HopFed Bancorp, Inc. Reports Fourth Quarter Results

HOPKINSVILLE, Ky.--()--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, 2014. For the three month period ended December 31, 2014, the Company’s net loss was $1.0 million, or ($0.14) per share, basic and diluted, compared to net income of $1.1 million, or $0.14 per share basic and diluted, for the three month period ended December 31, 2013. For the twelve month period ended December 31, 2014, the Company’s net income was $2.2 million, or $0.30 per share, basic and diluted, compared to net income of $3.8 million, or $0.50 per share basic and diluted, for the twelve month period ended December 31, 2013.

Commenting on the fourth quarter results, John E. Peck, President and Chief Executive Officer, said, “The Company’s decision to prepay $35.9 million in Federal Home Loan Bank (“FHLB”) advances resulted in a $2.5 million prepayment penalty. The penalty reduced the Company’s net income for the three and twelve month period ending December 31, 2014, by $1.7 million, or $0.23 per share basic and diluted. By prepaying the FHLB advances, the Company will reduce its interest expense by $1.5 million in 2015 and $1.4 million in 2016. To fund the prepayment of FHLB borrowings, the Company utilized cash on hand as well as borrowing $15.0 million for one month and $15.0 million for six months. In January 2015, the Company has sold investments that will provide the liquidity necessary to pay off the $15.0 million maturity due in late January 2015.”

Mr. Peck continued, “In the fourth quarter of 2014, the Company completed a sale of a $6.9 million commercial real estate loan. The relationship was classified as substandard and as a Troubled Debt Restructuring, having spent approximately twelve months in bankruptcy. The loan was sold at a loss of $1,781,000. The Company previously had a specific reserve of $1.5 million against this relationship and reduced the allowance for loan loss account by that amount after the sale of the note. After the loan sale, the Company’s allowance for loan loss remains adequately funded.”

“The Company experienced loan growth of $6.7 million during the fourth quarter of 2014. The Company’s loan pipeline is active and we are beginning to see activity grow in our Nashville, Tennessee, loan production office. In 2015, the Company is confident that we will benefit from the reduction in interest expense and continued loan growth,” Mr. Peck concluded.

Financial Highlights

  • At December 31, 2014, the Company’s tangible book value was $13.72 per share and tangible common equity ratio was 10.52%. The Bank’s estimated Tier 1 Leverage Ratio and Total Risk Based Capital Ratio at December 31, 2014, were 10.98% and 18.64%, respectively. The Company’s consolidated Tier 1 Leverage Ratio and Total Risk Based Capital Ratio at December 31, 2014, were 11.10% and 19.05%, respectively.
  • The Company purchased 39,773 shares of its common stock in the quarter at a weighted average price of $11.89 per share. For the twelve month period ended December 31, 2014, the Company purchased 298,999 shares of its common stock at a weighted average price of $11.71 per share. At December 31, 2014, the Company holds a total of 778,383 shares of treasury stock at a weighted average cost of $12.12 per share.
  • On January 12, 2015, the Company was notified by Wilmington Trust that its investment in First Federal Statutory Trust III, (“FFKY Trust”), has elected to terminate the extension period of interest payments effective January 1, 2015. All accrued interest due and payable to all owners of securities through March 15, 2015, has been paid to the trustee. The Trustee will hold the funds until the next interest payment date of March 15, 2015. At that time, the Company will receive a total of $870,837.98 of interest and compounded interest and will continue to receive regularly scheduled interest of approximately $40,000 each quarter thereafter. On January 21, 2015, the Company has determined that FFKY Trust is no longer impaired and has placed the investment back into accrual status.

