HopFed Bancorp, Inc. Reports Third 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 nine month periods ended September 30, 2013. For the three month period ended September 30, 2013, the Company’s net income available to common shareholders was $536,000, or $0.07 per share, basic and diluted, compared to net income available to common shareholders of $819,000, or $0.11 per share basic and diluted, for the three month period ended September 30, 2012. For the nine month period ended September 30, 2013, the Company’s net income available to common shareholders was $2.7 million, or $0.36 per share, basic and diluted, compared to a net income attributable to common shareholders of $2.2 million, or $0.29 per share basic and diluted, for the nine month period ended September 30, 2012.

Commenting on the third quarter results, John E. Peck, President and Chief Executive Officer, said, “The Company’s net interest income for the three month period ended September 30, 2013, improved compared to the three month periods ending June 30, 2013, and September 30, 2012. The improved levels of net interest income are the result of our ability to reduce our interest expense by $298,000 on a linked quarter basis. As compared to the three month period ended September 30, 2012, total interest expense declined by approximately $1.6 million in the three month period ended September 30, 2013.”

Mr. Peck continued, “The Company’s non-interest expenses for the three and nine month periods ending September 30, 2013, remain relatively unchanged as compared to the same periods in 2012. On a linked quarter basis, non-interest expenses declined $141,000 despite an increase in non-interest expense associated with the termination of a merger agreement. We continue to focus on operating as efficiently as possible while focusing our energies to grow our loan portfolio in a safe and prudent manner.”

Mr. Peck concluded, “We recently announced a stock purchase program of 375,000 shares as well as an increase in our quarterly dividend payments. These announcements reflect the confidence of the Board of Directors and Management in the future of the Company.”

Financial Highlights
  • At September 30, 2013, the Company’s tangible book value was $12.92 per share and tangible common equity ratio was 10.32%. The reduction in book value at September 30, 2013, as compared to December 31, 2012, 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 September 30, 2013, were 10.71% and 18.36%, respectively. The Company’s Tier 1 Capital and Total Risk Based Capital Ratios were 11.04% and 19.20%, respectively.
  • At September 30, 2013, the Company’s allowance for loan loss totaled $9.4 million, or 1.74% of total loans and 77.7% of non-accrual loans. In the nine month period ended September 30, 2013, the Company’s net charge offs totaled $2.4 million, or an annualized rate of 0.61% of average loans.
  • For the three month period ended September 30, 2013, the Company’s net interest margin was 3.04%, as compared to 2.67% for the three month period ended September 30, 2012, and 2.99% for the three month period ended June 30, 2013.

Asset Quality

At September 30, 2013, the Company’s level of non-accrual loans totaled $12.1 million, as compared to $7.7 million at December 31, 2012, and $11.8 million at June 30, 2013. A summary of non-accrual loans at September 30, 2013, and December 31, 2012, is as follows:
         

September 30, 2013

December 31, 2012
(Dollars in Thousands)
 
One-to-four family mortgages 865 2,243
Home equity line of credit 275 66
Junior lien 2 4
Multi-family --- 38
Construction --- ---
Land 2,257 2,768
Non-residential real estate 7,187 1,134
Farmland 744 648
Consumer loans 316 145
Commercial loans 482 617
Total non-accrual loans 12,128 7,663
 

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

September 30, 2013
Special         for Performing
Pass Mention Substandard Doubtful Total Impairment Loans
(Dollars in Thousands)
 
One-to-four family mortgages $ 151,028 1,423 5,406 --- 157,857 755 1,386
Home equity line of credit 34,195 --- 877 --- 35,072 66 218
Junior liens 3,163 44 369 --- 3,576 17 85
Multi-family 28,433 --- --- --- 28,433 --- 350
Construction 9,182 176 --- --- 9,358 --- 69
Land 19,523 1,789 16,209 --- 37,521 828 298
Non-residential real estate 135,008 2,183 14,304 --- 151,495 1,573 2,105
Farmland 45,275 807 4,826 --- 50,908 --- 439
Consumer loans 11,769 --- 540 --- 12,309 119 459
Commercial loans   52,089 96 2,746 --- 54,931 44 607
 
