Kentucky First Federal Bancorp Releases Earnings
HAZARD, Ky. and FRANKFORT, Ky. and DANVILLE, Ky. and LANCASTER, Ky., Nov. 05, 2020 (GLOBE NEWSWIRE) -- 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.