HopFed Bancorp, Inc. Reports Second Quarter Results

HopFed Bancorp, Inc. (NASDAQ: HFBC) (the “Company”), the holding company for Heritage Bank USA, Inc. (the “Bank”), today reported results for the three and six month periods ended June 30, 2013. For the three month period ended June 30, 2013, the Company’s net income available to common shareholders was $1.2 million, or $0.16 per share, basic and diluted, compared to net income available to common shareholders of $903,000, or $0.12 per share basic and diluted, for the three month period ended June 30, 2012. For the six month period ended June 30, 2013, 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 income attributable to common shareholders of $1.4 million, or $0.18 per share basic and diluted, for the six month period ended June 30, 2012.

Commenting on the second quarter results, John E. Peck, President and Chief Executive Officer, said, “Operating results improved modestly during the three month period ended June 30, 2013, as compared to the three months period ended March 31, 2013, due to an increase in gains on the sales of securities, an increase in the amount of service charge income and an increase in the amount of financial services commissions. The Company continues to carefully control our non-interest expenses as our linked quarter operating expenses declined by $150,000 and total operating expenses for the six month period ended June 30, 2013, were $140,000 lower as compared to the six month period ended June 30, 2012.”

Mr. Peck continued, “The Company’s non-accrual loans increased during the three month period ended June 30, 2013, as we placed a $6.3 million non-residential real estate relationship in non-accrual status and charged off approximately $1.3 million of that relationship in June 2013. The increase in non-accrual loans reduced interest income on loans by approximately $140,000. The increase in non-accruals did not result in an increase in the necessary funding level of the allowance for loan loss account or result in a material increase in the Company’s level of adversely classified assets.”

Mr. Peck concluded, “The Company continues to improve its deposit mix by reducing the Company’s reliance on time deposit funding. At June 30, 2013, the Company’s linked quarter non-interest expense declined by $120,000. In the three month period ending September 30, 2013, the Company has more than $60.0 million in time deposits re-pricing at a weighted average cost of 1.71%. The potential to lower our interest on deposit expense is likely to be offset by lower yields on loans and investments.”

Financial Highlights
  • At June 30, 2013, the Company’s tangible book value was $13.05 per share and tangible common equity ratio was 10.31%. The reduction in book value at June 30, 2013, as compared to March 31, 2013, was the result of a lower level of unrealized gains on securities. The Bank’s Tier 1 Capital and Total Risk Based Capital Ratios at June 30, 2013, were 11.04% and 19.14%, respectively. The Company’s Tier 1 Capital and Total Risk Based Capital Ratios were 11.18% and 19.31%, respectively.
  • At June 30, 2013, the Company’s allowance for loan loss totaled $9.4 million, or 1.75% of total loans and 79.6% of non-accrual loans. In the six month period ended June 30, 2013, the Company’s net charge offs totaled $2.0 million, or an annualized rate of 0.77% of average loans.
  • For the three month period ended June 30, 2013, the Company’s net interest margin was 2.90%, as compared to 2.87% for the three month period ended June 30, 2012, and 2.99% for the three month period ended March 31, 2013. During the three month period ended June 30, 2013, net interest income was reduced by approximately $140,000 due to increases in non-accrual loans.

Asset Quality

At June 30, 2013, the Company’s level of non-accrual loans totaled $11.8 million, as compared to $7.7 million at December 31, 2012, and $7.1 million at March 31, 2013. The increase in non-accrual loans is largely the result of one non-residential real estate relationship of approximately $5.0 million being classified as non-accrual in June 2013.

