The Bank of Kentucky Financial Corp. (BKYF, Financial) filed Quarterly Report for the period ended 2009-09-30.
The Bank of Kentucky Financial Corporation is a bank holding company engaged in the banking business through Bank of Kentucky Inc. BKI provides a variety of community-oriented consumer and commercial financial services to customers throughout Northern Kentucky. The principal business activity of BKI consists of accepting consumer and commercial deposits and usingsuch deposits to fund residential and non-residential real estate loans andcommercial consumer construction and land development loans. The Bank Of Kentucky Financial Corp. has a market cap of $107.2 million; its shares were traded at around $19.1 with a P/E ratio of 13.6 and P/S ratio of 1.2. The dividend yield of The Bank Of Kentucky Financial Corp. stocks is 3%.
Total assets at September 30, 2009 were $1,391,669,000 as compared to $1,255,382,000 at December 31, 2008, an increase of $136,287,000 (11%). Loans outstanding increased $83,645,000 (8%) from $1,026,557,000 at December 31, 2008 to $1,110,202,000 at September 30, 2009, while available-for-sale securities increased $32,374,000 (38%) for the same time period. As Table 1 illustrates, the growth in the loan portfolio in 2009 came from increases in commercial loans of $45,626,000 (26%) and nonresidential real estate loans of $28,279,000 (7%). Contributing to the increase in loans was the $50,0000,000 loans purchase from Integra, the majority of which were commercial loans. The increase in available-for-sale securities was due in part to the addition of short term investments purchased with the proceeds resulting from the sale of Series A Preferred Stock to the Treasury Department in connection with the CPP.
Deposits increased $79,611,000 (7%) to $1,150,764,000 at September 30, 2009, compared to $1,071,153,000 at December 31, 2008, while short-term borrowings increased $18,067,000 (64%) to $46,220,000 at September 30, 2009 from $28,153,000 at December 31, 2008. As Table 1 illustrates, the growth in deposits for the first nine months of 2009 came from increases in savings deposits of $12,714,000 (42%) and certificates of deposits of $45,496,000 (14%). The increase in short term borrowings included fed funds purchased of $24,306,000 on September 30, 2009, which were used to fund a portion of the loans purchased from Integra.
Net income available to common stockholders year to date decreased from $8,550,000 ($1.52 diluted earnings per share) in 2008 to $5,149,000 ($.91 diluted earnings per share) in 2009, a decrease of $3,401,000 (40%). Net income available to common stockholders for the quarter ended September 30, 2009 was $1,039,000 ($.18 diluted earnings per share) as compared to $3,419,000 ($.61 diluted earnings per share) during the same period of 2008, a decrease of $2,380,000 (70%). The year to date and third quarter figures
included $1,283,000 and $506,000 respectively in accrued preferred stock dividends and amortization. No comparable dividends and amortization were applicable for the 2008 periods. Other factors contributing to the decrease in earnings during the first nine months of 2009 were a $5,150,000 (162%) increase in provision expense, and increase of Federal Deposit Insurance Corporation (FDIC) expense of $1,284,000, which were partially offset by a $3,138,000 (8%) increase in revenue. The increase in FDIC insurance included a $600,000 special assessment that was accrued in the second quarter of 2009 and paid in the third quarter of 2009. Contributing to the increase in the provision for loan losses was higher levels of net charge-offs and non-performing loans in the third quarter of 2009 versus the same period in 2008 and managements concerns over the declining housing market, falling real estate values and the overall deteriorating economic conditions. Contributing to the increase in revenue was a $2,363,000 (8%) increase in net interest income and an increase of sold loan income of $510,000 (71%).
Net interest income increased $873,000 (8%) in the third quarter of 2009 as compared to the same period in 2008, while the year to date total increased $2,363,000 (8%) from $30,268,000 in 2008 to $32,631,000 in 2009. As illustrated in Table 4, relatively all of the growth in net interest income was the result of growth in the balance sheet. The table shows the net interest income on a fully tax equivalent basis was positively impacted by the volume additions to the balance sheet by $1,095,000. Contributing to the favorable volume variance, as illustrated in Table 2, was average earning assets increasing $148,317,000 or 14% from the third quarter of 2008 to the third quarter of 2009, while average interest bearing liabilities only increased $103,895,000 or 11% to $1,035,521,000 from the third quarter of 2008 to the third quarter of 2009.
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The Bank of Kentucky Financial Corporation is a bank holding company engaged in the banking business through Bank of Kentucky Inc. BKI provides a variety of community-oriented consumer and commercial financial services to customers throughout Northern Kentucky. The principal business activity of BKI consists of accepting consumer and commercial deposits and usingsuch deposits to fund residential and non-residential real estate loans andcommercial consumer construction and land development loans. The Bank Of Kentucky Financial Corp. has a market cap of $107.2 million; its shares were traded at around $19.1 with a P/E ratio of 13.6 and P/S ratio of 1.2. The dividend yield of The Bank Of Kentucky Financial Corp. stocks is 3%.
