Market Overview

HopFed Bancorp, Inc. Reports Third Quarter Results

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HOPKINSVILLE, Ky., Oct. 31, 2012 /PRNewswire/ -- HopFed Bancorp, Inc. (NASDAQ: HFBC) (the "Company"), the holding company for Heritage Bank (the "Bank"), today reported results for the three and nine month periods ended September 30, 2012.  For the three month period ended September 30, 2012, the Company's net income available to common shareholders was $819,000, or $0.11 per share, basic and diluted, compared to net income available to common shareholders of $1.4 million, or $0.18 per share basic and diluted, for the three month period ended September 30, 2011. For the nine month period ended September 30, 2012, the Company's net income available to common shareholders was $2.2 million, or $0.29 per share, basic and diluted, compared to a net loss attributable to common shareholders of $180,000, or ($0.02) per share basic and diluted, for the nine month period ended September 30, 2011.

Commenting on the third quarter results, John E. Peck, President and Chief Executive Officer, said, "The Company has reduced the amount of Federal Home Loan Bank borrowings by approximately $20.0 million during the quarter. The reduction in FHLB borrowings, which include prepayment fees of approximately $480,000, reduces our balances outstanding related to wholesale funding. The prepayment penalties were offset by gains on the sales of securities, many of which were experiencing increasing high levels of cash flow and lower net yields due to national mortgage refinancing activity. We remain focused on reducing our cost of funds with approximately $96.8 million in time deposits maturing in the fourth quarter of 2012 with a weighted average cost of approximately 2.00%."

Mr. Peck concluded, "The Company experienced an $11.8 million reduction in classified loans during the quarter due. In addition, we have contracts to sell $2.7 million in non-performing loans scheduled to close during the fourth quarter of 2012 at or near their current book value. The Company continues to market other non-performing assets in an attempt to further reduce our level of classified assets.  The Company continues to find success working with borrowers in an effort to address credit quality issues."

Financial Highlights

  • The Company and Bank's capital ratios continue to strengthen. At September 30, 2012, the Company's tangible book value was $13.88 and our tangible common equity ratio is 10.65%. The Bank's tier 1 leverage and total risk based capital ratios at September 30, 2012, are 10.91% and 19.7240700%, respectively. The Company's tier 1 leverage and total risk based capital ratios are 12.33% and 22.34%, respectively.
  • At September 30, 2012, the Company's and Bank's net classified asset to risk based capital ratios were 68.78% and 60.37%, respectively. At June 30, 2012, these ratios were 86.50% for the Bank and 76.1% for the Company.  
  • At September 30, 2012, the Company's allowance for loan loss totaled $10.5 million, or 1.90% of total loans and 87.23% of non-accrual loans. In the nine month period ended September 30, 2012, the Company's net charge offs totaled $2.5 million, or an annualized rate of 0.61% of average loans.
  • For the three month period ended September 30, 2012, the Company's net interest margin was 2.67%, as compared to 3.00% for the three month period ended September 30, 2011, and 2.87% for the three month period ended June 30, 2012. For the three month period ended September 30, 2012, the Company's net interest margin was reduced 0.21% by our decision to liquidate FHLB borrowings and incur $480,000 in prepayment penalties.  

Asset Quality

At September 30, 2012, the Company's level of non-accrual loans totaled $12.6 million, as compared to $6.1 million at December 31, 2011. At September 30, 2012, non-accrual loans total 2.20% of total loans.  The Company has contracted to sell certain non-accrual assets classified as substandard at their current book balance. The sale includes $2.0 million in commercial real estate and $760,000 of land development. We anticipate the sale closing in mid-November 2012. We continue to market one additional commercial real estate property, with a book value of $900,000, through a nationally recognized broker dealer.  All three loans are purchased participation loans outside of our current market area.

