Form 8-K HOPFED BANCORP INC For: Jul 31

 

 

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

 

 

FORM 8-K

 

 

CURRENT REPORT

Pursuant to Section 13 or 15(d)

of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): July 31, 2015

 

 

HOPFED BANCORP, INC.

(Exact name of Registrant as Specified in Charter)

 

 

 

Delaware		0-23667		61-1322555
(State or Other Jurisdiction of Incorporation)		(Commission File Number)		(I.R.S. Employer Identification No.)

4155 Lafayette Road, Hopkinsville, Kentucky 42240

(Address of Principal Executive Offices)

(270) 885-1171

Registrant’s telephone number, including area code

 

(Former name or former address, if changed since last report)

 

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

 

¨	Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

 

¨	Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

 

¨	Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

 

¨	Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

 

 

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Item 2.02

Results of Operations and Financial Condition

On July 31, 2015, the Registrant announced its results of operations for the three and six month periods ended June 30, 2015.

A copy of the press release, dated July 31, 2015, is attached hereto as Exhibit 99.1 and is incorporated herein by reference.

 

Item 9.01

Financial Statements and Exhibits.

 

(c)

Exhibits

 

99.1

Press release dated July 31, 2015 – furnished pursuant to Item 2.02 as part of this Current Report on Form 8-K and is not deemed “filed” for purposes of Section 18 of the Securities and Exchange Act of 1934 or otherwise subject to the liabilities of Section 18.

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, hereunto duly authorized.

 

				HOPFED BANCORP, INC.
Dated: July 31, 2015				By:		/s/ John E. Peck
						John E. Peck
						President and Chief Executive Officer

Exhibit 99.1

NEWS

 

 

		CONTACT:		John E. Peck
				President and CEO
				(270) 885-1171

HOPFED BANCORP, INC. REPORTS SECOND QUARTER RESULTS

HOPKINSVILLE, Ky. (July 31, 2015) – HopFed Bancorp, Inc. (NASDAQ: HFBC) (the “Company”), the holding company for Heritage Bank USA, Inc. (the “Bank”), today reported results for the three and six month periods ended June 30, 2015. For the three month period ended June 30, 2015, the Company reported a net loss of $117,000, or $0.02 per share, basic and diluted, compared to net income of $925,000, or $0.13 per share basic and diluted, for the three month period ended June 30, 2014. For the six month period ended June 30, 2015, the Company’s net income was $1.2 million, or $0.19 per share, basic and diluted, compared to net income of $1.3 million, or $0.17 per share basic and diluted, for the six month period ended June 30, 2014.

Commenting on the second quarter results, John E. Peck, President and Chief Executive Officer, said, “The Company’s operating results were negatively impacted by the results of an absolute auction of two properties owned by the bank as other real estate owned, resulting in a loss of $741,000. At June 30, 2015, the balance of the Company’s other real estate owned is $1.8 million,” Mr. Peck concluded.

Financial Highlights

 

•

At June 30, 2015, the Company’s tangible book value was $13.78 per share and tangible common equity ratio was 10.06%. The Company’s tangible book value and common equity ratio computations do not include 570,830 shares of common stock held by the Company’s ESOP that the Company has currently not committed to release.

 

•

The Company purchased 69,467 shares of its common stock in the three month period ended June 30, 2015, at a weighted average price of $12.83 per share. At June 30, 2015, the Company owns 973,191 shares of treasury stock at a weighted average cost of $12.49 per share.

 

•

At June 30, 2015, net loans totaled $554.8 million, a $15.5 million increase, as compared to December 31, 2014, and a $6.1 million increase as compared to March 31, 2015. The Company’s current annualized growth rate of loans is 5.7%.

 

•

The Company’s estimated Tier 1 Leverage Ratio and Total Risk Based Capital Ratio at June 30, 2015, were 10.65% and 17.26%, respectively. The Bank’s Tier 1 Leverage Ratio and Total Risk Based Capital Ratio at June 30, 2015, were 10.56% and 17.18%, respectively.