Highlight of Business Operations:
The Company reported a decrease in diluted net income per share of 40% for the first nine months of 2009, and a decrease of 70% for the third quarter, as compared to the same periods in 2008. Highlighting third quarter 2009 results was an increase in total operating revenue of 1,065,000 (7%), an increase in loans of $110,809,000 (11%) and an increase in deposits of 158,272,000 (16%), as compared to the third quarter of 2008. Offsetting these increases was an additional $3,225,000 provision for loan losses and a $523,000 increase in losses on the sale of other real estate owned (OREO) as compared to the third quarter of 2008. Contributing to the revenue increase was the result of increases in net interest income of $873,000, or 8% in the third quarter of 2009, as compared to the same period in 2008. Contributing to the increase in the provision for loan losses were higher levels of charge-offs and non-performing loans in the third quarter of 2009 as compared to the same period in 2008, and managements continuing concerns over the effect of the declining housing market, falling real estate values and the overall deteriorating economic conditions will have on the Companys loan portfolio. The losses on the sale of OREO property included a loss of $462,000 on one property.Total assets at September 30, 2009 were $1,391,669,000 as compared to $1,255,382,000 at December 31, 2008, an increase of $136,287,000 (11%). Loans outstanding increased $83,645,000 (8%) from $1,026,557,000 at December 31, 2008 to $1,110,202,000 at September 30, 2009, while available-for-sale securities increased $32,374,000 (38%) for the same time period. As Table 1 illustrates, the growth in the loan portfolio in 2009 came from increases in commercial loans of $45,626,000 (26%) and nonresidential real estate loans of $28,279,000 (7%). Contributing to the increase in loans was the $50,0000,000 loans purchase from Integra, the majority of which were commercial loans. The increase in available-for-sale securities was due in part to the addition of short term investments purchased with the proceeds resulting from the sale of Series A Preferred Stock to the Treasury Department in connection with the CPP.
Deposits increased $79,611,000 (7%) to $1,150,764,000 at September 30, 2009, compared to $1,071,153,000 at December 31, 2008, while short-term borrowings increased $18,067,000 (64%) to $46,220,000 at September 30, 2009 from $28,153,000 at December 31, 2008. As Table 1 illustrates, the growth in deposits for the first nine months of 2009 came from increases in savings deposits of $12,714,000 (42%) and certificates of deposits of $45,496,000 (14%). The increase in short term borrowings included fed funds purchased of $24,306,000 on September 30, 2009, which were used to fund a portion of the loans purchased from Integra.
Net income available to common stockholders year to date decreased from $8,550,000 ($1.52 diluted earnings per share) in 2008 to $5,149,000 ($.91 diluted earnings per share) in 2009, a decrease of $3,401,000 (40%). Net income available to common stockholders for the quarter ended September 30, 2009 was $1,039,000 ($.18 diluted earnings per share) as compared to $3,419,000 ($.61 diluted earnings per share) during the same period of 2008, a decrease of $2,380,000 (70%). The year to date and third quarter figures
included $1,283,000 and $506,000 respectively in accrued preferred stock dividends and amortization. No comparable dividends and amortization were applicable for the 2008 periods. Other factors contributing to the decrease in earnings during the first nine months of 2009 were a $5,150,000 (162%) increase in provision expense, and increase of Federal Deposit Insurance Corporation (FDIC) expense of $1,284,000, which were partially offset by a $3,138,000 (8%) increase in revenue. The increase in FDIC insurance included a $600,000 special assessment that was accrued in the second quarter of 2009 and paid in the third quarter of 2009. Contributing to the increase in the provision for loan losses was higher levels of net charge-offs and non-performing loans in the third quarter of 2009 versus the same period in 2008 and managements concerns over the declining housing market, falling real estate values and the overall deteriorating economic conditions. Contributing to the increase in revenue was a $2,363,000 (8%) increase in net interest income and an increase of sold loan income of $510,000 (71%).
Net interest income increased $873,000 (8%) in the third quarter of 2009 as compared to the same period in 2008, while the year to date total increased $2,363,000 (8%) from $30,268,000 in 2008 to $32,631,000 in 2009. As illustrated in Table 4, relatively all of the growth in net interest income was the result of growth in the balance sheet. The table shows the net interest income on a fully tax equivalent basis was positively impacted by the volume additions to the balance sheet by $1,095,000. Contributing to the favorable volume variance, as illustrated in Table 2, was average earning assets increasing $148,317,000 or 14% from the third quarter of 2008 to the third quarter of 2009, while average interest bearing liabilities only increased $103,895,000 or 11% to $1,035,521,000 from the third quarter of 2008 to the third quarter of 2009.
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