HopFed Bancorp, Inc. Reports Fourth 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 twelve month periods ended December 31, 2013. For the three month period ended December 31, 2013, the Company’s net income available to common shareholders was $1.1 million, or $0.14 per share, basic and diluted, compared to net income available to common shareholders of $648,000, or $0.09 per share basic and diluted, for the three month period ended December 31, 2012. For the twelve month period ended December 31, 2013, the Company’s net income available to common shareholders was $3.8 million, or $0.50 per share, basic and diluted, compared to a net income attributable to common shareholders of $2.8 million, or $0.38 per share basic and diluted, for the twelve month period ended December 31, 2012.

Commenting on the fourth quarter results, John E. Peck, President and Chief Executive Officer, said, “The Company’s net interest income for the three month period ended December 31, 2013, increased by $87,000 as compared to the three month period ended September 30, 2013. The linked quarter improvement is the result of a decline of $119,000 in total interest expense. In the three month period ended December 31, 2013, total interest expense declined by approximately $792,000 as compared to the same period last year.”

Mr. Peck continued, “The Company’s non-interest expenses for the twelve month period ending December 31, 2013, increased by less than 1.00% as compared to the twelve month period ended December 31, 2012. For the three month period ended December 31, 2013, non-interest expenses were $7.3 million, an increase of $324,000, as compared to the three month period ended December 31, 2012. The increase in non-interest expense for the three month period ended December 31, 2013, as compared to the three month period ended December 31, 2012, was largely the result of $100,000 in legal expenses associated with the termination of a merger agreement, a $183,000 increase in expenses incurred on other real estate owned and a $168,000 increase in losses incurred on the sale of other real estate owned.”

Mr. Peck concluded, “Net loans grew by $11.6 million in the fourth quarter of 2013, much of that growth occurring very late in the quarter. We continue to aggressively seek quality loan growth and are currently looking to establish at least one loan production office in the Nashville, Tennessee market.”

Financial Highlights
  • At December 31, 2013, the Company’s tangible book value was $12.83 per share and tangible common equity ratio was 9.82%. The Bank’s Tier 1 Capital and Total Risk Based Capital Ratios at December 31, 2013, were 10.76% and 17.81%, respectively. The Company’s Tier 1 Capital and Total Risk Based Capital Ratios were 11.23% and 18.61%, respectively.
  • The Company purchased 26,364 shares of its common stock in the quarter at a weighted average price of $11.15 per share. The Company has purchased a total of 76,468 shares since September 16, 2013.
  • At December 31, 2013, the Company’s allowance for loan loss totaled $8.7 million, or 1.57% of total loans and 86.25% of non-accrual loans. In the twelve month period ended December 31, 2013, the Company’s net charge offs totaled $3.6 million, or an annualized rate of 0.66% of average loans.
  • For the three month period ended December 31, 2013, the Company’s net interest margin was 3.10%, as compared to 3.04% for the three month period ended September 30, 2013, and 3.01% for the three month period ended December 31, 2012.

Asset Quality

At December 31, 2013, the Company’s level of non-accrual loans totaled $10.1 million, as compared to $7.7 million at December 31, 2012, and $12.1 million at September 30, 2013. A summary of non-accrual loans at December 31, 2013, and December 31, 2012, is as follows:
         
December 31, 2013 December 31, 2012
(Dollars in Thousands)
 
One-to-four family mortgages 946 2,243
Home equity line of credit 1 66
Junior lien 2 4
Multi-family --- 38
Construction 174 ---
Land 1,218 2,768
Non-residential real estate 6,546 1,134
Farmland 703 648
Consumer loans 13 145
Commercial loans 463 617
Total non-accrual loans 10,066 7,663
 

A summary of the level of classified loans at December 31, 2013, is as follows:
                         
Specific Allowance
Impaired Loans Allowance for
December 31, 2013 Special         for Performing
Pass Mention Substandard Doubtful Total Impairment Loans
(Dollars in Thousands)
One-to-four family mortgages $ 149,351 814 5,087 --- 155,252 597 1,451
Home equity line of credit 33,462 --- 641 --- 34,103 --- 218
Junior liens 3,126 43 79 --- 3,248 --- 39
Multi-family 29,736 --- --- --- 29,736 --- 466
Construction 10,443 --- 175 --- 10,618 --- 88
Land 19,899 52 14,730 --- 34,681 771 534
Non-residential real estate 143,044 515 14,133 --- 157,692 465 2,254
Farmland 46,042 480 5,346 --- 51,868 --- 510
Consumer loans 10,711 --- 440 --- 11,151 96 445
Commercial loans   61,502 526 2,013 --- 64,041 --- 748
 
