EX-99.1 2 d462213dex991.htm EX-99.1 EX-99.1

Exhibit 99.1

NEWS

 

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

HOPFED BANCORP, INC. REPORTS GROWTH IN NET INCOME

AND LOANS FOR THIRD QUARTER

 

 

Net Income Up 93.4% Year-over-Year to $3.5 Million

 

 

Net Loans Increase 7.6% Year-over-Year to $630.2 Million

 

 

HOPKINSVILLE, Ky. (October 25, 2017) – HopFed Bancorp, Inc. (NASDAQ: HFBC) (the “Company”), the holding company for Heritage Bank USA, Inc. (the “Bank”), today reported growth in net income and loans for the three and nine month periods ended September 30, 2017. For the three month period ended September 30, 2017, net income rose 42.4% to $1.4 million, or $0.22 per share, compared to $985,000, or $0.16 per share, for the three month period ended September 30, 2016. For the nine month period ended September 30, 2017, net income rose 93.4% to $3.5 million, or $0.56 per share, compared to $1.8 million, or $0.29 per share, for the nine month period ended September 30, 2016.

Commenting on the third quarter results, John E. Peck, President and Chief Executive Officer, said, “At September 30, 2017, loans rose 7.6% to $630.2 million and deposits were up 2.7% to $731.2 million compared to September 30, 2016. HopFed’s positive trend of earnings growth continues into the third quarter of 2017 as a result of the growth in the average balance of loans and careful management of non-interest expenses. We are confident that our continued success in providing quality service and value to our communities will translate into improved financial performance.”

Financial Highlights

 

  •   Loans receivable rose 7.6% to $630.2 million at September 30, 2017, compared to $586.3 million at September 30, 2016. Loan growth benefited from solid production from the Company’s loan production office in Nashville, Tennessee. At September 30, 2017, total loans originated and outstanding in the Nashville loan production office were $63.2 million compared to $39.5 million at September 30, 2016.

 

  •   The Company continues to experience a reduction in the level of non-accrual and problem loans. Non-accrual loans declined from $11.7 million, or 1.99% of total loans, at September 30, 2016, to $1.7 million, or 0.28% of total loans, at September 30, 2017. Loans classified as impaired were $31.9 million at September 30, 2016 and $11.2 million at September 30, 2017.

 

  •   The Company continued to repurchase its common stock as part of the Board approved stock repurchase program. For the nine month period ended September 30, 2017, the Company purchased 41,321 shares of its common stock at a weighted average price of $14.14 per share. At September 30, 2017, the Company held 1,287,457 shares in treasury stock with a weighted average cost of $12.37 per share. The Company may purchase an additional 51,229 additional shares of treasury stock under its current repurchase program.

 

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HFBC Reports Third Quarter Results

Page 2

October 25, 2017

 

Results of Operations

In the three and nine month periods ended September 30, 2017, net interest income was $7.1 million and $20.8 million, respectively, as compared to $6.7 million and $19.8 million for the three and nine month periods ended September 30, 2016. The improved level of net interest income is the result of the growth in the average balances of loans. For the three month period ended September 30, 2017, the average balance of net loans outstanding was $637.0 million, an increase of $61.9 million compared to the three month period ended September 30, 2016. For the nine month period ended September 30, 2017, the average balance of net loans outstanding was $626.1 million, an increase of $63.3 million as compared to the nine month period ended September 30, 2017. During the three and nine month periods ended September 30, 2017, total interest earning assets have increased by $39.1 million and $34.5 million, respectively. The Company has utilized cash on hand and the cash flow provided by our securities portfolio to fund a meaningful portion of our loan growth.

The improvement in net interest income for the three and nine months ended September 30, 2017 is partially offset by the higher cost of interest bearing liabilities. The total cost of all interest bearing liabilities for the three and nine month periods ended September 30, 2017 is 0.89% and 0.85%, respectively, compared to 0.80% for the three and nine month periods ended September 30, 2016. For the three and nine month periods ended September 30, 2017, the Company’s net interest margin was 3.43% and 3.37%, respectively, compared to 3.41% and 3.36% for the three and nine month periods ended September 30, 2016, respectively.

