FOR IMMEDIATE RELEASE
For
more information contact:
(626) 339-9663
K-FED BANCORP ANNOUNCES SECOND
QUARTER EARNINGS
Covina, CA – January 27, 2009. K-FED Bancorp
(NASDAQ: KFED) (the Company), the parent company of Kaiser Federal Bank (the Bank),
reported net income of $931,000 or $0.07 per diluted share for the quarter ended
December 31, 2008 and $2.3 million or $0.18 per diluted share for the six
months then ended. This compares to net income of $406,000 or $0.03 per diluted
share for the quarter ended December 31, 2007 and $1.4 million or $0.10 per
diluted share for the six months then ended. Net income for the three and six
months ended December 31, 2007 includes $1.3 million in stock offering costs
resulting from the cancellation of the stock offering in November 2007 due to
unfavorable market conditions. The
recognition of these expenses resulted in a decline of $0.05 in basic and
diluted earnings per share for the three and six months ended December 31, 2007.
Asset quality continues to remain strong despite the
current economic crisis and continued deterioration in the housing market. Loans delinquent 60 days or more totaled $4.9
million or 0.65% of total loans and non-performing assets totaled $5.8 million
or 0.69% of total assets at December 31, 2008.
Net charge-offs totaled $330,000 or 0.18% of average loans and $645,000
or 0.17% of average loans for the three and six months ended December 31, 2008. While these amounts and related ratios have
been increasing, they continue to be well below industry averages. We have also
taken a very proactive approach in monitoring our loan portfolio in order to
identify potential problem loans and we evaluate our allowance for loan losses
on an ongoing basis to ensure its adequacy.
Accordingly, our provision for loan losses has increased to $984,000 and
$1.3 million for the three and six months ended December 31, 2008 from $184,000
and $352,000 for the comparable periods of the prior year.
We attribute our strong asset quality to our
conservative and disciplined lending practices as well as our uncompromising
emphasis on credit quality. In this regard, the Bank has remained true to the
traditional residential loan products that require qualified borrowers with a
minimum of 20% equity in the underlying properties. Further, we have not
originated or purchased construction and development loans, teaser option-ARM
loans, negative amortizing loans or high loan to value loans.
Total assets decreased to $834.8 million at December
31, 2008 from $849.0 million at June 30, 2008.
This decrease was primarily a result of a pay down of $28.0 million of
higher costing Federal Home Loan Bank advances with available liquidity and
additional deposits of $12.9 million. Net
interest margin increased to 2.56% for the quarter ended December 31, 2008 as
compared to 2.45% for the same period last year. The 11 basis point increase was
a result of the declining interest rate environment that began in late 2007.
Total equity increased to $91.7 million at December
31, 2008 from $90.7 million at June 30, 2008, which is 10.99% of total assets.
Currently, the Bank meets all regulatory capital requirements established by
the Office of Thrift Supervision in order to be classified as a
“well-capitalized” bank.
After careful consideration the Company has elected
not to apply for funds available through the Capital Purchase Program, which is
part of the United States Treasury’s Troubled Asset Relief Program. Given that we are a well-capitalized, profitable
bank with strong credit quality we believe that participation would not be in
the best interest of the Company and our shareholders.
This release contains certain forward-looking statements. Forward-looking
statements can be identified by the fact that they do not relate strictly to
historical or current facts. They often include words like “believe,” “expect,”
“anticipate,” “estimate” and “intend” or future or conditional verbs such as
“will,” “would,” “should,” “could” or “may.” Certain factors that
could cause actual results to differ materially from expected results include,
changes in the interest rate environment, changes in general economic
conditions, legislative and regulatory changes that adversely affect the business
of K-Fed Bancorp and Kaiser Federal Bank, and changes in the securities
markets. We caution readers not to place
undue reliance on forward-looking statements.
The Company disclaims any obligation to revise or update any
forward-looking statements contained in this release to reflect future events
or developments.
