FOR IMMEDIATE RELEASE
For
more information contact:
K. M. Hoveland, President/CEO
(626) 339-9663
K-FED BANCORP ANNOUNCES THIRD
QUARTER EARNINGS
Covina, CA – April 28, 2009. K-Fed Bancorp (NASDAQ:
KFED) (the “Company”), the parent company of Kaiser Federal Bank (the “Bank”),
reported net income of $1.2 million or $0.09 per diluted share for the quarter ended
March 31, 2009 and $3.5 million or $0.27 per diluted share for the nine months
then ended. This compares to net income of $1.3 million or $0.10 per diluted
share for the quarter ended March 31, 2008 and $2.7 million or $0.20 per
diluted share for the nine months then ended. Net income for the nine months
ended March 31, 2008 included $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 nine months ended March 31, 2008.
While the banking sector continues to experience challenges
as evidenced by the continued deterioration of the housing market, increasing
delinquencies and foreclosures, and a significant increase in unemployment both
nationally and in California, the Company continues to be profitable with
assets, loans and deposits at record levels. Total assets increased to $881.2 million at March
31, 2009 from $849.0 million at June 30, 2008.
Total loans increased to $756.4 million at March 31, 2009 from $745.4
million at June 30, 2008. The Bank continues
to originate predominately multi-family loans to replace its declining
one-to-four family loan portfolio as we rebalance our loan portfolio. While the loan portfolio continues to perform
well overall, as evidenced by non-accrual and delinquency ratios that are
significantly below industry averages, our multi-family and commercial real
estate loan portfolios in particular have experienced very low levels of non-accrual
and charge-offs. Total deposits increased
to $554.3 million at March 31, 2009 as compared to $495.1 million at June 30,
2008 as depositors look for the safety of banks with strong capital positions. We were able to maintain our strong asset
growth during the year while paying down $28.0 million of higher costing
Federal Home Loan Bank (FHLB) advances with available liquidity produced by the
increase in deposits.
As expected, based on the weakened economy and
continued decline in the housing market, our one-to-four family mortgage loan
portfolio has shown increased delinquency.
Delinquent loans 60 days or more totaled $5.7 million or 0.75% of total
loans and non-performing assets totaled $6.9 million or 0.78% of total assets at
March 31, 2009. Delinquent loans 60 days
or more totaled $1.9 million or 0.26% of total loans and non-performing assets
totaled $2.9 million or 0.35% of total assets at June 30, 2008. Consistent with the increase in delinquent
and non-performing assets, net charge-offs increased to $289,000 or 0.15% and $933,000
or 0.17% of average loans for the three and nine months ended March 31, 2009,
respectively, from net charge-offs of $24,000 or 0.01% and $300,000 or 0.06% of
average loans for the three and nine months ended March 31, 2008, respectively.
We take a 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 $660,000 and $2.0 million for the three and nine months ended March
31, 2009 from $200,000 and $551,000 for the comparable periods of the prior year. The provision reflects management’s
continuing assessment of the credit quality of the Company’s loan portfolio,
which is affected by various trends, including current economic conditions.
Net interest margin increased to 2.83% and 2.65% for
the quarter and nine months ended March 31, 2009, respectively from 2.51% and
2.44% for the same periods last year. The
increasing margin reflects a significant reduction in our cost of funds as a
result of the declining interest rate environment and pay down of FHLB advances
as well as modest growth in our loan portfolio.
Total equity increased to $92.0 million at March 31,
2009 from $90.7 million at June 30, 2008, which is 10.44% 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.
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)
March 31, 2009
(Dollars in thousands, except per share data)
|
Selected
Financial Condition Data and Ratios: |
|
March 31 |
|
June 30 |
|
||
|
Total
assets |
|
$ |
881,196 |
|
$ |
849,016 |
|
|
Gross
loans receivable |
|
|
756,359 |
|
|
745,435 |
|
|
Allowance
for loan losses |
|
|
(4,303 |
) |
|
(3,229 |
) |
|
Cash
and cash equivalents |
|
|
69,688 |
|
|
51,240 |
|
|
Total
deposits |
|
|
554,250 |
|
|
495,058 |
|
|
Federal
Home Loan Bank advances |
|
|
207,008 |
|
|
235,019 |
|
|
State
of California time deposits |
|
|
25,000 |
|
|
25,000 |
|
|
Total
stockholders’ equity |
|
|
91,995 |
|
|
90,728 |
|
|
|
|
|
|
|
|
|
|
|
Asset Quality
Ratios: |
|
|
|
|
|
|
|
|
Equity
to total assets |
|
|
10.44 |
% |
|
10.69 |
% |
|
Delinquent
loans 60 days or more to total loans |
