Kentucky First Federal Bancorp Releases Earnings
FRANKFORT, Ky. and HAZARD, Ky., Feb. 1 /PRNewswire-FirstCall/ -- Kentucky First Federal Bancorp (Nasdaq: KFFB), the holding company for First Federal Savings and Loan Association of Hazard and First Federal Savings Bank of Frankfort, Kentucky, announced net earnings of $215,000, or $0.03 per diluted share, for the three months ended December 31, 2009, compared to $323,000, or $0.04 per diluted share, for the three months ended December 31, 2008, a decrease of $108,000 or 33.4% period to period. The Company reported a net loss of $147,000 or $0.02 per diluted share for the six months ended December 31, 2009, compared to net earnings of $635,000 or $0.08 per diluted share for the six months ended December 31, 2008.
The decrease in net earnings for the quarter ended December 31, 2009 was primarily attributable to a higher level of non-interest expense, as well as additional provision expense for loan losses. Non-interest expense increased $113,000 or 9.9% to $1.3 million for the recent quarter ended due primarily to higher FDIC insurance premiums as well as higher levels of employee compensation and benefits. As is the case for most FDIC-insured financial institution, the two banks owned by the Company are experiencing higher FDIC insurance premiums mandated to increase deposit insurance fund levels as a result of the recent increase in bank failures. The increase in compensation costs was partially caused by a lower level of deferred loan origination costs caused by fewer loans originated in the recently ended quarter than in the linked quarter. In addition, the Company recorded a $60,000 provision for loss on loans during the quarter just ended compared to no provision for the prior year quarter.
At December 31, 2009, assets had decreased $1.4 million, or 0.6%, to $239.5 million compared to $240.9 million at June 30, 2009. This decrease was attributed primarily to a decrease in investment securities of $4.3 million, or 20.7%, to $16.3 million at December 31, 2009. Funds from the decrease in investment securities were used to reduce FHLB advances and redeployed into loans. FHLB advances decreased $3.3 million or 8.3% to $36.8 million at December 31, 2009, while loans receivable, net, increased $2.0 million or 1.0% to $190.9 million at December 31, 2009.
At December 31, 2009, the Company's reported book value per share was $7.38.
This press release may contain statements that are forward-looking, as that term is defined by the Private Securities Litigation Act of 1995 or the Securities and Exchange Commission in its rules, regulations and releases. The Company intends that such forward-looking statements be subject to the safe harbors created thereby. All forward-looking statements are based on current expectations regarding important risk factors including, but not limited to, real estate values, the impact of interest rates on financing, changes in general economic conditions, legislative and regulatory changes that adversely affect the business of the Company and changes in the securities markets. Accordingly, actual results may differ from those expressed in the forward-looking statements, and the making of such statements should not be regarded as a representation by the Company or any other person that results expressed therein will be achieved.
Kentucky First Federal Bancorp is the parent company of First Federal Savings and Loan Association, which operates one banking office in Hazard, Kentucky and First Federal Savings Bank, which operates three banking offices in Frankfort, Kentucky. Kentucky First Federal Bancorp shares are traded on the Nasdaq National Market under the symbol KFFB. At December 31, 2009, the Company had approximately 7,861,134 shares outstanding of which approximately 60.4% was held by First Federal MHC.
SUMMARY OF FINANCIAL HIGHLIGHTS
Condensed Consolidated Balance Sheets
December 31, June 30,
2009 2009
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(In thousands, except share data)
(Unaudited) (Audited)
Assets
Cash and Cash Equivalents $4,101 $4,217
Investment Securities 16,299 20,550
Loans Held for Sale 105 230
Loans Receivable, net 190,902 188,931
Other Assets 28,066 26,973
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Total Assets $239,473 $240,901
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Liabilities
Deposits $142,552 $139,743
FHLB Advances 36,837 40,156
Other Liabilities 2,100 2,608
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Total Liabilities 181,489 182,507
Shareholders' Equity 57,984 58,394
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Total Liabilities and Equity $239,473 $240,901
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Book Value Per Share $7.38 $7.42
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Condensed Consolidated Statements of Operations
(In thousands, except share data)
Six months ended Three months ended
December 31, December 31,
2009 2008 2009 2008
---- ---- ---- ----
(Unaudited) (Unaudited)
Interest Income $5,759 $6,189 $2,865 $3,058
Interest Expense 2,648 3,057 1,282 1,497
Net Interest Income 3,111 3,132 1,583 1,561
Provision for Losses on Loans 1,028 15 60
Non-interest Income 128 114 61 59
Non-interest Expense 2,436 2,292 1,259 1,146
Income (Loss) Before Income Taxes (225) 939 325 474
Income Taxes (Benefit) (78) 304 110 151
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Net Income (Loss) $(147) $635 $215 $323
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Earnings (loss) per share:
Basic $(0.02) $0.08 $0.03 $0.04
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Diluted $(0.02) $0.08 $0.03 $0.04
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Weighted average outstanding
shares:
Basic 7,562,968 7,663,001 7,561,360 7,643,602
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Diluted 7,562,968 7,663,001 7,597,926 7,643,602
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SOURCE Kentucky First Federal Bancorp
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