In the three and nine month periods ended September 30, 2017, the Company has experienced a reduction of both consumer and municipal checking account balances. At September 30, 2017 and December 31, 2016, total non-interest bearing checking account balances were $128.2 million and $136.3 million, representing a decline of $8.1 million. At September 30, 2017 and December 31, 2016, total interest bearing checking account balances were $196.3 million and $209.3 million, representing a decline of $13.0 million. For the nine month period ended September 30, 2017, short term interest rates have increased. Coupled with the competitive nature of select local markets, the Company anticipates continued increases in the cost of funding our loan growth.

For the nine month periods ended September 30, 2017 and September 30, 2016, the Company’s non-interest income was $6.2 million and $5.9 million, respectively. The improved levels of non-interest income is partially attributable to changes made to the Company’s checking account offerings in December of 2016. In the nine month period ended September 30, 2017, the Company has increased fee income on deposit accounts by $329,000 compared to the nine month period ended September 30, 2016. The new checking account product offerings reduces, but does not eliminate, the number of checking accounts not subject to a monthly fee. However, the Company’s new deposit product offerings added several valuable features for customers such as roadside assistance, cell phone insurance and discounts at many local businesses. For the nine month period ended September 30, 2017, other operating income was $877,000, an increase of $309,000 compared to the nine month period ended September 30, 2016. The increase in other operating income was largely due to a one-time payment from a vendor of $225,000.

For the three and nine month periods ended September 30, 2017, total non-interest expenses were $7.2 million and $22.1 million, respectively compared to $7.4 million and $22.6 million for the three and nine month periods ended September 30, 2016, respectively. In the three and nine month periods ended September 30, 2017, the Company’s net foreclosure expenses have declined by $229,000 and $384,000, respectively, compared to the three and nine month periods ended September 30, 2016. For the three and nine month periods ended September 30, 2017, the Company’s salaries and benefits expense was $3.9 million and $12.1 million, respectively. This represents an increase of $162,000 and $486,000, respectively, compared to the three and nine month periods ended September 30, 2016. The Company’s cost of providing health insurance benefits to employees increased by $86,000 and $267,000 in the three and nine month periods ended September 30, 2017 compared to the three and six month periods ended September 30, 2016.

 

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HFBC Reports Third Quarter Results

Page 3

October 25, 2017

 

Balance Sheet

At September 30, 2017, total assets were $904.1 million, compared to $891.5 million at December 31, 2016 and $871.9 million at September 30, 2016. Management continues to strive to growth both sides of the Company’s balance sheet at approximately the same pace to maximize our interest rate margin and profitability. The Company’s loan growth has been focused on commercial and residential real estate. The Company continues to utilize the cash from the investment portfolio to supplement liquidity for loan growth. The Company is managing deposit growth to limit the increased cost necessary to attract new deposits while seeking to grow our deposit base at a rate commensurate with our loan demand. In the nine month period ended September 30, 2017, deposit growth has been dependent on time deposit and brokered deposits due to the decline in balances held in both interest bearing and non-interest bearing checking accounts. A summary of loans outstanding by type at September 30, 2017, December 31, 2016 and September 30, 2016 is as follows:

 

     9/30/2017      12/31/2016      9/30/2016  
     (Dollars in Thousands)  

One-to-four family first mortgages

    $ 167,088        147,962        145,197  

Home equity lines of credit

      34,995        35,684        34,563  

Junior liens

      1,402        1,452        1,601  

Multi-family

      37,321        34,284        32,418  

Construction

      25,594        39,255        37,775  

Land

      14,289        23,840        22,999  

Farmland

      37,262        47,796        46,877  

Non-residential real estate

      216,056        182,940        170,759  

Consumer

      8,060        8,717        8,908  

Commercial

      88,515        88,907        83,684  
  

 

 

     

 

 

     

 

 

  

Total loans, gross

      630,582        610,837        586,328  
  

 

 

     

 

 

     

 

 

  

Deferred loan cost, net of fees

      (380 )       (439 )       (453 ) 

Allowance for loan loss

      (4,799 )       (6,122 )       (6,812 ) 
  

 

 

