8-K

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d)

of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): October 29, 2018

HOPFED BANCORP, INC.

(Exact name of Registrant as Specified in Charter)

Delaware	0-23667	61-1322555
(State or Other Jurisdiction of Incorporation)	(Commission File Number)	(I.R.S. Employer Identification No.)

4155 Lafayette Road, Hopkinsville, Kentucky 42240

(Address of Principal Executive Offices)

(270) 885-1171

Registrant’s telephone number, including area code

(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Emerging growth company  ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.  ☐

Item 2.02 Results of Operations and Financial Condition

On October 29, 2018, the Registrant announced its results of operations for the three and nine month periods ended September 30, 2018.

A copy of the press release, dated October 29, 2018 is attached hereto as Exhibit 99.1 and is incorporated herein by reference.

Item 9.01 Financial Statements and Exhibits.

(c) Exhibits

99.1 Press release dated October  29, 2018 – furnished pursuant to Item 2.02 as part of this Current Report on Form 8-K and is not deemed “filed” for purposes of Section  18 of the Securities and Exchange Act of 1934 or otherwise subject to the liabilities of Section 18.

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, hereunto duly authorized.

	HOPFED BANCORP, INC.
Dated: October 29, 2018	By:	/s/ John E. Peck
		John E. Peck
		President and Chief Executive Officer

EX-99.1

Exhibit 99.1

NEWS

FOR IMMEDIATE RELEASE	CONTACT:	John E. Peck
		President and CEO
		(270) 885-1171

HOPFED BANCORP, INC. REPORTS OPERATING

RESULTS IN THE THIRD QUARTER OF 2018

HOPKINSVILLE, KY (October 29, 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 nine month periods ended September 30, 2018. For the three month period ended September 30, 2018, net income was $1.2 million, or $0.20 per share, compared to $1.4 million, or $0.22 per share, for the three month period ended September 30, 2017. For the nine month period ended September 30, 2018, net income was $4.1 million, or $0.65 per share, compared to $3.5 million, or $0.56 per share, for the nine month period ended September 30, 2017.

Commenting on the results for the nine month period ended September 30, 2018, John E. Peck, President and Chief Executive Officer, said, “We are excited to report earnings growth of $0.09 per share, representing an increase of 16.1% in the nine month period ended September 30, 2018 compared to the nine month period ended September 30, 2017. For the nine month period ended September 30, 2018, net interest income was $21.6 million, an increase of $762,000 compared to the nine month period ended September 30, 2017.”

“The Company’s results of operations for the three month period ended September 30, 2018 were negatively affected by rising interest rates as linked quarter interest expense increased by $396,000 while the average balance of interest bearing liabilities declined by $5.7 million. On a linked quarter basis, total interest income increased $229,000 despite a $8.6 million decline in the average balance of investments available for sale. The Company’s gain on the sale of securities declined by $476,000 on a linked quarter basis.

At September 30, 2018, non-accrual loans were $1.8 million compared to $1.7 million at September 30, 2017. At September 30, 2018, loans classified as substandard were $11.0 million compared to $11.2 million at September 30, 2017. The Company’s current levels of substandard and non-accrual loans remain near historical low levels, which indicate that our credit quality remains strong.”

Financial Highlights

• At September 30, 2018, net loans totaled $663.8 million, representing an increase of $38.4 million, or 6.1%, compared to September 30, 2017. At September 30, 2018 and September 30, 2017, total loans originated and outstanding in the Nashville, Tennessee, loan production offices were $89.6 and $63.2 million, respectively. On a linked quarter basis, net loans declined by $8.4 million.

• The Company’s net interest margin for the three month period ended September 30, 2018 was 3.41% compared to 3.45% and 3.43% for the three month periods ended June 30, 2018 and September 30, 2017, respectively. The Company’s net interest margin for the nine month periods ended September 30, 2018 and September 30, 2017 were 3.42% and 3.37%, respectively.

