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News : HopFed Bancorp, Inc.

 



HOPFED BANCORP, INC. REPORTS GROWTH IN NET INCOME
AND LOANS FOR 2017
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Net Income up 27.5% Year-over-Year
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Loans Increase 5.2% Year-over-Year to $641.9 Million
(Click here to read the full press release)

HOPKINSVILLE, KY (January 26, 2018) – HopFed Bancorp, Inc. (NASDAQ: HFBC) (the “Company”), the holding company for Heritage Bank USA, Inc. (the “Bank”), today reported operating results for the three and twelve month periods ended December 31, 2017. For the three month period ended December 31, 2017, net income was $225,000, or $0.04 per share, compared to $1.1 million, or $0.18 per share, for the three month period ended December 31, 2016. For the twelve month period ended December 31, 2017, net income rose 27.5% to $3.7 million, or $0.60 per share, compared to $2.9 million, or $0.47 per share, for the twelve month period ended December 31, 2016. The results for the three months and year ended December 31, 2017 included a charge of $980,000, or $0.16 per share, related to the write-down of the Company’s deferred tax asset after President Trump signed the Tax Cuts and Jobs Act of 2017 that reduced future federal corporate tax rates.

Commenting on the fourth quarter results, John E. Peck, President and Chief Executive Officer, said, “We finished 2017 with a very strong year and reported record balances of loans. Our earnings showed solid progress compared with 2016 and our momentum more than offset the fourth quarter tax charge that arose from the newly enacted tax legislation. The write-down of the deferred tax asset had no effect on our asset quality and financial strength. We anticipate that the Company will recover our write-down of the deferred tax asset in fifteen months through lower future income taxes. We remain confident in our Company’s future earning potential due to our strong asset quality and a vibrant local economy.”

  • Financial Highlights
    In the three month period ended December 31, 2017, loan growth was $11.7 million, representing an annualized growth rate of 7.4%. For the year ended December 31, 2017, loan growth was $31.5 million, or 5.2%, compared to December 31, 2016. At December 31, 2017, total loans originated and outstanding in the Nashville, Tennessee loan production office were $68.6 million, compared to $42.5 million at December 31, 2016.
  • Non-accrual loans declined from $9.1 million, or 1.49% of total loans, at December 31, 2016 to $1.3 million, or 0.20% of total loans, at December 31, 2017. Loans classified as impaired were $29.3 million at December 31, 2016 and $10.8 million at December 31, 2017.
  • In the three month period ended December 31, 2017, the Company sold foreclosed assets totaling $1.7 million for a net gain of $80,000. At December 31, 2017, the Company’s non-performing asset ratio improved to 0.52%, compared to 1.29% of total assets at December 31, 2016.
  • For the three month period ended December 31, 2017, the Company purchased 50,903 shares of treasury stock at a weighted average cost of $14.23 per share. For the year ended December 31, 2017, the Company purchased 92,224 shares of treasury stock at a weighted average cost of $14.19 per share. At December 31, 2017, the Company held 1,338,360 shares of treasury stock with a weighted average cost of $12.44 per share. The Company may purchase an additional 300,000 shares of treasury stock under our current repurchase program.

(Click here to read the full press release)

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