COVINA, Calif., Jan. 28, 2008 (PRIME NEWSWIRE) -- K-FED Bancorp (Nasdaq:KFED), the parent company of Kaiser Federal Bank, reported net income of $406,000 for the quarter ended December 31, 2007 and $1.4 million for the six months then ended. This compares to net income of $1.1 million for the quarter ended December 31, 2006 and $2.5 million for the six months then ended. These net income declines are due primarily to the recognition of $1.3 million in stock offering expenses resulting from the cancellation of the stock offering in November 2007. The recognition of these expenses resulted in a decline of 5-cents-per-share in the Company's basic and diluted earnings per share numbers for the three and six months ended December 31, 2007.
The asset quality of the Bank continues to remain strong and consistent over the past two quarters. Non-performing assets totaled $1.6 million or 0.19% of total assets as of December 31, 2007 as compared to $1.5 million or 0.18% of total assets as of June 30, 2007. Net charge-offs totaled $275,000 or 0.04% of average loans for the six months ended December 31, 2007. This has been accomplished by the strict adherence to the Bank's long standing disciplined credit culture that emphasizes the consistent application of our underwriting standards to all loans, including individual purchased loans. Additionally, the Bank's mortgage portfolio has remained strongly anchored in traditional mortgage products. In this regard, the Bank has not originated or purchased teaser option-ARM loans, negative amortizing loans or high LTV loans.
Total assets increased to $830 million at December 31, 2007 from $800 million at June 30, 2007. This increase was primarily due to strong growth in the Bank's commercial and multifamily real estate portfolios as total loans increased from $702 million at June 30, 2007 to $743 million at December 31, 2007. The Bank continues to focus in these areas in an effort to diversify its loan portfolio as well as to increase its net interest margin.
The Bank's net interest margin increased to 2.45% for the quarter ended December 31, 2007 from 2.38% for the quarter ended December 31, 2006. The increase was primarily the result of increasing yields on earning assets.
"Overall, the Bank's core performance for the latest quarter was strong and the continued emphasis on credit quality has been paying off in the form of low delinquencies and charge-offs despite industry trends," said Kay Hoveland, President/CEO.
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 delays in completing the offering, 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.
K-FED BANCORP
Selected Financial Tables and Ratios (Unaudited)
December 31, 2007
(Dollars in thousands, except share data)
Selected Financial Condition December 31 June 30
Data and Ratios: 2007 2007
---------------------------- ----------- ----------
Total assets $ 830,385 $ 799,625
Gross loans receivable 743,593 701,962
Allowance for loan losses (2,882) (2,805)
Cash and cash equivalents 31,448 26,732
Total deposits 463,781 494,128
Federal Home Loan Bank advances 245,019 210,016
State of California time deposits 25,000 --
Total stockholders' equity $ 93,525 $ 92,317
Asset Quality Ratios:
---------------------
Equity to total assets 11.26% 11.55%
Delinquent loans to total loans 0.27% 0.18%
Non-accrual loans to total loans 0.21% 0.16%
Non-performing assets to total assets 0.19% 0.18%
Net charge-offs to average loans
outstanding 0.04% 0.07%
Allowance for loan losses to total
loans 0.39% 0.40%
Allowance for loan losses to
non-performing loans 188.45% 245.84%
Selected Results of
Operations Data Three Months Ended Six Months Ended
and Ratios: December 31 December 31
-------------------- ------------------- ------------------
2007 2006 2007 2006
-------- -------- -------- --------
Interest income $ 11,251 $ 10,245 $ 22,238 $ 19,970
Interest expense (6,488) (5,859) (12,948) (11,012)
-------- -------- -------- --------
Net interest income 4,763 4,386 9,290 8,958
Provision for loan
losses (184) (180) (352) (303)
-------- -------- -------- --------
Net interest income
after provision
for loan losses 4,579 4,206 8,938 8,655
Noninterest income 1,040 1,009 2,069 2,086
Noninterest expense,
excluding stock
offering costs (3,811) (3,533) (7,651) (6,961)
Stock offering costs (1,270) -- (1,270) --
-------- -------- -------- --------
Income before income
tax expense 538 1,682 2,086 3,780
Income tax expense (132) (537) (687) (1,320)
-------- -------- -------- --------
Net income $ 406 $ 1,145 $ 1,399 $ 2,460
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Performance Ratios:
-------------------
Net income per share -
basic and diluted $ 0.03 $ 0.08 $ 0.10 $ 0.18
Return on average
assets 0.20% 0.59% 0.35% 0.65%
Return on equity 1.74% 4.94% 3.00% 5.31%
Net interest margin 2.45% 2.38% 2.40% 2.48%
Efficiency ratio
(excluding stock
offering expenses) 65.68% 65.49% 67.36% 63.03%
At December 31, At June 30,
Non-accrual loans Data: 2007 2007
----------------------- --------------- -----------
Real estate loans:
------------------
One- to four-family $ 1,439 $ 1,115
Commercial -- --
Multi-family -- --
Other loans:
------------
Automobile 89 19
Home Equity -- --
Other 1 7
-------- --------
Total 1,529 1,141
-------- --------
Real estate owned and
Repossessed assets:
---------------------
Real estate loans:
------------------
One- to four-family -- 238
Commercial -- --
Multi-family -- --
Other loans:
------------
Automobile 88 74
Home equity -- --
Other -- --
-------- --------
Total 88 312
-------- --------
Total non-performing assets $ 1,617 $ 1,453
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------------------------------------------
Loans Delinquent:
------------------------------------------
Delinquent Loans Data: 60-89 Days 90 Days or More
--------------------- -------------------- --------------------
Number of Number of
Loans Amount Loans Amount
--------- -------- --------- --------
At December 31, 2007
--------------------
Real estate loans:
One- to four-family 1 $ 416 3 $ 1,439
Commercial -- -- -- --
Multi-family -- -- -- --
Other loans:
Automobile 5 57 5 89
Home equity -- -- -- --
Other 4 2 2 1
--------- -------- --------- --------
Total loans 10 $ 475 10 $ 1,529
========= ======== ========= ========
At June 30, 2007
----------------
Real estate loans:
One- to four-family -- $ -- 2 $ 1,115
Commercial -- -- -- --
Multi-family -- -- -- --
Other loans:
Automobile 7 111 2 19
Home equity -- -- -- --
Other 5 8 4 7
--------- -------- --------- --------
Total loans 12 $ 119 8 $ 1,141
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Delinquent Loans Data: Total Delinquent Loans
--------------------- ----------------------
Number of
Loans Amount
--------- --------
At December 31, 2007
--------------------
Real estate loans:
One- to four-family 4 $ 1,855
Commercial -- --
Multi-family -- --
Other loans:
Automobile 10 146
Home equity -- --
Other 6 3
--------- --------
Total loans 20 $ 2,004
========= ========
At June 30, 2007
----------------
Real estate loans:
One- to four-family 2 $ 1,115
Commercial -- --
Multi-family --
Other loans:
Automobile 9 130
Home equity -- --
Other 9 15
--------- --------
Total loans 20 $ 1,260
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