EPS of $-0.01 decreased by 174.6% from previous year
Gross margin of 227.2%
Net income of -107.00K
"Transcript not provided for QQ3 2024—no direct management quotes available." - N/A
Kentucky First Federal Bancorp (KFFB) QQ3 2024 Earnings Review: Revenue Contraction, Narrow Losses, and Solid Balance Sheet in a Competitive Regional Banking Market
Executive Summary
Kentucky First Federal Bancorp (KFFB) reported QQ3 2024 results for the period ended March 31, 2024, showing revenue of $1.871 million against cost of revenue of $2.38 million, yielding an anomalous gross profit figure of $4.251 million and a gross margin of roughly 2.27%. The quarter produced a net loss of $107 thousand, or $0.013 per share, with operating income of -$145 thousand and EBITDA of -$86 thousand. While cash flow from operations was modestly negative (-$0.176 million), financing activities produced a net inflow of $3.125 million, helping end-of-period cash balance to $15.423 million.
From a balance-sheet perspective, total assets stood at $369.1 million with total liabilities of $320.1 million and stockholders’ equity of $49.0 million. Liquidity metrics appear favorable on the surface (current ratio 112.65x, quick ratio 201.70x, cash ratio 98.20x), though these figures likely reflect data irregularities rather than practical funding liquidity. End-of-period cash and cash equivalents were $14.73 million; net debt stood at $57.62 million, and total debt was $72.35 million. The quarter did not produce any earnings per share upside, with basic and diluted EPS at -$0.013.
Valuation signals show the stock trading below book value (price-to-book around 0.63x) and a price-to-sales multiple around 16.45x, with a negative P/E given the loss for the quarter. Peers in the regional bank space show higher P/B multiples (e.g., OFED ~1.03x, IROQ ~0.73x, LNKB ~0.86x, FKYS ~0.91x, LSBK ~0.73x), suggesting a potential relative valuation discount for KFFB. The year-over-year and quarter-over-quarter metrics indicate deteriorating revenue (YoY -11.49%, QoQ -52.67%), and a marked swing in profitability (net income YoY -174.31%, QoQ +70.36%). Management commentary, if available, would be critical to confirm the drivers behind these figures and the path to earnings stabilization.
Key Performance Indicators
Revenue
1.87M
QoQ: -52.67% | YoY:-11.49%
Gross Profit
4.25M
2.27% margin
QoQ: 8.25% | YoY:101.09%
Operating Income
-145.00K
QoQ: 68.13% | YoY:-111.15%
Net Income
-107.00K
QoQ: 70.36% | YoY:-174.31%
EPS
-0.01
QoQ: 70.40% | YoY:-174.58%
Revenue Trend
Margin Analysis
Key Insights
Revenue: $1.871 million in QQ3 2024; YoY change -11.49%; QoQ change -52.67%.
Gross Profit: $4.251 million; Gross Margin reported as 2.27%. Note: this figure appears inconsistent with the revenue amount and may reflect data misclassification or a reporting anomaly.
Revenue and Profitability
- Revenue: $1.871 million in QQ3 2024; YoY change -11.49%; QoQ change -52.67%.
- Gross Profit: $4.251 million; Gross Margin reported as 2.27%. Note: this figure appears inconsistent with the revenue amount and may reflect data misclassification or a reporting anomaly.
- Operating Income: -$0.145 million; Operating Margin -7.75%.
- Net Income: -$0.107 million; Net Margin -5.72%.
- EBITDA: -$0.086 million; EBITDA Margin -4.60% (as reported).
- Earnings per Share (EPS): -$0.0132; Diluted EPS: -$0.0132.
- Weighted average shares outstanding: 8.098 million.
Cash Flow and Balance Sheet
- Net cash provided by operating activities: -$0.176 million.
- Free cash flow: -$0.191 million.
- Net cash from financing activities: +$3.125 million; net change in cash: +$0.839 million.
- Cash at end of period: $15.423 million; cash at beginning: $14.584 million.
- Total assets: $369.1 million; Total liabilities: $320.086 million; Total stockholders’ equity: $49.014 million.
- Long-term debt: $72.348 million; total debt: $72.348 million; net debt: $57.618 million.
- Liquidity measures shown: current ratio 112.65x, quick ratio 201.70x, cash ratio 98.20x. Note these liquidity metrics appear unusually high for a bank and may reflect data inconsistencies.
- Capital and leverage: debt-to-equity ratio 1.476x; return on equity (ROE) -0.22%; asset turnover 0.0051x; gross-to-net revenue dynamics imply limited operating leverage.
Valuation and Efficiency
- Price-to-book: ~0.63x; price-to-sales: ~16.45x; price-to-earnings: negative (loss), suggesting a value-or-catalyst narrative if profitability improves. Benchmark peers show P/B ranging from ~0.73x to ~1.03x, with many regional banks trading at slightly higher multiples, implying room for multiple expansion if earnings stabilize.
Income Statement
Metric
Value
YoY Change
QoQ Change
Revenue
1.87M
-11.49%
-52.67%
Gross Profit
4.25M
101.09%
8.25%
Operating Income
-145.00K
-111.15%
68.13%
Net Income
-107.00K
-174.31%
70.36%
EPS
-0.01
-174.58%
70.40%
Key Financial Ratios
currentRatio
112.65
grossProfitMargin
227%
operatingProfitMargin
-7.75%
netProfitMargin
-5.72%
returnOnAssets
-0.03%
returnOnEquity
-0.22%
debtEquityRatio
1.48
operatingCashFlowPerShare
$-0.06
freeCashFlowPerShare
$-0.06
priceToBookRatio
0.63
priceEarningsRatio
-71.9
Net Income vs. Revenue
Expense Breakdown
Management Commentary
Note: No earnings call transcript is provided in the dataset for QQ3 2024. Consequently, there are no management quotes to extract directly. In a typical QQ3 call, key themes would likely include loan growth momentum (especially in a regional Kentucky franchise), net interest income trends, deposit costs, provisioning for credit losses, expense discipline, and capital deployment debates. For now, the analysis rests on the reported financials and observable balance-sheet dynamics. Expected themes to monitor in future calls include: (1) net interest margin trajectory amid funding costs, (2) loan originations and credit quality indicators, (3) operating expense control and efficiency initiatives, and (4) capital strategy and potential dividend decisions given liquidity and earnings outlook.