Total $ 507,316 2,430 42,644 --- 552,390 1,929 6,753
 

At December 31, 2013, non-accrual loans plus other real estate owned totaled $11.7 million, or 1.21% of assets, as compared to $13.6 million, or 1.45% of total assets, at September 30, 2013 and $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 twelve month period ended December 31, 2013, is as follows:
   

Activity During 2013
Balance             Reduction     Gain (Loss)     Balance
12/31/12     Foreclosures     Proceeds     in Values     on Sale     12/31/13
(Dollars in Thousands)
One-to-four family Mortgages $258 1,052 (938 ) (26 ) 4 350
Multi-family --- --- --- --- --- ---
Construction 130 --- (110 ) (110 ) 90 ---
Land 1,112 80 --- (68 ) --- 1,124
Non-residential real estate 44 240 (60 ) (11 ) (13 ) 200
Consumer assets 4 7 (5 ) (4 ) (2 ) ---
 
Total $1,548 1,379 (1,113 ) (219 ) 79   1,674
 

At December 31, 2013, the Company’s level of loans classified as substandard was $42.6 million as compared to $66.6 million at December 31, 2012. At December 31, 2013, the Company’s classified loan to risk based capital ratio was 37.1%. The Company’s specific reserve for impaired loans was $1.9 million at December 31, 2013, and $3.8 million at December 31, 2012, respectively.

At December 31, 2013, the Company has no loans classified as performing 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 twelve month period ended December 31, 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 12/31/13
(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 December 31, 2013, and December 31, 2012, is stated below:
   
December 31, 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 December 31, 2013, the Company’s net interest income was $6.4 million, compared to $6.5 million for the three month period ended December 31, 2012, and $6.3 million for the three month period ended September 30, 2013. For the three month period ended September 30, 2013, the Company’s net interest margin was 3.10%, as compared to 3.01% for the three month period ended December 31, 2012, and 3.04% for the three month period ended September 30, 2013.

For the twelve month period ended December 31, 2013, the Company’s net interest income was $25.3 million, as compared to $26.0 million for the twelve month period ended December 31, 2012. For the twelve month period ended December 31, 2013, the Company’s net interest margin was 3.01%, as compared to 2.86% for the twelve month period ended December 31, 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 does not anticipate that it can make material reductions in its deposit pricing 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 December 31, 2013, was $2.3 million, as compared to $2.2 million for the three month period ended December 31, 2012, and $1.8 million for the three month period ended September 30, 2013. Non-interest income for the twelve month periods ended December 31, 2013, and December 31, 2012, was $9.4 million and $9.6 million, respectively.

The increase in non-interest income for the three month period ended December 31, 2013, as compared to the three month periods ended December 31, 2012, and September 30, 2013, was primarily the result of a $412,000 gain on the sale of the Company’s insurance assets of Fall and Fall Insurance.

For the three month period ended December 31, 2013, the Company’s income on the origination of mortgage loans was $75,000, a decline from the $272,000 of income earned during the three month period ended December 31, 2012, and $147,000 of income for the three month period ended September 30, 2013. For the twelve month period ended December 31, 2013, mortgage origination revenue was $634,000, as compared to $956,000 for the twelve month period ended December 31, 2012. The decline in mortgage origination income was largely the result of higher long term interest rates, reducing the secondary market refinancing activity.

The Company recognized net gains on the sale of securities of $44,000, $53,000, and $201,000 for the three month periods ended December 31, 2013, December 31, 2012, and September 30, 2013, respectively. The Company recognized net gains on the sales of securities of $1.7 million, for the twelve month periods ended December 31, 2013, and December 31, 2012, respectively.