Total $ 489,665 6,518 45,277 --- 541,460 3,402 6,016
 

At September 30, 2013, non-accrual loans plus other real estate owned totaled $13.6 million, or 1.45% 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 nine month period ended September 30, 2013, is as follows:
     

Activity During 2013
   

Gain
   
Balance             Reduction

(Loss)
Balance
12/31/2012     Foreclosures     Proceeds     in Values     on Sale     9/30/2013
(Dollars in Thousands)
 
One-to-four family mortgages $ 258 758 (790 ) (8 ) 34 252
Multi-family --- --- --- --- --- ---
Construction 130 --- (110 ) (110 ) 90 ---
Land 1,112 --- --- --- --- 1,112
Non-residential real estate 44 40 (18 ) (11 ) 18 73
Consumer assets   4 7 (3 ) (4 ) (2 ) 2
 
Total $ 1,548 805 (921 ) (133 ) 140   1,439
 

At September 30, 2013, the Company’s level of loans classified as substandard was $45.3 million as compared to $66.6 million at December 31, 2012. At September 30, 2013, the Company’s classified loan to risk based capital ratio was 39.2%. The Company’s specific reserve for impaired loans was $3.4 million at September 30, 2013, and $3.8 million at December 31, 2012, respectively.

At September 30, 2013, the Company has no loans classified as Troubled Debt Restructurings (“TDRs”) as compared to $11.0 million at December 31, 2012. A summary of the activity in loans classified as TDRs for the nine month period ended September 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 9/30/13
(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 ) (2,575 ) ---
Farmland 865 --- --- (865 ) --- ---
Consumer loans 5 --- --- (5 ) --- ---
Commercial loans   9 222 ---   (231 ) ---   ---
 
Total performing TDR $ 11,038 3,379 (1,257 ) (3,864 ) (9,296 ) ---
 

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

(Dollars in Thousands)
One-to-four family mortgages --- 1,888
Home equity line of credit --- ---
Junior lien --- 196
Multi-family --- 234
Construction --- 4,112
Land --- 3,424
Non-residential real estate --- 3,173
Farmland --- 909
Consumer loans --- 5
Commercial loans ---   128  
Total TDR ---   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 --- (2,768 )
Non-residential real estate --- (44 )
Consumer loans --- ---
Commercial loans ---   (119 )
Total performing TDR --- $ 11,038  
 

Net Interest Income

For the three month period ended September 30, 2013, the Company’s net interest income was $6.3 million, compared to $5.9 million for the three month period ended September 30, 2012, and $6.2 million for the three month period ended June 30, 2013. For the three month period ended September 30, 2013, the Company’s net interest margin was 3.04%, as compared to 2.67% for the three month period ended September 30, 2012, and 2.90% for the three month period ended June 30, 2013.

For the nine month period ended September 30, 2013, the Company’s net interest income was $18.9 million, as compared to $19.4 million for the nine month period ended September 30, 2012. For the nine month period ended September 30, 2013, the Company’s net interest margin was 2.98%, as compared to 2.84% for the nine month period ended September 30, 2012.

The increase in the Company’s net interest income and net interest margin are largely the result of significant balances of time deposits that matured in the second and third quarters of 2013. The Company anticipates that the full benefit of the deposit maturities will be realized in the fourth quarter of 2013. The Company does not anticipate that it can make material reductions in its deposit structure for the next few quarters as the weighted average cost of upcoming maturities are generally below 1.00%.

Non-interest Income

Non-interest income for the three month period ended September 30, 2013, was $1.8 million, as compared to $2.9 million for the three month period ended September 30, 2012, and $2.8 million for the three month period ended June 30, 2013. Non-interest income for the nine month periods ended September 30, 2013, and September 30, 2012, was $7.1 million and $7.5 million, respectively.

