Kentucky First Federal Bancorp 8-K, filed Nov 6, 2020
Kentucky First Federal Bancorp (KFFB)
About this 8-K
Kentucky First Federal Bancorp filed this 8-K on November 6, 2020, reporting on events of November 5, 2020.
Items reported
- Item 2.02: Financial results
- Item 9.01: Financial statements and exhibits
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): November 5, 2020
KENTUCKY FIRST FEDERAL BANCORP
(Exact Name of Registrant as Specified in Its Charter)
| United States | 0-51176 | 61-1484858 | ||
| (State or other jurisdiction of | (Commission | (IRS Employer | ||
| incorporation or organization) | File Number) | Identification No.) |
| 655 Main Street, Hazard, Kentucky | 41702 | |
| (Address of principal executive offices) | (Zip Code) |
(502) 223-1638
(Registrant’s telephone number, including area code)
Not Applicable
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
| ☐ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
| ☐ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
| ☐ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
| ☐ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (17 CFR §230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (17 CFR §240.12b-2).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||
| Common Stock, $0.01 par value per share | KFFB | The NASDAQ Stock Market LLC |
| Item 2.02 | Results of Operations and Financial Condition |
On November 5, 2020, Kentucky First Federal Bancorp (the “Company”) announced its unaudited financial results for the three-months ended September 30, 2020. For more information, see the Company’s press release dated November 5, 2020, which is filed as Exhibit 99.1 hereto and is incorporated herein by reference.
| Item 9.01 | Financial Statements and Exhibits |
| (a) | Not applicable |
| (b) | Not applicable |
| (c) | Not applicable |
The following exhibit is filed herewith:
| 99.1 | Press Release dated November 5, 2020 |
1
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| KENTUCKY FIRST FEDERAL BANCORP | ||
| Date: November 6, 2020 | By: | /s/ R. Clay Hulette |
| R. Clay Hulette | ||
| Vice President and Chief Finance Officer | ||
2
EXHIBIT 99.1
Kentucky First Federal Bancorp
Hazard, Kentucky, Frankfort, Kentucky, Danville, Kentucky and Lancaster, Kentucky
For Immediate Release November 5, 2020
Contact: Don Jennings, President, or Clay Hulette, Vice President
(502) 223-1638
216 West Main Street
P.O. Box 535
Frankfort, KY 40602
Kentucky First Federal Bancorp Releases Earnings
Kentucky First Federal Bancorp (Nasdaq: KFFB), the holding company (the “Company”) for First Federal Savings and Loan Association of Hazard and First Federal Savings Bank of Kentucky, Frankfort, Kentucky, announced net earnings of $285,000 or $0.04 diluted earnings per share for the three months ended September 30, 2020, compared to net earnings of $234,000 or $0.03 diluted earnings per share for the three months ended September 30, 2019, an increase of $51,000 or 21.8%.
The increase in net earnings for the quarter ended September 30, 2020, was primarily attributable to higher non-interest income, lower non-interest expense, and higher net interest income, which were partially offset by higher provision for loan loss and income tax. Non-interest income increased $54,000 or 73.0% to $128,000 due primarily to net gains on sales of loans. The Company has seen significant loan refinance activity since the emergency interest rate cut implemented by the FOMC in March of this year. The Company’s long-term fixed rate loans, which some borrowers are preferring at this time, are usually sold to the FHLB of Cincinnati after they are originated, which produces the gain. Non-interest expense decreased $19,000 or 0.9% and totaled $2.1 million for the three months ended September 30, 2020, while net interest income increased $9,000 or 0.4% to $2.4 million for the just-ended quarterly period, as interest income and expense both decreased period to period. Provision for loan losses increased by $25,000 or 42.4% and totaled $84,000 for the recently-ended quarterly period. The provision recorded for the quarter just ended was in response to increased average balance of loans in the portfolio, a slight change in the composition of loans and a normal level of charge-off activity, which continues to stay at low levels seen in recent years. Despite the uncertainty caused by the continuing Covid-19 pandemic, the loan portfolio continues to perform well. The majority of loans that were granted deferrals have resumed normal payments and credit quality metrics have continued to improve from prior periods.
