Hopfed Bancorp (HFBC) 8-K Hopfed Bancorp, Inc. Reports Growth In Net Income

Exhibit 99.1

NEWS
FOR IMMEDIATE RELEASE	CONTACT:	John E. Peck
		President and CEO
		(270) 885-1171

HOPFED BANCORP, INC. REPORTS GROWTH IN NET INCOME

AND LOANS IN THE FIRST QUARTER OF 2018

Pre-Tax Income up 23.6% Year-over-Year

First Quarter Loan Growth of $23.3 Million to $665.2 Million

HOPKINSVILLE, KY (April 27, 2018) – HopFed Bancorp, Inc. (NASDAQ: HFBC) (the “Company”), the holding company for Heritage Bank USA, Inc. (the “Bank”), today reported operating results for the three month period ended March 31, 2018. For the three month period ended March 31, 2018, net income was $1.1 million, or $0.18 per share, compared to $935,000, or $0.15 per share, for the three month period ended March 31, 2017.

Commenting on the first quarter results, John E. Peck, President and Chief Executive Officer, said, “We are excited to report that loans grew by $23.3 million in the three month period ended March 31, 2018. Economic activity in our market remains strong, providing a robust pipeline of new loan opportunities. For the three month period ended March 31, 2018, net interest income was $7.2 million, an increase of $432,000 compared to the three month period ended March 31, 2017. On a linked quarter basis, our net interest margin improved to 3.45% from 3.41% despite the tax law change that reduced the tax equivalent yield of our municipal bond portfolio by 0.78%. We remain confident in our Company’s future earning potential due to our strong asset quality, the size of our loan pipeline and the strength of our local economy.”

Financial Highlights

• In the three month period ended March 31, 2018, total loans increased $23.3 million, representing an annualized growth rate of 14.5%. At March 31, 2018, total loans originated and outstanding in the Nashville, Tennessee loan production office were $80.5 million, compared to $48.3 million at March 31, 2017.

• Non-accrual loans are $2.0 million, or 0.30% of total loans, at March 31, 2018, compared to $8.9 million, or 1.44% of total loans, at March 31, 2017.

• At March 31, 2018, the Company held 1,340,394 shares of treasury stock with a weighted average cost of $12.44 per share. The Company may purchase an additional 297,966 shares of treasury stock under our current repurchase program. In the three month period ended March 31, 2018, the Company purchased 2,034 shares of treasury stock at a weighted average cost of $14.14 per share.

• At March 31, 2018, the Company’s book value was $13.97 per share and the Tangible Common Equity Ratio was 9.49%. The Company’s book value computation does not include 423,679 unearned ESOP shares.

-MORE-

HFBC Reports First Quarter Results

Page 2

April 27, 2018

Results of Operations

In the three month periods ended March 31, 2018, December 31, 2017 and March 31, 2017, net interest income was $7.2 million, $7.0 million and $6.8 million. The improved level of net interest income is largely the result of loan portfolio growth. For the three month period ended March 31, 2018, the average balance of net loans was $647.2, compared to $631.5 million for the three month period ended December 31, 2017 and $615.4 million for the three month period ended March 31, 2017.

For the three month period ended March 31, 2018, the Company’snon-interest income was $1.7 million compared to $2.3 million for the three month periods ended March 31, 2017. In the three month period ended March 31, 2017, the Company received $160,000 of tax free payment on a bank owned life insurance policy and $250,000 from aone-time reimbursement from a vendor. For the three month period ended March 31, 2018, service charge income was $706,000 compared to $804,000 for the three month period ended March 31, 2017, respectively. Beginning January 1, 2017, the Company revised our retail transaction account product offerings which reduced the amount of transaction accounts that were not being assessed a monthly fee. During the first six months of 2017, the Company experienced elevated levels of service charge income as a result of these changes.

On a linked quarter basis, totalnon-interest income declined by $124,000. The decline in linked quarternon-interest income was largely the result of a $95,000 decline in service charge income and a $55,000 decline in mortgage origination income due to increases in long term interest rates. The decline in linked quarter service charge income is largely a seasonal issue that occurs as consumer spending declines following the fourth quarter holiday season.

