HOPKINSVILLE, Ky., Oct. 24 /PRNewswire-FirstCall/ -- HopFed Bancorp, Inc. (the "Company") today reported results for the three and nine-month periods ended September 30, 2007. Net income for the third quarter ended September 30, 2007, was $1,025,000, or $0.29 per share basic and $0.28 per share diluted, compared to $1,012,000, or $0.28 per share (basic and diluted), for the third quarter in 2006. Net income for the nine months ended September 30, 2007, was $3,155,000, or $0.87 per share (basic and diluted), compared with $3,062,000, or $0.84 per share (basic and diluted), for the nine months ended September 30, 2006.
Commenting on the third quarter and year to date results, John E. Peck, president and chief executive officer, said, "For the three and nine month periods ended September 30, 2007, the Company's loan portfolio grew by more than $27.2 million and $63.2 million, respectively. Providing funding for third quarter loan growth resulted in five basis point reduction in the Company's year to date net interest margin as compared to the second quarter 2007. However, the Company's net interest margin remains twenty-two basis points higher as compared to the net interest margin for the year ended December 31, 2006."
Mr. Peck continued, "For the first nine months in 2007, non-interest income increased $1.4 million compared to the same period last year. This growth is the result of a number of factors, the most important being an increase in service charge and merchant card income, increasing by almost $800,000 in 2007 over the same period in 2006. For the first nine months in 2007, the Company's fee income from its financial services division increased by more than $400,000 as compared to the first nine months in 2006.
"In addition, the Company's three retail locations in Clarksville, Tennessee and one new retail location in Murray, Kentucky have been well received by both new and current customers. The Company's growth has largely been fueled by the addition of new retail locations in both new and current markets. The Company has completed its immediate goals for expanding its retail presence. Management believes that the Company's current infrastructure is sufficient to accommodate significant organic growth."
HopFed Bancorp, Inc. is a holding company for Heritage Bank headquartered in Hopkinsville, Kentucky. The Bank has sixteen offices in western Kentucky and middle Tennessee as well as Fall & Fall Insurance of Fulton, Kentucky, Heritage Solutions of Murray, Kentucky and Dickson, Tennessee, and Heritage Mortgage Services of Clarksville, Tennessee. 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 may be found on its website http://www.bankwithheritage.com/.
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.
HOPFED BANCORP, INC. Selected Financial Data (In thousands, except share and per share data) Three Months Ended Nine Months Ended September 30, September 30, 2007 2006 2007 2006 Earnings Summary Interest income on loans $10,397 $8,712 $30,130 $22,762 Interest income on taxable investments 1,772 2,106 5,603 5,870 Interest income on non taxable investments 129 127 374 401 Interest income on time deposits 93 30 347 103 Total interest income 12,391 10,975 36,454 29,136 Interest expense on deposits 5,635 4,465 16,484 11,845 Interest on subordinated debentures 192 194 587 542 Interest on repurchase agreements 402 236 979 357 Interest expense on borrowed funds 1,145 1,420 3,259 3,631 Total interest expense 7,374 6,315 21,309 16,375 Net interest income 5,017 4,660 15,145 12,761 Provision for loan losses 224 312 702 729 Net interest income after provision for loan losses 4,793 4,348 14,443 12,032 Non-interest income: Income from financial services 293 189 879 442 Gain on sale of investments -- -- -- 42 Gain on sale of loans 30 47 82 110 Service charges 1,076 1,052 2,968 2,326 Income from bank owned life insurance 77 70 247 200 Merchant card income 125 103 361 217 Other 276 242 847 674 Total non-interest income 1,877 1,703 5,384 4,011 HOPFED BANCORP, INC. Selected Financial Data (In thousands, except share, per share and percentages) Three Months Ended Nine Months Ended September 30, September 30, 2007 2006 2007 2006 Non-interest expense: Salaries and benefits 2,729 2,346 7,927 5,868 Intangible amortization 224 240 705 430 Occupancy expense 684 476 1,945 1,135 Data processing 477 455 1,359 1,112 Advertising expense 236 214 741 555 Professional services expense 337 375 1,113 1,109 State deposit taxes 145 116 411 346 Postage and communications expense 150 122 398 305 Office supplies expense 87 126 270 263 Other operating expenses 165 151 506 554 Total non-interest expense 5,234 4,621 15,375 11,677 Net income before income taxes 1,436 1,430 4,452 4,366 Income tax expense 411 418 1,297 1,304 Net income $1,025 $1,012 $3,155 $3,062 Earnings per share - basic $0.29 $0.28 $0.87 $0.84 Earnings per share - diluted $0.28 $0.28 $0.87 $0.84 Dividend per share 0.12 $0.12 $0.36 $0.36 Weighted average shares outstanding - Basic 3,584,053 3,637,288 3,607,870 3,634,362 Weighted average shares outstanding - Diluted 3,607,093 3,663,883 3,628,455 3,656,872 As of September 30, 2007 December 31, 2006 Total assets $796,406 $770,888 Loans receivable, gross 562,916 499,438 Securities available for sale 139,525 183,339 Required investment in FHLB stock 3,836 3,639 Securities held to maturity 17,918 18,018 Allowance for loan losses 4,840 4,470 Total deposits 582,262 569,433 Total borrowings 112,590 113,621 Stockholders' equity 54,450 52,270 Repurchase agreements 41,722 21,236 Book value $15.12 $14.41 Allowance for loan loss / Gross loans 0.86% 0.90% Non performing assets / Total assets 0.14% 0.16% Non accrual loans / Total loans 0.13% 0.17% Tax equivalent net yield on interest earning assets 2.93% 2.71%