     

 

 

     

 

 

  

Total loans, net

      625,403        604,276        579,063  
  

 

 

     

 

 

     

 

 

  

 

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HFBC Reports Third Quarter Results

Page 4

October 25, 2017

 

Asset Quality

In the three month period ended September 30, 2017, the Company foreclosed on its largest problem loan, a $6.7 million lending relationship that included a residential property, two small developed commercial lots and a 67 acre tract of undeveloped land. In September 2017, the Company recognized a $2.6 million charge-off and has listed these properties for sale. For the nine month period ended September 30, 2017, the Company’s net charge-offs totaled $1.7 million for an annualized net charge off ratio of 0.37%.

As a result of improved financial performance of several borrowers and the foreclosure of our largest non-accrual loan, the Company’s non-accrual loans fell to $1.7 million, or 0.28% of total loans at September 30, 2017 compared to $11.7 million, or 1.99% of total loans, at September 30, 2016 and $9.1 million, or 1.49% of total loans, at December 31, 2016. The Company’s level of impaired loans declined from $31.9 million at September 30, 2016 to $11.2 million at September 30, 2017. The table below provides a history of the Company’s significant credit quality metrics:

 

     9/30/2017     6/30/2017     3/31/2017     12/31/2016     9/30/2016  
     (Dollars in Thousands, Except Percentages)  

Loans past due 30-89 days

      754       2,910       746       1,211       586  

Loans past due 90 + days accruing interest

      —         —         —         —         —    

Total non-accrual loans

      1,739       8,579       8,944       9,074       11,664  

Total loans classified as substandard

      11,217       24,808       26,345       29,339       31,927  

Troubled debt restructuring—performing

      3,371       3,388       4,237       6,461       6,503  

Total foreclosed assets

      4,975       1,408       2,111       2,397       741  

Quarterly net charge offs

      2,451       (956 )      238       765       (33 ) 

Non-accrual loans / Total loans

      0.28 %      1.34 %      1.44 %      1.49 %      1.99 % 

Non-performing assets / Total assets

      0.74 %      1.09 %      1.20 %      1.29 %      1.42 % 

Allowance for loan loss / Total loans

      0.76 %      1.12 %      0.99 %      1.00 %      1.16 % 

Allowance for loan loss / Non-accrual loans

      275.96 %      83.69 %      68.92 %      67.36 %      58.40 % 

Classified loans / Risk based capital

      11.10 %      24.28 %      26.15 %      29.66 %      31.99 % 

The Company

HopFed Bancorp, Inc. is the holding company for Heritage Bank USA, Inc. (“Heritage Bank”), a Kentucky state chartered commercial bank. Heritage Bank has eighteen offices in western Kentucky and middle Tennessee and loan production offices in Nashville, Tennessee and Brentwood, Tennessee. The Company offers a broad line of financial services and products with the personalized focus of a community banking organization. More information about HopFed Bancorp and Heritage Bank is located 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 risks, 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 Third Quarter Results

Page 5

October 25, 2017

 

HOPFED BANCORP, INC.

Consolidated Condensed Balance Sheets

(Dollars in Thousands)

 

     09/30/17     06/30/17     03/31/17     12/31/16     09/30/16  
     (unaudited)     (unaudited)     (unaudited)           (unaudited)  
Assets           

Cash and due from banks

    $ 23,469       20,208       30,663       21,779       24,741  

Interest-earning deposits in banks

      9,842       4,801       19,408       3,970       4,695  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Cash and cash equivalents

      33,311       25,009       50,071       25,749       29,436  

Federal Home Loan Bank stock, at cost

      4,428       4,428       4,428       4,428       4,428  

Securities available for sale

      192,287       205,363       207,580       209,480       213,289  

Loans held for sale

      1,749       2,386       1,091       1,094       1,547  

Loans receivable

      630,202       638,422       621,644       610,398       585,875  

Allowance for loan losses

      (4,799 )      (7,180 )      (6,164 )      (6,112 )      (6,812 ) 