A summary of non-accrual loans at June 30, 2013, and December 31, 2012, is as follows:

  June 30, 2013   December 31, 2012
(Dollars in Thousands)
 
One-to-four family mortgages 1,131 2,243
Home equity line of credit 21 66
Junior lien 37 4
Multi-family --- 38
Construction --- ---
Land 2,256 2,768
Non-residential real estate 7,054 1,134
Farmland 781 648
Consumer loans 354 145
Commercial loans 177 617
Total non-accrual loans 11,811 7,663

A summary of the level of classified loans at June 30, 2013, is as follows:
              Specific   Reserve
Impaired Loans Reserve for

June 30, 2013
Special       for Performing
Pass Mention Substandard   Doubtful Total Impairment Loans
(Dollars in Thousands)
One-to-four family mortgages 151,332 1,169 5,348 31 157,880 794 1,583
Home equity line of credit 35,017 --- 965 --- 35,982 146 243
Junior liens 3,361 45 506 --- 3,912 --- 63
Multi-family 27,870 --- 2,095 --- 29,965 --- 233
Construction 8,818 176 ---

 
--- 8,994 --- 67
Land 22,186 7,441 9,519 --- 39,146 1,305 415
Non-residential real estate 126,709 932 13,750 --- 141,391 1,145 1,892
Farmland 45,086 352 4,862 --- 50,300 --- 462
Consumer loans 12,418 --- 438 --- 12,856 --- 392
Commercial loans 53,890 435 2,930 --- 57,255 177 482
Total 486,687 10,550 40,413 31 537,681 3,567 5,832

At June 30, 2013, non-accrual loans plus other real estate owned totaled $13.4 million, or 1.42% of total assets, as compared to $9.2 million, or 0.95% of total assets, at December 31, 2012. A summary of the activity in other real estate owned for the six month period ended June 30, 2013, is as follows:
  Activity During 2013    
Balance         Reduction Gain (Loss) Balance
  12/31/2012 Foreclosures   Proceeds in Values on Sale 6/30/2013
(Dollars in Thousands)
 
One-to-four family mortgages $ 258 548 (349 ) --- (10 ) 447
Multi-family --- --- --- --- --- ---
Construction 130 --- (110 ) (110 ) 90 ---
Land 1,112 --- --- --- --- 1,112
Non-residential real estate 44 40 --- (11 ) --- 73
Consumer assets   4 5 (3 ) (4 ) (2 ) ---
 
Total $ 1,548 593 (462 ) (125 ) 78   1,632

At June 30, 2013, the Company’s level of loans classified as substandard and doubtful were $40.4 million and $31,000, respectively, as compared to $66.6 million and none, respectively, at December 31, 2012. At June 30, 2013, the Company’s classified loan to risk based capital ratio was 35.5%. The Company’s specific reserve for impaired loans was $3.6 million at June 30, 2013, and $3.8 million at December 31, 2012, respectively.

At June 30, 2013, the Company’s level of performing Troubled Debt Restructurings (“TDRs”) was $469,000, as compared to $11.0 million at December 31, 2012. A summary of the activity in loans classified as TDRs for the six month period ended June 30, 2013, is as follows:

         

Removed
 
Removed due to

from
Balance at New Loss or Payment or (Taken to) Balance at
  12/31/12 TDR Foreclosure Performance Non-accrual 6/30/13
(Dollars in Thousands)
One-to-four family mortgages $ 1,888 242 --- (1,863 ) --- 267
Home equity line of credit --- --- --- --- --- ---
Junior Lien 96 --- --- (10 ) (86 ) ---
Multi-family 234 --- --- (234 ) --- ---
Construction 4,112 --- --- --- (4,112 ) ---
Land 656 2,649 (393 ) (656 ) --- 2,256
Non-residential real estate 3,173 266 (864 ) (3,344 ) 4,112 3,343
Farmland 865 --- --- (865 ) --- ---
Consumer loans 5 --- --- (1 ) --- 4
Commercial loans   9 222 ---   (1 ) ---   230
 
Total performing TDR $ 11,038 3,379 (1,257 ) (6,974 ) (86 ) 6,100

A summary of TDRs and non-performing TDRs at June 30, 2013, and December 31, 2012, is stated below:
  June 30, 2013  