Asset Quality

At December 31, 2014, the Company’s level of non-accrual loans totaled $3.2 million, as compared to $10.1 million at December 31, 2013. A summary of non-accrual loans at December 31, 2014, and December 31, 2013, is as follows:

                   
December 31, 2014 December 31, 2013

(Dollars in Thousands)

 
One-to-four family mortgages $1,501 $945
Home equity line of credit --- 1
Junior lien --- 2
Multi-family 95 ---
Construction --- 175
Land 215 1,218
Non-residential real estate 1,160 6,546
Farmland --- 703
Consumer loans --- 13
Commercial loans 204 463
Total non-accrual loans $ 3,175 $10,066
 

Asset Quality (continued)

At December 31, 2013, non-accrual loans plus other real estate and other assets owned totaled $11.7 million, or 1.21% of total assets. At December 31, 2014, non-accrual loans plus other real estate and other assets owned totaled $5.1 million, or 0.55% of total assets. A summary of the activity in other real estate owned for the twelve month period ended December 31, 2014, is as follows:

   

Activity During 2014

                Gain    
Balance Reduction (Loss) Balance
12/31/2013     Foreclosures     Sales     in Values     on Sale     12/31/2014
(Dollars in Thousands)
One-to-four family mortgages $ 350 461 (667 ) (5 ) 20 $ 159
Land 1,124 943 (123 ) (157 ) (19 ) 1,768
Non-residential real estate   200 175 (328 ) ---   (47 )   ---
 
Total $ 1,674 1,579 (1,118 ) (162 ) (46 ) $ 1,927
 

The Company had no loans classified as performing Troubled Debt Restructurings (“TDRs”) at December 31, 2013. During the twelve month period ending December 31, 2014, the Company classified the following currently performing loans as TDR:

                       
Removed
Net Proceeds from
Balance at New Loss on from sale (Taken to) Balance at
12/31/13 TDR Sale of Loan of Loan Non-accrual 12/31/14
(Dollars in Thousands)
 
Non-residential real estate $ --- 10,271 (1,781) (5,206) --- $3,284
 
Total performing TDR $ --- 10,271 (1,781) (5,206) --- $3,284
 

Asset Quality (continued)

At December 31, 2014, the Company’s level of loans classified as substandard was $37.4 million as compared to $42.6 million at December 31, 2013. At December 31, 2014, the Company’s classified loan to risk-based capital ratio was 33.6%. The Company’s specific reserve for impaired loans was $1.5 million at December 31, 2014, and $1.9 million at December 31, 2013. A summary of the level of classified loans at December 31, 2014, is as follows:

                           

 

Specific Allowance
Allowance for

December 31, 2014

Special Impaired Loans for Performing
Pass Mention Substandard Doubtful Total Impairment Loans
(Dollars in Thousands)
One-to-four family mortgages $ 147,573 203 4,219 --- 151,995 51 1,147
Home equity line of credit 33,481 --- 757 --- 34,238 --- 181
Junior liens 2,025 40 37 --- 2,102 --- 14
Multi-family 20,066 2,904 3,021 --- 25,991 --- 85
Construction 24,241 --- --- --- 24,241 --- 146
Land 15,328 362 10,964 --- 26,654 663 460
Non-residential real estate 131,854 5,492 13,250 --- 150,596 738 1,345
Farmland 40,121 516 2,237 --- 42,874 --- 461
Consumer loans 14,118 21 299 --- 14,438 62 432
Commercial loans   71,246 325 2,583 --- 74,154 --- 504
 
Total $ 500,053 9,863 37,367 --- 547,283 1,514 4,775
 

Net Interest Income

For the three month period ended December 31, 2014, the Company’s net interest income was $6.3 million, compared to $6.8 million for the three month period ended September 30, 2014, and $6.4 million for the three month period ended December 31, 2013. For the three month period ended September 30, 2014, the Company’s net interest income received the benefit of a significant reduction in non-accrual loan balances, which added approximately $300,000 in additional interest income on loans. For the three month period ended December 31, 2014, the Company’s net interest margin was 3.06%, as compared to 3.10% for the three month period ended December 31, 2013, and 3.22% for the three month period ended September 30, 2014.

For the twelve month period ended December 31, 2014, the Company’s net interest income was $25.8 million, as compared to $25.3 million for the twelve month period ended December 31, 2013. For the twelve month period ended December 31, 2014, the Company’s interest expense on deposits was $5.6 million as compared to $7.1 million for the twelve month period ended December 31, 2013. For the twelve month period ended December 31, 2014, the Company’s net interest margin was 3.08%, as compared to 3.01% for the twelve month period ended December 31, 2013.

