SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
----------------------------
FORM 10-Q
(Mark One)
|X| QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended March 31, 1999
OR
|_| TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
Commission File Number: 000-23667
HOPFED BANCORP, INC.
------------------------------------------------------
(Exact name of registrant as specified in its charter)
Delaware 61-1322555
- ------------------------------- -------------------
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
2700 Fort Campbell Boulevard, Hopkinsville, Kentucky 42240
- ---------------------------------------------------- ----------
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (502) 885-1171
Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding 12 months (or for such shorter period that the
registrant was required to file such reports), and (2) has been subject to such
filing requirements for the past ninety days. Yes [X] No
As of March 31, 1999, 4,033,625 shares of Common Stock were issued and
outstanding.
<PAGE>
CONTENTS
PAGE
----
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements
Consolidated Statements of Financial Condition as of March 31, 1999
and December 31, 1998................................... 2
Consolidated Statements of Income for the Three-Month
Periods Ended March 31, 1999 and March 31, 1998......... 3
Consolidated Statements of Comprehensive Income for
the Three-Month Periods Ended March 31, 1999 and 1998... 4
Consolidated Statements of Cash Flows for the Three-Month
Periods Ended March 31, 1999 and March 31, 1998......... 5
Notes to Unaudited Condensed Financial Statements................ 6
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations..................... 7
Item 3. Quantitative and Qualitative Disclosures About
Market Risk............................................. 11
SIGNATURES................................................................ 12
1
<PAGE>
PART I. FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
HOPFED BANCORP, INC.
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
<TABLE>
<CAPTION>
March 31, December 31,
ASSETS 1999 1998
------------------- ------------------
(Unaudited)
(In thousands)
<S> <C> <C>
Cash and due from banks................................. $ 1,698 $ 1,905
Interest-bearing deposits in Federal Home
Loan Bank ("FHLB")................................... -- 214
Federal funds sold...................................... 24,135 9,685
Investment securities available for sale................ 69,216 68,139
Investment securities held to maturity
(Estimated market values of $12,033 and
$27,634 at March 31, 1999
and December 31, 1998, respectively)................. 12,155 27,354
Loans receivable, net................................... 109,613 108,807
Accrued interest receivable............................. 1,049 1,157
Premises and equipment, net............................. 2,522 2,546
Other assets............................................ 111 225
----------- ----------
Total assets................................... $ 220,499 $ 220,032
=========== ==========
LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities:
Deposits............................................. $ 155,513 $ 154,816
Federal income taxes................................. 3,160 3,269
Advance payments from borrowers for tax
and insurance...................................... 231 166
Other liabilities.................................... 717 648
----------- ----------
Total liabilities.............................. 159,621 158,899
----------- ----------
Shareholders' Equity:
Common stock......................................... 40 40
Additional paid in capital........................... 39,571 39,546
Retained earnings, substantially restricted.......... 19,296 18,984
Unallocated ESOP shares.............................. (2,911) (2,933)
Accumulated other comprehensive income............... 4,882 5,496
----------- ----------
Total shareholders' equity..................... 60,878 61,133
----------- ----------
Total liabilities and shareholders' equity..... $ 220,499 $ 220,032
=========== ==========
</TABLE>
See accompanying Notes to Unaudited Condensed Financial Statements.
2
<PAGE>
HOPFED BANCORP, INC.
CONSOLIDATED STATEMENTS OF INCOME
(UNAUDITED)
<TABLE>
<CAPTION>
For the Three Months
Ended March 31,
----------------------------------------------
1999 1998
---- ----
(Dollars in thousands, except per share data)
Interest income:
<S> <C> <C>
Interest on loans.................................... $ 2,093 $ 2,042
Interest and dividends on investments................ 1,199 1,097
Time deposit interest income......................... 208 1,177
----------- -------------
Total interest income.............................. 3,500 4,316
Interest expense:
Interest on deposits................................. 1,773 2,409
----------- -------------
Net interest income..................................... 1,727 1,907
Provision for loan losses............................... 5 5
----------- -------------
Net interest income after provision for loan losses..... 1,722 1,902
----------- -------------
Noninterest income:
Loan and other service fees.......................... 101 117
Other, net........................................... 11 18
----------- -------------
Total noninterest income........................... 112 135
----------- -------------
Noninterest expenses:
Salaries and benefits................................ 624 351
Federal insurance premium............................ 23 28
Occupancy expense, net............................... 47 40
Data processing...................................... 37 28
Other operating expenses............................. 149 131
----------- -------------
Total noninterest expenses......................... 880 578
----------- -------------
Income before income taxes.............................. 954 1,459
Income tax expense...................................... 362 491
----------- -------------
Net income.............................................. $ 592 $ 968
=========== =============
Basic net income per share.............................. $ .16 $ .26
Diluted net income per share............................ $ .16 $ .26
Dividends per share..................................... $ .075 $ --
============= =============
Weighted average:
Common shares................................. 4,033,625 4,033,625
Less: Unallocated ESOP shares................ 293,267 322,690
----------- -------------
3,740,358 3,710,935
=========== =============
</TABLE>
See accompanying Notes to Unaudited Condensed Financial Statements.