The Company earned $1.25 million and $1.1 million in commission from our financial services production during the twelve month periods ended December 31, 2013, and December 31, 2012, respectively. 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 $7.1 million, $6.9 million and $7.0 million for the three month periods ended December 31, 2013, December 31, 2012, and September 30, 2013, respectively. For the twelve months ended December 31, 2013, and December 31, 2012, non-interest expenses were $28.5 million and $28.4 million, respectively. The table below identifies changes of non-interest expenses of more than 5% for the periods December 31, 2013, as compared to December 31, 2012:
       
Dollar Percent
Change Change
(In thousands)
 
Salaries and benefits $754 5.39%
Data processing $201 8.06%
State bank tax ($66) -10.20%
Intangible amortization ($65) -28.63%
Professional services $168 10.47%
Deposit insurance and examination ($812) -52.76%
Advertising expense ($121) -8.92%
Supplies expense $140 39.44%
Loss on disposal of equipment ($1) -7.69%
Gain (loss) on real estate owned ($126) -47.37%
Real estate owned expenses $279 226.83%
Other operating expenses ($103) -5.91%
 

On a linked quarter basis, the Company’s non-interest expenses increased by $272,000. The most significant increases in operating expenses related to losses on real estate owned and expenses related to those assets for a combined increase of $339,000. On a linked quarter basis, salaries and benefits expense declined by $299,000, and professional services expenses declined by $155,000, respectively. Income tax expense was negative for the quarter due to end of year tax adjustments related to investment related tax credits.

Balance Sheet

At December 31, 2013, consolidated assets were $973.6 million, an increase of $5.9 million as compared to December 31, 2012, and an increase of $38.1 million as compared to September 30, 2013. Balance sheet growth was largely concentrated in a $36.7 million increase in now accounts and $9.3 million increase in customer repurchase accounts. The increase in these balances was largely the result of customer based agricultural and small business activity occurring in the last month of the year and are considered temporary increases to the balance sheet. This temporary activity necessitated an increase in cash balances, as the Company held $55.9 million in cash at December 31, 2013, as compared to $37.2 million at December 31, 2012.

For the twelve month period ended December 31, 2013, gross loans increased by approximately $16.7 million, to $552.3 million as compared to $535.6 million at December 31, 2012. Loan growth included more than $10.9 million in loan growth during the three month period ended December 31, 2013.

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. 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
December 31, 2013 December 31, 2012
(unaudited)
 
Cash and due from banks $37,229 31,563
Interest-earning deposits 18,619 5,613
Cash and cash equivalents 55,848 37,176
Federal Home Loan Bank stock, at cost 4,428 4,428
Securities available for sale 318,910 356,345

Loans receivable, net of allowance for loan losses of $8,682 at December 31, 2013, and $10,648 at December 31, 2012
543,632 524,985
Accrued interest receivable 5,233 5,398
Real estate and other assets owned 1,674 1,548
Bank owned life insurance 9,677 9,323
Premises and equipment, net 22,526 22,557
Deferred tax assets 4,610 ---
Intangible asset 130 292
Other assets 6,981 5,637
Total assets $973,649 967,689
 
 

Liabilities and Stockholders' Equity
Liabilities:
Deposits:
Non-interest-bearing accounts $105,252 94,083
Interest-bearing accounts
NOW accounts 183,643 147,047
Savings and money market accounts 92,106 81,643
Other time deposits 381,996 437,092
Total deposits 762,997 759,865
 
Advances from Federal Home Loan Bank 46,780 43,741
Repurchase agreements 52,759 43,508
Subordinated debentures 10,310 10,310
Advances from borrowers for taxes and insurance 522 396
Dividends payable 325 180
Deferred tax liability --- 568
Accrued expenses and other liabilities 4,239 4,122
Total liabilities 877,932 862,690
 

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)
 
December 31, 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 December 31, 2013, and December 31, 2012.
--- ---

Common stock, par value $.01 per share; authorized 15,000,000 shares; 7,927,287 issued and 7,447,903 outstanding at December 31, 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 58,302 76,288
Retained earnings-substantially restricted 44,694 41,829

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

Treasury stock- common (at cost, 479,384 shares at December 31, 2013, and 402,916 shares at December 31, 2012)
(5,929) (5,076)
Accumulated other comprehensive income, net of taxes (1,429) 9,723
 
Total stockholders' equity 95,717 104,999
 
Total liabilities and stockholders' equity $973,649 967,689
 

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 Twelve Month Periods
Ended December 31, Ended December 31,
   
2013 2012 2013 2012
Interest and dividend income:
Loans receivable 6,578 7,211 26,741 29,828
Investment in securities, taxable 1,636 1,899 6,873 8,722
Nontaxable securities available for sale 543 571 2,219 2,266
Interest-earning deposits 6 4 24 24
Total interest and dividend income 8,763 9,685 35,857 40,840
 
