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HopFed Bancorp, Inc. Reports Fourth 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 twelve month periods ended December 31, 2016. For the three month period ended December 31, 2016, the Company's net income was $1.1 million, or $0.18 per share, basic and diluted. For the three month period ended December 31, 2015, the Company's net income was $656,000, or $0.10 per share, basic and diluted. For the twelve month period ended December 31, 2016, the Company's net income was $2.9 million, or $0.47 per share, basic and diluted. For the twelve month period ended December 31, 2015, the Company's net income was $2.4 million, or $0.38 per share, basic and diluted.

Commenting on the Company's results for the three and twelve month periods ended December 31, 2016, John E. Peck, President and Chief Executive Officer, said, "The Company experienced loan growth of $25.2 million and $18.3 million for the three month periods ended December 31, 2016, and September 30, 2016, respectively. In the three month period ended December 31, 2016, the Company's loan growth largely occurred in our legacy markets. Our improving profitability levels are a direct result of our recent lending success. Entering 2017, our loan pipeline remains robust and we are optimistic about our future."

Mr. Peck continued, "In the three month period ended December 31, 2016, the Company's interest bearing checking accounts grew by $27.0 million, or 14.8%. The seasonal increase in transaction account balances is largely the result of our growth in the number of agri-business and municipal clients. In the first quarter of 2017, the Company will change the product lineup of our consumer transaction accounts in an attempt to maximize the profitability of our deposit relationships. This may result in increased volatility in the total outstanding balances of these accounts."

Financial Highlights

  • At December 31, 2016, the Company's tangible book value was $13.90 per share and tangible common equity ratio was 9.69%. The Company's tangible book value and common equity ratio computations do not include an estimated 498,346 unallocated shares of common stock held by the Company's ESOP.
  • The Bank's estimated Tier 1 Leverage Ratio and Total Risk Based Capital Ratio at December 31, 2016, were 10.68% and 16.04%, respectively. The Company's consolidated Tier 1 Leverage Ratio and Total Risk Based Capital Ratio at December 31, 2016, were 10.79% and 16.19%, respectively.
  • The Company purchased 6,001 shares of its common stock in the quarter at a weighted average price of $11.34 per share. For the twelve month period ended December 31, 2016, the Company purchased 160,248 shares of its common stock at a weighted average price of $11.71 per share. At December 31, 2016, the Company owns 1,246,136 shares of treasury stock at a weighted average cost of $12.32 per share.

Asset Quality

At December 31, 2016, the Company's level of non-accrual loans totaled $9.1 million, as compared to $7.4 million at December 31, 2015. A summary of non-accrual loans at December 31, 2016, and December 31, 2015, is as follows:

       
December 31, 2016 December 31, 2015
(Dollars in Thousands)
 
One-to-four family mortgages $ 270 $ 2,234
Home equity line of credit 402 48
Multi-family 208 1,968
Land 7,675 1,553
Non-residential real estate --- 247
Farmland --- 166
Consumer loans 3 8
Commercial loans   516   1,198
Total non-accrual loans $ 9,074 $ 7,422
 

At December 31, 2016, non-accrual loans plus other real estate and other assets owned totaled $11.5 million, or 1.29% of total assets, compared to $12.4 million, or 1.42% of assets, at September 30, 2016, and $9.2 million, or 1.01% of assets, at December 31, 2015. Net charge offs for the three month period ended December 31, 2016, were $764,000, an annualized charge off rate of 0.52% of average loans. Net charge offs for the twelve month period ended December 31, 2016, were $830,000, or 0.15% of average loans. The increase in loan charge offs for the three month period ended December 31, 2016, was the result of a foreclosure on multi-family properties that were previously in non-accrual status.

