Kentucky First Federal Bancorp Releases Earnings

HAZARD, Ky. and FRANKFORT, Ky., Jan. 22 /PRNewswire-FirstCall/ -- Kentucky
First Federal Bancorp (Nasdaq: KFFB), the holding company for First Federal
Savings and Loan Association of Hazard and First Federal Savings Bank of
Frankfort, Kentucky, announced net earnings of $211,000, or $0.03 per diluted
share, for the three months ended December 31, 2007, compared to $204,000, or
$0.03 per diluted share, for the three months ended December 31, 2006, an
increase of $7,000 or 3.4% period to period. Net earnings for the six months
ended December 31, 2007, were $363,000, or $0.05 per diluted share, compared
to $438,000 or $0.06 per diluted share for the six months ended December 31,
2006.
The increase in net earnings for the quarter ended December 31, 2007 was
primarily attributable to a reduction in general, administrative and other
expense, which decreased $31,000 or 2.9% period to period. Somewhat
offsetting the decrease in general, administrative and other expense was a
decrease in net interest income. Net interest income decreased $15,000, or
1.1%, for the recently ended quarterly period.
At December 31, 2007, assets had decreased $2.8 million, or 1.0%, to
$266.1 million compared to $268.9 million at June 30, 2007. This decrease was
attributed primarily to a decrease in investment securities of $10.7 million,
or 14.6%, which totaled $62.3 million at December 31, 2007. The decrease in
investment securities was a result of maturities and/or calls of approximately
$10.0 million in investment securities. Somewhat offsetting the decrease in
investment securities was an increase of $8.2 million or 4.9% in loans
receivable.
At December 31, 2007, the Company reported its book value per share as
$7.86.
This press release may contain statements that are forward-looking, as
that term is defined by the Private Securities Litigation Act of 1995 or the
Securities and Exchange Commission in its rules, regulations and releases.
The Company intends that such forward-looking statements be subject to the
safe harbors created thereby. All forward-looking statements are based on
current expectations regarding important risk factors including, but not
limited to, real estate values, the impact of interest rates on financing,
changes in general economic conditions, legislative and regulatory changes
that adversely affect the business of the Company and changes in the
securities markets. Accordingly, actual results may differ from those
expressed in the forward-looking statements, and the making of such statements
should not be regarded as a representation by the Company or any other person
that results expressed therein will be achieved.
Kentucky First Federal Bancorp is the parent company of First Federal
Savings and Loan Association, which operates one banking office in Hazard,
Kentucky and First Federal Savings Bank, which operates three banking offices
in Frankfort, Kentucky. Kentucky First Federal Bancorp shares are traded on
the Nasdaq National Market under the symbol KFFB. At December 31, 2007, the
Company had approximately 8,124,000 shares outstanding of which approximately
58.2% was held by First Federal MHC.

SUMMARY OF FINANCIAL HIGHLIGHTS
Condensed Consolidated Statements of Financial Condition

December 31, June 30,
2007 2007
(In thousands, except share data)
(Unaudited) (Audited)

Assets
Cash and Cash Equivalents $2,160 $2,720
Investment Securities 62,321 73,004
Loans Available for Sale 124 --
Loans Receivable, net 174,352 166,156
Other Assets 27,154 27,036
Total Assets $266,111 $268,916

Liabilities
Deposits $136,991 $139,893
FHLB Advances 66,146 65,132
Other Liabilities 2,157 2,446
Total Liabilities 205,294 207,471
Shareholders' Equity 60,817 61,445
Total Liabilities and Equity $266,111 $268,916
Book Value Per Share $7.86 $7.82

Condensed Consolidated Statements of Earnings
(In thousands, except share data)

Six months ended Three months ended
December 31, December 31,
2007 2006 2007 2006
(Unaudited) (Unaudited)

Interest Income $6,737 $6,408 $3,393 $3,191
Interest Expense 4,173 3,652 2,080 1,863
Net Interest Income 2,564 2,756 1,313 1,328
Provision for Losses
on Loans - - - -
Other Operating Income 88 83 43 47
General, Administrative,
and Other Expense 2,123 2,195 1,046 1,077
Earnings Before Federal
Income Taxes 529 644 310 298
Federal Income Taxes 166 206 99 94
Net Earnings $363 $438 $211 $204

Basic Earnings Per Share $0.05 $0.06 $0.03 $0.03
Diluted Earnings Per
Share $0.05 $0.06 $0.03 $0.03
Dividends Per Share $0.20 $0.20 $0.10 $0.10
Weighted average
outstanding shares:
Basic 7,781,376 8,161,113 7,745,436 8,178,356
Diluted 7,781,376 8,161,113 7,745,436 8,178,356

SOURCE Kentucky First Federal Bancorp

Don Jennings, President, or Clay Hulette, Vice President, of Kentucky First
Federal Bancorp, +1-502-223-1638