Market Overview

HopFed Bancorp, Inc. Reports Third Quarter Results

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HOPKINSVILLE, Ky.--(BUSINESS WIRE)--

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, 2016. For the three month period ended September 30, 2016, the Company reported net income of $985,000, or $0.16 per share, basic and diluted, compared to net income of $510,000, or $0.08 per share basic and diluted, for the three month period ended September 30, 2015. For the nine month periods ended September 30, 2016, the Company's net income was $1.8 million, or $0.29 per share basic and diluted. 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.

Commenting on the third quarter results, John E. Peck, President and Chief Executive Officer, said, "The Company experienced net loan growth of $18.3 million during the three month period ended September 30, 2016. The Company's Nashville loan production office has originated loans with balances totaling $39.5 million at September 30, 2016, as compared to $23.3 million at June 30, 2016, and $7.8 million at September 30, 2015. Our loan pipeline remains robust. In addition to commercial loan growth, our secondary market loan operation continues to find success. In October 2016, we opened a loan production office in Brentwood, Tennessee, that enhances both our secondary market and portfolio lending in the attractive Williamson County, Tennessee market," Mr. Peck concluded.

Financial Highlights

  • At September 30, 2016, the Company's tangible book value was $14.31 per share and tangible common equity ratio was 10.18%. The Company's tangible book value and common equity ratio computations do not include 514,187 shares of common stock held by the Company's ESOP that the Company has currently not committed to release.
  • The Company purchased 16,029 shares of its common stock in the three month period ended September 30, 2016, at a weighted average price of $11.44 per share. For the nine month period ended September 30, 2016, the Company purchased 154,247 shares of its common stock at a weighted average price of $11.72 per share. At September 30, 2016, the Company owns 1,240,135 shares of treasury stock at a weighted average cost of $12.32 per share.
  • The Company's estimated Tier 1 Leverage Ratio and Total Risk Based Capital Ratio at September 30, 2016, were 10.87% and 16.92%, respectively. The Bank's Tier 1 Leverage Ratio and Total Risk Based Capital Ratio at September 30, 2016, were 10.75% and 16.76%, respectively.

Asset Quality

At September 30, 2016, the Company's level of non-accrual loans totaled $11.7 million, as compared to $7.4 million at December 31, 2015. A summary of non-accrual loans at September 30, 2016, and December 31, 2015, is as follows:

   

September 30, 2016

December 31, 2015

(Dollars in Thousands)
 
One-to-four family mortgages $ 700 $ 2,234
Home equity line of credit 124 48
Multi-family 1,772 1,968
Land 7,842 1,553
Non-residential real estate 248 247
Farmland --- 166
Consumer loans 31 8
Commercial loans   947   1,198
Total non-accrual loans $ 11,664 $ 7,422
 

The increase in non-accrual loans at September 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 consists of undeveloped land that is being held for future commercial development and a single family residence.

At September 30, 2016, non-performing assets totaled $12.4 million, or 1.43% of total assets. At September 30, 2016, the Company had no loans past due 90 days or more and still accruing interest. A summary of the activity in other real estate owned for the nine month period ended September 30, 2016, is as follows:

         

Activity During 2016

Balance   Reduction Gain (Loss) Balance
12/31/2015   Foreclosures   Proceeds   in Values   on Sale   9/30/2016
(Dollars in Thousands)
 
One-to-four family mortgages $ 55 --- (43 ) --- (12 ) $ ---
Home equity line of credit --- 68 --- --- --- 68
Multi-family real estate --- 141 --- --- --- 141
Land 943 130 (987 ) --- (13 ) 73
Non-residential real estate 738 --- (270 ) --- (9 ) 459
Consumer  

---

15

(19

)

---

4

   

---

 
Total $ 1,736 354 (1,319 ) --- (30 ) $ 741
 

Asset Quality (continued)

For the nine month period ended September 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 nine month period ended September 30, 2016, is as follows:

