HopFed Bancorp, Inc. Reports Third Quarter Results

  HopFed Bancorp, Inc. Reports Third Quarter Results

Business Wire

HOPKINSVILLE, Ky. -- October 28, 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
nine month periods ended September 30, 2013. For the three month period ended
September 30, 2013, the Company’s net income available to common shareholders
was $536,000, or $0.07 per share, basic and diluted, compared to net income
available to common shareholders of $819,000, or $0.11 per share basic and
diluted, for the three month period ended September 30, 2012. For the nine
month period ended September 30, 2013, the Company’s net income available to
common shareholders was $2.7 million, or $0.36 per share, basic and diluted,
compared to a net income attributable to common shareholders of $2.2 million,
or $0.29 per share basic and diluted, for the nine month period ended
September 30, 2012.

Commenting on the third quarter results, John E. Peck, President and Chief
Executive Officer, said, “The Company’s net interest income for the three
month period ended September 30, 2013, improved compared to the three month
periods ending June 30, 2013, and September 30, 2012. The improved levels of
net interest income are the result of our ability to reduce our interest
expense by $298,000 on a linked quarter basis. As compared to the three month
period ended September 30, 2012, total interest expense declined by
approximately $1.6 million in the three month period ended September 30,
2013.”

Mr. Peck continued, “The Company’s non-interest expenses for the three and
nine month periods ending September 30, 2013, remain relatively unchanged as
compared to the same periods in 2012. On a linked quarter basis, non-interest
expenses declined $141,000 despite an increase in non-interest expense
associated with the termination of a merger agreement. We continue to focus on
operating as efficiently as possible while focusing our energies to grow our
loan portfolio in a safe and prudent manner.”

Mr. Peck concluded, “We recently announced a stock purchase program of 375,000
shares as well as an increase in our quarterly dividend payments. These
announcements reflect the confidence of the Board of Directors and Management
in the future of the Company.”

Financial Highlights

  *At September 30, 2013, the Company’s tangible book value was $12.92 per
    share and tangible commonequity ratio was 10.32%. The reduction in book
    value at September 30, 2013, as compared to December 31, 2012, 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 September 30, 2013, were
    10.71% and 18.36%, respectively. The Company’s Tier 1 Capital and Total
    Risk Based Capital Ratios were 11.04% and 19.20%, respectively.
  *At September 30, 2013, the Company’s allowance for loan loss totaled $9.4
    million, or 1.74% of total loans and 77.7% of non-accrual loans. In the
    nine month period ended September 30, 2013, the Company’s net charge offs
    totaled $2.4 million, or an annualized rate of 0.61% of average loans.
  *For the three month period ended September 30, 2013, the Company’s net
    interest margin was 3.04%, as compared to 2.67% for the three month period
    ended September 30, 2012, and 2.99% for the three month period ended June
    30, 2013.

Asset Quality

At September 30, 2013, the Company’s level of non-accrual loans totaled $12.1
million, as compared to $7.7 million at December 31, 2012, and $11.8 million
at June 30, 2013. A summary of non-accrual loans at September 30, 2013, and
December 31, 2012, is as follows:

                                                    
                                   September 30, 2013     December 31, 2012
                                   (Dollars in Thousands)
                                                          
One-to-four family mortgages       865                    2,243
Home equity line of credit         275                    66
Junior lien                        2                      4
Multi-family                       ---                    38
Construction                       ---                    ---
Land                               2,257                  2,768
Non-residential real estate        7,187                  1,134
Farmland                           744                    648
Consumer loans                     316                    145
Commercial loans                   482                    617
Total non-accrual loans            12,128                 7,663
                                                          

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

                                                                                        
                                                                                         Specific       Allowance
                                                Impaired Loans                           Allowance      for
September 30,                       Special                                          for            Performing
2013
                      Pass          Mention     Substandard     Doubtful     Total       Impairment     Loans
                      (Dollars in Thousands)
                      
