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): January 31, 2013
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
Registrants 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 January 31, 2013, the Registrant announced its results of operations for the three and twelve month periods ended December 31, 2012.
A copy of the press release, dated January 31, 2013, 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 January 31, 2013 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: January 31, 2013 | By: | /s/ John E. Peck | ||
John E. Peck | ||||
President and Chief Executive Officer |
Exhibit 99.1
NEWS | ||||
FOR IMMEDIATE RELEASE | CONTACT: | John E. Peck | ||
President and CEO | ||||
(270) 885-1171 | ||||
HOPFED BANCORP, INC. REPORTS FOURTH QUARTER RESULTS
HOPKINSVILLE, Ky. (January 31, 2013) HopFed Bancorp, Inc. (NASDAQ: HFBC) (the Company), the holding company for Heritage Bank (the Bank), today reported results for the three and twelve month periods ended December 31, 2012. For the three month period ended December 31, 2012, the Companys net income available to common shareholders was $648,000, or $0.09 per share, basic and diluted, compared to net income available to common shareholders of $2.1 million, or $0.28 per share basic and diluted, for the three month period ended December 31, 2011. For the twelve month period ended December 31, 2012, the Companys net income available to common shareholders was $2.8 million, or $0.38 per share, basic and diluted, compared to a net income available to common shareholders of $1.9 million, or $0.25 per share basic and diluted, for the twelve month period ended December 31, 2011.
Commenting on the fourth quarter results, John E. Peck, President and Chief Executive Officer, said, The Company has repurchased 100% of our Preferred Stock from the United States Treasury. The $18.4 million repurchase of Preferred Stock required the accelerated accretion of our warrant discount and a final dividend payment totaling $200,000 in December of 2012. The Warrant allowed the Treasury to purchase 253,667 shares of HopFed Common Stock at an exercise price of $10.88 and was scheduled to expire on December 12, 2018. On January 16, 2013, the Company repurchased the Warrant issued to the Treasury for $256,257.
Mr. Peck continued, We have been successful in reducing our cost of time deposits during the fourth quarter of 2012. For the three month period ended December 31, 2012, the cost of retail time deposits was 1.74%, as compared to 1.92% for the three month period ended September 30, 2012. For the three month period ended December 31, 2012, the Companys cost of deposits was 1.20%, compared to 1.36% for the three month period ended September 30, 2012, and 1.46% for the three month period ended December 31, 2011. As discussed below, the Companys net interest margin improved substantially as compared to the three month period ended September 30, 2012.
Mr. Peck concluded, The Company experienced a $9.2 million reduction in classified loans during the quarter and $23.7 million in the last two quarters. The Companys credit trends continue to improve and our non-performing asset ratio continues to decline. Reducing the level of adversely classified assets remains a priority for the Company.
Financial Highlights
| The Company and Banks capital ratios remain strong after the repurchase of all Preferred Stock. At December 31, 2012, the Companys tangible book value was $13.88 per share and our tangible common equity ratio is 10.83%. The Banks Tier 1 Leverage and Total Risk Based Capital Ratios at December 31, 2012, are 10.62% and 19.07%, respectively. The Companys Tier 1 Leverage and Total Risk Based Capital Ratios are 10.85% and 19.42%, respectively. |
| At December 31, 2012, the Banks and Companys net classified loans to risk based capital ratios were 60.74% and 59.36%, respectively. At September 30, 2012, these ratios were 68.76% for the Bank and 60.42% for the Company. At June 30, 2012, these ratios were 86.50% for the Bank and 76.1% for the Company. These ratios are improved despite the $18.4 million repurchase of Preferred Stock. |
| At December 31, 2012, the Companys allowance for loan loss totaled $10.6 million, or 1.99% of total loans and 138.99% of non-accrual loans. In the twelve month period ended December 31, 2012, the Companys net charge offs totaled $2.9 million, or an annualized rate of 0.52% of average loans. |
| For the three month period ended December 31, 2012, the Companys net interest margin was 3.01%, as compared to 2.67% for the three month period ended September 30, 2012, and 3.13% for the three month period ended December 31, 2011. |
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HFBC Reports Fourth Quarter Results
Page 2
January 31, 2013
Asset Quality
At December 31, 2012, the Companys level of non-accrual loans totaled $7.6 million, as compared to $6.1 million at December 31, 2011. At December 31, 2012, non-accrual loans total 1.43% of total loans.