December 31, 2012
(Dollars in Thousands)
One-to-four family mortgages $ 267 1,888
Home equity line of credit --- ---
Junior lien --- 196
Multi-family --- 234
Construction --- 4,112
Land 2,256 3,424
Non-residential real estate 3,343 3,173
Farmland --- 909
Consumer loans 4 5
Commercial loans   230     128  
Total TDR   6,100     14,069  
Less:
TDR in non-accrual status
One-to-four family mortgages --- ---
Home equity line of credit --- ---
Junior lien --- (100 )
Multi-family --- ---
Construction --- ---
Land (2,256 ) (2,768 )
Non-residential real estate (3,248 ) (44 )
Consumer loans --- ---
Commercial loans   (127 )   (119 )
Total performing TDR $ 469   $ 11,038  

Net Interest Income

For the three month period ended June 30, 2013, the Company’s net interest income was $6.2 million, compared to $6.7 million for the three month period ended June 30, 2012, and $6.4 million for the three month period ended March 31, 2013. For the three month period ended June 30, 2013, the Company’s net interest margin was 2.90%, as compared to 2.87% for the three month period ended June 30, 2012, and 2.99% for the three month period ended March 31, 2013.

For the six month period ended June 30, 2013, the Company’s net interest income was $12.6 million, as compared to $13.5 million for the six month period ended June 30, 2012. For the six month period ended June 30, 2013, the Company’s net interest margin was 2.94%, as compared to 2.93% for the six month period ended June 30, 2012.

The declines in the Company’s net interest income and net interest margin are largely the result of declining average loan balances and investment securities. Furthermore, the yields on all classes of earning assets continue to decline as both short term and long term rates are near record low levels. The Company’s results for the three and six month periods ended June 30, 2013, were negatively impacted by a substantial increase in non-accrual loans.

Non-interest Income

Non-interest income for the three month period ended June 30, 2013, was $2.8 million, as compared to $2.6 million for the three month period ended June 30, 2012, and $2.5 million for the three month period ended March 31, 2013.Non-interest income for the six month periods ended June 30, 2013, and June 30, 2012, was $5.3 million and $4.6 million, respectively. The increase in non-interest income for the three month period ended June 30, 2013, as compared to the three month periods ended June 30, 2012, and March 31, 2013, was primarily the result of an increase in gains on the sale of securities.

The Company recognized net gains on the sale of securities of $789,000, $630,000, and $627,000 for the three month periods ended June 30, 2013, June 30, 2012, and March 31, 2013, respectively. The Company recognized net gains on the sales of securities of $1.4 million and $674,000, for the six month periods ended June 30, 2013, and June 30, 2012, respectively.

For the three and six month periods ended June 30, 2013, the Company’s revenue related to the origination of fixed rate mortgage loans was $212,000 and $412,000, respectively, as compared to $263,000 and $466,000 for the same periods in 2012. The Company earned $347,000 and $644,000 in commission from our financial services production during the three and six month periods ended June 30, 2013, as compared to $271,000 and $498,000, respectively, for the same periods in 2012.

Non-interest Expense

Non-interest expenses were $7.1 million, $7.4 million and $7.3 million for the three month periods ended June 30, 2013, June 30, 2012, and March 31, 2013, respectively. For the six months ended June 30, 2013, and June 30, 2012, non-interest expenses were $14.4 million and $14.5 million, respectively.

On a linked quarter basis, professional services expenses increased by $156,000. The increase in professional services expense was largely the result of the Company’s contested proxy vote. On a linked quarter basis, the Company has experienced a modest decline in most operating expense line items. For the three month period ended June 30, 2013, the Company’s salaries and benefits expense declined by $134,000 as compared to the previous quarter, and total operating expenses declined by $150,000, each as compared to the previous quarter.

Balance Sheet

At June 30, 2013, consolidated assets were $949.4 million, a decrease of $18.3 million as compared to December 31, 2012. The decline in assets is largely the result of a $29.0 million reduction in time deposits as the Company has chosen to allow selected high cost deposit funding to leave the Company. The Company has funded the outflow of deposits by the sale of securities.

