HopFed Bancorp, Inc. Reports Fourth Quarter Results

Jan 31, 2013, 13:25 ET from HopFed Bancorp, Inc.

HOPKINSVILLE, Ky., Jan. 31, 2013 /PRNewswire/ --  HopFed Bancorp, Inc. (NASDAQ: HFBC) (the "Company"), the holding company for Heritage Bank (the "Bank"), today reported results for the three and twelve month periods ended December 31, 2012.  For the three month period ended December 31, 2012, the Company's net income available to common shareholders was $648,000, or $0.09 per share, basic and diluted, compared to net income available to common shareholders of $2.1 million, or $0.28 per share basic and diluted, for the three month period ended December 31, 2011. For the twelve month period ended December 31, 2012, the Company's net income available to common shareholders was $2.8 million, or $0.38 per share, basic and diluted, compared to a net income available to common shareholders of $1.9 million, or $0.25 per share basic and diluted, for the twelve month period ended December 31, 2011.

Commenting on the fourth quarter results, John E. Peck, President and Chief Executive Officer, said, "The Company has repurchased 100% of our Preferred Stock from the United States Treasury. The $18.4 million repurchase of Preferred Stock required the accelerated accretion of our warrant discount and a final dividend payment totaling $200,000 in December of 2012. The Warrant allowed the Treasury to purchase 253,667 shares of HopFed Common Stock at an exercise price of $10.88 and was scheduled to expire on December 12, 2018.  On January 16, 2013, the Company repurchased the Warrant issued to the Treasury for $256,257."

Mr. Peck continued, "We have been successful in reducing our cost of time deposits during the fourth quarter of 2012.  For the three month period ended December 31, 2012, the cost of retail time deposits was 1.74%, as compared to 1.92% for the three month period ended September 30, 2012. For the three month period ended December 31, 2012, the Company's cost of deposits was 1.20%, compared to 1.36% for the three month period ended September 30, 2012, and 1.46% for the three month period ended December 31, 2011. As discussed below, the Company's net interest margin improved substantially as compared to the three month period ended September 30, 2012."

Mr. Peck concluded, "The Company experienced a $9.2 million reduction in classified loans during the quarter and $23.7 million in the last two quarters. The Company's credit trends continue to improve and our non-performing asset ratio continues to decline. Reducing the level of adversely classified assets remains a priority for the Company."

Financial Highlights

  • The Company and Bank's capital ratios remain strong after the repurchase of all Preferred Stock. At December 31, 2012, the Company's tangible book value was $13.88 per share and our tangible common equity ratio is 10.83%. The Bank's Tier 1 Leverage and Total Risk Based Capital Ratios at December 31, 2012, are 10.62% and 19.07%, respectively. The Company's Tier 1 Leverage and Total Risk Based Capital Ratios are 10.85% and 19.42%, respectively.
  • At December 31, 2012, the Bank's and Company's net classified loans to risk based capital ratios were 60.74% and 59.36%, respectively.  At September 30, 2012, these ratios were 68.76% for the Bank and 60.42% for the Company. At June 30, 2012, these ratios were 86.50% for the Bank and 76.1% for the Company. These ratios are improved despite the $18.4 million repurchase of Preferred Stock.
  • At December 31, 2012, the Company's allowance for loan loss totaled $10.6 million, or 1.99% of total loans and 138.99% of non-accrual loans. In the twelve month period ended December 31, 2012, the Company's net charge offs totaled $2.9 million, or an annualized rate of 0.52% of average loans.
  • For the three month period ended December 31, 2012, the Company's net interest margin was 3.01%, as compared to 2.67% for the three month period ended September 30, 2012, and 3.13% for the three month period ended December 31, 2011.

Asset Quality

At December 31, 2012, the Company's level of non-accrual loans totaled $7.6 million, as compared to $6.1 million at December 31, 2011. At December 31, 2012, non-accrual loans total 1.43% of total loans. 