One-to-four
family                $ 151,028     1,423       5,406           ---          157,857     755            1,386
mortgages
Home equity             34,195      ---         877             ---          35,072      66             218
line of credit
Junior liens            3,163       44          369             ---          3,576       17             85
Multi-family            28,433      ---         ---             ---          28,433      ---            350
Construction            9,182       176         ---             ---          9,358       ---            69
Land                    19,523      1,789       16,209          ---          37,521      828            298
Non-residential         135,008     2,183       14,304          ---          151,495     1,573          2,105
real estate
Farmland                45,275      807         4,826           ---          50,908      ---            439
Consumer loans          11,769      ---         540             ---          12,309      119            459
Commercial             52,089      96          2,746           ---          54,931      44             607
loans
                                                                                                        
Total                 $ 489,665     6,518       45,277          ---          541,460     3,402          6,016
                                                                                                        

At September 30, 2013, non-accrual loans plus other real estate owned totaled
$13.6 million, or 1.45% 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 nine month period ended September 30, 2013, is as
follows:

                  
                      Activity During 2013
                                                                               Gain    
                      Balance                                Reduction     (Loss)     Balance
                      12/31/2012   Foreclosures   Proceeds   in Values   on       9/30/2013
                                                                                 Sale
                      (Dollars in Thousands)
                      
One-to-four
family                $   258        758              (790  )      (8     )      34         252
mortgages
Multi-family              ---        ---              ---          ---           ---        ---
Construction              130        ---              (110  )      (110   )      90         ---
Land                      1,112      ---              ---          ---           ---        1,112
Non-residential           44         40               (18   )      (11    )      18         73
real estate
Consumer assets          4          7                (3    )      (4     )      (2   )     2
                                                                                            
Total                 $   1,548      805              (921  )      (133   )      140       1,439
                                                                                            

At September 30, 2013, the Company’s level of loans classified as substandard
was $45.3 million as compared to $66.6million at December 31, 2012. At
September 30, 2013, the Company’s classified loan to risk based capital ratio
was 39.2%. The Company’s specific reserve for impaired loans was $3.4 million
at September 30, 2013, and $3.8 million at December 31, 2012, respectively.

At September 30, 2013, the Company has no loans classified as Troubled Debt
Restructurings (“TDRs”) as compared to $11.0million at December 31, 2012. A
summary of the activity in loans classified as TDRs for the nine month period
ended September 30, 2013, is as follows:

                                                                               
                                                                             Removed
                                                             Removed due     from
                                                             to
                      Balance      New       Loss or         Payment or      (Taken to)      Balance
                      at                                                                     at
                      12/31/12     TDR       Foreclosure     Performance     Non-accrual     9/30/13
                      (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     )                      (2,575   )      ---
real estate
Farmland                865        ---       ---             (865     )      ---             ---
Consumer loans          5          ---       ---             (5       )      ---             ---
Commercial             9          222       ---            (231     )      ---            ---
loans
                                                                                             
Total                 $ 11,038     3,379     (1,257   )      (3,864   )      (9,296   )      ---
performing TDR
                                                                                             

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

                                                    
                                   September 30, 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 September 30, 2013, the Company’s net
interest income was $6.3 million, compared to$5.9million for the three month
period ended September 30, 2012, and $6.2million for the three month period
ended June30, 2013. For the three month period ended September 30, 2013, the
Company’s net interest margin was 3.04%, as compared to 2.67% for the three
month period ended September 30, 2012, and 2.90% for the three month period
ended June30, 2013.

For the nine month period ended September 30, 2013, the Company’s net interest
income was $18.9 million, as compared to $19.4 million for the nine month
period ended September 30, 2012. For the nine month period ended September 30,
2013, the Company’s net interest margin was 2.98%, as compared to 2.84% for
the nine month period ended September 30, 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 anticipates that the full
benefit of the deposit maturities will be realized in the fourth quarter of
2013. The Company does not anticipate that it can make material reductions in
its deposit 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 September 30, 2013, was
$1.8 million, as compared to $2.9 million for the three month period ended
September 30, 2012, and $2.8 million for the three month period ended June 30,
2013. Non-interest income for the nine month periods ended September 30, 2013,
and September 30, 2012, was $7.1 million and $7.5 million, respectively.