Non-interest Income

Non-interest income for the three month period ended December 31, 2014, was $1.9 million, as compared to $2.3 million for the three month period ended December 31, 2013, and $2.4 million for the three month period ended September 30, 2014. The decline in non-interest income for the three month period ended December 31, 2014, as compared to the three month period ended September 30, 2014, was primarily the result of a $264,000 decline in gains on the sale of securities, a $120,000 decline in income from financial services commission and a $104,000 decline in mortgage origination income.

The decline in non-interest income for the three month period ended December 31, 2014, as compared to the three month period ended December 31, 2013, was primarily the result of a $412,000 gain on the sale of insurance assets sold during the fourth quarter of 2014. During the three month period ended December 31, 2014, service charge income and merchant card income declined by a combined $63,000 as compared to the same period in 2013. During the three month period ended December 31, 2014, mortgage origination revenue increased to $212,000 as compared to $75,000 for the three month period ended December 31, 2013.

For the twelve month period ended December 30, 2014, non-interest income was $7.8 million, a decline of $1.5 million as compared to the twelve month period ended December 31, 2013. For the twelve month period ended December 31, 2014, the Company earned $578,000 from gains on the sale of securities as compared to $1.7 million for the twelve month period ended December 31, 2013. As compared to the twelve month period ended December 31, 2013, significant changes in non-interest income production as compared the twelve month period ended December 31, 2014, includes financial services commission ($270,000) and the Company’s 2013 $412,000 gain on sale of insurance assets.

Non-interest Expense

On a linked quarter basis, the Company’s non-interest expenses increased by approximately $4.0 million, largely the result of the $1.8 million loss on the sale of a commercial real estate loan and the $2.5 million FHLB prepayment penalty. On a linked quarter basis, only real estate owned expense, an increase of $102,000 on a linked quarter basis, increased by more than $100,000. For the three month period ended December 31, 2014, non-interest expenses increased by $4.3 million as compared to the three month period ended December 31, 2014, largely the result of the loss on the loan and FHLB prepayment penalty. Other significant expense line items that increased for the three month period ended December 31, 2014, as compared to three month period ended December 31, 2013, included salaries and benefits of $418,000 and state bank taxes of $197,000. During the same periods, the Company saw significant declines in occupancy expense of $151,000, real estate owned expense of $143,000, and losses on other real estate owned of $99,000.

Non-interest Expense (continued)

For the twelve month period ended December 31, 2014, non-interest expenses were $33.9 million, an increase of $5.3 million as compared to the twelve month period ended December 31, 2013. For the twelve month period ended, December 31, 2014, the Company experienced the following significant increases in operating expenses as compared to the twelve month period ended December 31, 2013:

               
  • Salary and benefits

$

489,000

3.3

%

  • State bank taxes

$

755,000

129.9

%

  • Data processing expense

$

192,000

7.1

%

  • Other operating expenses

$

2,662,000

162.3

%

  • Advertising expense

$

105,000

8.5

%

  • Office supplies

$

132,000

26.7

%

 

During the twelve month period ended December 31, 2014, the Company saw significant reductions in the following operating expenses as compared to the twelve month period ended December 31, 2013:

               
  • Occupancy expenses

($258,000

)

7.4

%

  • Professional services

($442,000

)

24.9

%

  • Real estate owned expenses

($136,000

)

33.8

%

 

Balance Sheet

At December 31, 2014, consolidated assets were $935.8 million, a decline of $37.8 million as compared to December 31, 2013. For the twelve month period ended December 31, 2014, the Company experienced a $50.1 million decrease in time deposits, a $9.8 million increase in non-interest bearing deposits, a $12.8 million decrease in FHLB borrowings, a $15.4 million decrease in cash and cash equivalents and a $4.3 million decrease in net loan balances compared to December 31, 2013. At December 31, 2014, non-interest bearing deposits are 15.7% of total deposits while time deposits account for 45.4% of total deposits.

The Company’s ability to further reduce its interest expense on deposits is limited during the first eleven months of 2015. Beginning in December 2015 and ending in February of 2016, the Company has $91.4 million in time deposits maturing with a weighted average cost of 1.99%. The Company anticipates maintaining the majority of these deposit accounts at the market rates prevalent at the time of their maturity.