3
<PAGE>
HOPFED BANCORP, INC.
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(UNAUDITED)
<TABLE>
<CAPTION>
For the Three Months Ended March 31
------------------------------------------
1999 1998
---- ----
(In thousands)
<S> <C> <C>
Net income $ 592 $ 968
Other comprehensive income
Unrealized holding gains (losses) arising
during period net of tax of $316 and $223 for the
three months ended March 31, 1999
and 1998, respectively (614) 433
Less: reclassification adjustment for gains included
in net income 0 0
----------- ----------
Comprehensive income (loss) $ (22) $ 1,401
=========== ==========
</TABLE>
See accompanying Notes to Unaudited Condensed Financial Statements.
4
<PAGE>
HOPFED BANCORP, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
<TABLE>
<CAPTION>
For the Three Months Ended March 31,
------------------------------------
1999 1998
---- ----
(In thousands)
Cash flows from operating activities:
<S> <C> <C>
Net income ............................................ $ 592 $ 968
Adjustments to reconcile net income to net cash
Provided by operating activities:
Deferred income taxes ............................... 11 8
Provision for loan losses ........................... 5 5
Provision for depreciation .......................... 28 23
FHLB stock dividend ................................. (32) (31)
Accretion of investment security discounts .......... (12) (11)
Amortization of investment security premiums ........ 7 --
Unallocated ESOP shares ............................. 25 --
Decrease in:
Accrued interest receivable ......................... 108 487
Other assets ........................................ 114 330
Increase (decrease) in:
Current income taxes payable ........................ 196 127
Accrued expenses and other liabilities .............. 69 (379)
--------- ---------
Net cash provided by operating activities ........... 1,111 1,527
--------- ---------
Cash flows from investing activities:
Net decrease in interest earning deposits in FHLB ..... 214 2,486
Net (increase) decrease in federal funds sold ......... (14,450) 118,165
Proceeds from maturities of held-to-maturity securities 15,201 13,745
Proceeds from sale of available-for-sale
securities .......................................... 3,292 408
Purchases of available for sale securities ............ (5,266) (10,942)
Net increase in loans ................................. (811) (1,194)
Purchases of premises/equipment ....................... (4) (144)
--------- ---------
Net cash provided by investing activities ............. (1,824) 122,524
--------- ---------
Cash flows from financing activities:
Net increase (decrease) in demand deposits ............ 1,850 (149,252)
Net decrease in time deposits ......................... (1,153) (11,003)
Increase in advance payments by
Borrowers for taxes and insurance ................... 65 101
Net proceeds from issuance of stock ................... -- 36,188
Net dividends paid .................................... (278) --
Payment on loan to ESOP ............................... 22 --
--------- ---------
Net cash provided (used) by financing activities ...... 506 (123,966)
---------
Increase (decrease) in cash and cash equivalents ......... (207) 85
Cash and cash equivalents, beginning of period ........... 1,905 1,264
--------- ---------
Cash and cash equivalents, end of period ................. 1,698 $ 1,349
========= =========
Supplemental disclosure of cash flow information
Cash paid for income taxes ............................ $ -- $ 360
--------- ---------
Cash paid for interest ................................ $ 1,770 $ 2,905
========= =========
</TABLE>
See accompanying Notes to Unaudited Condensed Financial Statements.
5
<PAGE>
NOTES TO UNAUDITED CONDENSED FINANCIAL STATEMENTS
(1) BASIS OF PRESENTATION
HopFed Bancorp, Inc. (the "Company") was formed at the direction of
Hopkinsville Federal Savings Bank (the "Bank") to become the holding
company of the Bank upon the conversion of the Bank from a federally
chartered mutual savings bank to a federally chartered stock savings
bank. The conversion was consummated on February 6, 1998. The Company's
primary assets are the outstanding capital stock of the converted Bank,
a portion of the net proceeds of the conversion, and a note receivable
from the Company's Employee Stock Ownership Plan ("ESOP"), and its sole
business is that of the converted Bank.