For the six month period ended June 30, 2013, gross loans increased by approximately $2.1 million, to $537.7 million as compared to $535.6 million at December 31, 2012. In the Company’s market area, desirable lending opportunities remain limited at this time, making meaningful loan growth challenging.

The Company

Prior to June 5, 2013, HopFed Bancorp, Inc. was a federally chartered savings and loan holding company with Heritage Bank as its wholly owned thrift subsidiary. On June 5, 2013, Heritage Bank’s legal name was changed to Heritage Bank USA, Inc. and its charter was converted to a Kentucky state chartered commercial bank with the Kentucky Department of Financial Institutions and the Federal Deposit Insurance Corporation as its regulators. Also on June 5, 2013, HopFed Bancorp, Inc. became a non-member federally chartered commercial bank holding company regulated by the Federal Reserve Board. HopFed Bancorp, Inc. is the holding company for Heritage Bank USA, Inc. headquartered in Hopkinsville, Kentucky. The Bank has eighteen offices in western Kentucky and middle Tennessee in addition to its subsidiary, Fall & Fall Insurance of Fulton, Kentucky. The Company has two additional operating divisions including Heritage Wealth Management 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 that are originated for the secondary market in all communities in the Company’s general market area. The Bank offers a broad line of banking and financial products and services with the personalized focus of a community banking organization. More information about HopFed Bancorp and Heritage Bank USA, Inc. may be found on its website www.bankwithheritage.com.

Forward-Looking Information

Information contained in this press release, other than historical information, may be considered forward-looking in nature and is subject to various risk, uncertainties, and assumptions. Should one or more of these risks or uncertainties materialize, or should the underlying assumptions prove incorrect, actual results may vary materially from those anticipated, estimated or expected. Among the key factors that may have a direct bearing on the Company’s operating results, performance or financial condition are competition and the demand for the Company’s products and services, and other factors as set forth in filings with the Securities and Exchange Commission. The Company undertakes no duty to update any forward-looking statement to conform the statement to actual results or changes in the Company’s expectations. Certain tabular presentations may not reconcile because of rounding.

HOPFED BANCORP, INC.

Balance Sheet

(Dollars in thousands)
   

Assets
June 30, 2013 December 31, 2012
(unaudited)
 
Cash and due from banks $ 20,070 31,563
Interest-earning deposits   9,633 5,613
Cash and cash equivalents 29,703 37,176
Federal Home Loan Bank stock, at cost 4,428 4,428
Securities available for sale 338,936 356,345

Loans receivable, net of allowance for loan losses of $9,399 at June 30, 2013, and $10,648 at December 31, 2012
528,282 524,985
Accrued interest receivable 4,919 5,398
Real estate and other assets owned 1,632 1,548
Bank owned life insurance 9,486 9,323
Premises and equipment, net 21,853 22,557
Deferred tax assets 3,383 ---
Intangible asset 195 292
Other assets   6,578 5,637
Total assets $ 949,395 967,689
 

Liabilities and Stockholders' Equity
Liabilities:
Deposits:
Non-interest-bearing accounts $ 94,426 94,083
Interest-bearing accounts
Interest bearing checking accounts 154,444 147,047
Savings and money market accounts 85,735 81,643
Other time deposits   408,059 437,092
Total deposits 742,664 759,865
 
Advances from Federal Home Loan Bank 45,768 43,741
Repurchase agreements 47,072 43,508
Subordinated debentures 10,310 10,310
Advances from borrowers for taxes and insurance 697 396
Dividends payable 177 180
Deferred tax liability --- 568
Accrued expenses and other liabilities   4,634 4,122
Total liabilities   851,322 862,690

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

HOPFED BANCORP, INC.