The decline in non-interest income for the three month period ended September 30, 2013, as compared to the three month periods ended September 30, 2012, and June 30, 2013, was primarily the result of a $400,000 other than temporary impairment on the trust preferred security in the Company’s investment portfolio and a reduced amount of gains on the sale of securities. In June 2008, the Company purchased a $2.0 million private placement trust preferred security issued by First Financial Services Corporation (“FFKY”) of Elizabethtown, Kentucky. The security has a thirty year maturity and is scheduled to pay an 8% annualized dividend quarterly. In October 2010, the Company was informed that, pursuant to the trust preferred agreement, FFKY would defer future dividends due to asset quality and capital issues at FFKY.

The Company has continually reviewed all quarterly regulatory filings to determine the future viability of FFKY. Despite asset quality improvements at FFKY, we have determined that it is unlikely that FFKY will be able to resume dividend payments prior to the five year deferral period (set to expire in October 2015) provided for in the trust preferred agreement. Therefore, we have determined that the Company’s investment in FFKY is permanently impaired and should be written down accordingly. At September 30, 2013, the Company reduced the value of its FFKY investment by $400,000, or 20%, through an expense other than temporary impairment charge.

The Company recognized net gains on the sale of securities of $201,000, $944,000, and $789,000 for the three month periods ended September 30, 2013, September 30, 2012, and June 30, 2013, respectively. The Company recognized net gains on the sales of securities of $1.6 million, for the nine month periods ended September 30, 2013, and September 30, 2012, respectively.

For the three and nine month periods ended September 30, 2013, the Company’s revenue related to the origination of fixed rate mortgage loans was $147,000 and $559,000, respectively, as compared to $218,000 and $684,000 for the same periods in 2012. The recent increase in the long term interest rates has negatively affected the demand for secondary market mortgage loans, reducing our income in the three month period ended September 30, 2013. The Company earned $314,000 and $958,000 in commission from our financial services production during the three and nine month periods ended September 30, 2013, as compared to $280,000 and $778,000, respectively, for the same periods in 2012. The Company’s wealth management employees report increased interest in non-FDIC insured products as interest rates remain low and the United States equity markets continue to improve.

Non-interest Expense

Non-interest expenses were $7.0 million, $7.0 million and $7.1 million for the three month periods ended September 30, 2013, September 30, 2012, and June 30, 2013, respectively. For the nine months ended September 30, 2013, and September 30, 2012, non-interest expenses were $21.4 million and $21.5 million, respectively.

On a linked quarter basis, professional services expenses declined by $56,000 despite the Company incurring charges in excess of $150,000 related to the previously announced termination of a merger agreement with Sumner Bank and Trust. On a linked quarter basis, the Company has experienced a modest decline in most operating expense line items.

Balance Sheet

At September 30, 2013, consolidated assets were $935.5 million, a decrease of $32.1 million as compared to December 31, 2012. The decline in assets is largely the result of a $54.1 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 nine month period ended September 30, 2013, gross loans increased by approximately $5.8 million, to $541.4 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, 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.

Consolidated Balance Sheets

(Dollars in thousands)
 
 

Assets
      September 30, 2013     December 31, 2012
(unaudited)
 
Cash and due from banks $ 24,566 31,563
Interest-earning deposits   3,777 5,613
Cash and cash equivalents 28,343 37,176
Federal Home Loan Bank stock, at cost 4,428 4,428
Securities available for sale 322,776 356,345

Loans receivable, net of allowance for loan losses of $9,418 at September 30, 2013, and $10,648 at December 31, 2012
532,013 524,985
Accrued interest receivable 5,042 5,398
Real estate and other assets owned 1,439 1,548
Bank owned life insurance 9,574 9,323
Premises and equipment, net 21,707 22,557
Deferred tax assets 4,033 ---
Intangible asset 162 292
Other assets   5,936 5,637
Total assets $ 935,453 967,689
 

Liabilities and Stockholders' Equity
Liabilities:
Deposits:
Non-interest-bearing accounts $ 98,437 94,083
Interest-bearing accounts
NOW accounts 155,655 147,047
Savings and money market accounts 89,869 81,643
Other time deposits   382,976 437,092
Total deposits 726,937 759,865
 
Advances from Federal Home Loan Bank 47,276 43,741
Repurchase agreements 48,182 43,508
Subordinated debentures 10,310 10,310

Advances from borrowers for taxes and insurance
822 396
Dividends payable 326 180
Deferred tax liability --- 568
Accrued expenses and other liabilities   4,882 4,122
Total liabilities   838,735 862,690
 

This information is preliminary and based on company data available at the time of the presentation.
 
