SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 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): January 28, 2008
(Exact name of registrant as specified in its charter)
Federal 000-50592 20-0411486
(State or other jurisdiction of incorporation) (Commission File No.) (I.R.S. Employer Identification No.)
1359 N. Grand Avenue, Covina, CA 91724
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (626) 339-9663
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))
On January 28, 2008, K-Fed Bancorp issued a press release disclosing its December 31, 2007 financial results.
A copy of the press release is included as Exhibit 99.1 to this report and is being furnished to the SEC and shall not be deemed filed for any purpose.
ITEM 9.01. Financial Statements and Exhibits.
(d) Exhibits.
99.1 – K-Fed Bancorp press release dated January 28, 2008.
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.
K-FED BANCORP
Date: January 28, 2008 By: /s/ Kay M. Hoveland
Kay M. Hoveland
President and Chief Executive Officer
PRESS RELEASE
K-FED BANCORP
1359 N. Grand Avenue ; www.K-Fed.com
Covina, California 91724-1016
FOR IMMEDIATE RELEASE
For additional information contact:
Kay Hoveland, President/CEO
Dustin Luton, Chief Financial Officer
(626) 339-9663
K-FED BANCORP ANNOUNCES SECOND QUARTER EARNINGS
Covina, CA – January 28, 2008 - K-FED BANCORP ANNOUNCES SECOND QUARTER EARNINGS. K-FED Bancorp (NASDAQ: KFED), the parent company of Kaiser Federal Bank, reported net income of $406,000 for the quarter ended December 31, 2007 and $1.4 million for the six months then ended. This compares to net income of $1.1 million for the quarter ended December 31, 2006 and $2.5 million for the six months then ended. These net income declines are due primarily to the recognition of $1.3 million in stock offering expenses resulting from the cancellation of the stock offering in November 2007. The recognition of these expenses resulted in a decline of 5-cents-per-share in the Company’s basic and diluted earnings per share numbers for the three and six months ended December 31, 2007.
The asset quality of the Bank continues to remain strong and consistent over the past two quarters. Non-performing assets totaled $1.6 million or 0.19% of total assets as of December 31, 2007 as compared to $1.5 million or 0.18% of total assets as of June 30, 2007. Net charge-offs totaled $275,000 or 0.04% of average loans for the six months ended December 31, 2007. This has been accomplished by the strict adherence to the Bank’s long standing disciplined credit culture that emphasizes the consistent application of our underwriting standards to all loans, including individual purchased loans. Additionally, the Bank’s mortgage portfolio has remained strongly anchored in traditional mortgage products. In this regard, the Bank has not originated or purchased teaser option-ARM loans, negative amortizing loans or high LTV loans.
Total assets increased to $830 million at December 31, 2007 from $800 million at June 30, 2007. This increase was primarily due to strong growth in the Bank’s commercial and multifamily real estate portfolios as total loans increased from $702 million at June 30, 2007 to $743 million at December 31, 2007. The Bank continues to focus in these areas in an effort to diversify its loan portfolio as well as to increase its net interest margin.
The Bank’s net interest margin increased to 2.45% for the quarter ended December 31, 2007 from 2.38% for the quarter ended December 31, 2006. The increase was primarily the result of increasing yields on earning assets.
“Overall, the Bank’s core performance for the latest quarter was strong and the continued emphasis on credit quality has been paying off in the form of low delinquencies and charge-offs despite industry trends,” said Kay Hoveland, President/CEO.
This release contains certain forward-looking statements. Forward-looking statements can be identified by the fact that they do not relate strictly to historical or current facts. They often include words like “believe,” “expect,” “anticipate,” “estimate” and “intend” or future or conditional verbs such as “will,” “would,” “should,” “could” or “may.” Certain factors that could cause actual results to differ materially from expected results include delays in completing the offering, changes in the interest rate environment, changes in general economic conditions, legislative and regulatory changes that adversely affect the business of K-Fed Bancorp and Kaiser Federal Bank, and changes in the securities markets.