 

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HFBC Reports Second Quarter Results

Page 2

July 31, 2015

 

Asset Quality

At June 30, 2015, the Company’s level of non-accrual loans totaled $7.1 million, as compared to $3.2 million at December 31, 2014. A summary of non-accrual loans at June 30, 2015, and December 31, 2014, is as follows:

 

		June 30, 2015				December 31, 2014
		(Dollars in Thousands)
One-to-four family mortgages		$	1,456			$	1,501
Home equity line of credit			48				—
Multi-family			1,827				95
Land			1,982				215
Non-residential real estate			520				1,159
Farmland			209				115
Commercial loans			1,014				90
Total non-accrual loans		$	7,056			$	3,175

For the three month period ended June 30, 2015, the Company placed two significant loan relationships into non-accrual status. Both relationships were previously classified as substandard due to known credit weaknesses. The first relationship includes both a single family property and 100% of the Company’s multi-family non-accrual loans. The relationship was placed into non-accrual status after the borrowers filed for bankruptcy. The Company’s current appraisals indicate that the value of the collateral adequately secures the relationship. However, we are in the process of obtaining new appraisals.

The second relationship encompasses 100% of our non-accrual land development portfolio. At March 31, 2015, the Company had a $630,000 specific reserve for this relationship. During the three month period ended June 30, 2015, the Company placed this relationship in non-accrual status and charged off $716,000.

At June 30, 2015, non-accrual loans plus other real estate owned totaled $8.9 million, or 1.01% of total assets. At December 31, 2014, non-accrual loans plus other real estate owned totaled $5.1 million, or 0.55% of total assets.

A summary of the activity in other real estate owned for the six month period ended June 30, 2015, is as follows:

 

		Balance 12/31/2014				Foreclosures				Proceeds				Reduction in Values				Gain (Loss) on Sale				Balance 6/30/2015
		(Dollars in Thousands)
One-to-four family mortgages		$	159				105				(116	)			—				(33	)		$	115
Land			1,768				—				(124	)			—				(701	)			943
Non-residential real estate			—				737				—				—				—				737
Total		$	1,927				842				(240	)			—				(734	)		$	1,795

 

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HFBC Reports Second Quarter Results

Page 3

July 31, 2015

 

Asset Quality (continued)

 

A summary of the activity in loans classified as TDRs for the three and six month periods ended June 30, 2015, is as follows:

 

		Balance at 12/31/14				New TDR				Loss or Foreclosure				Transferred to Held For Sale				Removed from (Taken to) Non-accrual				Balance 06/30/15
		(Dollars in Thousands)
Non-residential real estate		$	3,284				—				—				—				—			$	3,284
Total performing TDR		$	3,284				—				—				—				—			$	3,284

At June 30, 2015, the Company’s level of loans classified as substandard was $28.7 million as compared to $37.4 million at December 31, 2014. At June 30, 2015, the Company’s classified loan to risk-based capital ratio was 28.4%. The Company’s specific reserve for impaired loans was $746,000 at June 30, 2015, and $1.5 million at December 31, 2014. A summary of the level of classified loans at June 30, 2015, is as follows:

 

		Pass				Special Mention																Specific Allowance for Impairment				Allowance for Performing Loans
June 30, 2015										Impaired Loans
										Substandard				Doubtful				Total
		(Dollars in Thousands)
One-to-four family mortgages		$	143,385				42				2,858				—				146,285				46				952
Home equity line of credit			33,182				—				621				—				33,803				—				196
Junior liens			1,992				38				16				—				2,046				—				10
Multi-family			17,958				1,655				2,967				—				22,580				—				73
Construction			27,072				—				—				—				27,072				—				166
Land			14,425				44				10,052				—				24,521				116				1,057
Non-residential real estate			149,727				640				9,672				—				160,039				445				1,195
Farmland			40,311				681				232				—				41,224				—				367
Consumer loans			15,803				14				194				—				16,011				48				299
Commercial loans			84,898				169				2,081				—				87,148				91				473
Total		$	528,753				3,283				28,693				—				560,729				746				4,788

 

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HFBC Reports Second Quarter Results

Page 4

July 31, 2015

 

Net Interest Income

For the three month period ended June 30, 2015, the Company’s net interest income was $6.3 million, compared to $7.6 million for the three month period ended March 31, 2015, and $6.4 million for the three month period ended June 30, 2014. For the three month period ended June 30, 2015, the Company’s net interest margin was 3.17%, as compared to 3.78% for the three month period ended March 31, 2015, and 3.02% for the three month period ended June 30, 2014.