A summary of non-accrual loans at September 30, 2012, and December 31, 2011, is as follows:


9/30/2012


12/31/2011


(Dollars in Thousands)





One-to-four family first mortgages

2,795


2,074

Home equity lines of credit

24


134

Junior liens 

---


101

Multi-family

190


---

Construction

---


---

Land

4,039


1,330

Non-residential real estate

3,271


2,231

Farmland

49


---

Consumer loans

59


9

Commercial loans

2,160


254





Total non-accrual loans

12,587


6,133

A summary of the level of classified loans at September 30, 2012, is as follows:








Specific 

Reserve




Impaired Loans


Reserve

for 

September 30, 2012


Special





for 

Performing 


Pass

Mention

Substandard


Doubtful

Total

Impairment

Loans




(Dollars in Thousands)




One-to-four family mortgages

156,358

1,940

7,025


116

165,439

509

1,840

   Home  equity line of credit

35,509

1,202

1,251


---

37,962

14

320

   Junior liens

4,728

73

581


---

5,382

104

54

Multi-family

19,297

6,192

6,754


---

32,243

356

357

Construction

11,606

---

4,088


---

15,694

294

113

Land

17,688

9,069

21,340


---

48,097

888

1,066

Non-residential real estate

142,396

3,809

28,366


---

174,571

1,228

2,445

Consumer loans

13,645

12

504


---

14,161

102

160

Commercial loans

49,866

837

8,523


---

59,226

86

554










 Total

451,093

23,134

78,432


116

552,775

3,581

6,909

 

At September 30, 2012, non-accrual loans plus other real estate owned totaled $13.3 million, or 1.33% of total assets, as compared to $8.4 million, or 0.81% of total assets, at December 31, 2011. The Company's level of other real estate owned has declined from $2.3 million at December 31, 2011, to $681,000 at September 30, 2012.

A summary of the activity in other real estate owned for the nine month period ended September 30, 2012, is as follows:



Activity During 2012





Balance




Reduction

Gain (Loss)

Balance


12/31/2011

Foreclosures


Sales

in Values

on Sales 

9/30/2012



(Dollars in Thousands)












One-to-four family mortgages

480

658


(855)

(107)

(29)

147

Multi-family

905

---


(875)

---

(30)

---

Construction

465

---


(235)

---

(14)

216

Land

248

383


(269)

(68)

(19)

275

Non-residential real estate

160

63


(160)

(20)

---

43

Consumer assets 

9

---


(9)

---

---

---









     Total

2,267

1,104


(2,403)

(195)

(92)

681

At September 30, 2012, the Company's level of loans classified as substandard and doubtful were $78.4 million and $116,000, respectively, as compared to $47.5 million and $1.7 million, respectively, at December 31, 2011. The Company's specific reserve for impaired loans was $3.6 million at September 30, 2012, and $4.1 million at December 31, 2011, respectively.

At September 30, 2012, the Company's level of performing Troubled Debt Restructurings ("TDRs") was $9.3 million, as compared to $6.2 million at December 31, 2011. A summary of the activity in loans classified as performing TDRs for the nine month period ended September 30, 2012, is as follows:



Balance at


New

Loss or 

Removed due

Balance at



December 31, 2011


TDR 

Foreclosure

to performance

September 30, 2012






(Dollars in Thousands)


One-to-four family mortgages


1,111


146

---

705

552

    Home equity line of credit


---


244

---

40

204

Junior Lien


757


---

---

757

---

Multi-family


---


239

---

3

236

Construction


---


3,145

---

---

3,145

Land


941


4,850

233

757

4,801

Farmland


---


956

---

956

---

Non-residential real estate


3,366


---

453

2,913

---

Consumer loans


32


75

2

97

8

Commercial loans


20


931

10

570

371

Total performing TDR


6,227


10,586

698

6,798

9,317


A summary of TDRs and non-performing TDRs at September 30, 2012, and December 31, 2011, is stated below:

 




September 30, 2012


December 31, 2011




(Dollars in Thousands)


One-to-four family mortgages


$2,001


2,521


Home equity line of credit 


204


---


Junior lien


---


857


Multi-family


236


---


Construction


3,145


---


Land


4,801


941


Non-residential real estate


2,490


3,367


Farmland


956


---


Consumer loans


8


33


Commercial loans


371


125


Total TDR


$14,212


7,844


Less:






TDR in non-accrual status






One-to-four family mortgages


(1,449)


(1,410)


    Home equity line of credit


---


---


Junior lien


---


(100)


Multi-family


---


---


Construction


---


---


Land


---


---


Non-residential real estate


(2,490)


(1)


Farmland


(956)


---


Consumer loans


---


(1)


Commercial loans


---


(105)


Total performing TDR


$9,317


$6,227

 

Net Interest Income

For the three month period ended September 30, 2012, the Company's net interest income was $5.9 million, compared to $6.9 million for the three month period ended September 30, 2011, and $6.7 million for the three month period ended June 30, 2012. For the three and nine month periods ended September 30, 2012, net interest income was reduced by $480,000 as a result of FHLB prepayment penalties.

For the nine month period ended September 30, 2012, the Company's net interest income was $19.4 million, as compared to $20.7 million for the nine month period ended September 30, 2011. For the nine month period ended September 30, 2012, the Company's net interest margin was 2.84%, as compared to 3.01% for the nine month period ended September 30, 2011. For the nine month period ended September 30, 2012, FHLB prepayment penalties reduced the Company's net interest margin 0.07%.

The decline in the Company's net interest income and net interest margin for the three and nine month periods ended September 30, 2012, is largely the result of declining average loan balances and an increasingly high level of cash flow from our investment portfolio, resulting in an increase in premium amortizations and the reinvestment of funds at less attractive yields. Given the poor climate for reinvesting excess funds, management anticipates that our current pricing strategy may result in further reductions in time deposits. Management will fund the reduction in assets by selling investment securities. 

Non-interest Income

Non-interest income for the three month period ended September 30, 2012, was $2.9 million, as compared to $3.3 million for the three month periods ended September 30, 2011, and $2.6 million for the three month period ended June 30, 2012, respectively. Non-interest income for the nine month periods ended September 30, 2012, and September 30, 2011, was $7.5 million and $7.8 million, respectively.

The decrease in non-interest income for the three month period ended September 30, 2012, as compared to the three month period ended September 30, 2011, was primarily the result of a lower level of gains on the sale of securities. The Company recognized net gains on the sale of securities of $944,000 and $1,247,000 for the three month periods ended September 30, 2012, and September 30, 2011, respectively.   

For the nine month period ended September 30, 2012, the Company's non-interest income declined $311,000 as compared to the nine month period ended September 30, 2011. For the nine month period ended September 30, 2012, gains on the sale of securities were $1.6 million, as compared to $2.3 million for the nine month period ended September 30, 2011. For the nine month periods ended September 30, 2012, and September 30, 2011, revenue related to the origination of fixed rate mortgage loans was $755,000 and $425,000, respectively.

Non-interest Expense

Non-interest expenses were $7.1 million for the three month periods ended September 30, 2012, and September 30, 2011, respectively as compared to $7.4 million for the three month period ended June 30, 2012. For the nine months ended September 30, 2012, and September 30, 2011, non-interest expenses were $21.6 million and $22.0 million, respectively.  On a linked quarter basis, non-interest expenses declined $378,000 due to slightly lower levels of compensation and professional services expenses.  The increase in other operating expenses is the result of expenses related to the Company's annual meeting and reporting requirements as well as increases in training expenses.  No other operating expense item increased by more than $100,000 from June 30, 2012, to September 30, 2012.