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

12/31/2012

12/31/2011

(Dollars in Thousands)

One-to-four family first mortgages

2,243

2,074

Home equity lines of credit

66

134

Junior liens 

4

101

Multi-family

38

---

Construction

---

---

Land

2,768

1,330

Non-residential real estate

1,134

2,231

Farmland

648

---

Consumer loans

145

9

Commercial loans

617

254

Total non-accrual loans

7,663

6,133

A summary of the level of classified loans at December 31, 2012, is as follows:

Specific 

Reserve

Impaired Loans

Reserve

for 

December 31, 2012

Special

for 

Performing 

Pass

Mention

Substandard

Doubtful

Total

Impairment

Loans

(Dollars in Thousands)

One-to-four family mortgages

156,961

779

4,595

---

162,335

754

1,736

    Home equity line of credit

34,737

1,109

1,237

---

37,083

76

298

    Junior liens

3,821

47

468

---

4,336

188

42

Multi-family

27,463

1,478

4,115

---

33,056

38

486

Construction

14,052

---

4,848

---

18,900

---

256

Land

14,374

7,683

23,849

---

45,906

932

1,252

Non-residential real estate

107,947

669

14,021

---

122,637

1,240

1,681

Farmland

38,496

1,230

7,073

---

46,799

184

528

Consumer loans

13,330

---

556

---

13,886

121

217

Commercial loans

44,191

516

5,842

---

50,549

308

311

 Total

455,372

13,511

66,604

---

535,487

3,841

6,807

At December 31, 2012, non-accrual loans plus other real estate owned totaled $9.2 million, or 0.95% 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 $1.5 million at December 31, 2012.

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

At December 31, 2012, the Company's level of loans classified as substandard and doubtful were $66.6 million and none, respectively.  At September 30, 2012, the Company's level of loans classified as substandard and doubtful were $75.7 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 $3.8 million at December 31, 2012, and $4.1 million at December 31, 2011.

At December 31, 2012, the Company's level of performing Troubled Debt Restructurings ("TDRs") was $11.1 million, as compared to $6.2 million at December 31, 2011. A summary of the activity in loans classified as performing TDRs for the twelve month period ended December 31, 2012, is as follows:

 

Removed

Removed

from

Balance at

New

Loss or 

Due to 

(Taken to)

Balance at

12/31/11

TDR 

Foreclosure

Performance

Non-accrual

12/31/12

One-to-four family mortgages

1,111

146

---

705

(1,336)

1,888

    Home equity line of credit

---

244

---

244

---

---

Junior Lien

757

---

---

561

---

196

Multi-family

---

239

---

5

---

234

Construction

---

4,272

160

---

---

4,112

Land

941

4,850

233

804

4,098

656

Non-residential real estate

3,366

---

453

2,913

(3,129)

3,129

Farmland

---

956

---

956

(909)

909

Consumer loans

32

75

5

97

---

5

Commercial loans

20

931

10

932

---

9

Total performing TDR

6,227

11,713

861

7,217

(1,276)

11,138

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

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

December 31, 2012

December 31, 2011

(Dollars in Thousands)

One-to-four family mortgages

$1,888

2,521

Home equity line of credit 

---

---

Junior lien

196

857

Multi-family

234

---

Construction

4,112

---

Land

3,424

941

Non-residential real estate

3,173

3,367

Farmland

909

---

Consumer loans

5

33

Commercial loans

128

125

Total TDR

$14,069

7,844

Less:

TDR in non-accrual status

One-to-four family mortgages

---

(1,410)

    Home equity line of credit

---

---

Junior lien

---

(100)

Multi-family

---

---

Construction

---

---

Land

(2,768)

---

Non-residential real estate

(44)

(1)

Farmland

---

---

Consumer loans

---

(1)

Commercial loans

(119)

(105)

Total performing TDR

$11,138

$6,227

A summary of the activity in other real estate owned for the twelve month period ended December 31, 2012, is as follows:

Balance

Reduction

Gain (Loss)

Balance

12/31/2011

Foreclosures

Sales

in Values

on Sales 

12/31/2012

(Dollars in Thousands)

One-to-four family mortgages

480

983

(954)

(92)

(29)

388

Multi-family

905

---

(875)

---

(30)

---

Construction

465

---

(451)

---

(14)

---

Land

248

1,229

(269)