           
Removed
from
Balance at New Loss or Loan (Taken to) Balance at

12/31/15

TDR

Foreclosure

Amortization

Non-accrual

09/30/16

(Dollars in Thousands)
Multi-family real estate --- 816 --- --- --- 816

Non-residential real estate

$ 5,536 228 --- (77 ) ---   5,687
 
Total performing TDR $ 5,536 1,044 --- (77 ) --- $ 6,503
 

At September 30, 2016, the Company's level of loans classified as substandard was $31.9 million as compared to $28.1 million at December 31, 2015. The $3.8 million increase in classified assets at September 30, 2016, as compared to December 31, 2015, is largely the result of one large commercial agri-business loan that has been negatively affected by the decline in commodity prices and one unrelated multi-family loan. At September 30, 2016, the Company's classified loan to total risk-based capital ratio was 31.8%. The Company's specific reserve for impaired loans was $605,000 at September 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 September 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 $ 144,587 753 1,404 --- 146,744 --- 1,132
Home equity line of credit 34,023 25 515 --- 34,563 --- 335
Junior liens 1,557 32 12 --- 1,601 --- 11
Multi-family 27,623 --- 4,795 --- 32,418 351 157
Construction 37,775 --- --- --- 37,775 --- 806
Land 14,562 37 8,400 --- 22,999 --- 1,044
Non-residential real estate 160,096 5 10,658 --- 170,759 101 1,143
Farmland 44,066 505 2,306 --- 46,877 --- 1,015
Consumer loans 8,605 --- 303 --- 8,908 70 143
Commercial loans   79,484 666 3,534 --- 83,684 83 421
 
Total $ 552,378 2,023 31,927 --- 586,328 605 6,207
 

Net Interest Income

For the three month period ended September 30, 2016, total interest income was $8.0 million, as compared to $7.7 million for the three month period ended June 30, 2016, and $8.0 million for the three month period ended September 30, 2015. For the three month period ended September 30, 2016, total interest expense was $1.3 million, representing a linked quarter increase of $47,000 and a decline of $318,000 as compared to the three month period ended September 30, 2015. The decline of interest expense for the three month period ended September 30, 2016, as compared to the three month period ended September 30, 2015, is largely attributable to maturities of higher costing time deposits, reducing the Company's interest expense on deposits by $202,000 as compared to the three month period ended September 30, 2015. On a linked quarter basis, the slight increase in interest expense is largely the result of $12.7 million increase in total deposit balances and a 0.03% increase in the total cost interest bearing liabilities. For the three month period ended September 30, 2016, the Company's interest expense on subordinated debentures declined by $87,000 as compared to the three month period ended September 30, 2015, due to the maturing of an interest rate swap on the debenture.

For the three month period ended September 30, 2016, the Company's net interest income was $6.7 million, compared to $6.4 million for the three month periods ended June 30, 2016, and September 30, 2015, respectively. For the three month period ended September 30, 2016, the Company's net interest margin was 3.41%, as compared to 3.28% for the three month period ended June 30, 2016, and 3.25% for the three month period ended September 30, 2015. The net interest margin for the three month period ended June 30, 2016, was negatively influenced by a large loan being classified as non-accrual, resulting in a $200,000 reduction of interest income on loans.

For the nine month period ended September 30, 2016, the Company's total interest income was $23.8 million, as compared to $25.1 million for the nine month period ended September 30, 2015. The $1.3 million decline in total interest income for the nine month period ended September 30, 2016, as compared to September 30, 2015, was largely the result of a $1.7 million decline in investment income. For the nine month period ended September 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 nine month period ended September 30, 2016, declined by $27.6 million as compared to the nine month period ended September 30, 2015.

For the nine month period ended September 30, 2016, the Company's interest expense was $4.0 million, as compared to $4.9 million for the nine month period ended September 30, 2015. The decline of interest expense is the result of both lower interest rates and reduced average balances of time deposits. For the nine month period ended September 30, 2016, the average balance of retail time deposits were $257.8 million and their average cost was 0.95%. For the nine month period ended September 30, 2015, the average balance of retail time deposits were $289.2 million and their average cost was 1.16%. For the nine month period ended September 30, 2016, the Company's interest expense on subordinated debentures was $287,000, or 3.71%, as compared to $553,000, or 7.15%, for the nine month period ended September 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 nine month period ended September 30, 2016, the Company's net interest income was $19.8 million, as compared to $20.2 million for the nine month period ended September 30, 2015. For the nine month period ended September 30, 2016, the Company's net interest margin was 3.36%, as compared to 3.40% for the nine month period ended September 30, 2015. For the nine month period ended September 30, 2015, the recovery of non-accrual investment interest added 0.16% to the Company's net interest margin.