HOPFED BANCORP, INC.
Consolidated Balance Sheets, Continued
(Dollars in thousands)
 
 
      September 30, 2013     December 31, 2012
(unaudited)
 
Stockholders' equity

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

Common stock, par value $.01 per share; authorized 15,000,000 shares; 7,927,287 issued and 7,574,267 outstanding at September 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 58,262 76,288
Retained earnings 43,916 41,829

Treasury stock- preferred (at cost, none at September 30, 2013, and 18,400 shares at December 31, 2012)
--- (18,400 )

Treasury stock- common (at cost, 453,020 shares at September 30, 2013, and 402,916 shares at December 31, 2012)
(5,635 ) (5,076 )
Accumulated other comprehensive income, net of taxes   96   9,723  
 
Total stockholders' equity   96,718   104,999  
 
Total liabilities and stockholders' equity $ 935,453   967,689  
 

This information is preliminary and based on company data available at the time of the presentation.
 
HOPFED BANCORP, INC.
Consolidated Condensed Statements of Income
(Dollars in thousands)
Unaudited
 
 
      For the Three Month Periods     For the Nine Month Periods
Ended September 30, Ended September 30,
       
2013 2012 2013 2012
Interest and dividend income:
Loans receivable 6,605 7,403 20,163 22,617
Investment in securities, taxable 1,641 2,014 5,237 6,823
Nontaxable securities available for sale 544 573 1,676 1,695
Interest-earning deposits 5   6 18   20
Total interest and dividend income 8,795   9,996 27,094   31,155
 
Interest expense:
Deposits 1,622 2,640 5,604 8,279
Advances from Federal Home Loan Bank 445 1,017 1,335 2,155
Repurchase agreements 245 236 717 721
Subordinated debentures 184   185 548   553
Total interest expense 2,496   4,078 8,204   11,708
 
Net interest income 6,299   5,918 18,890   19,447
Provision for loan losses 426   506 1,208   1,775
 

Net interest income after provision for loan losses
5,873 5,412 17,682 17,672
 
Non-interest income:
Service charges 949 963 2,739 2,874
Merchant card income 245 212 727 620
Mortgage origination revenue 147 218 559 684
Gain on sale of securities 201 944 1,617 1,618
Other than temporary impairment (400 ) --- (400 ) ---
Income from bank owned life insurance 88 80 250 238
Financial services commission 314 280 958 778
Other operating income 225   200 630   641
Total non-interest income 1,769   2,897 7,080   7,453
 

This information is preliminary and based on company data available at the time of the presentation.
 
HOPFED BANCORP, INC.
Consolidated Condensed Statements of Income, Continued
(Dollars in thousands, except share and per share data)
(Unaudited)
 
 
      For the Three Month Periods     For the Nine Month Periods
Ended September 30, Ended September 30,
       
2013 2012 2013 2012
Non-interest expenses:
Salaries and benefits 3,735 3,447 11,297 10,515
Occupancy 878 875 2,605 2,614
Data processing 652 610 1,948 1,863
State bank tax 143 161 432 485
Intangible amortization 33 48 130 178
Professional services 493 435 1,435 1,320
Deposit insurance and examination 137 419 548 1,272
Advertising expense 292 324 933 952
Postage and communications 149 146 427 444
Supplies expense 159 64 388 280
Loss on disposal of equipment --- 5 --- 13
(Gain) loss on real estate owned (54 ) 68 (7 ) 287
Real estate owned expenses 78 19 186 90
Other operating   289     350   1,060     1,196
Total non-interest expense   6,984     6,971   21,382     21,509
 