A summary of non-accrual loans at December 31, 2012, and December 31, 2011, is as follows:
12/31/2012 | 12/31/2011 | |||||||
(Dollars in Thousands) | ||||||||
One-to-four family first mortgages |
2,243 | 2,074 | ||||||
Home equity lines of credit |
66 | 134 | ||||||
Junior liens |
4 | 101 | ||||||
Multi-family |
38 | | ||||||
Construction |
| | ||||||
Land |
2,768 | 1,330 | ||||||
Non-residential real estate |
1,134 | 2,231 | ||||||
Farmland |
648 | | ||||||
Consumer loans |
145 | 9 | ||||||
Commercial loans |
617 | 254 | ||||||
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|
|
|
|||||
Total non-accrual loans |
7,663 | 6,133 | ||||||
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|
|
|
A summary of the level of classified loans at December 31, 2012, is as follows:
Pass | Special Mention |
Impaired Loans | Total | Specific Reserve for Impairment |
Reserve for Performing Loans |
|||||||||||||||||||||||
December 31, 2012 | Substandard | Doubful | ||||||||||||||||||||||||||
(Dollars in Thousands) | ||||||||||||||||||||||||||||
One-to-four family mortgages |
156,961 | 779 | 4,595 | | 162,335 | 754 | 1,736 | |||||||||||||||||||||
Home equity line of credit |
34,737 | 1,109 | 1,237 | | 37,083 | 76 | 298 | |||||||||||||||||||||
Junior liens |
3,821 | 47 | 468 | | 4,336 | 188 | 42 | |||||||||||||||||||||
Multi-family |
27,463 | 1,478 | 4,115 | | 33,056 | 38 | 486 | |||||||||||||||||||||
Construction |
14,052 | | 4,848 | | 18,900 | - | 256 | |||||||||||||||||||||
Land |
14,374 | 7,683 | 23,849 | | 45,906 | 932 | 1,252 | |||||||||||||||||||||
Non-residential real estate |
107,947 | 669 | 14,021 | | 122,637 | 1,240 | 1,681 | |||||||||||||||||||||
Farmland |
38,496 | 1,230 | 7,073 | | 46,799 | 184 | 528 | |||||||||||||||||||||
Consumer loans |
13,330 | | 556 | | 13,886 | 121 | 217 | |||||||||||||||||||||
Commercial loans |
44,191 | 516 | 5,842 | | 50,549 | 308 | 311 | |||||||||||||||||||||
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Total |
455,372 | 13,511 | 66,604 | | 535,487 | 3,841 | 6,807 | |||||||||||||||||||||
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At December 31, 2012, non-accrual loans plus other real estate owned totaled $9.2 million, or 0.95% of total assets, as compared to $8.4 million, or 0.81% of total assets, at December 31, 2011. The Companys level of other real estate owned has declined from $2.3 million at December 31, 2011, to $1.5 million at December 31, 2012.
This information is preliminary and based on company data available at the time of the presentation.
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HFBC Reports Fourth Quarter Results
Page 3
January 31, 2013
At December 31, 2012, the Companys level of loans classified as substandard and doubtful were $66.6 million and none, respectively. At September 30, 2012, the Companys level of loans classified as substandard and doubtful were $75.7 million and $116,000, respectively, as compared to $47.5 million and $1.7 million, respectively, at December 31, 2011. The Companys specific reserve for impaired loans was $3.8 million at December 31, 2012, and $4.1 million at December 31, 2011.
At December 31, 2012, the Companys level of performing Troubled Debt Restructurings (TDRs) was $11.1 million, as compared to $6.2 million at December 31, 2011. A summary of the activity in loans classified as performing TDRs for the twelve month period ended December 31, 2012, is as follows:
Balance at 12/31/11 |
New TDR |
Loss or Foreclosure |
Removed Due to Performance |
Removed from (Taken to) Non-accrual |
Balance at 12/31/12 |
|||||||||||||||||||
One-to-four family mortgages |
1,111 | 146 | | 705 | (1,336 | ) | 1,888 | |||||||||||||||||
Home equity line of credit |
| 244 | | 244 | | | ||||||||||||||||||
Junior Lien |
757 | | | 561 | | 196 | ||||||||||||||||||
Multi-family |
| 239 | | 5 | | 234 | ||||||||||||||||||
Construction |
| 4,272 | 160 | | | 4,112 | ||||||||||||||||||
Land |
941 | 4,850 | 233 | 804 | 4,098 | 656 | ||||||||||||||||||
Non-residential real estate |
3,366 | | 453 | 2,913 | (3,129 | ) | 3,129 | |||||||||||||||||
Farmland |
| 956 | | 956 | (909 | ) | 909 | |||||||||||||||||
Consumer loans |
32 | 75 | 5 | 97 | | 5 | ||||||||||||||||||
Commercial loans |
20 | 931 | 10 | 932 | | 9 | ||||||||||||||||||
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|||||||||||||
Total performing TDR |
6,227 | 11,713 | 861 | 7,217 | (1,276 | ) | 11,138 | |||||||||||||||||
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This information is preliminary and based on company data available at the time of the presentation.
