UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-QSB
(Mark One)
[X] QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT
OF 1934
For the quarterly period ended September 30, 2002
---------------------------------
OR
[ ] TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE EXCHANGE ACT
For the transition period from ____________ to _______________
Commission File Number: 1-13904
--------------
KENTUCKY FIRST BANCORP, INC.
- --------------------------------------------------------------------------------
(Exact name of small business issuer as specified in its charter)
Delaware 61-1281483
- ------------------------------------ -----------------------------------
(State or other jurisdiction of (IRS Employer Identification No.)
incorporation or organization)
308 North Main Street, Cynthiana, Kentucky 41031
- --------------------------------------------------------------------------------
(Address of principal executive offices)
(859) 234-1440
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(Issuer's telephone number)
- --------------------------------------------------------------------------------
(Former name, former address and former fiscal year,
if changed since last report)
APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY
PROCEEDINGS DURING THE PRECEDING FIVE YEARS
Check whether the issuer filed all documents and reports required to be filed by
Section 12, 13 or 15(d) of the Exchange Act after the distribution of securities
under a plan confirmed by a court.
Yes [ ] No [ ]
APPLICABLE ONLY TO CORPORATE ISSUERS
State the number of shares outstanding of each of the issuer's classes of common
equity, as of the latest practicable date: November 11, 2002 - 884,670 shares of
common stock
Transitional Small Business Disclosure Format (Check one): Yes [ ] No [X]
Page 1 of 15
INDEX
Page
----
PART I
ITEM I - FINANCIAL STATEMENTS
Consolidated Statements of Financial Condition 3
Consolidated Statements of Earnings 4
Consolidated Statements of Comprehensive Income 5
Consolidated Statements of Cash Flows 6
Notes to Consolidated Financial Statements 8
ITEM II MANAGEMENT'S DISCUSSION AND ANALYSIS
OR PLAN OF OPERATION 10
ITEM III CONTROLS AND PROCEDURES 13
PART II - OTHER INFORMATION 14
SIGNATURES 15
CERTIFICATIONS 16
2
ITEM I FINANCIAL STATEMENTS
KENTUCKY FIRST BANCORP, INC.
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
(In thousands, except share data)
SEPTEMBER 30, JUNE 30,
ASSETS 2002 2002
Cash and due from banks $ 546 $ 600
Interest-bearing deposits in other financial institutions 1,317 3,079
------- -------
Cash and cash equivalents 1,863 3,679
Investment securities available for sale - at market 13,729 11,105
Mortgage-backed securities available for sale - at market 21,186 22,204
Loans receivable - net 38,713 39,355
Office premises and equipment - at depreciated cost 1,348 1,237
Real estate acquired through foreclosure - 45
Federal Home Loan Bank stock - at cost 1,494 1,477
Accrued interest receivable 499 484
Prepaid expenses and other assets 74 86
------- -------
Total assets $78,906 $79,672
======= =======
LIABILITIES AND SHAREHOLDERS' EQUITY
Deposits $53,102 $54,119
Advances from the Federal Home Loan Bank 11,790 11,794
Accrued interest payable 142 156
Other liabilities 260 179
Accrued federal income taxes 163 5
Deferred federal income taxes 445 269
------- -------
Total liabilities 65,902 66,522
Shareholders' equity
Preferred stock - authorized 500,000 shares of $.01 par value;
no shares issued - -
Common stock - authorized 3,000,000 shares of $.01 par value;
1,388,625 shares issued 14 14
Additional paid-in capital 9,301 9,301
Retained earnings - restricted 9,525 9,386
Less shares acquired by stock benefit plans (462) (462)
Less 510,898 and 463,297 shares of treasury stock at September 30,
2002 and June 30, 2002, respectively - at cost (6,130) (5,444)
Accumulated comprehensive income, unrealized gains on securities
designated as available for sale, net of related tax effects 756 355
------- -------
Total shareholders' equity 13,004 13,150
------- -------
Total liabilities and shareholders' equity $78,906 $79,672
======= =======
3
KENTUCKY FIRST BANCORP, INC.