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HFBC Reports Third Quarter Results

Page 2

October 29, 2018

Results of Operations

In the three month periods ended September 30, 2018 and September 30, 2017, interest income was $9.3 million and $8.6 million, respectively. The improvements in interest income are the result of a $33.4 million increase in the average balance of loans for the three month period ended September 30, 2018 compared to the three month period ended September 30, 2017. Improvements in the level of net interest income have been largely offset by higher funding cost due to the increase in short term interest rates. The Company’s interest expense has increased by $694,000 for the three month period ended September 30, 2018 compared to the three month period ended September 30, 2017 despite $4.3 million decline in average balance of interest bearing liabilities.

For the three month period ended September 30, 2018, non-interest income was $1.9 million, a $137,000 decline compared to the three month period ended September 30, 2017. This decline was largely the result of a $157,000 decline on gains on the sale of securities and a $63,000 decline in service charge income.

For the three month period ended September 30, 2018, non-interest expenses were $7.5 million, an increase of $344,000 compared to the three month period ended September 30, 2017. For the three month period ended September 30, 2018, salaries and benefits expense were $4.1 million, an increase of $215,000 compared to September 30, 2017. The increase in salaries and benefits expense was largely the result of a $48,000 increase in the cost of health insurance and a $95,000 increase in payroll expenses. For the three month period ended September 30, 2018, advertising expense and professional services expense were $329,000 and $489,000, respectively, compared to $240,000 and $409,000, respectively, for the three month period ended September 30, 2017. The increase in health insurance expense is largely the result of higher prescription drug cost while the increase in payroll expense is the result of annual raises give to employees each year. The increase in professional services is largely the result of higher legal expenses. In the three month period ended September 30, 2018, advertising expenses were in line with the previous three quarters but higher than in the three month period ended September 30, 2017.

On a linked quarter basis, the Company’s net interest income declined by $167,000 due to loan payoffs and increased interest expenses while non-interest income declined $471,000. The decline in linked quarter non-interest income was largely the result of a $476,000 decline on gains on the sale of securities and a $151,000 decline in mortgage origination income. On a linked quarter basis, non-interest expenses declined by $62,000.

For the nine month period ended September 30, 2018, net interest income was $21.6 million, an increase of $762,000 compared to September 30, 2017. The increase in net interest income was largely the result of a $35.4 million increase in the average balance of loans and an increase in short term rates. For the nine month period ended September 30, 2018, the Company’s provision for loan loss expense was $204,000 compared to $421,000 for the nine month period ended September 30, 2017. Total non-interest income declined by $161,000 in the nine month period ended September 30, 2018 compared to the nine month period ended September 30, 2017. The table below outlines the most significant changes in non-interest income for the nine month period ended September 30, 2018 and September 30, 2017:

	Nine month periods ended
	9/30/2018		9/30/2017		$ Change			% Change
	(Dollars in Thousands, Except Percentages)
Service charges	$	2,189	$	2,423	($	234	)		-9.66	%
Mortgage origination income		1,146		947		199			21.01	%
Gain on the sale of securities		513		178		335			188.20	%
Income from bank owned life insurance		219		402		(183	)		-45.52	%
Other operating income		481		877		(396	)		-45.15	%

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

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HFBC Reports Third Quarter Results

Page 3

October 29, 2018

Results of Operations (continued)

Income from bank owned life insurance was $183,000 higher in the nine month period ended September 30, 2017 compared to the same period in 2018 due to the payment of a death benefit in March 2017. For the nine month period ended September 30, 2018, other operating income was $481,000, a reduction of $396,000 compared to the nine month period ended September 30, 2017. A significant portion of this variance is the result of a one-time payment of $225,000 in 2017 from a company that provides a product to our customers at the time of a contract renewal.

For the nine month period ended September 30, 2018, total non-interest expenses were $22.6 million, an increase of $536,000 compared to the nine month period ended September 30, 2017. For the nine month period ended September 30, 2018, salaries and benefits expenses increased by $235,000 compared to the nine month period ended September 30, 2017. For the nine month period ended September 30, 2018, data processing and professional services expense increased by $251,000 and $233,000 compared to the nine month period ended September 30, 2017. The increase in data processing expenses is the result of a one-time $225,000 reimbursement of expenses from our debit card issuer in 2017. The increase in professional services expense is largely the result of increases in legal expenses.