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HFBC Reports Fourth Quarter Results
Page 4
January 31, 2013
A summary of TDRs and non-performing TDRs at December 31, 2012, and December 31, 2011, is stated below:
December 31, 2012 |
December 31, 2011 |
|||||||
(Dollars in Thousands) | ||||||||
One-to-four family mortgages |
$ | 1,888 | 2,521 | |||||
Home equity line of credit |
| | ||||||
Junior lien |
196 | 857 | ||||||
Multi-family |
234 | | ||||||
Construction |
4,112 | | ||||||
Land |
3,424 | 941 | ||||||
Non-residential real estate |
3,173 | 3,367 | ||||||
Farmland |
909 | | ||||||
Consumer loans |
5 | 33 | ||||||
Commercial loans |
128 | 125 | ||||||
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|
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Total TDR |
$ | 14,069 | 7,844 | |||||
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Less: |
||||||||
TDR in non-accrual status |
||||||||
One-to-four family mortgages |
| (1,410 | ) | |||||
Home equity line of credit |
| | ||||||
Junior lien |
| (100 | ) | |||||
Multi-family |
| | ||||||
Construction |
| | ||||||
Land |
(2,768 | ) | | |||||
Non-residential real estate |
(44 | ) | (1 | ) | ||||
Farmland |
| | ||||||
Consumer loans |
| (1 | ) | |||||
Commercial loans |
(119 | ) | (105 | ) | ||||
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Total performing TDR |
$ | 11,138 | $ | 6,227 | ||||
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A summary of the activity in other real estate owned for the twelve month period ended December 31, 2012, is as follows:
Balance 12/31/2011 |
Foreclosures | Sales | Reduction in Values |
Gain (Loss) on Sales |
Balance 12/31/2012 |
|||||||||||||||||||
(Dollars in Thousands) | ||||||||||||||||||||||||
One-to-four family mortgages |
480 | 983 | (954 | ) | (92 | ) | (29 | ) | 388 | |||||||||||||||
Multi-family |
905 | | (875 | ) | | (30 | ) | | ||||||||||||||||
Construction |
465 | | (451 | ) | | (14 | ) | | ||||||||||||||||
Land |
248 | 1,229 | (269 | ) | (77 | ) | (19 | ) | 1,112 | |||||||||||||||
Non-residential real estate |
160 | 64 | (178 | ) | (20 | ) | 18 | 44 | ||||||||||||||||
Consumer assets |
9 | 9 | (11 | ) | | (3 | ) | 4 | ||||||||||||||||
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Total |
2,267 | 2,285 | (2,738 | ) | (189 | ) | (77 | ) | 1,548 | |||||||||||||||
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This information is preliminary and based on company data available at the time of the presentation.
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HFBC Reports Fourth Quarter Results
Page 5
January 31, 2013
Net Interest Income
For the three month period ended December 31, 2012, the Companys net interest income was $6.5 million, compared to $7.2 million for the three month period ended December 31, 2011, and $5.9 million for the three month period ended September 30, 2012. For the twelve month period ended December 31, 2012, the Companys net interest income was $26.0 million, as compared to $27.8 million for the twelve month period ended December 31, 2011. For the twelve month period ended December 31, 2012, the Companys net interest margin was 2.90%, as compared to 3.02% for the twelve month period ended December 31, 2011. For the twelve month period ended December 31, 2012, net interest income was reduced by $480,000 as a result of FHLB prepayment penalties. FHLB prepayment penalties reduced the Companys net interest margin for the twelve month period ended December 31, 2012, by 0.05%.
The Companys net interest margin improved significant for the three month period ended December 31, 2012, as compared to the three month period ended September 30, 2012. The improvement occurred largely as a result of the re-pricing of more than $96 million in time deposits. On a linked quarter basis, interest expense on deposits declined by $348,000 and interest expense on FHLB borrowings declined by $563,000.
The decline in the Companys net interest income and net interest margin for the twelve month period ended December 31, 2012, as compared to the twelve month period ending December 31, 2011, is largely the result of declining average loan balances and high level of cash flow from our investment portfolio.
Non-interest Income
Non-interest income for the three month period ended December 31, 2012, was $2.2 million, as compared to $2.4 million for the three month periods ended December 31, 2011, and $2.9 million for the three month period ended September 30, 2012, respectively. Non-interest income for the twelve month periods ended December 31, 2012, and December 31, 2011, was $9.6 million and $10.2 million, respectively.
The decrease in non-interest income for the three and twelve month periods ended December 31, 2012, as compared to the three and twelve month periods ended December 31, 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 $53,000 and $1.7 million for the three month and twelve month periods ended December 31, 2012, as compared to $600,000 and $2.9 million for the three and twelve month period ended December 31, 2011. The Company recognized $944,000 in gains on the sale of securities during the three month period ended September 30, 2012.
For the three and twelve month periods ended December 31, 2012, the Companys income from financial services increased by $90,000 and $177,000, respectively as compared to the same periods in 2011. For the three and twelve month periods ended December 31, 2012, income from fixed rate mortgage originations was $272,000 and $956,000, as compared to $295,000 and $720,000 for the three and twelve month periods ended December 31, 2011. For the three month period ended December 31, 2012, income on bank owned life insurance increased by $95,000 as compared to the three month period ended December 31, 2011, as a result of the death benefit received.
This information is preliminary and based on company data available at the time of the presentation.