CONSOLIDATED STATEMENTS OF EARNINGS
For the three months ended September 30,
(In thousands, except share data)
2002 2001
Interest income
Loans $ 746 $ 933
Mortgage-backed securities 307 227
Investment securities 158 114
Interest-bearing deposits and other 21 39
------ ------
Total interest income 1,232 1,313
Interest expense
Deposits 375 562
Borrowings 126 111
------ ------
Total interest expense 501 673
------ ------
Net interest income 731 640
Provision for losses on (recoveries of) loans (50) 3
------ ------
Net interest income after provision
for losses on (recoveries of) loans 781 637
Other income
Service charges on deposit accounts 35 38
Other operating 18 14
------ ------
Total other income 53 52
General, administrative and other expense
Employee compensation and benefits 253 228
Occupancy and equipment 45 43
Data processing 38 36
State franchise tax 16 15
Other operating 74 79
------ ------
Total general, administrative and other expense 426 401
------ ------
Earnings before income taxes 408 288
Federal income taxes
Current 158 78
Deferred (31) 5
------ ------
Total federal income taxes 127 83
------ ------
NET EARNINGS $ 281 $ 205
====== ======
EARNINGS PER SHARE
Basic $ 0.32 $ 0.23
====== ======
Diluted $ 0.31 $ 0.22
====== ======
4
KENTUCKY FIRST BANCORP, INC.
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
For the three months ended September 30,
(In thousands)
2002 2001
Net earnings $281 $205
Other comprehensive income, net of tax:
Unrealized holding gains on securities during the period, net
of taxes of $207 and $139 in 2002 and 2001, respectively 401 269
---- ----
Comprehensive income $682 $474
==== ====
Accumulated comprehensive income $756 $354
==== ====
5
KENTUCKY FIRST BANCORP, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
For the three months ended September 30,
(In thousands)
2002 2001
Cash flows from operating activities:
Net earnings for the period $ 281 $ 205
Adjustments to reconcile net earnings to net cash
provided by (used in) operating activities:
Amortization of discounts and premiums on loans,
investments and mortgage-backed securities - net (5) (5)
Depreciation and amortization 19 19
Amortization of deferred loan origination fees (3) (3)
Provision for losses on loans -- 3
Gain on sale of real estate acquired through foreclosure (5) --
Federal Home Loan Bank stock dividends (17) (25)
Increase (decrease) in cash due to changes in:
Accrued interest receivable (15) (63)
Prepaid expenses and other assets 12 7
Accrued interest payable (14) 4
Other liabilities 81 26
Federal income taxes
Current 158 58
Deferred (31) 5
------- -------
Net cash provided by operating activities 461 231
Cash flows provided by (used in) investing activities:
Proceeds from maturity of investment securities - 1,514
Purchase of investment securities (2,372) -
Purchase of mortgage-backed securities - (6,093)
Principal repayments on mortgage-backed securities 1,379 674
Purchase of loans - (970)
Loan principal repayments 2,857 2,889
Loan disbursements (2,212) (2,563)
Purchase of office premises and equipment (130) (15)
Proceeds from sale of real estate acquired through foreclosure 50 -
------- -------
Net cash used in investing activities (428) (4,564)
Cash flows provided by (used in) financing activities:
Net increase (decrease) in deposits (1,017) 735
Proceeds from borrowed funds - 3,000
Repayment of borrowed funds (4) (4)
Purchase of treasury stock (686) -
Dividends on common stock (142) (129)
------- -------
Net cash provided by (used in) financing activities (1,849) 3,602
------- -------
Net decrease in cash and cash equivalents (1,816) (731)
Cash and cash equivalents at beginning of period 3,679 2,576
------- -------
Cash and cash equivalents at end of period $ 1,863 $ 1,845
======= =======
6
KENTUCKY FIRST BANCORP, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS (CONTINUED)
For the three months ended September 30,
(In thousands)
2002 2001
Supplemental disclosure of cash flow information:
Cash paid during the period for:
Federal income taxes $ -- $ 20
==== ====
Interest on deposits and borrowings $515 $669
==== ====
Supplemental disclosure of noncash investing activities:
Unrealized gains on securities designated as available for sale,
net of related tax effects $401 $269
==== ====
7
KENTUCKY FIRST BANCORP, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
For the three months ended September 30, 2002 and 2001
1. Basis of Presentation
---------------------
The accompanying unaudited consolidated financial statements were prepared
in accordance with instructions for Form 10-QSB and, therefore, do not
include information or footnotes necessary for a complete presentation of
consolidated financial position, results of operations and cash flows in
conformity with accounting principles generally accepted in the United
States of America. Accordingly, these financial statements should be read
in conjunction with the consolidated financial statements and notes thereto
of Kentucky First Bancorp, Inc. (the "Corporation") included in the Annual
Report on Form 10-KSB for the year ended June 30, 2002. However, in the
opinion of management, all adjustments (consisting of only normal recurring
accruals) which are necessary for a fair presentation of the financial
statements have been included. The results of operations for the three
month period ended September 30, 2002 are not necessarily indicative of the
results which may be expected for the entire fiscal year.