For the three month periods ended March 31. 2018 and March 31, 2017,non-interest expenses were $7.5 million and $7.7 million, respectively. For the three months ended March 31, 2018, the increase in professional expenses was largely the result of an $180,000 increase in legal expenses compared to the three month period ended March 31, 2017. The table below outlines the most significant changes innon-interest expenses for the three month period ended March 31, 2018 and March 31, 2017:

	March 31, 2018			March 31, 2017		Dollar Change			Percentage Change
	(Dollars in Thousands, Except Percentages)
Salaries and benefits	$	4,117		$	4,236	($	119	)		-2.81	%
State deposit tax		169			231		(62	)		-26.84	%
Professional services		466			348		118			33.91	%
Advertising		308			381		(73	)		-19.16	%
Foreclosure, net		(6	)		108		(114	)		-105.56	%
Other operating expenses		920			846		74			8.75	%

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

-MORE-

HFBC Reports First Quarter Results

Page 3

April 27, 2018

Results of Operations (continued)

On a linked quarter basis, the Company’snon-interest expenses declined by $266,000. The linked quarter decline innon-interest expense was largely the result of a reduction in legal expenses. On a linked quarter basis, salaries and benefits expenses increased $200,000, or 5.1%. The increase in salaries and benefits expense includes approximately $164,000 related to seasonal vacation accruals and $87,000 related to employee payroll expenses. The table below outlines the most significant changes innon-interest expenses on a linked quarter basis:

	March 31, 2018			December 31, 2017			Change			Change
	(Dollars in Thousands, Except Percentages)
Salaries and benefits	$	4,117		$	3,917		$	200			5.11	%
Professional services		466			1,095			(629	)		-57.44	%
Advertising		308			365			(57	)		-15.62	%
Foreclosure, net		(6	)		(80	)		74			-92.50	%
Other operating expenses		920			861			59			6.85	%

Balance Sheet

At March 31, 2018, total assets were $914.0 million, compared to $917.5 million at December 31, 2017. At March 31, 2018, the Company’s brokered deposits were $50.6 million, a reduction of $9.5 million compared to December 31, 2017. For the three month period ended March 31, 2018, a combination of reduced brokered deposits and loan growth resulted in $23.5 million reduction in cash balances compared to December 31, 2017. A summary of loans outstanding by type at March 31, 2018 and December 31, 2017 is as follows:

	March 31, 2018			December 31, 2017
	(Dollars in Thousands)
One-to-four family first mortgages	$	167,947		$	163,565
Second mortgages (closed end)		1,181			1,184
Home equity lines of credit		34,261			35,697
Multi-family		37,977			37,445
Construction		40,484			30,246
Land		9,096			14,873
Farmland		34,830			36,851
Non-residential real estate		234,900			224,952
Consumer loans		8,514			8,620
Commercial loans		96,527			88,938
Total loans, gross		665,717			642,371
Unearned income, net of fees		(539	)		(443	)
Less allowance for loan losses		(4,654	)		(4,826	)
Total loans	$	660,524		$	637,102

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

-MORE-

HFBC Reports First Quarter Results

Page 4

April 27, 2018

Asset Quality

For the three month periods ended March 31, 2018 and March 31, 2017, the Company’s net charge-offs totaled $239,000 and $238,000, respectively, or 0.15% of average loan balances. At March 31, 2018, the Company’snon-accrual loans were $2.0 million, or 0.30% of total loans, compared to $8.9 million, or 1.44% of total loans at March 31, 2017. The Company’s level of loans classified as substandard declined from $26.3 million at March 31, 2017 and $14.1 million at March 31, 2018. The table below provides a history of the Company’s significant credit quality metrics:

