FOR IMMEDIATE
RELEASE
For
more information contact:
K.M. Hoveland, President/CEO
(626) 339-9663
K-FED BANCORP
ANNOUNCES 1st QUARTER EARNINGS
Covina, CA –
October 27, 2009. K-Fed Bancorp (NASDAQ: KFED) (the “Company”), the parent
company of Kaiser Federal Bank (the “Bank”), reported net income of $1.4
million or $0.11 per diluted share for the quarter ended September 30, 2009 which
was unchanged from the quarter ended September 30, 2008. While overall net income remained unchanged the
Company experienced an increase of $915,000 in net interest income for the
quarter ended September 30, 2009 as compared to the same quarter last year. The increase in net interest income for the
quarter ended September 30, 2009 was offset by increases in the provision for
loan losses and noninterest expense of $502,000 and $338,000, respectively.
Net interest
margin increased to 2.87% for the quarter ended September 30, 2009 from 2.58%
for the same quarter last year. The increasing margin reflected a significant
reduction in our cost of funds as a result of the declining interest rate
environment and repayment of $78.0 million in higher costing Federal Home Loan
Bank (“FHLB”) advances during the past twelve months.
Total assets
decreased to $868.2 million at September 30, 2009 from $895.1 million at June
30, 2009 while gross loans receivable increased to $764.7 million at September
30, 2009 from $751.5 million at June 30, 2009.
The decrease in total assets was a result of the repayment of $60.0
million in FHLB advances that matured during the quarter, $50.0 million of
which matured on the last day of the quarter.
The repayment of FHLB advances was funded with available liquidity due
to strong deposit growth. Total deposits increased to $598.1 million at
September 30, 2009 as compared to $566.2 million at June 30, 2009.
As a result
of the weak economy and depressed housing market, our one-to-four family
mortgage loan portfolio has shown increased delinquency. Delinquent loans 60 days
or more totaled $13.8 million or 1.81% of total loans and non-performing assets
totaled $13.3 million or 1.54% of total assets at September 30, 2009. Delinquent loans 60 days or more totaled $8.5
million or 1.13% of total loans and non-performing assets totaled $9.4 million
or 1.05% of total assets at June 30, 2009.
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 increased to $865,000 for the
quarter ended September 30, 2009 from $363,000 for the same quarter last 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.
Noninterest
expense increased to $4.3 million for the quarter ended September 30, 2009 as
compared to $3.9 million for the quarter ended September 30, 2008. This increase was primarily a result of an
increase of $164,000 in federal deposit insurance premiums and $152,000 in
salaries and benefits expense.
Total equity
increased to $93.8 million at September 30, 2009 from $92.6 million at June 30,
2009, which is 10.80% 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)
September 30, 2009
(Dollars in thousands, except per share data)
|
Selected
Financial Condition Data and Ratios: |
|
September 30 |
|
June 30 |
|
||
|
Total
assets |
|
$ |
868,160 |
|
$ |
895,097 |
|
|
Gross
loans receivable |
|
|
764,703 |
|
|
751,461 |
|
|
Allowance
for loan losses |
|
|
(5,297 |
) |
|
(4,586 |
) |
|
Cash
and cash equivalents |
|
|
33,507 |
|
|
73,705 |
|
|
Total
deposits |
|
|
598,116 |
|
|
566,193 |
|
|
Federal
Home Loan Bank advances |
|
|
147,000 |
|
|
207,004 |
|
|
State
of California time deposits |
|
|
25,000 |
|
|
25,000 |
|
|
Total
stockholders’ equity |
|
$ |
93,789 |
|
$ |
92,558 |
|
|
|
|
|
|
|
|
|
|
|
Asset Quality Ratios: |
|
|
|
|
|
|
|
|
Equity
to total assets |
|
|
10.80 |
% |
|
10.34 |
% |
|
Delinquent
loans 60 days or more to total loans |
|
|
1.81 |
% |
|
1.13 |
% |
|
Non-performing
loans to total loans |
|
|
1.74 |
% |
|
1.18 |
% |
|
Non-performing
assets to total assets |
|
|
1.54 |
% |
|
1.05 |
% |
|
Net
charge-offs to average loans outstanding (annualized) |
|
|
0.08 |
% |
|
0.16 |
% |
|
Allowance
for loan losses to total loans |
|
|
0.69 |
% |
|
0.61 |
% |
|
Allowance
