Hop Fed Bancorp Inc reports 3Q earnings
HopFed Bancorp Inc, the holding company for Heritage Bank today reported results for the three and nine month periods ended September 30, 2012.
For the three month period ended September 30, 2012, the Company's net income available to common shareholders was $819,000, or $0.11 per share, basic and diluted, compared to net income available to common shareholders of $1.4 million, or $0.18 per share basic and diluted, for the three month period ended September 30, 2011. For the nine month period ended September 30, 2012, 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 loss attributable to common shareholders of $180,000, or ($0.02) per share basic and diluted, for the nine month period ended September 30, 2011.
Commenting on the third quarter results, John E. Peck, President and Chief Executive Officer, said the Company has reduced the amount of Federal Home Loan Bank borrowings by approximately $20.0 million during the quarter.
The reduction in FHLB borrowings, which include prepayment fees of approximately $480,000, reduces our balances outstanding related to wholesale funding. The prepayment penalties were offset by gains on the sales of securities, many of which were experiencing increasing high levels of cash flow and lower net yields due to national mortgage refinancing activity. We remain focused on reducing our cost of funds with approximately $96.8 million in time deposits maturing in the fourth quarter of 2012 with a weighted average cost of approximately 2.00%.
Mr. Peck concluded the Company experienced an $11.8 million reduction in classified loans during the quarter due. In addition, we have contracts to sell $2.7 million in non-performing loans scheduled to close during the fourth quarter of 2012 at or near their current book value. The Company continues to market other non-performing assets in an attempt to further reduce our level of classified assets. The Company continues to find success working with borrowers in an effort to address credit quality issues.
The Company and Bank's capital ratios continue to strengthen. At September 30, 2012, the Company's tangible book value was $13.88 and our tangible common equity ratio is 10.65%. The Bank's tier 1 leverage and total risk based capital ratios at September 30, 2012, are 10.91% and 19.7240700%, respectively.