Kentucky First Federal Bancorp(KFFB) - 2019 Q3 - Quarterly Report

Financial Position - As of March 31, 2019, total assets increased by $1.0 million, or 0.3%, to $319.4 million compared to June 30, 2018[94] - Total liabilities increased by $1.7 million or 0.7% to $252.9 million at March 31, 2019, mainly due to a $3.0 million or 5.6% increase in FHLB advances[104] - Shareholders' equity decreased by $695,000 or 1.0% to $66.5 million at March 31, 2019, primarily due to common shares purchased as treasury shares[105] Cash and Investments - Cash and cash equivalents rose by $250,000, or 2.5%, to $10.2 million at March 31, 2019[95] - Investment securities increased by $307,000, or 29.2%, to $1.4 million at March 31, 2019[96] Loans and Credit Quality - Loans receivable, net, increased by $1.4 million, or 0.5%, to $271.7 million at March 31, 2019[97] - Non-performing loans were approximately $7.9 million, or 2.9% of total loans, as of March 31, 2019, compared to $7.7 million, or 3.1%, at June 30, 2018[98] - The allowance for loan losses was $1.5 million at March 31, 2019, representing 19.4% of non-performing loans[98] - Classified loans as a percentage of total loans decreased to 3.9% at March 31, 2019, from 4.4% at June 30, 2018[99] Income and Expenses - Net income for the nine months ended March 31, 2019, totaled $512,000, a decrease of $799,000 or 60.9% from $1.3 million for the same period in 2018[108] - Net interest income before provision for loan losses decreased by $248,000 or 3.4% to $7.1 million for the nine-month period ended March 31, 2019[109] - Non-interest income decreased by $440,000 or 69.5% to $193,000, primarily due to a decrease in earnings on bank-owned life insurance[115] Interest and Deposits - Total deposits increased to $192.1 million at March 31, 2019, with a total interest-bearing liability cost of 1.37%[93] - The net interest margin for the three months ended March 31, 2019, was 3.18%, compared to 3.38% for the same period in 2018[93] - Net interest spread decreased from 332 basis points to 300 basis points for the nine-month period ended March 31, 2019[113] - The average rate paid on deposits increased by 27 basis points to 99 basis points for the nine months ended March 31, 2019[112] Operating Expenses - Employee compensation and benefits increased by $277,000 or 6.8% to $4.4 million, largely due to higher contributions to the defined benefit plan[117] - Auditing and accounting expenses decreased by $58,000 or 85.3% to $10,000 for the quarterly period ended March 31, 2019[127] - Advertising expenses decreased by $15,000 or 26.8% to $41,000 for the three months ended March 31, 2019[127] - Employee compensation and benefits increased by $93,000 or 6.8% to $1.5 million for the quarter ended March 31, 2019[128] - DB pension contributions increased by $144,000 or 82.9% to $318,000 for the three-month period ended March 31, 2019[128] - Federal income tax expense increased by $27,000 or 128.6% to $48,000 for the three months ended March 31, 2019[129] - The Company recorded a federal income tax expense of $117,000 for the nine months ended March 31, 2019, compared to an income tax benefit of $4,000 in the prior year[119]