COVINA, Calif., May 2, 2008 (PRIME NEWSWIRE) -- K-FED Bancorp (Nasdaq:KFED), the parent company of Kaiser Federal Bank, reported net income of $1.3 million or $0.10 per diluted share for the quarter ended March 31, 2008. This represents a 19% increase over net income of $1.1 million for the same period last year. The increase was primarily the result of an increased net interest margin resulting from a higher yielding loan portfolio.
Net income for the nine months then ended March 31, 2008 was $2.7 million or $0.20 per diluted share as compared to $3.6 million or $0.26 per diluted share for the same period last year. Net income declined during the nine months ended March 31, 2008 primarily due 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 diluted earnings per share for the nine months ended March 31, 2008.
"The Bank's emphasis on its long standing, prudent underwriting standards has continued to provide benefit in the form of solid credit quality ratios," said Kay Hoveland, President/CEO.
Delinquent loans totaled $2.5 million or 0.34% of total loans as compared to $1.3 million or 0.18% of total loans as of June 30, 2007. The increase was primarily due to an increase in the Bank's one- to four-family real estate loan delinquencies. While this increase is consistent with current market conditions, the resulting ratio is still well below industry averages. Further, non-performing assets totaled $1.6 million or 0.18% of total assets as of March 31, 2008 as compared to $1.5 million or 0.18% of total assets as of June 30, 2007. Net charge-offs totaled $300,000 or 0.04% of average loans for the nine months ended March 31, 2008, as compared to $259,000 or 0.07% of average loans outstanding for the same period last year.
The Bank's net interest margin increased to 2.51% for the quarter ended March 31, 2008 from 2.44% for the quarter ended March 31, 2007. The increase was primarily the result of a shift from lower yielding one-to four family real estate loans to higher yielding commercial and multifamily real estate loans. The net interest margin for the nine months ended March 31, 2008 of 2.44% was consistent with the net interest margin of 2.45% for the same period last year.
Total assets increased to $864 million at March 31, 2008 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 $733 million at March 31, 2008. The Bank will continue to focus in these areas in an effort to diversify its loan portfolio as well as increase its net interest margin.
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)
March 31, 2008
(Dollars in thousands, except share data)
Selected Financial Condition
Data and Ratios: March 31, June 30,
---------------------------- 2008 2007
--------- ---------
Total assets $ 863,605 $ 799,625
Gross loans receivable 732,790 701,962
Allowance for loan losses (3,057) (2,805)
Cash and cash equivalents 76,352 26,732
Total deposits 496,402 494,128
Federal Home Loan Bank advances 245,019 210,016
State of California time deposits 25,000 --
Total stockholders' equity $ 93,465 $ 92,317
Asset Quality Ratios:
---------------------
Equity to total assets 10.82% 11.55%
Delinquent loans to total loans 0.34% 0.18%
Non-performing loans to total loans 0.21% 0.16%
Non-performing assets to total assets 0.18% 0.18%
Net charge-offs to average loans outstanding 0.04% 0.07%
Allowance for loan losses to total loans 0.42% 0.40%
Allowance for loan losses to non-performing
loans 203.66% 245.84%
Selected Results of Operations Data and Ratios:
-----------------------------------------------
Three Months Ended Nine Months Ended
March 31 March 31
------------------ --------------------
2008 2007 2008 2007
------- ------- -------- --------
Interest income $11,586 $10,468 $ 33,825 $ 30,439
Interest expense (6,499) (5,938) (19,448) (16,950)
------- ------- -------- --------
Net interest income 5,087 4,530 14,377 13,489
Provision for loan losses (200) (116) (551) (419)
------- ------- -------- --------
Net interest income after
provision for loan losses 4,887 4,414 13,826 13,070
Noninterest income 1,079 1,093 3,148 3,179
Noninterest expense,
excluding stock offering
costs (3,865) (3,851) (11,517) (10,813)
Stock offering costs (10) -- (1,279) --
------- ------- -------- --------
Income before income tax
expense 2,091 1,656 4,178 5,436
Income tax expense (766) (543) (1,453) (1,863)
------- ------- -------- --------
Net income $ 1,325 $ 1,113 $ 2,725 $ 3,573
======= ======= ======== ========
Performance Ratios:
Net income per share -
basic and diluted $ 0.10 $ 0.08 $ 0.20 $ 0.26
Return on average assets 0.63% 0.57% 0.44% 0.62%
Return on equity 5.66% 4.85% 3.89% 5.15%
Net interest margin 2.51% 2.44% 2.44% 2.45%
Efficiency ratio (excluding
stock offering expenses) 62.69% 68.48% 65.72% 64.87%
Non-accrual loans Data: At March 31, At June 30,
----------------------- 2008 2007
------ ------
Real estate loans:
-----------------
One- to four-family $1,439 $1,115
Commercial -- --
Multi-family -- --
Other loans:
------------
Automobile 44 19
Home Equity -- --
Other 18 7
------ ------
Total 1,501 1,141
------ ------
Real estate owned and Repossessed assets:
----------------------------------------
Real estate loans:
------------------
One- to four-family -- 238
Commercial -- --
Multi-family -- --
Other loans:
------------
Automobile 89 74
Home equity -- --
Other -- --
------ ------
Total 89 312
------ ------
Total non-performing assets $1,590 $1,453
====== ======
Delinquent Loans Data:
----------------------
---------------------------------
Loans Delinquent:
--------------------------------- Total Delinquent
60-89 Days 90 Days or More Loans
--------------- --------------- ---------------
No. of No. of No. of
Loans Amount Loans Amount Loans Amount
------ ------ ------ ------ ------ ------
At March 31,
2008
------------
Real estate
loans:
One- to four
-family 2 $ 856 3 $1,439 5 $2,295
Commercial -- -- -- -- -- --
Multi-family -- -- -- -- -- --
Other loans:
Automobile 11 136 2 44 13 180
Home equity -- -- -- -- -- --
Other 15 29 10 18 25 47
------ ------ ------ ------ ------ ------
Total loans 28 $1,021 15 $1,501 43 $2,522
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At June 30,
2007
Real estate
loans:
One- to four
-family -- $ -- 2 $1,115 2 $1,115
Commercial -- -- -- -- -- --
Multi-family -- -- -- -- -- --
Other loans:
Automobile 7 111 2 19 9 130
Home equity -- -- -- -- -- --
Other 5 8 4 7 9 15
------ ------ ------ ------ ------ ------
Total loans 12 $ 119 8 $1,141 20 $1,260
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