2. Principles of Consolidation
---------------------------
The accompanying consolidated financial statements include the accounts of
the Corporation and First Federal Savings Bank (the "Savings Bank"). All
significant intercompany items have been eliminated.
3. Earnings Per Share
------------------
Basic earnings per share is computed based upon the weighted-average shares
outstanding during the period, less shares in the ESOP that are unallocated
and not committed to be released. Weighted-average common shares deemed
outstanding gives effect to 36,651 and 45,810 unallocated ESOP shares for
the three month periods ended September 30, 2002 and 2001, respectively.
Diluted earnings per share is computed taking into consideration common
shares outstanding and dilutive potential common shares to be issued under
the Corporation's stock option plan. The computations are as follows:
2002 2001
Weighted-average common shares
outstanding (basic) 867,215 894,355
Dilutive effect of assumed exercise
of stock options 45,333 33,157
------- -------
Weighted-average common shares
outstanding (diluted) 912,548 927,512
======= =======
4. Effects of Recent Accounting Pronouncements
-------------------------------------------
In August 2001, the Financial Accounting Standards Board ("FASB") issued
Statement of Financial Accounting Standards ("SAFS") No. 144, "Accounting
for the Impairment or Disposal of Long-Lived Assets." SFAS No. 144 carries
over the recognition and measurement provisions in SFAS No. 121.
Accordingly, an entity must recognize an impairment loss if the carrying
value of a long-lived asset or asset group (a) is not recoverable and (b)
exceeds its fair value. Similar to SFAS No. 121, SFAS No. 144 requires an
entity to test an asset or asset group for impairment whenever events or
changes in circumstances indicate that its carrying amount may not be
recoverable. SFAS No. 144 differs from SFAS No. 121 in that it provides
guidance on estimating future cash flows to test recoverability. An entity
may use either a probability-weighted approach or best-estimate approach in
developing
8
KENTUCKY FIRST BANCORP, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
For the three months ended September 30, 2002 and 2001
4. Effects of Recent Accounting Pronouncements (continued)
-------------------------------------------
estimates of cash flows to test recoverability. SFAS No. 144 is effective
for financial statements issued for fiscal years beginning after December
15, 2001 and interim periods within those fiscal years. Management adopted
SFAS No. 144 effective July 1, 2002, without material effect on the
Corporation's financial condition or results of operations.
In June 2002, the FASB issued SFAS No. 146, "Accounting for Costs
Associated with Exit or Disposal Activities." SFAS No. 146 provides
financial accounting and reporting guidance for costs associated with exit
or disposal activities, including one-time termination benefits, contract
termination costs other than for a capital lease, and costs to consolidate
facilities or relocate employees. SFAS No. 146 is effective for exit or
disposal activities initiated after December 31, 2002. SFAS No. 146 is not
expected to have a material effect on the Corporation's financial condition
or results of operations.
In October 2002, the FASB issued SFAS No. 147, "Accounting for Certain
Financial Institutions: An Amendment of FASB Statements No. 72 and 144 and
FASB Interpretation No. 9," which removes acquisitions of financial
institutions from the scope of SFAS No. 72, "Accounting for Certain
Acquisitions of Banking and Thrift Institutions," except for transactions
between mutual enterprises. Accordingly, the excess of the fair value of
liabilities assumed over the fair value of tangible and intangible assets
acquired in a business combination should be recognized and accounted for
as goodwill in accordance with SFAS No. 141, "Business Combinations," and
SFAS No. 142, "Goodwill and Other Intangible Assets."
SFAS No. 147 also requires that the acquisition of a less-than-whole
financial institution, such as a branch, be accounted for as a business
combination if the transferred assets and activities constitute a business.
Otherwise, the acquisition should be accounted for as the acquisition of
net assets.
SFAS No. 147 also amends the scope of SFAS No. 144, "Accounting for the
Impairment or Disposal of Long-Lived Assets," to include long-term customer
relationship assets of financial institutions (including mutual
enterprises) such as depositor- and borrower-relationship intangible assets
and credit cardholder intangible assets.
