HopFed Bancorp, Inc. Reports Second Quarter Results

  HopFed Bancorp, Inc. Reports Second Quarter Results

Business Wire

HOPKINSVILLE, Ky. -- July 26, 2013

HopFed Bancorp, Inc. (NASDAQ: HFBC) (the “Company”), the holding company for
Heritage Bank USA, Inc. (the “Bank”), today reported results for the three and
six month periods ended June 30, 2013. For the three month period ended June
30, 2013, the Company’s net income available to common shareholders was
$1.2million, or $0.16 per share, basic and diluted, compared to net income
available to common shareholders of $903,000, or $0.12 per share basic and
diluted, for the three month period ended June 30, 2012. For the six month
period ended June 30, 2013, the Company’s net income available to common
shareholders was $2.2 million, or $0.29 per share, basic and diluted, compared
to a net income attributable to common shareholders of $1.4 million, or $0.18
per share basic and diluted, for the six month period ended June 30, 2012.

Commenting on the second quarter results, John E. Peck, President and Chief
Executive Officer, said, “Operating results improved modestly during the three
month period ended June 30, 2013, as compared to the three months period ended
March 31, 2013, due to an increase in gains on the sales of securities, an
increase in the amount of service charge income and an increase in the amount
of financial services commissions. The Company continues to carefully control
our non-interest expenses as our linked quarter operating expenses declined by
$150,000 and total operating expenses for the six month period ended June 30,
2013, were $140,000 lower as compared to the six month period ended June 30,
2012.”

Mr. Peck continued, “The Company’s non-accrual loans increased during the
three month period ended June 30, 2013, as we placed a $6.3 million
non-residential real estate relationship in non-accrual status and charged off
approximately $1.3 million of that relationship in June 2013. The increase in
non-accrual loans reduced interest income on loans by approximately $140,000.
The increase in non-accruals did not result in an increase in the necessary
funding level of the allowance for loan loss account or result in a material
increase in the Company’s level of adversely classified assets.”

Mr. Peck concluded, “The Company continues to improve its deposit mix by
reducing the Company’s reliance on time deposit funding. At June 30, 2013, the
Company’s linked quarter non-interest expense declined by $120,000. In the
three month period ending September 30, 2013, the Company has more than $60.0
million in time deposits re-pricing at a weighted average cost of 1.71%. The
potential to lower our interest on deposit expense is likely to be offset by
lower yields on loans and investments.”

Financial Highlights

  *At June 30, 2013, the Company’s tangible book value was $13.05 per share
    and tangible common equity ratio was 10.31%. The reduction in book value
    at June 30, 2013, as compared to March 31, 2013, 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 June 30, 2013, were 11.04% and 19.14%,
    respectively. The Company’s Tier 1 Capital and Total Risk Based Capital
    Ratios were 11.18% and 19.31%, respectively.
  *At June 30, 2013, the Company’s allowance for loan loss totaled $9.4
    million, or 1.75% of total loans and 79.6% of non-accrual loans. In the
    six month period ended June 30, 2013, the Company’s net charge offs
    totaled $2.0 million, or an annualized rate of 0.77% of average loans.
  *For the three month period ended June 30, 2013, the Company’s net interest
    margin was 2.90%, as compared to 2.87% for the three month period ended
    June 30, 2012, and 2.99% for the three month period ended March 31, 2013.
    During the three month period ended June 30, 2013, net interest income was
    reduced by approximately $140,000 due to increases in non-accrual loans.

Asset Quality

At June 30, 2013, the Company’s level of non-accrual loans totaled $11.8
million, as compared to $7.7 million at December31, 2012, and $7.1 million at
March 31, 2013. The increase in non-accrual loans is largely the result of one
non-residential real estate relationship of approximately $5.0 million being
classified as non-accrual in June 2013.