for loan losses to non-performing loans |
|
|
39.72 |
% |
|
51.69 |
% |
|
|
|||||||
|
Selected
Operating Data and Ratios: |
|
|
|
Three Months Ended September 30 |
|
||||||||
|
|
|
|
|
|
|
2009 |
|
2008 |
|
||||
|
Interest
income |
|
|
|
|
|
|
|
$ |
11,320 |
|
$ |
11,505 |
|
|
Interest
expense |
|
|
|
|
|
|
|
|
(5,130 |
) |
|
(6,230 |
) |
|
Net
interest income |
|
|
|
|
|
|
|
|
6,190 |
|
|
5,275 |
|
|
Provision
for loan losses |
|
|
|
|
|
|
|
|
(865 |
) |
|
(363 |
) |
|
Net interest
income after provision for loan losses |
|
|
|
|
|
|
|
|
5,325 |
|
|
4,912 |
|
|
Noninterest
income |
|
|
|
|
|
|
|
|
1,200 |
|
|
1,210 |
|
|
Noninterest expense |
|
|
|
|
|
|
|
|
(4,273 |
) |
|
(3,935 |
) |
|
Income
before income tax expense |
|
|
|
|
|
|
|
|
2,252 |
|
|
2,187 |
|
|
Income tax expense |
|
|
|
|
|
|
|
|
(842 |
) |
|
(778 |
) |
|
Net
income |
|
|
|
|
|
|
|
$ |
1,410 |
|
$ |
1,409 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income per share – basic and
diluted |
|
|
|
|
|
|
|
$ |
0.11 |
|
$ |
0.11 |
|
|
Return on average assets (annualized) |
|
|
|
|
|
|
|
|
0.62 |
% |
|
0.66 |
% |
|
Return on average equity
(annualized) |
|
|
|
|
|
|
|
|
6.05 |
% |
|
6.21 |
% |
|
Net interest margin (annualized) |
|
|
|
|
|
|
|
|
2.87 |
% |
|
2.58 |
% |
|
Efficiency
ratio |
|
|
|
|
|
|
|
|
57.82 |
% |
|
60.68 |
% |
|
|
|||||||||||||
K-FED BANCORP
Selected
Financial Data and Ratios (Unaudited)
September 30,
2009
(Dollars in thousands)
|
|
|
At September 30, |
|
At June 30, |
|
||
|
Non-accrual
loans: |
|
2009 |
|
2009 |
|
||
|
Real estate loans: |
|
|
|
|
|||
|
One-to-four
family |
|
$ |
9,929 |
|
$ |
6,766 |
|
|
Multi-family |
|
|
— |
|
|
— |
|
|
Commercial |
|
|
— |
|
|
— |
|
|
Other loans: |
|
|
|
|
|
|
|
|
Automobile |
|
|
30 |
|
|
— |
|
|
Home Equity |
|
|
— |
|
|
— |
|
|
Other |
|
|
6 |
|
|
11 |
|
|
Troubled
debt restructuring: |
|
|
|
|
|
|
|
|
One-to-four family |
|
|
3,138 |
|
|
1,859 |
|
|
Multi-family |
|
|
234 |
|
|
235 |
|
|
Commercial |
|
|
— |
|
|
— |
|
|
Total non-accrual loans |
|
|
13,337 |
|
|
8,871 |
|
|
|
|
|
|
|
|
|
|
|
Other real estate owned and
repossessed assets: |
|
|
|
|
|
|
|
|
Real estate: |
|
|
|
|
|
|
|
|
One-to-four
family |
|
|
— |
|
|
496 |
|
|
Multi-family |
|
|
— |
|
|
— |
|
|
Commercial |
|
|
— |
|
|
— |
|
|
Other: |
|
|
|
|
|
|
|
|
Automobile |
|
|
— |
|
|
3 |
|
|
Home equity |
|
|
— |
|
|
— |
|
|
Other |
|
|
— |
|
|
— |
|
|
Total other
real estate owned and repossessed assets |
|
|
— |
|
|
499 |
|
|
Total non-performing assets |
|
$ |
13,337 |
|
$ |
9,370 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
|
|
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
September 30, 2009 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Real estate loans: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
One-to-four
family |
|
|
8 |
|
$ |
3,853 |
|
|
22 |
|
$ |
9,929 |
|
|
30 |
|
$ |
13,782 |
|
|
Multi-family |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
Commercial |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
Other loans: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Automobile |
|
|
— |
|
|
— |
|
|
3 |
|
|
30 |
|
|
3 |
|
|
30 |
|
|
Home
equity |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
Other |
|
|
6 |
|
|
8 |
|
|
5 |
|
|
6 |
|
|
11 |
|
|
14 |
|
|
Total loans |
|
|
14 |
|
$ |
3,861 |
|
|
30 |
|
$ |
9,965 |
|
|
44 |
|
$ |
13,826 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
At
June 30, 2009 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Real estate loans: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
One-to-four family |
|
|
6 |
|
$ |
2,212 |
|
|
14 |
|
$ |
6,220 |
|
|
20 |
|
$ |
8,432 |
|
|
Multi-family |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
Commercial |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
Other loans: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Automobile |
|
|
3 |
|
|
16 |
|
|
— |
|
|
— |
|
|
3 |
|
|
16 |
|
|
Home
equity |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
Other |
|
|
11 |
|
|
16 |
|
|
6 |
|
|
11 |
|
|
17 |
|
|
27 |
|
|
Total loans |
|
|
20 |
|
$ |
2,244 |
|
|
20 |
|
$ |
6,231 |
|
|
40 |
|
$ |
8,475 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|