The provisions of SFAS No. 147 related to unidentifiable intangible assets
and the acquisition of a less-than-whole financial institution are
effective for acquisitions for which the date of acquisition is on or after
October 1, 2002. The provisions related to impairment of long-term customer
relationship assets are effective October 1, 2002. Transition provisions
for previously recognized unidentifiable intangible assets are effective on
October 1, 2002, with earlier application permitted.
SFAS No. 147 is not expected to have a material effect on the Corporation's
financial condition or results of operations.
9
KENTUCKY FIRST BANCORP, INC.
ITEM II MANAGEMENT'S DISCUSSION AND ANALYSIS
OR PLAN OF OPERATION
Forward-Looking Statements
- --------------------------
In addition to historical information contained herein, the following discussion
contains forward-looking statements that involve risks and uncertainties.
Economic circumstances, the Corporation's operations and the Corporation's
actual results could differ significantly from those discussed in the
forward-looking statements. Some of the factors that could cause or contribute
to such differences are discussed herein but also include changes in the economy
and interest rates in the nation and the Corporation's market area generally.
Some of the forward-looking statements included herein are the statements
regarding management's determination of the amount and adequacy of the allowance
for loan losses and the effect of recent accounting pronouncements.
Discussion of Financial Condition Changes from June 30, 2002 to September 30,
- --------------------------------------------------------------------------------
2002
- ----
At September 30, 2002, the Corporation's consolidated total assets amounted to
$78.9 million, a decrease of $766,000, or 1.0%, from the total at June 30, 2002.
The decrease in assets, which was centered in decreases in mortgage-backed
securities and loans, was accompanied by a decrease of $1.0 million in deposits.
Liquid assets (i.e. cash, interest-bearing deposits and investment securities)
increased by $808,000, or 5.5%, during the three month period ended September
30, 2002, to a total of $15.6 million at September 30, 2002. Investment
securities purchases totaling $2.4 million were funded generally through excess
liquidity. Mortgage-backed securities totaled $21.2 million at September 30,
2002, a decrease of $1.0 million, or 4.6%, from June 30, 2002 levels. The
decrease in mortgage-backed securities resulted primarily from principal
repayments of $1.4 million, which were partially offset by an increase in
unrealized gains.
Loans receivable amounted to $38.7 million at September 30, 2002, a decrease of
$642,000, or 1.6%, compared to June 30, 2002. Principal repayments amounted to
$2.9 million and were partially offset by loan disbursements of $2.2 million.
The allowance for loan losses totaled $339,000 at September 30, 2002, compared
to $241,000 at June 30, 2002. During the period ended September 30, 2002, the
Corporation realized a recovery totaling $150,000 from settlement of a
nonperforming loan which accounted for the increase in the allowance.
Nonperforming loans totaled $111,000 at September 30, 2002, compared to $51,000
at June 30, 2002. The allowance for loan losses represented 305.4% of
nonperforming loans as of September 30, 2002 and 472.5% at June 30, 2002.
Although management believes that its allowance for loan losses at September 30,
2002 was adequate based upon the available facts and circumstances, there can be
no assurance that additions to such allowance will not be necessary in future
periods, which could adversely affect the Corporation's results of operations.
Deposits totaled $53.1 million at September 30, 2002, a decrease of $1.0
million, or 1.9%, from June 30, 2002 levels. Although management generally
pursues a strategy of moderate growth in deposits, the Savings Bank historically
has not engaged in sporadic increases and decreases in interest rates offered,
nor has it offered the highest interest rate in its market area.
The Corporation's shareholders' equity amounted to $13.0 million and $13.2
million at September 30, 2002 and June 30, 2002, respectively. Net earnings
during the three months ended September 30, 2002 of $281,000 and an increase in
unrealized gains on available for sale securities of $401,000, were partially
offset by dividends paid on common stock totaling $142,000 and purchases of
treasury stock totaling $686,000.
10
KENTUCKY FIRST BANCORP, INC.