The decrease in non-interest expense during the nine month period ended September 30, 2012, as compared to September 30, 2011, is largely the result of a reduced level of losses on the sale of other real estate owned. Losses on the sale of other real estate owned were $1.6 million during the nine month period ended September 30, 2011, and $287,000 for the same period in 2012. For the nine month period ended September 30, 2012, non-interest expenses experiencing notable changes as compared to the nine month period ended September 31, 2011, were:

 





Percentage



Change in 


change from



expense


prior period






Salaries and benefits


528,000


5.48%

Professional services


334,000


33.87%

Deposit insurance and examination


(332,000)


-20.70%

Other operating expenses


711,000


123.65%

Loss on sale of other assets owned


(1,355,000)


-82.52%

 

The Company's salaries and benefits expense, other operating expenses and professional services expenses have increased due to increased regulatory and compliance requirements. The reduction in losses on sale of other real estate owned is the result of lower balances in that asset class. The reduction in the Company's deposit insurance and examination expense is largely the result of a reduced level of brokered and time deposits.

Balance Sheet 

Total assets were $996.7 million at September 30, 2012, a decrease of $44.1 million as compared to December 31, 2011.  The decline in the size of the balance sheet is largely the result of a $45.5 million reduction in time deposit balances and a $19.1 million decline in FHLB borrowings. The reduction in time deposits included an $8.2 million decline in brokered deposits.  The Company funded the decline in the balance sheet largely by reducing the size of its investment portfolio by $34.9 million.  

For the nine month period ended September 30, 2012, gross loans declined by approximately $17.6 million, to $550.0 million as compared to $567.6 million at December 31, 2011.  For the three month period ended September 30, 2012, gross loans decreased $884,000. The Company is experiencing modest loan demand in its highly competitive market.  

The Company recently completed its first examination under the Office of the Comptroller of the Currency ("OCC").  As a result of the examination, the OCC has terminated the Bank's Memorandum of Understanding agreement. The termination of the memorandum may result in lower operating cost and increased business opportunities in the future. The Company remains fully compliant with a Memorandum of Understanding with the Federal Reserve Bank that limits our ability to borrow money and make capital distributions. The termination of the Company's Memorandum will provide management the opportunity to re-evaluate its capital requirements, including the possibility of making a request to the United States Treasury Department to repurchase all outstanding preferred shares sold under the Treasury's Capital Purchase Plan in 2008. In repurchasing all outstanding preferred shares, the Company would save $920,000 in preferred dividends,  or $0.12 per share, basic and diluted.

The Company

HopFed Bancorp, Inc. is the holding company for Heritage Bank headquartered in Hopkinsville, Kentucky.  The Bank has eighteen offices in western Kentucky and middle Tennessee in addition to its subsidiary, Fall & Fall Insurance of Fulton, Kentucky. The Bank has two additional operating divisions including Heritage Solutions of Murray, Kentucky, Hopkinsville, Kentucky, Kingston Springs, Tennessee 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 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 may be found on its website www.bankwithheritage.com.

Forward-Looking Information

Information contained in this press release, other than historical information, may be considered forward‑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.

HOPFED BANCORP, INC.
Balance Sheet
(Dollars in thousands)





Assets

September 30, 2012


December 31, 2011


(Unaudited )







Cash and due from banks 

$40,700


44,389

Interest-earning deposits in Federal Home Loan Bank

17,003


4,371

Cash and cash equivalents

57,703


48,760

Federal Home Loan Bank stock, at cost 

4,428


4,428

Securities available for sale 

348,877


383,782

Loans held for sale

2,763


---

Loans receivable, net of allowance for loan losses of




    $10,490 at September 30, 2012, and $11,262 at December 31, 2011

539,503


556,360

Accrued interest receivable

5,333


6,183

Real estate and other assets owned

681


2,267

Bank owned life insurance 

9,373


9,135

Premises and equipment, net 

22,750


23,431

Deferred tax assets 

---


1,132

Intangible asset 

341


519

Other assets

4,981


4,823

         Total assets

$996,733


1,040,820





Liabilities and Stockholders' Equity




Liabilities:




Deposits:  




   Non-interest-bearing accounts

$88,451


79,550

   Interest-bearing accounts




   NOW accounts

131,952


130,114

   Savings and money market accounts

74,314


70,443

   Other time deposits

474,539


519,988

     Total deposits

769,256


800,095





Advances from Federal Home Loan Bank 

44,222


63,319

Repurchase agreements 

42,799


43,080

Subordinated debentures 

10,310


10,310

Advances from borrowers for taxes and insurance

639


153

Deferred tax liability

628


---

Dividends payable

179


176

Accrued expenses and other liabilities 

5,439


5,204

   Total liabilities

873,472


922,337

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

HOPFED BANCORP, INC.
Balance Sheet
(Dollars in thousands)






