HopFed Bancorp, Inc. Reports Second Quarter Results
HOPKINSVILLE, Ky., July 26, 2012 /PRNewswire/ -- HopFed Bancorp, Inc. (NASDAQ: HFBC) (the "Company"), the holding company for Heritage Bank (the "Bank"), today reported results for the three and six month periods ended June 30, 2012. For the three month period ended June 30, 2012, the Company's net income available to common shareholders was $903,000, or $0.12 per share, basic and diluted, compared to net income available to common shareholders of $550,000, or $0.07 per share, basic and diluted, for the three month period ended June 30, 2011. For the six month period ended June 30, 2012, the Company's net income available to common shareholders was $1.4 million, or $0.18 per share, basic and diluted, compared to a net loss attributable to common shareholders of $1.5 million, or ($0.21) per share, basic and diluted, for the six month period ended June 30, 2011.
Commenting on the second quarter results, John E. Peck, President and Chief Executive Officer, said, "The Company's operating results improved modestly during the three month period ended June 30, 2012, as compared to the three month period ended March 31, 2012, and June 30, 2011, due to an increase in gains on the sales of securities and lower provision for loan loss expenses. Slight improvements in our local economy are tempered by drought concerns for our area farmers. At June 30, 2012, the Company had $90.1 million in loans classified as substandard and $297,000 in loans classified as doubtful as compared to $47.5 million classified as substandard and $1.7 million classified as doubtful at December 31, 2012. The Company's main focus for the second half of 2012 will be to reduce its level of adversely classified assets."
Mr. Peck concluded, "The Company continues to improve its deposit mix as we reduce our level of time deposit funding. At June 30, 2012, time deposits account for 62.0% of total deposits, compared to 68.1% at June 30, 2011. Total brokered deposits are $51.2 million, or 6.51% of deposits, compared to $80.0 million at June 30, 2011. In the second half of 2012, the Company will experience an increase in the amount of liabilities that mature, offering the opportunity to further reduce our interest expense."
Financial Highlights
- The Company and Bank's capital ratios continue to strengthen. At June 30, 2012, the Company's tangible book value was $13.60 and our tangible common equity ratio is 10.14%. The Bank's tier 1 capital and total risk based capital ratios at June 30, 2012, are 10.47% and 19.12%, respectively. The Company's tier 1 capital and total risk based capital ratios are 11.89% and 21.77%, respectively.
- At June 30, 2012, the Company's and Bank's net classified asset to risk based capital ratios were 76.1% and 87.6%, respectively. At December 31, 2011, these ratios were 43.0% for the Company and 49.9% for the Bank. As compared to March 31, 2012, total classified assets increased by $8.8 million. The increase in classified assets consisted of a $5.0 million increase in loans secured by farmland, a $3.2 million increase in land development loans, a $2.4 million increase in multi-family loans and a $1.7 million increase in commercial real estate loans.
- At June 30, 2012, the Company's allowance for loan loss totaled $10.6 million, or 1.92% of total loans and 87.23% of non-accrual loans. In the six month period ended June 30, 2012, the Company's net charge offs totaled $2.2 million, or an annualized rate of 0.79% of average loans.
- For the three month period ended June 30, 2012, the Company's net interest margin was 2.87%, as compared to 3.06% for the three month period ended June 30, 2011, and 2.97% for the three month period ended March 31, 2012. The Company's net interest margin continues to decline as outstanding loan balances decline and higher yielding investments continued to be called.
Asset Quality
At June 30, 2012, the Company's level of non-accrual loans totaled $12.1 million, as compared to $6.1 million at December 31, 2011. The increase in non-accrual loans is largely the result of two land development loans totaling $3.2 million and three non-residential real estate loans totaling $3.6 million being placed into non-accrual status.
