HAZARD, Ky. and FRANKFORT , Ky., Aug. 17 /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 $810,000 for the year ended June 30, 2007 or $0.10 diluted earnings per share. This represents a $778,000 or 49.0% decrease from the year ended June 30, 2006 . The decrease in earnings was due primarily to a $1.1 million decrease in net interest income, a result of margin compression, a factor facing the banking industry as a whole. Interest expense increased at a much greater rate than interest income.
Net earnings for the three months ended June 30, 2007 were $161,000 or $0.02 diluted earnings per share compared to $324,000 or $0.04 for the three months ended June 30, 2006 , a decrease of $163,000 or 50.3%. Interest Expense increased from $1.6 million in the three months ended June 30, 2006 to $2.0 million in the three months ended June 30, 2007 , an increase of $387,000 or 23.9%, while interest income increased by only $151,000 or 4.8%. The increase in interest expense was primarily the result of increases in market interest rates and the increased cost of short-term deposits and borrowings.
At June 30, 2007 , the Company reported its book value per share as $7.81 .
The Company also announced that the stock repurchase program initiated on March 13, 2007 , has been substantially completed and that the Board of Directors has authorized the purchase of up to 150,000 shares in a new stock repurchase program. Tony D. Whitaker, Chairman of the Company, stated that the new repurchase program is expected to be completed within one year and that shares repurchased through the new program will be held as treasury stock. Repurchases will be effected through open market purchases or unsolicited privately negotiated transactions. The stock repurchase program will be dependent on market conditions and there is no guarantee as to the exact number of shares that the Company will repurchase.
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, 2007 the Company had approximately 8,263,000 shares outstanding, of which approximately 57.2% was held by First Federal MHC.
SUMMARY OF FINANCIAL HIGHLIGHTS
Condensed Consolidated Statements of Financial Condition
June 30, June 30,
2007 2006
(In thousands, except per share data)
(Unaudited) (Audited)
Assets
Cash and Cash Equivalents $2,720 $2,294
Investment Securities 73,004 77,420
Loans Receivable, net 166,156 155,386
Other Assets 26,977 26,841
Total Assets $268,857 $261,941
Liabilities
Deposits $139,893 $141,238
FHLB Advances 65,132 54,849
Other Liabilities 2,462 1,973
Total Liabilities 207,487 198,060
Shareholders' Equity 61,370 63,881
Total Liabilities and Equity $268,857 $261,941
Book Value Per Share $7.81 $7.91
Condensed Consolidated Statements of Earnings
(In thousands, except share and per share data)
Twelve months ended June 30, Three months ended June 30,
2007 2006 2007 2006
(Unaudited) (Audited) (Unaudited) (Unaudited)
Interest Income $12,948 $12,709 $3,289 $3,138
Interest Expense 7,587 6,227 2,009 1,622
Net Interest Income 5,361 6,482 1,280 1,516
Provision for Losses
on Loans 0 32 0 0
Other Operating Income
(Loss) 174 216 40 30
General, Administrative,
and Other Expense 4,347 4,355 1,085 1,069
Earnings Before Federal
Income Taxes 1,188 2,311 235 477
Federal Income Taxes 378 723 74 153
Net Earnings $810 $1,588 $161 $324
Earnings per share:
Basic $0.10 $0.19 $0.02 $0.04
Diluted $0.10 $0.19 $0.02 $0.04
Weighted average
outstanding shares:
Basic 7,991,457 8,198,621 7,900,621 8,116,229
Diluted 7,991,457 8,212,886 7,900,621 8,131,685
SOURCE Kentucky First Federal Bancorp