A summary of the activity in other real estate owned for the twelve month period ended December 31, 2016, is as follows:

   
Activity During 2016
Balance             Reduction    

Gain
(Loss)

    Balance
12/31/2015 Foreclosures   Proceeds in Values on Sale 12/31/2016
(Dollars in Thousands)
One-to-four family mortgages $ 55 135 (43 ) --- (12 ) $ 135
HELOC --- 68 (34 ) (8 ) 2 28
Multi-family --- 1,915 (153 ) --- 13 1,775
Land 943 130 (1,108 ) --- 35 ---
Consumer --- 15 (15 ) --- --- ---
Non-residential real estate   738 --- (270 ) ---   (9 )   459
 
Total   1,736 2,263 (1,623 ) (8 ) 29     2,397
 

Asset Quality (continued)

For the twelve month period ended December 31, 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 Bank revised the customer's payment terms 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 twelve month period ended December 31, 2016, is as follows:

                       
Balance at New

Loss or

Loan

Removed
from
(Taken to)

Balance
12/31/15 TDR Foreclosure Amortization Non-accrual 12/31/16
(Dollars in Thousands)

Multi-family

$ --- 816 --- (1 ) --- $ 815
 
Non-residential real estate 5,536 228 --- (118 ) --- 5,646
 
Total performing TDR   5,536 1,044 --- (119 ) ---   6,461
 

At December 31, 2016, the Company's level of loans classified as substandard was $29.3 million as compared to $28.1 million at December 31, 2015. At December 31, 2016, the Company's classified loan to risk-based capital ratio was 29.2%. The Company's specific reserve for impaired loans was $1.1 million at December 31, 2016, and $630,000 at December 31, 2015. A summary of loans by type, risk classification and related valuation allowance, gross of deferred loan fees of $439,000, at December 31, 2016, is as follows:

                           
Specific Allowance
Allowance for

December 31, 2016

Special Impaired Loans for Performing
Pass Mention Substandard Doubtful Total Impairment Loans
(Dollars in Thousands)
One-to-four family mortgages $ 145,965 744 1,253 --- $ 147,962 --- 805
Home equity line of credit 35,109 25 550 --- 35,684 --- 246
Junior liens 1,411 30 11 --- 1,452 --- 7
Multi-family 31,280 --- 3,004 --- 34,284 --- 419
Construction 39,255 --- --- --- 39,255 --- 295
Land 15,581 35 8,224 --- 23,840 1,036 960
Non-residential real estate 172,834 3 10,542 --- 183,379 --- 845
Farmland 44,832 674 2,290 --- 47,796 --- 735
Consumer loans 7,943 --- 335 --- 8,278 84 118
Commercial loans   85,174 603 3,130 ---   88,907 28 534
 
Total   579,384 2,114 29,339 ---   610,837 1,148 4,964
 

Net Interest Income

For the three month period ended December 31, 2016, the Company's net interest income was $6.6 million, compared to $6.3 million for the three-month period ended December 31, 2015, and $6.7 million for the three-month period ended September 30, 2016. For the three month period ended December 31, 2016, the Company's net interest margin was 3.35%, as compared to 3.21% for the three month period ended December 31, 2015, and 3.41% for the three month period ended September 30, 2016. The decline in linked quarter net interest income and net interest margin was largely the result of a $6.3 million decline in the average balance of available for sale taxable securities and a $3.4 million decline in the average balance of available for sale tax free investments.

For the twelve month period ended December 31, 2016, the Company's net interest income was $26.4 million, as compared to $26.6 million for the twelve month period ended December 31, 2015. For the twelve month period ended December 31, 2016, the Company's interest expense was $5.3 million as compared to $6.6 million for the twelve month period ended December 31, 2015. For the twelve month period ended December 31, 2016, the Company's net interest margin was 3.35%, as compared to 3.36% for the twelve month period ended December 31, 2015.

The decline in interest income for the twelve month period ended December 31, 2016, compared to December 31, 2015, is largely the result of a $1.6 million decline in income on taxable securities available for sale. A significant portion of this decline is the result of the collection of $830,000 of non-accrual investment interest in March 2015. For the twelve-month period ended December 31, 2016, the average balance and yield of taxable securities available for sale was $190.8 million at 2.41%, compared to $203.2 million and 3.03% for the twelve month period ended December 31, 2015. For the year ended December 31, 2015, the collection of non-accrual investment interest increased the Company's yield on taxable securities by 0.41% and our net interest margin by 0.11%.