Interest expense:
Deposits 1,510 2,292 7,114 10,571
Advances from Federal Home Loan Bank 445 454 1,780 2,609
Repurchase agreements 237 242 954 963
Subordinated debentures 185 181 733 734
Total interest expense 2,377 3,169 10,581 14,877
 
Net interest income 6,386 6,516 25,276 25,963
Provision for loan losses 396 500 1,604 2,275
 

Net interest income after provision for loan losses
5,990 6,016 23,672 23,688
 
Non-interest income:
Service charges 931 966 3,670 3,840
Merchant card income 256 222 983 842
Mortgage origination revenue 75 272 634 956
Gain on sale of securities 44 53 1,661 1,671
Other than temporary impairment --- (400) ---
Income from bank owned life insurance 103 161 353 399
Financial services commission 292 293 1,250 1,071
Gain on sale of assets 412 --- 412 ---
Other operating income 179 219 809 860
Total non-interest income 2,292 2,186 9,372 9,639
 

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 Twelve Month Periods
Ended December 31,

Ended December 31,
   
2013 2012 2013 2012
Non-interest expenses:
Salaries and benefits 3,436 3,464 14,733 13,979
Occupancy 870 917 3,475 3,531
Data processing 747 631 2,695 2,494
State bank tax 149 162 581 647
Intangible amortization 32 49 162 227
Professional services 338 285 1,773 1,605
Deposit insurance and examination 179 267 727 1,539
Advertising expense 303 405 1,236 1,357
Postage and communications 140 118 567 562
Supplies expense 107 75 495 355
Loss on disposal of equipment 12 --- 12 13
Gain (loss) on real estate owned 147 (21) 140 266
Real estate owned expenses 216 33 402 123
Other operating expenses 580 547 1,640 1,743
Total non-interest expense 7,256 6,932 28,638 28,441
 
Income before income tax expense 1,026 1,270 4,406 4,886
Income tax expense (50) 165 644 817
 
Net income 1,076 1,105 3,762 4,069
Less:
Dividend on preferred shares --- 318 --- 1,007
Accretion dividend on preferred shares --- 139 --- 222
 
Net income available to common shareholders $1,076 $648 $3,762 $2,840
Net income available to common shareholders
Per share, basic $0.14 $0.09 $0.50 $0.38
Per share, diluted $0.14 $0.09 $0.50 $0.38
Dividend per share $0.04 $0.02 $0.12 $0.08
 
Weighted average shares outstanding - basic 7,430,970 7,487,726 7,463,003 7,486,445
Weighted average shares outstanding - diluted 7,430,970 7,487,726 7,463,003 7,486,445
 

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
12/31/2013 9/30/2013

Prior Quarter
 
Interest and dividend income:
Loans receivable 6,578 6,605 (27)
Investment in securities, taxable 1,636 1,641 (5)
Nontaxable securities available for sale 543 544 (1)
Interest-earning deposits 6 5 1
Total interest and dividend income 8,763 8,795 (32)
 
Interest expense:
Deposits 1,510 1,622 (112)
Advances from Federal Home Loan Bank 445 445 ---
Repurchase agreements 237 245 (8)
Subordinated debentures 185 184 1
Total interest expense 2,377 2,496 (119)
 
Net interest income 6,386 6,299 87
Provision for loan losses 396 426 (30)
 

Net interest income after provision for loan losses
5,990 5,873 117
 
Non-interest income:
Service charges 931 949 (18)
Merchant card income 256 245 11
Mortgage orgination revenue 75 147 (72)
Gain on sale of securities 44 201 (157)
Other than temporary impairment --- (400) 400
Income from bank owned life insurance 103 88 15
Financial services commission 292 314 (22)
Other operating income 591 225 366
 
Total non-interest income 2,292 1,769 523
 

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
12/31/2013 9/30/2013 Prior Quarter
 
Non-interest expenses:
Salaries and benefits $3,436 3,735 (299)
Occupancy expense 870 878 (8)
Data processing expense 747 652 95
State deposit tax 149 143 6
Intangible amortization expense 32 33 (1)
Professional services expense 338 493 (155)
Deposit insurance and examination expense 179 137 42
Advertising expense 303 292 11
Postage and communications expense 140 149 (9)
Supplies expense 107 159 (52)
Loss on sale of other assets 12 --- 12
(Gain) Loss on sale of real estate owned 147 (54) 201
Real estate owned expenses 216 78 138
Other operating expenses 580 289 291
 
