Attached files
| file | filename |
|---|---|
| 8-K - Kentucky First Federal Bancorp | v210549_8-k.htm |
Exhibit
99
Kentucky First Federal Bancorp
Hazard,
Kentucky and Frankfort, Kentucky
For
Immediate Release February 8, 2011
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Contact:
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Don
Jennings, President
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(502)
223-1638
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Clay
Hulette, Vice President
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(502)
223-1638
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Tony
Whitaker, Chairman
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(606)
436-3860
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Kentucky
First Federal Bancorp Announces Settlement of IRS Tax Issue
Kentucky First Federal Bancorp (Nasdaq:
KFFB), the holding company for First Federal Savings and Loan Association
of Hazard, Kentucky and First Federal Savings Bank of Frankfort, Kentucky,
announced that the Company has reached a settlement with the Internal Revenue
Service in the United States Tax Court allowing a $1.4 million deduction, that
was previously disallowed by the Service. The Company had filed a
petition with the United States Tax Court claiming that the Company was entitled
to a deduction related to payments it made with regard to stock options in March
2005. The payments were coincident with the initial transactions
which were executed for the creation of the Company and the joining of the
business entities of the two subsidiary banks. The Company recorded
an additional $443,000 provision for income tax in the fiscal year ended June
30, 2009, in response to the preliminary results of the IRS
audit. The Company anticipates that the tax benefit from the court
decision will be recognized in its statement of operations for the three-month
period ending March 31, 2011.
The court decision, which was signed by
Judge Robert P. Ruwe on February 3, 2011, states that the Company is entitled to
a refund of $403,706 plus interest. Tony D. Whitaker, in commenting
about the court decision, said “we have always been confident in the validity of
the deduction and are indeed thankful to have received a favorable decision from
the court.”
This
press release may contain statements that are forward-looking, as that term is
defined by the Private Securities Litigation Act of 1995 or the Securities and
Exchange Commission in its rules, regulations and releases. The
Company intends that such forward-looking statements be subject to the safe
harbors created thereby. All forward-looking statements are based on
current expectations regarding important risk factors including, but not limited
to, real estate values, the impact of interest rates on financing, changes in
general economic conditions, legislative and regulatory changes that adversely
affect the business of the Company and changes in the securities
markets. Accordingly, actual results may differ from those expressed
in the forward-looking statements, and the making of such statements should not
be regarded as a representation by the Company or any other person that results
expressed therein will be achieved.
Kentucky First Federal Bancorp is the
parent company of First Federal Savings and Loan Association, which operates one
banking office in Hazard, Kentucky and First Federal Savings Bank, which
operates three banking offices in Frankfort, Kentucky. Kentucky First
Federal Bancorp shares are traded on the Nasdaq National Market under the symbol
KFFB. At December 31, 2010, the Company had approximately 7,745,703
shares outstanding of which approximately 61.0% was held by First Federal
MHC.