Income before income tax expense 658 1,338 3,380 3,616
Income tax expense   122     263   694     652
 
Net income   536     1,075   2,686     2,964
Less:
Dividend on preferred shares --- 229 --- 689
Accretion dividend on preferred shares ---   27 ---   83
 
Net income available to common shareholders $ 536   $ 819 $ 2,686   $ 2,192
Net income available to common shareholders
Per share, basic $ 0.07   $ 0.11 $ 0.36   $ 0.29
Per share, diluted $ 0.07   $ 0.11 $ 0.36   $ 0.29
Dividend per share $ 0.04   $ 0.02 $ 0.08   $ 0.06
 
Weighted average shares outstanding - basic   7,483,582     7,487,283   7,483,606     7,485,571
Weighted average shares outstanding - diluted   7,483,582     7,485,283   7,483,606     7,485,571
 

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
9/30/2013 6/30/2013 Prior Quarter
 
Interest and dividend income:
Loans receivable 6,605 6,676 (71 )
Investment in securities, taxable 1,641 1,764 (123 )
Nontaxable securities available for sale 544 547 (3 )
Interest-earning deposits 5   7 (2 )
Total interest and dividend income 8,795   8,994 (199 )
 
Interest expense:
Deposits 1,622 1,936 (314 )
Advances from Federal Home Loan Bank 445 446 (1 )
Repurchase agreements 245 230 15
Subordinated debentures 184   182 2  
Total interest expense 2,496   2,794 (298 )
 
Net interest income 6,299   6,200 99  
Provision for loan losses 426   406 20  
 

Net interest income after provision for loan losses
5,873 5,794 79
 
Non-interest income:
Service charges 949 937 12
Merchant card income 245 259 (14 )
Mortgage origination revenue 147 212 (65 )
Gain on sale of securities 201 789 (588 )
Other than temporary impairment (400 ) --- (400 )
Income from bank owned life insurance 88 87 1
Financial services commission 314 347 (33 )
Other operating income 225   197 28  
 
Total non-interest income 1,769   2,828 (1,059 )
 

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    
Months Ended  
    Change from
9/30/2013 6/30/2013 Prior Quarter
 
Non-interest expenses:
Salaries and benefits $ 3,735 3,714 21
Occupancy expense 878 882 (4 )
Data processing expense 652 646 6
State deposit tax 143 147 (4 )
Intangible amortization expense 33 48 (15 )
Professional services expense 493 549 (56 )
Deposit insurance and examination expense 137 179 (42 )
Advertising expense 292 308 (16 )
Postage and communications expense 149 139 10
Supplies expense 159 93 66
(Gain) Loss on sale of real estate owned (54 ) 12 (66 )
Real estate owned expenses 78 32 46
Other operating expenses   289     375 (86 )
  -86
Total non-interest expense   6,984     7,038 (140 )
 
Income before income tax expense 658 1,584 (926 )
Income tax expense   122     332 (210 )
 
Net income   536     1,252 (716 )

Net income (loss) available (attributable) to common stockholders
Per share, basic $ 0.07   $ 0.16 (0.09 )
Per share, diluted $ 0.07   $ 0.16 (0.09 )
Dividend per share $ 0.02   $ 0.02
 
Weighted average shares outstanding - basic   7,483,582     7,488,906
Weighted average shares outstanding - diluted   7,483,582     7,488,906
 

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 nine month periods ended September 30, 2013, and September 30, 2012, by $811,000 and $798,000, respectively; for a tax equivalent rate using a cost of funds rate of 1.40% for the nine month period ended September 30, 2013, and 1.80% for the nine month period ended September 30, 2012. The table adjusts tax-free loan income by $6,000 for nine month period ended September 30, 2013, and $7,000 for the nine month period ended September 30, 2012, for a tax equivalent rate using the same cost of funds rate:
                           

Income
Average Income and Average Average

and
Average
Balance Expense Rates Balance Expense Rates
9/30/2013 9/30/2013 9/30/2013 9/30/2012 9/30/2012 9/30/2012
(Dollars in Thousands, Except Percentages)
 