Non-interest Income

On a linked quarter basis, total non-interest income declined by $25,000 largely due to a $60,000 decline in financial services income. On a linked quarter basis, mortgage origination revenue declined by $20,000 while gains on the sale of securities and income from bank owned life insurance both increased by $27,000. For the three month period ended September 30, 2016, total non-interest income was $9,000 higher as compared to the three month period ended September 30, 2015. For the three month period ended September 30, 2016, service charge income was $719,000, representing a $31,000 decline as compared to the three month period ended September 30, 2015. For the three month period ended September 30, 2016, merchant card income was $308,000, as compared to $286,000 for the three month period ended September 30, 2015. The Company's mortgage origination revenue for the three month period ended September 30, 2016, was $415,000, as compared to $345,000 for the three month period ended September 30, 2015. For the three month period ended September 30, 2016, financial services income was $131,000, as compared to $186,000 for the three month period ended September 30, 2015.

For the nine month period ended September 30, 2016, non-interest income was $5.9 million, as compared to $5.7 million for the nine month period ended September 30, 2015. The increase in non-interest income for the nine month period ended September 30, 2016, as compared to the nine month period ended September 30, 2015, is largely the result of a $353,000 increase in mortgage origination revenue. For the nine month period ended September 30, 2016, other operating income was $568,000, as compared to $483,000 for the nine month period ended September 30, 2015. For the nine month period ended September 30, 2016, gains on the sale of securities were $422,000, a decline of $130,000 as compared to the nine month period ended September 30, 2016.

Non-interest Expense

On a linked quarter basis, the Company's non-interest expenses declined by $256,000. On a linked quarter basis, the most significant increases in operating expenses was a $40,000 increase in data processing expenses and a $63,000 increase in professional services expenses. For the three month period ended September 30, 2016, the Company's salaries and benefits expenses declined by $144,000 and other operating expense declined by $140,000, respectively, as compared to the three month period ended June 30, 2016. During the three month period ended September 30, 2016, the Company sold real estate accounted for a fixed asset for a gain of $72,000.

For the three month period ended September 30, 2016, non-interest expenses declined by $200,000 as compared to the three month period ended September 30, 2015. For the three month period ended September 30, 2016, salaries and benefits expense declined by $203,000 as compared to the three month period ended September 30, 2015. For the three month period ended September 30, 2016, other non-interest expense declined by $67,000 as compared to the three month period ended September 30, 2015. For the three month period ended September 30, 2016, no other non-interest expense items increased or decreased by more than $50,000 as compared to the three month period ended September 30, 2015.

Non-interest Expense (continued)

For the nine month period ended September 30, 2016, non-interest expenses were $22.7 million, a decline of $612,000 as compared to the nine month period ended September 30, 2015. For the nine month period ended September 30, 2016, expense items changing by more than $100,000 as compared to the nine month period ended September 30, 2015, include:

     

Nine Month Period Ended

Dollar Percentage

09/30/16

 

09/30/15

Change

Change

 
Salaries and benefits $11,646 $12,148 ($502 ) -4.13 %
Occupancy $2,398 $2,278 $120 5.27 %
Professional services $1,008 $1,177 ($169 ) -14.36 %

Loss on sale of other real estate owned

$30 $716 ($686 ) -95.81 %
Other expenses $1,771 $1,446 $325 22.48 %
 

Balance Sheet

At September 30, 2016, consolidated assets were $871.9 million, a decline of $31.2 million as compared to December 31, 2015. For the nine month period ended September 30, 2016, the Company experienced a $14.0 million decrease in time deposits, a $4.0 million decrease in FHLB borrowings, a $25.3 million decrease in cash balances and a $22.7 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 $23.9 million, to $213.3 million at September 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 two loan production offices in Nashville, Tennessee, and Brentwood 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 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. 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.