Balance Sheet

At September 30, 2018, total assets were $904.9 million, compared to $917.5 million at December 31, 2017. For the nine month period ended September 30, 2018, the Company reduced cash and cash equivalent balances by $14.4 million and securities classified as available for sale by $25.5 million. The Company used this liquidity to fund gross loan growth (net of unearned income) of $26.5 million and offset a $27.1 million decline in total deposits. The competition for deposits is becoming increasingly aggressive and expensive, resulting in a higher cost of deposit ratio for the Company. In several rural markets in which the Company operates, the increase in pricing power for new commercial loans has not increased at the same pace as our funding cost. A summary of loans outstanding by type at September 30, 2018 and December 31, 2017 is as follows:

	September 30, 2018			December 31, 2017
	(Dollars in Thousands)
One-to-four family first mortgages	$	175,021		$	163,565
Home equity lines of credit		34,352			35,697
Second mortgages (closed end)		1,131			1,184
Multi-family		30,778			37,445
Construction		34,036			30,246
Land		11,534			14,873
Non-residential real estate		244,283			224,952
Farmland		33,349			36,851
Consumer loans		7,945			8,620
Commercial loans		96,448			88,938
Total loans, gross		668,877			642,371
Unearned income, net of fees		(503	)		(443	)
Less allowance for loan losses		(4,553	)		(4,826	)
Total loans		663,821			637,102

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

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HFBC Reports Third Quarter Results

Page 4

October 29, 2018

Asset Quality

The table below provides a history of the Company’s significant credit quality metrics for the dates listed below:

	9/30/2018			6/30/2018			3/31/2018			12/31/2017			9/30/2017
	(unaudited)			(unaudited)			(unaudited)			(audited)			(unaudited)
				(Dollars in Thousands, Except Percentages)
Loans past due 30-89 days		1,780			1,605			432			393			754
Loans past due 90 + days accruing interest		—			—			—			88			—
Total non-accrual loans		1,841			1,602			2,004			1,285			1,739
Total loans classified as substandard		11,005			11,491			14,082			10,780			11,217
Total performing TDR loans		3,518			3,253			3,255			3,163			3,371
Total foreclosed assets		3,533			3,427			3,329			3,369			4,975
Quarterly net charge offs		158			79			240			(336	)		2,451
Non-accrual loans / Total loans		0.28	%		0.24	%		0.30	%		0.20	%		0.28	%
Non-performing assets / Total assets		0.59	%		0.55	%		0.58	%		0.52	%		0.74	%
Allowance / Total loans		0.68	%		0.69	%		0.70	%		0.75	%		0.76	%
Allowance / Non-accrual loans		247.28	%		289.48	%		232.24	%		375.74	%		275.96	%
Substandard loans / Risk based capital		10.68	%		11.24	%		13.94	%		10.72	%		11.08	%
Quarterly net charge off ratio (annualized)		0.09	%		0.05	%		0.15	%		-0.21	%		1.54	%
Total risk based capital		103,085			102,211			100,997			100,535			101,228
FTE Employees		225			226			227			229			227

The Company

HopFed Bancorp, Inc. is the holding company for Heritage Bank USA, Inc. (“Heritage Bank”), a Kentucky state chartered commercial bank. Heritage Bank has eighteen offices in western Kentucky and middle Tennessee and loan production offices in Nashville, Murfreesboro and Brentwood, Tennessee. The Company offers a broad line of financial services and products with the personalized focus of a community banking organization. More information about HopFed Bancorp and Heritage Bank is located 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 and is subject to various risks, uncertainties, and assumptions. Should one or more of these risks or uncertainties materialize, or should the underlying assumptions prove incorrect, actual results may vary materially from those anticipated, estimated or expected. 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 in filings 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.

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HFBC Reports Third Quarter Results

Page 5

October 29, 2018

HOPFED BANCORP, INC.

