John E. Peck - Heritage Bank

1
Welcome
Shareholders
2013
2012
Annual Meeting
2
SENIOR
MANAGEMENT
•
•
•
•
John E. Peck, President & CEO
Mike Woolfolk, Executive VP & COO
Billy Duvall, Sr.VP & Chief Financial Officer
P. Michael Foley III, Sr.VP & Chief Credit
Officer
3
HopFed Bancorp, Inc.
Board of Directors
Gilbert E. Lee
Chairman of the Board and
Co-owner-C&L Rentals, L.L.C.
John E. Peck
President and Chief Executive Officer
H. Joseph Dempsey, M.D.
Ted Kinsey
Owner – Parkway Chrysler
Dr. Thomas I. Miller, CPA
Professor of Accounting-Murray State
University Executive Director-Murray State
University Foundation
Anesthesiologist
Steve Hunt
Clay Smith
Vice President – Agri-Power and AgriChem
President – Pennyrile Ford, Lincoln,
Mercury And Purchase Ford, Lincoln,
Mercury
Michael L. Woolfolk
Chief Operating Officer, Executive Vice
President and Secretary
4
5
•JP Morgan Chase Buys Troubled Washington Mutual Bank
•As
U.S.
lawmakers
grappled over a $700 billion
dollar bank bailout plan,
one of the nation's largest
banks - Washington Mutual
Incorporated - collapsed
under the weight of its
enormous bad bets on the
U.S.
mortgage
market.
From Washington, VOA's
Purnell Murdock reports on
what is seen as the largest
bank failure in U.S. history.
Bank Failures
•Since January 1, 2007
over 480 banks have failed
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Recent Accomplishments
•Leading the market share in all communities
Heritage Bank serves
•Approximately $15 million increase in checking
deposits this year over last year
•Substantial Reduction in Costs of Deposits
•Continued Improvement in Asset Quality
•All Regulatory restrictions lifted by OCC
•Application for State Banking Charter approved
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Recent Accomplishments
•Retired $50 million debt
•Repurchased Tarp and Warrant
•Acquisition of Sumner Bank and Trust
Announced
•Steady Growth in Stock Price
•Kentucky Best Places to Work 2011, 2012, 2013
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Billy Duvall
Chief Financial Officer
10
Non-Interest Deposits
(Millions)
120
94
100
100
80
80
68
60
51
40
27
32
52
69
57
37
19
20
4
7
0
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
Q1 2013
11
Return On Equity
2007 - 2012
Heritage Bank
All Institutions
Savings Instituations $500 mil. - $1 bil.
10.00%
8.00%
6.00%
4.00%
2.00%
0.00%
2007
-2.00%
2008
2009
2010
2011
2012
12
Classified Loans
$100,000
$90,368
$82,117
$75,785
$80,000
$66,604
$60,000
$49,260
$43,655
$40,000
$20,000
$0
December-11
March-12
June-12
September-12
December-12
March-13
13
Non Current Assets
Heritage Bank
All Institutions
Savings Instituations $500 mil. - $1 bil.
3.50%
3.00%
2.50%
2.00%
1.50%
1.00%
0.50%
0.00%
2007
2008
2009
2010
2011
2012
14
Net Loan Losses
Heritage Bank
All Institutions
Savings Instituations $500 mil. - $1 bil.
3.00%
2.50%
2.00%
1.50%
1.00%
0.50%
0.00%
2007
2008
2009
2010
2011
2012
15
Stock Price
HFBC
12
11.06
10
7.31
8
7.75
8.99
6
5.51
HFBC
4
2
0
0
16
John E. Peck
President / CEO
17
Opportunity
18
Transaction Rationale
Strategic Considerations
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Transaction Rationale
Financial Considerations
20
Attractive Market Demographics
21
Attractive Market Demographics
22
Attractive Market Demographics
23
Transaction Overview
24
Transaction Overview
25
Pro Forma Branch Map
26
2000-2007 M&A Precedent Transactional Analysis
Nashville MSA
27
HFBC Stock Price
Since Common Stock Offering
28
Welcome
Shareholders
2013
2012
Annual Meeting
29