Kentucky First Federal Bancorp Announces Suspension of Quarterly Cash Dividend
January 16 2024 - 4:46PM
Kentucky First Federal Bancorp (Nasdaq: KFFB) (the “Company”), the
holding company for First Federal Savings and Loan Association of
Hazard, Kentucky and First Federal Savings Bank of Kentucky,
Frankfort, Kentucky (collectively the “Banks”), announced today
that the Company’s Board of Directors has voted to suspend the
payment of the quarterly cash dividend on the Company’s common
stock indefinitely. Emphasizing that the Banks are both
well-capitalized under all applicable regulatory requirements and
that asset quality remains good, Don Jennings, President and Chief
Executive Office of the Company stated, “While the suspension of
our quarterly dividend is very disappointing, as previously
disclosed, we have experienced historical increases in short-term
market interest rates as well as a persistent inversion of the
yield curve that has resulted in compressed net interest margins
and much lower earnings at the bank level. As designed, our loans
are repricing in response to the higher rate environment, but due
to contractual terms of those loans, increases are restricted as to
time and amount, resulting in a slower pace of increase than that
of liabilities. Currently, lower earnings limit the Banks’ ability
to stream sufficient funds to the Company to fund operations and
dividends while still maintaining adequate liquidity at the Banks
to fund operations and loan growth. While the Board continues to
believe in a strong Company dividend policy, all of these factors,
coupled with regulators’ enhanced scrutiny on liquidity and bank
dividend payout ratios to their holding companies relative to bank
earnings, necessitate this change. While, future dividend payments
will be dependent upon the Banks’ ability to generate positive
retained earnings and enhanced liquidity, the Board intends to
re-evaluate the payment of a quarterly dividend in the future as
soon as possible.”
Forward-Looking Statements
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: general economic conditions; prices for real
estate in the Company’s market areas; the interest rate environment
and the impact of the interest rate environment on our business,
financial condition and results of operations; our ability to
successfully executive our strategy to increase earnings, increase
core deposits, reduce reliance on higher cost funding sources and
shift more of our loan portfolio towards higher-earning loans
enhance our liquidity; our ability to pay future dividends and if
so at what level; our ability to receive any required regulatory
approval or non-objection for the payment of dividends from the
Banks to the Company or from the Company to shareholders;
competitive conditions in the financial services industry; changes
in the level of inflation; changes in the demand for loans,
deposits and other financial services that we provide; the
possibility that future credit losses may be higher than currently
expected; competitive pressures among financial services companies;
the ability to attract, develop and retain qualified employees; our
ability to maintain the security of our data processing and
information technology systems; the outcome of pending or
threatened litigation, or of matters before regulatory agencies;
changes in law, governmental policies and regulations, rapidly
changing technology affecting financial services, and the Risk
Factors described in the Company’s Annual Report on Form 10-K for
the year ended June 30, 2023 and in the Company’s Quarterly Report
on Form 10-Q for the period ended September 30, 2023. 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.
About Kentucky First Federal
Bancorp
Kentucky First Federal Bancorp is the parent
company of First Federal Savings and Loan Association of Hazard,
which operates one banking office in Hazard, Kentucky and First
Federal Savings Bank of Kentucky, which operates three banking
offices in Frankfort, Kentucky, two banking offices in Danville,
Kentucky and one banking office in Lancaster, Kentucky. Kentucky
First Federal Bancorp shares are traded on the Nasdaq National
Market under the symbol KFFB. At September 30, 2023, the Company
had approximately 8,097,695 shares outstanding of which
approximately 58.4% was held by First Federal MHC.
Contact: Kentucky First Federal Bancorp Don
Jennings, President (502) 223-1638
Kentucky First Federal B... (NASDAQ:KFFB)
Historical Stock Chart
From Jul 2024 to Aug 2024
Kentucky First Federal B... (NASDAQ:KFFB)
Historical Stock Chart
From Aug 2023 to Aug 2024