   
HOPFED BANCORP, INC.
Consolidated Condensed Balance Sheets
(Dollars in thousands)
 

Assets

September 30, 2016

December 31, 2015

(unaudited)
 
Cash and due from banks $ 24,741 46,926
Interest-earning deposits   4,695 7,772
Cash and cash equivalents 29,436 54,698
Federal Home Loan Bank stock, at cost 4,428 4,428
Securities available for sale 213,289 237,177
Loans held for sale 1,547 2,792

Loans receivable, net of allowance for loan losses of $6,812 at September 30, 2016, and $5,700 at December 31, 2015

579,063 556,349
Accrued interest receivable 3,603 4,139
Real estate and other assets owned 741 1,736
Bank owned life insurance 10,581 10,319
Premises and equipment, net 23,579 24,034
Deferred tax assets 2,144 2,642
Other assets   3,495 4,840
Total assets $ 871,906 903,154
 
 

Liabilities and Stockholders' Equity

Liabilities:
Deposits:
Non-interest-bearing accounts $ 130,327 125,070
Interest-bearing accounts
Interest-bearing checking accounts 182,360 203,779
Savings and money market accounts 98,929 95,893
Other time deposits   300,701 314,664
Total deposits 712,317 739,406

Advances from Federal Home Loan Bank

11,000 15,000
Repurchase agreements 44,465 45,770
Subordinated debentures 10,310 10,310
Advances from borrowers for taxes and insurance 1,111 614
Dividends payable 287 287
Accrued expenses and other liabilities   3,554 4,137
Total liabilities   783,044 815,524
 

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

 
   
HOPFED BANCORP, INC.
Consolidated Condensed Balance Sheets, Continued
(Dollars in thousands)
 

September 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 September 30, 2016, and December 31, 2015

--- ---

Common stock, par value $.01 per share; authorized 15,000,000 shares; 7,963,378 issued and 6,723,243 outstanding at September 30, 2016, and 7,951,699 issued and 6,865,811 outstanding at December 31, 2015

80 79
Additional paid-in-capital 58,658 58,604
Retained earnings 48,176 47,124

Treasury stock- common (at cost, 1,240,135 shares at September 30, 2016, and 1,085,888 shares at December 31, 2015)

 

(15,279 ) (13,471 )

Unallocated ESOP shares (at cost 514,187 shares at September 30, 2016, and 546,413 shares at December 31, 2015)

 

(6,756 ) (7,180 )
Accumulated other comprehensive income, net of taxes   3,983   2,474  
 
Total stockholders' equity   88,862   87,630  
 
Total liabilities and stockholders' equity $ 871,906   903,154  
 

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

 
   
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,
   

2016

2015

2016

2015

Interest income:
Loans receivable 6,569 6,374 19,175 18,895
Securities available for sale - taxable 1,099 1,237 3,544 4,953
Securities available for sale - nontaxable 326 398 1,019 1,267
Interest-earning deposits 10 3 38 11
Total interest income 8,004 8,012 23,776 25,126

 

Interest expense:
Deposits 1,044 1,246 3,146 3,751
Advances from Federal Home Loan Bank 33 71 134 206
Repurchase agreements 139 130 421 368
Subordinated debentures 99 186 287 553
Total interest expense 1,315 1,633 3,988 4,878
 
Net interest income 6,689 6,379 19,788 20,248
Provision for loan losses 255 275 1,178 760
 
Net interest income after
provision for loan losses 6,434 6,104 18,610 19,488
 
Non-interest income:
Service charges 719 750 2,094 2,184
Merchant card income 308 286 913 842
Mortgage origination revenue 415 345 1,218 865
Gain on sale of securities 79 103 422 552
Income from bank owned life insurance 104 108 265 252
Financial services commission 131 186 455 539
Other operating income 189 158 568 483
Total non-interest income 1,945 1,936 5,935 5,717
 

