Kentucky First Federal Bancorp reported net income of $302,000, or $0.04 per diluted share, in the first quarter of 2010, ending 3/31/2010. The company earned $351,000, or $0.05 per diluted share, in the same quarter in 2009.

Kentucky First Federal Bancorp said that the lower net income was due mainly to higher non-interest expenses and loan loss provisions. The higher non-interest expenses included increased legal fees, compensation expense and insurance premiums assessed by the Federal Deposit Insurance Corporation (FDIC) for the bank insurance fund.

The provision for loan losses totaled $71,000 for the first quarter of 2010, compared to no loan loss provisions in the first quarter of 2009.

The book value of Kentucky First Federal Bancorp fell slightly on a year over basis, from $7.42 on 6/30/09, to $7.38 in the quarter that just ended. Deposits increased over the same time frame, from $139 million to $143 million.

Kentucky First Federal Bancorp is a bank holding company that owns two banking subsidiaries, First Federal Savings and Loan Association of Hazard and First Federal Savings Bank of Frankfort. The two banks had assets of $238 million as of 3/31/2010.

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