Kentucky First Federal Bancorp Releases Earnings
November 07 2016 - 2:36PM
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, Frankfort, Kentucky, announced
net earnings of $297,000 or $0.04 diluted earnings per share for
the three months ended September 30, 2016, compared to net earnings
of $538,000 or $0.06 diluted earnings per share for the three
months ended September 30, 2015, a decrease of $241,000 or
44.8%.
The decrease in net earnings for the quarter ended September 30,
2016, was primarily attributable to lower net interest income,
higher non-interest expense and higher income tax expense, while
partially offset by an increase in non-interest income and a
decrease in provision for loan loss. Net interest income decreased
$173,000 or 6.6% to $2.5 million for the current quarter just ended
primarily due to a decrease in interest income which declined
$195,000 or 6.5% to $2.8 million for the recently-ended quarter led
principally by a decrease in interest income on loans. Non-interest
expense increased $103,000 or 5.0% to $2.2 million for the quarter
ended September 30, 2016, primarily due to increases in employee
compensation and benefits, as well as occupancy and equipment
expense. Income tax expense increased $26,000 or 19.4% and totaled
$160,000 for the quarter just ended. Income tax expense in the
prior year period was reduced by a FIN 48 reserve related to a
previously received federal tax refund. Non-interest income
increased $54,000 or 47.4% to $168,000 for the just-ended quarter
due primarily to positive results related to the Company’s other
real estate owned. The Company’s provision for loan losses
decreased $7,000 or 63.6% to $4,000 for the quarter ended September
30, 2016, in response to improved asset quality in the loan
portfolio.
At September 30, 2016, assets totaled $295.1 million, an
increase of $3.2 million or 1.1%, from $291.9 million at June 30,
2016. This increase was attributed primarily to increases in loans,
cash and cash equivalents as well as time deposits in other
financial institutions. Loans, net increased $2.8 million or 1.2%
to $241.2 million at September 30, 2016, while cash and cash
equivalents increased $538,000 or 4.1% to $13.6 million at
September 30, 2016. In addition, time deposits in other financial
institutions increased $988,000 or 26.6% to $4.7 million at
September 30, 2016. Total liabilities increased $3.3 million or
1.5% to $227.6 million at September 30, 2016, primarily as a result
of an increase in advances, which increased $5.9 million or 17.9%
to $39.1 million at September 30, 2016. The increase in advances
was used to fund the growth in assets and to partially offset a
decrease of $3.1 million or 1.6% in deposits, which totaled $185.5
million at quarter end.
At September 30, 2016, the Company reported its book value per
share as $8.00.
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, 2016. 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 three banking offices in Frankfort, Kentucky, two banking
offices in Danville, Kentucky and one banking office in Lancaster,
Kentucky. Kentucky First Federal Bancorp shares are traded on the
Nasdaq National Market under the symbol KFFB. At September 30,
2016, 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 |
|
|
|
September 30, |
|
June 30, |
|
|
2016 |
|
2016 |
|
(In thousands, except share data) |
|
(Unaudited) |
|
Assets |
|
|
|
|
|
|
|
|
Cash and Cash Equivalents |
|
$ |
13,646 |
|
$ |
13,108 |
|
Time deposits in other
financial institutions |
|
4,699 |
|
|
3,711 |
|
Investment
Securities |
|
3,548 |
|
|
4,213 |
|
Loans Held for
Sale |
|
203 |
|
|
-- |
|
Loans, net |
|
241,222 |
|
|
238,468 |
|
Other Assets |
|
31,791 |
|
|
32,371 |
|
Total Assets |
$ |
295,109 |
|
$ |
291,871 |
|
Liabilities |
|
|
|
|
|
|
|
|
Deposits |
$ |
185,503 |
|
$ |
188,572 |
|
FHLB Advances |
|
39,147 |
|
|
33,211 |
|
Deferred revenue |
|
591 |
|
|
595 |
|
Other Liabilities |
|
2,381 |
|
|
1,978 |
|
Total Liabilities |
|
227,622 |
|
|
224,356 |
|
Shareholders'
Equity |
|
|
67,487 |
|
|
67,515 |
|
Total Liabilities and
Equity |
|
$ |
295,109 |
|
$ |
291,871 |
|
Book Value Per
Share |
|
$ |
8.00 |
|
$ |
8.00 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Condensed Consolidated Statements of Income |
|
(In
thousands, except share data) |
|
|
|
Three months ended September 30, |
|
|
|
2016 |
|
2015 |
|
(Unaudited) |
|
|
Interest Income |
|
$ |
2,789 |
|
$ |
2,984 |
|
Interest Expense |
|
|
328 |
|
|
350 |
|
Net Interest Income |
|
|
2,461 |
|
|
2,634 |
|
Provision for Losses on Loans |
|
|
4 |
|
|
11 |
|
Non-interest Income |
|
|
168 |
|
|
114 |
|
Non-interest Expense |
|
|
2,168 |
|
|
2,065 |
|
Income Before Income Taxes |
|
|
457 |
|
|
672 |
|
Income Taxes |
|
|
160 |
|
|
134 |
|
Net Income |
|
$ |
297 |
|
$ |
538 |
|
Earnings per share: |
|
|
|
|
|
|
|
Basic and diluted |
|
$ |
0.04 |
|
$ |
0.06 |
|
Weighted average outstanding
shares: |
|
|
|
|
|
|
|
Basic and diluted |
|
|
8,335,931 |
|
|
8,317,255 |
|
|
|
|
|
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Contact:
Don Jennings, President, or Clay Hulette, Vice President
(502) 223-1638
216 West Main Street
P.O. Box 535
Frankfort, KY 40602
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