FIRST FEDERAL FINANCIAL CORPORATION OF KENTUCKY

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)

ý	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934.

For the quarterly period ended March 31, 2004

OR

o	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934.

Commission File Number 0-18832

First Federal Financial Corporation of Kentucky
(Exact Name of Registrant as specified in its charter)

Kentucky		61-1168311
(State or other jurisdiction of incorporation or organization)		(IRS Employer Identification No.)

2323 Ring Road
Elizabethtown, Kentucky 42701
(Address of principal executive offices)
(Zip Code)

(270) 765-2131
(Registrant’s telephone number, including area code)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

Yes ý No o

Indicate by check mark whether the registrant is an accelerated filer (as defined in Rule 12b-2 of the Exchange Act).

Yes ý No o

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date.

Class		Outstanding as of April 30, 2004

Common Stock		3,645,438 shares

TABLE OF CONTENTS

PART I – FINANCIAL INFORMATION

Item 1.	Consolidated Financial Statements and Notes to Consolidated Financial Statements

Item 2.	Management’s Discussion and Analysis of the Consolidated Statements of Financial Condition and Results of Operations

Item 3.	Quantitative and Qualitative Disclosures about Market Risk

Item 4.	Controls and Procedures

PART II – OTHER INFORMATION

Item 1.	Legal Proceedings

Item 2.	Changes In Securities, Use of Proceeds and Issuer Purchases of Equity Securities

Item 3.	Defaults upon Senior Securities

Item 4.	Submission of Matters to a Vote of Security Holders

Item 5.	Other Information

Item 6.	Exhibits and Reports on Form 8-K

	SIGNATURES

	CERTIFICATIONS

Item 1.

FIRST FEDERAL FINANCIAL CORPORATION OF KENTUCKY

Consolidated Statements of Financial Condition

	(Unaudited)
(Dollars In Thousands, Except Share Data)	March 31, 2004			December 31, 2003

ASSETS
Cash and due from banks	$	26,890		$	28,030
Federal funds sold	22,000			20,000
Cash and cash equivalents	48,890			48,030
Securities available-for-sale	4,050			4,009
Securities held-to-maturity, fair value of $24,593 Mar (2004) and $30,919 Dec (2003)	24,557			30,929
Total securities	28,607			34,938
Loans held for sale	1,363			1,021
Loans receivable, net of unearned fees	569,939			554,700
Allowance for loan losses	(5,733		)	(5,568		)
Net loans receivable	565,569			550,153
Federal Home Loan Bank stock	6,636			6,570
Cash surrender value of life insurance	7,137			7,067
Premises and equipment, net	16,557			15,466
Real estate owned:
Acquired through foreclosure	224			387
Held for development	446			446
Other repossessed assets	39			62
Goodwill	8,384			8,384
Accrued interest receivable	1,764			1,931
Other assets	3,894			2,901

TOTAL ASSETS	$	688,147		$	676,335

LIABILITIES AND STOCKHOLDERS’ EQUITY
LIABILITIES:
Deposits:
Non-interest bearing	$	32,881		$	28,632
Interest bearing	507,966			500,530
Total deposits	540,847			529,162
Advances from Federal Home Loan Bank	78,210			78,283
Subordinated debentures	10,000			10,000
Accrued interest payable	398			416
Accounts payable and other liabilities	1,593			1,027
Deferred income taxes	1,140			1,126

TOTAL LIABILITIES	632,188			620,014

STOCKHOLDERS’ EQUITY:
Serial preferred stock, 5,000,000 shares authorized and unissued	—			—
Common stock, $1 par value per share; authorized 10,000,000 shares; issued and outstanding, 3,645,438 shares Mar (2004), and 3,705,438 shares Dec (2003)	3,645			3,705
Additional paid-in capital	8,226			9,726
Retained earnings	43,263			42,092
Accumulated other comprehensive income, net of tax	825			798

TOTAL STOCKHOLDERS’ EQUITY	55,959			56,321
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	688,147		$	676,335

See notes to the unaudited consolidated financial statements.

FIRST FEDERAL FINANCIAL CORPORATION OF KENTUCKY

Consolidated Statements of Income

(Dollars In Thousands, Except Per Share Data)

(Unaudited)

	Three Months Ended March 31,
	2004		2003
Interest Income:
Interest and fees on loans	$	9,107	$	9,638
Interest and dividends on investments and deposits	443		486
Total interest income	9,550		10,124

Interest Expense:
Deposits	2,725		3,245
Federal Home Loan Bank advances	928		922
Subordinated debentures	124		129