The accompanying unaudited financial statements have been prepared in
accordance with generally accepted accounting principles ("GAAP") for
interim financial information and with the instructions to Form 10-Q
and Article 10 of Regulation S-X. Accordingly, they do not include all
of the information and footnotes required by GAAP for complete
financial statements. In the opinion of management, all adjustments
(consisting of only normal recurring accruals) necessary for fair
representation have been included. The results of operations and other
data for the three month period ended March 31, 1999, are not
necessarily indicative of results that may be expected for the entire
fiscal year ending December 31, 1999.
(2) PENDING ACCOUNTING PRONOUNCEMENTS
The Financial Accounting Standards Board ("FASB") has issued Statement
of Financial Standards No. 133, "Accounting for Derivative Instruments
and for Hedging Activities." The Statement requires derivatives to be
recorded in the balance sheet as either an asset or liability measured
at its fair value. The Statement also requires that changes in the
derivatives' fair values be recognized currently in earnings unless
specific hedge accounting criteria are met. This statement is effective
for fiscal years beginning after June 15, 1999 (prospectively) and is
not expected to have a material effect on the Company's financial
statements.
In October 1998, the FASB issued Statement of Financial Accounting
Standards No. 134, "Accounting for Mortgage-Backed Securities Retained
after the Securitization of Mortgage Loans Held for Sale by a Mortgage
Banking Enterprise" ("SFAS 134"), an amendment of FASB Statement No.
65. SFAS 134 requires that after an entity securitizes mortgage loans
held for sale, it must classify the resulting retained mortgage-backed
securities or other retained interests based on its ability and intent
to sell or hold those investments. However, a mortgage banking
enterprise must classify as trading any retained mortgage-backed
securities that it commits to sell before or during the securitization
process. SFAS 134 conforms (1) the accounting for securities that have
been retained after the securitization of mortgage loans by a mortgage
banking enterprise with (2) the accounting for securities that have
been retained after the securitization of other types of assets by a
non-mortgage banking enterprise. This Statement is effective for the
first fiscal quarter after December 15,
6
<PAGE>
1998. However, since the Company and the Bank do not securitize
mortgage loans, the Company does not anticipate any financial
statement impact from adopting this Statement.
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
OF OPERATIONS
COMPARISON OF FINANCIAL CONDITION AT MARCH 31, 1999 AND DECEMBER 31, 1998
Total assets increased by $467,000, from $220.0 million at December 31,
1998 to $220.5 million at March 31, 1999. Federal funds sold increased from $9.7
million at December 31, 1998, to $24.1 million at March 31, 1999. Securities
held to maturity declined $15.2 million due to various issues maturing. At March
31, 1999, a substantial portion of these funds were in federal funds sold and
some had been reinvested in securities available for sale, which increased $1.1
million.
Deposits were continued to be priced less aggressively in an effort to
reduce the overall cost of funds. At March 31, 1999 deposits increased to $155.5
million from $154.8 million at December 31, 1998, a net increase of $700,000.
The average cost of deposits for each of the period ended March 31, 1999 and the
year ended December 31, 1998 was 4.65%. Management continually evaluates the
investment alternatives available to customers and adjusts the pricing on its
deposit products to more actively manage its funding costs while remaining
competitive in its market area.
The loan portfolio increased by $806,000 during the three months ended
March 31, 1999. Net loans totaled $109.6 million and $108.8 million at March 31,
1999 and December 31, 1998, respectively. The increase in the loan activity
during the three months ended March 31, 1998 was due to efforts to increase loan
originations using funds currently held in investment securities. For the three
months ended March 31, 1999, the average yield on loans was 7.67%, compared to
7.82% for the year ended December 31, 1998.
At March 31, 1999, investments classified as "held to maturity" were
carried at amortized cost of $12.2 million and had an estimated fair market
value of $12.0 million, and its securities classified as "available for sale"
had an estimated fair market value of $69.2 million, including Federal Home Loan
Mortgage Corporation stock with an estimated fair market value of $7.1 million,
compared to $8.0 million at December 31, 1998.
