HOPKINSVILLE, Ky., July 28 /PRNewswire-FirstCall/ -- HopFed Bancorp, Inc. (Nasdaq: HFBC) (the "Company") today reported results for the three and six month periods ended June 30, 2009. For the three month period ended June 30, 2009, net income available for common shareholders was $854,000, or $0.24 per share (basic and diluted), compared to $1,261,000, or $0.35 per share (basic and diluted) for the three month period ended June 30, 2008, and $1,012,000, or $0.28 per share (basic and diluted) for the three month period ended March 31, 2009. For the six month period ended June 30, 2009, net income available for common shareholders was $1,866,000, or $0.52 per share (basic and diluted), compared to $2,753,000, or $0.77 per share (basic and diluted), for the six month period ended June 30, 2008.
For the three and six month periods ended June 30, 2009, the Company's results of operations includes preferred dividend and warrant accretion of $257,000 and $511,000, respectively related to the Company's $18.4 million issuance of preferred stock to the United States Treasury on December 12, 2008.
Commenting on the first half and second quarter results, John E. Peck, president and chief executive officer, said, "The Company continues to experience a modest level of net interest margin expansion. For the three month periods ended June 30, 2009 and March 31, 2009, the Company's net interest margin was 2.93% and 2.87%, respectively. The Company's net interest income for the three months ended June 30, 2009 was $6,562,000, as compared to $6,395,000 for the three month period ended March 31, 2009 and $5,876,000 for the three month period ended June 30, 2008."
Mr. Peck continued, "During the second quarter of 2009, the Company's profitability was hampered due to higher operating expenses largely due to an increase in regulatory fees. The Company incurred approximately $722,000 in expenses related to deposit insurance and examination fees, as compared to $163,000 in the first quarter of 2009 and $113,000 in the second quarter of 2008. The increase in these fees includes an FDIC special assessment of approximately $460,000 but also reflects quarterly fees charged by the FDIC to fund its operations.
For the three and six month periods ended June 30, 2009, the Company's provision for loan loss expense was $962,000 and $1.9 million, respectively, compared to $476,000 and $877,000, respectively for the same periods in 2008. The increase in the Company's provision for loan loss expense was driven by an increase in loans internally classified as impaired, from $13.0 million at December 31, 2008 to $24.9 million at June 30, 2009. The allowance for loan loss to total loans ratio is now 1.15% as compared to 0.85% at June 30, 2008 and 0.97% at December 31, 2008. The Company's credit quality ratios remain stable with both the Company's non-performing asset ratio and net charge off ratio are largely unchanged at June 30, 2009 as compared to December 31, 2008."
Mr. Peck commented on the Company's future prospects, "For the remainder of 2009, management anticipates that operating expenses will moderate as higher regulatory fees will offset reductions in the Company's core deposit intangible expense. The Company may have the opportunity to lower its cost of funds late in the third quarter, making it possible for an improved net interest margin in the fourth quarter. In light of the continued struggles in both the national and local economies, management anticipates that it will continue to focus on strengthening the balance sheet through continued aggressively funding the allowance for loan loss account. The Company will not recognize a goodwill impairment charge in the second quarter. However, the Company has chosen to accelerate its annual independent goodwill impairment study so that it may be completed by the end of the third quarter of 2009."
"At June 30, 2009, total assets increased to $1.0 billion, compared with $967.6 million at December 31, 2008, deposits increased to $743.5 million, compared with $713.0 million at December 31, 2008, while gross loans increased to $644.5 million, compared with $634.5 million at December 31, 2008. Federal Home Loan Bank borrowings decreased to $129.1 million at June 30, 2009, compared to $130.0 million at December 31, 2008. "
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 as well as Fall & Fall Insurance of Fulton, Kentucky, Heritage Solutions of Murray, Kentucky, Hopkinsville, Kentucky. Kingston Springs, Tennessee and Pleasant View, Tennessee, and Heritage Mortgage Services of Clarksville, Tennessee. 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.
