Kentucky First Federal Bancorp Reports $7,000 Net Income for Q1 2025, EPS Stable at $0.00, Revenue Boosted by Higher Interest Income

Reuters
13 May
Kentucky First Federal Bancorp Reports $7,000 Net Income for Q1 2025, EPS Stable at $0.00, Revenue Boosted by Higher Interest Income

Kentucky First Federal Bancorp (Nasdaq: KFFB), the holding company for First Federal Savings and Loan Association of Hazard and First Federal Savings Bank of Kentucky, reported a notable improvement in its financial performance for the quarter ended March 31, 2025. The company announced a net income of $7,000 for the three-month period, a significant turnaround from a net loss of $107,000 in the same period of the previous year. This represents an increase of $114,000 in net income. For the nine months ended March 31, 2025, Kentucky First Federal Bancorp posted a net income of $5,000, contrasting with a net loss of $643,000 for the same period in 2024, marking a substantial increase of $648,000. The improvement in quarterly net earnings was primarily driven by higher net interest income, which rose by $366,000 or 20.7% to $2.1 million due to interest income increasing more than interest expense. Interest income for the quarter increased by $673,000 or 16.1% to $4.8 million, while interest expense rose by $307,000 or 12.7% to $2.7 million. The average rate earned on interest-earning assets increased by 60 basis points to 5.28%, contributing to the rise in interest income. Additionally, non-interest income saw a slight increase of $3,000 or 3.8%, totaling $81,000, driven by net gains on sales of loans. Total assets as of March 31, 2025, were $380.7 million, reflecting an increase of $5.8 million or 1.5% from June 30, 2024. The company also noted a rise in non-interest expense by $160,000, primarily due to higher outside service fees. Overall, Kentucky First Federal Bancorp's recent earnings report highlights a positive shift in financial performance, largely attributed to increased net interest income and a rise in demand for fixed-rate secondary market loans.

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