8-K

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): October 31, 2012

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))

Item 2.02 Results of Operations and Financial Condition

On October 31, 2012, the Registrant announced its results of operations for the three and nine month periods ended September 30, 2012.

A copy of the press release, dated October 31, 2012, 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 October 31, 2012 – 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.

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: November 1, 2012	By:	/s/ John E. Peck
		John E. Peck
		President and Chief Executive Officer

EX-99.1

Exhibit 99.1

NEWS

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

HOPFED BANCORP, INC. REPORTS THIRD QUARTER RESULTS

HOPKINSVILLE, Ky. (October 31, 2012) – HopFed Bancorp, Inc. (NASDAQ: HFBC) (the “Company”), the holding company for Heritage Bank (the “Bank”), today reported results for the three and nine month periods ended September 30, 2012. For the three month period ended September 30, 2012, the Company’s net income available to common shareholders was $819,000, or $0.11 per share, basic and diluted, compared to net income available to common shareholders of $1.4 million, or $0.18 per share basic and diluted, for the three month period ended September 30, 2011. For the nine month period ended September 30, 2012, the Company’s net income available to common shareholders was $2.2 million, or $0.29 per share, basic and diluted, compared to a net loss attributable to common shareholders of $180,000, or ($0.02) per share basic and diluted, for the nine month period ended September 30, 2011.

Commenting on the third quarter results, John E. Peck, President and Chief Executive Officer, said, “The Company has reduced the amount of Federal Home Loan Bank borrowings by approximately $20.0 million during the quarter. The reduction in FHLB borrowings, which include prepayment fees of approximately $480,000, reduces our balances outstanding related to wholesale funding. The prepayment penalties were offset by gains on the sales of securities, many of which were experiencing increasing high levels of cash flow and lower net yields due to national mortgage refinancing activity. We remain focused on reducing our cost of funds with approximately $96.8 million in time deposits maturing in the fourth quarter of 2012 with a weighted average cost of approximately 2.00%.”

Mr. Peck concluded, “The Company experienced an $11.8 million reduction in classified loans during the quarter due. In addition, we have contracts to sell $2.7 million in non-performing loans scheduled to close during the fourth quarter of 2012 at or near their current book value. The Company continues to market other non-performing assets in an attempt to further reduce our level of classified assets. The Company continues to find success working with borrowers in an effort to address credit quality issues.”

Financial Highlights

• The Company and Bank’s capital ratios continue to strengthen. At September 30, 2012, the Company’s tangible book value was $13.88 and our tangible common equity ratio is 10.65%. The Bank’s tier 1 leverage and total risk based capital ratios at September 30, 2012, are 10.91% and 19.7240700%, respectively. The Company’s tier 1 leverage and total risk based capital ratios are 12.33% and 22.34%, respectively.

• At September 30, 2012, the Company’s and Bank’s net classified asset to risk based capital ratios were 68.78% and 60.37%, respectively. At June 30, 2012, these ratios were 86.50% for the Bank and 76.1% for the Company.

• At September 30, 2012, the Company’s allowance for loan loss totaled $10.5 million, or 1.90% of total loans and 87.23% of non-accrual loans. In the nine month period ended September 30, 2012, the Company’s net charge offs totaled $2.5 million, or an annualized rate of 0.61% of average loans.

• For the three month period ended September 30, 2012, the Company’s net interest margin was 2.67%, as compared to 3.00% for the three month period ended September 30, 2011, and 2.87% for the three month period ended June 30, 2012. For the three month period ended September 30, 2012, the Company’s net interest margin was reduced 0.21% by our decision to liquidate FHLB borrowings and incur $480,000 in prepayment penalties.

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HFBC Reports Third Quarter Results

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October 31, 2012

Asset Quality

At September 30, 2012, the Company’s level of non-accrual loans totaled $12.6 million, as compared to $6.1 million at December 31, 2011. At September 30, 2012, non-accrual loans total 2.20% of total loans. The Company has contracted to sell certain non-accrual assets classified as substandard at their current book balance. The sale includes $2.0 million in commercial real estate and $760,000 of land development. We anticipate the sale closing in mid-November 2012. We continue to market one additional commercial real estate property, with a book value of $900,000, through a nationally recognized broker dealer. All three loans are purchased participation loans outside of our current market area.

