Kentucky First Federal Bancorp (NASDAQ:KFFB) moved -0.84% to recent value of $5.93. The stock transacted 1144 shares during most recent day however it has an average volume of 2.11K shares. It spotted trading -27.21% off 52-week high price. On the other end, the stock has been noted 34.77% away from the low price over the last 52-weeks.
On Sept. 21, 2020, Kentucky First Federal Bancorp (NASDAQ:KFFB) the holding company for First Federal Savings and Loan Association of Hazard and First Federal Savings Bank of Kentucky, reported that a non-cash $13.6 million goodwill impairment charge led to a reported loss of $13.3 million or $1.61 per common share for the quarter ended June 30, 2020. This compares to net income of $300,000 or $0.04 per common share for the quarter ended June 30, 2019. The Company reported a net loss of $12.5 million or $1.52 per common share for the twelve months ended June 30, 2020, compared to net earnings of $812,000 or $0.10 per common share for the twelve months ended June 30, 2019.
The Company recorded a goodwill impairment charge, which had no tax impact, of $13.6 million, or $1.64 per common share, during the quarter ended June 30, 2020, which represents 93.5% of goodwill previously reported. Goodwill of $14.5 million was originally recorded in March 2005 when the Company, as part of its initial public offering, purchased Frankfort First Bancorp, with a portion of the stock and cash proceeds from the offering. The impairment charge represents an accounting transaction which had no impact on cash flows, liquidity, or key capital ratios of the Company or its bank subsidiaries. A prolonged decline in the stock price of the Company exacerbated by the COVID-19 pandemic and related economic impact led to recognition of the impairment pursuant to management’s performance of a goodwill impairment analysis as of June 30, 2020. In conjunction with this determination, management also early adopted ASU 2017-04, Intangibles-Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment, which simplifies the required method for estimating the fair value of the Company. Based on this analysis, the estimated fair value of the Company was less than book value, resulting in the $13.6 million goodwill impairment charge. The estimated fair value of the Company was determined based on a combination of methods including discounted cash flows of forecasted earnings and estimated sales price based on recent observable market transactions of similar securities. According to Tony Whitaker, Chairman of the Company’s Board of Directors, The Company’s stock has been trading at a lower price in the past few months, as many of our peer banks and other financial institutions have experienced during the Covid-19 pandemic. Bank stocks in particular have not rebounded nearly as well as stocks in other sectors. Unfortunately, the lower aggregate price of our stock has been below the Company’s book value, including goodwill and other intangible assets, and therefore, no longer supports the carrying of goodwill on the books as an asset. Don Jennings, the Company’s Chief Executive Officer added, while the charge to earnings for goodwill impairment was unfortunate, the impairment entry obscures some improvement in core earnings. Net income adjusted for the goodwill impairment charge, which is a non-GAAP financial measure, would have been $291,000 or $0.04 per common share for the three months ended June 30, 2020 and $1.0 million or $0.12 per common share for the year ended June 30, 2020.
KFFB has an operating margin of 71.70% while its profit margin remained 7.80% for the last 12 months. Its earnings per share (EPS) expected to touch remained -22.80% for this year.
The company has 8.25M of outstanding shares and 3.12M shares were floated in the market. The price moved ahead of -2.29% from the mean of 20 days, -5.44% from mean of 50 days SMA and performed -13.50% from mean of 200 days price. Company’s performance for the week was 3.49%, -3.26% for month and YTD performance remained -23.48%.
Cheyenne Cox is a news report covering multiple Market and economy News. She is creative and highly professional writer. Cheyenne holds a degree in communication and journalism and has also a Diploma in digital marketing. She belongs to south Africa who has also lived in Europe and is currently based in the US.
