FRANKFORT, Ky. (July 12, 2012) — The board of directors of First Federal MHC, the mutual holding company that owns 61.2 percent of Kentucky First Federal Bancorp’s outstanding common stock, has called a special meeting of its members to vote on a proposal to waive its right to receive annual dividends of up to $0.40 per share that may be declared by Kentucky First during the 12-month period following the member vote,
Kentucky First Federal Bancorp (Nasdaq:KFFB) is the holding company for First Federal Savings and Loan Association of Hazard, Ky., and First Federal Savings Bank of Frankfort, Ky.
All dividends on Kentucky First common stock are declared at the discretion of the Kentucky First Board of Directors. The special meeting will be Aug. 23.
Regulations of the Board of Governors of the Federal Reserve System prohibit the waiver of dividends by First Federal MHC unless the waiver has been approved by its members. Pending the outcome of the member vote, the Kentucky First Board of Directors has determined to delay the declaration of its quarterly $0.10 per share cash dividend that normally would have been declared around this time.
Following the meeting, the Kentucky First Board of Directors expects to declare a quarterly cash dividend of $0.10 per share, regardless of whether the proposal to approve the dividend waiver is approved by members. The board anticipates establishment of a record date on or about Sept. 7, with payment on or about Sept. 24. Future dividends are not guaranteed, but the board intends to resume its normal dividend payment schedule for the coming year with the next proposed dividend record date of Oct. 31, with payment on or about Nov. 19.