Balance Sheet

(Dollars in thousands)
   
June 30, 2013 December 31, 2012
(unaudited)
 
Stockholders' equity

Preferred stock, par value $0.01 per share; authorized - 500,000 shares; 18,400 shares issued and no shares outstanding at June 30, 2013, and December 31, 2012.
--- ---

Common stock, par value $.01 per share; authorized

15,000,000 shares; 7,905,955 issued and 7,503,039 outstanding at June 30, 2013, and 7,905,728 issued and 7,502,812 outstanding at December 31, 2012
79 79
Common stock warrant --- 556
Additional paid-in-capital 76,634 76,288
Retained earnings 43,679 41,829

 

Treasury stock- preferred (at cost, 18,400 shares at June 30, 2013, and December 31, 2012)
(18,400 ) (18,400 )

Treasury stock- common (at cost, 402,916 shares at June 30, 2013, and December 31, 2012)
(5,076 ) (5,076 )
Accumulated other comprehensive income, net of taxes   1,157   9,723  
 
Total stockholders' equity   98,073   104,999  
 
Total liabilities and stockholders' equity $ 949,395   967,689  

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

HOPFED BANCORP, INC.

Selected Financial Data

(Dollars in thousands)
   
For the Three Month Periods For the Six Month Periods
Ended June 30,   Ended June 30,
   
2013 2012 2013 2012
Interest and dividend income:
Loans receivable 6,676 7,413 13,558 15,214
Investment in securities, taxable 1,764 2,434 3,596 4,809
Investment in securities, non-taxable 547 547 1,132 1,122
Interest-earning deposits 7 6 13 14
Total interest and dividend income 8,994 10,400 18,299 21,159
 
Interest expense:
Deposits 1,936 2,755 3,982 5,639
Advances from Federal Home Loan Bank 446 565 890 1,138
Repurchase agreements 230 237 472 485
Subordinated debentures 182 181 364 368
Total interest expense 2,794 3,738 5,708 7,630
 
Net interest income 6,200 6,662 12,591 13,529
Provision for loan losses 406 400 782 1,269
 
Net interest income after
provision for loan losses 5,794 6,262 11,809 12,260
 
Non-interest income:
Service charges 937 973 1,790 1,911
Merchant card income 259 212 482 408
Mortgage origination revenue 212 263 412 466
Gain on sale of securities 789 630 1,416 674
Income from bank owned life insurance 87 79 162 158
Financial services commission 347 271 644 498
Other operating income 197 211 405 441
Total non-interest income 2,828 2,639 5,311 4,556

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

HOPFED BANCORP, INC.

Selected Financial Data

(Dollars in thousands, except share and per share data)
 
For the Three Month Periods For the Six Month Periods
Ended June 30,   Ended June 30,
   
  2013   2012   2013   2012
Non-interest expenses:
Salaries and benefits 3,714 3,561 7,562 7,068
Occupancy expense 882 884 1,727 1,739
Data processing expense 646 627 1,296 1,252
State bank tax 147 162 289 324
Intangible amortization expense 48 65 97 130
Professional services expense 549 498 942 886
Deposit insurance and examination expense 179 434 411 853
Advertising expense 308 324 641 628
Postage and communications expense 139 157 278 298
Supplies expense 93 105 229 216
Loss on disposal of equipment --- 2 --- 8
Loss on sale of real estate owned 12 72 47 219
Real estate owned expenses 32 25 108 71
Other operating expenses   375   523   771   846
Total non-interest expense   7,124   7,439   14,398   14,538
 
Income before income tax expense 1,498 1,462 2,722 2,278
Income tax expense   332   300   572   389
 
Net income   1,166   1,162   2,150   1,889
Less:
Dividend on preferred shares --- 231 --- 460
Accretion dividend on preferred shares ---   28 ---   56
 
Net income available to common shareholders $ 1,166 $ 903 $ 2,150 $ 1,373
Net income available to common shareholders
Per share, basic $ 0.16 $ 0.12 $ 0.29 $ 0.18
Per share, diluted $ 0.16 $ 0.12 $ 0.29 $ 0.18
Dividend per share $ 0.02 $ 0.02 $ 0.04 $ 0.04
 
Weighted average shares outstanding - basic   7,488,906   7,485,283   7,488,788   7,484,498
Weighted average shares outstanding - diluted   7,488,906   7,485,283   7,488,788   7,484,498

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

HOPFED BANCORP, INC.