A summary of non-accrual loans at September 30, 2012, and December 31, 2011, is as follows:

	9/30/2012			12/31/2011
	(Dollars in Thousands)
One-to-four family first mortgages		2,795			2,074
Home equity lines of credit		24			134
Junior liens		—			101
Multi-family		190			—
Construction		—			—
Land		4,039			1,330
Non-residential real estate		3,271			2,231
Farmland		49			—
Consumer loans		59			9
Commercial loans		2,160			254
Total non-accrual loans		12,587			6,133
Non-accrual loans to total loans		2.29	%		1.08	%

A summary of the level of classified loans at September 30, 2012, is as follows:

September 30, 2012			Special		Impaired Loans						Specific Reserve for		Reserve for Performing
	Pass		Mention		Substandard		Doubful		Total		Impairment		Loans
					(Dollars in Thousands)
One-to-four family mortgages		156,358		1,940		7,025		116		165,439		509		1,840
Home equity line of credit		35,509		1,202		1,251		—		37,962		14		320
Junior liens		4,728		73		581		—		5,382		104		54
Multi-family		19,297		6,192		6,754		—		32,243		356		357
Construction		11,606		—		4,088		—		15,694		294		113
Land		17,688		9,069		21,340		—		48,097		888		1,066
Non-residential real estate		142,396		3,809		28,366		—		174,571		1,228		2,445
Consumer loans		13,645		12		504		—		14,161		102		160
Commercial loans		49,866		837		8,523		—		59,226		86		554
Total		451,093		23,134		78,432		116		552,775		3,581		6,909

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HFBC Reports Third Quarter Results

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October 31, 2012

At September 30, 2012, non-accrual loans plus other real estate owned totaled $13.3 million, or 1.33% 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 $681,000 at September 30, 2012.

A summary of the activity in other real estate owned for the nine month period ended September 30, 2012, is as follows:

			Activity During 2012
	Balance 12/31/2011		Foreclosures		Sales			Reduction in Values			Gain (Loss) on Sales			Balance 9/30/2012
			(Dollars in Thousands)
One-to-four family mortgages		480		658		(855	)		(107	)		(29	)		147
Multi-family		905		—		(875	)		—			(30	)		—
Construction		465		—		(235	)		—			(14	)		216
Land		248		383		(269	)		(68	)		(19	)		275
Non-residential real estate		160		63		(160	)		(20	)		—			43
Consumer assets		9		—		(9	)		—			—			—
Total		2,267		1,104		(2,403	)		(195	)		(92	)		681

At September 30, 2012, the Company’s level of loans classified as substandard and doubtful were $78.4 million and $116,000, respectively, as compared to $47.5 million and $1.7 million, respectively, at December 31, 2011. The Company’s specific reserve for impaired loans was $3.6 million at September 30, 2012, and $4.1 million at December 31, 2011, respectively.

At September 30, 2012, the Company’s level of performing Troubled Debt Restructurings (“TDRs”) was $9.3 million, as compared to $6.2 million at December 31, 2011. A summary of the activity in loans classified as performing TDRs for the nine month period ended September 30, 2012, is as follows:

	Balance at December 31, 2011		New TDR		Loss or Foreclosure		Removed due to performance		Balance at September 30, 2012
					(Dollars in Thousands)
One-to-four family mortgages		1,111		146		—		705		552
Home equity line of credit		—		244		—		40		204
Junior Lien		757		—		—		757		—
Multi-family		—		239		—		3		236
Construction		—		3,145		—		—		3,145
Land		941		4,850		233		757		4,801
Farmland		—		956		—		956		—
Non-residential real estate		3,366		—		453		2,913		—
Consumer loans		32		75		2		97		8
Commercial loans		20		931		10		570		371
Total performing TDR		6,227		10,586		698		6,798		9,317

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HFBC Reports Third Quarter Results