The allowance for loan losses totaled $263,000 at March 31, 1999, an
increase of $5,000 from the allowance of $258,000 at December 31, 1998. The
ratio of the allowance for loan losses to loans was .24% at each of March 31,
1999 and December 31, 1998. Also at March 31, 1999, non-performing loans were
$582,000, or .53% of total loans, compared to $287,000, or .26% of total loans,
at December 31, 1998, and the ratio of allowance for loan losses to
non-performing loans at March 31, 1999 and December 31, 1998 was 45% and 90%,
respectively. The determination of the allowance for loan losses is based on
management's analysis, performed on a quarterly basis. Various factors are
considered, including the market value of the underlying collateral, growth and
composition of the loan portfolio, the relationship of the allowance for loan
losses to outstanding loans, historical loss experience, delinquency trends and
prevailing economic
7
<PAGE>
conditions. Although management believes its allowance for loan losses is
adequate, there can be no assurance that additional allowances will not be
required or that losses on loans will not be incurred. Minimal losses on loans
have been incurred in prior years.
COMPARISON OF OPERATING RESULTS FOR THE THREE MONTHS ENDED MARCH 31, 1999 AND
1998
NET INCOME. Net income for the three months ended March 31, 1999 was
$592,000, compared to net income of $968,000 for the three months ended March
31, 1998. The decrease in net earnings for the three months resulted from a
decrease in time deposit interest income due to the elimination of net earnings
on subscription funds received in the conversion to stock form, and from the
expense of additional employee benefits.
NET INTEREST INCOME. Net interest income for the three months ended March
31, 1999 was $1.7 million, compared to $1.9 million for the three months ended
March 31, 1998. The decrease in net interest income for the three months ended
March 31, 1999 was primarily due to the elimination of net earnings on
subscription funds received in the conversion. For the three months ended March
31, 1999, the Bank's average yield on total interest-earning assets was 6.52%,
compared to 6.22% for the three months ended March 31, 1998, and its average
cost of interest-bearing liabilities was 4.65% for the three months ended March
31, 1999, compared to 4.04% for the three months ended March 31, 1998. As a
result, the Bank's interest rate spread for the three months ended March 31,
1999 was 1.87%, compared to 2.18% for the three months ended March 31, 1998, and
its net yield on interest-earning assets was 3.22% for the three months ended
March 31, 1999, compared to 2.75% for the three months ended March 31, 1998.
INTEREST INCOME. Interest income decreased by $816,000, from $4.3 million
to $3.5 million, or by 18.9%, during the three months ended March 31, 1999
compared to the same period in 1998. This decrease primarily resulted from
elimination of subscription funds received in the conversion. The average
balance of securities held to maturity declined $24.9 million, from $44.7
million at March 31, 1998 to $19.8 million at March 31, 1999. In addition,
average time deposits and other interest-earning cash deposits decreased $79.7
million, from $96.7 million at March 31, 1998 to $17.0 million at March 31,
1999. Overall, average total interest-earning assets decreased $63.3 million, or
22.8%, from March 31, 1998 to March 31, 1999. The ratio of average
interest-earning assets to average interest-bearing liabilities increased from
116.4% for the three months ended March 31, 1998 to 140.8% for the three months
ended March 31, 1999.
INTEREST EXPENSE. Interest expense decreased $636,000, or 26.4%, to $1.7
million for the three months ended March 31, 1999, compared to $2.4 million for
the same period in 1998. The decrease was primarily attributable to the interest
of approximately $400,000 which was paid in 1998 on subscriptions for common
stock in the conversion. The average cost of average interest-bearing deposits
increased from 4.04% at March 31, 1998 to 4.65% at March 31, 1999. Over the same
period, the average balance of deposits decreased $86.2 million, from $238.6
million at March 31, 1998 to $152.4 million at March 31, 1999, or 36.13%.
PROVISION FOR LOAN LOSSES. The allowance for loan losses is established
through a provision for loan losses based on management's evaluation of the risk
inherent in its loan portfolio and the general economy. Such evaluation
considers numerous factors including, general economic
8
<PAGE>
conditions, loan portfolio composition, prior loss experience, the estimated
fair value of the underlying collateral and other factors that warrant
recognition in providing for an adequate loan loss allowance. The Bank
determined that an additional $5,000 provision for loan loss was required for
the three months ended March 31, 1999.
