Exhibit 99.1 Kentucky First Federal Bancorp Hazard, Kentucky, Frankfort, Kentucky, Danville, Kentucky and Lancaster, Kentucky For Immediate Release November 6, 2025 Contact: Don D. Jennings, President, or Tyler Eades, Vice President (502) 223-1638 216 West Main Street P.O. Box 535 Frankfort, KY 40602 Kentucky First Federal Bancorp Releases Earnings Kentucky First Federal Bancorp (Nasdaq: KFFB), the holding company (the "Company") for First Federal Savings and Loan Association of Hazard and First Federal Sav ...

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Core Viewpoint - Kentucky First Federal Bancorp has appointed R. Clay Hulette as the new CEO, subject to regulatory approval, aiming to leverage his extensive experience to enhance profitability and shareholder value [1][2]. Company Leadership Transition - R. Clay Hulette has been appointed as CEO of Kentucky First Federal Bancorp and President and CEO of First Federal Savings Bank of Kentucky, pending regulatory approval [1][2]. - Don D. Jennings will continue as President of the Company and Chairman of the Board of First Federal Savings Bank, while also taking on the role of Director of Operations [1][2]. Leadership Background - Clay Hulette previously served as CFO from March 2005 until his retirement in January 2024 and has 27 years of experience with First Federal Savings Bank, including roles as President and Frankfort Area President [2]. - His return is expected to strengthen the leadership team and improve the financial initiatives of the Company and the Banks [2]. Strategic Goals - The Board aims to enhance profitability, execute strategic initiatives, and increase shareholder value under the leadership of a seasoned team familiar with the Banks' operations and regulatory environment [2]. Company Overview - Kentucky First Federal Bancorp is the parent company of First Federal Savings and Loan Association of Hazard and First Federal Savings Bank of Kentucky, operating multiple banking offices across Kentucky [4]. - As of June 30, 2025, the Company had approximately 8,086,715 shares outstanding, with about 58.5% held by First Federal MHC [4].

[FORM 10-K Cover Page](index=1&type=section&id=FORM%2010-K) The cover page provides essential identifying information for the annual report on Form 10-K [INDEX](index=3&type=section&id=INDEX) This section serves as the table of contents for the entire annual report [PART I](index=4&type=section&id=PART%20I) This part details the company's business operations, risk factors, properties, and legal proceedings [Item 1. Business](index=4&type=section&id=Item%201.%20Business) Kentucky First Federal Bancorp operates two independent savings institutions, focusing on deposits and real estate-secured loans in Kentucky, subject to extensive regulation - **Total Assets**: **$371.2 million** as of June 30, 2025[17](index=17&type=chunk) - **Deposits**: **$277.6 million** as of June 30, 2025[17](index=17&type=chunk) - **Stockholders' Equity**: **$48.4 million** as of June 30, 2025[17](index=17&type=chunk) - The company operates First Federal of Hazard and First Federal of Kentucky as two independent, community-oriented savings institutions, following its incorporation in 2005 and subsequent acquisitions[14](index=14&type=chunk)[15](index=15&type=chunk) [Forward-Looking Statements](index=4&type=section&id=Forward-Looking%20Statements) This section identifies forward-looking statements and outlines inherent risks that could cause actual results to differ materially from projections - Forward-looking statements are identified by words like 'believe,' 'expect,' 'anticipate,' 'plan,' 'estimate,' 'intend,' and 'potential,' or future/conditional verbs such as 'should,' 'could,' or 'may'[12](index=12&type=chunk) - Actual results may materially differ due to risks including general economic conditions, real estate prices, interest rate environment, ability to increase earnings and core deposits, regulatory approvals for dividends, competitive conditions, inflation, demand for financial services, credit losses, employee retention, data security, litigation, and changes in law and regulations[12](index=12&type=chunk) [General Company Overview](index=4&type=section&id=General) Kentucky First Federal Bancorp, incorporated in 2005, operates two independent savings institutions, First Federal of Hazard and First Federal of Kentucky, regulated by the OCC and FDIC - Kentucky First Federal Bancorp was incorporated on March 2, 2005, following the reorganization of First Federal Savings and Loan Association of Hazard and the acquisition of Frankfort First Bancorp, Inc[14](index=14&type=chunk) - On December 31, 2012, Kentucky First Federal acquired CFK Bancorp, Inc., expanding its customer base in central Kentucky[15](index=15&type=chunk) Bank Financials (June 30, 2025) | Bank | Total Assets | Net Loans | Deposits | Total Capital | | :----------------------------- | :--------------------------- | :------------------------ | :----------------------- | :---------------------------- | | First Federal of Hazard | $85.8 million | $77.2 million | $59.5 million | $17.9 million | | First Federal of Kentucky | $286.1 million | $250.0 million | $219.4 million | $29.3 million | [Market Areas](index=5&type=section&id=Market%20Areas) First Federal of Hazard operates in economically distressed eastern Kentucky, while First Federal of Kentucky serves more affluent central Kentucky counties - First Federal of Hazard's market area in eastern Kentucky is economically distressed, with a median household income of **$46,572** and a July 2025 unemployment rate of **6.9%**, higher than state and national averages[22](index=22&type=chunk) First Federal of Kentucky Market Area Demographics | County (First Federal of Kentucky) | Population | Median Household Income | Unemployment Rate | | :--------------------------------- | :--------- | :---------------------- | :---------------- | | Franklin County | 51,913 | $66,095 | 4.4% | | Boyle County | 31,139 | $58,397 | 5.5% | | Garrard County | 17,916 | $61,034 | 5.0% | [Lending Activities](index=7&type=section&id=Lending%20Activities) The company's loan portfolio is primarily residential mortgages, with 83.6% of the total and 93.8% of these being adjustable-rate loans, and it implemented the CECL model for credit losses - Residential mortgage loans, including construction and multi-family, totaled **$276.2 million**, representing **83.6%** of the total loan portfolio at June 30, 2025[27](index=27&type=chunk) - Adjustable-rate residential mortgage loans constituted **$258.9 million**, or **93.8%**, of the Company's residential mortgage loan portfolio at June 30, 2025[28](index=28&type=chunk) Loan Portfolio Composition (June 30, 2025) | Loan Type (June 30, 2025) | Amount (in millions) | % of Total Loan Portfolio | | :------------------------ | :------------------- | :------------------------ | | Construction Loans | $9.3 | 2.8% | | Multi-Family Loans | $15.5 | 4.7% | | Nonresidential Loans | $31.7 | 9.6% | | Commercial Non-mortgage | $0.7 | 0.2% | | Consumer Loans | $16.3 | 5.0% | - Upon implementation of ASU 2016-13 (CECL model) at July 1, 2023, the Banks began utilizing a separate liability for anticipated credit losses on loan commitments, which totaled **$59,000** at June 30, 2025[46](index=46&type=chunk) [Investment Activities](index=10&type=section&id=Investment%20Activities) The company invests in low-risk liquid assets like mortgage-backed securities to maintain liquidity, manage interest rate risk, and generate returns - Investment objectives include providing an alternate source of low-risk investments, maintaining liquidity, diversifying investments, providing collateral, managing interest rate risk, and generating favorable returns[54](index=54&type=chunk) - At June 30, 2025, the investment portfolio consisted of mortgage-backed securities issued and guaranteed by Fannie Mae, Freddie Mac, and Ginnie Mae[53](index=53&type=chunk) [Bank Owned Life Insurance](index=10&type=section&id=Bank%20Owned%20Life%20Insurance) First Federal of Kentucky holds **$3.0 million** in BOLI policies to offset employee benefit costs, generating tax-exempt income, but faces risks from insurer failure and tax law changes - First Federal of Kentucky owns **$3.0 million** in Bank Owned Life Insurance (BOLI) policies as of June 30, 2025, to offset future non-salary employee benefit costs[55](index=55&type=chunk) - The income from BOLI policies is exempt from federal income taxes, and the cash value growth is recorded as other operating income[55](index=55&type=chunk) - Key risks include insurer failure, changes in tax laws, crediting rate not keeping pace with market rates, and potential regulatory prohibition of such plans[56](index=56&type=chunk) [Deposit Activities and Other Sources of Funds](index=11&type=section&id=Deposit%20Activities%20and%20Other%20Sources%20of%20Funds) The company primarily funds operations through deposits, loan repayments, and securities, supplementing with **$44.0 million** in brokered funds and FHLB borrowings - Major sources of funds include deposits, loan repayments, and maturities/redemptions/sales of investment and mortgage-backed securities[57](index=57&type=chunk) - The company began utilizing brokered funds in June 2023, with **$44.0 million** in such deposits at June 30, 2025[58](index=58&type=chunk) - First Federal of Hazard and First Federal of Kentucky borrow from the FHLB-Cincinnati to supplement investable funds and meet deposit withdrawal requirements[59](index=59&type=chunk) [Subsidiary Activities](index=11&type=section&id=Subsidiary%20Activities) Kentucky First Federal