bearing accounts
Interest-bearing checking accounts		190,593		203,779
Savings and money market accounts		100,772		95,893
Other time deposits		286,410		314,664
Total deposits		699,627		739,406
Advances from Federal Home Loan Bank		11,000		15,000
Repurchase agreements		47,582		45,770
Subordinated debentures		10,310		10,310
Advances from borrowers for taxes and insurance		1,167		614
Dividends payable		285		287
Accrued expenses and other liabilities		2,820		4,137
Total liabilities		772,791		815,524

This information is preliminary and based on Company data available at the time of the presentation.

-MORE-

HFBC Reports Second Quarter Results

Page 9

July 29, 2016

HOPFED BANCORP, INC.

Consolidated Condensed Balance Sheets, Continued

(Dollars in thousands)

	June 30, 2016			December 31, 2015
	(unaudited)
Stockholders’ equity:
Preferred stock, par value $0.01 per share; authorized - 500,000 shares; no shares issued and outstanding at June 30, 2016, and December 31, 2015		—			—
Common stock, par value $.01 per share; authorized 15,000,000 shares; 7,962,522 issued and 6,738,416 outstanding at June 30, 2016, and 7,951,699 issued and 6,865,811 outstanding at December 31, 2015		80			79
Additional paid-in-capital		58,648			58,604
Retained earnings		47,438			47,124
Treasury stock- common (at cost, 1,224,106 shares at June 30, 2016, and 1,085,888 shares at December 31, 2015)		(15,095	)		(13,471	)
Unallocated ESOP shares (at cost 524,929 shares at June 30, 2016, and 546,413 shares at December 31, 2015)		(6,898	)		(7,180	)
Accumulated other comprehensive income, net of taxes		4,779			2,474
Total stockholders’ equity		88,952			87,630
Total liabilities and stockholders’ equity	$	861,743			903,154

This information is preliminary and based on Company data available at the time of the presentation.

-MORE-

HFBC Reports Second Quarter Results

Page 10

July 29, 2016

HOPFED BANCORP, INC.

Consolidated Condensed Statements of Income (Loss)

(Dollars in thousands)

Unaudited

	For the Three Month Periods				For the Six Month Periods
	Ended June 30,				Ended June 30,
	2016		2015		2016		2015
Interest income:
Loans receivable	$	6,141		6,231		12,606		12,521
Securities available for sale - taxable		1,198		1,268		2,445		3,716
Securities available for sale - nontaxable		340		416		693		869
Interest-earning deposits		12		4		28		8
Total interest income		7,691		7,919		15,772		17,114
Interest expense:
Deposits		1,007		1,245		2,102		2,505
Advances from Federal Home Loan Bank		28		66		101		135
Repurchase agreements		139		118		282		238
Subordinated debentures		94		183		188		367
Total interest expense		1,268		1,612		2,673		3,245
Net interest income		6,423		6,307		13,099		13,869
Provision for loan losses		465		270		923		485
Net interest income after provision for loan losses		5,958		6,037		12,176		13,384
Non-interest income:
Service charges		698		720		1,375		1,434
Merchant card income		314		286		605		556
Mortgage origination revenue		435		343		803		520
Gain on sale of securities		52		83		343		449
Income from bank owned life insurance		77		73		161		144
Financial services commission		191		194		324		353
Other operating income		203		169		379		325
Total non-interest income		1,970		1,868		3,990		3,781

This information is preliminary and based on Company data available at the time of the presentation.

-MORE-

HFBC Reports Second Quarter Results

Page 11

July 29, 2016

HOPFED BANCORP, INC.