NONINTEREST EXPENSES. There was a $302,000 increase in total noninterest
expenses in the three months ended March 31, 1999 compared to the same period in
1998, primarily due to a $273,000 increase in salaries and benefits.
INCOME TAXES. The effective tax rate for the three months ended March 31,
1999 was 37.9%, compared to 33.7% for the same period in 1998. The decrease in
income tax expense of $129,000 in the three month period compared to the same
period in 1998 was primarily due to a decrease of $505,000 in income before
income taxes.
LIQUIDITY AND CAPITAL RESOURCES. The Company has no business other than
that of the Bank and investing the net conversion proceeds retained by it.
Management believes that the net conversion proceeds retained by the Company
(approximately $16.7 million), earnings on such proceeds and principal and
interest payments on the ESOP loan, together with dividends that may be paid by
the Bank to the Company, will provide sufficient funds for its current needs.
However, no assurance can be given that the Company will not have a need for
additional funds in the future. The Bank is subject to certain regulatory
limitations with respect to the payment of dividends to the Company.
The Bank's principal sources of funds for operations are deposits from its
primary market areas, principal and interest payments on loans, proceeds from
maturing investment securities and the net conversion proceeds received by it.
The principal uses of funds by the Bank include the origination of mortgage and
consumer loans and the purchase of investment securities.
The Bank is required by current federal regulations to maintain specified
liquid assets of at least 5% of its net withdrawable accounts plus short-term
borrowings. Short-term liquid assets (those maturing in one year or less) may
not be less than 1% of the Bank's liquidity base. At March 31, 1999, the Bank
met all regulatory liquidity requirements, and management believes that the
liquidity levels maintained are adequate to meet potential deposit outflows,
loan demand and normal operations.
The Bank must satisfy three capital standards: a ratio of core capital to
adjusted total assets of 4.0%, a tangible capital standard expressed as 1.5% of
total adjusted assets, and a combination of core and "supplementary" capital
equal to 8.0% of risk-weighted assets. At March 31, 1999, the Bank exceeded all
regulatory capital requirements. The table below presents certain information
relating to the Bank's capital compliance at March 31, 1999.
9
<PAGE>
At March 31, 1999
-------------------------
Amount Percent
------ -------
(Dollars in thousands)
Tangible Capital . . . . . . . . . $ 36,549 18.41%
Core Capital . . . . . . . . . . . 36,549 18.41%
Risk-Based Capital . . . . . . . . 36,811 50.20%
At March 31, 1999, the Bank had outstanding commitments to originate loans
totaling $893,000. Management believes that the Bank's sources of funds are
sufficient to fund all of its outstanding commitments. Certificates of deposits
which are scheduled to mature in one year or less from March 31, 1999 totaled
$6.6 million. Management believes that a significant percentage of such deposits
will remain with the Bank.
THE YEAR 2000 PROBLEM
The Company is aware of the current concerns throughout the business
community of reliance upon computer software that does not properly recognize
the Year 2000 in date formats, often referred to as the "Year 2000 Problem." The
Year 2000 Problem is the result of software being written using two digits
rather than four digits to define the applicable year (i.e., "98" rather than
"1998"). A failure by a business to properly identify and correct a Year 2000
Problem in its operations could result in system failures or miscalculations. In
turn, this could result in disruptions of operations, including among other
things a temporary inability to process transactions, or otherwise engage in
routine business transactions on a day-to-day basis.
Operations of the Company depend on the successful operation on a daily
basis of its computer systems and a third party service bureau's equipment and
software. In its analysis of these systems, equipment and software, a plan of
action has been put in place by the Bank to minimize its risk exposure to the
Year 2000 Problem. As part of the plan, an oversight committee has been set up
to monitor Year 2000 compliance.
The Company's service provider has successfully completed the renovation of
its equipment as well as Phase One and Phase Two of its proxy tests involving
the participation of member institutions transmitting within a test institution
created for this purpose. Phase Three of these tests was completed in April
1999. Institution transmission tests were held in November 1998 with
satisfactory results. The service provider has contracted with a recovery site
in Philadelphia to cover Year 2000 contingencies and conducted Business Recovery
Tests in April to ensure proper transmission with member institutions. The
service provider believes its systems and equipment will be well prepared for
the Year 2000 Problem.
The Company has completed its renovation of computer equipment, assessment
of mission-critical systems, review of tests, and contingency planning. Due to
its preparations and the preparations of its service provider, a high level of
confidence exists within the management of the Company that disruptions to
normal business operations due to the Year 2000 Problem will be
10
<PAGE>
minimal. However, the risk of system failures cannot be eliminated. Also, the
Company cannot guarantee the performance of third parties as to which it has
material relationships.
