EXHIBIT 99
Kentucky First Federal Bancorp
Hazard, Kentucky and Frankfort, Kentucky
For Immediate Release January 23, 2006
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 for First Federal Savings and Loan Association of Hazard and First Federal Savings Bank of Frankfort, Kentucky, announced net earnings of $449,000 or $0.05 earnings per share for the three months ended December 31, 2005, compared to $338,000 for First Federal Savings and Loan of Hazard for the three months ended December 31, 2004, an increase of $111,000 or 32.8%. Net earnings for the six months ended December 31, 2005, were $940,000, or $0.11 per share compared to $648,000 for First Federal Savings and Loan of Hazard for the six months ended December 31, 2004, an increase of $292,000 or 45.1%. On March 2, 2005, the mutual-to-stock conversion of First Federal Savings and Loan of Hazard culminated in the formation of Kentucky First Federal Bancorp and the acquisition of Frankfort First Bancorp, Inc., parent company of First Federal Savings Bank of Frankfort. As First Federal Savings and Loan of Hazard was not a stock-owned company during the comparable three and six month periods in 2004, earnings per share are not reported for those periods.
The increase in net earnings for the three and six month periods ended December 31, 2005 was primarily attributable to the inclusion of earnings generated by First Federal Savings Bank of Frankfort. Net Interest Income increased from $1.8 million to $3.4 million, an increase of $1.6 million or 86.3%, for the six month period just ended. Offsetting this increase was an increase in General, Administrative, and Other Expense from $805,000 to $2.1 million, an increase of $1.3 million or 159.1%. This increase is attributable to the assumption of the operating expenses of First Federal Savings Bank of Frankfort, as well as increased costs associated with operating a public company.
At December 31, 2005, the Company reported its book value per share as $7.55.
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, 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 and changes in the securities markets. 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, which operates one banking office in Hazard, Kentucky and First Federal Savings Bank, which operates three banking offices in Frankfort, Kentucky. Kentucky First Federal Bancorp shares are traded on the Nasdaq National Market under the symbol KFFB. At December 31, 2005 the Company had approximately 8,652,000 shares outstanding, of which approximately 36.9% is held by non-affiliates.
SUMMARY OF FINANCIAL HIGHLIGHTS
Condensed Consolidated Statements of Financial Condition
| | December 31,
2005 | | June 30,
2005 | |
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| | (In thousands, except share data) | |
| | (Unaudited) | | (Audited) | |
Assets | | | | | | | |
Cash and Cash Equivalents | | $ | 3,175 | | $ | 8,358 | |
Investment Securities | | | 80,192 | | | 86,836 | |
Loans Receivable, net | | | 153,697 | | | 151,712 | |
Other Assets | | | 26,642 | | | 27,009 | |
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Total Assets | | $ | 263,706 | | $ | 273,915 | |
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Liabilities | | | | | | | |
Deposits | | $ | 146,907 | | $ | 155,044 | |
FHLB Advances | | | 50,261 | | | 50,985 | |
Other Liabilities | | | 1,183 | | | 1,947 | |
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Total Liabilities | | | 198,351 | | | 207,976 | |
Shareholders’ Equity | | | 65,355 | | | 65,939 | |
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Total Liabilities and Equity | | $ | 263,706 | | $ | 273,915 | |
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Book Value Per Share | | $ | 7.55 | | $ | 7.67 | |
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Condensed Consolidated Statements of Earnings
(In thousands, except share data)
| | Six months ended December 31, | | Three months ended December 31, | |
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| | 2005 | | 2004 | | 2005 | | 2004 | |
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| | (Unaudited) | | (Unaudited) | |
Interest Income | | $ | 6,394 | | $ | 2,880 | | $ | 3,186 | | $ | 1,447 | |
Interest Expense | | | 3,031 | | | 1,075 | | | 1,502 | | | 521 | |
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Net Interest Income | | | 3,363 | | | 1,805 | | | 1,684 | | | 926 | |
Provision for Losses on Loans | | | 24 | | | 28 | | | 10 | | | 13 | |
Other Operating Income | | | 122 | | | 11 | | | 63 | | | 6 | |
General, Administrative, and Other Expense | | | 2,086 | | | 805 | | | 1,066 | | | 408 | |
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Earnings Before Federal Income Taxes | | | 1,375 | | | 983 | | | 671 | | | 511 | |
Federal Income Taxes | | | 435 | | | 335 | | | 222 | | | 173 | |
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Net Earnings | | $ | 940 | | $ | 648 | | $ | 449 | | $ | 338 | |
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Basic Earnings Per Share | | $ | 0.11 | | | N/A | | $ | 0.05 | | | N/A | |
Diluted Earnings Per Share | | $ | 0.11 | | | N/A | | $ | 0.05 | | | N/A | |
Dividends Per Share | | $ | 0.20 | | | N/A | | $ | 0.10 | | | N/A | |
Weighted average outstanding shares: | | | | | | | | | | | | | |
Basic | | | 8,268,686 | | | N/A | | | 8,278,975 | | | N/A | |
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Diluted | | | 8,268,686 | | | N/A | | | 8,278,975 | | | N/A | |
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