A summary of non-accrual loans at June 30, 2013, and December 31, 2012, is as
follows:

                              June 30, 2013  December 31, 2012
                               (Dollars in Thousands)
                                               
One-to-four family mortgages   1,131           2,243
Home equity line of credit     21              66
Junior lien                    37              4
Multi-family                   ---             38
Construction                   ---             ---
Land                           2,256           2,768
Non-residential real estate    7,054           1,134
Farmland                       781             648
Consumer loans                 354             145
Commercial loans               177             617
Total non-accrual loans        11,811          7,663

A summary of the level of classified loans at June 30, 2013, is as follows:

                                                                    Specific    Reserve
                                      Impaired Loans                       Reserve      for
June 30, 2013               Special                                     for          Performing
                  Pass      Mention   Substandard    Doubtful   Total     Impairment   Loans
                                      (Dollars in Thousands)
One-to-four
family            151,332   1,169     5,348           31         157,880   794          1,583
mortgages
Home equity       35,017    ---       965             ---        35,982    146          243
line of credit
Junior liens      3,361     45        506             ---        3,912     ---          63
Multi-family      27,870    ---       2,095           ---        29,965    ---          233
Construction      8,818     176       ---            ---        8,994     ---          67
Land              22,186    7,441     9,519           ---        39,146    1,305        415
Non-residential   126,709   932       13,750          ---        141,391   1,145        1,892
real estate
Farmland          45,086    352       4,862           ---        50,300    ---          462
Consumer loans    12,418    ---       438             ---        12,856    ---          392
Commercial        53,890    435       2,930           ---        57,255    177          482
loans
Total             486,687   10,550    40,413          31         537,681   3,567        5,832

At June 30, 2013, non-accrual loans plus other real estate owned totaled $13.4
million, or 1.42% 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 six month period ended June 30, 2013, is as follows:

                 Activity During 2013                                         
                  Balance                                Reduction   Gain     Balance
                                                                         (Loss)
                   12/31/2012   Foreclosures    Proceeds   in Values   on       6/30/2013
                                                                         Sale
                  (Dollars in Thousands)
                                                                                  
One-to-four
family            $ 258          548              (349  )    ---         (10  )   447
mortgages
Multi-family        ---          ---              ---        ---         ---      ---
Construction        130          ---              (110  )    (110   )    90       ---
Land                1,112        ---              ---        ---         ---      1,112
Non-residential     44           40               ---        (11    )    ---      73
real estate
Consumer assets    4            5                (3    )    (4     )    (2   )   ---
                                                                                  
Total             $ 1,548        593              (462  )    (125   )    78      1,632

At June 30, 2013, the Company’s level of loans classified as substandard and
doubtful were $40.4 million and $31,000, respectively, as compared to $66.6
million and none, respectively, at December 31, 2012. At June 30, 2013, the
Company’s classified loan to risk based capital ratio was 35.5%. The Company’s
specific reserve for impaired loans was $3.6 million at June 30, 2013, and
$3.8 million at December 31, 2012, respectively.

At June 30, 2013, the Company’s level of performing Troubled Debt
Restructurings (“TDRs”) was $469,000, as compared to $11.0 million at December
31, 2012. A summary of the activity in loans classified as TDRs for the six
month period ended June 30, 2013, is as follows:

                                                              Removed     
                                                     Removed due   from
                                                     to
                  Balance at   New     Loss or       Payment or    (Taken to)    Balance
                                                                                 at
                   12/31/12   TDR     Foreclosure   Performance   Non-accrual   6/30/13
                  (Dollars in Thousands)
One-to-four
family            $ 1,888      242     ---           (1,863   )    ---           267
mortgages
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     3,173      266     (864     )    (3,344   )    4,112         3,343
real estate
Farmland            865        ---     ---           (865     )    ---           ---
Consumer loans      5          ---     ---           (1       )    ---           4
Commercial         9          222     ---          (1       )    ---          230
loans
                                                                                 
Total             $ 11,038     3,379   (1,257   )    (6,974   )    (86      )    6,100
performing TDR

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

                              June 30, 2013  December 31, 2012
                               (Dollars in Thousands)
One-to-four family mortgages   $  267               1,888
Home equity line of credit        ---               ---
Junior lien                       ---               196
Multi-family                      ---               234
Construction                      ---               4,112
Land                              2,256             3,424
Non-residential real estate       3,343             3,173
Farmland                          ---               909
Consumer loans                    4                 5
Commercial loans                 230             128      
Total TDR                        6,100           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                              (2,256  )         (2,768   )
Non-residential real estate       (3,248  )         (44      )
Consumer loans                    ---               ---
Commercial loans                 (127    )        (119     )
Total performing TDR           $  469         $    11,038   

Net Interest Income

For the three month period ended June 30, 2013, the Company’s net interest
income was $6.2 million, compared to$6.7million for the three month period
ended June 30, 2012, and $6.4million for the three month period ended
March31,2013. For the three month period ended June 30, 2013, the Company’s
net interest margin was 2.90%, as compared to 2.87% for the three month period
ended June 30, 2012, and 2.99% for the three month period ended March 31,
2013.