The decline in linked quarter net interest income and net interest margin is largely the result of an $830,000 recovery of an investment security that was removed from non-accrual status during the three month period ended March 31, 2015. Additional, the Company’s non-accrual loan portfolio increased from $2.1 million at March 31, 2015, to $7.1 million at June 30, 2015. The increase in non-accrual loans resulted in an $85,000 reduction in interest income on loans.

For the six month period ended June 30, 2015, the Company’s net interest income was $13.9 million, as compared to $12.7 million for the six month period ended June 30, 2014. For the six month period ended June 30, 2015, the Company’s interest expense was $3.2 million as compared to $4.7 million for the six month period ended June 30, 2014. The Company’s reduced interest expense was largely the result of lower Federal Home Loan Bank borrowing balances and a reduced dependency on non-core funding. For the six month period ended June 30, 2015, the Company’s net interest margin was 3.48%, as compared to 3.01% for the six month period ended June 30, 2014.

Non-interest Income

Non-interest income for the three month periods ended June 30, 2015, March 31, 2015, and June 30, 2014, was $1.9 million, respectively. On a linked quarter basis, total non-interest income declined by $45,000 largely due to a $283,000 decline in gains on the sale of securities. During the three month period ended March 31, 2015, the Company utilized proceeds from the sale of securities to fund a reduction in the size of FHLB borrowing balances. The decline in linked quarter gains on the sale of securities was partially offset by a $166,000 increase in the level of mortgage origination revenue.

During the three and six month periods ended June 30, 2015, mortgage origination revenue was $343,000 and $520,000, respectively, as compared to $133,000 and $191,000 for the three and six month period ended June 30, 2014. The growth in revenue is the result of a renewed success in building relationships with real estate agents and an increase in the amount of resources committed to the business.

For the three month period ended June 30, 2015, total non-interest income was $77,000 lower as compared to the three month period ended June 30, 2014. For the three month period ended June 30, 2015, service charge income was $720,000, representing a $128,000 decline as compared to the three month period ended June 30, 2014. For the six month period ended June 30, 2015, service charge income was $1.4 million, a $192,000 declined as compared to the six month period ended June 30, 2014. The decline in service charge income is the result of changes in regulations as well as customer utilization of overdraft services.

For the six month period ended June 30, 2015, non-interest income was $3.8 million, as compared to $3.5 million for the six month period ended June 30, 2014. The increase in non-interest income for the six month period ended June 30, 2015, as compared to the same period in 2014 is largely the result of previously mentioned increases in mortgage origination revenue and gains on the sale of securities.

 

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HFBC Reports Second Quarter Results

Page 5

July 31, 2015

 

Non-interest Expense

On a linked quarter basis, the Company’s non-interest expenses increased by $764,000. The most significant increases in operating expenses was an $748,000 increase in losses on the sale of real estate owned and a $139,000 increase in professional services expense. For the three month period ended June 30, 2015, the Company’s salaries and benefits expenses declined by $180,000 as compared to the three month period ended March 31, 2015. The decline in linked quarter salary and benefits expense is largely due to seasonal factors.