MANAGEMENT'S DISCUSSION AND ANALYSIS
OR PLAN OF OPERATION (CONTINUED)
Discussion of Financial Condition Changes from June 30, 2002 to September 30,
- --------------------------------------------------------------------------------
2002 (continued)
- ----
The Savings Bank is required to meet each of three minimum capital standards
promulgated by the Office of Thrift Supervision ("OTS"), hereinafter described
as the tangible capital requirement, the core capital requirement and the
risk-based capital requirement. The tangible capital requirement mandates
maintenance of shareholders' equity less all intangible assets equal to 1.5% of
adjusted total assets. The core capital requirement provides for the maintenance
of tangible capital plus certain forms of supervisory goodwill generally equal
to 4% of adjusted total assets, except for those associations with the highest
examination rating and acceptable levels of risk. The risk-based capital
requirement mandates maintenance of core capital plus general loan loss
allowances equal to 8% of risk-weighted assets as defined by OTS regulations.
At September 30, 2002, the Savings Bank's tangible and core capital totaled
$11.3 million, or 14.5%, of adjusted total assets, which exceeded the minimum
tangible and core capital requirements of $1.2 million and $3.1 million by $10.1
million and $8.2 million, respectively. The Savings Bank's risk-based capital of
$11.6 million, or 31.4% of risk-weighted assets, exceeded the 8% of
risk-weighted assets requirement by $8.7 million.
Comparison of Operating Results for the Three Month Periods Ended September 30,
- --------------------------------------------------------------------------------
2002 and 2001
- -------------
General
- -------
Net earnings amounted to $281,000 for the three months ended September 30, 2002,
an increase of $76,000, or 37.1%, over the $205,000 of net earnings reported for
the three months ended September 30, 2001. The increase in net earnings was due
to a $91,000 increase in net interest income, a $53,000 decrease in the
provision for losses on loans and a $1,000 increase in other income, which were
partially offset by a $25,000 increase in general, administrative and other
expense and a $44,000 increase in the provision for federal income taxes.
Net Interest Income
- -------------------
Total interest income amounted to $1.2 million for the three months ended
September 30, 2002, a decrease of $81,000, or 6.2%, compared to the same quarter
in 2001, due to a decrease in the average yield on interest-earning assets, from
7.24% in 2001 to 6.47% in 2002, partially offset by a $3.6 million, or 5.0%,
increase in the weighted-average balance of interest-earning assets outstanding.
Interest income on loans decreased by $187,000, or 20.0%, due to a $7.4 million,
or 15.8%, decrease in the weighted-average balance of loans outstanding
year-to-year, as well as a 40 basis point decrease in the average yield on
loans, to 7.59% for the three months ended September 30, 2002.
Interest income on mortgage-backed securities increased by $80,000, or 35.2%,
due primarily to a $6.7 million, or 46.2%, increase in the average balance
outstanding, which was partially offset by a decrease in the average yield on
mortgage-backed securities, from 6.22% in the 2001 quarter to 5.76% in the 2002
quarter. Interest income on investment securities and interest-bearing deposits
increased by $26,000, or 17.0%, due primarily to an increase in the average
balance outstanding year-to-year.
Total interest expense amounted to $501,000 for the three months ended September
30, 2002, a decrease of $172,000, or 25.6%, from the 2001 quarter, due to a
decrease in the average cost of funds, from 4.40% in 2001 to 3.07% in 2002,
which was partially offset by a $4.0 million, or 6.5%, increase in the
weighted-average balance of interest-bearing liabilities outstanding
year-to-year. Interest expense on deposits decreased by $187,000, or 33.3%, due
to a 148 basis point decrease in the average cost of deposits, partially offset
by a $928,000, or 1.8%, increase in the weighted-average balance of deposits
outstanding year-to-year. Interest expense on borrowings increased by $15,000,
11
KENTUCKY FIRST BANCORP, INC.
MANAGEMENT'S DISCUSSION AND ANALYSIS
OR PLAN OF OPERATION (CONTINUED)
Comparison of Operating Results for the Three Month Periods Ended September 30,
- --------------------------------------------------------------------------------
2002 and 2001 (continued)
- -------------
Net Interest Income (continued)
- -------------------
or 13.5%, due to a $3.0 million, or 33.8%, increase in the weighted-average
balance of borrowed funds outstanding, which was partially offset by a decrease
in the average cost of borrowed funds, from 4.97% in the 2001 quarter to 4.21%
in the 2002 quarter. The decreases in the level of yields on interest-earning
assets and costs of interest-bearing liabilities resulted primarily from the
overall decrease in interest rates in the economy during calendar 2001. This low
interest rate environment continued through the nine months ended September 30,
2002.
