Kentucky First Federal Bancorp Releases Earnings
February 05 2016 - 02:08PM
Kentucky First Federal Bancorp (Nasdaq:KFFB), the holding company
for First Federal Savings and Loan Association of Hazard and First
Federal Savings Bank of Kentucky, announced net earnings of
$404,000 or $0.05 diluted earnings per share for the three months
ended December 31, 2015, compared to net earnings of $579,000 or
$0.07 diluted earnings per share for the three months ended
December 31, 2014, a decrease of $175,000 or 30.2%. Net
earnings were $942,000 or $0.11 diluted earnings per share for the
six months ended December 31, 2015, compared to net earnings of
$995,000 or $0.12 diluted earnings per share for the six months
ended December 31, 2014, a decrease of $53,000 or 5.3%.
The decrease in net earnings on a quarter-to-quarter basis was
primarily attributable to higher non-interest expense, lower net
interest income and lower non-interest income, while partially
offset by lower provision for loan losses.
Non-interest expense increased $211,000 or 10.8% to $2.2 million
for the quarter ended December 31, 2015, compared to the prior year
quarter, primarily because of higher employee compensation and
benefits and contributions made to the Company’s defined benefit
retirement plan. Non-interest income decreased $106,000 or
45.7% to $126,000 for the quarter ended December 31, 2015,
primarily because of lower gains recognized on the sales of
REO. Net interest income decreased $159,000 or 5.7% to $2.6
million for the recently-ended quarter, while the Company made no
provision for losses on loans for the quarter ended December 31,
2015, compared to a provision of $210,000 in the prior year
quarter.
The decrease in net earnings on a six-month basis was primarily
attributable to lower net interest income, higher non-interest
expense, and lower non-interest income, while partially offset by
lower provision for loan losses.
Non-interest expense increased $107,000 or 2.6% to $4.2 million
for the six months ended December 31, 2015, compared to the prior
year period, primarily because of higher employee compensation and
benefits. Non-interest income decreased $88,000 or 26.8% to
$240,000 for the six months ended December 31, 2015, primarily
because of lower gains recognized on the sales of REO. Net
interest income decreased $273,000 or 4.9% to $5.3 million for the
recently-ended six-month period, while the Company’s provision for
losses on loans decreased to $11,000 for the period ended December
31, 2015, compared to a provision of $266,000 in the prior year
period.
At December 31, 2015 assets increased $10.5 million or 3.6% to
$306.8 million compared to $296.3 million at June 30, 2015.
This increase was attributed primarily to increases in investment
securities and cash and cash equivalents. Total liabilities
increased $10.3 million or 4.5% to $239.2 million at December 31,
2015, as FHLB advances increased $17.9 million or 67.2% to $44.5
million and deposits decreased $7.2 million or 3.6% to $192.5
million at December 31, 2015. The Company utilized part of
its short-term borrowing to fund the acquisition of a short-term
$11.0 million U.S. Treasury note. Subsequent to the quarter
just ended the Company reduced advances by $6.0 million with a
portion of the proceeds received from the maturity of the
investment.
At December 31, 2015, the Company reported its book value per
share as $8.01.
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, 2015. 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, 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 |
|
|
|
December 31, |
|
June 30, |
|
|
|
|
|
|
2015 |
|
2015 |
|
|
|
|
|
(In thousands, except share data) |
|
|
|
|
|
|
(Unaudited) |
|
|
|
Assets |
|
|
|
|
|
|
|
|
Cash and Cash
Equivalents |
$ |
14,480 |
$ |
13,635 |
|
|
|
|
Investment
Securities |
|
16,053 |
|
6,582 |
|
|
|
|
Loans Held for
Sale |
|
-- |
|
100 |
|
|
|
|
Loans, net |
|
243,968 |
|
243,815 |
|
|
|
|
Real estate owned,
net |
|
1,138 |
|
1,593 |
|
|
|
|
Other Assets |
|
31,199 |
|
30,573 |
|
|
|
|
Total
Assets |
$ |
306,838 |
$ |
296,298 |
|
|
|
Liabilities |
|
|
|
|
|
|
|
|
Deposits |
$ |
192,485 |
$ |
199,701 |
|
|
|
|
FHLB Advances |
|
44,532 |
|
26,635 |
|
|
|
|
Deferred revenue |
|
603 |
|
610 |
|
|
|
|
Other Liabilities |
|
1,627 |
|
2,039 |
|
|
|
|
Total
Liabilities |
|
239,247 |
|
228,985 |
|
|
|
Shareholders' Equity |
|
67,591 |
|
67,313 |
|
|
|
Total
Liabilities and Equity |
$ |
306,838 |
$ |
296,298 |
|
|
|
Book Value
Per Share |
$ |
8.01 |
$ |
7.98 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Condensed Consolidated Statements of Income |
|
(In
thousands, except share data) |
|
|
|
Six months ended December 31, |
|
|
|
|
Three months ended December 31, |
|
|
|
2015 |
|
2014 |
|
|
|
|
2015 |
|
2014 |
|
|
|
(Unaudited) |
|
|
|
|
(Unaudited) |
|
Interest Income |
$ |
5,969 |
$ |
6,255 |
|
|
|
$ |
2,985 |
$ |
3,156 |
|
Interest Expense |
|
692 |
|
705 |
|
|
|
|
342 |
|
354 |
|
Net Interest
Income |
|
5,277 |
|
5,550 |
|
|
|
|
2,643 |
|
2,802 |
|
Provision for Losses on
Loans |
|
11 |
|
266 |
|
|
|
|
-- |
|
210 |
|
Non-interest
Income |
|
240 |
|
328 |
|
|
|
|
126 |
|
232 |
|
Non-interest Expense |
|
4,234 |
|
|
|
4,127 |
|
|
|
|
|
|
2,169 |
|
|
1,958 |
|
Income Before Income
Taxes |
|
1,272 |
|
1,485 |
|
|
|
|
600 |
|
866 |
|
Income Taxes |
|
330 |
|
490 |
|
|
|
|
196 |
|
287 |
|
Net Income |
$ |
942 |
$ |
995 |
|
|
|
$ |
404 |
$ |
579 |
|
Earnings per
share: |
|
|
|
|
|
|
|
|
|
|
|
|
Basic and
diluted |
$ |
0.11 |
$ |
0.12 |
|
|
|
$ |
0.05 |
$ |
0.07 |
|
Weighted average
outstanding shares: |
|
|
|
|
|
|
|
|
|
|
|
|
Basic and
diluted |
|
8,319,589 |
|
8,381,992 |
|
|
|
|
8,321,924 |
|
8,321,183 |
Contact:
Kentucky First Federal Bancorp
Don Jennings, President
Clay Hulette, Vice President
(502) 223-1638
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