Bancorp's wholly-owned subsidiaries are First Federal of Hazard and First Federal of Kentucky, with authorized subsidiary investment limits based on assets - Kentucky First Federal Bancorp's wholly-owned subsidiaries are First Federal of Hazard and Frankfort First Bancorp, which owns First Federal of Kentucky[60](index=60&type=chunk) Authorized Subsidiary Investment (as of June 30, 2025) | Bank | Authorized Subsidiary Investment | | :----------------------------- | :--------------------------------------------------- | | First Federal of Hazard | Up to $1.7 million | | First Federal of Kentucky | Up to $5.0 million | [Competition](index=11&type=section&id=Competition) The company faces intense competition for deposits and loans from larger financial institutions, with competition expected to increase due to industry changes and consolidation - The company faces significant competition for deposits and loans from banks, credit unions, and other financial services companies, with larger competitors having greater resources[62](index=62&type=chunk) - Competition is expected to increase due to legislative, regulatory, and technological changes, and the continuing trend of consolidation in the financial services industry[62](index=62&type=chunk) Deposit Market Share (June 30, 2025) | Bank | Market Area | Deposit Market Share | | :----------------------------- | :---------- | :----------------------------------- | | First Federal of Hazard | Perry County | 7.2% | | First Federal of Kentucky | Franklin County | 8.2% | | First Federal of Kentucky | Boyle County | 8.2% | | First Federal of Kentucky | Garrard County | 17.5% | [Personnel](index=12&type=section&id=Personnel) As of June 30, 2025, the company employed 56 individuals, none of whom are unionized, maintaining a positive relationship with its workforce - At June 30, 2025, the company had **54 full-time** and **two part-time** employees[65](index=65&type=chunk) - No employees were represented by a collective bargaining unit, and the company believes its relationship with employees is good[65](index=65&type=chunk) [Regulation and Supervision](index=12&type=section&id=Regulation%20and%20Supervision) The company and its subsidiaries are extensively regulated by federal agencies, with First Federal of Kentucky currently under an OCC agreement and subject to Individual Minimum Capital Requirements - First Federal of Hazard and First Federal of Kentucky are subject to extensive regulation by the OCC and FDIC, while Kentucky First and First Federal MHC are supervised by the Federal Reserve Board[66](index=66&type=chunk) - The Dodd-Frank Act and the Economic Growth, Regulatory Relief, and Consumer Protection Act of 2018 (EGRRCPA) have significantly impacted the regulatory regime for financial institutions[67](index=67&type=chunk)[68](index=68&type=chunk) - First Federal of Kentucky entered a formal written agreement with the OCC on August 13, 2024, placing it in 'troubled condition' and imposing Individual Minimum Capital Requirements (IMCRs)[69](index=69&type=chunk) [Agreements with Regulators](index=13&type=section&id=Agreements%20with%20Regulators) First Federal of Kentucky is classified as in 'troubled condition' under an August 2024 OCC agreement, mandating specific capital ratios and corrective actions - First Federal of Kentucky entered a formal written agreement with the OCC on August 13, 2024, resulting in its classification as in 'troubled condition'[69](index=69&type=chunk) Individual Minimum Capital Requirements (IMCRs) | Individual Minimum Capital Requirements (IMCRs) | | :---------------------------------------------- | | Common Equity Tier 1 Capital Ratio: ≥ 9.0% | | Tier 1 Capital Ratio: ≥ 11.0% | | Total Capital Ratio: ≥ 12.0% | | Leverage Ratio: ≥ 9.0% | - Required actions include establishing a compliance committee, submitting revised strategic and succession plans, and adopting enhanced liquidity and interest rate risk management programs[71](index=71&type=chunk) [Regulation of Federal Savings Associations](index=14&type=section&id=Regulation%20of%20Federal%20Savings%20Associations) Federal savings associations are governed by federal laws and OCC regulations, including minimum capital standards and prompt corrective actions, with First Federal of Kentucky exceeding its higher IMCRs - Federal savings associations are subject to federal laws and OCC regulations governing business activities, including lending authority limits[72](index=72&type=chunk) Minimum Capital Standards (Effective Jan 1, 2015) | Minimum Capital Standards (Effective Jan 1, 2015) | | :---------------------------------------------- | | Tier 1 Leverage Ratio: 4.0% | | Common Equity Tier 1 Ratio: 4.5% | | Tier 1 Capital to Risk-Weighted Assets Ratio: 6.0% | | Total Capital to Risk-Weighted Assets Ratio: 8.0% | | Capital