Kentucky First Buying CKF Bancorp for $10.8 Million

Kentucky First Federal Bancorp in Hazard, Ky., has is acquiring CKF Bancorp Inc. in Danville, Ky., in a deal that would expand its branch network into two new markets in its home state.

Based on Kentucky First's closing price of $6.40 per share Thursday, the deal is valued at about $10.8 million, or roughly 0.83 times the seller's book value, according to Tony Whitaker, Kentucky First's chairman and chief executive. The sale, announced late Thursday, is expected to close during the second or third quarter of 2012.

Kentucky First has $226 million of assets and four branches, one its hometown and three in Frankfort. CKF is the holding company for the $131 million-asset Central Kentucky Federal Savings Bank, which has a main office and a branch in Danville and another branch in Lancaster. Central Kentucky will operate under its current name as a division of Kentucky First's subsidiary, First Federal Savings Bank of Frankfort.

All of CKF's board members are expected to join the board of First Federal Savings Bank of Frankfort, and two CKF will join Kentucky First's board. All Central Kentucky employees will become employees of First Federal Savings Bank of Frankfort including Central Kentucky's chief executive, William H. Johnson, who will become president of the Danville-Lancaster region.

Kentucky First has not reported earnings for the quarter that ended Sept. 30. In August, it reported an income of $1.8 million, more than four times higher than a year earlier, for the quarter that ended June 30. Central Kentucky earned $87,000 in the second quarter, according to the Federal Deposit Insurance Corp.

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