A summary of non-accrual loans at June 30, 2012, and December 31, 2011, is as follows:
| 6/30/2012 |
12/31/2011 |
||
| (Dollars in Thousands) |
|||
| One-to-four family first mortgages |
2,577 |
2,074 |
|
| Home equity lines of credit |
91 |
134 |
|
| Junior liens |
104 |
101 |
|
| Multi-family |
190 |
--- |
|
| Construction |
--- |
--- |
|
| Land |
4,290 |
1,330 |
|
| Non-residential real estate |
4,000 |
2,231 |
|
| Farmland |
727 |
--- |
|
| Consumer loans |
16 |
9 |
|
| Commercial loans |
121 |
254 |
|
| Total non-accrual loans |
12,116 |
6,133 |
|
A summary of the level of classified loans at June 30, 2012, is as follows:
| Specific |
Reserve |
|||||||
| Impaired Loans |
Reserve |
for |
||||||
| June 30, 2012 |
Special |
for |
Performing |
|||||
| Pass |
Mention |
Substandard |
Doubtful |
Total |
Impairment |
Loans |
||
| (Dollars in Thousands) |
||||||||
| One-to-four family mortgages |
156,113 |
2,251 |
9,253 |
--- |
167,617 |
698 |
1,738 |
|
| Home equity line of credit |
35,480 |
1,542 |
1,072 |
91 |
38,185 |
37 |
348 |
|
| Junior liens |
4,624 |
453 |
485 |
--- |
5,562 |
--- |
47 |
|
| Multi-family |
19,610 |
4,719 |
8,276 |
--- |
32,605 |
666 |
494 |
|
| Construction |
11,298 |
--- |
3,974 |
--- |
15,272 |
--- |
138 |
|
| Land |
13,714 |
7,764 |
28,425 |
--- |
49,903 |
1,205 |
842 |
|
| Non-residential real estate |
137,110 |
2,895 |
31,321 |
206 |
171,532 |
853 |
2,501 |
|
| Consumer loans |
14,151 |
28 |
225 |
--- |
14,404 |
57 |
234 |
|
| Commercial loans |
46,262 |
2,306 |
7,040 |
--- |
55,608 |
215 |
495 |
|
| Total |
438,362 |
21,958 |
90,071 |
297 |
550,688 |
3,731 |
6,837 |
|
At June 30, 2012, non-accrual loans plus other real estate owned totaled $13.5 million, or 1.31% 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 $1.3 million at June 30, 2012.
A summary of the activity in other real estate owned for the six month period ended June 30, 2012, is as follows:
| Activity During 2012 |
|||||||
| Balance |
Reduction |
Gain (Loss) |
Balance |
||||
| 12/31/2011 |
Foreclosures |
Sales |
in Values |
on Sales |
6/30/2012 |
||
| (Dollars in Thousands) |
|||||||
| One-to-four family mortgages |
480 |
451 |
(134) |
(104) |
14 |
707 |
|
| Multi-family |
905 |
--- |
(875) |
--- |
(30) |
--- |
|
| Construction |
465 |
--- |
(235) |
--- |
(14) |
216 |
|
| Land |
248 |
383 |
(141) |
(46) |
(19) |
425 |
|
| Non-residential real estate |
160 |
--- |
(140) |
(20) |
--- |
--- |
|
| Consumer assets |
9 |
--- |
(9) |
--- |
--- |
--- |
|
| Total |
2,267 |
834 |
(1,534) |
(170) |
(49) |
1,348 |
|
At June 30, 2012, the Company's level of loans classified as substandard and doubtful were $94.7 million and $300,000, 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 $3.7 million at June 30, 2012, and $4.1 million at December 31, 2011, respectively.