Information contained in this press release, other than historical information, may be considered forwardlooking 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.
Selected Financial Data
(Dollars in thousands, except share and per share data)
Selected Financial Indicators as of:
------------------------------------
June 30, 2009 December 31, 2008
------------- -----------------
Total assets $1,001,794 $967,560
Loans receivable, gross 644,538 634,489
Securities available for sale 290,092 246,952
Securities held to maturity 413 454
Required investment in FHLB
stock, at cost 4,281 4,050
Allowance for loan loss 7,427 6,133
Total deposits 743,547 713,005
Total FHLB borrowings 129,141 130,012
Repurchase agreements 31,438 28,680
Stockholders' equity 79,809 78,284
Book value per share, gross $17.08 $16.67
Tangible book value per share $15.30 $14.77
Allowance for loan loss /
Gross loans 1.15% 0.97%
Non-performing assets / Total
asset 0.91% 0.86%
Non-performing loans / Total
loans 1.26% 1.16%
Annualized net charge off
ratio 0.20% 0.20%
Tier 1 Capital - Bank 7.80% 7.77%
Total Risk Based Capital -
Bank 12.89% 12.62%
Year to date tax equivalent
net yield on interest earning assets 2.91% 3.04%
HOPFED BANCORP, INC.
Selected Financial Data
(Dollars in thousands)
For the Three Months For the Six Months
Ended June 30, Ended June 30,
-------------- --------------
2009 2008 2009 2008
---- ---- ---- ----
Interest and dividend income:
Loans receivable 9,712 10,299 19,340 20,978
Investment in securities,
taxable 3,205 1,641 6,491 3,318
Nontaxable securities available
for sale 390 160 662 324
Interest-earning deposits --- 36 8 95
------ ------ ------ ------
Total interest and dividend
income 13,307 12,136 26,501 24,715
------ ------ ------ ------
Interest expense:
Deposits 5,334 4,902 10,800 10,364
Advances from Federal Home Loan
Bank 1,039 965 2,076 2,033
Repurchase agreements 196 271 390 600
Subordinated debentures 176 122 278 284
------ ------ ------ ------
Total interest expense 6,745 6,260 13,544 13,281
------ ------ ------ ------
Net interest income 6,562 5,876 12,957 11,434
Provision for loan losses 962 476 1,936 877
------ ------ ------ ------
Net interest income after
provision for loan losses 5,600 5,400 11,021 10,557
------ ------ ------ ------
Non-interest income:
Service charges 1,098 1,103 2,022 2,170
Merchant card income 157 152 297 284
Gain on sale of loans 51 41 120 105
Gain on sale of securities 809 168 1,467 702
Income from bank owned life
insurance 74 67 147 135
Financial services commission 250 279 476 519
Other operating income 302 287 571 586
------ ------ ------ ------
Total non-interest income 2,741 2,097 5,100 4,501
------ ------ ------ ------
HOPFED BANCORP, INC.
Selected Financial Data
(Dollars in thousands, except share and per share data)
For the Three Months For the Six Months
Ended June 30, Ended June 30,
-------------- --------------
2009 2008 2009 2008
---- ---- ---- ----
Non-interest expenses:
Salaries and benefits 3,172 2,891 6,218 5,792
Occupancy expense 750 699 1,498 1,386
Data processing expense 639 569 1,270 1,103
State deposit tax 155 128 311 256
Intangible amortization expense 203 220 407 439
Professional services expense 223 294 535 550
Advertising expense 320 315 643 597
Postage and communications
expense 164 159 323 314
Supplies expense 91 87 171 167
Deposit insurance and
examination expense 722 113 885 175
Other operating expenses 342 191 482 302
--------- --------- --------- ---------
Total non-interest expense 6,781 5,666 12,743 11,081
--------- --------- --------- ---------
Income before income tax expense 1,560 1,831 3,378 3,977
Income tax expense 449 570 1,001 1,224
--------- --------- --------- ---------
Net income $1,111 $1,261 $2,377 $2,753
--------- --------- --------- ---------
Less:
Dividend on preferred shares $229 --- $456 ---
Accretion dividend on
preferred shares $28 --- $55 ---
--------- --------- --------- ---------
Net income available to common
stockholders $854 $1,261 $1,866 $2,753
--------- --------- --------- ---------
Net income available to common
stockholders
Per share, basic $0.24 $0.35 $0.52 $0.77
========= ========= ========= =========
Per share, diluted $0.24 $0.35 $0.52 $0.77
========= ========= ========= =========
Dividend per share $0.12 $0.12 $0.24 $0.24
========= ========= ========= =========
Weighted average shares
outstanding - basic 3,568,814 3,558,893 3,568,257 3,567,727
========= ========= ========= =========
Weighted average shares
outstanding - diluted 3,568,814 3,573,652 3,568,257 3,582,297
========= ========= ========= =========
HOPFED BANCORP, INC.
