HAZARD and FRANKFORT , Ky., July 26 /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 $1.6 million for the year ended June 30, 2006 or $0.19 diluted earnings per share. This represents a $41,000 or 2.5% decrease from the year ended June 30, 2005 . The slight decrease in income was due primarily to the $200,000 reversal of a previously pledged charitable donation in the prior year, which did not recur in the year just ended, and to margin compression, a factor facing the banking industry as a whole. During the year ended June 30, 2005 , the Company acquired First Federal Savings Bank of Frankfort (on March 2 , 2005), roughly doubling its size and, since the acquisition, has experienced large increases in Interest Income, Interest Expense, and General, Administrative, and Other Expense.
Net earnings for the three months ended June 30, 2006 were $324,000 or $0.04 diluted earnings per share compared to $596,000 or $0.08 for the three months ended June 30, 2005 , a decrease of $272,000 or 45.6%. The $200,000 reversal of the charitable donation occurred during the three months ended June 30, 2005 and was a significant factor in the decrease in net income, along with an increase in interest expense. Interest Expense increased from $1.4 million in the three months ended June 30, 2005 to $1.6 million in the three months ended June 30, 2006 , an increase of $180,000 or 12.5%. This increase was primarily the result of increases in market interest rates and the increased cost of attracting and retaining deposits.
At June 30, 2006 , the Company reported its book value per share as $7.91 .
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 June 30, 2006 the Company had approximately 8,600,000 shares outstanding, of which approximately 36.9% was held by non-affiliates.
SUMMARY OF FINANCIAL HIGHLIGHTS
Condensed Consolidated Statements of Financial Condition
June 30, June 30,
2006 2005
(In thousands, except per share data)
(Unaudited) (Audited)
Assets
Cash and Cash Equivalents $2,294 $8,358
Investment Securities 77,420 86,837
Loans Receivable, net 155,386 151,712
Other Assets 26,841 27,009
Total Assets $261,941 $273,916
Liabilities
Deposits $141,238 $155,044
FHLB Advances 54,849 50,984
Other Liabilities 1,973 1,949
Total Liabilities 198,060 207,977
Shareholders' Equity 63,881 65,939
Total Liabilities and Equity $261,941 $273,916
Book Value Per Share $7.91 $7.67
Condensed Consolidated Statements of Earnings
(In thousands, except share and per share data)
Twelve months Three months
ended June 30, ended June 30,
2006 2005 2006 2005
(Unaudited) (Audited) (Unaudited) (Unaudited)
Interest Income $12,709 $8,153 $3,138 $3,183
Interest Expense 6,227 3,353 1,622 1,442
Net Interest Income 6,482 4,800 1,516 1,741
Provision for Losses on Loans 32 53 0 13
Other Operating Income (Loss) 216 263 30 229
General, Administrative,
and Other Expense 4,355 2,509 1,069 1,003
Earnings Before Federal
Income Taxes 2,311 2,501 477 954
Federal Income Taxes 723 872 153 358
Net Earnings $1,588 $1,629 $324 $596
Earnings per share:
Basic $0.19 $ N/A $0.04 $0.08
Diluted $0.19 $ N/A $0.04 $0.08
Weighted average
outstanding shares:
Basic 8,198,621 N/A 8,116,229 8,259,277
Diluted 8,212,886 N/A 8,131,685 8,259,277
SOURCE Kentucky First Federal Bancorp