September 30, 2012


December 31, 2011


(Unaudited)



Stockholders' equity




Preferred stock, par value $0.01 per share;  




authorized - 500,000 shares; 18,400 shares issued and 




outstanding with a liquidation preference of $18,400,000 




at September 30, 2012, and December 31, 2011

---


---

Common stock, par value $.01 per share; authorized 




15,000,000 shares; 7,905,728 issued and 7,502,812




outstanding at September 30, 2012, and 7,895,336 issued 




and 7,492,420 outstanding at December 31, 2011 

79


79

Common stock warrants (253,666 issued and outstanding) 

556


556

Additional paid-in-capital

76,127


75,967

Retained earnings-substantially restricted

41,330


39,591

Treasury stock (at cost, 402,916 shares at September 30, 2012,




and December 31, 2011)

(5,076)


(5,076)

Accumulated other comprehensive income, net of taxes

10,245


7,366





Total stockholders' equity

123,261


118,483





Total liabilities and stockholders' equity

$996,733


1,040,820

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


                                                                                       

HOPFED BANCORP, INC.
Selected Financial Data
(Dollars in thousands)












For the Three Month Periods


For the Nine Month Periods



Ended September 30, 


Ended September 30, 












2012


2011


2012


2011










Interest and dividend income:









Loans receivable


7,403


8,332


22,617


25,254

Investment in securities, taxable


2,014


2,581


6,823


8,003

Nontaxable securities available for sale


573


532


1,695


1,733

Interest-earning deposits


6


5


20


13

Total interest and dividend income


9,996


11,450


31,155


35,003










Interest expense:









Deposits 


2,640


3,543


8,279


11,179

Advances from Federal Home Loan Bank


1,017


625


2,155


1,946

Repurchase agreements


236


238


721


668

Subordinated debentures


185


186


553


551

   Total interest expense


4,078


4,592


11,708


14,344










Net interest income


5,918


6,858


19,447


20,659

Provision for loan losses 


506


475


1,775


5,445










Net interest income after









provision for loan losses


5,412


6,383


17,672


15,214










Non-interest income:









Service charges


963


1,020


2,874


2,828

Merchant card income


212


194


620


571

Mortgage origination revenue


289


295


755


425

Gain on sale of securities


944


1,247


1,618


2,297

Other than temporarily impairment









        on available for sale securities


---


---


---


(14)

Income from bank owned life insurance


80


84


238


249

Financial services commission


280


272


778


691

Other operating income


129


169


570


717

Total non-interest income


2,897


3,281


7,453


7,764

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


HOPFED BANCORP, INC.
Selected Financial Data
(Dollars in thousands, except share and per share data)










For the Three Month Periods


For the Nine Month Periods


Ended September 30,


Ended September 30, 










2012


2011


2012


2011

Non-interest expenses:








Salaries and benefits 

3,447


3,309


10,515


9,987

Occupancy expense 

875


867


2,614


2,452

Data processing expense

610


653


1,863


2,056

State deposit tax

161


151


485


476

Intangible amortization expense

48


65


178


227

Professional services expense

435


293


1,320


986

Deposit insurance and examination expense

419


445


1,272


1,604

Advertising expense

324


324


952


931

Postage and communications expense

146


140


444


421

Supplies expense

64


96


280


294

Loss on disposal of equipment

5


5


13


145

Loss on sale of real estate owned

68


570


287


1,642

Real estate owned expenses 

19


16


90


216

Other operating expenses

440


193


1,286


575

Total non-interest expense

7,061


7,127


21,599


22,012









Income before income tax expense

1,248


2,537


3,526


966

Income tax expense 

173


909


562


375









Net income 

1,075


1,628


2,964


591

Less:








       Dividend on preferred shares

229


232


689


688

       Accretion dividend on preferred shares

27


28


83


83









Net income available to common shareholders

$819


$1,368


$2,192


($180)

Net income available to common shareholders








     Per share, basic

$0.11


$0.18


$0.29


($0.02)

     Per share, diluted

$0.11


$0.18


$0.29


($0.02)

Dividend per share

$0.02


$0.02


$0.06


$0.18









Weighted average shares outstanding - basic 

7,487,283


7,481,448


7,485,571


7,456,750

Weighted average shares outstanding - diluted 

7,487,283


7,481,448


7,485,571


7,456,750

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


HOPFED BANCORP, INC.
Selected Financial Data
(Dollars in thousands











For the Three 





Months Ended









Change from



9/30/2012


6/30/2012


Prior Quarter








Interest and dividend income:







Loans receivable


7,403


7,413


(10)

Investment in securities, taxable


2,014


2,434


(420)

Nontaxable securities available for sale


573


547


26

Interest-earning deposits


6


6


---

Total interest and dividend income


9,996


10,400


(404)








Interest expense:







Deposits 


2,640


2,755


(115)

Advances from Federal Home Loan Bank


1,017


565


452

Repurchase agreements


236


237


(1)

Subordinated debentures


185


181


4

   Total interest expense


4,078


3,738


340








Net interest income


5,918


6,662


(744)

Provision for loan losses 


506


400


106








Net interest income after







provision for loan losses


5,412


6,262


(850)








Non-interest income:







Service charges


963


973


(10)

Merchant card income


212


212


0

Mortgage orgination revenue


289


263


26

Gain on sale of securities


944


630


314

Income from bank owned life insurance


80


79


1

Financial services commission


280


271


9

Other operating income


129


211


(82)








Total non-interest income


2,897


2,639


258

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


HOPFED BANCORP, INC.
Selected Financial Data
(Dollars in thousands, except share and per share data)








For the Three




Months Ended








Change from 


9/30/2012


6/30/2012


Prior Quarter







Non-interest expenses:






Salaries and benefits 

$3,447


3,561


(114)

Occupancy expense 

875


884


(9)

Data processing expense

610


627


(17)

State deposit tax

161


162


(1)

Intangible amortization expense

48


65


(17)

Professional services expense

435


498


(63)

Deposit insurance and examination expense

419


434


(15)

Advertising expense

324


324


---

Postage and communications expense

146


157


(11)

Supplies expense

64


105


(41)

Loss on disposal of equipment

5


2


3

Loss on sale of real estate owned

68


72


(4)

Real estate owned expenses

19


25


(6)

Other operating expenses

440


523


(83)







Total non-interest expense

7,061


7,439


(378)







Income before income tax expense

1,248


1,462


(214)

Income tax expense 

173


300


(127)







Net income

1,075


1,162


(87)

Less:






       Dividend on preferred shares

229


231


(2)

       Accretion dividend on preferred shares

27


28


(1)

Net income (loss) available (attributable)






to common stockholders

$819


903


(84)

Net income (loss) available (attributable)






to common stockholders






     Per share, basic

$0.11


$0.12


(0.01)

     Per share, diluted

$0.11


$0.12


(0.01)

Dividend per share

$0.02


$0.02









Weighted average shares outstanding - basic

7,487,283


7,485,283



Weighted average shares outstanding - diluted

7,487,283


7,485,283



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

HOPFED BANCORP, INC.
Selected Financial Data

The table below adjusts tax-free investment income for the nine month periods ended September 30, 2012, and September 30, 2011, by $798,000 and $810,000, respectively; for a tax equivalent rate using a cost of funds rate of 2.00% for the nine month period ended September 30, 2012, and 2.20% for the nine month period ended September 30, 2011.  The table adjusts tax-free loan income by $7,000 for the nine month period ended September 30, 2012, and $27,000 for the nine month period ended September 30, 2011, 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