Selected Financial Data
(Dollars in thousands)
For the Three
Months Ended
------------------ -------------
Change from
6/30/2009 3/31/2009 Prior Quarter
--------- --------- -------------
Interest and dividend income:
Loans receivable $9,712 $9,628 $84
Investment in securities, taxable 3,205 3,286 (81)
Nontaxable securities available
for sale 390 272 118
Interest-earning deposits --- 8 (8)
----- ----- -----
Total interest and dividend income 13,307 13,194 113
------ ------
Interest expense:
Deposits 5,334 5,466 (132)
Advances from Federal Home Loan Bank 1,039 1,037 2
Repurchase agreements 196 194 2
Subordinated debentures 176 102 74
----- -----
Total interest expense 6,745 6,799 (54)
----- ----- -----
Net interest income 6,562 6,395 167
Provision for loan losses 962 974 (12)
----- ----- -----
Net interest income after provision
for loan losses 5,600 5,421 179
----- ----- -----
Non-interest income:
Service charges 1,098 924 174
Merchant card income 157 140 17
Gain on sale of loans 51 69 (18)
Gain on sale of securities 809 658 151
Income from bank owned life insurance 74 73 1
Financial services commission 250 226 24
Other operating income 302 269 33
----- ----- -----
Total non-interest income 2,741 2,359 382
----- ----- -----
HOPFED BANCORP, INC.
Selected Financial Data
(Dollars in thousands, except share and per share data)
For the Three
Months Ended
------------------ -------------
Change from
6/30/2009 3/31/2009 Prior Quarter
--------- --------- -------------
Non-interest expenses:
Salaries and benefits 3,172 3,046 126
Occupancy expense 750 748 2
Data processing expense 639 631 8
State deposit tax 155 156 (1)
Intangible amortization expense 203 204 (1)
Professional services expense 223 312 (89)
Advertising expense 320 323 (3)
Postage and communications expense 164 159 5
Supplies expense 91 80 11
Deposit insurance and examination
expense 722 163 559
Other operating expenses 342 140 202
--------- --------- ---------
Total non-interest expense 6,781 5,962 819
--------- --------- ---------
Income before income tax expense 1,560 1,818 (258)
Income tax expense 449 552 (103)
--------- --------- ---------
Net income $1,111 $1,266 (155)
--------- --------- ---------
Less:
Dividends on preferred shares 229 227 2
Accretion dividend on preferred
shares 28 27 1
--------- --------- ---------
Net income available to common
stockholders $854 $1,012 (158)
--------- --------- ---------
Net income available to common
stockholders
Per share, basic $0.24 $0.28 (0.04)
========= ========= =========
Per share, diluted $0.24 $0.28 (0.04)
========= ========= =========
Dividends per share $0.12 $0.12 ---
========= ========= =========
Weighted average shares outstanding
- basic 3,568,814 3,576,791
========= =========
Weighted average shares outstanding
- diluted 3,568,814 3,576,791
========= =========