Conservation Buffer: 2.5% | - First Federal of Kentucky's capital levels at June 30, 2025, exceeded its IMCRs: common equity tier 1 (**16.83%**), tier 1 (**16.83%**), total capital (**16.83%**), and leverage ratio (**9.97%**)[77](index=77&type=chunk) - Both First Federal of Hazard and First Federal of Kentucky received a 'Satisfactory' rating in their most recent Community Reinvestment Act assessments[94](index=94&type=chunk) [Holding Company Regulation](index=18&type=section&id=Holding%20Company%20Regulation) Kentucky First and First Federal MHC are regulated by the Federal Reserve Board as savings and loan holding companies, exempt from consolidated capital requirements, and have suspended quarterly dividends - Kentucky First and First Federal MHC are regulated by the Federal Reserve Board as savings and loan holding companies[99](index=99&type=chunk) - Savings and loan holding companies with less than **$3.0 billion** in assets, such as Kentucky First, are exempt from consolidated capital requirements[105](index=105&type=chunk) - The company announced the suspension of quarterly dividends indefinitely on January 16, 2024, and First Federal MHC suspended efforts to seek member approval for dividend waivers[108](index=108&type=chunk) [Federal and State Taxation](index=22&type=section&id=Federal%20and%20State%20Taxation) The company is subject to a 21% federal income tax rate, with potential recapture of **$5.2 million** in bad debt reserves for First Federal of Kentucky, and is also subject to Kentucky corporate income tax - The federal statutory tax rate was **21%** for the fiscal years ended June 30, 2025 and 2024[112](index=112&type=chunk) - Approximately **$5.2 million** of First Federal of Kentucky's accumulated bad debt reserves would be recaptured into taxable income if 'non-dividend distributions' are made[114](index=114&type=chunk) - Effective January 1, 2021, the Savings and Loan Tax no longer applies to financial institutions in Kentucky, which are now subject to the corporate income tax[117](index=117&type=chunk) [Item 1A. Risk Factors](index=24&type=section&id=Item%201A.%20Risk%20Factors) The company faces significant risks, including interest rate fluctuations, lending activity exposures, liquidity challenges, regulatory compliance, and operational and holding company structure risks - Net interest income decreased by **$1.8 million (20.3%)** in the year ended June 30, 2024, compared to the prior fiscal year, but improved to **$8.3 million** in the year ended June 30, 2025, from **$6.9 million** in the prior year, primarily due to higher asset returns and declining cost of funds[119](index=119&type=chunk) - At June 30, 2025, **93.8%** of the residential real estate loan portfolio consisted of adjustable-rate loans, increasing default risk during rising interest rates[122](index=122&type=chunk) - The company had **$29.2 million** in available liquidity, including **$19.5 million** in cash and cash equivalents, and **$80.3 million** in off-balance sheet liquidity sources, including **$71.0 million** in FHLB-Cincinnati borrowing capacity, as of June 30, 2025[130](index=130&type=chunk) - The company announced the indefinite suspension of quarterly dividends on January 16, 2024, which could adversely impact the market price of its common stock[132](index=132&type=chunk) [Interest Rate Risk](index=24&type=section&id=Interest%20Rate%20Risk) Rising interest rates pose a significant risk by potentially reducing net interest income, decreasing loan demand, and impairing borrower repayment ability for adjustable-rate loans - Net interest income decreased **$1.8 million (20.3%)** in the year ended June 30, 2024, compared to the prior fiscal year, but improved to **$8.3 million** in the year ended June 30, 2025, from **$6.9 million** in the prior year, due to higher asset returns and declining cost of funds[119](index=119&type=chunk) - At June 30, 2025, accumulated other comprehensive loss, representing the decrease in fair value of available-for-sale securities due to rising interest rates, totaled **$145,000**, or **1.5%** of the securities portfolio[121](index=121&type=chunk) - **93.8%** of the residential real estate loan portfolio at June 30, 2025, consisted of adjustable-rate loans, increasing the risk of default if interest rates rise and borrower payments increase[122](index=122&type=chunk) [Risks Related to Our Lending Activities](index=25&type=section&id=Risks%20Related%20to%20Our%20Lending%20Activities) Lending activities face risks from inflation, adequacy of credit loss allowance, high concentration in real estate collateral, and volatility in mortgage banking revenue - Inflationary pressures are expected to remain elevated throughout 2025, potentially increasing costs for customers and making loan repayment more