K-FED BANCORP
Selected Financial Tables and Ratios (Unaudited)
December 31, 2007
(Dollars in thousands, except share data)
Selected Financial Condition Data and Ratios: | | December 31 2007 | | June 30 2007 | |
| Total assets | | $ | 830,385 | | $ | 799,625 | |
| Gross loans receivable | | | 743,593 | | | 701,962 | |
| Allowance for loan losses | | | (2,882 | ) | | (2,805 | ) |
| Cash and cash equivalents | | | 31,448 | | | 26,732 | |
| Total deposits | | | 463,781 | | | 494,128 | |
| Federal Home Loan Bank advances | | | 245,019 | | | 210,016 | |
| State of California time deposits | | | 25,000 | | | — | |
| Total stockholders’ equity | | $ | 93,525 | | $ | 92,317 | |
| | | | | | | | |
Asset Quality Ratios: | | | | | | | |
| Equity to total assets | | | 11.26 | % | | 11.55 | % |
| Delinquent loans to total loans | | | 0.27 | % | | 0.18 | % |
Non-accrual loans to total loans | | | 0.21 | % | | 0.16 | % |
| Non-performing assets to total assets | | | 0.19 | % | | 0.18 | % |
| Net charge-offs to average loans outstanding | | | 0.04 | % | | 0.07 | % |
| Allowance for loan losses to total loans | | | 0.39 | % | | 0.40 | % |
| Allowance for loan losses to non-performing loans | | | 188.45 | % | | 245.84 | % |
| |
Selected Results of Operations Data and Ratios: | | Three Months Ended December 31 | | Six Months Ended December 31 | |
| | | 2007 | | 2006 | | 2007 | | 2006 | |
| Interest income | | $ | 11,251 | | $ | 10,245 | | $ | 22,238 | | $ | 19,970 | |
| Interest expense | | | (6,488 | ) | | (5,859 | ) | | (12,948 | ) | | (11,012 | ) |
| Net interest income | | | 4,763 | | | 4,386 | | | 9,290 | | | 8,958 | |
| Provision for loan losses | | | (184 | ) | | (180 | ) | | (352 | ) | | (303 | ) |
Net interest income after provision for loan losses | | | 4,579 | | | 4,206 | | | 8,938 | | | 8,655 | |
| Noninterest income | | | 1,040 | | | 1,009 | | | 2,069 | | | 2,086 | |
| Noninterest expense, excluding stock offering costs | | | (3,811 | ) | | (3,533 | ) | | (7,651 | ) | | (6,961 | ) |
| Stock offering costs | | | (1,270 | ) | | — | | | (1,270 | ) | | — | |
| Income before income tax expense | | | 538 | | | 1,682 | | | 2,086 | | | 3,780 | |
| Income tax expense | | | (132 | ) | | (537 | ) | | (687 | ) | | (1,320 | ) |
| Net income | | $ | 406 | | $ | 1,145 | | $ | 1,399 | | $ | 2,460 | |
Performance Ratios: | | | | | | | | | | | | | |
| Net income per share – basic and diluted | | $ | 0.03 | | $ | 0.08 | | $ | 0.10 | | $ | 0.18 | |
| Return on average assets | | | 0.20 | % | | 0.59 | % | | 0.35 | % | | 0.65 | % |
| Return on equity | | | 1.74 | % | | 4.94 | % | | 3.00 | % | | 5.31 | % |
| Net interest margin | | | 2.45 | % | | 2.38 | % | | 2.40 | % | | 2.48 | % |
| Efficiency ratio (excluding stock offering expenses) | | | 65.68 | % | | 65.49 | % | | 67.36 | % | | 63.03 | % |
| |
| | | At December 31, | | At June 30, | |
Non-accrual loans Data: | | 2007 | | 2007 | |
Real estate loans: | | | | |
| One- to four-family | | $ | 1,439 | | $ | 1,115 | |
| Commercial | | | — | | | — | |
| Multi-family | | | — | | | — | |
Other loans: | | | | | | | |
| Automobile | | | 89 | | | 19 | |
| Home Equity | | | — | | | — | |
| Other | | | 1 | | | 7 | |
| Total | | | 1,529 | | | 1,141 | |
| | | | | | | | |
Real estate owned and Repossessed assets: | | | | | | | |
Real estate loans: | | | | | | | |
| One- to four-family | | | — | | | 238 | |
| Commercial | | | — | | | — | |
| Multi-family | | | — | | | — | |
Other loans: | | | | | | | |
| Automobile | | | 88 | | | 74 | |
| Home equity | | | — | | | — | |
| Other | | | — | | | — | |
| Total | | | 88 | | | 312 | |
| | | | | | | | |
| Total non-performing assets | | $ | 1,617 | | $ | 1,453 | |
| | | | | | | | |
| | | | | | | | |
| | | Loans Delinquent : | | | | | |
Delinquent Loans Data: | | 60-89 Days | | 90 Days or More | | Total Delinquent Loans | |
| | | Number of Loans | | Amount | | Number of Loans | | Amount | | Number of Loans | | Amount | |
| | | | |
At December 31, 2007 | | | | | | | | | | | | | | | | | | | |
| Real estate loans: | | | | | | | | | | | | | | | | | | | |
| One- to four-family | | | 1 | | $ | 416 | | | 3 | | $ | 1,439 | | | 4 | | $ | 1,855 | |
| Commercial | | | — | | | — | | | — | | | — | | | — | | | — | |
| Multi-family | | | — | | | — | | | — | | | — | | | — | | | — | |
| Other loans: | | | | | | | | | | | | | | | | | | | |
| Automobile | | | 5 | | | 57 | | | 5 | | | 89 | | | 10 | | | 146 | |
| Home equity | | | — | | | — | | | — | | | — | | | — | | | — | |
| Other | | | 4 | | | 2 | | | 2 | | | 1 | | | 6 | | | 3 | |
| Total loans | | | 10 | | $ | 475 | | | 10 | | $ | 1,529 | | | 20 | | $ | 2,004 | |
| | | | | | | | | | | | | | | | | | | | |
At June 30, 2007 | | | | | | | | | | | | | | | | | | | |
| Real estate loans: | | | | | | | | | | | | | | | | | | | |
| One- to four-family | | | — | | $ | — | | | 2 | | $ | 1,115 | | | 2 | | $ | 1,115 | |
| Commercial | | | — | | | — | | | — | | | — | | | — | | | — | |
| Multi-family | | | — | | | — | | | — | | | — | | | — | | | — | |
| Other loans: | | | | | | | | | | | | | | | | | | | |
| Automobile | | | 7 | | | 111 | | | 2 | | | 19 | | | 9 | | | 130 | |
| Home equity | | | — | | | — | | | — | | | — | | | — | | | — | |
| Other | | | 5 | | | 8 | | | 4 | | | 7 | | | 9 | | | 15 | |
| Total loans | | | 12 | | $ | 119 | | | 8 | | $ | 1,141 | | | 20 | | $ | 1,260 | |