K-FED BANCORP
Selected
Financial Data and Ratios (Unaudited)
December 31,
2008
(Dollars in thousands, except per share data)
|
Selected
Financial Condition Data and Ratios: |
|
December 31 |
|
June 30 |
|
||
|
Total
assets |
|
$ |
834,846 |
|
$ |
849,016 |
|
|
Gross
loans receivable |
|
|
745,988 |
|
|
745,435 |
|
|
Allowance
for loan losses |
|
|
(3,932 |
) |
|
(3,229 |
) |
|
Cash
and cash equivalents |
|
|
35,429 |
|
|
51,240 |
|
|
Total
deposits |
|
|
507,977 |
|
|
495,058 |
|
|
Federal
Home Loan Bank advances |
|
|
207,011 |
|
|
235,019 |
|
|
State
of California time deposits |
|
|
25,000 |
|
|
25,000 |
|
|
Total
stockholders’ equity |
|
|
91,713 |
|
|
90,728 |
|
|
|
|
|
|
|
|
|
|
|
Asset Quality
Ratios: |
|
|
|
|
|
|
|
|
Equity
to total assets |
|
|
10.99 |
% |
|
10.69 |
% |
|
Delinquent
loans 60 days or more to total loans |
|
|
0.65 |
|
|
0.26 |
|
|
Non-performing
loans to total loans |
|
|
0.69 |
|
|
0.23 |
|
|
Non-performing
assets to total assets |
|
|
0.69 |
|
|
0.35 |
|
|
Net
charge-offs to average loans outstanding (annualized) |
|
|
0.17 |
|
|
0.07 |
|
|
Allowance
for loan losses to total loans |
|
|
0.53 |
|
|
0.43 |
|
|
Allowance
for loan losses to non-performing loans |
|
|
76.36 |
|
|
186.66 |
|
|
|
|||||||
|
|
|
Three Months Ended December 31 |
|
Six Months Ended December 31 |
|
||||||||
|
Selected
Results of Operations Data and Ratios: |
|
2008 |
|
2007 |
|
2008 |
|
2007 |
|
||||
|
Interest
income |
|
$ |
11,112 |
|
$ |
11,251 |
|
$ |
22,618 |
|
$ |
22,238 |
|
|
Interest
expense |
|
|
(5,945 |
) |
|
(6,488 |
) |
|
(12,175 |
) |
|
(12,948 |
) |
|
Net
interest income |
|
|
5,167 |
|
|
4,763 |
|
|
10,443 |
|
|
9,290 |
|
|
Provision
for loan losses |
|
|
(984 |
) |
|
(184 |
) |
|
(1,347 |
) |
|
(352 |
) |
|
Net interest
income after provision |
|
|
4,183 |
|
|
4,579 |
|
|
9,096 |
|
|
8,938 |
|
|
Noninterest
income |
|
|
1,177 |
|
|
1,040 |
|
|
2,387 |
|
|
2,069 |
|
|
Noninterest expense, excluding stock
offering costs |
|
|
(3,965 |
) |
|
(3,811 |
) |
|
(7,901 |
) |
|
(7,651 |
) |
|
Stock
offering costs |
|
|
— |
|
|
(1,270 |
) |
|
— |
|
|
(1,270 |
) |
|
Income
before income tax expense |
|
|
1,395 |
|
|
538 |
|
|
3,582 |
|
|
2,086 |
|
|
Income
tax expense |
|
|
(464 |
) |
|
(132 |
) |
|
(1,242 |
) |
|
(687 |
) |
|
Net
income |
|
$ |
931 |
|
$ |
406 |
|
$ |
2,340 |
|
$ |
1,399 |
|
|
Performance
Ratios: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income per share – basic and
diluted |
|
$ |
0.07 |
|
$ |
0.03 |
|
$ |
0.18 |
|
$ |
0.10 |
|
|
Return on average assets
(annualized) |
|
|
0.44 |
% |
|
0.20 |
% |
|
0.55 |
% |
|
0.35 |
% |
|
Return on average equity
(annualized) |
|
|
4.08 |
|
|
1.74 |
|
|
5.14 |
|
|
3.00 |
|
|
Net interest margin (annualized) |
|
|
2.56 |
|
|
2.45 |
|
|
2.57 |
|
|
2.40 |
|
|
Efficiency
ratio (excluding stock offering costs) |
|
|
62.51 |
|
|
65.68 |
|
|
61.59 |
|
|
67.36 |
|
|
|
|||||||||||||
K-FED BANCORP
Selected
Financial Data and Ratios (Unaudited)
December 31,
2008
(Dollars in thousands)
|
|
|
At December 31, |
|
At June 30, |
|
|
|||||||||||||||||||||
|
Non-accrual
loans: |
|
2008 |
|
2008 |
|
|
|||||||||||||||||||||
|
Real estate loans: |
|
|
|
|
|
||||||||||||||||||||||
|
One-to-four family |
|
$ |
4,150 |
|
$ |
1,583 |
|
|
|||||||||||||||||||
|
Commercial |
|
|
— |
|
|
— |
|
|
|||||||||||||||||||
|
Multi-family |
|
|
233 |
|
|
— |
|