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

 
   
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,
   

2016

2015

2016

2015

Non-interest expenses:
Salaries and benefits 3,757 3,960 11,646 12,148
Occupancy 810 788 2,398 2,278
Data processing 744 724 2,175 2,117
State deposit tax 248 260 743 759
Intangible amortization --- --- --- 32
Professional services 368 380 1,008 1,177
Deposit insurance and examination 164 135 496 403
Advertising 376 337 1,067 983
Postage and communications 157 162 484 428
Supplies 148 107 456 364
Loss (gain) on real estate owned 22 (18) 30 716
Loss (gain) on sale of fixed assets (72) --- (72) ---
Real estate owned 182 202 443 406
Other operating 449 516 1,771 1,446
Total non-interest expense 7,353 7,553 22,645 23,257
 
Income before income tax 1,026 487 1,900 1,948
Income tax expense (benefit) 41 (23) 102 200
 
Net income 985 510 1,798 1,748

Net income per share:

Basic $0.16 $0.08 $0.29 $0.27
Diluted $0.16 $0.08 $0.29 $0.27
Dividend per share $0.04 $0.04 $0.12 $0.12
 
Weighted average shares outstanding - basic 6,212,231 6,359,556 6,247,536 6,493,449
Weighted average shares outstanding - diluted 6,212,231 6,359,556 6,247,536 6,493,449
 

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

September 30, 2016

June 30, 2016

Prior Quarter

 
Interest and dividend income:
Loans receivable 6,569 6,141 428
Securities available for sale - taxable 1,099 1,198 (99)
Securities available for sale - nontaxable 326 340 (14)
Interest-earning deposits 10 12 (2)
Total interest and dividend income 8,004 7,691 313
 
Interest expense:
Deposits 1,044 1,007 37
Advances from Federal Home Loan Bank 33 28 5
Repurchase agreements 139 139 ---
Subordinated debentures 99 94 5
Total interest expense 1,315 1,268 47
 
Net interest income 6,689 6,423 266
Provision for loan losses 255 465 (210)
 
Net interest income after
provision for loan losses 6,434 5,958 476
 
Non-interest income:
Service charges 719 698 21
Merchant card income 308 314 (6)
Mortgage orgination revenue 415 435 (20)
Gain on sale of securities 79 52 27
Income from bank owned life insurance 104 77 27
Financial services commission 131 191 (60)
Other operating income 189 203 (14)
Total non-interest income 1,945 1,970 (25)
 

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

September 30, 2016

June 30, 2016

Prior Quarter

 
Non-interest expenses:
Salaries and benefits $ 3,757 3,901 (144 )
Occupancy 810 801 9
Data processing 744 704 40
State deposit tax 248 247 1
Professional services 368 305 63
Deposit insurance and examination 164 159 5
Advertising 376 371 5
Postage and communications 157 172 (15 )
Supplies expense 148 159 (11 )
Loss (gain) on real estate owned 22 (1 ) 23
Loss (gain) on sale of fixed assets (72 ) --- (72 )
Real estate owned 182 202 (20 )
Other operating   449     589     (140 )
 
Total non-interest expense   7,353     7,609     (256 )
 
Income before income tax expense 1,026 319 707
Income tax expense   41     15     26  
 
Net income   985     304     681  
Net income per share
Basic $ 0.16   $ 0.05   $ 0.11  
Fully diluted $ 0.16   $ 0.05   $ 0.11  
Dividend per share $ 0.04   $ 0.04  
 
Weighted average shares outstanding - basic   6,212,231     6,232,457  
Weighted average shares outstanding - diluted   6,212,231     6,232,457  
 

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, 2016, and September 30, 2015, by $506,000 and $625,000, respectively, for a tax equivalent rate using a cost of funds rate of 0.80% for the nine month period ended September 30, 2016, and 0.95% for the nine month period ended September 30, 2015. The table adjusts tax-free loan income by $20,000 and $5,000, respectively, for nine month periods ended September 30, 2016, and September 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