Selected Financial Data

(Dollars in thousands)
 
For the Three
Months Ended    
  Change from
6/30/2013 3/31/2013 Prior Quarter
 
Interest and dividend income:
Loans receivable 6,676 6,882 (206 )
Investment in securities, taxable 1,764 1,832 (68 )
Investment in securities, non-taxable 547 585 (38 )
Interest-earning deposits 7 6 1  
Total interest and dividend income 8,994 9,305 (311 )
 
Interest expense:
Deposits 1,936 2,046 (110 )
Advances from Federal Home Loan Bank 446 444 2
Repurchase agreements 230 242 (12 )
Subordinated debentures 182 182 ---  
Total interest expense 2,794 2,914 (120 )
 
Net interest income 6,200 6,391 (191 )
Provision for loan losses 406 376 30  
 

 

Net interest income after provision for loan losses
5,794 6,015 (221 )
 
Non-interest income:
Service charges 937 853 84
Merchant card income 259 223 36
Mortgage orgination revenue 212 200 12
Gain on sale of securities 789 627 162
Income from bank owned life insurance 87 75 12
Financial services commission 347 297 50
Other operating income 197 208 (11 )
 
Total non-interest income 2,828 2,483 345  

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

HOPFED BANCORP, INC.

Selected Financial Data

(Dollars in thousands, except share and per share data)
 
Months Ended  
Change from
  6/30/2013   3/31/2013 Prior Quarter
 
Non-interest expenses:
Salaries and benefits $ 3,714 3,848 (134 )
Occupancy expense 882 845 37
Data processing expense 646 650 (4 )
State bank tax 147 142 5
Intangible amortization expense 48 49 (1 )
Professional services expense 549 393 156
Deposit insurance and examination expense 179 232 (53 )
Advertising expense 308 333 (25 )
Postage and communications expense 139 139 ---
Supplies expense 93 136 (43 )
Loss on sale of real estate owned 12 35 (23 )
Real estate owned expenses 32 76 (44 )
Other operating expenses   375   396 (21 )
 
Total non-interest expense   7,124   7,274 (150 )
 
Income before income tax expense 1,498 1,224 274
Income tax expense   332   240 92  
 
Net income   1,166   984 182  
Net income available to common stockholders
Per share, basic $ 0.16 $ 0.13 0.03  
Per share, diluted $ 0.16 $ 0.13 0.03  
Dividend per share $ 0.02 $ 0.02
 
Weighted average shares outstanding - basic   7,488,906   7,488,445
Weighted average shares outstanding - diluted   7,488,906   7,488,445

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

HOPFED BANCORP, INC.

Selected Financial Data
 
The table below adjusts tax-free investment income for the six month periods ended June 30, 2013, and June 30, 2012, by $545,000 and $533,000, respectively; for a tax equivalent rate using a cost of funds rate of 1.50% for the six month period ended June 30, 2013, and 1.80% for the six month period ended June 30, 2012. The table adjusts tax-free loan income by $4,000 for six month period ended June 30, 2013, and $5,000 for the six month period ended June 30, 2012, for a tax equivalent rate using the same cost of funds rate:
  Average   Income and   Average     Average   Income and   Average
Balance Expense Rates Balance Expense Rates
  6/30/2013 6/30/2013   6/30/2013     6/30/2012 6/30/2012   6/30/2012  
(Table Amounts in Thousands, Except Percentages)
Loans $ 525,448 13,562 5.16 % $ 547,815 15,219 5.56 %
Investments AFS taxable 283,867 3,596 2.53 % $ 329,809 4,809 2.92 %
Investment AFS tax free 73,499 1,677 4.56 % $ 66,852 1,655 4.95 %
Interest earning deposits   9,672 13   0.27 % $ 14,762 14   0.19 %
 