Consolidated Condensed Statements of Income (Loss), Continued

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

(Unaudited)

	For the Three Month Periods						For the Six Month Periods
	Ended June 30,						Ended June 30,
	2016			2015			2016		2015
Non-interest expenses:
Salaries and benefits	$	3,901			4,004			7,889		8,188
Occupancy		801			752			1,588		1,490
Data processing		704			701			1,431		1,393
State deposit tax		247			251			495		499
Intangible amortization		—			16			—		32
Professional services		305			468			640		797
Deposit insurance and examination		159			151			332		268
Advertising		371			340			691		646
Postage and communications		172			134			327		266
Supplies		159			111			308		257
Loss (gain) on real estate owned		(1	)		741			8		734
Real estate owned		202			67			261		204
Other operating		589			498			1,322		930
Total non-interest expense		7,609			8,234			15,292		15,704
Income (loss) before income tax		319			(329	)		874		1,461
Income tax expense (benefit)		15			(212	)		61		223
Net income (loss)	$	304			(117	)		813		1,238
Net income (loss) per share:
Basic	$	0.05		($	0.02	)	$	0.13	$	0.19
Diluted	$	0.05		($	0.02	)	$	0.13	$	0.19
Dividend per share	$	0.04		$	0.04		$	0.08	$	0.08
Weighted average shares outstanding - basic		6,232,457			6,425,687			6,265,106		6,588,845
Weighted average shares outstanding - diluted		6,232,457			6,425,687			6,265,106		6,588,845

This information is preliminary and based on Company data available at the time of the presentation.

-MORE-

HFBC Reports Second Quarter Results

Page 12

July 29, 2016

HOPFED BANCORP, INC.

Selected Financial Data

(Dollars in thousands)

	For the Three
	Months Ended
					Change from
	6/30/2016		3/31/2016		Prior Quarter
Interest and dividend income:
Loans receivable		6,141		6,465		(324	)
Investment in securities, taxable		1,198		1,247		(49	)
Nontaxable securities available for sale		340		353		(13	)
Interest-earning deposits		12		16		(4	)
Total interest and dividend income		7,691		8,081		(390	)
Interest expense:
Deposits		1,007		1,095		(88	)
Advances from Federal Home Loan Bank		28		73		(45	)
Repurchase agreements		139		143		(4	)
Subordinated debentures		94		94		—
Total interest expense		1,268		1,405		(137	)
Net interest income		6,423		6,676		(253	)
Provision for loan losses		465		458		7
Net interest income after provision for loan losses		5,958		6,218		(260	)
Non-interest income:
Service charges		698		677		21
Merchant card income		314		291		23
Mortgage orgination revenue		435		368		67
Gain on sale of securities		52		291		(239	)
Income from bank owned life insurance		77		84		(7	)
Financial services commission		191		133		58
Other operating income		203		176		27
Total non-interest income		1,970		2,020		(50	)

This information is preliminary and based on Company data available at the time of the presentation

-MORE-

HFBC Reports Second Quarter Results

Page 13

July 29, 2016

HOPFED BANCORP, INC.

Selected Financial Data

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

	For the Three
	Months Ended
						Change from
	6/30/2016			3/31/2016		Prior Quarter
Non-interest expenses:
Salaries and benefits	$	3,901			3,988		(87	)
Occupancy		801			787		14
Data processing		704			727		(23	)
State deposit tax		247			248		(1	)
Professional services		305			335		(30	)
Deposit insurance and examination		159			173		(14	)
Advertising		371			320		51
Postage and communications		172			155		17
Supplies expense		159			149		10
Loss (gain) on real estate owned		(1	)		9		(10	)
Real estate owned		202			59		143
Other operating		589			733		(144	)
Total non-interest expense		7,609			7,683		(74	)
Income before income tax expense		319			555		(236	)
Income tax expense		15			46		(31	)
Net income		304			509		(205	)
Net income per share to common stockholders
Basic	$	0.05		$	0.08		(0.03	)
Fully diluted	$	0.05		$	0.08		(0.03	)
Dividend per share	$	0.04		$	0.04
Weighted average shares outstanding - basic		6,232,457			6,297,755
Weighted average shares outstanding - diluted		6,232,457			6,297,755

This information is preliminary and based on Company data available at the time of the presentation.

-MORE-

HFBC Reports Second Quarter Results

Page 14

July 29, 2016

HOPFED BANCORP, INC.