At June 30, 2012, the Company's level of performing Troubled Debt Restructurings ("TDRs") was $9.6 million, as compared to $6.2 million at December 31, 2011. A summary of the activity in loans classified as TDRs for the six month period ended June 30, 2012, is as follows:
| Balance at |
New |
Loss or |
Removed due |
Balance at |
||||
| December 31, 2011 |
TDR |
Foreclosure |
to performance |
June 30, 2012 |
||||
| (Dollars in Thousands) |
||||||||
| One-to-four family mortgages |
1,111 |
100 |
--- |
705 |
506 |
|||
| Home equity line of credit |
--- |
244 |
--- |
37 |
207 |
|||
| Junior Lien |
757 |
--- |
--- |
757 |
--- |
|||
| Multi-family |
--- |
239 |
--- |
1 |
238 |
|||
| Construction |
--- |
--- |
--- |
--- |
--- |
|||
| Land |
941 |
4,850 |
7 |
934 |
4,850 |
|||
| Farmland |
--- |
956 |
--- |
--- |
956 |
|||
| Non-residential real estate |
3,366 |
--- |
253 |
589 |
2,524 |
|||
| Consumer loans |
32 |
75 |
--- |
97 |
10 |
|||
| Commercial loans |
20 |
931 |
--- |
570 |
381 |
|||
| Total TDR |
6,227 |
7,395 |
260 |
3,690 |
9,672 |
|||
A summary of TDRs and non-performing TDRs at June 30, 2012, and December 31, 2011, is stated below:
| June 30, 2012 |
December 31, 2011 |
|||
| (Dollars in Thousands) |
||||
| One-to-four family mortgages |
$2,084 |
2,521 |
||
| Home equity line of credit |
$207 |
--- |
||
| Junior lien |
--- |
857 |
||
| Multi-family |
238 |
--- |
||
| Construction |
--- |
--- |
||
| Land |
7,175 |
941 |
||
| Non-residential real estate |
3,214 |
3,367 |
||
| Farmland |
956 |
--- |
||
| Consumer loans |
10 |
33 |
||
| Commercial loans |
381 |
125 |
||
| Total TDR |
$14,265 |
7,844 |
||
| Less: |
||||
| TDR in non-accrual status |
||||
| One-to-four family mortgages |
(1,578) |
(1,410) |
||
| Home equity line of credit |
--- |
--- |
||
| Junior lien |
--- |
(100) |
||
| Multi-family |
--- |
--- |
||
| Construction |
--- |
--- |
||
| Land |
(2,325) |
--- |
||
| Non-residential real estate |
(690) |
(1) |
||
| Consumer loans |
--- |
(1) |
||
| Commercial loans |
--- |
(105) |
||
| Total performing TDR |
$9,672 |
$6,227 |
||
Net Interest Income
For the three month period ended June 30, 2012, the Company's net interest income was $6.7 million, compared to $7.0 million for the three month period ended June 30, 2011, and $6.9 million for the three month period ended March 31, 2012. For the three month period ended June 30, 2012, the Company's net interest margin was 2.87%, as compared to 3.06% for the three month period ended June 30, 2011, and 2.98% for the three month period ended March 31, 2012.
For the six month period ended June 30, 2012, the Company's net interest income was $13.5 million, as compared to $13.8 million for the six month period ended June 30, 2011. For the six month period ended June 30, 2012, the Company's net interest margin was 2.93%, as compared to 3.00% for the six month period ended June 30, 2011.
The decline in the Company's net interest income and net interest margin is largely to 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. During the first of 2012, assets have declined and re-priced more quickly than deposits. In the second half of 2012, the Company will experience an increase in the amount of time deposits maturing at rates that are significantly higher than current market rates. Given the poor climate for reinvesting excess funds, management anticipates that our currently pricing strategy may result in further reductions in both time and brokered deposits. Management will fund the reduction in assets by selling investment securities.
Non-interest Income
Non-interest income for the three month period ended June 30, 2012, was $2.6 million, as compared to $2.1 million for the three month periods ended June 30, 2011, and $1.9 million for the three month period ended March 31, 2012, respectively.
Non-interest income for the six month periods ended June 30, 2012, and June 30, 2011, was $4.6 million and $4.5 million, respectively.