	3/31/2018			12/31/2017			9/30/2017			6/30/2017			3/31/2017
	(Dollars in Thousands, Except Percentages)
Loans past due30-89 days		432			393			754			2,910			746
Loans past due 90 + days accruing interest		—			88			—			—			—
Totalnon-accrual loans		2,004			1,285			1,739			8,579			8,944
Total loans classified as substanard or doubtful		14,082			10,780			11,217			24,808			26,345
Total performing TDR loans		3,255			3,163			3,371			3,388			4,237
Total foreclosed assets		3,329			3,369			4,975			1,408			2,111
Quarterly net charge offs		239			(336	)		2,451			(956	)		239
Non-accrual loans / Total loans		0.30	%		0.20	%		0.28	%		1.34	%		1.44	%
Non-performing assets / Total assets		0.58	%		0.52	%		0.74	%		1.09	%		1.20	%
Allowance / Total loans		0.70	%		0.75	%		0.76	%		1.12	%		0.99	%
Allowance /Non-accrual loans		232.19	%		375.74	%		275.96	%		83.69	%		68.92	%
Substandard loans / Risk based capital		13.94	%		10.72	%		11.08	%		24.28	%		26.15	%
Quarterly net charge off ratio (annualized)		0.15	%		-0.21	%		1.54	%		-0.61	%		0.16	%
FTE Employees		227			229			227			230			234

The Company

HopFed Bancorp, Inc. is the holding company for Heritage Bank USA, Inc. (“Heritage Bank”), a Kentucky state chartered commercial bank. Heritage Bank has eighteen offices in western Kentucky and middle Tennessee and loan production offices in Nashville and Brentwood, Tennessee. The Company offers a broad line of financial services and products with the personalized focus of a community banking organization. More information about HopFed Bancorp and Heritage Bank is located 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 risks, 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.

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

-MORE-

HFBC Reports First Quarter Results

Page 5

April 27, 2018

HOPFED BANCORP, INC.

Consolidated Condensed Balance Sheets

(Dollars in Thousands)

	3/31/2018			12/31/2017			09/30/17			06/30/17			03/31/17
	(unaudited)						(unaudited)			(unaudited)			(unaudited)
Assets
Cash and due from banks	$	18,472		$	37,965		$	23,469			20,208			30,663
Interest-earning deposits in banks		3,149			7,111			9,842			4,801			19,408
Cash and cash equivalents		21,621			45,076			33,311			25,009			50,071
Federal Home Loan Bank stock, at cost		4,428			4,428			4,428			4,428			4,428
Securities available for sale		180,212			184,791			192,287			205,363			207,580
Loans held for sale		2,706			1,539			1,749			2,386			1,091
Loans receivable		665,178			641,928			630,202			638,422			621,644
Allowance for loan losses		(4,654	)		(4,826	)		(4,799	)		(7,180	)		(6,164	)
Accrued interest receivable		3,212			3,589			3,414			3,332			3,121
Foreclosed assets		3,329			3,369			4,975			1,408			2,111
Bank owned life insurance		10,439			10,368			10,287			10,192			10,120
Premises and equipment, net		22,619			22,700			22,945			23,097			23,225
Deferred tax assets		2,127			1,764			2,292			3,025			2,918
Other assets		2,748			2,784			2,973			2,645			3,162
Total assets	$	913,965		$	917,510		$	904,064		$	912,127		$	923,307
Liabilities:
Deposits:
Non-interest-bearing accounts	$	139,093		$	136,197		$	128,184		$	132,305		$	136,333
Interest-bearing accounts
NOW accounts		219,483			208,496			196,315			216,256			217,562
Savings and money market accounts		101,153			104,347			97,929			98,269			100,009
Other time deposits		287,077			304,969			308,801			299,114			311,839
Total deposits		746,806			754,009			731,229			745,944			765,743
Advances from Federal Home Loan Bank		25,000			23,000			31,000			21,000			11,000
Repurchase agreements		41,792			38,353			37,829			41,820			45,492
Subordinated debentures		10,310			10,310			10,310			10,310			10,310
Accrued expenses and other liabilities		3,304			4,426			4,461			4,262			3,301
Total liabilities		827,212			830,098			814,829			823,336			835,846

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

-MORE-

HFBC Reports First Quarter Results

Page 6

April 27, 2018

HOPFED BANCORP, INC.