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. The Company has two additional operating divisions including Heritage Wealth Management of Murray, Kentucky, Hopkinsville, Kentucky, and Clarksville, 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

December 31, 2014 December 31, 2013
(unaudited)
 
Cash and due from banks $ 34,389 37,229
Interest-earning deposits   6,050 18,619
Cash and cash equivalents 40,439 55,848
Federal Home Loan Bank stock, at cost 4,428 4,428
Securities available for sale 303,628 318,910
Loans held for sale 1,444 ---

Loans receivable, net of allowance for loan losses of $6,289 at December 31, 2014, and $8,682 at December 31, 2013

539,264 543,632
Accrued interest receivable 4,576 5,233
Real estate and other assets owned 1,927 1,674
Bank owned life insurance 9,984 9,677
Premises and equipment, net 22,940 23,108
Deferred tax assets 2,132 4,610
Intangible asset 33 130
Other assets   4,990 6,399
Total assets $ 935,785 973,649
 
 

Liabilities and Stockholders' Equity

Liabilities:
Deposits:
Non-interest-bearing accounts $ 115,051 105,252
Interest-bearing accounts:
Interest-bearing checking accounts 186,616 183,643
Savings and money market accounts 97,726 92,106
Other time deposits   331,915 381,996
Total deposits 731,308 762,997
Advances from Federal Home Loan Bank 34,000 46,780
Repurchase agreements 57,358 52,759
Subordinated debentures 10,310 10,310
Advances from borrowers for taxes and insurance 513 521
Dividends payable 301 326
Accrued expenses and other liabilities   3,593 4,239
Total liabilities   837,383 877,932
 

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, 2014 December 31, 2013
(unaudited)
 

Stockholders' equity:

Preferred stock, par value $0.01 per share; authorized - 500,000 shares; no shares issued and outstanding at December 31, 2014, and December 31, 2013

--- ---

Common stock, par value $.01 per share; authorized 15,000,000 shares; 7,949,665 issued and 7,171,282 outstanding at December 31, 2014, and 7,927,287 issued and 7,447,903 outstanding at December 31, 2013

79 79
Additional paid-in-capital 58,466 58,302
Retained earnings 45,729 44,694

Treasury stock- common (at cost, 778,383 shares at December 31, 2014, and 479,384 shares at December 31, 2013)

(9,429 ) (5,929 )
Accumulated other comprehensive income (loss), net of taxes   3,557   (1,429 )
 
Total stockholders' equity   98,402   95,717  
 
Total liabilities and stockholders' equity $ 935,785   973,649  
 

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,
       
  2014   2013 2014   2013  
Interest income:
Loans receivable $ 6,282 6,578 26,025 26,741
Securities available for sale - taxable 1,513 1,636 6,548 6,873
Securities available for sale - nontaxable 492 543 2,081 2,219
Interest-earning deposits   7   6 26   24  
Total interest income   8,294   8,763 34,680   35,857  
 
Interest expense:
Deposits 1,290 1,510 5,603 7,114
Advances from Federal Home Loan Bank 373 445 1,665 1,780
Repurchase agreements 152 237 874 954
Subordinated debentures   186   185 737   733  
Total interest expense   2,001   2,377 8,879   10,581  
 
Net interest income 6,293 6,386 25,801 25,276
Provision for loan losses   (1,500 ) 396 (2,273 ) 1,604  
 

 

Net interest income after provision for loan losses

  7,793   5,990 28,074   23,672  
 
Non-interest income:

Other-than-temporary impairment loss on debt securities

--- --- --- (511 )

Portion of losses recognized in other comprehensive income

  ---   --- ---   111  

Net impairment losses recognized in earnings

--- --- --- (400 )
Service charges 849 931 3,354 3,670
Merchant card income 275 256 1,075 983
Mortgage origination revenue 212 75 719 634
Gain on sale of securities 30 44 578 1,661
Income from bank owned life insurance 81 103 307 353
Gain (loss) on sale of assets --- 412 --- 412
Financial services commission 243 292 980 1,250
Other operating income   214   179 827   809  
Total non-interest income   1,904   2,292 7,840   9,372  
 

