KFFB » Topics » Our Operating Strategy

This excerpt taken from the KFFB 10-K filed Sep 28, 2007.

Our Operating Strategy

          Our mission is to operate and grow profitable, community-oriented financial institutions serving primarily retail customers in our market areas.  We plan to pursue a strategy of:

 

operating two community-oriented savings institutions, First Federal of Hazard, which serves customers in Perry and surrounding counties in eastern Kentucky, and First Federal of Frankfort, which serves customers primarily in Franklin County and surrounding counties in central Kentucky.  Each Bank emphasizes traditional thrift activities of accepting deposits and originating residential mortgage loans for portfolio;

 

 

 

 

increasing the yield on First Federal of Hazard’s assets by decreasing its reliance on low yielding government securities and reinvesting these assets into whole loans originated by First Federal of Frankfort, with First Federal of Frankfort retaining servicing on any loans sold.  The Banks have begun such sales and through June 30, 2007, First Federal of Hazard had purchased approximately $21.4 million in loans from First Federal of Frankfort;

 

 

 

 

pursuing larger borrowing relationships than would otherwise be available to our separate banks (because of federal restrictions on loans to one borrower) by utilizing the ability to sell loans and participations between the banks;

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continuing our historic heavy reliance on our deposit base to fund our lending and investment activities and to supplement deposits with Federal Home Loan Bank of Cincinnati (“FHLB”) advances when advantageous or necessary.  We expect our projected deposit mix to generally retain its existing composition of passbook, transaction and certificate of deposit accounts;

 

 

 

 

gradually pursuing opportunities to increase and diversify lending in our market areas;

 

 

 

 

applying conservative underwriting practices to maintain the high quality of our loan portfolios;

 

 

 

 

managing our net interest margin and interest rate risk; and

 

 

 

 

entertaining possibilities of expansion into other markets through branching or acquisition, if such possibilities are beneficial to the Company’s shareholders, provide a good fit within the Company’s mutual holding company framework and can be accomplished without undue encumbrance of the Company’s other operational areas.

This excerpt taken from the KFFB 10-K filed Sep 28, 2006.

Our Operating Strategy

          Our mission is to operate and grow profitable, community-oriented financial institutions serving primarily retail customers in our market areas.  We plan to pursue a strategy of:

 

operating two community-oriented savings institutions, First Federal of Hazard, which serves customers in Perry and surrounding counties in eastern Kentucky, and First Federal of Frankfort, which serves customers primarily in Franklin County and surrounding counties in central Kentucky.  Each Bank emphasizes traditional thrift activities of accepting deposits and originating residential mortgage loans for portfolio;

 

 

 

 

broadening and diversifying First Federal of Hazard’s lending activities by providing access to First Federal of Frankfort’s expertise in certain lending products, such as adjustable-rate mortgage loans and home equity loans;

 

 

 

 

increasing the yield on First Federal of Hazard’s assets by decreasing its reliance on low yielding government securities and reinvesting these assets into whole loans originated by First Federal of Frankfort, with First Federal of Frankfort retaining servicing on any loans sold.  The Banks have begun such sales and at June 30, 2006, First Federal of Hazard had purchased approximately $8.9 million in loans from First Federal of Frankfort;

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continuing our historic heavy reliance on our deposit base to fund our lending and investment activities and to supplement deposits with Federal Home Loan Bank of Cincinnati (“FHLB”) advances when advantageous or necessary.  We expect our projected deposit mix to generally retain its existing composition of passbook, transaction and certificate of deposit accounts;

 

 

 

 

gradually pursuing opportunities to increase and diversify lending in our market areas;

 

 

 

 

applying conservative underwriting practices to maintain the high quality of our loan portfolios;

 

 

 

 

managing our net interest margin and interest rate risk; and

 

 

 

 

entertaining possibilities of expansion into other markets through branching or acquisition, if such possibilities are beneficial to the Company’s shareholders, provide a good fit within the Company’s mutual holding company framework and can be accomplished without undue encumbrance of the Company’s other operational areas.

This excerpt taken from the KFFB 10-K filed Sep 28, 2005.

Our Operating Strategy

          Our mission is to operate and grow profitable, community-oriented financial institutions serving primarily retail customers in our market areas.  We plan to pursue a strategy of:

 

operating two independent, community-oriented savings institutions, First Federal of Hazard, which will serve customers in Perry and surrounding counties in eastern Kentucky, and First Federal of Frankfort, which will serve customers primarily in Franklin County, as well as Anderson, Woodford, Scott and Shelby Counties, in central Kentucky.  Each Bank intends to operate substantially in the same manner as it has operated in the past, emphasizing traditional thrift activities of accepting deposits and originating residential mortgage loans for portfolio;

 

 

 

 

broadening and diversifying First Federal of Hazard’s lending activities by providing access to First Federal of Frankfort’s expertise in certain lending products, such as adjustable-rate mortgage loans and home equity loans.  While no such programs have yet been effected, management is reviewing resources and strategies that will effect this implementation;

 

 

 

 

increasing the yield on First Federal of Hazard’s assets by decreasing its reliance on low yielding government securities and reinvesting these assets into whole loans originated by First Federal of Frankfort, with First Federal of Frankfort retaining servicing on any loans sold.  The Banks have begun such sales and at September 30, 2005, First Federal of Hazard had purchased approximately $1.5 million in loans from First Federal of Frankfort;

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continuing our historic heavy reliance on our low-costing deposit base to fund our lending and investment activities.  We expect our projected deposit mix to generally retain its existing composition of passbook and certificate of deposit accounts;

 

 

 

 

reducing First Federal of Frankfort’s reliance on third party borrowings through loan sales to First Federal of Hazard;

 

 

 

 

gradually pursuing opportunities to increase and diversify lending in our market areas;

 

 

 

 

applying conservative underwriting practices to maintain the high quality of our loan portfolios; and

 

 

 

 

managing our net interest margin and interest rate risk.

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