FRANKFORT, Ky. (Aug. 17, 2012) — 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, announced net income of $1.7 million or $0.23 diluted earnings per share for the year ended June 30, which represents a $41,000 or a 2.3 percent decrease from the year ended June 30, 2011.
The decrease in earnings year over year was primarily because of higher income tax expense. Although net income before taxes increased $695,000 or 37.4 percent to $2.6 million for the year ended June 30, compared to the prior year period, income tax expense increased a disproportional $736,000 to $840,000 for the recently ended year.
Effective income tax rates for 2012 and 2011 were 32.9 percent and 5.6 percent, respectively, because of recognition of a $403,000 tax refund in the prior year. Net interest income after provision for loan losses increased $938,000 or 13.6 percent to $7.8 million for the 2012 year because of higher net interest income before provision for loan loss expense and lower provision expense as well. Net interest income before loss provision increased $409,000 or 5.4 percent to $8.0 million for the 12 months ended June 30, while provision for loan losses decreased $529,000 or 79.2 percent to $139,000 for the recently ended year.
Kentucky First Federal Bancorp reported net income of $378,000 or $0.05 diluted earnings per share for the three months ended June 30, compared to $555,000 or $0.07 per share for the three months ended June 30, 2011. The decrease in net profit of $177,000, or 31.9 percent, was primarily because of a decrease in net interest income and an increase in provision for loan losses. Net interest income decreased $73,000 or 3.6 percent for the three-month period ended June 30, to $1.9 million, compared to $2.0 million in the prior-year quarter, while the provision for loan losses for the recently-ended quarterly period was $57,000 compared to no provision for the same period a year ago. Income tax expense increased $75,000 or 68.8 percent to $184,000 for the three months ended June 30.
On June 30, the company reported its book value per share as $7.62.
Kentucky First Federal Bancorp is the parent company of First Federal Savings and Loan Association, which operates one banking office in Hazard and First Federal Savings Bank, which operates three banking offices in Frankfort.
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