For the three month period ended June 30, 2015, non-interest expenses increased by $787,000 as compared to the three month period ended June 30, 2014. For the three month period ended June 30, 2015, expense items increasing by more than 5% as compared to the three month period ended June 30, 2014, include:

 

		Three Month Period Ended								Dollar Change				Percentage Change
		06/30/15				06/30/14
Salaries and benefits		$	4,004			$	3,692			$	312				8.45	%
Professional services		$	468			$	341			$	127				37.24	%
Loss on sale of other real estate owned		$	741			$	102			$	639				626.47	%
Other expenses		$	498			$	423			$	75				17.73	%

For the six month period ended June 30, 2015, non-interest expenses were $15.7 million, an increase of $933,000 as compared to the six month period ended June 30, 2014. Generally, the same factors influenced increases in non-interest expenses for both the three and six month periods ended June 30, 2015, as compared to the three and six month periods ended June 30, 2014. For the six month period ended June 30, 2015, expense items increasing by more than 5% as compared to the six month period ended June 30, 2014, include:

 

		Six Month Period Ended								Dollar Change				Percentage Change
		06/30/15				06/30/14
Salaries and benefits		$	8,188			$	7,487			$	701				9.36	%
Professional services		$	797			$	628			$	169				26.91	%
Loss on sale of other real estate owned		$	734			$	125			$	609				487.20	%
Other expenses		$	930			$	798			$	132				16.54	%

For the three and six month periods ended June 30, 2015, the Company’s loss on the sale of other real estate owned accounted for $639,000 and $609,000 of the increase in total non-interest expenses, respectively. The increase in salaries and benefits expenses is the result of an increased level of staffing for the Company’s mortgage loan origination division and our loan production office in Nashville as well as increases in the cost of employer provided health insurance. The increase in professional services expense was largely the result of an increase in legal expenses.

 

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HFBC Reports Second Quarter Results

Page 6

July 31, 2015

 

Balance Sheet

At June 30, 2015, consolidated assets were $877.6 million, a decline of $58.2 million as compared to December 31, 2014. For the six month period ended June 30, 2015, the Company experienced a $11.5 million decrease in time deposits, a $25.0 million decrease in FHLB borrowings, a $20.7 million decrease in cash balances and a $15.5 million increase in net loan balances. To fund the growth in loan balances and reduction in FHLB borrowings and time deposits, the Company has reduced its balance in available for sale securities by $55.9 million, to $247.7 million at June 30, 2015, as compared to December 31, 2014.

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 and a loan production office in Nashville, Tennessee. The Company has two additional operating divisions including Heritage Wealth Management of Murray, Kentucky, Hopkinsville, Kentucky, 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 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.

 

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HFBC Reports Second Quarter Results

Page 7

July 31, 2015

 

HOPFED BANCORP, INC.

Consolidated Condensed Balance Sheets

(Dollars in thousands)

 

		June 30, 2015				December 31, 2014
		(unaudited)
Assets
Cash and due from banks		$	16,538				34,389
Interest-earning deposits			3,145				6,050
Cash and cash equivalents			19,683				40,439
Federal Home Loan Bank stock, at cost			4,428				4,428
Securities available for sale			247,673				303,628
Loans held for sale			2,470				1,444
Loans receivable, net of allowance for loan losses of $5,534 at June 30, 2015, and $6,289 at December 31, 2014			554,806				539,264
Accrued interest receivable			3,873				4,576
Real estate and other assets owned			1,795				1,927
Bank owned life insurance			10,128				9,984
Premises and equipment, net			24,171				22,940
Deferred tax assets			1,668				2,261
Intangible asset			—				33
Other assets			6,918				4,861
Total assets		$	877,613				935,785
Liabilities and Stockholders’ Equity
Liabilities:
Deposits:
Non-interest-bearing accounts		$	112,396				115,051
Interest-bearing accounts
Interest-bearing checking accounts			185,642				186,616
Savings and money market accounts			99,020				97,726
Other time deposits			320,461				331,915
Total deposits			717,519				731,308
Advances from Federal Home Loan Bank			9,000				34,000
Repurchase agreements			48,224				57,358
Subordinated debentures			10,310				10,310
Advances from borrowers for taxes and insurance			792				513
Dividends payable			296				301
Accrued expenses and other liabilities			3,216				3,593
Total liabilities			789,357				837,383

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

 

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HFBC Reports Second Quarter Results

Page 8

July 31, 2015

 

HOPFED BANCORP, INC.