The increase in non-interest income for the three month period ended June 30, 2012, as compared to the three month periods ended June 30, 2011, and March 31, 2012, was primarily the result of an increase in gains on the sale of securities. The Company recognized net gains on the sale of securities of $630,000, $329,000 and $44,000 for the three month periods ended June 30, 2012, June 30, 2011, and March 31, 2012, respectively. In the three month period ended June 30, 2012, the sale of securities and resulting gains were utilized to fund the reduction in higher costing time and brokered deposits.
For the three and six month periods ended June 30, 2012, the Company's revenue related to the origination and sale of fixed rate mortgage loans was $263,000 and $466,000, respectively, as compared to $58,000 and $130,000 for the same periods in 2011. The Company has experienced an increase in the amount of refinancing activity on single family homes as long term interest rates have reached historic lows.
Non-interest Expense
Non-interest expenses were $7.4 million, $7.4 million and $7.1 million for the three month periods ended June 30, 2012, June 30, 2011, and March 31, 2012, respectively. For the six months ended June 30, 2012, and June 30, 2011, non-interest expenses were $14.5 million and $14.9 million, respectively.
On a linked quarter basis, professional services expenses increased by $110,000, deposit and examination fees increased by $130,000 and other operating expenses increased by $200,000. 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 March 31, 2012, to June 30, 2012.
For the three and six month periods ended June 30, 2012, and June 30, 2011, the decline in the Company's losses on other real estate owned has largely been offset by increases in salaries and benefits and other operating expenses.
Balance Sheet
Total assets were $1.03 billion at June 30, 2012, a decrease of $14.7 million as compared to December 31, 2011. The decline in assets is largely the result of a $32.6 million reduction in time deposit balances. The reduction in time deposits included a $7.1 million decline in brokered deposits.
For the six month period ended June 30, 2012, gross loans declined by approximately $16.7 million, to $550.9 million as compared to $567.6 million at December 31, 2011. In the Company's market area, desirable lending opportunities remained limited at this time, making meaningful loan growth challenging.
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 Company 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 that are sold into 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 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 |
June 30, 2012 |
December 31, 2011 |
|
| (Unaudited ) |
|||
| Cash and due from banks |
$37,300 |
44,389 |
|
| Interest-earning deposits in Federal Home Loan Bank |
7,433 |
4,371 |
|
| Cash and cash equivalents |
44,733 |
48,760 |
|
| Federal Home Loan Bank stock, at cost |
4,428 |
4,428 |
|
| Securities available for sale |
391,782 |
383,782 |
|
| Loans held for sale |
130 |
--- |
|
| Loans receivable, net of allowance for loan losses of |
|||
| $10,568 at June 30, 2012, and $11,262 at December 31, 2011 |
540,303 |
556,360 |
|
| Accrued interest receivable |
