HAZARD, Ky. and FRANKFORT, Ky. and DANVILLE, Ky. and LANCASTER, Ky., Oct. 13, 2023 (GLOBE NEWSWIRE) -- 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 will pay a cash dividend in the amount of ten cents per share to shareholders of record on October 31, 2023 and payable on November 20, 2023.
However, the Company further reported that future dividends will be reduced primarily due to the recent decline in the earnings of the Banks. 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, "We have experienced historic 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. We are implementing strategies to emphasize core deposit relationships instead of higher-cost funding sources. Also, we plan to, over time, shift more of the loan portfolio towards higher-earning loans to include those secured by non-owner occupied residential and commercial real ...