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,
       
  2014     2013     2014     2013
Non-interest expenses:
Salaries and benefits $ 3,854   3,436   15,222   14,733
Occupancy 719 870 3,217 3,475
Data processing 693 747 2,887 2,695
State bank tax 346 149 1,336 581
Intangible amortization 16 32 97 162
Professional services 306 338 1,331 1,773
Deposit insurance and examination 162 179 724 727
Advertising 318 303 1,341 1,236
Postage and communications 154 140 577 567
Supplies 168 107 627 495
Loss on disposal of equipment --- 12 --- 12
Loss on real estate owned 48 147 208 140
Real estate owned expense 73 216 266 402
Loss on sale of loan 1,781 --- 1,781 ---
Other operating expenses   2,944     580     4,302     1,640
Total non-interest expense   11,582     7,256     33,916     28,638
 
Income (loss) before income tax (1,885 ) 1,026 1,998 4,406
Income tax expense (benefit)   (852 )   (50 )   (201 )   644
 
Net income (loss)   (1,033 )   1,076     2,199     3,762

Net income (loss) per share:

Basic

  ($0.14 ) $0.14   $0.30   $0.50
Diluted   ($0.14 ) $0.14   $0.30   $0.50
Dividend per share $0.04   $0.04   $0.16   $0.12
 
Weighted average shares outstanding - basic   7,165,957     7,430,970     7,306,078     7,483,606
Weighted average shares outstanding - diluted   7,165,957     7,430,970     7,306,078     7,483,606
 

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
 
  12/31/2014   9/30/2014  
 
Interest income:
Loans receivable $ 6,282 6,913 (631 )
Securities available for sale - taxable 1,513 1,562 (49 )
Securities available for sale - nontaxable 492 514 (22 )
Interest-earning deposits   7   5   2  
Total interest income   8,294   8,994   (700 )
 
Interest expense:
Deposits 1,290 1,354 (64 )
Advances from Federal Home Loan Bank 373 430 (57 )
Repurchase agreements 152 228 (76 )
Subordinated debentures   186   174   12  
Total interest expense   2,001   2,186   (185 )
 
Net interest income 6,293 6,808 (515 )
Provision for loan losses   (1,500 ) (892 ) (608 )
 

Net interest income after provision for loan losses

  7,793   7,700   93  
 
Non-interest income:
Service charges 849 879 (30 )
Merchant card income 275 265 10

Mortgage origination revenue

212 316 (104 )
Gain on sale of securities 30 294 (264 )
Income from bank owned life insurance 81 65 16
Financial services commission 243 363 (120 )
Other operating income   214   211   3  
Total non-interest income   1,904   2,393   (489 )
 

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
  12/31/2014     9/30/2014  
 
Non-interest expenses:
Salaries and benefits $ 3,854 3,881 (27 )
Occupancy 719 781 (62 )
Data processing 693 730 (37 )
Bank franchise tax 346 346 ---
Intangible amortization 16 16 ---
Professional services 306 397 (91 )
Deposit insurance and examination 162 182 (20 )
Advertising 318 368 (50 )
Postage and communications 154 140 14
Supplies 168 156 12
Loss on real estate owned 48 35 13
Real estate owned expense (refund) 73 (29 ) 102
Loss on sale of loan 1,781 --- 1,781
Other operating expenses   2,944     560   2,384  
 
Total non-interest expense   11,582     7,563   4,019  
 
Income before income tax expense (1,885 ) 2,530 (4,415 )
Income tax expense   (852 )   577   (1,429 )
 
Net income   ($1,033 ) $ 1,953   ($2,986 )
Net income per share:
 
Basic   ($0.14 ) $0.27   ($0.41 )
Diluted   ($0.14 ) $0.27   ($0.41 )
Dividend per share $0.04   $0.04  
 
Weighted average shares outstanding - basic   7,165,957     7,265,597  
Weighted average shares outstanding - diluted   7,165,957     7,265,597  
 

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, 2014, and December 31, 2013, by $1,016 and $1,073 respectively, for a tax equivalent rate using a cost of funds rate of 1.20% for the twelve month period ended December 31, 2014, and 1.40% for the twelve month period ended December 31, 2013. The table adjusts tax-free loan income by $13 and $9, respectively, for twelve month periods ended December 31, 2014, and December 31, 2013, 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
12/31/2014 12/31/2014 12/31/2014 12/31/2013 12/31/2013 12/31/2013
 