5,374 |
6,183 |
|
| Real estate and other assets owned |
1,348 |
2,267 |
|
| Bank owned life insurance |
9,293 |
9,135 |
|
| Premises and equipment, net |
22,935 |
23,431 |
|
| Deferred tax assets |
--- |
1,132 |
|
| Intangible asset |
389 |
519 |
|
| Other assets |
5,371 |
4,823 |
|
| Total assets |
$1,026,086 |
1,040,820 |
|
| Liabilities and Stockholders' Equity |
|||
| Liabilities: |
|||
| Deposits: |
|||
| Non-interest-bearing accounts |
$83,938 |
79,550 |
|
| Interest-bearing accounts |
|||
| NOW accounts |
139,614 |
130,114 |
|
| Savings and money market accounts |
74,946 |
70,443 |
|
| Other time deposits |
487,411 |
519,988 |
|
| Total deposits |
785,909 |
800,095 |
|
| Advances from Federal Home Loan Bank |
64,484 |
63,319 |
|
| Repurchase agreements |
37,732 |
43,080 |
|
| Subordinated debentures |
10,310 |
10,310 |
|
| Advances from borrowers for taxes and insurance |
547 |
153 |
|
| Dividends payable |
179 |
176 |
|
| Accrued expenses and other liabilities |
5,539 |
5,204 |
|
| Total liabilities |
904,700 |
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) |
|||
| June 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 June 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 June 30, 2012, and 7,895,336 issued |
|||
| and 7,492,420 outstanding at December 31, 2011(a) |
79 |
79 |
|
| Common stock warrants (253,666 issued and outstanding) (a) |
556 |
556 |
|
| Additional paid-in-capital |
76,077 |
75,967 |
|
| Retained earnings-substantially restricted |
40,662 |
39,591 |
|
| Treasury stock (at cost, 402,916 shares at June 30, 2012, |
|||
| and December 31, 2011) |
(5,076) |
(5,076) |
|
| Accumulated other comprehensive income, net of taxes |
9,088 |
7,366 |
|
| Total stockholders' equity |
121,386 |
118,483 |
|
| Total liabilities and stockholders' equity |
$1,026,086 |
1,040,820 |
|
| (a) Shares and warrants have been restated to reflect |
|||
| stock dividends distributed through October 18, 2011 |
|||
| 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 Six Month Periods |
|||||||
| Ended June 30, |
Ended June 30, |
|||||||
| 2012 |
2011 |
2012 |
2011 |
|||||
| Interest and dividend income: |
||||||||
| Loans receivable |
7,413 |
8,440 |
15,214 |
16,922 |
||||
| Investment in securities, taxable |
2,434 |
2,732 |
4,809 |
5,422 |
||||
| Nontaxable securities available for sale |
547 |
590 |
1,122 |
1,201 |
||||
| Interest-earning deposits |
6 |
4 |
14 |
8 |
||||
| Total interest and dividend income |
10,400 |
11,766 |
21,159 |
23,553 |
||||
| Interest expense: |
||||||||
| Deposits |
2,755 |
3,731 |
5,639 |
7,636 |
||||
| Advances from Federal Home Loan Bank |
565 |
627 |
1,138 |
1,321 |
||||
| Repurchase agreements |
237 |
225 |
485 |
430 |
||||
| Subordinated debentures |
181 |
180 |
368 |
365 |
||||
| Total interest expense |
3,738 |
4,763 |
7,630 |
9,752 |
||||
| Net interest income |
6,662 |
7,003 |
13,529 |
13,801 |
||||
| Provision for loan losses |
400 |
452 |
1,269 |
4,970 |
||||
| Net interest income after |
||||||||
| provision for loan losses |
6,262 |
6,551 |
12,260 |
8,831 |
||||
| Non-interest income: |
||||||||
| Service charges |
973 |
952 |
1,911 |
1,808 |
||||
| Merchant card income |
212 |
195 |
408 |
377 |
||||
| Mortgage origination revenue |
