HAZARD, Ky. and FRANKFORT, Ky., Aug. 17, 2012 (GLOBE NEWSWIRE) -- Kentucky First Federal Bancorp (Nasdaq:KFFB) (the "Company"), the holding company for First Federal Savings and Loan Association of Hazard and First Federal Savings Bank of Frankfort, Kentucky, announced net income of $1.7 million or $0.23 diluted earnings per share for the year ended June 30, 2012, which represents a $41,000 or 2.3% decrease from the year ended June 30, 2011. The decrease in earnings year over year was due primarily to higher income tax expense. Although net income before taxes increased $695,000 or 37.4% to $2.6 million for the year ended June 30, 2012, compared to the prior year period, income tax expense increased a disproportional $736,000 to $840,000 for the recently ended year. Effective income tax rates for the years ended June 30, 2012 and 2011, were 32.9% and 5.6%, respectively, due to recognition of a $403,000 tax refund in the prior year. Net interest income after provision for loan losses increased $938,000 or 13.6% to $7.8 million for the 2012 year because of higher net interest income before provision for loan loss expense and lower provision expense as well. Net interest income before loss provision increased $409,000 or 5.4% to $8.0 million for the twelve months ended June 30, 2012, while provision for loan losses decreased $529,000 or 79.2% to $139,000 for the recently ended year.
The Company reported net income of $378,000 or $0.05 diluted earnings per share for the three months ended June 30, 2012, compared to $555,000 or $0.07 per share for the three months ended June 30, 2011. The decrease in net profit of $177,000, or 31.9%, was due primarily to a decrease in net interest income and an increase in provision for loan losses. Net interest income decreased $73,000 or 3.6% for the three month period ended June 30, 2012 to $1.9 million, compared to $2.0 million in the prior-year quarter, while the provision for loan losses for the recently-ended quarterly period was $57,000 compared to no provision for the same period a year ago. Income tax expense increased $75,000 or 68.8% to $184,000 for the three months ended June 30, 2012.