Kentucky First Federal Bancorp Releases Earnings

HAZARD, Ky. and FRANKFORT, Ky. and DANVILLE, Ky. and LANCASTER, Ky., Nov. 05, 2021 (GLOBE NEWSWIRE) -- Kentucky First Federal Bancorp (Nasdaq: KFFB), the holding company (the “Company”) for First Federal Savings and Loan Association of Hazard and First Federal Savings Bank of Kentucky, Frankfort, Kentucky, announced net earnings of $568,000 or $0.07 diluted earnings per share for the three months ended September 30, 2021, compared to net earnings of $285,000 or $0.04 diluted earnings per share for the three months ended September 30, 2020, an increase of $283,000 or 99.3%.

The increase in net earnings for the quarter ended September 30, 2021, was primarily attributable to higher net interest income, higher non-interest income, lower non-interest expense, and lower provision for loan loss, which were partially offset by higher income tax. Net interest income increased $115,000 or 4.8% to $2.5 million for the recently-ended quarter primarily due to decreased interest expense, which decreased $170,000 or 26.6% compared to the quarter ended September 30, 2020 and totaled $469,000 for the quarter ended September 30, 2021. Compared to the quarter ended September 30, 2020, non-interest income increased $100,000 or 78.1% to $228,000 due primarily to an increase in net gains on sales of loans. The Company has seen significant loan refinance activity since the emergency interest rate cut implemented by the FOMC in March of 2020. The Company’s long-term fixed rate loans, which some borrowers are preferring at this time, are usually sold to the FHLB of Cincinnati after they are originated, which produces the gain. Compared to the prior year period, non-interest expense decreased $102,000 or 4.9% and totaled $2.0 million for the three months ended September 30, 2021, primarily due to decreased franchise and other taxes as well as decreased FDIC insurance premiums. A change to the tax system in the Commonwealth of Kentucky to which the Company and its Banks are subject is producing a positive impact at the present time. The income tax change primarily involves moving from a franchise tax for the Banks to an income tax system. The franchise tax incurred previously by the Banks was included in non-interest expense. The Company had no provision for loan losses in the quarter just ended compared to a provision of $84,000 in the prior year quarterly period.

At September 30, 2021, assets totaled $336.9 million, a decrease of $1.2 million or 0.3%, from $338.1 million at June 30, 2021. This decrease was attributed primarily to a decrease in loans, net, and loans available-for-sale, which in the aggregate decreased $5.1 million or 1.7% and totaled $294.0 million and $90,000, respectively at September 30, 2021. Somewhat offsetting the decrease in loans, net, and loans available-for-sale, was an increase of $4.3 million or 19.8% in cash and cash equivalents, which totaled $25.9 million at September 30, 2021. Total liabilities decreased $1.4 million or 0.5% to $284.4 million at September 30, 2021, as advances decreased $6.5 million or 11.5% to $50.4 million and deposits increased $4.6 million or 2.0% to $231.5 million at September 30, 2021.

At September 30, 2021, the Company reported its book value per share as $6.39. Shareholders’ equity increased $253,000 to $52.5 million at September 30, 2021 compared to June 30, 2021. The change in shareholders’ equity was primarily associated with net profits for the period, less dividends paid on common stock.

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: the effect of the COVID-19 pandemic, including the length of time that the pandemic continues, and the effect of the pandemic on the general economy and on the businesses of our borrowers and their ability to make payments on their obligations; 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, 2021. 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 of Hazard, which operates one banking office in Hazard, Kentucky, and First Federal Savings Bank of Kentucky, 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, 2021, the Company had approximately 8,217,377 shares outstanding of which approximately 57.5% was held by First Federal MHC.

SUMMARY OF FINANCIAL HIGHLIGHTS
Condensed Consolidated Balance Sheets
		September 30,			June 30,
		2021			2021
		(In thousands, except share data)
		(Unaudited)
Assets
Cash and Cash Equivalents	$	25,932		$	21,648
Time deposits in other financial institutions		--			247
Investment Securities		467			495
Loans available-for sale		90			1,307
Loans, net		293,990			297,902
Real estate acquired through foreclosure		51			82
Goodwill		947			947
Other Assets		15,432			15,435
Total Assets	$	336,909		$	338,063
Liabilities
Deposits	$	231,489		$	226,843
FHLB Advances		50,355			56,873
Other Liabilities		2,516			2,051
Total Liabilities		284,360			285,767
Shareholders' Equity		52,549			52,296
Total Liabilities and Equity	$	336,909		$	338,063
Book Value Per Share	$	6.39		$	6.36
Tangible book value per share	$	6.28		$	6.25
Condensed Consolidated Statements of Income
(In thousands, except share data)		Three months ended September 30,
		2021			2020
		(Unaudited)
Interest Income	$	2,974		$	3,029
Interest Expense		469			639
Net Interest Income		2,505			2,390
Provision for Losses on Loans		--			84
Non-interest Income		228			128
Non-interest Expense		1,981			2,083
Income Before Income Taxes		752			351
Income Taxes		184			66
Net Income	$	568		$	285
Earnings per share:
Basic and diluted	$	0.07		$	0.04
Weighted average outstanding shares:
Basic and diluted		8,216,511			8,222,813

 

Contact:	Don Jennings, President, or Clay Hulette, Vice President
	(502) 223-1638
	216 West Main Street
	P.O. Box 535
	Frankfort, KY 40602