263 |
58 |
466 |
130 |
||||
| Gain on sale of securities |
630 |
329 |
674 |
1,050 |
||||
| Other than temporarily impairment |
||||||||
| on available for sale securities |
--- |
--- |
--- |
(14) |
||||
| Income from bank owned life insurance |
79 |
76 |
158 |
165 |
||||
| Financial services commission |
271 |
232 |
498 |
419 |
||||
| Other operating income |
211 |
276 |
441 |
548 |
||||
| Total non-interest income |
2,639 |
2,118 |
4,556 |
4,483 |
||||
| 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 Six Month Periods |
||||||
| Ended June 30, |
Ended June 30, |
||||||
| 2012 |
2011 |
2012 |
2011 |
||||
| Non-interest expenses: |
|||||||
| Salaries and benefits |
3,561 |
3,352 |
7,068 |
6,678 |
|||
| Occupancy expense |
884 |
797 |
1,739 |
1,585 |
|||
| Data processing expense |
627 |
716 |
1,252 |
1,403 |
|||
| State deposit tax |
162 |
157 |
324 |
325 |
|||
| Intangible amortization expense |
65 |
81 |
130 |
162 |
|||
| Professional services expense |
498 |
378 |
886 |
693 |
|||
| Deposit insurance and examination expense |
549 |
567 |
853 |
1,159 |
|||
| Advertising expense |
209 |
328 |
628 |
607 |
|||
| Postage and communications expense |
157 |
133 |
298 |
281 |
|||
| Supplies expense |
105 |
102 |
216 |
198 |
|||
| Loss on disposal of equipment |
2 |
2 |
8 |
140 |
|||
| Loss on sale of real estate owned |
72 |
563 |
219 |
1,072 |
|||
| Real estate owned expenses |
25 |
127 |
71 |
200 |
|||
| Other operating expenses |
523 |
133 |
846 |
382 |
|||
| Total non-interest expense |
7,439 |
7,436 |
14,538 |
14,885 |
|||
| Income before income tax expense |
1,462 |
1,233 |
2,278 |
(1,571) |
|||
| Income tax expense |
300 |
426 |
389 |
(534) |
|||
| Net income |
1,162 |
807 |
1,889 |
(1,037) |
|||
| Less: |
|||||||
| Dividend on preferred shares |
231 |
229 |
460 |
456 |
|||
| Accretion dividend on preferred shares |
28 |
28 |
56 |
55 |
|||
| Net income available to common shareholders |
$903 |
$550 |
$1,373 |
($1,548) |
|||
| Net income available to common shareholders |
|||||||
| Per share, basic |
$0.12 |
$0.07 |
$0.18 |
($0.21) |
|||
| Per share, diluted |
$0.12 |
$0.07 |
$0.18 |
($0.21) |
|||
| Dividend per share |
$0.02 |
$0.08 |
$0.04 |
$0.16 |
|||
| Weighted average shares outstanding - basic(a) |
7,485,283 |
7,467,438 |
7,484,498 |
7,465,539 |
|||
| Weighted average shares outstanding - diluted(a) |
7,485,283 |
7,467,438 |
7,484,498 |
7,465,539 |
|||
| 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 |
||||||
| 6/30/2012 |
3/31/2012 |
Prior Quarter |
||||
| Interest and dividend income: |
||||||
| Loans receivable |
7,413 |
7,801 |
(388) |
|||
| Investment in securities, taxable |
2,434 |
2,375 |
59 |
|||
| Nontaxable securities available for sale |
547 |
575 |
(28) |
|||
| Interest-earning deposits |
6 |
8 |
1 |
|||
| Total interest and dividend income |
10,400 |
10,759 |
(356) |
|||
| Interest expense: |
||||||
| Deposits |
2,755 |
2,884 |
(129) |
|||
| Advances from Federal Home Loan Bank |
565 |
573 |
(8) |
|||
| Repurchase agreements |
237 |
248 |
(11) |
|||
| Subordinated debentures |
181 |
187 |
(6) |
|||
| Total interest expense |
3,738 |
3,892 |
(154) |
|||
| Net interest income |
6,662 |
6,867 |
(205) |
|||
| Provision for loan losses |
400 |
869 |
(469) |