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October 31, 2012

A summary of TDRs and non-performing TDRs at September 30, 2012, and December 31, 2011, is stated below:

	September 30, 2012			December 31, 2011
	(Dollars in Thousands)
One-to-four family mortgages	$	2,001			2,521
Home equity line of credit		204			—
Junior lien		—			857
Multi-family		236			—
Construction		3,145			—
Land		4,801			941
Non-residential real estate		2,490			3,367
Farmland		956			—
Consumer loans		8			33
Commercial loans		371			125
Total TDR	$	14,212			7,844
Less:
TDR in non-accrual status
One-to-four family mortgages		(1,449	)		(1,410	)
Home equity line of credit		—			—
Junior lien		—			(100	)
Multi-family		—			—
Construction		—			—
Land		—			—
Non-residential real estate		(2,490	)		(1	)
Farmland		(956	)		—
Consumer loans		—			(1	)
Commercial loans		—			(105	)
Total performing TDR	$	9,317		$	6,227

Net Interest Income

For the three month period ended September 30, 2012, the Company’s net interest income was $5.9 million, compared to $6.9 million for the three month period ended September 30, 2011, and $6.7 million for the three month period ended June 30, 2012. For the three and nine month periods ended September 30, 2012, net interest income was reduced by $480,000 as a result of FHLB prepayment penalties.

For the nine month period ended September 30, 2012, the Company’s net interest income was $19.4 million, as compared to $20.7 million for the nine month period ended September 30, 2011. For the nine month period ended September 30, 2012, the Company’s net interest margin was 2.84%, as compared to 3.01% for the nine month period ended September 30, 2011. For the nine month period ended September 30, 2012, FHLB prepayment penalties reduced the Company’s net interest margin 0.07%.

The decline in the Company’s net interest income and net interest margin for the three and nine month periods ended September 30, 2012, is largely the 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. Given the poor climate for reinvesting excess funds, management anticipates that our current pricing strategy may result in further reductions in time deposits. Management will fund the reduction in assets by selling investment securities.

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HFBC Reports Third Quarter Results

Page 5

October 31, 2012

Non-interest Income

Non-interest income for the three month period ended September 30, 2012, was $2.9 million, as compared to $3.3 million for the three month periods ended September 30, 2011, and $2.6 million for the three month period ended June 30, 2012, respectively. Non-interest income for the nine month periods ended September 30, 2012, and September 30, 2011, was $7.5 million and $7.8 million, respectively.

The decrease in non-interest income for the three month period ended September 30, 2012, as compared to the three month period ended September 30, 2011, was primarily the result of a lower level of gains on the sale of securities. The Company recognized net gains on the sale of securities of $944,000 and $1,247,000 for the three month periods ended September 30, 2012, and September 30, 2011, respectively.

For the nine month period ended September 30, 2012, the Company’s non-interest income declined $311,000 as compared to the nine month period ended September 30, 2011. For the nine month period ended September 30, 2012, gains on the sale of securities were $1.6 million, as compared to $2.3 million for the nine month period ended September 30, 2011. For the nine month periods ended September 30, 2012, and September 30, 2011, revenue related to the origination of fixed rate mortgage loans was $755,000 and $425,000, respectively.

Non-interest Expense

Non-interest expenses were $7.1 million for the three month periods ended September 30, 2012, and September 30, 2011, respectively as compared to $7.4 million for the three month period ended June 30, 2012. For the nine months ended September 30, 2012, and September 30, 2011, non-interest expenses were $21.6 million and $22.0 million, respectively. On a linked quarter basis, non-interest expenses declined $378,000 due to slightly lower levels of compensation and professional services expenses. 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 June 30, 2012, to September 30, 2012.