Total non-interest expense 7,256 6,984 272
 
Income before income tax expense 1,026 658 368
Income tax expense (50) 122 (172)
 
Net income 1,076 536 540

Net income (loss) available (attributable) to common stockholders
Per share, basic $0.14 $0.07 0.07
Per share, diluted $0.14 $0.07 0.07
Dividend per share $0.04 $0.04
 

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 twelve month periods ended December 31, 2013, and December 31, 2012, by $1,073,000 and $716,000, respectively; for a tax equivalent rate using a cost of funds rate of 1.40% for the twelve month period ended December 31, 2013, and 1.80% for the twelve month period ended December 31, 2012. The table adjusts tax-free loan income by $9,000 for twelve month periods ended December 31, 2013, and December 31, 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
12/31/2013 12/31/2013 12/31/2013 12/31/2012 12/31/2012 12/31/2012
 
Loans $528,074 $26,750 5.07% $542,292 $29,837 5.50%
Investments AFS taxable 269,304 6,873 2.55% 313,347 8,722 2.78%
Investments AFS tax free 70,178 3,292 4.69% 68,428 2,982 4.36%
Federal funds 9,060 24 0.26% 9,850 24 0.24%
 
Total interest earning assets 876,616 36,939 4.21% 933,917 41,565 4.45%
 
Other assets 80,609 85,560
 
Total assets $957,225 $1,019,477
 
 
 
Retail time deposits $362,651 5,046 1.39% $435,454 8,316 1.91%
Brokered deposits 44,349 673 1.52% 51,193 946 1.85%
Now accounts 164,669 1,243 0.75% 145,173 1,180 0.81%
MMDA and savings accounts 86,226 152 0.18% 74,574 129 0.17%
FHLB borrowings 44,898 1,780 3.96% 56,990 2,609 4.58%
Repurchase agreements 41,615 954 2.29% 40,915 963 2.35%
Subordinated debentures 10,310 733 7.11% 10,310 734 7.12%
 
Total interest bearing liabilities 754,718 10,581 1.40% 814,609 14,877 1.83%
 
Non-interest bearing deposits 92,428 84,304

Other non-interest bearing liabilities
5,332 6,559
 
Stockholders' equity 101,747 114,005
 

Total liabilities and stockholders' equity

$954,225
$1,019,477
 

Net change in interest earning assets and interest bearing liabilities
$26,358 $26,688
Interest rate spread 2.81% 2.62%
Net yield on interest earning assets 3.01% 2.86%
 

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 December 31, 2013, and December 31, 2012, by $264,000 and $274,000, 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 December 31, 2013, and $1 for the three month period ended December 31, 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
12/31/2013 12/31/2013 12/31/2013 12/31/2012 12/31/2012 12/31/2012
 
Loans $531,102 $6,580 4.96% $532,847 $7,212 5.41%
Investments AFS taxable 249,629 1,636 2.62% 285,565 1,899 2.66%
Investments AFS tax free 66,942 807 4.82% 70,554 845 4.79%
Federal funds 9,682 6 0.25% 14,003 4 0.11%
 
Total interest earning assets 857,355 9,029 4.21% 902,969 9,960 4.41%
 
Other assets 86,175 79,807
 
Total assets $943,530 $982,776
 
 
 
Retail time deposits $338,123 1,028 1.22% $408,353 1,777 1.74%
Brokered deposits 45,379 148 1.30% 47,127 193 1.64%
Now accounts 168,425 291 0.69% 145,644 290 0.80%
MMDA and savings accounts 90,382 43 0.19% 76,335 32 0.17%
FHLB borrowings 48,743 445 3.65% 44,044 454 4.12%
Repurchase agreements 41,788 237 2.27% 40,758 242 2.37%
Subordinated debentures 10,310 185 7.18% 10,310 181 7.02%
 
Total interest bearing liabilities 743,150 2,377 1.28% 772,571 3,169 1.64%
 
Non-interest bearing deposits 97,602 88,783

Other non-interest bearing liabilities
5,491 6,753
 
Stockholders' equity 97,287 114,669
 

Total liabilities and stockholders' equity
$943,530 $982,776
 

Net change in interest earning assets and interest bearing liabilities
$6,652 $6,791
Interest rate spread 2.93% 2.77%
Net yield on interest earning assets 3.10% 3.01%
 

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

Copyright Business Wire 2010

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