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HFBC Reports Fourth Quarter Results
Page 6
January 31, 2013
Non-interest Expense
Non-interest expenses were $6.9 million and $6.7 million for the three month periods ended December 31, 2012, and December 31, 2011, respectively, and $7.0 million for the three month period ended September 30, 2012. For the twelve month ended December 31, 2012, and December 31, 2011, non-interest expenses were $28.4 million and $28.7 million, respectively. On a linked quarter basis, non-interest expenses declined $39,000 due to lower levels of professional services expenses and deposit insurance expense. These reductions were largely offset by a $197,000 increase in other operating expense attributable to an alternative minimum tax adjustment at December 31, 2012.
The Companys 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 Companys deposit insurance and examination expense is largely the result of a reduced level of brokered and time deposits and the removal of informal regulatory actions.
Balance Sheet
Total assets were $967.7 million at December 31, 2012, a decrease of $73.1 million as compared to December 31, 2011. The decline in the size of the balance sheet is largely the result of an $82.9 million reduction in time deposit balances and $19.6 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 $27.4 million. For the twelve month period ended December 31, 2012, gross loans declined by approximately $32.0 million, to $535.6 million as compared to $567.6 million at December 31, 2011.
The Company recently repurchased all outstanding Preferred Stock and the associated Warrant sold under the Treasurys Capital Purchase Plan in December 2008. In repurchasing all outstanding preferred shares, the Company will not have to pay $920,000 in preferred dividends and incur $111,120 of warrant accretion in 2013, equal to $0.14 per share, basic and diluted. As a result of the repurchase of preferred shares, the Company accelerated a final dividend payment $87,000 and warrant accretion of $111,120, reducing net income available to common shareholders by $0.03 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 Banks operations include 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 Companys 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 Companys operating results, performance or financial condition are competition and the demand for the Companys products and services, and other factors as set forth in filings with the Securities and Exchange Commission.
This information is preliminary and based on company data available at the time of the presentation.
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HFBC Reports Fourth Quarter Results
Page 7
January 31, 2013
HOPFED BANCORP, INC.
Balance Sheet
(Dollars in thousands)
December 31, 2012 | December 31, 2011 | |||||||
Assets |
||||||||
Cash and due from banks |
$ | 32,309 | 44,389 | |||||
Interest-earning deposits |
4,867 | 4,371 | ||||||
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Cash and cash equivalents |
37,176 | 48,760 | ||||||
Federal Home Loan Bank stock, at cost |
4,428 | 4,428 | ||||||
Securities available for sale |
356,345 | 383,782 | ||||||
Loans receivable, net of allowance for loan losses of $10,648 at December 31, 2012, and $11,262 at December 31, 2011 |
524,985 | 556,360 | ||||||
Accrued interest receivable |
5,398 | 6,183 | ||||||
Real estate and other assets owned |
1,548 | 2,267 | ||||||
Bank owned life insurance |
9,323 | 9,135 | ||||||
Premises and equipment, net |
22,557 | 23,431 | ||||||
Deferred tax assets |
| 1,132 | ||||||
Intangible asset |
292 | 519 | ||||||
Other assets |
5,637 | 4,823 | ||||||
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Total assets |
$ | 967,689 | 1,040,820 | |||||
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Liabilities and Stockholders Equity |
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Liabilities: |
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Deposits: |
||||||||
Non-interest-bearing accounts |
$ | 94,083 | 79,550 | |||||
Interest-bearing accounts |
||||||||
NOW accounts |
147,047 | 130,114 | ||||||
Savings and money market accounts |
81,643 | 70,443 | ||||||
Other time deposits |
437,092 | 519,988 | ||||||
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Total deposits |
759,865 | 800,095 | ||||||
Advances from Federal Home Loan Bank |
43,741 | 63,319 | ||||||
Repurchase agreements |
43,508 | 43,080 | ||||||
Subordinated debentures |
10,310 | 10,310 | ||||||
Advances from borrowers for taxes and insurance |
396 | 153 | ||||||
Dividends payable |
180 | 176 | ||||||
Deferred tax liability |
568 | | ||||||
Accrued expenses and other liabilities |
4,122 | 5,204 | ||||||
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Total liabilities |
862,690 | 922,337 | ||||||
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This information is preliminary and based on company data available at the time of the presentation.
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HFBC Reports Fourth Quarter Results
Page 8
January 31, 2013
HOPFED BANCORP, INC.