The decline in non-interest income for the three month period ended September
30, 2013, as compared to the three month periods ended September 30, 2012, and
June 30, 2013, was primarily the result of a $400,000 other than temporary
impairment on the trust preferred security in the Company’s investment
portfolio and a reduced amount of gains on the sale of securities. In June
2008, the Company purchased a $2.0 million private placement trust preferred
security issued by First Financial Services Corporation (“FFKY”) of
Elizabethtown, Kentucky. The security has a thirty year maturity and is
scheduled to pay an 8% annualized dividend quarterly. In October 2010, the
Company was informed that, pursuant to the trust preferred agreement, FFKY
would defer future dividends due to asset quality and capital issues at FFKY.

The Company has continually reviewed all quarterly regulatory filings to
determine the future viability of FFKY. Despite assetquality improvements at
FFKY, we have determined that it is unlikely that FFKY will be able to resume
dividend payments prior to the five year deferral period (set to expire in
October 2015) provided for in the trust preferred agreement. Therefore, we
have determined that the Company’s investment in FFKY is permanently impaired
and should be written down accordingly. At September 30, 2013, the Company
reduced the value of its FFKY investment by $400,000, or 20%, through an
expense other than temporary impairment charge.

The Company recognized net gains on the sale of securities of $201,000,
$944,000, and $789,000 for the three month periods ended September 30, 2013,
September 30, 2012, and June 30, 2013, respectively. The Company recognized
net gains on the sales of securities of $1.6 million, for the nine month
periods ended September 30, 2013, and September 30, 2012, respectively.

For the three and nine month periods ended September 30, 2013, the Company’s
revenue related to the origination of fixed rate mortgage loans was $147,000
and $559,000, respectively, as compared to $218,000 and $684,000 for the same
periods in 2012. The recent increase in the long term interest rates has
negatively affected the demand for secondary market mortgageloans, reducing
our income in the three month period ended September 30, 2013. The Company
earned $314,000 and $958,000 in commission from our financial services
production during the three and nine month periods ended September30, 2013,
as compared to $280,000 and $778,000, respectively, for the same periods in
2012. 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 $7.0 million, $7.0 million and $7.1 million for the
three month periods ended September30,2013,September 30, 2012, and June 30,
2013, respectively. For the nine months ended September 30, 2013, and
September 30, 2012, non-interest expenses were $21.4 million and $21.5
million, respectively.

On a linked quarter basis, professional services expenses declined by $56,000
despite the Company incurring charges in excessof $150,000 related to the
previously announced termination of a merger agreement with Sumner Bank and
Trust. On a linked quarter basis, the Company has experienced a modest decline
in most operating expense line items.

Balance Sheet

At September 30, 2013, consolidated assets were $935.5 million, a decrease of
$32.1 million as compared to December31,2012. The decline in assets is
largely the result of a $54.1 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 nine month period ended September 30, 2013, gross loans increased by
approximately $5.8 million, to $541.4 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 ofFulton,Kentucky. 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
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.
Consolidated Balance Sheets
(Dollars in thousands)


Assets                                  September 30, 2013   December 31,
                                                                  2012
                                           (unaudited)
                                                                  
Cash and due from banks                    $      24,566          31,563
Interest-earning deposits                        3,777           5,613
Cash and cash equivalents                         28,343          37,176
Federal Home Loan Bank stock, at                  4,428           4,428
cost
Securities available for sale                     322,776         356,345
Loans receivable, net of allowance
for loan losses of $9,418 at                      532,013         524,985
September 30, 2013, and $10,648 at
December 31, 2012
Accrued interest receivable                       5,042           5,398
Real estate and other assets owned                1,439           1,548
Bank owned life insurance                         9,574           9,323
Premises and equipment, net                       21,707          22,557
Deferred tax assets                               4,033           ---
Intangible asset                                  162             292
Other assets                                     5,936           5,637
Total assets                               $      935,453         967,689
                                                                  
Liabilities and Stockholders' Equity
Liabilities:
Deposits:
Non-interest-bearing accounts              $      98,437          94,083
Interest-bearing accounts
NOW accounts                                      155,655         147,047
Savings and money market accounts                 89,869          81,643
Other time deposits                              382,976         437,092
Total deposits                                    726,937         759,865
                                                                  