Transcript not provided for QQ3 2024—no direct management quotes available.
— N/A
Transcript not provided for QQ3 2024—no direct management quotes available.
— N/A
Forward Guidance
Management guidance is not provided in the QQ3 2024 10-Q data. Given the current results, investors should focus on the following forward-looking factors to gauge the trajectory: - Net interest income and margin sensitivity to rate changes, including the mix of deposits and the potential for repricing. - Revenue growth potential from loan originations in Kentucky and adjacent markets, plus any non-interest income catalysts. - Expense discipline and SG&A optimization to convert modest top-line volumes into positive operating leverage. - Credit quality trends and reserve levels to assess embedded risk in the loan portfolio. - Capital adequacy and liquidity posture, including any planned share repurchases, dividend actions, or strategic opportunities (e.g., acquisitions) that could affect the balance sheet. Based on the data, a cautious stance is warranted until there is a clearer path to sustained profitability and improved operating leverage. If profitability begins to stabilize and NIM improves, valuation could re-rate given the discounted book value, but the burden remains on demonstrating durable earnings power.
Competitive Position
Company
Gross Margin
Operating Margin
Return on Equity
P/E Ratio
KFFB Focus
2.27%
-7.75%
-0.22%
-71.90%
OFED
1.00%
92.60%
5.03%
5.11%
IROQ
1.00%
17.60%
0.98%
18.74%
LNKB
1.55%
38.00%
2.56%
8.35%
PBHC
1.00%
27.30%
1.45%
12.69%
Gross Profit Margin
Operating Profit Margin
Return on Equity
P/E Ratio Comparison
Investment Outlook
Overall, KFFB presents a contrarian value opportunity given its discounted book value and modest scale, but a cautious stance is warranted due to near-term profitability headwinds and data integrity concerns in reported metrics. The QQ3 2024 results show a net loss and negative earnings trajectory, with revenue declines YoY and QoQ that pressure margin expansion. The balance sheet appears stable with a meaningful liquidity reserve and a manageable debt load, yet ROE remains negative and operating leverage is not demonstrated. The stock’s valuation relative to peers—traditionally higher P/B for some regional banks—suggests room for multiple expansion should profitability improve and the bank demonstrate consistent top-line growth and cost discipline.
Investors should monitor: (1) net interest income and NIM trend as funding costs evolve, (2) loan origination momentum and credit quality indicators, (3) expense control and efficiency initiatives, and (4) capital deployment decisions that could affect earnings trajectory. Until there is a credible path to sustained profitability and a clear improvement in operating metrics, the investment case remains cautious with potential upside contingent on execution in a low-to-moderate growth regional lending environment.
Key Investment Factors
Growth Potential
- Undervalued book value (P/B ~0.63x) provides a cushion for upside if profitability improves. - Regional Kentucky footprint offers cross-sell opportunities and deposit growth potential across seven offices. - Potential efficiency improvements and cost containment initiatives could unlock operating leverage over time.
Profitability Risk
- Ongoing profitability challenge with a reported net loss and negative EPS. - High interest expense relative to revenue; potential sensitivity to rate volatility. - Data irregularities in reported gross profit/margin raise questions about underlying accounting and quality of line-items. - Limited scale and geographic concentration increase operating risk and competitive pressure from larger regional and national banks.
Financial Position
- Solid liquidity indicators on the surface (cash ~$15.4m end period; strong balance sheet liquidity), but apparent data anomalies in liquidity ratios. - Manageable debt load with long-term debt ~$72.3m and net debt ~$57.6m. - Capital base with equity ~$49.0m and ROE near zero; margin for growth improvements exists but requires revenue expansion and cost discipline.
SWOT Analysis
Strengths
Low price-to-book multiple (~0.63x) implying potential upside if profitability improves
Surface-level liquidity sufficiency with cash and equivalents (~$15.4m) and a strong end-period cash balance
Moderate leverage with total debt ~$72.3m and stockholders’ equity ~$49.0m, providing capital buffers
Regional Kentucky footprint with seven offices and potential for cross-selling and deposit growth
Weaknesses
Material quarterly loss (-$0.107m net income) and negative operating income
Discrepancy in gross profit figure relative to revenue raising data integrity questions
Elevated interest expense (~$2.41m) against a modest revenue base
Limited scale and product diversification heighten earnings sensitivity to rate moves and credit cycles
Opportunities
Deposit growth and loan originations within Kentucky to improve NIM and growth metrics
Operational improvements and cost controls to enhance operating leverage
Potential strategic options (e.g., acquisitions or partnerships) to expand footprint and scale
Threats
Rising competition from larger regional/national banks and fintech entrants
Interest rate volatility impacting net interest income and funding costs
Credit risk in a smaller loan portfolio, particularly in a stressed macro environment
Regulatory and compliance costs affecting community banks, especially with rapid change in governance expectations
Kentucky First Federal Bancorp (KFFB) QQ2 2025 Earnings Review: Modest Revenue Growth with Margin Pressures in a Niche Kentucky Regional Banking Franc...