Accrued interest receivable

      3,414       3,332       3,121       3,799       3,603  

Foreclosed assets

      4,975       1,408       2,111       2,397       741  

Bank owned life insurance

      10,287       10,192       10,120       10,662       10,581  

Premises and equipment, net

      22,945       23,097       23,225       23,461       23,579  

Deferred tax assets

      2,292       3,025       2,918       3,052       2,144  

Other assets

      2,973       2,645       3,162       3,078       3,495  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total assets

    $ 904,064       912,127       923,307       891,486       871,906  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  
Liabilities:           

Deposits:

           

Non-interest-bearing accounts

    $ 128,184       132,305       136,333       131,145       130,327  

Interest-bearing accounts

           

NOW accounts

      196,315       216,256       217,562       209,347       182,360  

Savings and money market accounts

      97,929       98,270       100,009       99,312       98,929  

Other time deposits

      308,801       299,113       311,839       293,078       300,701  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total deposits

      731,229       745,944       765,743       732,882       712,317  

Advances from Federal Home Loan Bank

      31,000       21,000       11,000       11,000       11,000  

Repurchase agreements

      37,829       41,820       45,492       47,655       44,465  

Subordinated debentures

      10,310       10,310       10,310       10,310       10,310  

Accrued expenses and other liabilities

      4,461       4,262       3,301       3,211       4,952  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total liabilities

      814,829       823,336       835,846       805,058       783,044  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

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 6

October 25, 2017

HOPFED BANCORP, INC.

Consolidated Condensed Balance Sheets, Continued

(Dollars in Thousands)

 

     09/30/17     06/30/17     03/31/17     12/31/16     09/30/16  
     (unaudited)     (unaudited)     (unaudited)           (unaudited)  

Stockholders’ equity:

           

Common stock, par value $.01

      80       80       80       80       80  

Additional paid-in-capital

      58,777       58,750       58,705       58,660       58,658  

Retained earnings

      51,646       50,552       49,721       49,035       48,176  

Treasury stock- common , at cost

      (15,931 )      (15,361 )      (15,356 )      (15,347 )      (15,279 ) 

Unearned ESOP Shares, at cost

      (6,125 )      (6,269 )      (6,414 )      (6,548 )      (6,756 ) 

Accumulated other comprehensive income, net of taxes

      788       1,039       725       548       3,983  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total stockholders’ equity

      89,235       88,791       87,461       86,428       88,862  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total liabilities and stockholders’ equity

    $ 904,064       912,127       923,307       891,486       871,906  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Additional Capital Information

 

     09/30/17     06/30/17     03/31/17     12/31/16     9/30/2016  
     (unaudited)     (unaudited)     (unaudited)           (unaudited)  

Preferred stock authorized

      500,000       500,000       500,000       500,000       500,000  

Preferred stock outstanding

      —         —         —         —         —    

Common shares authorized

      15,000,000       15,000,000       15,000,000       15,000,000       15,000,000  

Common shares issued

      7,976,131       7,964,076       7,963,378       7,963,378       7,963,378  

Common shares outstanding

      6,688,674       6,716,809       6,716,549       6,717,242       6,723,243  

Treasury shares

      1,287,457       1,247,267       1,246,829       1,246,136       1,240,135  

Unearned ESOP shares

      466,115       476,862       488,161       498,346       514,187  

Book value per share (excludes unearned ESOP shares)

    $ 14.34     $ 14.23     $ 14.04     $ 13.90     $ 14.31  

Tier 1 leverage ratio

      10.9 %      10.4 %      10.6 %      10.8 %      10.9 % 

Total risk based capital ratio

      16.3 %      16.1 %      16.1 %      16.2 %      16.9 % 

Common equity tier 1 capital ratio

      15.6 %      15.0 %      15.1 %      15.2 %      15.8 % 

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 7

October 25, 2017

 

HOPFED BANCORP, INC.

