HOPFED BANCORP, INC. (NASDAQ:HFBC) Files An 8-K Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain OfficersItem 5.02 Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers.
On September20, 2017, the Company’s Board of Directors reviewed the financial and operational performance of Heritage Bank, the Company’s wholly owned subsidiary, based on goals established by the Compensation Committee and the Company’s Board of Directors in February 2016. A summary of the goals, the respective weights and the Bank’s results for the year ended December31, 2016, are listed below:
|
Weight |
Summary of Criteria |
Threshold |
Target |
Maximium |
Actual Results |
|
30% |
Return on Assets | 0.26% | 0.35% | 0.68% | 0.38% |
|
30% |
Non-accrualloan/Totalloans | 2.25% | 2.10% | 1.25% | 1.29% |
|
20% |
Efficiency Ratio | 85.00% | 80.00% | 70.00% | 86.49% |
|
20% |
Board Discretion |
After conducting this review, the Company’s Board of Directors approved the Compensation Committee’s recommendation to make the following awards:
|
Named Executive |
Current Salary | Salary Increase | Cash Bonus | Award of RestrictedStock | ||
|
John E. Peck |
$ | 316,096 | — | $ | 25,814.51 | 3,706 |
|
Michael L. Woolfolk |
$ | 236,888 | — | $ | 19,345.85 | 2,778 |
|
Billy C. Duvall |
$ | 194,964 | — | $ | 15,922.06 | 2,286 |
|
Bailey C. Knight |
$ | 191,100 | — | $ | 15,606.50 | 2,241 |
The Compensation Committee and the Board of Directors made no changes to the current base salaries of Messrs. Peck, Woolfolk, Duvall and Knight as disclosed in the Company’s definitive proxy statement of the 2017 Annual Meeting of Stockholders. All restricted stock awards were granted under the 2013 HopFed Bancorp, Inc. Long Term Incentive Plan and will vest 33.3% on September20, 2018, 33.3% on September20, 2019 and 33.4% on September30, 2020. Restricted stock awards were valued based on the Company’s closing stock price on September20, 2017.
About HOPFED BANCORP, INC. (NASDAQ:HFBC)
HopFed Bancorp, Inc. is a savings and loan holding company that operates through its subsidiary, Heritage Bank USA, Inc. (the Bank). The Bank is a Kentucky state chartered commercial bank based in Hopkinsville, Kentucky, with branch offices in Kentucky and Tennessee. The business of the Bank primarily consists of attracting deposits from the general public and investing such deposits in loans secured by single family residential real estate and investment securities, including United States Government and agency securities, municipal and corporate bonds, collateralized mortgages obligations (CMOs), and mortgage-backed securities. The Bank also originates single-family residential/construction loans, and multi-family and commercial real estate loans, as well as loans secured by deposits, other consumer loans and commercial loans.