Advances from Federal Home Loan Bank              47,276          43,741
Repurchase agreements                             48,182          43,508
Subordinated debentures                           10,310          10,310
Advances from borrowers for taxes                 822             396
and insurance
Dividends payable                                 326             180
Deferred tax liability                            ---             568
Accrued expenses and other                       4,882           4,122
liabilities
Total liabilities                                838,735         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)


                                   September 30, 2013   December 31, 2012
                                      (unaudited)
                                                             
Stockholders' equity
Preferred stock, par value
$0.01 per share; authorized -
500,000 shares; no shares
outstanding at September 30,               ---               ---
2013, and 18,400 shares issued
and outstanding at December 31,
2012.
Common stock, par value $.01
per share; authorized
15,000,000 shares; 7,927,287
issued and 7,574,267                       79                79
outstanding at September 30,
2013, and 7,905,728 issued and
7,502,812 outstanding at
December 31, 2012
Common stock warrant                       ---               556
Additional paid-in-capital                 58,262            76,288
Retained earnings                          43,916            41,829
Treasury stock- preferred (at
cost, none at September 30,                ---               (18,400     )
2013, and 18,400 shares at
December 31, 2012)
Treasury stock- common (at
cost, 453,020 shares at                    (5,635    )       (5,076      )
September 30, 2013, and 402,916
shares at December 31, 2012)
Accumulated other comprehensive           96               9,723       
income, net of taxes
                                                             
Total stockholders' equity                96,718           104,999     
                                                             
Total liabilities and                 $    935,453          967,689     
stockholders' equity
                                                             

  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      For the Nine Month
                           Periods                    Periods
                           Ended September 30,        Ended September 30,
                                                                 
                           2013            2012       2013             2012
Interest and
dividend income:
Loans receivable           6,605           7,403      20,163           22,617
Investment in              1,641           2,014      5,237            6,823
securities, taxable
Nontaxable
securities available       544             573        1,676            1,695
for sale
Interest-earning           5              6          18              20
deposits
Total interest and         8,795          9,996      27,094          31,155
dividend income
                                                                       
Interest expense:
Deposits                   1,622           2,640      5,604            8,279
Advances from
Federal Home Loan          445             1,017      1,335            2,155
Bank
Repurchase                 245             236        717              721
agreements
Subordinated               184            185        548             553
debentures
Total interest             2,496          4,078      8,204           11,708
expense
                                                                       
Net interest income        6,299          5,918      18,890          19,447
Provision for loan         426            506        1,208           1,775
losses
                                                                       
Net interest income
after provision for        5,873           5,412      17,682           17,672
loan losses
                                                                       
Non-interest income:
Service charges            949             963        2,739            2,874
Merchant card income       245             212        727              620
Mortgage origination       147             218        559              684
revenue
Gain on sale of            201             944        1,617            1,618
securities
Other than temporary       (400   )        ---        (400    )        ---
impairment
Income from bank           88              80         250              238
owned life insurance
Financial services         314             280        958              778
commission
Other operating            225            200        630             641
income
Total non-interest         1,769          2,897      7,080           7,453
income
                                                                       

  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 Nine Month Periods
                     Ended September 30,               Ended September 30,
                                                                    
                     2013              2012            2013              2012
Non-interest
expenses:
Salaries and           3,735             3,447           11,297            10,515
benefits
Occupancy              878               875             2,605             2,614
Data                   652               610             1,948             1,863
processing
State bank tax         143               161             432               485
Intangible             33                48              130               178
amortization
Professional           493               435             1,435             1,320
services
Deposit
insurance and          137               419             548               1,272
examination
Advertising            292               324             933               952
expense
Postage and            149               146             427               444
communications
Supplies               159               64              388               280
expense
Loss on
disposal of            ---               5               ---               13
equipment
(Gain) loss on
real estate            (54       )       68              (7        )       287
owned
Real estate            78                19              186               90
owned expenses
Other                 289             350            1,060           1,196
operating
Total
non-interest          6,984           6,971          21,382          21,509
expense
                                                                         
Income before
income tax             658               1,338           3,380             3,616
expense
Income tax            122             263            694             652
expense
                                                                         
Net income            536             1,075          2,686           2,964
Less:
Dividend on
preferred              ---               229             ---               689
shares
Accretion
dividend on            ---              27              ---              83
preferred
shares
                                                                         
