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): August 15, 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 August 15, 2008, K-Fed Bancorp issued a press release disclosing its June 30, 2008 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 August 15, 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: August 15, 2008 By: /s/ Kay M. Hoveland
Kay M. Hoveland
President and Chief Executive Officer
PRESS RELEASE
FOR IMMEDIATE RELEASE
For more information contact:
Kay Hoveland, President/CEO
Dustin Luton, Chief Financial Officer
(626) 339-9663
K-FED BANCORP ANNOUNCES YEAR END EARNINGS
Covina, CA – August 15, 2008. K-FED Bancorp (NASDAQ: KFED), the parent company of Kaiser Federal Bank, reported net income of $3.9 million or $0.29 per diluted share for the year ended June 30, 2008 as compared to $4.7 million or $0.34 per diluted share for the same period last year. Net income declined during the year ended June 30, 2008 primarily due to the recognition of $1.3 million in expenses resulting from the cancellation of the stock offering in November 2007 in connection with the proposed second-step conversion of K-Fed Mutual Holding Company. The recognition of these expenses resulted in a decline of 6-cents-per-share in the Company’s diluted earnings per share for the year ended June 30, 2008.
The Bank’s asset quality remains strong despite continued deterioration in the Southern California housing market. The strong asset quality is the result of a traditional residential real estate loan portfolio with uncompromised underwriting standards. In this regard, the Bank has not originated or purchased construction and development loans, teaser option-ARM loans, negative amortizing loans or high LTV loans. Delinquent loans totaled $1.9 million or 0.26% of total loans as compared to $1.3 million or 0.18% of total loans as of June 30, 2007. Further, non-performing assets totaled $2.9 million or 0.35% of total assets as of June 30, 2008 as compared to $1.5 million or 0.18% of total assets as of June 30, 2007. Net charge-offs totaled $538,000 or 0.07% of average loans for the year ended June 30, 2008 as compared to $446,000 or 0.07% of average loans outstanding for the year ended June 30, 2007.
While the increase in delinquencies and non-performing assets is directionally consistent with current market conditions, the resulting ratios are still well below industry averages. Also, despite this increase the Bank has not experienced significant charge-offs. This is primarily due to the strong underwriting standards that require, among other things, a minimum of 20% equity in the underlying properties which provides protection to both the Bank and the borrowers in this difficult environment.
The Bank’s net interest margin increased to 2.45% for the year ended June 30, 2008 from 2.43% for the year ended June 30, 2007. The increase was primarily the result of a shift from lower yielding one-to-four family real estate loans to higher yielding multifamily and commercial real estate loans.
Total assets increased to $849 million at June 30, 2008 from $800 million at June 30, 2007. This increase was primarily due to strong growth in the Bank’s multifamily and commercial real estate portfolios as total loans increased from $702 million at June 30, 2007 to $745 million at June 30, 2008. The Bank will continue to focus in these areas in an effort to diversify its loan portfolio as well as increase its net interest margin.
