Financial Performance - Net income for the six months ended December 31, 2022, was $747,000, a decrease of 29% compared to $1,050,000 for the same period in 2021[12]. - Comprehensive income for the six months ended December 31, 2022, was $404,000, compared to $1,050,000 in the prior year, indicating a significant decrease[15]. - Earnings per share for the six months ended December 31, 2022, was $0.09, down from $0.13 in the same period of 2021[12]. - Net income for the six months ended December 31, 2022, was $747,000, a decrease of 29% compared to $1,050,000 for the same period in 2021[23]. - The effective tax rate for the six-month period ended December 31, 2022, was 23.5%, compared to 18.7% for the same period in 2021[114]. Income and Expenses - Total interest income rose to $6,016,000 for the six months ended December 31, 2022, compared to $5,755,000 in the prior year, reflecting an increase of 4.5%[12]. - Net interest income after provision for loan losses was $4,767,000 for the six months ended December 31, 2022, slightly down from $4,838,000 in the same period of 2021[12]. - Total non-interest income decreased to $167,000 for the six months ended December 31, 2022, from $328,000 in the prior year, a decline of 49%[12]. - Non-interest expense increased by $83,000 or 2.1% to $4.0 million, mainly due to higher auditing and accounting costs[112]. - Non-interest income decreased by $161,000 or 49.1% to $167,000, primarily due to lower net gains on sales of loans[111]. Assets and Liabilities - Total assets increased to $335,377,000 as of December 31, 2022, up from $328,080,000 on June 30, 2022, representing a growth of 0.4%[9]. - Total liabilities increased to $283,736,000 as of December 31, 2022, compared to $276,055,000 on June 30, 2022, marking a rise of 2.4%[9]. - The company reported a net cash provided by operating activities of $803,000 for the six months ended December 31, 2022, compared to $1,425,000 for the same period in 2021[23]. - The ending cash and cash equivalents decreased to $7,654,000 at December 31, 2022, down from $45,292,000 at the end of the previous year[23]. - The company reported no other real estate owned (OREO) written down during the six- or three-month periods ended December 31, 2022[85]. Loans and Credit Quality - The total loans receivable as of December 31, 2022, amounted to $300.619 million, an increase from $276.112 million as of June 30, 2022, representing an increase of approximately 8.9%[43]. - The allowance for loan losses increased to $1.655 million as of December 31, 2022, compared to $1.529 million as of June 30, 2022, indicating a rise of approximately 8.25%[43]. - The provision for loan losses was $113,000 for the six months ended December 31, 2022, compared to no provision in the same period of 2021[23]. - Non-performing loans were approximately $6.1 million, or 2.0% of total loans, slightly down from $5.8 million or 2.1% at June 30, 2022[101]. - The recorded investment in loans collectively evaluated for impairment was $295,121,000, with an allowance of $1,655,000 attributed to these loans[61]. Deposits - Deposits decreased to $209,383,000 as of December 31, 2022, down from $239,857,000 on June 30, 2022, a decline of 12.7%[9]. - The company’s total deposits as of December 31, 2022, were $209,383,000, with a fair value of $209,521,000[89]. Investment and Securities - The amortized cost of available-for-sale agency mortgage-backed securities was $13.996 million as of December 31, 2022, with gross unrealized losses of $457, resulting in a fair value of $13.539 million[37]. - The fair value of available-for-sale securities as of December 31, 2022, was $13,539,000, compared to $10,477,000 as of June 30, 2022[89]. - The company has not recognized any impairment through earnings for agency mortgage-backed securities, indicating a stable assessment of these assets[38]. Risk Management - The company utilizes a risk rating system to categorize loans based on borrowers' ability to service their debt, with annual analysis performed[70]. - The company has engaged a third-party software provider to model data for the new credit loss evaluation process, anticipating increased complexity and costs[33]. - The company expects to recognize a one-time cumulative effect adjustment to the allowance for loan losses when the new accounting standard ASU 2016-13 becomes effective, but the magnitude of this adjustment is currently undetermined[33].
Kentucky First Federal Bancorp(KFFB) - 2023 Q2 - Quarterly Report