Kentucky First Federal Bancorp's Latest Earnings Analysis

Kentucky First Federal Bancorp Reports Earnings Results

Kentucky First Federal Bancorp (NASDAQ: KFFB), which oversees the First Federal Savings and Loan Association of Hazard and the First Federal Savings Bank of Kentucky, has released its earnings for a recent quarter. For the three months concluding September 30, the company announced a net loss of $15,000, equating to $0.00 diluted earnings per share, marking a significant improvement from a net loss of $175,000 or $(0.02) per diluted share during the same quarter the previous year. This reflects a substantial decrease in net loss of $160,000 or 91.4%.

Key Financial Highlights

The lesser net loss reported for the quarter can be primarily ascribed to an uptick in both net interest income and non-interest income, whereby increased income tax benefits and elevated non-interest expenses partially offset these gains. Specifically, net interest income surged by $200,000, representing a 12.0% increase to $1.9 million, sufficiently driven by an increase in interest income that outstripped the growth in interest expenses.

Interest Income Increases

During this quarterly period, interest income saw a remarkable growth of $886,000 or 23.7%, while the comparative interest expense escalated by $686,000, representing a 33.2% increase to $2.8 million. The net result is a positive impact on the company’s earnings amidst a persistent rising interest rate environment, even as market rates have slightly decreased. The average rate on interest-earning assets jumped by 69 basis points to 5.05%, marking a pivotal factor in the rise of interest income. Alongside that, the average interest-earning assets themselves climbed by $23.4 million or 6.8% to reach $336.0 million.

Growth in Non-Interest Income

Furthermore, non-interest income rose by $63,000, or a staggering 85.1%, accumulating to $137,000 for the three months that closed on September 30. This growth is substantially linked to net gains from sales of loans rising by $61,000 compared to the year-ago period as demand for fixed-rate loans surged in the secondary market.

Credit Loss Provision and Loan Portfolio

The company recorded a provision for credit loss amounting to $15,000 for the quarter, which is an uptake from the $6,000 provision during the respective period last year. Management underscored this provision as a pragmatic decision due to slight expansions within the loan portfolio during this phase. The net loans grew by $150,000, totaling $333.2 million as of September 30, which is a slight increase from $333.0 million recorded by June 30 of the same fiscal year.

Tax Benefits and Expenses

Additionally, a marked decrease in income tax benefits was recorded at $63,000, down 91.3% period over period. The income tax benefit amounted to merely $6,000 for the recently concluded quarter compared to $69,000 from the corresponding prior-year quarter. Similar comparison reflects an elevation in total non-interest expenses by $31,000, a rise principally due to data processing costs that ascended by 23.3% to a total of $164,000.

Assets and Shareholder Equity

As of September 30, 2024, total assets were logged at $375.7 million, which reflects an increment of $682,000 or 0.2% from $375 million recorded at the start of the quarter. The increment has largely stemmed from an increase in the sum of loans and loans held for sale, marking a combined upsurge of $1.5 million or 0.5%. Liabilities also rose, tracing up by $456,000 or 0.1%, primarily due to Federal Home Loan Bank advances which rose by $1.1 million to reach $70.1 million, while total deposits slightly dipped by $1.2 million to $254.9 million.

Shareholder's Equity Details

Upon reviewing shareholders' equity, the book value per share was reported as $5.96, which showcases an increase of $226,000 or 0.5% to $48.2 million as of September 30 compared to June 30, earlier in the same year.

About Kentucky First Federal Bancorp

Kentucky First Federal Bancorp stands as the parent company for the First Federal Savings and Loan Association of Hazard, which maintains one branch, and the First Federal Savings Bank of Kentucky, which features three branches in Frankfort, two in Danville, and one in Lancaster. The Company is actively engaged in the financial services sector, offering a suite of services that meet the diverse needs of its clientele. The shares of Kentucky First Federal Bancorp are traded on the Nasdaq under the ticker KFFB. As of September 30, 2024, the company had approximately 8,086,715 shares outstanding, with around 58.5% held by First Federal MHC.

Frequently Asked Questions

What is Kentucky First Federal Bancorp's latest earnings report?

The latest report indicated a net loss of $15,000 for the quarter ending September 30, representing a significant decrease from previous losses.

How has the company's non-interest income changed?

Non-interest income increased by $63,000, totaling $137,000, mainly due to net gains on loan sales.

What was the provision for credit losses this quarter?

The provision for credit losses was recorded as $15,000, up from $6,000 compared to the same quarter last year.

What is the book value per share for the company?

As reported, the book value per share is $5.96, reflecting a slight increase from prior figures.

Where is Kentucky First Federal Bancorp headquartered?

The headquarters is located in Frankfort, Kentucky, with multiple branches across the state.

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