Consolidated Condensed Balance Sheets, Continued

(Dollars in thousands)

 

		June 30, 2015				December 31, 2014
		(unaudited)
Stockholders’ equity:
Preferred stock, par value $0.01 per share; authorized - 500,000 shares; no shares issued and outstanding at June 30, 2015, and December 31, 2014			—				—
Common stock, par value $.01 per share; authorized 15,000,000 shares; 7,950,436 issued and 6,977,245 outstanding at June 30, 2015, and 7,949,665 issued and 7,171,282 outstanding at December 31, 2014			79				79
Additional paid-in-capital			58,552				58,466
Retained earnings			46,455				45,729
Treasury stock-common (at cost, 973,191 shares at June 30, 2015, and 778,383 shares at December 31, 2014)			(12,159	)			(9,429	)
Unallocated ESOP shares (at cost 570,830 shares at June 30, 2015, and no shares at December 31, 2014)			(7,525	)			—
Accumulated other comprehensive income (loss), net of taxes			2,854				3,557
Total stockholders’ equity			88,256				98,402
Total liabilities and stockholders’ equity		$	877,613				935,785

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

 

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HFBC Reports Second Quarter Results

Page 9

July 31, 2015

 

HOPFED BANCORP, INC.

Consolidated Condensed Statements of Income (Loss)

(Dollars in thousands)

Unaudited

 

		For the Three Month Periods Ended June 30,								For the Six Month Periods Ended June 30,
		2015				2014				2015				2014
Interest income:
Loans receivable		$	6,231				6,503				12,521				12,830
Securities available for sale - taxable			1,268				1,694				3,716				3,473
Securities available for sale - nontaxable			416				531				869				1,075
Interest-earning deposits			4				6				8				14
Total interest income			7,919				8,734				17,114				17,392
Interest expense:
Deposits			1,245				1,488				2,505				2,959
Advances from Federal Home Loan Bank			66				428				135				862
Repurchase agreements			118				245				238				494
Subordinated debentures			183				193				367				377
Total interest expense			1,612				2,354				3,245				4,692
Net interest income			6,307				6,380				13,869				12,700
Provision for loan losses			270				(261	)			485				119
Net interest income after provision for loan losses			6,037				6,641				13,384				12,581
Non-interest income:
Service charges			720				848				1,434				1,626
Merchant card income			286				276				556				535
Mortgage origination revenue			343				133				520				191
Gain on sale of securities			83				241				449				254
Income from bank owned life insurance			73				66				144				161
Financial services commission			194				168				353				374
Other operating income			169				213				325				402
Total non-interest income			1,868				1,945				3,781				3,543

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

 

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HFBC Reports Second Quarter Results

Page 10

July 31, 2015

 

HOPFED BANCORP, INC.

Consolidated Condensed Statements of Income (Loss), Continued

(Dollars in thousands, except share and per share data)

(Unaudited)

 

		For the Three Month Periods Ended June 30,								For the Six Month Periods Ended June 30,
		2015				2014				2015				2014
Non-interest expenses:
Salaries and benefits		$	4,004				3,692				8,188				7,487
Occupancy			752				808				1,490				1,717
Data processing			701				736				1,393				1,464
Bank franchise tax			251				398				499				644
Intangible amortization			16				33				32				65
Professional services			468				341				797				628
Deposit insurance and examination			151				183				268				380
Advertising expense			340				341				646				655
Postage and communications			134				140				266				283
Supplies expense			111				158				257				303
Loss on real estate owned			741				102				734				125
Real estate owned expense			67				92				204				222
Other operating expenses			498				423				930				798
Total non-interest expense			8,234				7,447				15,704				14,771
Income (loss) before income tax			(329	)			1,139				1,461				1,353
Income tax expense (benefit)			(212	)			214				223				74
Net income (loss)		($	117	)			925				1,238				1,279
Net income (loss) per share:
Basic		($	0.02	)		$	0.13			$	0.19			$	0.17
Diluted		($	0.02	)		$	0.13			$	0.19			$	0.17
Dividend per share		$	0.04			$	0.04			$	0.08			$	0.08
Weighted average shares outstanding - basic			6,425,687				7,376,726				6,588,845				7,396,627
Weighted average shares outstanding - diluted			6,425,687				7,376,726				6,588,845				7,396,627

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

 

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HFBC Reports Second Quarter Results

Page 11

July 31, 2015

 

HOPFED BANCORP, INC.