|
|
0.75 |
|
|
0.26 |
|
|
Non-performing
loans to total loans |
|
|
0.80 |
|
|
0.23 |
|
|
Non-performing
assets to total assets |
|
|
0.78 |
|
|
0.35 |
|
|
Net
charge-offs to average loans outstanding (annualized) |
|
|
0.17 |
|
|
0.07 |
|
|
Allowance
for loan losses to total loans |
|
|
0.57 |
|
|
0.43 |
|
|
Allowance
for loan losses to non-performing loans |
|
|
70.98 |
|
|
186.66 |
|
|
|
|||||||
|
|
|
Three Months Ended March 31 |
|
Nine Months Ended March 31 |
|
||||||||
|
Selected
Results of Operations Data and Ratios: |
|
2009 |
|
2008 |
|
2009 |
|
2008 |
|
||||
|
Interest
income |
|
$ |
11,284 |
|
$ |
11,586 |
|
$ |
33,902 |
|
$ |
33,825 |
|
|
Interest
expense |
|
|
(5,478 |
) |
|
(6,499 |
) |
|
(17,654 |
) |
|
(19,448 |
) |
|
Net
interest income |
|
|
5,806 |
|
|
5,087 |
|
|
16,248 |
|
|
14,377 |
|
|
Provision
for loan losses |
|
|
(660 |
) |
|
(200 |
) |
|
(2,007 |
) |
|
(551 |
) |
|
Net interest
income after provision |
|
|
5,146 |
|
|
4,887 |
|
|
14,241 |
|
|
13,826 |
|
|
Noninterest
income |
|
|
1,038 |
|
|
1,132 |
|
|
3,426 |
|
|
3,212 |
|
|
Noninterest expense, excluding stock
offering costs |
|
|
(4,218 |
) |
|
(3,918 |
) |
|
(12,120 |
) |
|
(11,581 |
) |
|
Stock
offering costs |
|
|
— |
|
|
(10 |
) |
|
— |
|
|
(1,279 |
) |
|
Income
before income tax expense |
|
|
1,966 |
|
|
2,091 |
|
|
5,547 |
|
|
4,178 |
|
|
Income
tax expense |
|
|
(772 |
) |
|
(766 |
) |
|
(2,013 |
) |
|
(1,453 |
) |
|
Net
income |
|
$ |
1,194 |
|
$ |
1,325 |
|
$ |
3,534 |
|
$ |
2,725 |
|
|
Performance
Ratios: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income per share – basic and
diluted |
|
$ |
0.09 |
|
$ |
0.10 |
|
$ |
0.27 |
|
$ |
0.20 |
|
|
Return on average assets
(annualized) |
|
|
0.56 |
% |
|
0.63 |
% |
|
0.55 |
% |
|
0.44 |
% |
|
Return on average equity
(annualized) |
|
|
5.20 |
|
|
5.66 |
|
|
5.16 |
|
|
3.89 |
|
|
Net interest margin (annualized) |
|
|
2.83 |
|
|
2.51 |
|
|
2.65 |
|
|
2.44 |
|
|
Efficiency
ratio (excluding stock offering costs) |
|
|
61.63 |
|
|
63.00 |
|
|
61.60 |
|
|
65.84 |
|
|
|
|||||||||||||
K-FED BANCORP
Selected
Financial Data and Ratios (Unaudited)
March 31, 2009
(Dollars in thousands)
|
|
|
At March 31, |
|
At June 30, |
|
|
|||||||||||||||||||||
|
Non-accrual
loans: |
|
2009 |
|
2008 |
|
|
|||||||||||||||||||||
|
Real estate loans: |
|
|
|
|
|
||||||||||||||||||||||
|
One-to-four family |
|
$ |
4,284 |
|
$ |
1,583 |
|
|
|||||||||||||||||||
|
Commercial |
|
|
— |
|
|
— |
|
|
|||||||||||||||||||
|
Multi-family |
|
|
— |
|
|
— |
|
|
|||||||||||||||||||
|
Other loans: |
|
|
|
|
|
|
|
|
|||||||||||||||||||
|
Automobile |
|
|
57 |
|
|
132 |
|
|
|||||||||||||||||||
|
Home equity |
|
|
— |
|
|
— |
|
|
|||||||||||||||||||
|
Other |
|
|
6 |
|
|
15 |
|
|
|||||||||||||||||||
|
Troubled
debt restructuring: |
|
|
|
|
|
|
|
|
|||||||||||||||||||
|
One-to-four family |
|
|
1,480 |
|
|
— |
|
|
|||||||||||||||||||
|
Commercial |
|
|
— |
|
|
— |
|
|
|||||||||||||||||||
|
Multi-family |
|
|
236 |
|
|
— |
|
|
|||||||||||||||||||
|
Total
non-accrual loans |
|
|
6,063 |
|
|
1,730 |
|
|
|||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
|
Other real estate owned and repossessed
assets: |
|
|
|
|
|
|
|
|
|||||||||||||||||||
|
Real estate
loans: |
|
|
|
|
|
|
|
|
|||||||||||||||||||
|
One-to-four family |
|
|
781 |
|
|
1,045 |
|
|
|||||||||||||||||||
|
Commercial |
|
|
— |
|
|
— |
|
|
|||||||||||||||||||
|
Multi-family |
|
|
— |
|
|
— |
|
|
|||||||||||||||||||
|
Other loans: |
|
|
|
|
|
|
|
|
|||||||||||||||||||
|
Automobile |
|
|
55 |
|
|
161 |
|
|
|||||||||||||||||||
|
Home equity |
|
|
— |
|
|
— |
|
|
|||||||||||||||||||
|
Other |
|
|
— |
|
|
— |
|
|
|||||||||||||||||||
|
Total other
real estate owned and repossessed assets |
|
|
836 |
|
|
1,206 |
|
|
|||||||||||||||||||
|
Total non-performing assets |
|
$ |
6,899 |
|
$ |
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
March 31, 2009 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
Real estate loans: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
One-to-four family |
|
|
4 |
|
$ |
1,705 |
|
|
9 |
|
$ |
3,884 |
|
|
13 |
|
$ |
5,589 |
|
||||||||
|
Commercial |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
||||||||
|
Multi-family |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
||||||||
|
Other loans: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
Automobile |
|
|
4 |
|
|
38 |
|
|
5 |
|
|
57 |
|
|
9 |
|
|
95 |
|
||||||||
|
Home
equity |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
||||||||
|
Other |
|
|
3 |
|
|
5 |
|
|
5 |
|
|
6 |
|
|
8 |
|
|
11 |
|
||||||||
|
Total loans |
|
|
11 |
|
$ |
1,748 |
|
|
19 |
|
$ |
3,947 |
|
|
30 |
|
$ |
5,695 |
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
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 |
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||