(77)

(19)

1,112

Non-residential real estate

160

64

(178)

(20)

18

44

Consumer assets 

9

9

(11)

---

(3)

4

     Total

2,267

2,285

(2,738)

(189)

(77)

1,548

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

Net Interest Income

For the three month period ended December 31, 2012, the Company's net interest income was $6.5 million, compared to $7.2 million for the three month period ended December 31, 2011, and $5.9 million for the three month period ended September 30, 2012. For the twelve month period ended December 31, 2012, the Company's net interest income was $26.0 million, as compared to $27.8 million for the twelve month period ended December 31, 2011. For the twelve month period ended December 31, 2012, the Company's net interest margin was 2.90%, as compared to 3.02% for the twelve month period ended December 31, 2011. For the twelve month period ended December 31, 2012, net interest income was reduced by $480,000 as a result of FHLB prepayment penalties. FHLB prepayment penalties reduced the Company's net interest margin for the twelve month period ended December 31, 2012, by 0.05%.

The Company's net interest margin improved significantly for the three month period ended December 31, 2012, as compared to the three month period ended September 30, 2012. The improvement occurred largely as a result of the re-pricing of more than $96 million in time deposits. On a linked quarter basis, interest expense on deposits declined by $348,000 and interest expense on FHLB borrowings declined by $563,000.

The decline in the Company's net interest income and net interest margin for the twelve month period ended December 31, 2012, as compared to the twelve month period ending December 31, 2011, is largely the result of declining average loan balances and high level of cash flow from our investment portfolio.

Non-interest Income

Non-interest income for the three month period ended December 31, 2012, was $2.2 million, as compared to $2.4 million for the three month periods ended December 31, 2011, and $2.9 million for the three month period ended September 30, 2012, respectively. Non-interest income for the twelve month period ended December 31, 2012, and December 31, 2011, was $9.6 million and $10.2 million, respectively.

The decrease in non-interest income for the three and twelve month periods ended December 31, 2012, as compared to the three and twelve month period ended December 31, 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 $53,000 and $1.7 million for the three month and twelve month periods ended December 31, 2012, as compared to $600,000 and $2.9 million for the three and twelve month periods ended December 31, 2011. The Company recognized $944,000 in gains on the sale of securities during the three month period ended September 30, 2012.

For the three and twelve month periods ended December 31, 2012, the Company's income from financial services increased by $90,000 and $177,000, respectively, as compared to the same periods in 2011. For the three and twelve month periods ended December 31, 2012, income from fixed rate mortgage originations was $272,000 and $956,000, as compared to $295,000 and $720,000 for the three and twelve month periods ended December 31, 2011.  For the three month period ended December 31, 2012, income on bank owned life insurance increased by $95,000 as compared to the three month period ended December 31, 2011, as a result of the death benefit received.

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

Non-interest Expense

Non-interest expenses were $6.9 million and $6.7 million for the three month periods ended December 31, 2012, and December 31, 2011, respectively, and $7.0 million for the three month period ended September 30, 2012. For the twelve month period ended December 31, 2012, and December 31, 2011, non-interest expenses were $28.4 million and $28.7 million, respectively. On a linked quarter basis, non-interest expenses declined $39,000 due to lower levels of professional services expenses and deposit insurance expense.  These reductions were largely offset by a $197,000 increase in other operating expense attributable to an alternative minimum tax adjustment at December 31, 2012.

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 and the removal of informal regulatory actions.

Balance Sheet 

Total assets were $967.7 million at December 31, 2012, a decrease of $73.1 million as compared to December 31, 2011.  The decline in the size of the balance sheet is largely the result of an $82.9 million reduction in time deposit balances and a $19.6 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 $27.4 million.  For the twelve month period ended December 31, 2012, gross loans declined by approximately $32.0 million, to $535.6 million as compared to $567.6 million at December 31, 2011.  

The Company recently repurchased all outstanding Preferred Stock and the associated Warrant sold under the Treasury's Capital Purchase Plan in December 2008. In repurchasing all outstanding preferred shares, the Company will not have to pay $920,000 in preferred dividends and incur $111,120 of warrant accretion in 2013, equal to $0.14 per share, basic and diluted. As a result of the repurchase of preferred shares, the Company accelerated a final dividend payment $87,000 and warrant accretion of $111,120, reducing net income available to common shareholders by $0.03 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's operations include 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.