|||
| Net interest income after |
||||||
| provision for loan losses |
6,262 |
5,998 |
264 |
|||
| Non-interest income: |
||||||
| Service charges |
973 |
938 |
35 |
|||
| Merchant card income |
212 |
196 |
16 |
|||
| Mortgage origination revenue |
263 |
203 |
60 |
|||
| Gain on sale of securities |
630 |
44 |
586 |
|||
| Income from bank owned life insurance |
79 |
79 |
0 |
|||
| Financial services commission |
271 |
227 |
44 |
|||
| Other operating income |
211 |
230 |
(19) |
|||
| Total non-interest income |
2,639 |
1,917 |
722 |
|||
| 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 |
|||||
| 6/30/2012 |
3/31/2012 |
Prior Quarter |
|||
| Non-interest expenses: |
|||||
| Salaries and benefits |
$3,561 |
3,507 |
54 |
||
| Occupancy expense |
884 |
855 |
29 |
||
| Data processing expense |
627 |
625 |
2 |
||
| State deposit tax |
162 |
162 |
0 |
||
| Intangible amortization expense |
65 |
65 |
--- |
||
| Professional services expense |
498 |
388 |
110 |
||
| Deposit insurance and examination expense |
549 |
419 |
130 |
||
| Advertising expense |
209 |
304 |
--- |
||
| Postage and communications expense |
157 |
141 |
16 |
||
| Supplies expense |
105 |
111 |
(6) |
||
| Loss on disposal of equipment |
2 |
6 |
(6) |
||
| Loss on sale of real estate owned |
72 |
147 |
(75) |
||
| Real estate owned expenses |
25 |
46 |
(21) |
||
| Other operating expenses |
523 |
323 |
200 |
||
| Total non-interest expense |
7,439 |
7,099 |
340 |
||
| Income before income tax expense |
1,462 |
816 |
646 |
||
| Income tax expense |
300 |
89 |
211 |
||
| Net income |
1,162 |
727 |
435 |
||
| Less: |
|||||
| Dividend on preferred shares |
231 |
229 |
2 |
||
| Accretion dividend on preferred shares |
28 |
28 |
--- |
||
| Net income (loss) available (attributable) |
|||||
| to common stockholders |
$903 |
470 |
433 |
||
| Net income (loss) available (attributable) |
|||||
| to common stockholders |
|||||
| Per share, basic |
$0.12 |
$0.06 |
0.06 |
||
| Per share, diluted |
$0.12 |
$0.06 |
0.06 |
||
| Dividend per share |
$0.02 |
$0.02 |
|||
| 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 six month periods ended June 30, 2012, and June 30, 2011, by $533,000 and $560,000, respectively; for a tax equivalent rate using a cost of funds rate of 1.80% for the six month period ended June 30, 2012, and 2.20% for the six month period ended June 30, 2011. The table adjusts tax-free loan income by $5,000 for the six month period ended June 30, 2012, and $17,000 for the six month period ended June 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 |
||||
| 6/30/2012 |
6/30/2012 |
6/30/2012 |
6/30/2011 |
6/30/2011 |
6/30/2011 |
||||
| (Table Amounts in Thousands, Except Percentages) |
|||||||||
| Loans |
$547,815 |
15,219 |
5.56% |
$585,625 |
16,939 |
5.78% |
|||
| Investments AFS taxable |
329,809 |
4,809 |
2.92% |
296,122 |
5,422 |
3.66% |
|||
| Investment AFS tax free |
66,852 |
1,655 |
4.95% |
67,978 |
1,761 |
5.18% |
|||
| Federal funds |
14,762 |
14 |
0.19% |
8,471 |
8 |
0.19% |
|||
| Total interest earning assets |
959,238 |
21,697 |
4.52% |
958,196 |
24,130 |
5.04% |
|||
| Other assets |
89,115 |
118,070 |
|||||||
| Total assets |
$1,048,353 |
$1,076,266 |
|||||||
| Retail time deposits |
451,622 |
4,459 |
1.97% |