Net income
available to         $ 536            $ 819           $ 2,686          $ 2,192
common
shareholders
Net income
available to
common
shareholders
Per share,           $ 0.07           $ 0.11          $ 0.36           $ 0.29
basic
Per share,           $ 0.07           $ 0.11          $ 0.36           $ 0.29
diluted
Dividend per         $ 0.04           $ 0.02          $ 0.08           $ 0.06
share
                                                                         
Weighted
average shares        7,483,582       7,487,283      7,483,606       7,485,571
outstanding -
basic
Weighted
average shares        7,483,582       7,485,283      7,483,606       7,485,571
outstanding -
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
                                     9/30/2013     6/30/2013     Prior Quarter
                                                                 
Interest and dividend income:
Loans receivable                     6,605         6,676         (71       )
Investment in securities,            1,641         1,764         (123      )
taxable
Nontaxable securities                544           547           (3        )
available for sale
Interest-earning deposits            5            7             (2        )
Total interest and dividend          8,795        8,994         (199      )
income
                                                                 
Interest expense:
Deposits                             1,622         1,936         (314      )
Advances from Federal Home           445           446           (1        )
Loan Bank
Repurchase agreements                245           230           15
Subordinated debentures              184          182           2         
Total interest expense               2,496        2,794         (298      )
                                                                 
Net interest income                  6,299        6,200         99        
Provision for loan losses            426          406           20        
                                                                 
Net interest income after            5,873         5,794         79
provision for loan losses
                                                                 
Non-interest income:
Service charges                      949           937           12
Merchant card income                 245           259           (14       )
Mortgage origination revenue         147           212           (65       )
Gain on sale of securities           201           789           (588      )
Other than temporary                 (400   )      ---           (400      )
impairment
Income from bank owned life          88            87            1
insurance
Financial services commission        314           347           (33       )
Other operating income               225          197           28        
                                                                 
Total non-interest income            1,769        2,828         (1,059    )
                                                                 

  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
                               9/30/2013         6/30/2013       Prior Quarter
                                                                 
Non-interest expenses:
Salaries and benefits          $ 3,735             3,714         21
Occupancy expense                878               882           (4        )
Data processing expense          652               646           6
State deposit tax                143               147           (4        )
Intangible amortization          33                48            (15       )
expense
Professional services            493               549           (56       )
expense
Deposit insurance and            137               179           (42       )
examination expense
Advertising expense              292               308           (16       )
Postage and                      149               139           10
communications expense
Supplies expense                 159               93            66
(Gain) Loss on sale of           (54       )       12            (66       )
real estate owned
Real estate owned                78                32            46
expenses
Other operating expenses        289             375           (86       )
                                                  -86
Total non-interest              6,984           7,038         (140      )
expense
                                                                 
Income before income tax         658               1,584         (926      )
expense
Income tax expense              122             332           (210      )
                                                                 
Net income                      536             1,252         (716      )
Net income (loss)
available (attributable)
to common stockholders
Per share, basic               $ 0.07           $ 0.16          (0.09     )
Per share, diluted             $ 0.07           $ 0.16          (0.09     )
Dividend per share             $ 0.02           $ 0.02
                                                                 
Weighted average shares         7,483,582       7,488,906
outstanding - basic
Weighted average shares         7,483,582       7,488,906
outstanding - 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 nine month periods
ended September 30, 2013, and September30,2012, by $811,000 and $798,000,
respectively; for a tax equivalent rate using a cost of funds rate of 1.40%
forthe nine month period ended September 30, 2013, and 1.80% for the nine
month period ended September 30, 2012. The table adjusts tax-free loan income
by $6,000 for nine month period ended September 30, 2013, and $7,000 for the
nine month period ended September 30, 2012, for a tax equivalent rate using
the same cost of funds rate:

                                                                                 
                                                                                 Income
                    Average       Income and     Average         Average         and            Average
                    Balance       Expense        Rates           Balance         Expense        Rates
                    9/30/2013     9/30/2013      9/30/2013       9/30/2012       9/30/2012      9/30/2012
                    (Dollars in Thousands, Except Percentages)
                                                                                                