Consolidated Condensed Balance Sheets

(Dollars in Thousands)

	9/30/2018			6/30/2018			3/31/2018			12/31/2017			09/30/2017
	(unaudited)			(unaudited)			(unaudited)						(unaudited)
Assets
Cash and due from banks		21,987			16,399			18,472			37,965			23,469
Interest-earning deposits in banks		8,687			2,955			3,149			7,111			9,842
Cash and cash equivalents		30,674			19,354			21,621			45,076			33,311
Federal Home Loan Bank stock, at cost		4,428			4,428			4,428			4,428			4,428
Securities available for sale		159,282			168,983			180,212			184,791			192,287
Loans held for sale		1,873			1,126			2,706			1,539			1,749
Loans receivable		668,374			676,891			665,178			641,928			630,202
Allowance for loan losses		(4,553	)		(4,637	)		(4,654	)		(4,826	)		(4,799	)
Accrued interest receivable		3,390			3,253			3,212			3,589			3,414
Foreclosed assets		3,533			3,427			3,329			3,369			4,975
Bank owned life insurance		10,587			10,512			10,439			10,368			10,287
Premises and equipment, net		22,072			22,365			22,619			22,700			22,945
Deferred tax assets		2,399			2,320			2,127			1,764			2,292
Other assets		2,816			4,640			2,748			2,784			2,973
Total assets		904,875			912,662			913,965			917,510			904,064
Liabilities:
Deposits:
Non-interest-bearing accounts		134,297			136,004			139,093			136,197			128,184
Interest-bearing accounts
NOW accounts		185,380			198,691			219,483			208,496			196,315
Savings and money market accounts		97,347			97,552			101,153			104,347			97,929
Other time deposits		309,890			300,941			287,077			304,969			308,801
Total deposits		726,914			733,188			746,806			754,009			731,229
Advances from Federal Home Loan Bank		33,000			38,000			25,000			23,000			31,000
Repurchase agreements		42,043			39,648			41,792			38,353			37,829
Subordinated debentures		10,310			10,310			10,310			10,310			10,310
Advances from borrowers for taxes and insurance		1,432			1,256			780			808			1,188
Accrued expenses and other liabilities		3,737			3,091			2,524			3,618			3,273
Total liabilities		817,436			825,493			827,212			830,098			814,829

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

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HFBC Reports Third Quarter Results

Page 6

October 29, 2018

HOPFED BANCORP, INC.

Consolidated Condensed Balance Sheets, Continued

(Dollars in Thousands, Except Percentages, Share and Per Share Data)

	9/30/2018			6/30/2018			3/31/2018			12/31/2017			09/30/17
	(unaudited)			(unaudited)			(unaudited)						(unaudited)
Stockholders’ equity:
Common stock, par value $.01		80			80			80			80			80
Additional paid-in-capital		59,035			58,948			58,875			58,825			58,777
Retained earnings		53,980			53,179			51,957			51,162			51,646
Treasury stock- common, at cost		(16,706	)		(16,706	)		(16,684	)		(16,655	)		(15,931	)
Unearned ESOP Shares, at cost		(5,457	)		(5,606	)		(5,758	)		(5,901	)		(6,125	)
Accumulated other comprehensive income, net of taxes		(3,493	)		(2,726	)		(1,717	)		(99	)		788
Total stockholders’ equity		87,439			87,169			86,753			87,412			89,235
Total liabilities and stockholders’ equity		904,875			912,662			913,965			917,510			904,064
Additional Capital Information
	9/30/2018			6/30/2018			3/31/2018			12/31/2017			09/30/17
	(unaudited)			(unaudited)			(unaudited)						(unaudited)
Preferred stock authorized		500,000			500,000			500,000			500,000			500,000
Preferred stock outstanding		—			—			—			—			—
Common shares authorized		15,000,000			15,000,000			15,000,000			15,000,000			15,000,000
Common shares issued		7,991,170			7,989,655			7,988,983			7,976,131			7,976,131
Common shares outstanding		6,649,190			6,647,675			6,648,589			6,637,771			6,688,674
Treasury shares		1,341,980			1,341,980			1,340,394			1,338,360			1,287,457
Unearned ESOP shares		400,768			412,091			423,679			434,548			465,861
Book value per share (excludes unearned ESOP shares)	$	13.99		$	13.98		$	13.94		$	14.09		$	14.34
Tier 1 leverage ratio		10.9	%		10.7	%		10.6	%		10.6	%		10.9	%
Total risk based capital ratio		15.9	%		15.6	%		15.5	%		16.0	%		16.3	%
Common equity tier 1 ratio		15.2	%		14.9	%		14.8	%		15.2	%		15.6	%

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

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HFBC Reports Third Quarter Results

Page 7

October 29, 2018

HOPFED BANCORP, INC.