472,620 |
5,703 |
2.41% |
|||
| Brokered deposits |
54,265 |
510 |
1.88% |
87,992 |
971 |
2.21% |
|||
| Saving & MMDA |
73,453 |
66 |
0.18% |
66,685 |
116 |
0.35% |
|||
| Now accounts |
147,336 |
604 |
0.82% |
140,370 |
847 |
1.21% |
|||
| FHLB borrowings |
62,537 |
1,138 |
3.64% |
73,564 |
1,321 |
3.59% |
|||
| Repurchase agreements |
41,915 |
485 |
2.31% |
39,852 |
430 |
2.16% |
|||
| Subordinated debentures |
10,310 |
368 |
7.14% |
10,310 |
365 |
7.08% |
|||
| Total interest bearing liabilities |
841,438 |
7,630 |
1.81% |
891,393 |
9,753 |
2.19% |
|||
| Non-interest bearing deposits |
82,153 |
67,313 |
|||||||
| Other liabilities |
5,212 |
5,196 |
|||||||
| Stockholders' equity |
119,550 |
112,364 |
|||||||
| Total liabilities |
|||||||||
| and stockholders' equity |
$1,048,353 |
$1,076,266 |
|||||||
| Net change in interest earning |
|||||||||
| assets and interest bearing liabilities |
14,067 |
2.71% |
14,377 |
2.85% |
|||||
| Net interest margin |
2.93% |
3.00% |
|||||||
| 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 June 30, 2012, and June 30, 2011, by $260,000 and $275,000, respectively; for a tax equivalent rate using a cost of funds rate of 1.80% for the three month period ended June 30, 2012, and 2.20% for the three month period ended June 30, 2011. The table adjusts tax‑free loan income by $3,000 for three month period ended June 30, 2012, and $9,000 for the three month period ended June 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 |
||||
| 6/30/2012 |
6/30/2012 |
6/30/2012 |
6/30/2011 |
6/30/2011 |
6/30/2011 |
||||
| (Table Amounts in Thousands, Except Percentages) |
|||||||||
| Loans |
$544,056 |
7,416 |
5.45% |
$578,815 |
8,449 |
5.84% |
|||
| Investments AFS taxable |
339,125 |
2,434 |
2.87% |
299,228 |
2,732 |
3.65% |
|||
| Investment AFS tax free |
68,035 |
807 |
4.74% |
68,580 |
865 |
5.05% |
|||
| Federal funds |
13,632 |
6 |
0.18% |
7,062 |
4 |
0.23% |
|||
| Total interest earning assets |
964,848 |
10,663 |
4.42% |
953,685 |
12,050 |
5.05% |
|||
| Other assets |
79,426 |
113,166 |
|||||||
| Total assets |
$1,044,274 |
$1,066,851 |
|||||||
| Retail time deposits |
445,784 |
2,186 |
1.96% |
474,583 |
2,808 |
2.37% |
|||
| Brokered deposits |
51,185 |
226 |
1.77% |
83,626 |
455 |
2.18% |
|||
| Savings & MMDA |
74,472 |
33 |
0.18% |
67,906 |
60 |
0.35% |
|||
| Now accounts |
150,813 |
310 |
0.82% |
135,890 |
410 |
1.21% |
|||
| FHLB borrowings |
62,105 |
565 |
3.64% |
70,595 |
627 |
3.55% |
|||
| Repurchase agreements |
39,788 |
237 |
2.38% |
39,082 |
225 |
2.30% |
|||
| Subordinated debentures |
10,310 |
181 |
7.02% |
10,310 |
180 |
6.98% |
|||
| Total interest bearing liabilities |
834,457 |
3,738 |
1.79% |
881,992 |
4,765 |
2.16% |
|||
| Non-interest bearing deposits |
83,803 |
67,906 |
|||||||
| Other liabilities |
4,158 |
5,549 |
|||||||
| Stockholders' equity |
121,856 |
111,404 |
|||||||
| Total liabilities |
|||||||||
| and stockholders' equity |
$1,044,274 |
$1,066,851 |
|||||||
| Net change in interest earning |
|||||||||
| assets and interest bearing liabilities |
6,925 |
2.63% |
7,285 |
2.89% |
|||||
| Net yield on interest earning assets |
2.87% |
3.06% |
|||||||
SOURCE HopFed Bancorp, Inc.
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