Total interest earning assets 892,486 18,848   4.22 % 959,238 21,697   4.52 %
 
Other assets   79,201   89,115
 
Total assets $ 971,687 $ 1,048,353
 
Retail time deposits 378,326 2,877 1.52 % 451,622 4,459 1.97 %
Brokered deposits 46,390 362 1.56 % 54,265 510 1.88 %
Saving & MMDA 83,367 70 0.17 % 73,453 66 0.18 %
Now accounts 165,564 673 0.81 % 147,336 604 0.82 %
FHLB borrowings 43,586 890 4.08 % 62,537 1,138 3.64 %
Repurchase agreements 40,595 472 2.33 % 41,915 485 2.31 %
Subordinated debentures   10,310 364   7.06 %   10,310 368   7.14 %
 
Total interest bearing liabilities 768,138 5,708   1.49 % 841,438 7,630   1.81 %
 
Non-interest bearing deposits 93,857 82,153
Other liabilities 4,944 5,212
 
Stockholders' equity   104,748   119,550
 

Total liabilities and stockholders' equity
$ 971,687 $ 1,048,353
 
Net interest income 13,140   14,067  
 
Net interest spread 2.73 % 2.71 %
 
Net interest margin 2.94 % 2.93 %

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

HOPFED BANCORP, INC.

Selected Financial Data
 
The table below adjusts tax-free investment income for the three month periods ended June 30, 2013, and June 30, 2012, by $263,000 and $260,000, respectively; for a tax equivalent rate using a cost of funds rate of 1.50% for the three month period ended June 30, 2013, and 1.80% for the three month period ended June 30, 2012. The table adjusts tax-free loan income by $2,000 for three month period ended June 30, 2013, and $3,000 for the three month period ended June 30, 2012, for a tax equivalent rate using the same cost of funds rate:
  Average   Income and   Average     Average   Income and   Average
Balance Expense Rates Balance Expense Rates
  6/30/2013 6/30/2013   6/30/2013     6/30/2012 6/30/2012   6/30/2012  
(Table Amounts in Thousands, Except Percentages)
Loans $ 528,160 6,678 5.06 % $ 544,056 7,416 5.45 %
Investments AFS taxable 283,262 1,764 2.49 % 339,125 2,434 2.87 %
Investment AFS tax free 71,333 810 4.54 % 68,035 807 4.74 %
Interest earning deposits   9,465 7   0.30 %   13,632 6   0.18 %
 
Total interest earning assets 892,220 9,259   4.15 % 964,848 10,663   4.42 %
 
Other assets   73,757   79,426
 
Total assets $ 965,977 $ 1,044,274
 
Retail time deposits 371,908 1,378 1.48 % 445,784 2,186 1.96 %
Brokered deposits 45,688 178 1.56 % 51,185 226 1.77 %
Savings & MMDA 86,018 37 0.17 % 74,472 33 0.18 %
Now accounts 167,038 343 0.82 % 150,813 310 0.82 %
FHLB borrowings 43,612 446 4.09 % 62,105 565 3.64 %
Repurchase agreements 38,185 230 2.41 % 39,788 237 2.38 %
Subordinated debentures   10,310 182   7.06 %   10,310 181   7.02 %
 
Total interest bearing liabilities 762,759 2,794   1.47 % 834,457 3,738   1.79 %
 
Non-interest bearing deposits 93,616 83,803
Other liabilities 4,891 4,158
 
Stockholders' equity   104,711   121,856
 

 

Total liabilities and stockholders' equity
$ 965,977 $ 1,044,274
 
Net interest income 6,465   6,925  
 
Interest rate spread 2.68 % 2.63 %
 
Net interest margin 2.90 % 2.87 %

Copyright Business Wire 2010

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Three-Part FREE Webinar Series

March 24 Full-Day Course Offering: Professional Approach to Trading SPX

March 24 Full-Day Course Offering: Professional Approach to Trading SPX