For the six month period ended June 30, 2013, the Company’s net interest
income was $12.6 million, as compared to $13.5million for the six month
period ended June 30, 2012. For the six month period ended June 30, 2013, the
Company’s net interest margin was 2.94%, as compared to 2.93% for the six
month period ended June 30, 2012.

The declines in the Company’s net interest income and net interest margin are
largely the result of declining average loan balances and investment
securities. Furthermore, the yields on all classes of earning assets continue
to decline as both short term and long term rates are near record low levels.
The Company’s results for the three and six month periods ended June30,2013,
were negatively impacted by a substantial increase in non-accrual loans.

Non-interest Income

Non-interest income for the three month period ended June 30, 2013, was $2.8
million, as compared to $2.6 million for the three month period ended June 30,
2012, and $2.5 million for the three month period ended March 31,
2013.Non-interest income for the six month periods ended June 30, 2013, and
June 30, 2012, was $5.3 million and $4.6 million, respectively. The increase
in non-interest income for the three month period ended June 30, 2013, as
compared to the three month periods ended June 30, 2012, and March 31, 2013,
was primarily the result of an increase in gains on the sale of securities.

The Company recognized net gains on the sale of securities of $789,000,
$630,000, and $627,000 for the three month periods ended June 30, 2013, June
30, 2012, and March 31, 2013, respectively. The Company recognized net gains
on the sales of securities of $1.4 million and $674,000, for the six month
periods ended June 30, 2013, and June 30, 2012, respectively.

For the three and six month periods ended June 30, 2013, the Company’s revenue
related to the origination of fixed rate mortgage loans was $212,000 and
$412,000, respectively, as compared to $263,000 and $466,000 for the same
periods in 2012. The Company earned $347,000 and $644,000 in commission from
our financial services production during the three and six month periods ended
June 30, 2013, as compared to $271,000 and $498,000, respectively, for the
same periods in 2012.

Non-interest Expense

Non-interest expenses were $7.1 million, $7.4 million and $7.3 million for the
three month periods ended June 30, 2013, June30, 2012, and March 31, 2013,
respectively. For the six months ended June 30, 2013, and June 30, 2012,
non-interest expenses were $14.4 million and $14.5 million, respectively.

On a linked quarter basis, professional services expenses increased by
$156,000. The increase in professional services expense was largely the result
of the Company’s contested proxy vote. On a linked quarter basis, the Company
has experienced a modest decline in most operating expense line items. For the
three month period ended June 30, 2013, the Company’s salaries and benefits
expense declined by $134,000 as compared to the previous quarter, and total
operating expenses declined by $150,000, each as compared to the previous
quarter.

Balance Sheet

At June 30, 2013, consolidated assets were $949.4 million, a decrease of $18.3
million as compared to December 31, 2012. The decline in assets is largely the
result of a $29.0 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 six month period ended June 30, 2013, gross loans increased by
approximately $2.1 million, to $537.7 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. TheBank haseighteen 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, Kingston Springs, Tennessee 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 financialproducts and services with the personalized focus of
a community banking organization. More information about HopFed Bancorpand
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 andis subject to
various risk, uncertainties, and assumptions. Should one or more of these
risks or uncertainties materialize, orshould the underlying assumptions prove
incorrect, actual results may vary materially from those anticipated,
estimated orexpected. 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 infilings 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.

Balance Sheet

(Dollars in thousands)
                                                               
Assets                                            June 30, 2013   December 31,
                                                                  2012
                                                  (unaudited)
                                                                  
Cash and due from banks                           $   20,070      31,563
Interest-earning deposits                            9,633       5,613
Cash and cash equivalents                             29,703      37,176
Federal Home Loan Bank stock, at cost                 4,428       4,428
Securities available for sale                         338,936     356,345
Loans receivable, net of allowance for loan
losses of $9,399 at June 30, 2013, and $10,648        528,282     524,985
at December 31, 2012
Accrued interest receivable                           4,919       5,398
Real estate and other assets owned                    1,632       1,548
Bank owned life insurance                             9,486       9,323
Premises and equipment, net                           21,853      22,557
Deferred tax assets                                   3,383       ---
Intangible asset                                      195         292
Other assets                                         6,578       5,637
Total assets                                      $   949,395     967,689
                                                                  