As of March 31, 1999, the Company had incurred approximately $42,000 in
direct compliance costs associated with the Year 2000 Problem. The Company
estimates that $45,000 will approximate total direct compliance costs through
the Year 2000. The Company does not separately track internal costs incurred for
Year 2000 compliance, such costs are principally related to payroll
expenditures. Funding for such costs has been and will be derived from normal
operating cash flow.
FORWARD-LOOKING STATEMENTS
This Quarterly Report on Form 10-Q contains forward-looking statements.
Additional written or oral forward-looking statements may be made by the Company
from time to time in filings with the Securities and Exchange Commission or
otherwise. The words "believe," "expect," "seek," and "intend" and similar
expressions identify forward-looking statements, which speak only as of the date
the statement is made. Such forward-looking statements are within the meaning of
that term in Section 27A of the Securities Act of 1933, as amended, and Section
21E of the Securities Exchange Act of 1934, as amended. Such statements may
include, but are not limited to, projections of income or loss, expenditures,
acquisitions, plans for future operations, financing needs or plans relating to
services of the Company, as well as assumptions relating to the foregoing.
Forward-looking statements are inherently subject to risks and uncertainties,
some of which cannot be predicted or quantified. Future events and actual
results could differ materially from those set forth in, contemplated by or
underlying the forward-looking statements.
The Company does not undertake, and specifically disclaims, any obligation
to publicly release the results of revisions which may be made to
forward-looking statements to reflect the occurrence of anticipated or
unanticipated events or circumstances after the date of such statements.
ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
The Company monitors whether material changes in market risk have occurred
since year-end. The Company does not believe that material changes in market
risk exposures occurred during the three months ended March 31, 1999.
11
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
HOPFED BANCORP, INC.
Date: May 11, 1999 /s/ Bruce Thomas
-----------------------------------------
Bruce Thomas
President and Chief Executive Officer
Date: May 11, 1999 /s/ Peggy R. Noel
-----------------------------------------
Peggy R. Noel
Executive Vice President, Chief Financial
Officer and Chief Operations Officer
<TABLE> <S> <C>
<ARTICLE> 9
<CIK> 0001041550
<NAME> HopFed Bancorp, Inc.
<MULTIPLIER> 1,000
<CURRENCY> U.S. DOLLARS
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1999
<PERIOD-END> MAR-31-1999
<EXCHANGE-RATE> 1
<CASH> 1,698
<INT-BEARING-DEPOSITS> 0
<FED-FUNDS-SOLD> 24,135
<TRADING-ASSETS> 0
<INVESTMENTS-HELD-FOR-SALE> 69,216
<INVESTMENTS-CARRYING> 12,155
<INVESTMENTS-MARKET> 12,033
<LOANS> 109,613
<ALLOWANCE> 263
<TOTAL-ASSETS> 220,499
<DEPOSITS> 155,513
<SHORT-TERM> 0
<LIABILITIES-OTHER> 4,108
<LONG-TERM> 0
0
0
<COMMON> 40
<OTHER-SE> 60,838
<TOTAL-LIABILITIES-AND-EQUITY> 220,499
<INTEREST-LOAN> 2,093
<INTEREST-INVEST> 1,199
<INTEREST-OTHER> 208
<INTEREST-TOTAL> 3,500
<INTEREST-DEPOSIT> 1,773
<INTEREST-EXPENSE> 0
<INTEREST-INCOME-NET> 1,727
<LOAN-LOSSES> 5
<SECURITIES-GAINS> 0
<EXPENSE-OTHER> 880
<INCOME-PRETAX> 954
<INCOME-PRE-EXTRAORDINARY> 592
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 592
<EPS-PRIMARY> .158
<EPS-DILUTED> .158
<YIELD-ACTUAL> 3.22
<LOANS-NON> 0
<LOANS-PAST> 582
<LOANS-TROUBLED> 0
<LOANS-PROBLEM> 0
<ALLOWANCE-OPEN> 258
<CHARGE-OFFS> 0
<RECOVERIES> 0
<ALLOWANCE-CLOSE> 263
<ALLOWANCE-DOMESTIC> 263
<ALLOWANCE-FOREIGN> 0
<ALLOWANCE-UNALLOCATED> 0
</TABLE>
