Kentucky First Federal Bancorp Reports Increase in Net Interest Income and Decrease in Net Loss for Q3 2024

Kentucky First Federal Bancorp, operating as the parent company for First Federal Savings and Loan Association of Hazard and First Federal Savings Bank of Kentucky, revealed its unaudited financial outcomes for the quarter ending September 30, 2024. The company disclosed a net loss of $15,000, translating to $0.00 diluted earnings per share. This marks an improvement from the net loss of $175,000, or $(0.02) diluted earnings per share, recorded in the same quarter of the preceding year, showing a 91.4% increase.

The rise in net loss for the third fiscal quarter of 2024 was primarily driven by an uptick in net interest income and non-interest income, although it was somewhat offset by lower income tax benefits and higher non-interest expenses. Net interest income climbed by $200,000, a 12.0% increase to reach $1.9 million. The surge stemmed from interest income outpacing the rise in interest expenses for the period, with interest income escalating by 23.7% to $886,000 while interest expense rose by 33.2% to $2.8 million.

The average interest rate earned on interest-earning assets saw a 69 basis points increase to 5.05%, facilitating the boost in interest income, alongside a $23.4 million rise in average interest-earning assets. Moreover, non-interest income surged by $63,000 or 85.1% to $137,000, primarily due to gains on loans sales experiencing a significant increase.

For the quarter, the provision for credit loss was documented at $15,000, compared to $6,000 in the equivalent period last year, prompted by a slight expansion in the loan portfolio. Notably, income tax benefits saw a decline of 91.3% year-over-year, as a net loss recorded in the recently-ended quarter outweighed the benefit received.

Non-interest expense also saw an increase of $31,000, mainly influenced by rising data processing costs and FDIC insurance premiums. At the close of September 30, 2024, total assets of the company tallied $375.7 million, showing a slight uptick of 0.2% from the previous quarter, primarily due to increased loans held for sale and net loans. Liabilities and shareholders’ equity also recorded changes, with shareholders’ equity seeing a 0.5% increase to $48.2 million.

Kentucky First Federal Bancorp’s reported book value per share stood at $5.96 as of September 30, 2024. The company underlined that material differences may exist between the forward-looking statements expressed and actual results due to various economic conditions and industry dynamics. Moreover, it emphasized its dedication to meeting regulatory requirements and enhancing financial performance.

Kentucky First Federal Bancorp holds an essential position in the financial market, exemplified by its shares trading on the Nasdaq National Market under the symbol KFFB. At the close of September 30, 2024, the company had roughly 8,086,715 shares outstanding, with a significant 58.5% held by First Federal MHC.

This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read Kentucky First Federal Bancorp’s 8K filing here.

Kentucky First Federal Bancorp Company Profile

Kentucky First Federal Bancorp operates as the holding company for First Federal Savings and Loan Association of Hazard, and Frankfort First Bancorp, Inc that provide various banking products and services in Kentucky. It accepts deposit products include passbook savings and certificate accounts, checking accounts, and individual retirement accounts.