Consolidated Condensed Quarterly Statements of Income

(Dollars in Thousands)

(Unaudited)

 

     For the three month periods ended      For the Nine Month
Periods
Ended September 30,		  
     09/30/17      09/30/16      06/30/17      03/31/17      12/31/16      2017      2016  

Interest and dividend income:

                     

Loans receivable

      7,260        6,569        6,963        6,736        6,603        20,959        19,175  

Investment in securities, taxable

      1,124        1,099        1,155        1,118        1,051        3,397        3,544  

Nontaxable securities available for sale

      233        326        280        283        289        796        1,019  

Interest-earning deposits

      18        10        21        23        8        62        38  
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total interest and dividend income

      8,635        8,004        8,419        8,160        7,951        25,214        23,776  
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Interest expense:

                     

Deposits

      1,206        1,044        1,197        1,167        1,094        3,570        3,146  

Advances from Federal Home Loan Bank

      89        33        30        32        29        151        134  

Repurchase agreements

      130        139        119        103        87        352        421  

Subordinated debentures

      112        99        108        104        101        324        287  
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total interest expense

      1,537        1,315        1,454        1,406        1,311        4,397        3,988  
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Net interest income

      7,098        6,689        6,965        6,754        6,640        20,817        19,788  

Provision for loan losses

      71        255        59        291        63        421        1,178  
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Net interest income after provision for loan losses

      7,027        6,434        6,906        6,463        6,577        20,396        18,610  
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Non-interest income:

                     

Service charges

      819        719        800        804        694        2,423        2,094  

Merchant card income

      299        308        315        302        311        916        913  

Mortgage origination revenue

      335        415        278        334        367        947        1,218  

Gain on sale of securities

      162        79        14        2        190        178        422  

Income from bank owned life insurance

      95        104        72        235        78        402        265  

Financial services commission

      134        131        145        140        159        419        455  

Other operating income

      186        189        212        479        201        877        568  
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total non-interest income

      2,030        1,945        1,836        2,296        2,000        6,162        5,935  
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

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

 

-MORE-

HFBC Reports Third Quarter Results

Page 8

October 25, 2017

HOPFED BANCORP, INC.

Consolidated Condensed Statements of Income, Continued

(Dollars in Thousands, Except Per Share Data)

(Unaudited)

 

     For the three month periods ended     For the Nine Month
Periods Ended
September 30,		  
     9/30/2017     9/30/2016     6/30/2017      3/31/2017      12/31/2016     2017      2016  

Non-interest expenses:

                  

Salaries and benefits

      3,919       3,757       3,977        4,236        3,754       12,132        11,646  

Occupancy

      716       810       729        775        775       2,220        2,398  

Data processing

      795       744       546        764        767       2,105        2,175  

State deposit tax

      169       248       200        231        247       600        743  

Professional services

      409       368       464        348        396       1,221        1,008  

Advertising

      240       376       368        381        334       989        1,067  

Foreclosure, net

      (25 )      204       6        108        (51 )      89        473  

(Gain) loss on sale of asset

      —         (72 )      3        —          —         3        (72 ) 

Other operating expenses

      945       918       940        846        989       2,731        3,207  
  

 

 

    

 

 

    

 

 

     

 

 

     

 

 

    

 

 

     

 

 

  

Total non-interest expense

      7,168       7,353       7,233        7,689        7,211       22,090        22,645  
              

 

 

     

 

 

  

Income before income tax expense

      1,889       1,026       1,509        1,070        1,366       4,468        1,900  

Income tax expense

      486       41       368        135        260       989        102  
  

 

 

    

 

 

    

 

 

     

 

 

     

 

 

    

 

 

     

 

 

  

Net income

      1,403       985       1,141        935        1,106       3,479        1,798  
  

 

 

    

 

 

    

 

 

     

 

 

     

 

 

    

 

 

     

 

 

  

Net income per share

                  

Basic

    $ 0.22     $ 0.16     $ 0.18      $ 0.15      $ 0.18     $ 0.56      $ 0.29  
  

 

 

    

 

 

    

 

 

     

 

 

     

 

 

    

 

 

     

 

 

  

Diluted

    $ 0.22     $ 0.16     $ 0.18      $ 0.15      $ 0.18     $ 0.56      $ 0.29  
  

 

 

    

 

 

    

 

 

     

 

 

     

 

 

    

 

 

     

 

 

  

Dividend per share

    $ 0.05     $ 0.04     $ 0.05      $ 0.04      $ 0.04     $ 0.14      $ 0.12  
  

 

 

    

 

 

    

 

 

     

 

 

     

 

 

    

 

 

     

 

 

  

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

 

-MORE-

HFBC Reports Third Quarter Results

Page 9

October 25, 2017

 

HOPFED BANCORP, INC.