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

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

Assets

December 31, 2012

December 31, 2011

Cash and due from banks 

$32,309

44,389

Interest-earning deposits

4,867

4,371

Cash and cash equivalents

37,176

48,760

Federal Home Loan Bank stock, at cost 

4,428

4,428

Securities available for sale 

356,345

383,782

Loans receivable, net of allowance for loan losses of $10,648

    at December 31, 2012, and $11,262 at December 31, 2011

524,985

556,360

Accrued interest receivable

5,398

6,183

Real estate and other assets owned

1,548

2,267

Bank owned life insurance 

9,323

9,135

Premises and equipment, net 

22,557

23,431

Deferred tax assets 

---

1,132

Intangible asset 

292

519

Other assets

5,637

4,823

         Total assets

$967,689

1,040,820

Liabilities and Stockholders' Equity

Liabilities:

Deposits:  

   Non-interest-bearing accounts

$94,083

79,550

   Interest-bearing accounts

   NOW accounts

147,047

130,114

   Savings and money market accounts

81,643

70,443

   Other time deposits

437,092

519,988

     Total deposits

759,865

800,095

Advances from Federal Home Loan Bank 

43,741

63,319

Repurchase agreements 

43,508

43,080

Subordinated debentures 

10,310

10,310

Advances from borrowers for taxes and insurance

396

153

Dividends payable

180

176

Deferred tax liability

568

---

Accrued expenses and other liabilities 

4,122

5,204

   Total liabilities

862,690

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)

December 31, 2012

December 31, 2011

Stockholders' equity

Preferred stock, par value $0.01 per share;  

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

no shares outstanding at December 31, 2012; and 

18,400 shares issued and outstanding with a liquidation 

preference of $18,400,000 at 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 December 31, 2012, and 7,895,336 issued

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

79

79

Common stock warrant 

556

556

Additional paid-in-capital

76,288

75,967

Retained earnings-substantially restricted

41,829

39,591

Treasury stock- preferred (at cost, 18,400 shares at

December 31, 2012, and none at December 31, 2011)

(18,400)

---

Treasury stock- common  (at cost, 402,916 shares at

December 31, 2012, and December 31, 2011)

(5,076)

(5,076)

Accumulated other comprehensive income, net of taxes

9,723

7,366

Total stockholders' equity

104,999

118,483

Total liabilities and stockholders' equity

$967,689

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 Twelve Month Periods

Ended December 31,

Ended December 31,

2012

2011

2012

2011

Interest and dividend income:

Loans receivable

7,211

8,239

29,828

33,493

Investment in securities, taxable

1,899

2,462

8,722

10,465

Nontaxable securities available for sale

571

530

2,266

2,263

Interest-earning deposits

4

6

24

19

Total interest and dividend income

9,685

11,237

40,840

46,240

Interest expense:

Deposits 

2,292

3,028

10,571

14,207

Advances from Federal Home Loan Bank

454

611

2,609

2,557

Repurchase agreements

242

241

963

909

Subordinated debentures

181

191

734

742

   Total interest expense

3,169

4,071

14,877

18,415

Net interest income

6,516

7,166

25,963

27,825

Provision for loan losses 

500

476

2,275

5,921

Net interest income after

provision for loan losses

6,016

6,690

23,688

21,904

Non-interest income:

Service charges

966

985

3,840

3,813

Merchant card income

222

197

842

768

Mortgage origination revenue

272

295

956

720

Gain on sale of securities

53

600

1,671

2,897

Other than temporarily impairment

        on available for sale securities

---

(141)

---

(155)

Income from bank owned life insurance

161

66

399

316

Financial services commission

293

203

1,071

894

Other operating income

219

224

860

940

Total non-interest income

2,186

2,429

9,639

10,193

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 Twelve Month Periods

Ended December 31,

Ended December 31,

2012

2011

2012

2011

Non-interest expenses:

Salaries and benefits 

3,464

3,279

13,979

13,266

Occupancy expense 

917

817

3,531

3,269

Data processing expense

631

589

2,494

2,645

State deposit tax

162

151

647

627

Intangible amortization expense

49

65

227

291

Professional services expense

285

386

1,605

1,372

Deposit insurance and examination expense

267

417

1,539

2,021

Advertising expense

405

304

1,357

1,235

Postage and communications expense

118

128

562

549

Supplies expense

75

105

355

399

Loss on disposal of equipment

---

---

13

145

(Gain) Loss on sale of real estate owned

(21)

61

266

1,703

Real estate owned expenses 

33

60

123

276

Other operating expenses

547

319

1,743

895

Total non-interest expense

6,932

6,681

28,441

28,693

Income before income tax expense

1,270

2,438

4,886

3,404

Income tax expense 

165

109

817

484

Net income 

1,105

2,329

4,069

2,920

Less:

       Dividend on preferred shares

318

232

1,007

920

       Accretion dividend on preferred shares

139

28

222

111

Net income available to common shareholders

$648

$2,069

$2,840

$1,889

Net income available to common shareholders

     Per share, basic

$0.09

$0.28

$0.38

$0.25

     Per share, diluted

$0.09

$0.28

$0.38

$0.25

Dividend per share

$0.02

$0.02

$0.08

$0.20

Weighted average shares outstanding - basic 

7,487,726

7,484,420

7,486,445

7,460,294

Weighted average shares outstanding - diluted 

7,487,726

7,484,420

7,486,445

7,460,294

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

12/31/2012

9/30/2012

Prior Quarter

Interest and dividend income:

Loans receivable

7,211

7,403

(192)

Investment in securities, taxable

1,899

2,014

(115)

Nontaxable securities available for sale

571

573

(2)

Interest-earning deposits

4

6

(2)

Total interest and dividend income

9,685

9,996

(311)

Interest expense:

Deposits 

2,292

2,640

(348)

Advances from Federal Home Loan Bank

454

1,017

(563)

Repurchase agreements

242

236

6

Subordinated debentures

181

185

(4)

   Total interest expense

3,169

4,078

(909)

Net interest income

6,516

5,918

598

Provision for loan losses 

500

506

(6)

Net interest income after

provision for loan losses

6,016

5,412

604

Non-interest income:

Service charges

966

963

3

Merchant card income

222

212

10

Mortgage orgination revenue

272

218

54

Gain on sale of securities

53

944

(891)

Income from bank owned life insurance

161

80

81

Financial services commission

293

280

13

Other operating income

219

200

19

Total non-interest income

2,186

2,897

(711)

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 

12/31/2012

9/30/2012

Prior Quarter

Non-interest expenses:

Salaries and benefits 

$3,464

3,447

17

Occupancy expense 

917

875

42

Data processing expense

631

610

21

State deposit tax

162

161

1

Intangible amortization expense

49

48

1

Professional services expense

285

435

(150)

Deposit insurance and examination expense

267

419

(152)

Advertising expense

405

324

81

Postage and communications expense

118

146

(28)

Supplies expense

75

64

11

Loss on disposal of equipment

---

5

(5)

Loss on sale of real estate owned

(21)

68

(89)

Real estate owned expenses

33

19

14

Other operating expenses

547

350

197

Total non-interest expense

6,932

6,971

(39)

Income before income tax expense

1,270

1,338

(68)

Income tax expense 

165

263

(98)

Net income

1,105

1,075

30

Less:

       Dividend on preferred shares

318

229

89

       Accretion dividend on preferred shares

139

27

112

Net income available to common shareholders

$648

819

(171)

Net income available to common shareholders

     Per share, basic

$0.09

$0.11

(0.02)

     Per share, diluted

$0.09

$0.11

(0.02)

Dividend per share

$0.02

$0.02

Weighted average shares outstanding - basic

7,487,726

7,487,283

Weighted average shares outstanding - diluted

7,487,726

7,487,283

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 twelve month periods ended December 31, 2012, and December 31, 2011, by $1,076,000 and $1,065,000, respectively; for a tax equivalent rate using a cost of funds rate of 1.80% for the twelve month period ended December 31, 2012, and 2.00% for the twelve month period ended December 31, 2011.  The table adjusts tax-free loan income by $9,000 for the twelve month period ended December 31, 2012, and $34,000 for the twelve month period ended December 31, 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

