HAZARD and FRANKFORT , Ky., Oct. 23 /PRNewswire-FirstCall/ -- Kentucky First Federal Bancorp (Nasdaq: KFFB), the holding company for First Federal Savings and Loan Association of Hazard and First Federal Savings Bank of Frankfort , Kentucky, announced net earnings of $234,000 for the three months ended September 30, 2006 , compared to $491,000 for the three months ended September 30, 2005 , a decrease of $257,000 or 52.3%.
The decrease in net earnings for the quarter ended September 30, 2006 was primarily attributable to a reduction in net interest income and an increase in general, administrative and other expense. Net interest income decreased $251,000 or 14.9% from $1.7 million to $1.4 million , while general, administrative, and other expense increased $98,000 or 9.6% from $1.0 million to $1.1 million for the most recent quarter. The decrease in net interest income was attributable to continuing increases in cost of funds related to rising market interest rates. The increase in general, administrative and other expense was attributable to higher employee compensation and benefits expense.
At September 30, 2006 , assets had increased $4.6 million or 1.7% to $266.5 million compared to $261.9 million at June 30, 2006 . This increase was attributed primarily to an increase in loans receivable of $5.3 million or 3.4%, which totaled $160.7 million at September 30, 2006 .
At September 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, 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 September 30, 2006 the Company had approximately 8,491,000 shares outstanding of which approximately 55.7% was held by First Federal MHC.
SUMMARY OF FINANCIAL HIGHLIGHTS
Condensed Consolidated Statements of Financial Condition
September 30, June 30,
2006 2006
(In thousands, except share data)
(Unaudited) (Audited)
Assets
Cash and Cash Equivalents $ 1,776 $ 2,294
Investment Securities 76,906 77,420
Loans Receivable, net 160,710 155,386
Other Assets 27,105 26,841
Total Assets $ 266,497 $ 261,941
Liabilities
Deposits $ 136,905 $ 141,238
FHLB Advances 62,805 54,850
Other Liabilities 3,229 1,972
Total Liabilities 202,939 198,060
Shareholders' Equity 63,558 63,881
Total Liabilities and Equity $ 266,497 $ 261,941
Book Value Per Share $ 7.91 $ 7.91
Condensed Consolidated Statements of Earnings
(In thousands, except share data)
Three months ended September 30,
2006 2005
(Unaudited)
Interest Income $ 3,217 $ 3,208
Interest Expense 1,789 1,529
Net Interest Income 1,428 1,679
Provision for Losses on Loans - 14
Other Operating Income 36 59
General, Administrative, and Other
Expense 1,118 1,020
Earnings Before Federal Income Taxes 346 704
Federal Income Taxes 112 213
Net Earnings $ 234 $ 491
Earnings per share:
Basic $ 0.03 0.06
Diluted $ 0.03 0.06
Weighted average outstanding shares:
Basic 8,064,841 8,259,091
Diluted 8,070,706 8,259,091
SOURCE Kentucky First Federal Bancorp