difficult[123](index=123&type=chunk) - Approximately **99.3%** of the loan portfolio at June 30, 2025, was collateralized by real estate, exposing the company to significant risk from real estate market disruptions[125](index=125&type=chunk) - Residential mortgage loans secured by one-to-four family real estate constituted **$275.3 million**, or **83.6%**, of the loan portfolio at June 30, 2025, making the company sensitive to regional and local economic conditions[126](index=126&type=chunk) - Non-interest income increased **$249,000 (99.2%)** to **$500,000** in the fiscal year ended June 30, 2025, primarily due to increased net gains on sales of loans of **$187,000**[128](index=128&type=chunk) [Liquidity Risk](index=26&type=section&id=Liquidity%20Risk) The company faces liquidity risk from potential deposit outflows, with **$37.1 million** in uninsured deposits, and has indefinitely suspended dividends, impacting stock price and future payments - At June 30, 2025, uninsured deposits were approximately **$37.1 million**, or **13.4%** of total deposits[130](index=130&type=chunk) Liquidity Metrics (June 30, 2025) | Liquidity Metric (June 30, 2025) | Amount (in millions) | | :------------------------------- | :------------------- | | Available Liquidity | $29.2 | | Cash and Cash Equivalents | $19.5 | | Off-Balance Sheet Liquidity Sources | $80.3 | | FHLB-Cincinnati Borrowing Capacity | $71.0 | - The company announced the indefinite suspension of quarterly dividends on January 16, 2024, which could adversely impact the market price of its common stock[132](index=132&type=chunk) - First Federal MHC suspended efforts to seek member approval to obtain the dividend waiver for periods after the third quarter of 2024, and prior regulatory approval has expired[135](index=135&type=chunk) [Risks Related to Our Business and Industry Generally](index=28&type=section&id=Risks%20Related%20to%20Our%20Business%20and%20Industry%20Generally) The company faces intense competition for loans and deposits from larger, more resourced financial institutions, which is expected to intensify due to industry changes and consolidation - The company faces intense competition for loans and deposits, which could reduce net interest income due to price competition[136](index=136&type=chunk) - Competition is expected to increase due to legislative, regulatory, and technological changes, and the continuing trend of consolidation in the financial services industry[136](index=136&type=chunk) [Risks Related to Laws and Regulations](index=28&type=section&id=Risks%20Related%20to%20Laws%20and%20Regulations) First Federal of Kentucky is under an OCC agreement with IMCRs, and the company is broadly affected by regulatory changes, compliance costs, and federal monetary and tax policies - First Federal of Kentucky is in 'troubled condition' due to a formal written agreement with the OCC, effective August 13, 2024, and is subject to IMCRs[137](index=137&type=chunk) First Federal of Kentucky Capital Ratios vs. IMCR Requirement (June 30, 2025) | First Federal of Kentucky Capital Ratios (June 30, 2025) | IMCR Requirement | | :------------------------------------------------------- | :--------------- | | Common Equity Tier 1 Capital Ratio: 16.83% | ≥ 9.0% | | Tier 1 Capital Ratio: 16.83% | ≥ 11.0% | | Total Capital Ratio: 16.83% | ≥ 12.0% | | Leverage Ratio: 9.97% | ≥ 9.0% | - Changes in tax laws, such as the Tax Cuts and Jobs Act and the 'One Big Beautiful Bill Act,' may adversely affect the market for residential properties and demand for mortgage loans[145](index=145&type=chunk)[146](index=146&type=chunk) - Federal law requires a holding company to act as a source of financial and managerial strength to its subsidiary banks, potentially requiring capital injections even when resources are limited[149](index=149&type=chunk) [Risks Related to Accounting Matters](index=32&type=section&id=Risks%20Related%20to%20Accounting%20Matters) The company's financial statements rely on significant management estimates, and changes in accounting standards can materially impact reported financial condition and operating results - Significant estimates and assumptions are made in evaluating the adequacy of the allowance for loan losses, the valuation of mortgage servicing rights, and the fair value of financial instruments[150](index=150&type=chunk) - Changes in accounting standards by bodies like the FASB and SEC can materially impact reported financial condition and results of operations, potentially retroactively[151](index=151&type=chunk) [Risks Related to Operational Matters](index=33&type=section&id=Risks%20Related%20to%20Operational%20Matters) The company faces operational risks from technology reliance, including cyber attacks, system failures, and third-party provider issues, necessitating continuous investment in security