As a result of the foregoing changes in interest income and interest expense,
net interest income increased by $91,000, or 14.2%, to a total of $731,000 for
the three months ended September 30, 2002, compared to the three months ended
September 30, 2001. The interest rate spread amounted to 3.40% and 2.84% during
the three month periods ended September 30, 2002 and 2001, respectively, while
the net interest margin amounted to 3.84% and 3.53% during the three month
periods ended September 30, 2002 and 2001, respectively.
Provision for Losses on Loans
- -----------------------------
The Corporation records a provision for losses on loans based upon an analysis
of historical experience, the volume and type of lending conducted by the
Savings Bank, the status of past due principal and interest payments, general
economic conditions, particularly as such conditions relate to the Savings
Bank's market area, and other factors related to the collectibility of the
Savings Bank's loan portfolio. During the three month period ended September 30,
2002, the Corporation realized a $150,000 recovery on a nonperforming loan.
Based upon the foregoing analysis, management elected to record $100,000 as an
addition to the allowance for loan losses and $50,000 to operations. There can
be no assurance that the loan loss allowance of the Savings Bank will be
adequate to cover losses on nonperforming assets in the future.
Other Income
- ------------
Other income totaled $53,000 for the three months ended September 30, 2002, an
increase of $1,000, or 1.9%, compared to the three months ended September 30,
2001, due primarily to a $5,000 gain on sale of real estate acquired by deed in
lieu of foreclosure, partially offset by a decrease in service charges on
deposit accounts.
General, Administrative and Other Expense
- -----------------------------------------
General, administrative and other expense totaled $426,000 for the three months
ended September 30, 2002, an increase of $25,000, or 6.2%, compared to the three
months ended September 30, 2001. The increase in general, administrative and
other expense resulted primarily from a $25,000, or 11.0%, increase in employee
compensation and benefits. The increase in employee compensation and benefits
was due primarily to an increase in benefit plan costs and normal merit
increases year-to-year.
Federal Income Taxes
- --------------------
The provision for federal income taxes totaled $127,000 for the three months
ended September 30, 2002, an increase of $44,000, or 53.0%, compared to the
three months ended September 30, 2001. The increase resulted primarily from the
increase in net earnings before taxes of $120,000, or 41.7%. The effective tax
rates were 31.1% and 28.8% for the three month periods ended September 30, 2002
and 2001, respectively.
12
KENTUCKY FIRST BANCORP, INC.
ITEM III CONTROLS AND PROCEDURES
The Company's Chief Executive Officer and Chief Financial Officer have evaluated
the Company's disclosure controls and procedures (as such term is defined in
Rule 13a-14 (c) under the Exchange Act) as of a date within 90 days of the date
of filing of this Form 10-QSB. Based upon such evaluation, the Company's Chief
Executive Officer and Chief Financial Officer have concluded that such controls
and procedures are effective to ensure that the information required to be
disclosed by the Company in the reports it files under the Exchange Act is
gathered, analyzed and disclosed with adequate timeliness.
There have been no significant changes in the Company's internal controls or in
other factors that could significantly affect internal controls subsequent to
the date of the evaluation described above.
13
KENTUCKY FIRST BANCORP, INC.
PART II
ITEM 1. Legal Proceedings
-----------------
None.
ITEM 2. Changes in Securities and Use of Proceeds
-----------------------------------------
Not applicable
ITEM 3. Defaults Upon Senior Securities
-------------------------------
Not applicable
ITEM 4. Submission of Matters to a Vote of Security Holders
---------------------------------------------------
Not applicable
ITEM 5. Other Information
-----------------
None
ITEM 6. Exhibits and Reports on Form 8-K
--------------------------------
Reports on Form 8-K: None.
Exhibits:
99.1 Certifications of Chief Executive Officer and
Chief Financial Officer
14
KENTUCKY FIRST BANCORP, INC.
SIGNATURES
In accordance with the requirements of the Exchange Act, the registrant has
caused this report to be signed on its behalf by the undersigned thereunto duly
authorized.
