KFFB Kentucky First Federal Bancorp

 

UNITED STATES

 

SECURITIES AND EXCHANGE COMMISSION

Washington, DC 20549

 

FORM 8-K

 

CURRENT REPORT

 

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

 

Date of Report (Date of earliest event reported): February 5, 2016

 

KENTUCKY FIRST FEDERAL BANCORP

 

(Exact Name of Registrant as Specified in Its Charter)

 

United States	0-51176	61-1484858
(State or other jurisdiction of	(Commission	(IRS Employer
incorporation or organization)	File Number)	Identification No.)
479 Main Street, Hazard, Kentucky		41701
(Address of principal executive offices)		(Zip Code)

 

(502) 223-1638

(Registrant’s telephone number, including area code)

 

Not Applicable

 

(Former name or former address, if changed since last report)

 

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

 

¨Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

 

¨ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

 

¨Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

 

¨ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

 

Item 2.02 Results of Operations and Financial Condition

 

On February 5, 2016, Kentucky First Federal Bancorp (the “Company”) announced its unaudited financial results for the six and three months ended December 31, 2015. For more information, see the Company’s press release dated February 5, 2016, which is filed as Exhibit 99.1 hereto and is incorporated herein by reference.

 

Item 9.01 Financial Statements and Exhibits

 

(a)

Not applicable

 

(b)

Not applicable

 

(c)

Not applicable

 

The following exhibit is filed herewith:

 

99.1 Press Release dated February 5, 2016

 

 

SIGNATURES

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. 

 

		KENTUCKY FIRST FEDERAL BANCORP
Date: February 8, 2016			By: /s/ Don D. Jennings
			Don D. Jennings
			President and Chief Operating Officer

 

 

 

EXHIBIT 99.1

Kentucky First Federal Bancorp

 

Hazard, Frankfort, Danville, and Lancaster, Kentucky

For Immediate Release February 5, 2016

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

 

Kentucky First Federal Bancorp Releases Earnings

 

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