9/30/2016

9/30/2016

9/30/2016

9/30/2015

9/30/2015

9/30/2015

(Table Amounts in Thousands, Except Percentages)
Loans $ 562,870 19,195 4.55 % 550,047 18,900 4.58 %
Investments AFS taxable 194,657 3,544 2.43 % 208,721 4,953 3.16 %
Investment AFS tax free 40,283 1,525 5.05 % 53,859 1,892 4.68 %
Interest bearing deposits   8,168 38   0.62 %   5,096 11   0.29 %
 
Total interest earning assets 805,978 24,302   4.02 % 817,723 25,756   4.20 %
 
Other assets   74,212   74,136
 
Total assets $ 880,190   891,859
 
Retail time deposits 257,790 1,835 0.95 % 289,157 2,516 1.16 %
Brokered deposits 35,853 294 1.09 % 32,706 279 1.14 %
Saving & MMDA 98,510 129 0.17 % 95,016 146 0.20 %
Interest bearing checking 203,736 888 0.58 % 195,929 810 0.55 %
FHLB borrowings 12,876 134 1.39 % 17,315 206 1.59 %
Repurchase agreements 44,186 421 1.27 % 43,726 368 1.12 %
Subordinated debentures   10,310 287   3.71 %   10,310 553   7.15 %
 
Total interest bearing liabilities 663,261 3,988   0.80 % 684,159 4,878   0.95 %
 
Non-interest bearing deposits 124,788 112,198
Other liabilities 3,501 4,363
 
Stockholders' equity   88,640   91,139
 
Total liabilities
and stockholders' equity $ 880,190 $ 891,859
 
Net interest income 20,314   20,878  
 
Net interest spread 3.22 % 3.25 %
 
Net interest margin 3.36 % 3.40 %
 

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, 2016, and September 30, 2015, by $162,000 and $197,000, respectively, for a tax equivalent rate using a cost of funds rate of 0.80% for the three month period ended September 30, 2016, and 0.97% for the three month period ended September 30, 2015. The table adjusts tax-free loan income by $6,000 for three month periods ended September 30, 2016, and $3,000 for the three month period ended September 30, 2015, respectively, for a tax equivalent rate using the same cost of funds rate:

           
Average Income and Average Average Income and Average
Average Expense Rates Balance Expense Rates
Average

Average

Average

9/30/2015

9/30/2015

9/30/2015

(Table Amounts in Thousands, Except Percentages)
Loans $ 575,083 6,575 4.57 % $ 555,792 6,377 4.59 %
Investments AFS taxable 185,812 1,099 2.37 % 196,524 1,237 2.52 %
Investment AFS tax free 38,467 488 5.07 % 51,063 595 4.66 %
Interest bearing deposit   5,517 10   0.73 %   6,305 3   0.19 %
 
Total interest earning assets 804,879 8,172   4.06 % 809,684 8,212   4.06 %
 
Other assets   69,248   67,860
 
Total assets $ 874,127 $ 877,544
 
Retail time deposits 255,840 617 0.96 % 286,516 840 1.17 %
Brokered deposits 38,574 107 1.11 % 30,149 89 1.18 %
Savings & MMDA 99,077 42 0.17 % 94,679 45 0.19 %
Interest bearing checking 191,721 278 0.58 % 191,903 272 0.57 %
FHLB borrowings 14,022 33 0.94 % 10,685 71 2.66 %
Repurchase agreements 46,282 139 1.20 % 47,124 130 1.10 %
Subordinated debentures   10,310 99   3.84 %   10,310 186   7.22 %
 
Total interest bearing liabilities 655,826 1,315   0.80 % 671,366 1,633   0.97 %
 
Non-interest bearing deposits 125,598 114,319
Other liabilities 3,781 4,574
 
Stockholders' equity   88,922   87,285
 
Total liabilities
and stockholders' equity $ 874,127 $ 877,544
 
Net interest income 6,857   6,579  
 
Interest rate spread 3.26 % 3.09 %
 
Net interest margin 3.41 % 3.25 %
 

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

 

HopFed Bancorp, Inc.
John E. Peck, 270-885-1171
President and CEO

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