The decrease in non-interest expense during the nine month period ended September 30, 2012, as compared to September 30, 2011, is largely the result of a reduced level of losses on the sale of other real estate owned. Losses on the sale of other real estate owned were $1.6 million during the nine month period ended September 30, 2011, and $287,000 for the same period in 2012. For the nine month period ended September 30, 2012, non-interest expenses experiencing notable changes as compared to the nine month period ended September 31, 2011, were:

	Change in expense			Percentage change from prior period
Salaries and benefits		528,000			5.48	%
Professional services		334,000			33.87	%
Deposit insurance and examination		(332,000	)		-20.70	%
Other operating expenses		711,000			123.65	%
Loss on sale of other assets owned		(1,355,000	)		-82.52	%

The Company’s salaries and benefits expense, other operating expenses and professional services expenses have increased due to increased regulatory and compliance requirements. The reduction in losses on sale of other real estate owned is the result of lower balances in that asset class. The reduction in the Company’s deposit insurance and examination expense is largely the result of a reduced level of brokered and time deposits.

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HFBC Reports Third Quarter Results

Page 6

October 31, 2012

Balance Sheet

Total assets were $996.7 million at September 30, 2012, a decrease of $44.1 million as compared to December 31, 2011. The decline in the size of the balance sheet is largely the result of a $45.5 million reduction in time deposit balances and $19.1 million decline in FHLB borrowings. The reduction in time deposits included an $8.2 million decline in brokered deposits.

The Company funded the decline in the balance sheet largely by reducing the size of its investment portfolio by $34.9 million.

For the nine month period ended September 30, 2012, gross loans declined by approximately $17.6 million, to $550.0 million as compared to $567.6 million at December 31, 2011. For the three month period ended September 30, 2012, gross loans decreased $884,000. The Company is experiencing modest loan demand in its highly competitive market.

The Company recently completed its first examination under the Office of the Comptroller of the Currency (“OCC”). As a result of the examination, the OCC has terminated the Bank’s Memorandum of Understanding agreement. The termination of the memorandum may result in lower operating cost and increased business opportunities in the future. The Company remains fully compliant with a Memorandum of Understanding with the Federal Reserve Bank that limits our ability to borrow money and make capital distributions. The termination of the Company’s Memorandum will provide management the opportunity to re-evaluate its capital requirements, including the possibility of making a request to the United States Treasury Department to repurchase all outstanding preferred shares sold under the Treasury’s Capital Purchase Plan in 2008. In repurchasing all outstanding preferred shares, the Company would save $920,000 in preferred dividends, or $0.12 per share, basic and diluted.

The Company

HopFed Bancorp, Inc. is the holding company for Heritage Bank headquartered in Hopkinsville, Kentucky. The Bank has eighteen offices in western Kentucky and middle Tennessee in addition to its subsidiary, Fall & Fall Insurance of Fulton, Kentucky. The Bank 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 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.

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HFBC Reports Third Quarter Results

Page 7

October 31, 2012

HOPFED BANCORP, INC.

Balance Sheet

(Dollars in thousands)

	September 30, 2012		December 31, 2011
	(Unaudited )
Assets
Cash and due from banks	$	40,700		44,389
Interest-earning deposits in Federal Home Loan Bank		17,003		4,371
Cash and cash equivalents		57,703		48,760
Federal Home Loan Bank stock, at cost		4,428		4,428
Securities available for sale		348,877		383,782
Loans held for sale		2,763		—
Loans receivable, net of allowance for loan losses of $10,490 at September 30, 2012, and $11,262 at December 31, 2011		539,503		556,360
Accrued interest receivable		5,333		6,183
Real estate and other assets owned		681		2,267
Bank owned life insurance		9,373		9,135
Premises and equipment, net		22,750		23,431
Deferred tax assets		—		1,132
Intangible asset		341		519
Other assets		4,981		4,823
Total assets	$	996,733		1,040,820
Liabilities and Stockholders’ Equity
Liabilities:
Deposits:
Non-interest-bearing accounts	$	88,451		79,550
Interest-bearing accounts
NOW accounts		131,952		130,114
Savings and money market accounts		74,314		70,443
Other time deposits		474,539		519,988
Total deposits		769,256		800,095
Advances from Federal Home Loan Bank		44,222		63,319
Repurchase agreements		42,799		43,080
Subordinated debentures		10,310		10,310
Advances from borrowers for taxes and insurance		639		153
Deferred tax liability		628		—
Dividends payable		179		176
Accrued expenses and other liabilities		5,439		5,204
Total liabilities		873,472		922,337

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

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HFBC Reports Third Quarter Results

Page 8

October 31, 2012

HOPFED BANCORP, INC.