Date: November 14, 2002 By: /s/Betty J. Long
----------------- -----------------------------------
Betty J. Long
President and Chief
Executive Officer
Date: November 14, 2002 By: /s/ Robbie Cox
----------------- ------------------------------------
Robbie Cox
Principal Accounting Officer
15
CERTIFICATION
I, Betty J. Long, President and Chief Executive Officer of Kentucky First
Bancorp, Inc., certify that:
1. I have reviewed this quarterly report on Form 10-QSB of Kentucky First
Bancorp, Inc.;
2. Based on my knowledge, this quarterly report does not contain any untrue
statement of a material fact or omit to state a material fact necessary to make
the statements made, in light of the circumstances under which such statements
were made, not misleading with respect to the period covered by this quarterly
report;
3. Based on my knowledge, the financial statements, and other financial
information included in this quarterly report, fairly present in all material
respects the financial condition, results of operations and cash flows of the
registrant as of, and for, the periods presented in this quarterly report;
4. The registrant's other certifying officers and I are responsible for
establishing and maintaining disclosure controls and procedures (as defined in
Exchange Act Rules 13a-14 and 15d-14) for the registrant and have:
(a) Designed such disclosure controls and procedures to ensure that
material information relating to the registrant, including its
consolidated subsidiaries, is made known to us by others within those
entities, particularly during the period in which this quarterly
report is being prepared;
(b) Evaluated the effectiveness of the registrant's disclosure controls
and procedures as of a date within 90 days prior to the filing date of
this quarterly report (the "Evaluation Date"); and
(c) Presented in this quarterly report our conclusions about the
effectiveness of the disclosure controls and procedures based on our
evaluation as of the Evaluation Date;
5. The registrant's other certifying officers and I have disclosed, based on our
most recent evaluation, to the registrant's auditors and the audit committee of
the registrant's board or directors (or persons fulfilling the equivalent
functions):
(a) all significant deficiencies in the design or operation of internal
controls which could adversely affect the registrant's ability to
record, process, summarize and report financial data and have
identified for the registrant's auditors any material weaknesses in
internal controls; and
(b) any fraud, whether or not material, that involves management or other
employees who have a significant role in the registrant's internal
controls; and
6. The registrant's other certifying officers and I have indicated in this
quarterly report whether there were significant changes in internal controls or
in other factors that could significantly affect internal controls subsequent to
the date of our most recent evaluation, including any corrective actions with
regard to significant deficiencies and material weaknesses.
Date: November 14, 2002
/s/ Betty J. Long
---------------------------------------
Betty J. Long
President and Chief Executive Officer
CERTIFICATION
I, Robbie Cox, Vice President and Chief Financial Officer of Kentucky First
Bancorp, Inc., certify that:
1. I have reviewed this quarterly report on Form 10-QSB of Kentucky First
Bancorp, Inc.;
2. Based on my knowledge, this quarterly report does not contain any untrue
statement of a material fact or omit to state a material fact necessary to make
the statements made, in light of the circumstances under which such statements
were made, not misleading with respect to the period covered by this quarterly
report;
3. Based on my knowledge, the financial statements, and other financial
information included in this quarterly report, fairly present in all material
respects the financial condition, results of operations and cash flows of the
registrant as of, and for, the periods presented in this quarterly report;
4. The registrant's other certifying officers and I are responsible for
establishing and maintaining disclosure controls and procedures (as defined in
Exchange Act Rules 13a-14 and 15d-14) for the registrant and have:
(a) Designed such disclosure controls and procedures to ensure that
material information relating to the registrant, including its
consolidated subsidiaries, is made known to us by others within those
entities, particularly during the period in which this quarterly
report is being prepared;
(b) Evaluated the effectiveness of the registrant's disclosure controls
and procedures as of a date within 90 days prior to the filing date of
this quarterly report (the "Evaluation Date"); and
(c) Presented in this quarterly report our conclusions about the
effectiveness of the disclosure controls and procedures based on our
evaluation as of the Evaluation Date;
5. The registrant's other certifying officers and I have disclosed, based on our
most recent evaluation, to the registrant's auditors and the audit committee of
the registrant's board or directors (or persons fulfilling the equivalent
functions):
(a) all significant deficiencies in the design or operation of internal
controls which could adversely affect the registrant's ability to
record, process, summarize and report financial data and have
identified for the registrant's auditors any material weaknesses in
internal controls; and
(b) any fraud, whether or not material, that involves management or other
employees who have a significant role in the registrant's internal
controls; and
6. The registrant's other certifying officers and I have indicated in this
quarterly report whether there were significant changes in internal controls or
in other factors that could significantly affect internal controls subsequent to
the date of our most recent evaluation, including any corrective actions with
regard to significant deficiencies and material weaknesses.
Date: November 14, 2002
/s/ Robbie Cox
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Robbie Cox
Vice President and Chief Financial Officer