(Source: PRNewswire-FirstCall)
HOPKINSVILLE, Ky., April 30 /PRNewswire-FirstCall/ -- HopFed Bancorp, Inc. (the "Company") today reported results for the first quarter ended March 31, 2009. For the three month period ended March 31, 2009, net income available for common shareholders was $1,012,000, or $0.28 per share (basic and diluted), compared to $657,000, or $0.19 per share (basic and diluted), for the three month period ended December 31, 2008, and $1,492,000, or $0.42 per share (basic and diluted), for the three month period ended March 31, 2008.
Commenting on the first quarter results, John E. Peck, president and chief executive officer, said, "During the first quarter of 2009, the Company continued to strengthen its balance sheet by adding more than $550,000 to its allowance for loan loss account while maintaining an acceptable level of net income. The Company has increased its funding level of its allowance for loan loss account to 1.07% of total loans and 97% of non-performing loans. The Company's credit quality remains stable with both non-accruals and charge offs largely unchanged as compared to the prior quarter. The decline in total loans outstanding is the result of one customer paying off a $7 million loan. The Company's net interest income increased by more than $700,000 as compared to the three month period ending December 31, 2008, as the Company saw a modest increase in interest margins."
Mr. Peck continued, "The Company's focus on providing exceptional customer service with convenient locations has resulted in a record growth of new checking account customers. The Bank's 2009 marketing plan continues to focus on promoting and growing all deposit accounts, with an emphasis on checking accounts. For the three months ended March 31, 2009, Heritage Bank opened more than 1,000 checking accounts as compared to 700 checking accounts during the first three months of 2008. As a result of this growth, the average balance on non-interest bearing checking accounts during the three month period ended March 31, 2009, was $58.4 million compared to $51.7 million for the three month period ending March 31, 2008. Management will continue to focus on improving the Company's deposit mix, reducing our interest expense and improving our net interest margin. The benefits of this growth will become more obvious as interest rates begin to increase. Customer demand for all deposit services remains robust and the pricing of deposit accounts appears to be reasonable."
Mr. Peck commented on future economic prospects, "For the remainder of 2009, management anticipates higher operating expenses related to a proposed FDIC insurance assessment. We anticipate that this assessment will be payable at September 30, 2009 and the cost to the Company could exceed $1.2 million."
"In addition, at March 31, 2009, total assets increased to $991.1 million compared with $967.6 million at December 31, 2008, deposits increased to $738.7 million compared with $713.0 million at December 31, 2008, while net loans declined to $627.6 million compared with $634.5 million at December 31, 2008. Federal Home Loan Bank borrowings have decreased to $123.0 million at March 31, 2009, compared to $130.0 million at December 31, 2008. "
HopFed Bancorp, Inc. is the holding company for Heritage Bank headquartered in Hopkinsville, Kentucky. The Bank has eighteen offices in western Kentucky and middle Tennessee as well as Fall & Fall Insurance of Fulton, Kentucky, Heritage Solutions of Murray, Kentucky, Dickson, Tennessee and Pleasant View, 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.