Non-Interest Income

Non-interest income for the three month periods ended December 31, 2016, September 30, 2016, and December 31, 2015, was $2.0 million, $1.9 million and $1.9 million, respectively. For the twelve month period ended December 31, 2016, non-interest income was $7.9 million as compared to $7.6 million for the twelve month period ended December 31, 2015.

For the three and twelve month periods ended December 31, 2016, service charge income was $694,000 and $2.8 million, respectively, compared to $741,000 and $2.9 million for the three month period and twelve month period ended December 31, 2015, and $719,000 for the three-month period ended September 30, 2016. The decline in service charge income represents a multi-year trend of declining income despite significant growth in both the numbers and balances of transaction accounts and is the result of regulatory changes. This trend was a significant factor in the Company's decision to revise our transaction deposit account lineup.

For the three month period ended December 31, 2016, mortgage origination revenue was $367,000, compared to $415,000 for the three-month period ended September 30, 2016, and $310,000 for the three month period ended December 31, 2015. The decline in mortgage origination income on a linked quarter basis is largely the result of a 75 basis point increase in the ten-year treasury that occurred in November 2016, reducing the amount of mortgage applications received from buyers.

For the three month period ended December 31, 2016, gains on the sale of securities were $190,000, as compared to $139,000 for the three-month period ended December 31, 2015, and $79,000 for the three month period ended September 30, 2016. In the three month period ended December 31, 2016, the Company used security sales to fund loan growth.

Non-Interest Expense

On a linked quarter basis, the Company's non-interest expenses declined by $142,000, largely the result of the $156,000 reduction in real estate owned expenses and a $51,000 gain realized on the sale of real estate owned properties. For the three month periods ended December 31, 2016, and December 31, 2015, non-interest expenses were $7.2 million, respectively, as compared to $7.4 million for the three month period ended September 30, 2016.

For the twelve-month period ended December 31, 2016, the Company's non-interest expenses were $29.9 million, representing a decline of $589,000 as compared to the twelve-month period ended December 31, 2015. For the twelve-month period ended, December 31, 2016, the Company experienced the following significant changes in operating expenses as compared to the twelve-month period ended December 31, 2015:

       
Balance Percentage
Change Change
 
Salary and benefits $ (410,000 ) -2.6 %
Occupancy 96,000 3.1 %
Data processing 115,000 4.1 %
Professional services (102,000 ) -6.8 %
Loss on real estate owned (737,000 ) -102.9 %
Other operating expenses 375,000 19.2 %
 

Balance Sheet

At December 31, 2016, consolidated assets were $891.5 million, a decline of $11.7 million as compared to December 31, 2015. At December 31, 2016, the Company experienced the following changes in our balance sheet:

       
Balance Percentage
Change Change
 
Cash and cash equivalents $ (28,949 ) -52.9 %
Securities (27,697 ) -11.7 %
Gross loans 48,349 8.6 %
Time deposits (21,586 ) -6.9 %
Total deposits (6,524 ) -0.9 %
FHLB borrowings (4,000 ) -26.7 %
Repurchase agreements 1,885 4.1 %
 

For the twelve month period ended December 31, 2016, a significant portion of the Company's loan growth occurred in two markets. In Christian County, Kentucky, the Company's loan growth was $31.4 million, or 30.6%. At December 31, 2016, the Company's Nashville, Tennessee loan production offices had outstanding loan balances of $42.5 million, representing loan growth of $26.3 million during the twelve month period ended December 31, 2016.

