HAZARD, Ky. and FRANKFORT , Ky., April 24 /PRNewswire-FirstCall/ -- Kentucky First Federal Bancorp (Nasdaq: KFFB), (the 'Company') the holding company for First Federal Savings and Loan Association of Hazard and First Federal Savings Bank of Frankfort , Kentucky, announced net earnings of $324,000 or $0.04 diluted earnings per share for the three months ended March 31, 2006 , compared to $385,000 for First Federal Savings and Loan of Hazard (the predecessor organization prior to the Company's reorganization) for the three months ended March 31, 2005 , a decrease of $61,000 or 15.8%. Net earnings for the nine months ended March 31, 2006 , were $1.3 million , or $0.15 diluted earnings per share compared to $1.0 million for First Federal Savings and Loan of Hazard for the nine months ended March 31, 2005 , an increase of $231,000 or 22.4%. On March 2, 2005 , the mutual-to-stock conversion of First Federal Savings and Loan of Hazard culminated in the formation of Kentucky First Federal Bancorp and the acquisition of Frankfort First Bancorp, Inc., parent company of First Federal Savings Bank of Frankfort . As First Federal Savings and Loan of Hazard was not a stock-owned company during the comparable three and nine month periods in 2005, earnings per share are not reported for those periods.
The decrease in net earnings for the three months ended March 31, 2006 was primarily due to an increase in General, Administrative, and Other Expense partly offset by an increase in Net Interest Income. The increase in General, Administrative and Other Expense and Net Interest Income was primarily attributable to the inclusion of First Federal Savings Bank of Frankfort in the results of operations. General, Administrative and Other Expense also increased due to the costs of the Employee Stock Ownership Plan and the Company's Equity Incentive Plan, which was adopted at the Company's annual meeting on November 15, 2005 , and the costs associated with operating a public company.
The increase in net earnings for the nine month period ended March 31, 2006 , was primarily attributable to the inclusion of earnings generated by First Federal Savings Bank of Frankfort in the results of operations. Net Interest Income increased $1.9 million , or 62.3%, to $5.0 million , and was partially offset by an increase in General, Administrative and Other Expense of $1.8 million .
At March 31, 2006 , the Company reported its book value per share as $7.52 .
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, the impact of competition, changes in general economic conditions, legislative and regulatory changes that adversely affect the business of the Company and changes in the securities markets. 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. Kentucky First Federal Bancorp shares are traded on the Nasdaq National Market under the symbol KFFB. At March 31, 2006 the Company had approximately 8,590,000 shares outstanding, of which approximately 36.9% was held by non-affiliates.
SUMMARY OF FINANCIAL HIGHLIGHTS
Condensed Consolidated Statements of Financial Condition
March 31, June 30,
2006 2005
(In thousands, except per share data)
(Unaudited) (Audited)
Assets
Cash and Cash Equivalents $2,305 $8,358
Investment Securities 79,553 86,836
Loans Receivable, net 153,298 151,712
Other Assets 26,912 27,009
Total Assets $262,068 $273,915
Liabilities
Deposits $143,905 $155,044
FHLB Advances 51,935 50,985
Other Liabilities 1,646 1,947
Total Liabilities 197,486 207,976
Shareholders' Equity 64,582 65,939
Total Liabilities and Equity $262,068 $273,915
Book Value Per Share $7.52 $7.67
Condensed Consolidated Statements of Earnings
Nine months ended Three months ended
March 31, March 31,
2006 2005 2006 2005
(In thousands, except per share data)
(Unaudited)
Interest Income $9,571 $4,970 $3,177 $2,090
Interest Expense 4,605 1,911 1,574 836
Net Interest Income 4,966 3,059 1,603 1,254
Provision for Losses on Loans 32 40 8 12
Other Operating Income 186 34 64 23
General, Administrative, and
Other Expense 3,286 1,506 1,200 701
Earnings Before Federal Income
Taxes 1,834 1,547 459 564
Federal Income Taxes 570 514 135 179
Net Earnings $1,264 $1,033 $324 $385
Basic Earnings Per Share $0.15 N/A $0.04 N/A
Diluted Earnings Per Share $0.15 N/A $0.04 N/A
Dividends Per Share $0.30 N/A $0.10 N/A
Weighted average outstanding
shares:
Basic 8,226,468 N/A 8,167,163 N/A
Diluted 8,240,134 N/A 8,189,140 N/A
SOURCE Kentucky First Federal Bancorp