Loans $ 534,404 $ 26,038 4.87 % $ 528,074 $ 26,750 5.07 %
Investments AFS taxable 262,154 6,548 2.50 % 269,304 6,873 2.55 %
Investments AFS tax free 64,393 3,097 4.81 % 70,178 3,292 4.69 %
Federal funds   10,461   26   0.25 %   9,060   24   0.26 %
 
Total interest earning assets 871,412   35,709   4.10 % 876,616   36,939   4.21 %
 
Other assets   77,716   80,609
 
Total assets $ 949,128 $ 957,225
 
 
 
Retail time deposits $ 314,703 3,660 1.16 % $ 362,651 5,046 1.39 %
Brokered deposits 41,366 495 1.20 % 44,349 673 1.52 %
Now accounts 189,433 1,253 0.66 % 164,669 1,243 0.75 %
MMDA and savings accounts 95,174 195 0.20 % 86,226 152 0.18 %
FHLB borrowings 42,441 1,665 3.92 % 44,898 1,780 3.96 %
Repurchase agreements 45,823 874 1.91 % 41,615 954 2.29 %
Subordinated debentures   10,310   737   7.15 %   10,310   733   7.11 %
 
Total interest bearing liabilities 739,250   8,879   1.20 % 754,718   10,581   1.40 %
 
Non-interest bearing deposits 104,911 92,428

Other non-interest bearing liabilities

4,855 5,334
 
Stockholders' equity   100,112   104,745
 

Total liabilities and stockholders' equity

$ 949,128 $ 957,225

 

Net change in interest earning assets and interest bearing liabilities

$ 26,830   $ 26,358  
Interest rate spread 2.90 % 2.81 %
Net interest margin   3.08 %   3.01 %
 

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

 

HOPFED BANCORP, INC.
Selected Financial Data

The table below adjusts tax-free investment income for the three month periods ended December 31, 2014, and December 31, 2013, by $230 and $264, respectively, for a tax equivalent rate using a cost of funds rate of 1.12% for the three month period ended December 31, 2014, and 1.28% for the three month period ended December 31, 2013. The table adjusts tax-free loan income by $4 for three month period ended December 31, 2014, and $2 for the three month period ended December 31, 2013, 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
12/31/2014 12/31/2014 12/31/2014 12/31/2013 12/31/2013 12/31/2013
 
Loans $ 530,313 $ 6,286 4.74 % $ 531,102 $ 6,580 4.96 %
Investments AFS taxable 251,178 1,513 2.41 % 249,629 1,636 2.62 %
Investments AFS tax free 61,706 722 4.68 % 66,942 807 4.82 %
Federal funds   9,477   7   0.30 %   9,682   6   0.25 %
 
Total interest earning assets 852,674   8,528   4.00 % 857,355   9,029   4.21 %
 
Other assets   78,608   86,175
 
Total assets $ 931,282 $ 943,530
 
 
Retail time deposits $ 298,960 874 1.17 % $ 338,123 1,028 1.22 %
Brokered deposits 37,690 94 1.00 % 45,379 148 1.30 %
Now accounts 186,772 272 0.58 % 168,425 291 0.69 %
MMDA and savings accounts 97,106 50 0.21 % 90,382 43 0.19 %
FHLB borrowings 40,871 373 3.65 % 48,743 445 3.65 %
Repurchase agreements 43,026 152 1.41 % 41,788 237 2.27 %
Subordinated debentures   10,310   186   7.22 %   10,310   185   7.18 %
 
Total interest bearing liabilities 714,735   2,001   1.12 % 743,150   2,377   1.28 %
 
Non-interest bearing deposits 110,249 97,602

Other non-interest bearing liabilities

6,950 5,491
 
Stockholders' equity   99,348   97,287
 

 

Total liabilities and stockholders' equity

$ 931,282 $ 943,530
 

Net change in interest earning assets and interest bearing liabilities

$ 6,527   $ 6,652  
Interest rate spread 2.88 % 2.93 %
Net interest margin   3.06 %   3.10 %
 

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

 

Contacts

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

Contacts

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