HAZARD, FRANKFORT, DANVILLE and LANCASTER, Ky., Nov. 10, 2014 (GLOBE NEWSWIRE) — Kentucky First Federal Bancorp, the holding company for First Federal Savings and Loan Association of Hazard and First Federal Savings Bank of Frankfort, announced net earnings of $416,000 or $0.05 diluted earnings per share for the three months ended September 30, 2014, compared to net earnings of $423,000 or $0.05 diluted earnings per share for the three months ended September 30, 2013, a decrease of $7,000 or 1.7 percent.
The decrease in net earnings for the quarter ended September 30, 2014, was primarily attributable to higher non-interest expenses, which totaled $2.2 million for the recently ended quarter compared to the 2013 quarterly expense of $2.0 million, an increase of $182,000 or 9.2 percent. The increase was primarily related to higher employee compensation and benefits; the company’s full-time equivalent employees increased from 66 in the prior year period to 70. The increase in employees was primarily in response to additional regulatory burden placed on the banks.
Net interest income decreased $35,000 or 1.3 percent to $2.7 million in the current quarter just ended, while provision for losses on loans decreased $226,000 or 80.1 percent to $56,000, which resulted in net interest income after provision for losses on loans of $2.7 million, an increase of $191,000 or 7.6 percent over the prior year quarter.
At September 30, 2014, assets decreased $3.9 million or 1.3 percent to $295.7 million from $299.7 million at June 30, 2014, and was attributed
primarily to a decrease in loans. Loans, net decreased $2.9 million or 1.2 percent from $246.8 million at June 30, 2014, to $243.9 million at September 30, 2014, due primarily to low levels of loan demand and loan payoffs received. Cash and cash equivalents decreased $636,000 or 5.5 percent to $10.9 million at September 30, 2014, as the Company utilized excess liquidity to pay down borrowings. Total liabilities decreased $3.9 million or 1.7 percent to $228.5 million at September 30, 2014, primarily as a
result of a decrease of FHLB advances. FHLB advances decreased $3.0 million or 17.5 percent from $17.2 million at June 30, 2014 to $14.2 million at September 30, 2014, as excess liquidity was used. Deposits decreased $1.4 million or 0.7 percent to $211.7 million at September 30, 2014.
At September 30, 2014, the company reported its book value per share as $7.89.
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, two banking offices in Danville and one banking office in Lancaster. Kentucky First Federal Bancorp shares are traded on the Nasdaq National Market under the symbol KFFB. At September 30, 2014, the company had approximately 8,524,178 shares outstanding of which approximately 55.5 percent was held by First Federal MHC.