3. HopFed Bancorp Shares of HopFed Bancorp ( HFBC) of Hopkinsville, Ky., closed at $6.15 Wednesday, down 31% year-to-date. The shares traded for just under 0.5 times their June 30 tangible book value of $12.58, according to SNL Financial. HopFed had $1.1 billion in total assets as of June 30, operating 11 Heritage Bank branches in Kentucky and seven branches in Tennessee. The company owes $18.4 million in TARP money and its tangible common equity ratio was 8.70% as of June 30, according to SNL. Second-quarter net income attributable to common shareholders was $550,000, or eight cents a share, declining from $1.8 million, or 45 cents a share, during the second quarter of 2010. The provision for loan losses declined to $452,000 in the second quarter, from $858,000 a year earlier. The year-over-year earnings decline reflected a sharp reduction in net interest income to $7 million and $268,000 in gains on the sale of real estate, in the year-earlier period. HopFed's nonperforming assets ratio was 2.10% as of June 30 according to SNL, improving from 2.22% a year earlier. The shares trade for 13 times the consensus 2012 earnings estimate of 51 cents a share among analysts polled by FactSet. Following the company's second-quarter earnings announcement in August, Hilliard Lyons analyst Ross Demmelere reiterated his "Buy" rating for HopFed, with a price target of $11, saying he expects the shares to move closer to his target, "as HFBC's fundamentals improve and a Memorandum of Understanding is lifted." Heritage Bank entered into the MOU with the Office of Thrift Supervision in August 2010, agreeing to limit its expansion. Two of the three analysts covering HopFed rate the shares a buy, while the remaining analyst has a neutral rating.