Selected Financial Data

(Dollars in thousands)

 

		For the Three Months Ended								Change from Prior Quarter
		6/30/2015				3/31/2015
Interest income:
Loans receivable		$	6,231				6,290				(59	)
Securities available for sale - taxable			1,268				2,448				(1,180	)
Securities available for sale - nontaxable			416				453				(37	)
Interest-earning deposits			4				4				0
Total interest income			7,919				9,195				(1,276	)
Interest expense:
Deposits			1,245				1,260				(15	)
Advances from Federal Home Loan Bank			66				69				(3	)
Repurchase agreements			118				120				(2	)
Subordinated debentures			183				184				(1	)
Total interest expense			1,612				1,633				(21	)
Net interest income			6,307				7,562				(1,255	)
Provision for loan losses			270				215				55
Net interest income after provision for loan losses			6,037				7,347				(1,310	)
Non-interest income:
Service charges			720				714				6
Merchant card income			286				270				16
Mortgage origination revenue			343				177				166
Gain on sale of securities			83				366				(283	)
Income from bank owned life insurance			73				71				2
Financial services commission			194				159				35
Other operating income			169				156				13
Total non-interest income			1,868				1,913				(45	)

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

 

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HFBC Reports Second Quarter Results

Page 12

July 31, 2015

 

HOPFED BANCORP, INC.

Selected Financial Data

(Dollars in thousands, except share and per share data)

 

		For the Three Months Ended								Change from Prior Quarter
		6/30/2015				3/31/2015
Non-interest expenses:
Salaries and benefits		$	4,004				4,184				(180	)
Occupancy			752				738				14
Data processing			701				692				9
Bank franchise tax			251				248				3
Intangible amortization			16				16				0
Professional services			468				329				139
Deposit insurance and examination			151				117				34
Advertising			340				306				34
Postage and communications			134				132				2
Supplies			111				146				(35	)
(Gain) loss on real estate owned			741				(7	)			748
Real estate owned			67				137				(70	)
Other operating			498				432				66
Total non-interest expense			8,234				7,470				764
Income (loss) before income tax expense			(329	)			1,790				(2,119	)
Income tax expense (benefit)			(212	)			435				(647	)
Net income (loss)		($	117	)		$	1,355			($	1,472	)
Net income (loss) per share:
Basic		($	0.02	)		$	0.20			($	0.22	)
Fully diluted		($	0.02	)		$	0.20			($	0.22	)
Dividend per share		$	0.04			$	0.04
Weighted average shares outstanding - basic			6,425,687				6,732,456
Weighted average shares outstanding - diluted			6,425,687				6,732,456

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

 

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HFBC Reports Second Quarter Results

Page 13

July 31, 2015

 

HOPFED BANCORP, INC.

Selected Financial Data

The table below adjusts tax-free investment income for the six month periods ended June 30, 2015, and June 30, 2014, by $429,000 and $524,000, respectively, for a tax equivalent rate using a cost of funds rate of 0.94% for the six month period ended June 30, 2015, and 1.25% for the six month period ended June 30, 2014. The table adjusts tax-free loan income by $7,000 and $6,000, respectively, for six month periods ended June 30, 2015, and June 30, 2014, respectively, for a tax equivalent rate using the same cost of funds rate:

 