Consolidated Condensed Balance Sheets, Continued

(Dollars in Thousands, Except Percentages, Share and Per Share Data)

	3/31/2018			12/31/2017			09/30/17			06/30/17			03/31/17
	(unaudited)						(unaudited)			(unaudited)			(unaudited)
Stockholders’ equity:
Common stock, par value $.01		80			80			80			80			80
Additionalpaid-in-capital		58,875			58,825			58,777			58,750			58,705
Retained earnings		51,957			51,162			51,646			50,552			49,721
Treasury stock- common , at cost		(16,684	)		(16,655	)		(15,931	)		(15,361	)		(15,356	)
Unearned ESOP Shares, at cost		(5,759	)		(5,901	)		(6,125	)		(6,269	)		(6,414	)
Accumulated other comprehensive income, net of taxes		(1,716	)		(99	)		788			1,039			725
Total stockholders’ equity		86,753			87,412			89,235			88,791			87,461
Total liabilities and stockholders’ equity	$	913,965		$	917,510		$	904,064		$	912,127		$	923,307
Additional Capital Information
	3/31/2018			12/31/2017			09/30/17			06/30/17			03/31/17
	(unaudited)						(unaudited)			(unaudited)			(unaudited)
Preferred stock authorized		500,000			500,000			500,000			500,000			500,000
Preferred stock outstanding		—			—			—			—			—
Common shares authorized		15,000,000			15,000,000			15,000,000			15,000,000			15,000,000
Common shares issued		7,988,983			7,976,131			7,976,131			7,964,076			7,963,378
Common shares outstanding		6,648,589			6,637,771			6,688,674			6,716,809			6,716,549
Treasury shares		1,340,394			1,338,360			1,287,457			1,247,267			1,246,829
Unearned ESOP shares		423,679			434,548			465,861			476,862			488,161
Book value per share (excludes unearned ESOP shares)	$	13.97		$	14.09		$	14.34		$	14.23		$	14.04
Tier 1 leverage ratio		10.6	%		10.6	%		10.9	%		10.4	%		10.6	%
Total risk based capital ratio		15.5	%		16.0	%		16.3	%		16.1	%		16.1	%
Common equity tier 1 capital ratio		14.8	%		15.2	%		15.6	%		15.0	%		15.1	%

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

-MORE-

HFBC Reports First Quarter Results

Page 7

April 27, 2018

HOPFED BANCORP, INC.

Consolidated Condensed Quarterly Statements of Income

(Dollars in Thousands)

(Unaudited)

	For the three month periods ended
	3/31/2018		12/31/2017			09/30/17		06/30/17		03/31/17
Interest and dividend income:
Loans receivable		7,477		7,208			7,260		6,963		6,736
Investment in securities, taxable		1,079		1,081			1,124		1,155		1,118
Nontaxable securities available for sale		213		218			233		280		283
Interest-earning deposits		29		34			18		21		23
Total interest and dividend income		8,798		8,541			8,635		8,419		8,160
Interest expense:
Deposits		1,244		1,240			1,206		1,197		1,167
Advances from Federal Home Loan Bank		92		97			89		30		32
Repurchase agreements		154		117			130		119		103
Subordinated debentures		122		112			112		108		104
Total interest expense		1,612		1,566			1,537		1,454		1,406
Net interest income		7,186		6,975			7,098		6,965		6,754
Provision for loan losses		68		56			71		59		291
Net interest income after provision for loan losses		7,118		6,919			7,027		6,906		6,463
Non-interest income:
Service charges		706		801			819		800		804
Merchant card income		308		306			299		315		302
Mortgage orgination revenue		319		374			335		278		334
Gain (loss) on sale of securities		27		(9	)		162		14		2
Income from bank owned life insurance		71		81			95		72		235
Financial services commission		138		117			134		145		140
Other operating income		175		198			186		212		479
Totalnon-interest income		1,744		1,868			2,030		1,836		2,296

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

-MORE-

HFBC Reports First Quarter Results

Page 8

April 27, 2018

HOPFED BANCORP, INC.