Balance Sheet
(Dollars in thousands)
December 31, 2012 | December 31, 2011 | |||||||
Stockholders equity |
||||||||
Preferred stock, par value $0.01 per share; authorized - 500,000 shares; 18,400 shares issued and no shares outstanding at December 31, 2012; and 18,400 shares issued and outstanding with a liquidation preference of $18,400,000 at 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 December 31, 2012, and 7,895,336 issued and 7,492,420 outstanding at December 31, 2011 |
79 | 79 | ||||||
Common stock warrant |
556 | 556 | ||||||
Additional paid-in-capital |
76,288 | 75,967 | ||||||
Retained earnings-substantially restricted |
41,829 | 39,591 | ||||||
Treasury stock-preferred (at cost, 18,400 shares at December 31, 2012, and none at December 31, 2011) |
(18,400 | ) | | |||||
Treasury stock-common (at cost, 402,916 shares at |
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December 31, 2012, and December 31, 2011) |
(5,076 | ) | (5,076 | ) | ||||
Accumulated other comprehensive income, net of taxes |
9,723 | 7,366 | ||||||
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Total stockholders equity |
104,999 | 118,483 | ||||||
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Total liabilities and stockholders equity |
$ | 967,689 | 1,040,820 | |||||
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This information is preliminary and based on company data available at the time of the presentation.
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HFBC Reports Fourth Quarter Results
Page 9
January 31, 2013
HOPFED BANCORP, INC.
Selected Financial Data
(Dollars in thousands)
For the Three Month Periods Ended December 31, |
For the Twelve Month Periods Ended December 31, |
|||||||||||||||
2012 | 2011 | 2012 | 2011 | |||||||||||||
Interest and dividend income: |
||||||||||||||||
Loans receivable |
7,211 | 8,239 | 29,828 | 33,493 | ||||||||||||
Investment in securities, taxable |
1,899 | 2,462 | 8,722 | 10,465 | ||||||||||||
Nontaxable securities available for sale |
571 | 530 | 2,266 | 2,263 | ||||||||||||
Interest-earning deposits |
4 | 6 | 24 | 19 | ||||||||||||
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Total interest and dividend income |
9,685 | 11,237 | 40,840 | 46,240 | ||||||||||||
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Interest expense: |
||||||||||||||||
Deposits |
2,292 | 3,028 | 10,571 | 14,207 | ||||||||||||
Advances from Federal Home Loan Bank |
454 | 611 | 2,609 | 2,557 | ||||||||||||
Repurchase agreements |
242 | 241 | 963 | 909 | ||||||||||||
Subordinated debentures |
181 | 191 | 734 | 742 | ||||||||||||
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Total interest expense |
3,169 | 4,071 | 14,877 | 18,415 | ||||||||||||
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Net interest income |
6,516 | 7,166 | 25,963 | 27,825 | ||||||||||||
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|
|
|||||||||
Provision for loan losses |
500 | 476 | 2,275 | 5,921 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Net interest income after provision for loan losses |
6,016 | 6,690 | 23,688 | 21,904 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Non-interest income: |
||||||||||||||||
Service charges |
966 | 985 | 3,840 | 3,813 | ||||||||||||
Merchant card income |
222 | 197 | 842 | 768 | ||||||||||||
Mortgage origination revenue |
272 | 295 | 956 | 720 | ||||||||||||
Gain on sale of securities |
53 | 600 | 1,671 | 2,897 | ||||||||||||
Other than temporarily impairment on available for sale securities |
| (141 | ) | | (155 | ) | ||||||||||
Income from bank owned life insurance |
161 | 66 | 399 | 316 | ||||||||||||
Financial services commission |
293 | 203 | 1,071 | 894 | ||||||||||||
Other operating income |
219 | 224 | 860 | 940 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total non-interest income |
2,186 | 2,429 | 9,639 | 10,193 | ||||||||||||
|
|
|
|
|
|
|
|
This information is preliminary and based on company data available at the time of the presentation.
-MORE-
HFBC Reports Fourth Quarter Results
Page 10
January 31, 2013
HOPFED BANCORP, INC.
Selected Financial Data
(Dollars in thousands, except share and per share data)
For the Three Month Periods Ended December 31, |
For the Twelve Month Periods Ended December 31, |
|||||||||||||||
2012 | 2011 | 2012 | 2011 | |||||||||||||
Non-interest expenses: |
||||||||||||||||
Salaries and benefits |
3,464 | 3,279 | 13,979 | 13,266 | ||||||||||||
Occupancy expense |
917 | 817 | 3,531 | 3,269 | ||||||||||||
Data processing expense |
631 | 589 | 2,494 | 2,645 | ||||||||||||
State deposit tax |
162 | 151 | 647 | 627 | ||||||||||||
Intangible amortization expense |
49 | 65 | 227 | 291 | ||||||||||||
Professional services expense |
285 | 386 | 1,605 | 1,372 | ||||||||||||
Deposit insurance and examination expense |
267 | 417 | 1,539 | 2,021 | ||||||||||||
Advertising expense |
405 | 304 | 1,357 | 1,235 | ||||||||||||
Postage and communications expense |
118 | 128 | 562 | 549 | ||||||||||||
Supplies expense |
75 | 105 | 355 | 399 | ||||||||||||
Loss on disposal of equipment |
| | 13 | 145 | ||||||||||||
(Gain) Loss on sale of real estate owned |
(21 | ) | 61 | 266 | 1,703 | |||||||||||
Real estate owned expenses |
33 | 60 | 123 | 276 | ||||||||||||
Other operating expenses |
547 | 319 | 1,743 | 895 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total non-interest expense |
6,932 | 6,681 | 28,441 | 28,693 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Income before income tax expense |
1,270 | 2,438 | 4,886 | 3,404 | ||||||||||||
Income tax expense |
165 | 109 | 817 | 484 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Net income |
1,105 | 2,329 | 4,069 | 2,920 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Less: |
||||||||||||||||
Dividend on preferred shares |
318 | 232 | 1,007 | 920 | ||||||||||||
Accretion dividend on preferred shares |
139 | 28 | 222 | 111 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Net income available to common shareholders |
$ | 648 | $ | 2,069 | $ | 2,840 | $ | 1,889 | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Net income available to common shareholders |
||||||||||||||||
Per share, basic |
$ | 0.09 | $ | 0.28 | $ | 0.38 | $ | 0.25 | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Per share, diluted |
$ | 0.09 | $ | 0.28 | $ | 0.38 | $ | 0.25 | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Dividend per share |
$ | 0.02 | $ | 0.02 | $ | 0.08 | $ | 0.20 | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Weighted average shares outstanding - basic |
7,487,726 | 7,484,420 | 7,486,445 | 7,460,294 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Weighted average shares outstanding - diluted |
7,487,726 | 7,484,420 | 7,486,445 | 7,460,294 | ||||||||||||
|
|
|
|
|
|
|
|
This information is preliminary and based on company data available at the time of the presentation.