Loans               $ 527,054     $ 20,169       5.10   %        $ 545,464       $ 22,624       5.53   %
Investments           275,934       5,237        2.53   %          322,091         6,823        2.82   %
AFS taxable
Investment            71,269        2,488        4.66   %          67,714          2,493        4.91   %
AFS tax free
Interest
bearing              8,851        18          0.27   %         14,918         20          0.18   %
deposits
Total
interest              883,108      27,912      4.21   %          950,187        31,960      4.48   %
earning
assets
                                                                                                
Other assets         79,779                                      87,878
                                                                                                
Total assets        $ 962,887                                    $ 1,038,065
                                                                                                
Retail time         $ 370,917       4,018        1.44   %        $ 444,553         6,538        1.96   %
deposits
Brokered              44,002        525          1.59   %          52,558          754          1.91   %
deposits
Now accounts          163,493       952          0.78   %          145,015         888          0.82   %
MMDA and
savings               84,823        109          0.17   %          73,983          99           0.18   %
accounts
FHLB                  43,602        1,335        4.08   %          61,336          2,155        4.68   %
borrowings
Repurchase            41,556        717          2.30   %          40,968          721          2.35   %
agreements
Subordinated         10,310       548         7.09   %         10,310         553         7.15   %
debentures
                                                                                                
Total
interest              758,703      8,204       1.44   %          828,723        11,708      1.88   %
bearing
liabilities
                                                                                                
Non-interest
bearing               94,695                                       82,800
deposits
Other                 4,361                                        5,717
liabilities
                                                                                                
Stockholders’        105,128                                     120,825
equity
                                                                                                
                                                                                                
Total
liabilities
and                 $ 962,887                                    $ 1,038,065
stockholders’
equity
                                                                                                
Net interest                      $ 19,708                                      $ 20,252 
income
                                                                                                
                                                                                                
Interest rate                                    2.77   %                                       2.60   %
spread
Net interest                       2.98   %                                      2.84   %
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 September 30, 2013, and September30,2012, by $264,000 and $273,000,
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 September 30, 2013, and September 30,
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
                    9/30/2013     9/30/2013     9/30/2013       9/30/2012       9/30/2012      9/30/2012
                    (Dollars in Thousands, Except Percentages)
                                                                                               
Loans               $ 530,086     $ 6,607       4.99   %        $ 540,811       $ 7,405        5.48   %
Investments           260,326       1,641       2.52   %          308,578         2,014        2.61   %
AFS taxable
Investment            66,882        808         4.83   %          69,420          846          4.87   %
AFS tax free
Fed Funds            7,237        5          0.28   %         10,555         6           0.23   %
                                                                                               
Total
interest              864,531      9,061      4.19   %          929,364        10,271      4.42   %
earning
assets
                                                                                               
Other assets         75,930                                     87,537
                                                                                               
Total assets        $ 940,461                                   $ 1,016,901
                                                                                               
Retail time         $ 352,291       1,141       1.30   %        $ 430,568         2,064        1.92   %
deposits
Brokered              43,353        163         1.50   %          49,181          258          2.10   %
deposits
Now accounts          159,419       279         0.70   %          140,424         285          0.81   %
MMDA and
savings               87,687        39          0.18   %          75,031          33           0.18   %
accounts
FHLB                  43,634        445         4.08   %          58,962          1,017        6.90   %
borrowings
Repurchase            43,448        245         2.26   %          39,093          236          2.41   %
agreements
Subordinated         10,310       184        7.14   %         10,310          185          7.18   %
debentures
                                                                                               
Total
interest              740,142      2,496      1.35   %          803,569        4,078       2.03   %
bearing
liabilities
                                                                                               
Non-interest
bearing               96,343                                      84,079
deposits
Other                 5,013                                       6,284
liabilities
                                                                                               
Stockholders'        98,963                                     122,969
equity
                                                                                               
Total
liabilities
and                 $ 940,461                                   $ 1,016,901
stockholders'
equity
                                                                                               
Net interest                      $ 6,565                                      $ 6,193  
income
Interest rate                                   2.84   %                                       2.39   %
spread
Net yield on
interest                           3.04  %                                      2.67   %
earning
assets
                                                                                               

Contact:

HopFed Bancorp, Inc.
John E. Peck, 270-885-1171
President and CEO
 
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