Consolidated Condensed Statements of Income, Continued

(Dollars in Thousands, Except Per Share Data)

(Unaudited)

	For the three month periods ended
	3/31/2018			12/31/2017			9/30/2017			6/30/2017		3/31/2017
Non-interest expenses:
Salaries and benefits		4,117			3,917			3,919			3,977		4,236
Occupancy		782			700			716			729		775
Data processing		784			779			795			546		764
State deposit tax		169			170			169			200		231
Professional services		466			1,095			409			464		348
Advertising		308			365			240			368		381
Foreclosure, net		(6	)		(80	)		(25	)		6		108
Loss on sale of asset		—			(1	)		—			3		—
Other operating expenses		920			861			945			940		846
Totalnon-interest expense		7,540			7,806			7,168			7,233		7,689
Income before income tax expense		1,322			981			1,889			1,509		1,070
Income tax expense		196			1,159			486			368		135
Net income		1,126			(178	)		1,403			1,141		935
Net income per share
Basic	$	0.18		($	0.03	)	$	0.22		$	0.18	$	0.15
Diluted	$	0.18		($	0.03	)	$	0.22		$	0.18	$	0.15
Dividend per share	$	0.05		$	0.05		$	0.05		$	0.05	$	0.04

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

-MORE-

HFBC Reports First Quarter Results

Page 9

April 27, 2018

HOPFED BANCORP, INC.

Selected Financial Data

(Dollars in Thousands, Except Percentages)

(Unaudited)

	Three month periods ended
	3/31/18			12/31/17			9/30/17			6/30/17			3/31/17
Average Balance Sheet Data
Loans, net of allowance		647,204			631,463			636,955			622,606			615,382
Available for sale taxable securities		160,582			164,667			173,624			177,260			176,824
Available for sale tax free securities		26,856			27,361			29,090			32,919			33,868
Interest bearing deposits held in banks		6,030			8,418			4,351			5,888			9,260
Average earning assets		840,672			831,909			844,020			838,673			835,334
Averagenon-earning assets		69,290			74,856			64,913			70,359			75,527
Average assets		909,962			906,765			908,933			909,032			908,861
Average interest bearing deposits		612,019			611,371			612,655			628,583			625,104
Repurchase agreements		39,072			34,677			37,978			39,138			41,840
FHLB borrowings		23,656			25,174			26,909			11,176			13,433
Subordinated debentures		10,310			10,310			10,310			10,310			10,310
Total average interest bearing liabilities		685,057			681,532			687,852			689,207			690,687
Averagenon-interest bearing deposits		133,412			132,624			126,039			128,078			126,809
Average othernon-interest bearing liabilities		32,887			3,365			5,628			3,915			3,993
Average total equity		87,336			89,244			89,214			87,832			87,372
	Three month periods ended
	03/31/18			12/31/17			09/30/17			06/30/17			03/31/17
Tax equivalent yield / Cost of:
Loans, fully tax equivalent		4.62	%		4.58	%		4.57	%		4.48	%		4.38	%
Available for sale taxable securities		2.69	%		2.63	%		2.59	%		2.61	%		2.53	%
Available for sale tax free securities, fully tax equivalent		3.96	%		4.76	%		4.78	%		5.09	%		5.00	%
Average yield of interest bearing deposits		1.92	%		1.62	%		1.65	%		1.43	%		0.99	%
Yield on total interest earning assets		4.21	%		4.17	%		4.15	%		4.09	%		3.98	%
Cost of total average deposits		0.67	%		0.67	%		0.65	%		0.63	%		0.62	%
Cost of average total interest bearing liabilities		0.94	%		0.92	%		0.89	%		0.84	%		0.81	%
Fully tax equivalent interest rate spread		3.30	%		3.25	%		3.26	%		3.25	%		3.17	%
Fully tax equivalent net interest margin		3.45	%		3.41	%		3.43	%		3.39	%		3.31	%
Net income		1,126			225			1,403			1,141			935
Return on Assets		0.49	%		0.10	%		0.62	%		0.50	%		0.41	%

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

-END-