Consolidated Condensed Quarterly Statement of Income

(Dollars in Thousands)

(Unaudited)

					For the three month periods ended							For the nine month period Ended September 30,
	9/30/2018		6/30/2018		3/31/2018		12/31/2017			09/30/17		2018		2017
	(Unaudited)		(Unaudited)		(Unaudited)		(Unaudited)			(Unaudited)		(Unaudited)		(Unaudited)
Interest and dividend income:
Loans receivable		8,164		7,858		7,477		7,208			7,260		23,499		20,959
Investment in securities, taxable		970		1,033		1,079		1,081			1,124		3,082		3,397
Nontaxable securities available for sale		189		208		213		218			233		610		796
Interest-earning deposits		21		16		29		34			18		66		62
Total interest and dividend income		9,344		9,115		8,798		8,541			8,635		27,257		25,214
Interest expense:
Deposits		1,694		1,392		1,244		1,240			1,206		4,330		3,570
FHLB borrowings		210		134		92		97			89		436		151
Repurchase agreements		188		171		154		117			130		513		352
Subordinated debentures		139		138		122		112			112		399		324
Total interest expense		2,231		1,835		1,612		1,566			1,537		5,678		4,397
Net interest income		7,113		7,280		7,186		6,975			7,098		21,579		20,817
Provision for loan losses		74		62		68		56			71		204		421
Net interest income after provision for loan losses		7,039		7,218		7,118		6,919			7,027		21,375		20,396
Non-interest income:
Service charges		756		727		706		801			819		2,189		2,423
Merchant card income		316		330		308		306			299		954		916
Mortgage orgination revenue		338		489		319		374			335		1,146		947
Gain (loss) on sale of securities		5		481		27		(9	)		162		513		178
Income from bank owned life insurance		75		73		71		81			95		219		402
Financial services commission		184		177		138		117			134		499		419
Other operating income		219		87		175		198			186		481		877
Total non-interest income		1,893		2,364		1,744		1,868			2,030		6,001		6,162

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

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HFBC Reports Third Quarter Results

Page 8

October 29, 2018

HOPFED BANCORP, INC.

Consolidated Condensed Statements of Income, Continued

(Dollars in Thousands, Except Per Share Data)

(Unaudited)

					For the three month periods ended									For the nine month period Ended September 30,
	9/30/2018		6/30/2018		3/31/2018			12/31/2017			9/30/2017			9/30/2018		9/30/2017
	(Unaudited)		(Unaudited)		(Unaudited)			(Unaudited)			(Unaudited)			(Unaudited)		(Unaudited)
Non-interest expenses:
Salaries and benefits		4,134		4,116		4,117			3,917			3,919			12,367		12,132
Occupancy		785		747		782			700			716			2,314		2,220
Data processing		807		765		784			779			795			2,356		2,105
State deposit tax		158		160		169			170			169			487		600
Professional services		489		499		466			1,095			409			1,454		1,221
Advertising		329		338		308			365			240			975		989
Foreclosure, net		20		21		(6	)		(80	)		(25	)		35		89
Loss on sale of asset		1		9		—			(1	)		—			10		3
Other operating expenses		789		919		920			861			945			2,628		2,731
Total non-interest expense		7,512		7,574		7,540			7,806			7,168			22,626		22,090
Income before income tax expense		1,420		2,008		1,322			981			1,889			4,750		4,468
Income tax expense		180		323		196			1,159			486			699		989
Net income		1,240		1,685		1,126			(178	)		1,403			4,051		3,479
Net income per share
Basic	$	0.20	$	0.28	$	0.18		($	0.03	)	$	0.22		$	0.65	$	0.56
Diluted	$	0.20	$	0.28	$	0.18		($	0.03	)	$	0.22		$	0.65	$	0.56
Dividend per share	$	0.07	$	0.07	$	0.05		$	0.05		$	0.05		$	0.19	$	0.14

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

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HFBC Reports Third Quarter Results

Page 9

October 29, 2018

HOPFED BANCORP, INC.