Selected Financial Data

The table below adjusts tax-free investment income for the six month periods ended June 30, 2016, and June 30, 2015, by $344,000 and $429,000, respectively, for a tax equivalent rate using a cost of funds rate of 0.80% for the six month period ended June 30, 2016, and 0.94% for the six month period ended June 30, 2015. The table adjusts tax-free loan income by $13,000 and $7,000, respectively, for six month periods ended June 30, 2016, and June 30, 2015, 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
	6/30/2016		6/30/2016			6/30/2016			6/30/2015		6/30/2015			6/30/2015
	(Table Amounts in Thousands, Except Percentages)
Loans	$	556,562		12,619			4.53	%	$	547,071		12,528			4.58	%
Investments AFS taxable		199,129		2,445			2.46	%	$	214,920		3,716			3.46	%
Investment AFS tax free		41,202		1,037			5.04	%	$	55,281		1,298			4.70	%
Interest bearing deposits		9,508		28			0.59	%	$	6,046		8			0.26	%
Total interest earning assets		806,401		16,129			4.00	%		823,318		17,550			4.26	%
Other assets		77,219								73,916
Total assets	$	883,620							$	897,234
Retail time deposits		258,776		1,218			0.94	%		290,499		1,676			1.15	%
Brokered deposits		34,478		187			1.08	%		34,006		190			1.12	%
Saving & MMDA		98,223		87			0.18	%		100,242		101			0.20	%
Interest bearing checking		209,810		610			0.58	%		192,921		538			0.56	%
FHLB borrowings		12,297		101			1.64	%		20,685		135			1.31	%
Repurchase agreements		43,127		282			1.31	%		41,999		238			1.13	%
Subordinated debentures		10,310		188			3.65	%		10,310		367			7.12	%
Total interest bearing liabilities		667,021		2,673			0.80	%		690,662		3,245			0.94	%
Non-interest bearing deposits		124,379								111,120
Other liabilities		3,270								3,413
Stockholders’ equity		88,950								92,039
Total liabilities and stockholders’ equity	$	883,620							$	897,234
Net interest income				13,456								14,305
Net interest spread							3.20	%							3.32	%
Net interest margin				3.34	%							3.48	%

This information is preliminary and based on Company data available at the time of the presentation.

-MORE-

HFBC Reports Second Quarter Results

Page 15

July 29, 2016

HOPFED BANCORP, INC.

Selected Financial Data

The table below adjusts tax-free investment income for the three month periods ended June 30, 2016, and June 30, 2015, by $169,000 and $205,000, respectively, for a tax equivalent rate using a cost of funds rate of 0.77% for the three month period ended June 30, 2016, and 0.94% for the three month period ended June 30, 2015. The table adjusts tax-free loan income by $6,000 for three month period ended June 30, 2016, and $5,000 for the three month period ended June 30, 2015, 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
	6/30/2016		6/30/2016			6/30/2016			6/30/2015		6/30/2015			6/30/2015
	(Table Amounts in Thousands, Except Percentages)
Loans	$	555,147		6,147			4.43	%	$	552,992		6,236			4.51	%
Investments AFS taxable		200,496		1,198			2.39	%		209,907		1,268			2.42	%
Investment AFS tax free		40,306		509			5.05	%		52,960		621			4.69	%
Interest bearing deposit		9,525		12			0.50	%		6,107		4			0.26	%
Total interest earning assets		805,474		7,866			3.91	%		821,966		8,129			3.96	%
Other assets		67,697								68,467
Total assets	$	873,171							$	890,433
Retail time deposits		253,244		578			0.91	%		288,618		831			1.15	%
Brokered deposits		32,971		88			1.07	%		32,669		94			1.15	%
Savings & MMDA		99,054		42			0.17	%		100,776		51			0.20	%
Interest bearing checking		206,284		299			0.58	%		194,224		269			0.55	%
FHLB borrowings		11,000		28			1.02	%		18,231		66			1.45	%
Repurchase agreements		42,510		139			1.31	%		41,478		118			1.14	%
Subordinated debentures		10,310		94			3.65	%		10,310		183			7.10	%
Total interest bearing liabilities		655,373		1,268			0.77	%		686,306		1,612			0.94	%
Non-interest bearing deposits		125,833								110,379
Other liabilities		3,302								3,353
Stockholders’ equity		88,663								90,395
Total liabilities and stockholders’ equity	$	873,171							$	890,433
Net interest income				6,598								6,517
Interest rate spread							3.14	%							3.02	%
Net interest margin				3.28	%							3.17	%

This information is preliminary and based on Company data available at the time of the presentation.

-END-