Kentucky First Federal Bancorp(KFFB) - 2022 Q3 - Quarterly Report

Financial Performance - Net income for the nine months ended March 31, 2022, was $1,384 thousand, an increase of 22.6% compared to $1,128 thousand for the same period in 2021[11]. - Earnings per share for the nine months ended March 31, 2022, was $0.17, compared to $0.14 for the same period in 2021, indicating a growth of 21.4%[11]. - Net income for the three months ended March 31, 2022, was $334,000, a decrease of 29.4% from $473,000 for the same period in 2021[37]. - Net earnings for the nine months ended March 31, 2022, were $1.4 million or $0.17 diluted earnings per share, an increase of $256,000 or 22.7% from the prior year[110]. Assets and Liabilities - Total assets decreased to $333,898 thousand as of March 31, 2022, from $338,063 thousand on June 30, 2021, representing a decline of approximately 1.5%[9]. - Total liabilities decreased by $4.5 million or 1.6% to $281.3 million at March 31, 2022, primarily due to a decrease in borrowings[106]. - Total deposits increased to $238,642 thousand as of March 31, 2022, up from $226,843 thousand on June 30, 2021, reflecting a growth of approximately 5.9%[9]. - Total shareholders' equity increased to $52,646 thousand as of March 31, 2022, from $52,296 thousand on June 30, 2021, reflecting a growth of approximately 0.7%[9]. Income and Expenses - Net interest income after provision for loan losses was $7,082 thousand for the nine months ended March 31, 2022, compared to $7,119 thousand for the same period in 2021, showing a slight decrease of 0.5%[11]. - Total non-interest expense decreased to $5,746 thousand for the nine months ended March 31, 2022, down from $6,131 thousand in the same period of 2021, a reduction of approximately 6.3%[11]. - Non-interest income decreased by $11,000 or 2.5% to $422,000 for the nine months ended March 31, 2022, primarily due to a decrease in net gains on sales of loans[116]. - Non-interest expense decreased by $148,000 or 7.3% to $1.9 million for the three months ended March 31, 2022, primarily due to a decrease in employee compensation and benefits[130]. Loans and Credit Quality - Loans, net of allowance, decreased to $269,396 thousand as of March 31, 2022, from $297,902 thousand on June 30, 2021, a decline of approximately 9.6%[9]. - The allowance for loan losses decreased to $1.484 million as of March 31, 2022, down from $1.622 million as of June 30, 2021, reflecting a reduction of 8.5%[43]. - Non-performing loans totaled approximately $5.7 million or 2.1% of total loans at March 31, 2022, a decrease from $6.7 million or 2.2% at June 30, 2021[101]. - The total past due loans as of March 31, 2022, amounted to $3.817 million, with $2.765 million past due for 30-89 days and $1.052 million greater than 90 days[56]. Cash and Cash Equivalents - The ending cash and cash equivalents as of March 31, 2022, were $46,061,000, significantly higher than $14,767,000 as of March 31, 2021[23]. - Cash and cash equivalents increased by $24.4 million or 112.8% to $46.1 million at March 31, 2022, primarily due to increased deposits and loan repayments[99]. Economic Outlook and Strategy - The company anticipates potential impacts from general economic trends, inflation, and competitive conditions in the financial services industry, which may affect future performance[82]. - The company has not undertaken the responsibility to publicly release revisions to forward-looking statements, indicating a cautious approach to future projections[82]. - The company expects to recognize a one-time cumulative effect adjustment to the allowance for loan losses as of the beginning of the first reporting period in which the new credit loss standard is effective[33].