Selected Financial Data

(Dollars in Thousands, Except Percentages)

							Three month periods ended									Nine month periods ended
	9/30/2018			6/30/2018			3/31/2018			12/31/2017			9/30/2017			9/30/2018			9/30/2017
	(Unaudited)			(Unaudited)			(Unaudited)						(Unaudited)			(Unaudited)			(Unaudited)
Average Balance Sheet Data
Loans, net of allowance		670,314			666,301			647,204			631,463			636,955			661,553			626,123
Available for sale taxable securities		146,225			153,723			160,582			164,667			173,624			153,457			175,891
Available for sale tax free securities		24,533			25,670			26,856			27,361			29,090			25,674			31,941
Interest bearing deposits held in banks		3,825			3,735			6,030			8,418			4,351			3,968			6,490
Average earning assets		844,897			849,429			840,672			831,909			844,020			844,652			840,445
Average non-earning assets		63,618			63,565			69,290			74,856			64,913			66,114			67,884
Average assets		908,515			912,994			909,962			906,765			908,933			910,766			908,329
Average interest bearing deposits		596,666			608,312			612,019			611,371			612,655			605,610			622,068
Repurchase agreements		38,611			38,604			39,072			34,677			37,978			38,760			39,638
FHLB borrowings		37,989			32,011			23,656			25,174			26,909			31,271			17,222
Subordinated debentures		10,310			10,310			10,310			10,310			10,310			10,310			10,310
Total average interest bearing liabilities		683,576			689,237			685,057			681,532			687,852			685,951			689,238
Average non-interest bearing deposits		131,615			133,075			133,412			132,624			126,039			132,695			126,973
Average other non-interest bearing liabilities		5,572			4,099			3,887			3,365			5,828			4,436			4,257
Average total equity		87,752			86,583			87,336			89,244			89,214			87,684			87,861
							Three month periods ended									Nine month periods ended
	9/30/2018			6/30/2018			3/31/2018			12/31/2017			9/30/2017			9/30/2018			9/30/2017
	(Unaudited)			(Unaudited)			(Unaudited)						(Unaudited)			(Unaudited)			(Unaudited)
Tax equivalent yield / Cost of:
Loans, fully tax equivalent		4.89	%		4.72	%		4.62	%		4.58	%		4.57	%		4.73	%		4.47	%
Available for sale taxable securities		0.27	%		2.69	%		2.69	%		2.63	%		2.59	%		2.68	%		2.58	%
Available for sale tax free securities, fully tax equivalent		3.86	%		4.04	%		3.96	%		4.76	%		4.78	%		3.95	%		4.97	%
Average yield of interest bearing deposits		1.88	%		1.71	%		1.92	%		1.65	%		1.65	%		2.22	%		1.27	%
Yield on total interest earning assets		4.46	%		4.32	%		4.21	%		4.15	%		4.15	%		4.32	%		4.07	%
Cost of total average deposits		0.93	%		0.75	%		0.67	%		0.67	%		0.65	%		0.78	%		0.64	%
Cost of average total interest bearing liabilities		1.31	%		1.06	%		0.94	%		0.92	%		0.89	%		1.10	%		0.85	%
Fully tax equivalent interest rate spread		3.15	%		3.26	%		3.27	%		3.25	%		3.26	%		3.22	%		3.22	%
Fully tax equivalent net interest margin		3.41	%		3.45	%		3.45	%		3.41	%		3.43	%		3.42	%		3.37	%
Net income		1,240			1,685			1,126			(178	)		1,403			4,051			3,479
ROA		0.55	%		0.74	%		0.49	%		-0.80	%		0.62	%		0.59	%		0.51	%
Annualized return on equity		6.23	%		7.78	%		5.16	%		-0.08	%		6.29	%		6.16	%		5.28	%
Efficiency ratio		82.66	%		78.12	%		83.89	%		80.25	%		77.41	%		81.73	%		80.58	%

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

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