KFFB Kentucky First Federal Bancorp

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 $539,000 or $0.06 diluted earnings per share for the three months ended March 31, 2015, compared to net earnings of $491,000 or $0.06 diluted earnings per share for the three months ended March 31, 2014, an increase of $48,000 or 9.8%. Net earnings were $1.5 million or $0.18 diluted earnings per share for the nine months ended March 31, 2015 and 2014.

The increase in net earnings on a quarter-to-quarter basis was primarily attributable to lower non-interest expense and a decrease in provision for loan losses. Non-interest expense decreased $122,000 or 5.8% and totaled $2.0 million for the three months ended March 31, 2015, due primarily to lower employee compensation and benefits costs. Changes in pension laws, which temporarily reduce funding requirements for the Company’s multiple-employer pension plan, resulted in lower costs for the period. Provision for losses on loans decreased $42,000 to $36,000 for the recently-ended quarter compared to a provision of $78,000 in the prior year period. Somewhat offsetting the lower non-interest expense and decrease in provision for loan losses were decreases in net interest income and non-interest income. Net interest income decreased $114,000 or 4.0% to $2.8 million for the quarter ended March 31, 2015, primarily because interest income decreased at a faster pace than interest expense. Interest income decreased $118,000 or 3.6% to $3.1 million for the recently ended quarter, while interest expense decreased only $4,000 or 1.1% to 373,000 for the period. Noninterest income totaled $68,000 for the three months ended March 31, 2015, a decrease of $39,000 from the same period in 2014, primarily due to net losses on sale of other real estate. 

Net earnings increased $22,000 or 1.5% totaling $1.5 million for both nine month periods ended March 31, 2015 and 2014. The increase in net earnings was due primarily to lower provision for loan losses, higher non-interest income and decreased non-interest expense. Provision for loan losses decreased $229,000 or 43.1% to $302,000 for the nine months recently ended. Non-interest income totaled $396,000 for the nine months ended March 31, 2015, an increase of $77,000 or 24.1% from the same period in 2014, primarily due to gains on sale of other real estate. Noninterest expense decreased $26,000 or 0.4% to $6.1 million for the recent nine-month period due primarily to lower employee compensation and benefits charges. 

At March 31, 2015, the Company’s assets totaled $294.5 million, a decrease of $5.2 million or 1.7% compared to assets of $299.7 million at June 30, 2014. The decrease was attributed primarily to decreases in loans, cash and cash equivalents and investment securities. Total liabilities decreased $5.0 million or 2.1% to $227.5 million at March 31, 2015, as deposits decreased $11.0 million or 5.1% to $202.2 million at March 31, 2015, while FHLB advances increased $5.4 million or 31.7% to $22.6 million. 

At March 31, 2015, the Company reported its book value per share as $7.94.

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 March 31, 2015, the Company had approximately 8,439,515 shares outstanding of which approximately 56.0% was held by First Federal MHC.

	SUMMARY OF FINANCIAL HIGHLIGHTS
	Condensed Consolidated Balance Sheets
				March 31,						June 30,
				2015						2014
		(In thousands, except share data)
				(Unaudited)
Assets
	Cash and Cash Equivalents	$		9,833			$			11,511
	Investment Securities			7,857						9,265
	Loans Held for Sale			--						--
	Loans, net			244,533						246,788
	Real estate owned, net			2,285						1,846
	Other Assets			29,992						30,245
	Total Assets	$		294,500			$			299,655
Liabilities
	Deposits	$		202,173			$			213,142
	FHLB Advances			22,644						17,200
	Deferred revenue			614						631
	Other Liabilities			2,025						1,477
	Total Liabilities			227,456						232,450
Shareholders' Equity				67,044						67,205
Total Liabilities and Equity		$		294,500			$			299,655
Book Value Per Share		$		7.94			$			7.88

 

	Condensed Consolidated Statements of Income
	(In thousands, except share data)
				Nine months ended March 31,										Three months ended March 31,
				2015				2014						2015				2014
				(Unaudited)										(Unaudited)
	Interest Income	$		9,391		$		9,880				$		3,136		$		3,254
	Interest Expense			1,078				1,258						373				377
	Net Interest Income			8,313				8,622						2,763				2,877
	Provision for Losses on Loans			302				531						36				78
	Non-interest Income			396				319						68				107
	Non-interest Expense			6,117				6,143						1,990				2,112
	Income Before Income Taxes			2,290				2,267						805				794
	Income Taxes			756				755						266				303
	Net Income	$		1,534		$		1,512				$		539		$		491
	Earnings per share:
	Basic and diluted	$		0.18		$		0.18				$		0.06		$		0.06
	Weighted average outstanding shares:
	Basic and diluted			8,360,824				8,373,329						8,317,518				8,376,353

 

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