9/30/2012

9/30/2012

9/30/2012


9/30/2011

9/30/2011

9/30/2011




(Dollars in Thousands, Except Percentages)











Loans

$545,464

$22,624

5.53%


$579,888

$25,281

5.81%

Investments AFS taxable

322,091

6,823

2.82%


305,778

8,016

3.50%

Investment AFS tax free

67,714

2,493

4.91%


66,877

2,543

5.07%

Fed Funds

14,918

20

0.18%


---

---

---

Total interest earning assets

950,187

31,960

4.48%


952,543

35,840

5.02%









Other assets

87,878




121,080











Total assets

$1,038,065




$1,073,623











Retail time deposits

$444,553

6,538

1.96%


$470,894

8,608

2.44%

Brokered deposits

52,558

754

1.91%


84,139

1,222

1.94%

Now accounts

145,015

888

0.82%


137,961

1,256

1.21%

MMDA and savings accounts

73,983

99

0.18%


67,369

93

0.18%

FHLB borrowings

61,336

2,155

4.68%


72,557

1,946

3.58%

Repurchase agreements

40,968

721

2.35%


39,676

668

2.24%

Subordinated debentures

10,310

553

7.15%


10,310

551

7.13%









Total interest bearing liabilities

828,723

11,708

1.88%


882,906

14,344

2.17%









Non-interest bearing deposits

82,800




72,216



Other liabilities

5,717




4,905











Shareholders equity

120,825




113,596











Total liabilities and 








shareholder  equity

$1,038,065




$1,073,623



Net interest income


$20,252




$21,496


Interest rate spread



2.60%




2.85%

Net interest margin


2.84%




3.01%


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


HOPFED BANCORP, INC.
Selected Financial Data

The table below adjusts tax-free investment income for the three month periods ended September 30, 2012, and September 30, 2011, by $273,000 and $250,000, respectively; for a tax equivalent rate using a cost of funds rate of 2.00% for the three month period ended September 30, 2012, and 2.00% for the three month period ended September 30, 2011.  The table adjusts tax-free loan income by $2,000 for the three month period ended September 30, 2012 and $7,000 for the three month period ended September 30, 2011, for a tax equivalent rate using the same cost of funds rate:

 




Average

Income &

Average


Average

Income &

Average




Balance

Expense

Rates


Balance

Expense

Rates




9/30/2012

9/30/2012

9/30/2012


9/30/2011

9/30/2011

9/30/2011




(Dollars in Thousands, Except Percentages)











Loans

$540,811

$7,405

5.48%


$568,600

$8,339

5.87%

Investments AFS taxable

308,578

2,014

2.61%


316,104

2,586

3.27%

Investment AFS tax free

69,420

846

4.87%


64,712

782

4.83%

Fed Funds

10,555

6

---


---

---

---









Total interest earning assets

929,364

10,271

4.42%


949,416

11,707

4.93%









Other assets

87,537




118,896











Total assets

$1,016,901




$1,068,312











Retail time deposits

$430,568

2,064

1.92%


$475,287

2,773

2.33%

Brokered deposits

49,181

258

2.10%


76,557

374

1.95%

Now accounts

140,424

285

0.81%


133,022

358

1.08%

MMDA and savings accounts

75,031

33

0.18%


68,913

38

0.22%

FHLB borrowings

58,962

1,017

6.90%


70,575

625

3.54%

Repurchase agreements

39,093

236

2.41%


39,323

238

2.42%

Subordinated debentures

10,310

185

7.18%


10,310

186

7.22%









Total interest bearing liabilities

803,569

4,078

2.03%


873,987

4,592

2.10%









Non-interest bearing deposits

84,079




74,077



Other liabilities

6,284




4,983











Stockholders' equity

122,969




115,265











Total liabilities 








  and stockholders' equity

$1,016,901




$1,068,312











Net interest income


$6,193




$7,115


Interest rate spread



2.39%




2.83%

Net interest margin


2.67%




3.00%


 

 

 

SOURCE HopFed Bancorp, Inc.

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