(Source: PRNewswire-FirstCall)
HOPKINSVILLE, Ky., July 28 /PRNewswire-FirstCall/ -- HopFed Bancorp, Inc. (the "Company") today reported results for the three and six month periods ended June 30, 2009. For the three month period ended June 30, 2009, net income available for common shareholders was $854,000, or $0.24 per share (basic and diluted), compared to $1,261,000, or $0.35 per share (basic and diluted) for the three month period ended June 30, 2008, and $1,012,000, or $0.28 per share (basic and diluted) for the three month period ended March 31, 2009. For the six month period ended June 30, 2009, net income available for common shareholders was $1,866,000, or $0.52 per share (basic and diluted), compared to $2,753,000, or $0.77 per share (basic and diluted), for the six month period ended June 30, 2008.
For the three and six month periods ended June 30, 2009, the Company's results of operations includes preferred dividend and warrant accretion of $257,000 and $511,000, respectively related to the Company's $18.4 million issuance of preferred stock to the United States Treasury on December 12, 2008.
Commenting on the first half and second quarter results, John E. Peck, president and chief executive officer, said, "The Company continues to experience a modest level of net interest margin expansion. For the three month periods ended June 30, 2009 and March 31, 2009, the Company's net interest margin was 2.93% and 2.87%, respectively. The Company's net interest income for the three months ended June 30, 2009 was $6,562,000, as compared to $6,395,000 for the three month period ended March 31, 2009 and $5,876,000 for the three month period ended June 30, 2008."
Mr. Peck continued, "During the second quarter of 2009, the Company's profitability was hampered due to higher operating expenses largely due to an increase in regulatory fees. The Company incurred approximately $722,000 in expenses related to deposit insurance and examination fees, as compared to $163,000 in the first quarter of 2009 and $113,000 in the second quarter of 2008. The increase in these fees includes an FDIC special assessment of approximately $460,000 but also reflects quarterly fees charged by the FDIC to fund its operations.
For the three and six month periods ended June 30, 2009, the Company's provision for loan loss expense was $962,000 and $1.9 million, respectively, compared to $476,000 and $877,000, respectively for the same periods in 2008. The increase in the Company's provision for loan loss expense was driven by an increase in loans internally classified as impaired, from $13.0 million at December 31, 2008 to $24.9 million at June 30, 2009. The allowance for loan loss to total loans ratio is now 1.15% as compared to 0.85% at June 30, 2008 and 0.97% at December 31, 2008. The Company's credit quality ratios remain stable with both the Company's non-performing asset ratio and net charge off ratio are largely unchanged at June 30, 2009 as compared to December 31, 2008."
Mr. Peck commented on the Company's future prospects, "For the remainder of 2009, management anticipates that operating expenses will moderate as higher regulatory fees will offset reductions in the Company's core deposit intangible expense. The Company may have the opportunity to lower its cost of funds late in the third quarter, making it possible for an improved net interest margin in the fourth quarter. In light of the continued struggles in both the national and local economies, management anticipates that it will continue to focus on strengthening the balance sheet through continued aggressively funding the allowance for loan loss account. The Company will not recognize a goodwill impairment charge in the second quarter. However, the Company has chosen to accelerate its annual independent goodwill impairment study so that it may be completed by the end of the third quarter of 2009."
"At June 30, 2009, total assets increased to $1.0 billion, compared with $967.6 million at December 31, 2008, deposits increased to $743.5 million, compared with $713.0 million at December 31, 2008, while gross loans increased to $644.5 million, compared with $634.5 million at December 31, 2008. Federal Home Loan Bank borrowings decreased to $129.1 million at June 30, 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, Hopkinsville, Kentucky. Kingston Springs, 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. 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 forwardlooking 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.
