Kentucky First Federal Bancorp in Hazard reported a quarterly loss that reflected a $947,000 goodwill impairment charge.
The $375 million-asset company said in a press release that it lost $1.1 million in the quarter that ended June 30. It earned $42,000 a year earlier.
The impairment charge reflected goodwill from the company’s March 2005 purchase of Frankfort First Bancorp.
In recent months, the company has been operating under a formal agreement with the Office of the Comptroller of the Currency. It also suspended its dividend.
“The company’s stock has been trading at a lower price over the last year due to lower earnings” along with the OCC agreement and the suspended dividend, Don Jennings, the company’s president and CEO, said in the release.
“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,” he added.