Loans $ 527,054 $ 20,169 5.10 % $ 545,464 $ 22,624 5.53 %
Investments AFS taxable 275,934 5,237 2.53 % 322,091 6,823 2.82 %
Investment AFS tax free 71,269 2,488 4.66 % 67,714 2,493 4.91 %
Interest bearing deposits   8,851   18   0.27 %   14,918   20   0.18 %
Total interest earning assets 883,108   27,912   4.21 % 950,187   31,960   4.48 %
 
Other assets   79,779   87,878
 
Total assets $ 962,887 $ 1,038,065
 
Retail time deposits $ 370,917 4,018 1.44 % $ 444,553 6,538 1.96 %
Brokered deposits 44,002 525 1.59 % 52,558 754 1.91 %
Now accounts 163,493 952 0.78 % 145,015 888 0.82 %
MMDA and savings accounts 84,823 109 0.17 % 73,983 99 0.18 %
FHLB borrowings 43,602 1,335 4.08 % 61,336 2,155 4.68 %
Repurchase agreements 41,556 717 2.30 % 40,968 721 2.35 %
Subordinated debentures   10,310   548   7.09 %   10,310   553   7.15 %
 
Total interest bearing liabilities 758,703   8,204   1.44 % 828,723   11,708   1.88 %
 
Non-interest bearing deposits 94,695 82,800
Other liabilities 4,361 5,717
 
Stockholders’ equity   105,128   120,825
 
 

Total liabilities and stockholders’ equity
$ 962,887 $ 1,038,065
 
Net interest income $ 19,708   $ 20,252  
 
 
Interest rate spread 2.77 % 2.60 %
Net interest margin   2.98 %   2.84 %
 

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 September 30, 2013, and September 30, 2012, by $264,000 and $273,000, respectively; for a tax equivalent rate using a cost of funds rate of 1.35% for the three month period ended September 30, 2013, and 2.00% for the three month period ended September 30, 2012. The table adjusts tax-free loan income by $2,000 for three month periods ended September 30, 2013, and September 30, 2012, respectively, for a tax equivalent rate using the same cost of funds rate:
                           
Average Income & Average Average Income & Average
Balance Expense Rates Balance Expense Rates
9/30/2013 9/30/2013 9/30/2013 9/30/2012 9/30/2012 9/30/2012
(Dollars in Thousands, Except Percentages)
 
Loans $ 530,086 $ 6,607 4.99 % $ 540,811 $ 7,405 5.48 %
Investments AFS taxable 260,326 1,641 2.52 % 308,578 2,014 2.61 %
Investment AFS tax free 66,882 808 4.83 % 69,420 846 4.87 %
Fed Funds   7,237   5   0.28 %   10,555   6   0.23 %
 
Total interest earning assets 864,531   9,061   4.19 % 929,364   10,271   4.42 %
 
Other assets   75,930   87,537
 
Total assets $ 940,461 $ 1,016,901
 
Retail time deposits $ 352,291 1,141 1.30 % $ 430,568 2,064 1.92 %
Brokered deposits 43,353 163 1.50 % 49,181 258 2.10 %
Now accounts 159,419 279 0.70 % 140,424 285 0.81 %
MMDA and savings accounts 87,687 39 0.18 % 75,031 33 0.18 %
FHLB borrowings 43,634 445 4.08 % 58,962 1,017 6.90 %
Repurchase agreements 43,448 245 2.26 % 39,093 236 2.41 %
Subordinated debentures   10,310   184   7.14 %   10,310 185 7.18 %
 
Total interest bearing liabilities 740,142   2,496   1.35 % 803,569   4,078   2.03 %
 
Non-interest bearing deposits 96,343 84,079
Other liabilities 5,013 6,284
 
Stockholders' equity   98,963   122,969
 

Total liabilities and stockholders' equity
$ 940,461 $ 1,016,901
 
Net interest income $ 6,565   $ 6,193  
Interest rate spread 2.84 % 2.39 %
Net yield on interest earning assets   3.04 %   2.67 %
 

Copyright Business Wire 2010