		Average Balance 6/30/2015				Income and Expense 6/30/2015				Average Rates 6/30/2015				Average Balance 6/30/2014				Income and Expense 6/30/2014				Average Rates 6/30/2014
		(Table Amounts in Thousands, Except Percentages)
Loans		$	547,071				12,528				4.58	%		$	535,830				12,836				4.79	%
Investments AFS taxable			214,920				3,716				3.46	%		$	264,596				3,473				2.63	%
Investment AFS tax free			55,281				1,298				4.70	%		$	66,303				1,599				4.82	%
Federal funds			6,046				8				0.26	%		$	11,225				14				0.25	%
Total interest earning assets			823,318				17,550				4.26	%			877,954				17,922				4.08	%
Other assets			73,916												81,908
Total assets		$	897,234											$	959,862
Retail time deposits			290,499				1,676				1.15	%			326,464				1,890				1.16	%
Brokered deposits			34,006				190				1.12	%			44,061				291				1.32	%
MMDA & Savings			100,242				101				0.20	%			93,630				96				0.21	%
Interest bearing checking			192,921				538				0.56	%			189,518				682				0.72	%
FHLB borrowings			20,685				135				1.31	%			43,775				862				3.94	%
Repurchase agreements			41,999				238				1.13	%			47,670				494				2.07	%
Subordinated debentures			10,310				367				7.12	%			10,310				377				7.31	%
Total interest bearing liabilities			690,662				3,245				0.94	%			755,428				4,692				1.24	%
Non-interest bearing deposits			111,120												101,987
Other liabilities			3,413												4,525
Stockholders’ equity			92,039												97,922
Total liabilities and stockholders’ equity		$	897,234											$	959,862
Net interest income							14,305												13,230
Net interest spread											3.32	%											2.84	%
Net interest margin							3.48	%											3.01	%

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

 

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HFBC Reports Second Quarter Results

Page 14

July 31, 2015

 

HOPFED BANCORP, INC.

Selected Financial Data

The table below adjusts tax-free investment income for the three month periods ended June 30, 2015, and June 30, 2014, by $205,000 and $259,000, respectively, for a tax equivalent rate using a cost of funds rate of 0.94% for the three month period ended June 30, 2015, and 1.20% for the three month period ended June 30, 2014. The table adjusts tax-free loan income by $5,000 for three month period ended June 30, 2015, and $3,000 for the three month period ended June 30, 2014, respectively, for a tax equivalent rate using the same cost of funds rate:

 

		Average Balance 6/30/2015				Income and Expense 6/30/2015				Average Rates 6/30/2015				Average Balance 6/30/2014				Income and Expense 6/30/2014				Average Rates 6/30/2014
		(Table Amounts in Thousands, Except Percentages)
Loans		$	552,992				6,236				4.51	%		$	538,895				6,506				4.83	%
Investments AFS taxable			209,907				1,268				2.42	%			266,815				1,694				2.54	%
Investment AFS tax free			52,960				621				4.69	%			65,323				790				4.84	%
Federal funds			6,107				4				0.26	%			9,899				6				0.24	%
Total interest earning assets			821,966				8,129				3.96	%			880,932				8,996				4.08	%
Other assets			68,467												76,307
Total assets		$	890,433											$	957,239
Retail time deposits			288,618				831				1.15	%			320,957				927				1.16	%
Brokered deposits			32,669				94				1.15	%			42,024				146				1.39	%
MMDA & Savings			100,776				51				0.20	%			93,932				54				0.23	%
Interest bearing checking			194,224				269				0.55	%			194,863				361				0.74	%
FHLB borrowings			18,231				66				1.45	%			41,764				428				4.10	%
Repurchase agreements			41,478				118				1.14	%			45,997				245				2.13	%
Subordinated debentures			10,310				183				7.10	%			10,310				193				7.49	%
Total interest bearing liabilities			686,306				1,612				0.94	%			749,847				2,354				1.26	%
Non-interest bearing deposits			110,379												103,717
Other liabilities			3,353												4,522
Stockholders’ equity			90,395												99,153
Total liabilities and stockholders’ equity		$	890,433											$	957,239
Net interest income							6,517												6,642
Interest rate spread											3.02	%											2.82	%
Net interest margin							3.17	%											3.02	%

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

 

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