-MORE-
HFBC Reports Fourth Quarter Results
Page 11
January 31, 2013
HOPFED BANCORP, INC.
Selected Financial Data
(Dollars in thousands)
For the Three Months Ended |
Change from Prior Quarter |
|||||||||||
12/31/2012 | 9/30/2012 | |||||||||||
Interest and dividend income: |
||||||||||||
Loans receivable |
7,211 | 7,403 | (192 | ) | ||||||||
Investment in securities, taxable |
1,899 | 2,014 | (115 | ) | ||||||||
Nontaxable securities available for sale |
571 | 573 | (2 | ) | ||||||||
Interest-earning deposits |
4 | 6 | (2 | ) | ||||||||
|
|
|
|
|
|
|||||||
Total interest and dividend income |
9,685 | 9,996 | (311 | ) | ||||||||
|
|
|
|
|
|
|||||||
Interest expense: |
||||||||||||
Deposits |
2,292 | 2,640 | (348 | ) | ||||||||
Advances from Federal Home Loan Bank |
454 | 1,017 | (563 | ) | ||||||||
Repurchase agreements |
242 | 236 | 6 | |||||||||
Subordinated debentures |
181 | 185 | (4 | ) | ||||||||
|
|
|
|
|
|
|||||||
Total interest expense |
3,169 | 4,078 | (909 | ) | ||||||||
|
|
|
|
|
|
|||||||
Net interest income |
6,516 | 5,918 | 598 | |||||||||
|
|
|
|
|
|
|||||||
Provision for loan losses |
500 | 506 | (6 | ) | ||||||||
|
|
|
|
|
|
|||||||
Net interest income after provision for loan losses |
6,016 | 5,412 | 604 | |||||||||
|
|
|
|
|
|
|||||||
Non-interest income: |
||||||||||||
Service charges |
966 | 963 | 3 | |||||||||
Merchant card income |
222 | 212 | 10 | |||||||||
Mortgage orgination revenue |
272 | 218 | 54 | |||||||||
Gain on sale of securities |
53 | 944 | (891 | ) | ||||||||
Income from bank owned life insurance |
161 | 80 | 81 | |||||||||
Financial services commission |
293 | 280 | 13 | |||||||||
Other operating income |
219 | 200 | 19 | |||||||||
|
|
|
|
|
|
|||||||
Total non-interest income |
2,186 | 2,897 | (711 | ) | ||||||||
|
|
|
|
|
|
This information is preliminary and based on company data available at the time of the presentation
-MORE-
HFBC Reports Fourth Quarter Results
Page 12
January 31, 2013
HOPFED BANCORP, INC.