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)
June 30, 2008
(Dollars in thousands, except share data)
| Selected Financial Condition Data and Ratios: | | June 30 2008 | | June 30 2007 | |
| Total assets | | $ | 849,016 | | $ | 799,625 | |
| Gross loans receivable | | | 745,435 | | | 701,962 | |
| Allowance for loan losses | | | (3,229 | ) | | (2,805 | ) |
| Cash and cash equivalents | | | 44,315 | | | 22,339 | |
| Total deposits | | | 495,058 | | | 494,128 | |
| Federal Home Loan Bank advances | | | 207,019 | | | 210,016 | |
| State of California time deposits | | | 25,000 | | | — | |
| Total stockholders’ equity | | $ | 90,728 | | $ | 92,317 | |
| | | | | | | | |
Asset Quality Ratios: | | | | | | | |
| Equity to total assets | | | 10.69 | % | | 11.55 | % |
| Delinquent loans to total loans | | | 0.26 | % | | 0.18 | % |
Non-performing loans to total loans | | | 0.23 | % | | 0.16 | % |
| Non-performing assets to total assets | | | 0.35 | % | | 0.18 | % |
| Net charge-offs to average loans outstanding | | | 0.07 | % | | 0.07 | % |
| Allowance for loan losses to total loans | | | 0.43 | % | | 0.40 | % |
| Allowance for loan losses to non-performing loans | | | 186.66 | % | | 245.84 | % |
| |
| Selected Results of Operations Data and Ratios: | | | | Years Ended June 30 | |
| | | | | | | 2008 | | 2007 | |
| Interest income | | | | | | | | $ | 45,238 | | $ | 41,166 | |
| Interest expense | | | | | | | | | (25,769 | ) | | (23,140 | ) |
| Net interest income | | | | | | | | | 19,469 | | | 18,026 | |
| Provision for loan losses | | | | | | | | | (962 | ) | | (529 | ) |
Net interest income after provision for loan losses | | | | | | | | | 18,507 | | | 17,497 | |
| Noninterest income | | | | | | | | | 4,320 | | | 4,259 | |
| Noninterest expense, excluding stock offering costs | | | | | | | | | (15,477 | ) | | (14,518 | ) |
| Stock offering costs | | | | | | | | | (1,279 | ) | | — | |
| Income before income tax expense | | | | | | | | | 6,071 | | | 7,238 | |
| Income tax expense | | | | | | | | | (2,163 | ) | | (2,534 | ) |
| Net income | | | | | | | | $ | 3,908 | | $ | 4,704 | |
| Performance Ratios: | | | | | | | | | | | | | |
| Net income per share – basic | | | | | | | | $ | 0.29 | | $ | 0.35 | |
| Net income per share – diluted | | | | | | | | $ | 0.29 | | $ | 0.34 | |
| Return on average assets | | | | | | | | | 0.47 | % | | 0.61 | % |
| Return on average equity | | | | | | | | | 4.21 | % | | 5.09 | % |
| Net interest margin | | | | | | | | | 2.45 | % | | 2.43 | % |
| Efficiency ratio (excluding stock offering expenses) | | | | | | | | | 64.98 | % | | 65.15 | % |
| |
| | | At June 30, | | At June 30, | |
| Non-accrual loans Data: | | 2008 | | 2007 | |
| Real estate loans: | | | | |
| One- to four-family | | $ | 1,583 | | $ | 1,115 | |
| Commercial | | | — | | | — | |
| Multi-family | | | — | | | — | |
| Other loans: | | | | | | | |
| Automobile | | | 132 | | | 19 | |
| Home Equity | | | — | | | — | |
| Other | | | 15 | | | 7 | |
| Total | | | 1,730 | | | 1,141 | |
| | | | | | | | |
| Real estate owned and Repossessed assets: | | | | | | | |
| Real estate loans: | | | | | | | |
| One- to four-family | | | 1,045 | | | 238 | |
| Commercial | | | — | | | — | |
| Multi-family | | | — | | | — | |
| Other loans: | | | | | | | |
| Automobile | | | 161 | | | 74 | |
| Home equity | | | — | | | — | |
| Other | | | — | | | — | |
| Total | | | 1,206 | | | 312 | |
| | | | | | | | |
| Total non-performing assets | | $ | 2,936 | | $ | 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 June 30, 2008 | | | | | | | | | | | | | | | | | | | |
| Real estate loans: | | | | | | | | | | | | | | | | | | | |
| One- to four-family | | | — | | $ | — | | | 4 | | $ | 1,583 | | | 4 | | $ | 1,583 | |
| Commercial | | | — | | | — | | | — | | | — | | | — | | | — | |
| Multi-family | | | — | | | — | | | — | | | — | | | — | | | — | |
| Other loans: | | | | | | | | | | | | | | | | | | | |
| Automobile | | | 10 | | | 159 | | | 8 | | | 132 | | | 18 | | | 291 | |
| Home equity | | | — | | | — | | | — | | | — | | | — | | | — | |
| Other | | | 22 | | | 34 | | | 9 | | | 15 | | | 31 | | | 49 | |
| Total loans | | | 32 | | $ | 193 | | | 21 | | $ | 1,730 | | | 53 | | $ | 1,923 | |
| | | | | | | | | | | | | | | | | | | | |
| 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 | |
| | | | | | | | | | | | | | | | | | | | |