|
|||||||||||||||||||
|
Other loans: |
|
|
|
|
|
|
|
|
|||||||||||||||||||
|
Automobile |
|
|
73 |
|
|
132 |
|
|
|||||||||||||||||||
|
Home equity |
|
|
— |
|
|
— |
|
|
|||||||||||||||||||
|
Other |
|
|
11 |
|
|
15 |
|
|
|||||||||||||||||||
|
Troubled
debt restructuring: |
|
|
|
|
|
|
|
|
|||||||||||||||||||
|
One-to-four family |
|
|
446 |
|
|
— |
|
|
|||||||||||||||||||
|
Commercial |
|
|
— |
|
|
— |
|
|
|||||||||||||||||||
|
Multi-family |
|
|
236 |
|
|
— |
|
|
|||||||||||||||||||
|
Total non-accrual
loans |
|
|
5,149 |
|
|
1,730 |
|
|
|||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
|
Other real estate owned and repossessed
assets: |
|
|
|
|
|
|
|
|
|||||||||||||||||||
|
Real estate
loans: |
|
|
|
|
|
|
|
|
|||||||||||||||||||
|
One-to-four family |
|
|
609 |
|
|
1,045 |
|
|
|||||||||||||||||||
|
Commercial |
|
|
— |
|
|
— |
|
|
|||||||||||||||||||
|
Multi-family |
|
|
— |
|
|
— |
|
|
|||||||||||||||||||
|
Other loans: |
|
|
|
|
|
|
|
|
|||||||||||||||||||
|
Automobile |
|
|
44 |
|
|
161 |
|
|
|||||||||||||||||||
|
Home equity |
|
|
— |
|
|
— |
|
|
|||||||||||||||||||
|
Other |
|
|
— |
|
|
— |
|
|
|||||||||||||||||||
|
Total other
real estate owned and repossessed assets |
|
|
653 |
|
|
1,206 |
|
|
|||||||||||||||||||
|
Total non-performing assets |
|
$ |
5,802 |
|
$ |
2,936 |
|
|
|||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
|
|
|
Loans Delinquent : |
|
|
|
|
|
||||||||||||||||||||
|
|
|
60-89 Days |
|
90 Days or More |
|
Total Delinquent Loans |
|
||||||||||||||||||||
|
|
|
Number of Loans |
|
Amount |
|
Number of Loans |
|
Amount |
|
Number of Loans |
|
Amount |
|
||||||||||||||
|
Delinquent
Loans: |
|
|
|
||||||||||||||||||||||||
|
At
December 31, 2008 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
Real estate loans: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
One-to-four family |
|
|
1 |
|
$ |
343 |
|
|
9 |
|
$ |
4,150 |
|
|
10 |
|
$ |
4,493 |
|
||||||||
|
Commercial |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
||||||||
|
Multi-family |
|
|
— |
|
|
— |
|
|
1 |
|
|
233 |
|
|
1 |
|
|
233 |
|
||||||||
|
Other loans: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
Automobile |
|
|
3 |
|
|
42 |
|
|
5 |
|
|
73 |
|
|
8 |
|
|
115 |
|
||||||||
|
Home
equity |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
||||||||
|
Other |
|
|
11 |
|
|
6 |
|
|
16 |
|
|
11 |
|
|
27 |
|
|
17 |
|
||||||||
|
Total loans |
|
|
15 |
|
$ |
391 |
|
|
31 |
|
$ |
4,467 |
|
|
46 |
|
$ |
4,858 |
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
At
June 30, 2008 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
Real estate loans: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
One-to-four family |
|
|
— |
|
$ |
— |
|
|
4 |
|
$ |
1,583 |
|
|
4 |
|
$ |
1,583 |
|
||||||||
|
Commercial |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
||||||||
|
Multi-family |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
||||||||
|
Other loans: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
Automobile |
|
|
10 |
|
|
159 |
|
|
8 |
|
|
132 |
|
|
18 |
|
|
291 |
|
||||||||
|
Home
equity |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
||||||||
|
Other |
|
|
22 |
|
|
34 |
|
|
9 |
|
|
15 |
|
|
31 |
|
|
49 |
|
||||||||
|
Total loans |
|
|
32 |
|
$ |
193 |
|
|
21 |
|
$ |
1,730 |
|
|
53 |
|
$ |
1,923 |
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||