Kentucky First Federal Bancorp Releases Earnings
February 06 2015 - 2:53PM
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) 223-1638
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