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 changed to Heritage Bank USA, Inc., and its charter 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 loan production offices in Brentwood, Tennessee, and Nashville, Tennessee. The Company offers a broad line of financial services through Heritage Bank Wealth Management of Murray, Kentucky, Hopkinsville, Kentucky, Kingston Springs, Tennessee and Clarksville, Tennessee. Heritage Bank Mortgage Services of Clarksville, Tennessee, offers long term fixed rate single 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 at our 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

December 31, 2016 December 31, 2015
(unaudited)
 
Cash and due from banks $ 21,779 46,926
Interest-earning deposits   3,970 7,772
Cash and cash equivalents 25,749 54,698
Federal Home Loan Bank stock, at cost 4,428 4,428
Securities available for sale 209,480 237,177
Loans held for sale 1,094 2,792

Loans receivable, net of allowance for loan losses of $6,112 at December 31, 2016, and $5,700 at December 31, 2015

604,286 556,349
Accrued interest receivable 3,799 4,139
Real estate and other assets owned 2,397 1,736
Bank owned life insurance 10,662 10,319
Premises and equipment, net 23,461 24,034
Deferred tax assets 3,052 2,642
Other assets   3,078 4,840
Total assets $ 891,486 903,154
 
 

Liabilities and Stockholders' Equity

Liabilities:
Deposits:
Non-interest-bearing accounts $ 131,145 125,070
Interest-bearing accounts:
Interest-bearing checking accounts 209,347 203,779
Savings and money market accounts 99,312 95,893
Other time deposits   293,078 314,664
Total deposits 732,882 739,406
 

Advances from Federal Home Loan Bank

11,000 15,000
Repurchase agreements 47,655 45,770
Subordinated debentures 10,310 10,310
Advances from borrowers for taxes and insurance 766 614
Dividends payable 288 287
Accrued expenses and other liabilities   2,157 4,137
Total liabilities   805,058 815,524
 

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)

 
December 31, 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 December 31, 2016, and December 31, 2015

--- ---

Common stock, par value $.01 per share; authorized 15,000,000 shares; 7,963,378 issued and 6,717,242 outstanding at December 31, 2016, and 7,951,699 issued and 6,865,811 outstanding at December 31, 2015

80 79
Additional paid-in-capital 58,660 58,604
Retained earnings 49,035 47,124

Treasury stock- common (at cost, 1,246,136 shares at December 31, 2016, and 1,085,888 shares at December 31, 2015)

(15,347 ) (13,471 )

Unallocated ESOP shares (at cost, 498,346 at December 31, 2016, and 546,413 shares at December 31, 2015)

(6,548 ) (7,180 )
Accumulated other comprehensive income, net of taxes   548     2,474  
 
Total stockholders' equity   86,428     87,630  
 
Total liabilities and stockholders' equity $ 891,486   $ 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 Twelve Month Periods
Ended December 31, Ended December 31,
       
2016 2015 2016 2015
Interest income:
Loans receivable $ 6,603 6,405 25,778 25,300
Securities available for sale - taxable 1,051 1,196 4,595 6,149
Securities available for sale - nontaxable 289 384 1,308 1,651
Interest-earning deposits   8 11 46 22
Total interest income   7,951 7,996 31,727 33,122
 
Interest expense:
Deposits 1,094 1,280 4,240 5,031
Advances from Federal Home Loan Bank 29 83 163 289
Repurchase agreements 87 123 508 491
Subordinated debentures   101 186 388 739
Total interest expense   1,311 1,672 5,299 6,550
 
Net interest income 6,640 6,324 26,428 26,572
Provision for loan losses   63 291 1,241 1,051
 

Net interest income after provision for loan losses

  6,577 6,033 25,187 25,521
 
Non-interest income:
Service charges 694 741 2,788 2,925
Merchant card income 311 288 1,224 1,130
Mortgage origination revenue 367 310 1,585 1,175
Gain on sale of securities 190 139 612 691
Income from bank owned life insurance 78 83 343 335
Financial services commission 159 146 614 685
Other operating income   201 178 769 661
Total non-interest income   2,000 1,885 7,935 7,602
 

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 Twelve Month Periods
Ended December 31, Ended December 31,
       
2016 2015 2016 2015
Non-interest expenses:
Salaries and benefits $ 3,754 3,662 15,400 15,810
Occupancy 775 799 3,173 3,077
Data processing 767 710 2,942 2,827
State bank tax 247 259 990 1,018
Intangible amortization --- 1 --- 33
Professional services 396 329 1,404 1,506
Deposit insurance and examination 113 183 609 586
Advertising 334 319 1,401 1,302
Postage and communications 141 149 625 577
Supplies 151 163 607 527
(Gain) loss on sale of fixed assets --- 1 (72 ) 1
(Gain) loss on real estate owned (51 ) --- (21 ) 716
Real estate owned expense 26 105 469 511
Other operating expenses   558     508   2,329     1,954
Total non-interest expense   7,211     7,188   29,856     30,445
 
