COVINA, Calif., Aug. 15, 2008 (PRIME NEWSWIRE) -- K-FED Bancorp (Nasdaq:KFED), the parent company of Kaiser Federal Bank, reported net income of $3.9 million or $0.29 per diluted share for the year ended June 30, 2008 as compared to $4.7 million or $0.34 per diluted share for the same period last year. Net income declined during the year ended June 30, 2008, primarily due to the recognition of $1.3 million in expenses resulting from the cancellation of the stock offering in November 2007 in connection with the proposed second-step conversion of K-Fed Mutual Holding Company. The recognition of these expenses resulted in a decline of 6 cents per share in the Company's diluted earnings per share for the year ended June 30, 2008.
The Bank's asset quality remains strong despite continued deterioration in the Southern California housing market. The strong asset quality is the result of a traditional residential real estate loan portfolio with uncompromised underwriting standards. In this regard, the Bank has not originated or purchased construction and development loans, teaser option-ARM loans, negative amortizing loans or high LTV loans. Delinquent loans totaled $1.9 million or 0.26% of total loans as compared to $1.3 million or 0.18% of total loans as of June 30, 2007. Further, non-performing assets totaled $2.9 million or 0.35% of total assets as of June 30, 2008 as compared to $1.5 million or 0.18% of total assets as of June 30, 2007. Net charge-offs totaled $538,000 or 0.07% of average loans for the year ended June 30, 2008 as compared to $446,000 or 0.07% of average loans outstanding for the year ended June 30, 2007.
While the increase in delinquencies and non-performing assets is directionally consistent with current market conditions, the resulting ratios are still well below industry averages. Also, despite this increase the Bank has not experienced significant charge-offs. This is primarily due to the strong underwriting standards that require, among other things, a minimum of 20% equity in the underlying properties, which provides protection to both the Bank and the borrowers in this difficult environment.
The Bank's net interest margin increased to 2.45% for the year ended June 30, 2008 from 2.43% for the year ended June 30, 2007. The increase was primarily the result of a shift from lower yielding one-to-four family real estate loans to higher yielding multifamily and commercial real estate loans.
Total assets increased to $849 million at June 30, 2008 from $800 million at June 30, 2007. This increase was primarily due to strong growth in the Bank's multifamily and commercial real estate portfolios as total loans increased from $702 million at June 30, 2007 to $745 million at June 30, 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)
June 30, 2008
(Dollars in thousands, except share data)
Selected Financial Condition June 30 June 30
Data and Ratios: 2008 2007
-------------------------------- ------------- -------------
Total assets $ 849,016 $ 799,625
Gross loans receivable 745,435 701,962
Allowance for loan losses (3,229) (2,805)
Cash and cash equivalents 44,315 22,339
Total deposits 495,058 494,128
Federal Home Loan Bank advances 207,019 210,016
State of California time deposits 25,000 --
Total stockholders' equity $ 90,728 $ 92,317
Asset Quality Ratios:
---------------------
Equity to total assets 10.69% 11.55%
Delinquent loans to total loans 0.26% 0.18%
Non-performing loans to total loans 0.23% 0.16%
Non-performing assets to total assets 0.35% 0.18%
Net charge-offs to average loans
outstanding 0.07% 0.07%
Allowance for loan losses to total loans 0.43% 0.40%
Allowance for loan losses to
non-performing loans 186.66% 245.84%
Selected Results of Operations Years Ended
Data and Ratios June 30
----------------------------- ----------------------------
2008 2007
------------- -------------
Interest income $ 45,238 $ 41,166
Interest expense (25,769) (23,140)
------------- -------------
Net interest income 19,469 18,026
Provision for loan losses (962) (529)
------------- -------------
Net interest income after provision
for loan losses 18,507 17,497
Noninterest income 4,320 4,259
Noninterest expense, excluding stock
offering costs (15,477) (14,518)
Stock offering costs (1,279) --
------------- -------------
Income before income tax expense 6,071 7,238
Income tax expense (2,163) (2,534)
------------- -------------
Net income $ 3,908 $ 4,704
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Performance Ratios:
Net income per share - basic $ 0.29 $ 0.35
Net income per share - diluted $ 0.29 $ 0.34
Return on average assets 0.47% 0.61%
Return on average equity 4.21% 5.09%
Net interest margin 2.45% 2.43%
Efficiency ratio (excluding stock
offering expenses) 64.98% 65.15%
At June 30, At June 30,
Non-accrual loans Data: 2008 2007
----------------------- ------------- -------------
Real estate loans:
------------------
One- to four-family $ 1,583 $ 1,115
Commercial -- --
Multi-family -- --
Other loans:
------------
Automobile 132 19
Home Equity -- --
Other 15 7
------------- -------------
Total 1,730 1,141
------------- -------------
Real estate owned and Repossessed assets:
-----------------------------------------
Real estate loans:
------------------
One- to four-family 1,045 238
Commercial -- --
Multi-family -- --
Other loans:
------------
Automobile 161 74
Home equity -- --
Other -- --
------------- -------------
Total 1,206 312
------------- -------------
Total non-performing assets $ 2,936 $ 1,453
============= =============
---------------------------------
Loans Delinquent
---------------------------------
Delinquent Loans 60-89 90 Days Total
Data: Days or Delinquent
----------------- More Loans
--------------- --------------- ---------------
No. of Amount No. of Amount No. of Amount
Loans Loans Loans
------ ------ ------ ------ ------ ------
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
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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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