Selected Financial Data

(Dollars in Thousands, Except Percentages)

(Unaudited)

 

     Three month periods ended     Nine months ended  
     9/30/2017     6/30/2017     3/31/2017     12/31/2016     9/30/2016     9/30/2017     9/30/2016  

Average Balance Sheet Data

               

Loans, net of allowance

      636,955       622,606       615,382       589,282       575,083       626,123       562,870  

Available for sale taxable securities

      173,624       177,260       176,824       179,483       185,812       175,891       194,657  

Available for sale tax free securities

      29,090       32,919       33,868       35,102       38,467       31,941       40,283  

Other interest bearing deposits

      4,351       5,888       9,260       5,915       5,517       6,490       8,168  

Average earning assets

      844,020       838,673       835,334       809,782       804,879       840,445       805,978  

Average non-earning assets

      64,913       70,359       75,527       70,443       69,248       69,001       74,212  

Average assets

      908,933       909,032       908,861       880,225       874,127       909,446       880,190  

Average interest bearing deposits

      612,655       628,583       625,104       596,763       585,212       622,068       595,889  

Total average deposits

      738,694       756,661       751,913       725,213       710,810       749,041       720,677  

Repurchase agreements

      37,978       39,138       41,840       41,717       46,282       39,638       44,186  

FHLB borrowings

      26,909       11,176       13,433       11,000       14,022       17,222       12,876  

Subordinated debentures

      10,310       10,310       10,310       10,310       10,310       10,310       10,310  

Total average interest bearing liabilities

      687,852       689,207       690,687       659,790       655,826       689,238       663,261  

Average non-interest bearing deposits

      126,039       128,078       126,809       128,450       125,598       126,973       124,788  

Average other non-interest bearing liabilities

      5,628       3,915       3,993       3,557       3,781       5,374       3,501  

Average total equity

      89,214       87,832       87,372       88,428       88,922       87,861       88,640  
     Three month periods ended     Nine months ended  
Tax equivalent yield / Cost of:    9/30/2017     6/30/2017     3/31/2017     12/31/2016     9/30/2016     9/30/2017     9/30/2016  

Loans, fully tax equivalent

      4.57 %      4.48 %      4.38 %      4.49 %      4.57 %      4.47 %      4.55 % 

Available for sale taxable securities

      2.59 %      2.61 %      2.53 %      2.34 %      2.37 %      2.58 %      2.43 % 

Available for sale tax free securities, fully tax equivalent

      4.78 %      5.09 %      5.00 %      4.93 %      5.07 %      4.97 %      5.05 % 

Average yield on other interest bearing deposits

      1.65 %      1.43 %      0.99 %      0.54 %      0.73 %      1.27 %      0.62 % 

Yield on total interest earning assets

      4.15 %      4.09 %      3.98 %      4.00 %      4.06 %      4.07 %      4.02 % 

Cost of total average deposits

      0.65 %      0.63 %      0.62 %      0.60 %      0.59 %      0.64 %      0.58 % 

Cost of average total interest bearing liabilities

      0.89 %      0.84 %      0.81 %      0.79 %      0.80 %      0.85 %      0.80 % 

Fully tax equivalent interest rate spread

      3.26 %      3.25 %      3.17 %      3.21 %      3.26 %      3.22 %      3.22 % 

Fully tax equivalent net interest margin

      3.43 %      3.39 %      3.31 %      3.35 %      3.41 %      3.37 %      3.36 % 

Annualized return on average assets

      0.62 %      0.50 %      0.41 %      0.50 %      0.45 %      0.51 %      0.27 % 

Annualized return on average equity

      6.29 %      5.20 %      4.28 %      5.00 %      4.43 %      5.28 %      2.70 % 

Fully tax equivalent efficiency ratio

      77.41 %      80.80 %      83.58 %      82.05 %      83.54 %      80.58 %      86.27 % 

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

 

-END-