Income before income tax 1,366 730 3,266 2,678
Income tax expense   260     74   362     274
 
Net income $ 1,106   $ 656

 

2,904  

 

2,404
 
Net income per share:
Basic $ 0.18   $ 0.10 $ 0.47   $ 0.38
Diluted $ 0.18   $ 0.10 $ 0.47   $ 0.38
Dividend per share $ 0.04   $ 0.04 $ 0.16   $ 0.16
 
Weighted average shares outstanding - basic   6,193,278     6,328,324   6,233,860     6,372,277
Weighted average shares outstanding - diluted   6,193,278     6,328,324   6,233,860     6,372,277
 

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 Change from
Months Ended Prior Quarter
 
12/31/2016 9/30/2016
 
Interest income:
Loans receivable $ 6,603 6,569 34
Securities available for sale - taxable 1,051 1,099 (48 )
Securities available for sale - nontaxable 289 326 (37 )
Interest-earning deposits   8 10 (2 )
Total interest income   7,951 8,004 (53 )
 
Interest expense:
Deposits 1,094 1,044 50
Advances from Federal Home Loan Bank 29 33 (4 )
Repurchase agreements 87 139 (52 )
Subordinated debentures   101 99 2  
Total interest expense   1,311 1,315 (4 )
 
Net interest income 6,640 6,689 (49 )
Provision for loan losses   63 255 (192 )
 

Net interest income after provision for loan losses

  6,577 6,434 143  
 
Non-interest income:
Service charges 694 719 (25 )
Merchant card income 311 308 3

Mortgage origination revenue

367 415 (48 )
Gain on sale of securities 190 79 111

Income from bank owned life insurance

78 104 (26 )
Financial services commission 159 131 28
Other operating income   201 189 12  
Total non-interest income   2,000 1,945 55  
 

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 Change from
Months Ended Prior Quarter
12/31/2016 9/30/2016
 
Non-interest expenses:
Salaries and benefits $ 3,754 3,757 (3 )
Occupancy 775 810 (35 )
Data processing 767 744 23
Franchise and deposit tax 247 248 (1 )
Professional services 396 368 28
Deposit insurance and examination 113 164 (51 )
Advertising 334 376 (42 )
Postage and communications 141 157 (16 )
Supplies 151 148 3
Loss (gain) on sale of fixed asset --- (72 ) 72
(Gain) loss on sale of real estate owned (51 ) 22 (73 )
Real estate owned expense 26 182 (156 )
Other operating expenses   558     449     109  
 
Total non-interest expense   7,211     7,353     (142 )
 
Income before income tax expense 1,366 1,026 340
Income tax expense   260     41     219  
 
Net income $ 1,106   $ 985   $ 121  
Net income per share:
 
Basic $ 0.18   $ 0.16   $ 0.02  
Diluted $ 0.18   $ 0.16   $ 0.02  
Dividend per share $ 0.04   $ 0.04  
 
Weighted average shares outstanding - basic   6,193,278     6,232,465  
Weighted average shares outstanding - diluted   6,193,278     6,232,465  
 

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)

 

The table below adjusts tax-free investment income for the twelve month periods ended December 31, 2016, and December 31, 2015, by $650 and $813 respectively, for a tax equivalent rate using a cost of funds rate of 0.80% for the twelve month period ended December 31, 2016, and 1.00% for the twelve month period ended December 31, 2015. The table adjusts tax-free loan income by $23 and $22 respectively, for the twelve month periods ended December 31, 2016, and December 31, 2015, respectively, for a tax equivalent rate using the same cost of funds rate:

 
Average Income & Average Average Income & Average
Balance Expense Rates Balance Expense Rates
12/31/2016 12/31/2016 12/31/2016 12/31/2015 12/31/2015 12/31/2015
 
Loans $ 570,674 $ 25,801 4.52 % $ 552,265 $ 25,322 4.59 %
Investments AFS taxable 190,843 4,595 2.41 % 203,160 6,149 3.03 %
Investments AFS tax free 38,981 1,958 5.02 % 52,836 2,464 4.66 %
Federal funds   7,512   46   0.61 %   8,528   22   0.26 %
 
Total interest earning assets 808,010   32,400   4.01 % 816,789   33,957   4.16 %
 
Other assets   72,407   75,032
 
Total assets $ 880,417 $ 891,821
 
 
 
Retail time deposits 258,069 2,488 0.96 % 287,601 3,357 1.39 %
Brokered deposits 36,409 398 1.09 % 33,288 378 1.52 %
Now accounts 202,916 1,183 0.58 % 194,432 1,105 0.75 %
MMDA and savings accounts 98,715 171 0.17 % 97,495 191 0.18 %
FHLB borrowings 12,404 163 1.31 % 17,279 289 3.96 %
Repurchase agreements 43,566 508 1.17 % 43,495 491 1.13 %
Subordinated debentures   10,310   388   3.76 %   10,310   739   7.17 %
 
Total interest bearing liabilities 662,389   5,299   0.80 % 683,900   6,550   0.96 %
 
Non-interest bearing deposits 125,709 113,350

Other non-interest bearing liabilities

3,274 3,865
 
Stockholders' equity   89,045   90,706
 

 

Total liabilities and stockholders' equity

$ 880,417 $ 891,821
 
 
Net interest income $ 27,101   $ 27,407  
Interest rate spread 3.21 % 2.90 %
Net interest margin   3.35 %   3.36 %
 

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 December 31, 2016, and December 31, 2015, by $144 and $189, respectively, for a tax equivalent rate using a cost of funds rate of 0.80% for the three-month period ended December 31, 2016, and 1.00% for the three-month period ended December 31, 2015. The table adjusts tax-free loan income by $5 for three-month period ended December 31, 2016, and $8 for the three-month period ended December 31, 2015, respectively, for a tax equivalent rate using the same cost of funds rate:

 
Average Income & Average Average Income & Average
Balance Expense Rates Balance Expense Rates
12/31/2016 12/31/2016 12/31/2016 12/31/2015 12/31/2015 12/31/2015
 
Loans $ 589,282 $ 6,608 4.49 % $ 559,423 $ 6,413 4.59 %
Investments AFS taxable 179,483 1,051 2.34 % 186,659 1,196 2.56 %
Investments AFS tax free 35,102 433 4.93 % 49,780 573 4.60 %
Federal funds   5,915   8   0.54 %   15,635   11   0.28 %
 
Total interest earning assets 809,782   8,100   4.00 % 811,497   8,193   4.04 %
 
Other assets   70,443   82,070
 
Total assets $ 880,225 $ 893,567
 
 
Retail time deposits 258,899 653 1.01 % 282,985 841 1.19 %
Brokered deposits 38,064 104 1.09 % 35,013 99 1.13 %
Now accounts 200,475 295 0.59 % 195,141 295 0.60 %
MMDA and savings accounts 99,325 42 0.17 % 99,698 45 0.18 %
FHLB borrowings 11,000 29 1.05 % 17,174 83 1.93 %
Repurchase agreements 41,717 87 0.83 % 42,810 123 1.15 %
Subordinated debentures   10,310   101   7.22 %   10,310   186   7.22 %
 
Total interest bearing liabilities 659,790   1,311   0.79 % 683,131   1,672   0.98 %
 
Non-interest bearing deposits 128,450 116,769

Other non-interest bearing liabilities

3,557 4,347
 
Stockholders' equity   88,428   89,320
 

Total liabilities and stockholders' equity

$ 880,225 $ 893,567
 
 
Net interest income $ 6,789   $ 6,521  
Interest rate spread 3.21 % 3.06 %
Net interest margin   3.35 %   3.21 %
 

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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