At September 30, 2020, assets totaled $327.7 million, an increase of $6.5 million or 2.0%, from $321.1 million at June 30, 2020. This increase was attributed primarily to an increase in loans, net, which increased $4.6 million or 1.6% to $290.5 million at September 30, 2020, and an increase in cash and cash equivalents, which increased $3.4 million or 24.9% to $17.1 million at September 30, 2020. Total liabilities increased $6.6 million or 2.5% to $275.9 million at September 30, 2020, as advances increased $3.7 million or 6.7% to $58.4 million and deposits increased $2.8 million or 1.3% to $215.1 million at September 30, 2020.
At September 30, 2020, the Company reported its book value per share as $6.29. The change in shareholders’ equity was primarily associated with net profits for the period, less dividends paid on common stock.
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: the effect of the COVID-19 pandemic, including the length of time that the pandemic continues, and the effect of the pandemic on the general economy and on the businesses of our borrowers and their ability to make payments on their obligations; real estate values, the impact of interest rates on financing, changes in general economic conditions, legislative and regulatory changes that adversely affect the business of the Company, changes in the securities markets and the Risk Factors described in Item 1A of the Company’s Annual Report on Form 10-K for the year ended June 30, 2020. 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 of Hazard, which operates one banking office in Hazard, Kentucky and First Federal Savings Bank of Kentucky, which operates three banking offices in Frankfort, Kentucky, two banking offices in Danville, Kentucky and one banking office in Lancaster, Kentucky. Kentucky First Federal Bancorp shares are traded on the Nasdaq National Market under the symbol KFFB. At September 30, 2020, the Company had approximately 8,244,215 shares outstanding of which approximately 57.4% was held by First Federal MHC.
SUMMARY OF FINANCIAL HIGHLIGHTS
Condensed Consolidated Balance Sheets
(In thousands, except share data)
| September 30, | June 30, | |||||||
| 2020 | 2020 | |||||||
| (Unaudited) | ||||||||
| Assets | ||||||||
| Cash and Cash Equivalents | $ | 17,116 | $ | 13,702 | ||||
| Time deposits in other financial institutions | 1,241 | 2,229 | ||||||
| Investment Securities | 600 | 1,139 | ||||||
| Loans available-for sale | 1,035 | 667 | ||||||
| Loans, net | 290,509 | 285,887 | ||||||
| Real estate acquired through foreclosure | 679 | 640 | ||||||
| Goodwill | 947 | 947 | ||||||
| Other Assets | 15,557 | 15,925 | ||||||
| Total Assets | $ | 327,684 | $ | 321,136 | ||||
| Liabilities | ||||||||
| Deposits | $ | 215,102 | $ | 212,273 | ||||
| FHLB Advances | 58,392 | 54,715 | ||||||
| Other Liabilities | 2,361 | 2,237 | ||||||
| Total Liabilities | 275,855 | 269,225 | ||||||
| Shareholders' Equity | 51,829 | 51,911 | ||||||
| Total Liabilities and Equity | $ | 327,684 | $ | 321,136 | ||||
| Book Value Per Share | $ | 6.29 | $ | 6.29 | ||||
Condensed Consolidated Statements of Income
(In thousands, except share data)
| Three months ended September 30, | ||||||||
| 2020 | 2019 | |||||||
| (Unaudited) | ||||||||
| Interest Income | $ | 3,029 | $ | 3,328 | ||||
| Interest Expense | 639 | 947 | ||||||
| Net Interest Income | 2,390 | 2,381 | ||||||
| Provision for Losses on Loans | 84 | 59 | ||||||
| Non-interest Income | 128 | 74 | ||||||
| Non-interest Expense | 2,083 | 2,102 | ||||||
| Income Before Income Taxes | 351 | 294 | ||||||
| Income Taxes | 66 | 60 | ||||||
| Net Income | $ | 285 | $ | 234 | ||||
| Earnings per share: | ||||||||
| Basic and diluted | $ | 0.04 | $ | 0.03 | ||||
| Weighted average outstanding shares: | ||||||||
| Basic and diluted | 8,222,813 | 8,277,502 | ||||||