Liabilities and Stockholders' Equity
Liabilities:
Deposits:
Non-interest-bearing accounts                     $   94,426      94,083
Interest-bearing accounts
Interest bearing checking accounts                    154,444     147,047
Savings and money market accounts                     85,735      81,643
Other time deposits                                  408,059     437,092
Total deposits                                        742,664     759,865
                                                                  
Advances from Federal Home Loan Bank                  45,768      43,741
Repurchase agreements                                 47,072      43,508
Subordinated debentures                               10,310      10,310
Advances from borrowers for taxes and insurance       697         396
Dividends payable                                     177         180
Deferred tax liability                                ---         568
Accrued expenses and other liabilities               4,634       4,122
Total liabilities                                    851,322     862,690

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

HOPFED BANCORP, INC.

Balance Sheet

(Dollars in thousands)
                                                          
                                             June 30, 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
June 30, 2013, and December 31, 2012.
Common stock, par value $.01 per share;
authorized

15,000,000 shares; 7,905,955 issued and         79           79
7,503,039 outstanding at June 30, 2013,
and 7,905,728 issued and 7,502,812
outstanding at December 31, 2012
Common stock warrant                            ---          556
Additional paid-in-capital                      76,634       76,288
Retained earnings                               43,679       41,829

Treasury stock- preferred (at cost, 18,400
shares at June 30, 2013, and December 31,       (18,400  )   (18,400     )
2012)
Treasury stock- common (at cost, 402,916
shares at June 30, 2013, and December 31,       (5,076   )   (5,076      )
2012)
Accumulated other comprehensive income,        1,157       9,723       
net of taxes
                                                             
Total stockholders' equity                     98,073      104,999     
                                                             
Total liabilities and stockholders' equity   $  949,395     967,689     

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 Month   For the Six Month
                                      Periods               Periods
                                      Ended June 30,       Ended June 30,
                                                                   
                                      2013        2012      2013       2012
Interest and dividend income:
Loans receivable                      6,676       7,413     13,558     15,214
Investment in securities, taxable     1,764       2,434     3,596      4,809
Investment in securities,             547         547       1,132      1,122
non-taxable
Interest-earning deposits             7           6         13         14
Total interest and dividend income    8,994       10,400    18,299     21,159
                                                                       
Interest expense:
Deposits                              1,936       2,755     3,982      5,639
Advances from Federal Home Loan       446         565       890        1,138
Bank
Repurchase agreements                 230         237       472        485
Subordinated debentures               182         181       364        368
Total interest expense                2,794       3,738     5,708      7,630
                                                                       
Net interest income                   6,200       6,662     12,591     13,529
Provision for loan losses             406         400       782        1,269
                                                                       
Net interest income after
provision for loan losses             5,794       6,262     11,809     12,260
                                                                       
Non-interest income:
Service charges                       937         973       1,790      1,911
Merchant card income                  259         212       482        408
Mortgage origination revenue          212         263       412        466
Gain on sale of securities            789         630       1,416      674
Income from bank owned life           87          79        162        158
insurance
Financial services commission         347         271       644        498
Other operating income                197         211       405        441
Total non-interest income             2,828       2,639     5,311      4,556

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 Month Periods   For the Six Month Periods
                       Ended June 30,               Ended June 30,
                                                                
                         2013          2012         2013         2012
Non-interest
expenses:
Salaries and              3,714          3,561         7,562         7,068
benefits
Occupancy expense         882            884           1,727         1,739
Data processing           646            627           1,296         1,252
expense
State bank tax            147            162           289           324
Intangible                48             65            97            130
amortization expense
Professional              549            498           942           886
services expense
Deposit insurance
and examination           179            434           411           853
expense
Advertising expense       308            324           641           628
Postage and
communications            139            157           278           298
expense
Supplies expense          93             105           229           216
Loss on disposal of       ---            2             ---           8
equipment
Loss on sale of real      12             72            47            219
estate owned
Real estate owned         32             25            108           71
expenses
Other operating          375           523          771          846
expenses
Total non-interest       7,124         7,439        14,398       14,538
expense
                                                                   
Income before income      1,498          1,462         2,722         2,278
tax expense
Income tax expense       332           300          572          389
                                                                   
