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Kentucky First Federal Bancorp Releases Earnings

HAZARD, FRANKFORT, DANVILLE, and LANCASTER, Ky., Feb. 6, 2015 (GLOBE NEWSWIRE) -- 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 $579,000 or $0.07 diluted earnings per share for the three months ended December 31, 2014, compared to net earnings of $598,000 or $0.07 diluted earnings per share for the three months ended December 31, 2013, a decrease of $19,000 or 3.2%. Net earnings were $995,000 or $0.12 diluted earnings per share for the six months ended December 31, 2014, compared to net earnings of $1.0 million or $0.12 diluted earnings per share for the six months ended December 31, 2013, a decrease of $26,000 or 2.5%.

The decrease in net earnings on a quarter-to-quarter basis was primarily attributable to lower net interest income and an increase in provision for loan losses partially offset by an increase in noninterest income and a reduction in noninterest expenses.

Net interest income decreased $160,000 or 5.4% to $2.8 million for the quarter ended December 31, 2014, compared to $3.0 million for the prior year quarter, primarily because of lower interest income. Interest income decreased $234,000 or 6.9% to $3.2 million for the quarter ended December 31, 2014, primarily because of lower interest income from loans, which was due chiefly to a lower average balance in the loan portfolio. Provision for losses on loans increased $39,000 to $210,000 for the recently-ended quarter compared to a provision of $171,000 in the prior year period. Noninterest income totaled $232,000 for the three months ended December 31, 2014, an increase of $135,000 from the same period in 2013, primarily due to gains on sale of other real estate. Noninterest expense decreased $86,000 or 4.2% to $2.0 million for the recent period due primarily to lower employee compensation and benefits costs.

Net earnings decreased $26,000 or 2.5% to $995,000 for the six month period ended December 31, 2014, compared to $1.0 million for the prior year period. The decrease in net earnings was due primarily to lower net interest income and increased noninterest expense while partially offset by a decrease in provision for loan losses and an increase in noninterest income. Net interest income decreased $195,000 or 3.4% to $5.6 million for the six months recently ended. Interest income totaled $6.3 million for the six months ended December 31, 2014, a decrease of $371,000 or 5.6% from the same period in 2013, primarily due to lower interest income from loans, which was due to a lower average balance in the loan portfolio. Provision for losses on loans decreased $187,000 to $266,000 for the recently-ended six-month period compared to a provision of $453,000 in the prior year period. Noninterest income totaled $328,000 for the six months ended December 31, 2014, an increase of $116,000 from the same period in 2013, primarily due to gains on sale of other real estate. Noninterest expense increased $96,000 or 2.4% to $4.1 million for the recent six-month period due primarily to higher foreclosure and other real estate charges.

At December 31, 2014 assets increased $3.5 million or 1.2% to $303.1 million compared to $299.7 million at June 30, 2014. This increase was attributed primarily to an increase in investment securities and was somewhat offset by a decrease in loans and cash and cash equivalents. Total liabilities increased $3.5 million or 1.5% to $235.9 million at December 31, 2014, as FHLB advances increased $11.8 million or 68.9% to $29.0 million and deposits decreased $8.1 million or 3.8% to $205.0 million at December 31, 2014. The Company utilized part of its short-term borrowing to fund the acquisition of a short-term $8.5 million U.S. Treasury note. Subsequent to the quarter just ended the Company reduced advances by $8.0 million with a portion of the proceeds received from the maturity of the investment.

At December 31, 2014, the Company reported its book value per share as $7.89.

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, changes in the securities markets and the Risk Factors described in Item 1A of the Company's Annual Report on Form 10-K for the year ended June 30, 2014. 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 six banking offices in Kentucky, including three in Frankfort, two in Danville, and one in Lancaster. Kentucky First Federal Bancorp shares are traded on the Nasdaq National Market under the symbol KFFB. At December 31, 2014, the Company had approximately 8,457,515 shares outstanding of which approximately 55.9% was held by First Federal MHC.

SUMMARY OF FINANCIAL HIGHLIGHTS
Condensed Consolidated Balance Sheets
December 31, June 30,
2014 2014
(In thousands, except share data)
(Unaudited)
Assets
Cash and Cash Equivalents $ 9,788 $ 11,511
Investment Securities 16,573 9,265
Loans Held for Sale 180 --
Loans, net 244,346 246,788
Real estate owned, net 2,233 1,846
Other Assets 29,994 30,245
Total Assets $ 303,114 $ 299,655
Liabilities
Deposits $ 205,019 $ 213,142
FHLB Advances 29,047 17,200
Deferred revenue 618 631
Other Liabilities 1,236 1,477
Total Liabilities 235,920 232,450
Shareholders' Equity 67,194 67,205
Total Liabilities and Equity $ 303,114 $ 299,655
Book Value Per Share $ 7.89 $ 7.88
Condensed Consolidated Statements of Income
(In thousands, except share data)
Six months ended December 31, Three months ended December 31,
2014 2013 2014 2013
(Unaudited) (Unaudited)
Interest Income $ 6,255 $ 6,626 $ 3,156 $ 3,390
Interest Expense 705 881 354 428
Net Interest Income 5,550 5,745 2,802 2,962
Provision for Losses on Loans 266 453 210 171
Non-interest Income 328 212 232 97
Non-interest Expense 4,127 4,031 1,958 2,044
Income Before Income Taxes 1,485 1,473 866 844
Income Taxes 490 452 287 246
Net Income $ 995 $ 1,021 $ 579 $ 598
Earnings per share:
Basic and diluted $ 0.12 $ 0.12 $ 0.07 $ 0.07
Weighted average outstanding shares:
Basic and diluted 8,381,992 8,374,184 8,321,183 8,374,184

CONTACT: Kentucky First Federal Bancorp Don Jennings, President Clay Hulette, Vice President (502) 223-1638Source:Kentucky First Federal Bancorp