Selected Financial Data
(Dollars in thousands, except share and per share data)
12/31/2012 | 9/30/2012 | |||||||||||
Change from Prior Quarter |
||||||||||||
Non-interest expenses: |
||||||||||||
Salaries and benefits |
$ | 3,464 | 3,447 | 17 | ||||||||
Occupancy expense |
917 | 875 | 42 | |||||||||
Data processing expense |
631 | 610 | 21 | |||||||||
State deposit tax |
162 | 161 | 1 | |||||||||
Intangible amortization expense |
49 | 48 | 1 | |||||||||
Professional services expense |
285 | 435 | (150 | ) | ||||||||
Deposit insurance and examination expense |
267 | 419 | (152 | ) | ||||||||
Advertising expense |
405 | 324 | 81 | |||||||||
Postage and communications expense |
118 | 146 | (28 | ) | ||||||||
Supplies expense |
75 | 64 | 11 | |||||||||
Loss on disposal of equipment |
| 5 | (5 | ) | ||||||||
Loss on sale of real estate owned |
(21 | ) | 68 | (89 | ) | |||||||
Real estate owned expenses |
33 | 19 | 14 | |||||||||
Other operating expenses |
547 | 350 | 197 | |||||||||
|
|
|
|
|
|
|||||||
Total non-interest expense |
6,932 | 6,971 | (39 | ) | ||||||||
|
|
|
|
|
|
|||||||
Income before income tax expense |
1,270 | 1,338 | (68 | ) | ||||||||
Income tax expense |
165 | 263 | (98 | ) | ||||||||
|
|
|
|
|
|
|||||||
Net income |
1,105 | 1,075 | 30 | |||||||||
|
|
|
|
|
|
|||||||
Less: |
||||||||||||
Dividend on preferred shares |
318 | 229 | 89 | |||||||||
Accretion dividend on preferred shares |
139 | 27 | 112 | |||||||||
|
|
|
|
|
|
|||||||
Net income available to common shareholders |
$ | 648 | 819 | (171 | ) | |||||||
|
|
|
|
|
|
|||||||
Net income available to common shareholders |
||||||||||||
Per share, basic |
$ | 0.09 | $ | 0.11 | (0.02 | ) | ||||||
|
|
|
|
|
|
|||||||
Per share, diluted |
$ | 0.09 | $ | 0.11 | (0.02 | ) | ||||||
|
|
|
|
|
|
|||||||
Dividend per share |
$ | 0.02 | $ | 0.02 | ||||||||
|
|
|
|
|||||||||
Weighted average shares outstanding - basic |
7,487,726 | 7,487,283 | ||||||||||
|
|
|
|
|||||||||
Weighted average shares outstanding - diluted |
7,487,726 | 7,487,283 | ||||||||||
|
|
|
|
This information is preliminary and based on company data available at the time of the presentation.
-MORE-
HFBC Reports Fourth Quarter Results
Page 13
January 31, 2013
HOPFED BANCORP, INC.
Selected Financial Data
The table below adjusts tax-free investment income for the twelve month periods ended December 31, 2012, and December 31, 2011, by $1,076,000 and $1,065,000, respectively; for a tax equivalent rate using a cost of funds rate of 1.80% for the twelve month period ended December 31, 2012, and 2.00% for the twelve month period ended December 31, 2011. The table adjusts tax-free loan income by $9,000 for the twelve month period ended December 31, 2012, and $34,000 for the twelve month period ended December 31, 2011, for a tax equivalent rate using the same cost of funds rate:
Average Balance 12/31/2012 |
Income & Expense 12/31/2012 |
Average Rates 12/31/2012 |
Average Balance 12/31/2011 |
Income & Expense 12/31/2011 |
Average Rates 12/31/2011 |
|||||||||||||||||||
Loans |
$ | 542,292 | $ | 29,837 | 5.50 | % | $ | 575,133 | $ | 33,527 | 5.83 | % | ||||||||||||
Investments AFS taxable |
313,347 | 8,722 | 2.78 | % | 308,022 | 10,465 | 3.40 | % | ||||||||||||||||
Investments AFS tax free |
68,428 | 3,342 | 4.88 | % | 66,104 | 3,328 | 5.03 | % | ||||||||||||||||
Federal funds |
9,850 | 24 | 0.24 | % | 9,075 | 19 | 0.21 | % | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total interest earning assets |
933,917 | 41,925 | 4.49 | % | 958,334 | 47,339 | 4.94 | % | ||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||||||
Other assets |
85,560 | 108,997 | ||||||||||||||||||||||
|
|
|
|
|||||||||||||||||||||
Total assets |
$ | 1,019,477 | $ | 1,067,331 | ||||||||||||||||||||
|
|
|
|
|||||||||||||||||||||
Retail time deposits |
$ | 435,454 | 8,316 | 1.91 | % | $ | 469,052 | 10,908 | 2.33 | % | ||||||||||||||
Brokered deposits |
51,193 | 946 | 1.85 | % | 78,996 | 1,642 | 2.08 | % | ||||||||||||||||
Now accounts |
145,173 | 1,180 | 0.81 | % | 136,828 | 1,543 | 1.13 | % | ||||||||||||||||
MMDA and savings accounts |
74,574 | 129 | 0.17 | % | 68,347 | 114 | 0.17 | % | ||||||||||||||||
FHLB borrowings |
56,990 | 2,609 | 4.58 | % | 71,352 | 2,557 | 3.58 | % | ||||||||||||||||
Repurchase agreements |
40,915 | 963 | 2.35 | % | 39,894 | 909 | 2.28 | % | ||||||||||||||||
Subordinated debentures |
10,310 | 734 | 7.12 | % | 10,310 | 742 | 7.20 | % | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total interest bearing liabilities |
814,609 | 14,877 | 1.83 | % | 874,779 | 18,415 | 2.11 | % | ||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||||||
Non-interest bearing deposits |
84,304 | 72,961 | ||||||||||||||||||||||
Other non-interest bearing liabilities |
6,559 | 4,562 | ||||||||||||||||||||||
Stockholders equity |
114,005 | 115,029 | ||||||||||||||||||||||
|
|
|
|
|||||||||||||||||||||
Total liabilities and stockholders equity |
$ | 1,019,477 | $ | 1,067,331 | ||||||||||||||||||||
|
|
|
|
|||||||||||||||||||||
Net change in interest earning assets and interest bearing liabilities |
$ | 27,048 | $ | 28,924 | ||||||||||||||||||||
|
|
|
|
|||||||||||||||||||||
Interest rate spread |
2.66 | % | 2.83 | % | ||||||||||||||||||||
|
|
|
|
|||||||||||||||||||||
Net yield on interest earning assets |
2.90 | % | 3.02 | % | ||||||||||||||||||||
|
|
|
|
This information is preliminary and based on company data available at the time of the presentation.