12/31/2012

12/31/2012

12/31/2012

12/31/2011

12/31/2011

12/31/2011

Loans

$542,292

$29,837

5.50%

$575,133

$33,527

5.83%

Investments AFS taxable

313,347

8,722

2.78%

308,022

10,465

3.40%

InvestmentsAFS tax free

68,428

3,342

4.88%

66,104

3,328

5.03%

Federal funds

9,850

24

0.24%

9,075

19

0.21%

Total interest earning assets

933,917

41,925

4.49%

958,334

47,339

4.94%

Other assets

85,560

108,997

Total assets

$1,019,477

$1,067,331

Retail time deposits

$435,454

8,316

1.91%

$469,052

10,908

2.33%

Brokered deposits

51,193

946

1.85%

78,996

1,642

2.08%

Now accounts

145,173

1,180

0.81%

136,828

1,543

1.13%

MMDA and savings accounts

74,574

129

0.17%

68,347

114

0.17%

FHLB borrowings

56,990

2,609

4.58%

71,352

2,557

3.58%

Repurchase agreements

40,915

963

2.35%

39,894

909

2.28%

Subordinated debentures

10,310

734

7.12%

10,310

742

7.20%

Total interest bearing liabilities

814,609

14,877

1.83%

874,779

18,415

2.11%

Non-interest bearing deposits

84,304

72,961

Other non-interest 

  bearing liabilities

6,559

4,562

Stockholders' equity

114,005

115,029

Total liabilities 

  and stockholders' equity

$1,019,477

$1,067,331

Net change in interest earning

  assets and interest bearing liabilities

$27,048

$28,924

Interest rate spread

2.66%

2.83%

Net yield on interest earning assets

2.90%

3.02%

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, 2012, and December 31, 2011, by $274,000 and $249,000, respectively; for a tax equivalent rate using a cost of funds rate of 1.60% for the three month period ended December 31, 2012, and 2.00% for the three month period ended December 31, 2011.  The table adjusts tax-free loan income by $1,000 for the three month period ended December 31, 2012 and $8,000 for the three month period ended December 31, 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

12/31/2012

12/31/2012

12/31/2012

12/31/2011

12/31/2011

12/31/2011

Loans

$532,847

$7,212

5.41%

$560,987

$8,247

5.88%

Investments AFS taxable

285,565

1,899

2.66%

314,703

2,463

3.13%

InvestmentsAFS tax free

70,554

845

4.79%

63,809

779

4.89%

Federal funds

14,003

4

0.11%

10,747

6

0.22%

Total interest earning assets

902,969

9,960

4.41%

950,246

11,495

4.84%

Other assets

79,807

97,842

Total assets

$982,776

$1,048,088

Retail time deposits

$408,353

1,777

1.74%

$463,586

2,421

2.09%

Brokered deposits

47,127

193

1.64%

63,738

300

1.88%

Now accounts

145,644

290

0.80%

133,464

287

0.86%

MMDA and savings accounts

76,335

32

0.17%

71,250

21

0.12%

FHLB borrowings

44,044

454

4.12%

67,747

610

3.60%

Repurchase agreements

40,758

242

2.37%

40,550

241

2.38%

Subordinated debentures

10,310

181

7.02%

10,310

191

7.41%

Total interest bearing liabilities

772,571

3,169

1.64%

850,645

4,071

1.91%

Non-interest bearing deposits

88,783

75,169

Other non-interest 

  bearing liabilities

6,753

6,153

Stockholders' equity

114,669

116,121

Total liabilities 

  and stockholders' equity

$982,776

$1,048,088

Net change in interest earning

  assets and interest bearing liabilities

$6,791

$7,424

Interest rate spread

2.77%

2.93%

Net yield on interest earning assets

3.01%

3.13%

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

 

SOURCE HopFed Bancorp, Inc.