Kentucky First Federal Bancorp(US:KFFB)2023-11-14 21:07Financial Performance - The company reported a net loss of $175 thousand for the three months ended September 30, 2023, compared to a net income of $373 thousand in the same period of 2022[11]. - Net interest income decreased to $1,670 thousand for the three months ended September 30, 2023, down from $2,432 thousand in the same period of 2022, a decline of about 31.3%[11]. - Non-interest income decreased to $74 thousand for the three months ended September 30, 2023, down from $98 thousand in the same period of 2022, a decrease of about 24.5%[11]. - The company's other comprehensive loss for the three months ended September 30, 2023, was $(565), compared to $(430) for the same period in 2022, indicating a deterioration in comprehensive income[105]. - The effective tax rates for the periods ended September 30, 2023, and 2022 were 28.3% and 23.7%, respectively[134]. Assets and Liabilities - Total assets increased to $356,784 thousand as of September 30, 2023, up from $349,022 thousand on June 30, 2023, representing a growth of approximately 2.5%[8]. - Total liabilities increased by $8.8 million, or 3.0%, to $307.1 million at September 30, 2023, driven by a $26.1 million increase in deposits, or 11.5%[120]. - Total cash and cash equivalents at the end of the period increased to $12,586,000 from $8,635,000 year-over-year[19]. - The carrying value of cash and cash equivalents increased to $12,586 as of September 30, 2023, compared to $8,167 as of June 30, 2023, reflecting a growth of approximately 54.5%[104]. Deposits and Equity - Total deposits increased to $252,359 thousand as of September 30, 2023, compared to $226,309 thousand on June 30, 2023, reflecting an increase of approximately 11.5%[8]. - Shareholders' equity decreased to $49,649 thousand as of September 30, 2023, down from $50,711 thousand on June 30, 2023, a decline of about 2.1%[8]. - The company expects future dividends to be limited to no more than $0.05 per share due to recent declines in earnings[123]. Credit Losses and Provisions - The provision for credit losses was $6 thousand for the three months ended September 30, 2023, significantly lower than $113 thousand in the same period of 2022[11]. - The allowance for credit losses increased to $2,126,000 as of September 30, 2023, compared to $1,634,000 as of June 30, 2023, reflecting management's assessment of credit risk[55]. - A provision for credit loss of $6,000 was deemed prudent in light of the increase in the loan portfolio during the recently-ended quarter[130]. Loans and Non-Performing Loans - The total loans receivable as of September 30, 2023, amounted to $318,187,000, an increase from $313,807,000 as of June 30, 2023, with residential real estate loans comprising $245,109,000[55]. - Non-performing loans rose to approximately $5.3 million, or 1.6% of total loans, compared to $4.7 million, or 1.5%, at June 30, 2023[116]. - The total past due loans amounted to $6,392,000 as of September 30, 2023, compared to $6,071,000 as of June 30, 2023, indicating an increase of 5.3%[87]. Expenses - Total non-interest expense increased to $1,982 thousand for the three months ended September 30, 2023, compared to $1,928 thousand in the same period of 2022, an increase of approximately 2.8%[11]. - Non-interest expense increased by $54,000 or 2.8% to $2.0 million for the same period, mainly driven by higher employee compensation and benefits, which rose by $48,000 or 4.0% to $1.2 million[132]. Securities and Fair Value - The fair value of available-for-sale securities decreased to $11,230, down from $12,080 as of June 30, 2023, representing a decline of approximately 7.0%[101]. - The amortized cost of available-for-sale securities was $11,972,000 with gross unrealized losses of $754,000 as of September 30, 2023[50]. - The unrealized holding losses on available-for-sale securities for the three months ended September 30, 2023, were $(753), compared to $(573) for the same period in 2022, indicating an increase in losses[105].