Net income               1,166         1,162        2,150        1,889
Less:
Dividend on               ---            231           ---           460
preferred shares
Accretion dividend        ---           28            ---          56
on preferred shares
                                                                   
Net income available
to common              $  1,166        $ 903         $ 2,150       $ 1,373
shareholders
Net income available
to common
shareholders
Per share, basic       $  0.16         $ 0.12        $ 0.29        $ 0.18
Per share, diluted     $  0.16         $ 0.12        $ 0.29        $ 0.18
Dividend per share     $  0.02         $ 0.02        $ 0.04        $ 0.04
                                                                   
Weighted average
shares outstanding -     7,488,906     7,485,283    7,488,788    7,484,498
basic
Weighted average
shares outstanding -     7,488,906     7,485,283    7,488,788    7,484,498
diluted

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
                                       6/30/2013   3/31/2013     Prior Quarter
                                                                 
Interest and dividend income:
Loans receivable                       6,676       6,882         (206     )
Investment in securities, taxable      1,764       1,832         (68      )
Investment in securities,              547         585           (38      )
non-taxable
Interest-earning deposits              7           6             1        
Total interest and dividend income     8,994       9,305         (311     )
                                                                 
Interest expense:
Deposits                               1,936       2,046         (110     )
Advances from Federal Home Loan Bank   446         444           2
Repurchase agreements                  230         242           (12      )
Subordinated debentures                182         182           ---      
Total interest expense                 2,794       2,914         (120     )
                                                                 
Net interest income                    6,200       6,391         (191     )
Provision for loan losses              406         376           30       
                                                                 

Net interest income after provision    5,794       6,015         (221     )
for loan losses
                                                                 
Non-interest income:
Service charges                        937         853           84
Merchant card income                   259         223           36
Mortgage orgination revenue            212         200           12
Gain on sale of securities             789         627           162
Income from bank owned life            87          75            12
insurance
Financial services commission          347         297           50
Other operating income                 197         208           (11      )
                                                                 
Total non-interest income              2,828       2,483         345      

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)
                                                                 
                                      Months Ended               
                                                                 Change from
                                       6/30/2013   3/31/2013   Prior Quarter
                                                                 
Non-interest expenses:
Salaries and benefits                 $ 3,714        3,848       (134     )
Occupancy expense                       882          845         37
Data processing expense                 646          650         (4       )
State bank tax                          147          142         5
Intangible amortization expense         48           49          (1       )
Professional services expense           549          393         156
Deposit insurance and examination       179          232         (53      )
expense
Advertising expense                     308          333         (25      )
Postage and communications expense      139          139         ---
Supplies expense                        93           136         (43      )
Loss on sale of real estate owned       12           35          (23      )
Real estate owned expenses              32           76          (44      )
Other operating expenses               375         396         (21      )
                                                                 
Total non-interest expense             7,124       7,274       (150     )
                                                                 
Income before income tax expense        1,498        1,224       274
Income tax expense                     332         240         92       
                                                                 
Net income                             1,166       984         182      
Net income available to common stockholders
Per share, basic                      $ 0.16       $ 0.13        0.03     
Per share, diluted                    $ 0.16       $ 0.13        0.03     
Dividend per share                    $ 0.02       $ 0.02
                                                                 
Weighted average shares outstanding    7,488,906   7,488,445
- basic
Weighted average shares outstanding    7,488,906   7,488,445
- diluted

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 six month periods
ended June 30, 2013, and June 30, 2012, by $545,000 and $533,000,
respectively; for a tax equivalent rate using a cost of funds rate of 1.50%
for the six month period ended June 30, 2013, and 1.80% for the six month
period ended June 30, 2012. The table adjusts tax-free loan income by $4,000
for six month period ended June 30, 2013, and $5,000 for the six month period
ended June 30, 2012, for a tax equivalent rate using the same cost of funds
rate:

               Average      Income and   Average       Average      Income and   Average
                Balance       Expense       Rates           Balance       Expense       Rates
                 6/30/2013   6/30/2013    6/30/2013       6/30/2012   6/30/2012    6/30/2012 
                (Table Amounts in Thousands, Except Percentages)
Loans           $ 525,448     13,562        5.16      %     $ 547,815     15,219        5.56      %
Investments       283,867     3,596         2.53      %     $ 329,809     4,809         2.92      %
AFS taxable
Investment        73,499      1,677         4.56      %     $ 66,852      1,655         4.95      %
AFS tax free
Interest
earning          9,672       13           0.27      %     $ 14,762      14           0.19      %
deposits
                                                                                        