Balance Sheet

(Dollars in thousands)

	September 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 September 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 September 30, 2012, and 7,895,336 issued and 7,492,420 outstanding at December 31, 2011		79			79
Common stock warrants (253,666 issued and outstanding)		556			556
Additional paid-in-capital		76,127			75,967
Retained earnings-substantially restricted		41,330			39,591
Treasury stock (at cost, 402,916 shares at September 30, 2012, and December 31, 2011)		(5,076	)		(5,076	)
Accumulated other comprehensive income, net of taxes		10,245			7,366
Total stockholders’ equity		123,261			118,483
Total liabilities and stockholders’ equity	$	996,733			1,040,820

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

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HFBC Reports Third Quarter Results

Page 9

October 31, 2012

HOPFED BANCORP, INC.

Selected Financial Data

(Dollars in thousands)

	For the Three Month Periods Ended September 30,				For the Nine Month  Periods Ended September 30,
	2012		2011		2012		2011
Interest and dividend income:
Loans receivable		7,403		8,332		22,617		25,254
Investment in securities, taxable		2,014		2,581		6,823		8,003
Nontaxable securities available for sale		573		532		1,695		1,733
Interest-earning deposits		6		5		20		13
Total interest and dividend income		9,996		11,450		31,155		35,003
Interest expense:
Deposits		2,640		3,543		8,279		11,179
Advances from Federal Home Loan Bank		1,017		625		2,155		1,946
Repurchase agreements		236		238		721		668
Subordinated debentures		185		186		553		551
Total interest expense		4,078		4,592		11,708		14,344
Net interest income		5,918		6,858		19,447		20,659
Provision for loan losses		506		475		1,775		5,445
Net interest income after provision for loan losses		5,412		6,383		17,672		15,214
Non-interest income:
Service charges		963		1,020		2,874		2,828
Merchant card income		212		194		620		571
Mortgage origination revenue		289		295		755		425
Gain on sale of securities		944		1,247		1,618		2,297
Other than temporarily impairment on available for sale securities		—		—		—		(14	)
Income from bank owned life insurance		80		84		238		249
Financial services commission		280		272		778		691
Other operating income		129		169		570		717
Total non-interest income		2,897		3,281		7,453		7,764

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

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HFBC Reports Third Quarter Results

Page 10

October 31, 2012

HOPFED BANCORP, INC.

Selected Financial Data

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

	For the Three Month Periods Ended September 30,				For the Nine Month Periods Ended September 30,
	2012		2011		2012		2011
Non-interest expenses:
Salaries and benefits		3,447		3,309		10,515		9,987
Occupancy expense		875		867		2,614		2,452
Data processing expense		610		653		1,863		2,056
State deposit tax		161		151		485		476
Intangible amortization expense		48		65		178		227
Professional services expense		435		293		1,320		986
Deposit insurance and examination expense		419		445		1,272		1,604
Advertising expense		324		324		952		931
Postage and communications expense		146		140		444		421
Supplies expense		64		96		280		294
Loss on disposal of equipment		5		5		13		145
Loss on sale of real estate owned		68		570		287		1,642
Real estate owned expenses		19		16		90		216
Other operating expenses		440		193		1,286		575
Total non-interest expense		7,061		7,127		21,599		22,012
Income before income tax expense		1,248		2,537		3,526		966
Income tax expense		173		909		562		375
Net income		1,075		1,628		2,964		591
Less:
Dividend on preferred shares		229		232		689		688
Accretion dividend on preferred shares		27		28		83		83
Net income available to common shareholders	$	819	$	1,368	$	2,192	($	180	)
Net income available to common shareholders
Per share, basic	$	0.11	$	0.18	$	0.29	($	0.02	)
Per share, diluted	$	0.11	$	0.18	$	0.29	($	0.02	)
Dividend per share	$	0.02	$	0.02	$	0.06	$	0.18
Weighted average shares outstanding - basic		7,487,283		7,481,448		7,485,571		7,456,750
Weighted average shares outstanding - diluted		7,487,283		7,481,448		7,485,571		7,456,750

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

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HFBC Reports Third Quarter Results

Page 11

October 31, 2012

HOPFED BANCORP, INC.