-MORE-
HFBC Reports Fourth Quarter Results
Page 14
January 31, 2013
HOPFED BANCORP, INC.
Selected Financial Data
The table below adjusts tax-free investment income for the three month periods ended December 31, 2012, and December 31, 2011, by $274,000 and $249,000, respectively; for a tax equivalent rate using a cost of funds rate of 1.60% for the three month period ended December 31, 2012, and 2.00% for the three month period ended December 31, 2011. The table adjusts tax-free loan income by $1,000 for the three month period ended December 31, 2012 and $8,000 for the three month period ended December 31, 2011, for a tax equivalent rate using the same cost of funds rate:
Average Balance 12/31/2012 |
Income & Expense 12/31/2012 |
Average Rates 12/31/2012 |
Average Balance 12/31/2011 |
Income & Expense 12/31/2011 |
Average Rates 12/31/2011 |
|||||||||||||||||||
Loans |
$ | 532,847 | $ | 7,212 | 5.41 | % | $ | 560,987 | $ | 8,247 | 5.88 | % | ||||||||||||
Investments AFS taxable |
285,565 | 1,899 | 2.66 | % | 314,703 | 2,463 | 3.13 | % | ||||||||||||||||
Investments AFS tax free |
70,554 | 845 | 4.79 | % | 63,809 | 779 | 4.89 | % | ||||||||||||||||
Federal funds |
14,003 | 4 | 0.11 | % | 10,747 | 6 | 0.22 | % | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total interest earning assets |
902,969 | 9,960 | 4.41 | % | 950,246 | 11,495 | 4.84 | % | ||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||||||
Other assets |
79,807 | 97,842 | ||||||||||||||||||||||
|
|
|
|
|||||||||||||||||||||
Total assets |
$ | 982,776 | $ | 1,048,088 | ||||||||||||||||||||
|
|
|
|
|||||||||||||||||||||
Retail time deposits |
$ | 408,353 | 1,777 | 1.74 | % | $ | 463,586 | 2,421 | 2.09 | % | ||||||||||||||
Brokered deposits |
47,127 | 193 | 1.64 | % | 63,738 | 300 | 1.88 | % | ||||||||||||||||
Now accounts |
145,644 | 290 | 0.80 | % | 133,464 | 287 | 0.86 | % | ||||||||||||||||
MMDA and savings accounts |
76,335 | 32 | 0.17 | % | 71,250 | 21 | 0.12 | % | ||||||||||||||||
FHLB borrowings |
44,044 | 454 | 4.12 | % | 67,747 | 610 | 3.60 | % | ||||||||||||||||
Repurchase agreements |
40,758 | 242 | 2.37 | % | 40,550 | 241 | 2.38 | % | ||||||||||||||||
Subordinated debentures |
10,310 | 181 | 7.02 | % | 10,310 | 191 | 7.41 | % | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total interest bearing liabilities |
772,571 | 3,169 | 1.64 | % | 850,645 | 4,071 | 1.91 | % | ||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||||||
Non-interest bearing deposits |
88,783 | 75,169 | ||||||||||||||||||||||
Other non-interest bearing liabilities |
6,753 | 6,153 | ||||||||||||||||||||||
Stockholders equity |
114,669 | 116,121 | ||||||||||||||||||||||
|
|
|
|
|||||||||||||||||||||
Total liabilities and stockholders equity |
$ | 982,776 | $ | 1,048,088 | ||||||||||||||||||||
|
|
|
|
|||||||||||||||||||||
Net change in interest earning assets and interest bearing liabilities |
$ | 6,791 | $ | 7,424 | ||||||||||||||||||||
|
|
|
|
|||||||||||||||||||||
Interest rate spread |
2.77 | % | 2.93 | % | ||||||||||||||||||||
|
|
|
|
|||||||||||||||||||||
Net yield on interest earning assets |
3.01 | % | 3.13 | % | ||||||||||||||||||||
|
|
|
|
This information is preliminary and based on company data available at the time of the presentation.
-MORE-