Total
interest          892,486     18,848       4.22      %       959,238     21,697       4.52      %
earning
assets
                                                                                        
Other assets     79,201                                     89,115
                                                                                        
Total assets    $ 971,687                                   $ 1,048,353
                                                                                        
Retail time       378,326     2,877         1.52      %       451,622     4,459         1.97      %
deposits
Brokered          46,390      362           1.56      %       54,265      510           1.88      %
deposits
Saving & MMDA     83,367      70            0.17      %       73,453      66            0.18      %
Now accounts      165,564     673           0.81      %       147,336     604           0.82      %
FHLB              43,586      890           4.08      %       62,537      1,138         3.64      %
borrowings
Repurchase        40,595      472           2.33      %       41,915      485           2.31      %
agreements
Subordinated     10,310      364          7.06      %      10,310      368          7.14      %
debentures
                                                                                        
Total
interest          768,138     5,708        1.49      %       841,438     7,630        1.81      %
bearing
liabilities
                                                                                        
Non-interest
bearing           93,857                                      82,153
deposits
Other             4,944                                       5,212
liabilities
                                                                                        
Stockholders'    104,748                                    119,550
equity
                                                                                        
Total
liabilities
and             $ 971,687                                   $ 1,048,353
stockholders'
equity
                                                                                        
Net interest                  13,140                                     14,067    
income
                                                                                        
Net interest                                2.73      %                                 2.71      %
spread
                                                                                        
Net interest                  2.94      %                                 2.93      %
margin

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 June 30, 2013, and June 30, 2012, by $263,000 and $260,000,
respectively; for a tax equivalent rate using a cost of funds rate of 1.50%
for the three month period ended June 30, 2013, and 1.80% for the three month
period ended June 30, 2012. The table adjusts tax-free loan income by $2,000
for three month period ended June 30, 2013, and $3,000 for the three month
period ended June 30, 2012, for a tax equivalent rate using the same cost of
funds rate:

               Average      Income and   Average       Average      Income and   Average
                Balance       Expense       Rates           Balance       Expense       Rates
                 6/30/2013   6/30/2013    6/30/2013       6/30/2012   6/30/2012    6/30/2012 
                (Table Amounts in Thousands, Except Percentages)
Loans           $ 528,160     6,678         5.06      %     $ 544,056     7,416         5.45      %
Investments       283,262     1,764         2.49      %       339,125     2,434         2.87      %
AFS taxable
Investment        71,333      810           4.54      %       68,035      807           4.74      %
AFS tax free
Interest
earning          9,465       7            0.30      %      13,632      6            0.18      %
deposits
                                                                                        
Total
interest          892,220     9,259        4.15      %       964,848     10,663       4.42      %
earning
assets
                                                                                        
Other assets     73,757                                     79,426
                                                                                        
Total assets    $ 965,977                                   $ 1,044,274
                                                                                        
Retail time       371,908     1,378         1.48      %       445,784     2,186         1.96      %
deposits
Brokered          45,688      178           1.56      %       51,185      226           1.77      %
deposits
Savings &         86,018      37            0.17      %       74,472      33            0.18      %
MMDA
Now accounts      167,038     343           0.82      %       150,813     310           0.82      %
FHLB              43,612      446           4.09      %       62,105      565           3.64      %
borrowings
Repurchase        38,185      230           2.41      %       39,788      237           2.38      %
agreements
Subordinated     10,310      182          7.06      %      10,310      181          7.02      %
debentures
                                                                                        
Total
interest          762,759     2,794        1.47      %       834,457     3,738        1.79      %
bearing
liabilities
                                                                                        
Non-interest
bearing           93,616                                      83,803
deposits
Other             4,891                                       4,158
liabilities
                                                                                        
Stockholders'    104,711                                    121,856
equity
                                                                                        

Total
liabilities
and             $ 965,977                                   $ 1,044,274
stockholders'
equity
                                                                                        
Net interest                  6,465                                      6,925     
income
                                                                                        
Interest rate                               2.68      %                                 2.63      %
spread
                                                                                        
Net interest                  2.90      %                                 2.87      %
margin

Contact:

HopFed Bancorp, Inc.
John E. Peck, 270-885-1171
President and CEO
 
Press spacebar to pause and continue. Press esc to stop.