Selected Financial Data

(Dollars in thousands)

	For the Three Months Ended
	9/30/2012		6/30/2012		Change from Prior Quarter
Interest and dividend income:
Loans receivable		7,403		7,413		(10	)
Investment in securities, taxable		2,014		2,434		(420	)
Nontaxable securities available for sale		573		547		26
Interest-earning deposits		6		6		—
Total interest and dividend income		9,996		10,400		(404	)
Interest expense:
Deposits		2,640		2,755		(115	)
Advances from Federal Home Loan Bank		1,017		565		452
Repurchase agreements		236		237		(1	)
Subordinated debentures		185		181		4
Total interest expense		4,078		3,738		340
Net interest income		5,918		6,662		(744	)
Provision for loan losses		506		400		106
Net interest income after provision for loan losses		5,412		6,262		(850	)
Non-interest income:
Service charges		963		973		(10	)
Merchant card income		212		212		0
Mortgage orgination revenue		289		263		26
Gain on sale of securities		944		630		314
Income from bank owned life insurance		80		79		1
Financial services commission		280		271		9
Other operating income		129		211		(82	)
Total non-interest income		2,897		2,639		258

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

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HFBC Reports Third Quarter Results

Page 12

October 31, 2012

HOPFED BANCORP, INC.

Selected Financial Data

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

	For the Three Months Ended
	9/30/2012		6/30/2012		Change from Prior Quarter
Non-interest expenses:
Salaries and benefits	$	3,447		3,561		(114	)
Occupancy expense		875		884		(9	)
Data processing expense		610		627		(17	)
State deposit tax		161		162		(1	)
Intangible amortization expense		48		65		(17	)
Professional services expense		435		498		(63	)
Deposit insurance and examination expense		419		434		(15	)
Advertising expense		324		324		—
Postage and communications expense		146		157		(11	)
Supplies expense		64		105		(41	)
Loss on disposal of equipment		5		2		3
Loss on sale of real estate owned		68		72		(4	)
Real estate owned expenses		19		25		(6	)
Other operating expenses		440		523		(83	)
Total non-interest expense		7,061		7,439		(378	)
Income before income tax expense		1,248		1,462		(214	)
Income tax expense		173		300		(127	)
Net income		1,075		1,162		(87	)
Less:
Dividend on preferred shares		229		231		(2	)
Accretion dividend on preferred shares		27		28		(1	)
Net income (loss) available (attributable) to common stockholders	$	819		903		(84	)
Net income (loss) available (attributable) to common stockholders
Per share, basic	$	0.11	$	0.12		(0.01	)
Per share, diluted	$	0.11	$	0.12		(0.01	)
Dividend per share	$	0.02	$	0.02
Weighted average shares outstanding - basic		7,487,283		7,485,283
Weighted average shares outstanding - diluted		7,487,283		7,485,283

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

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HFBC Reports Third Quarter Results

Page 13

October 31, 2012

HOPFED BANCORP, INC.

Selected Financial Data

The table below adjusts tax-free investment income for the nine month periods ended September 30, 2012, and September 30, 2011, by $798,000 and $810,000, respectively; for a tax equivalent rate using a cost of funds rate of 2.00% for the nine month period ended September 30, 2012, and 2.20% for the nine month period ended September 30, 2011. The table adjusts tax-free loan income by $7,000 for the nine month period ended September 30, 2012, and $27,000 for the nine month period ended September 30, 2011, for a tax equivalent rate using the same cost of funds rate:

	Average Balance 9/30/2012		Income and Expense 9/30/2012			Average Rates 9/30/2012			Average Balance 9/30/2011		Income and Expense 9/30/2011			Average Rates 9/30/2011
	(Dollars in Thousands, Except Percentages)
Loans	$	545,464	$	22,624			5.53	%	$	579,888	$	25,281			5.81	%
Investments AFS taxable		322,091		6,823			2.82	%		305,778		8,016			3.50	%
Investment AFS tax free		67,714		2,493			4.91	%		66,877		2,543			5.07	%
Fed Funds		14,918		20			0.18	%		—		—			—
Total interest earning assets		950,187		31,960			4.48	%		952,543		35,840			5.02	%
Other assets		87,878								121,080
Total assets	$	1,038,065							$	1,073,623
Retail time deposits	$	444,553		6,538			1.96	%	$	470,894		8,608			2.44	%
Brokered deposits		52,558		754			1.91	%		84,139		1,222			1.94	%
Now accounts		145,015		888			0.82	%		137,961		1,256			1.21	%
MMDA and savings accounts		73,983		99			0.18	%		67,369		93			0.18	%
FHLB borrowings		61,336		2,155			4.68	%		72,557		1,946			3.58	%
Repurchase agreements		40,968		721			2.35	%		39,676		668			2.24	%
Subordinated debentures		10,310		553			7.15	%		10,310		551			7.13	%
Total interest bearing liabilities		828,723		11,708			1.88	%		882,906		14,344			2.17	%
Non-interest bearing deposits		82,800								72,216
Other liabilities		5,717								4,905
Shareholders equity		120,825								113,596
Total liabilities and shareholder equity	$	1,038,065							$	1,073,623
Net interest income			$	20,252							$	21,496
Interest rate spread							2.60	%							2.85	%
Net interest margin				2.84	%							3.01	%

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

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HFBC Reports Third Quarter Results

Page 14

October 31, 2012

HOPFED BANCORP, INC.

Selected Financial Data

The table below adjusts tax-free investment income for the three month periods ended September 30, 2012, and September 30, 2011, by $273,000 and $250,000, respectively; for a tax equivalent rate using a cost of funds rate of 2.00% for the three month period ended September 30, 2012, and 2.00% for the three month period ended September 30, 2011. The table adjusts tax-free loan income by $2,000 for the three month period ended September 30, 2012 and $7,000 for the three month period ended September 30, 2011, for a tax equivalent rate using the same cost of funds rate:

	Average Balance 9/30/2012		Income & Expense 9/30/2012			Average Rates 9/30/2012			Average Balance 9/30/2011		Income & Expense 9/30/2011			Average Rates 9/30/2011
	(Dollars in Thousands, Except Percentages)
Loans	$	540,811	$	7,405			5.48	%	$	568,600	$	8,339			5.87	%
Investments AFS taxable		308,578		2,014			2.61	%		316,104		2,586			3.27	%
Investment AFS tax free		69,420		846			4.87	%		64,712		782			4.83	%
Fed Funds		10,555		6			—			—		—			—
Total interest earning assets		929,364		10,271			4.42	%		949,416		11,707			4.93	%
Other assets		87,537								118,896
Total assets	$	1,016,901							$	1,068,312
Retail time deposits	$	430,568		2,064			1.92	%	$	475,287		2,773			2.33	%
Brokered deposits		49,181		258			2.10	%		76,557		374			1.95	%
Now accounts		140,424		285			0.81	%		133,022		358			1.08	%
MMDA and savings accounts		75,031		33			0.18	%		68,913		38			0.22	%
FHLB borrowings		58,962		1,017			6.90	%		70,575		625			3.54	%
Repurchase agreements		39,093		236			2.41	%		39,323		238			2.42	%
Subordinated debentures		10,310		185			7.18	%		10,310		186			7.22	%
Total interest bearing liabilities		803,569		4,078			2.03	%		873,987		4,592			2.10	%
Non-interest bearing deposits		84,079								74,077
Other liabilities		6,284								4,983
Stockholders’ equity		122,969								115,265
Total liabilities and stockholders’ equity	$	1,016,901							$	1,068,312
Net interest income			$	6,193							$	7,115
Interest rate spread							2.39	%							2.83	%
Net interest margin				2.67	%							3.00	%

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