and personnel - The security of computer systems and networks is vulnerable to breaches, unauthorized access, misuse, computer viruses, and cyber attacks, which could jeopardize confidential information and disrupt operations[152](index=152&type=chunk) - Outsourcing data processing and other operational functions to third-party providers introduces risks if these providers encounter difficulties or communication issues arise[154](index=154&type=chunk) - Failure to keep pace with technological advances and invest in new technology could materially adversely impact the business and financial condition[156](index=156&type=chunk) [Risks Related to Our Holding Company Structure](index=34&type=section&id=Risks%20Related%20to%20Our%20Holding%20Company%20Structure) First Federal MHC's majority ownership grants voting control, potentially conflicting with other stockholders' interests, and the company's ability to pay dividends is constrained by regulatory approvals and MHC waivers - First Federal MHC owns a majority of the common stock and can exercise voting control, potentially preventing transactions favorable to other stockholders[157](index=157&type=chunk) - The ability to pay future dividends depends on the Banks' capital distributions to Kentucky First Federal and First Federal MHC's waiver of dividends[158](index=158&type=chunk) - The company announced the indefinite suspension of dividend payments on January 16, 2024[163](index=163&type=chunk) [Item 1B. Unresolved Staff Comments](index=36&type=section&id=Item%201B.%20Unresolved%20Staff%20Comments) The company has no unresolved staff comments from the SEC - There are no unresolved staff comments[165](index=165&type=chunk) [Item 1C. Cybersecurity](index=36&type=section&id=Item%201C.%20Cybersecurity) The company maintains a comprehensive cybersecurity program with Board oversight, risk management, continuous investment, and an Incident Response Plan, reporting no material losses in FY2025 - The company employs comprehensive methodologies for risk assessment, identifying and evaluating potential cybersecurity threats and vulnerabilities[167](index=167&type=chunk) - An Incident Response Plan is in place to guide actions for real and suspected information security incidents, with material threats escalated to the Incident Response Team[169](index=169&type=chunk) - The company has not experienced any material losses relating to cybersecurity threats or incidents for the year ended June 30, 2025[172](index=172&type=chunk) - The Board of Directors has oversight responsibilities for cybersecurity risk management, and the Information Security Officer (ISO) reports directly to the CEO and provides regular briefings to the Board and Audit Committee[173](index=173&type=chunk)[175](index=175&type=chunk)[177](index=177&type=chunk) [Cybersecurity Risk Management and Strategy](index=36&type=section&id=Cybersecurity%20Risk%20Management%20and%20Strategy) The company safeguards information and data through comprehensive risk assessments, continuous security investments, end-user training, and enhanced monitoring - The company regards information and data as valuable assets and has implemented safeguards to protect their integrity, availability, and privacy[166](index=166&type=chunk) - Comprehensive methodologies are used for risk assessment, including regular examinations of emerging threats, penetration tests, vulnerability scanning, and analysis of industry-specific risks[167](index=167&type=chunk) - Investments in information technology security are expanding, focusing on end-user training, layered defenses, critical asset protection, and strengthening monitoring and alerting[168](index=168&type=chunk) [Integration into Overall Risk Management System](index=36&type=section&id=Integration%20into%20Overall%20Risk%20Management%20System) Cybersecurity is integrated into the company's overall risk management through comprehensive threat identification, an Incident Response Plan, and regular tabletop exercises - The company employs comprehensive methodologies for risk assessment, diligently identifying and evaluating potential cybersecurity threats and vulnerabilities[167](index=167&type=chunk) - An Incident Response Plan guides actions for real and suspected information security incidents, including Distributed Denial of Service attacks, Corporate Account Takeover schemes, or ransomware[169](index=169&type=chunk) - Tabletop exercises are held regularly at senior and executive management levels to validate roles, responsibilities, and response protocols for cybersecurity threats[170](index=170&type=chunk) [Third-party Access](index=36&type=section&id=Third-party%20Access) The company manages third-party cybersecurity risks through a dedicated program, assigning risk ratings to vendors and contractually requiring appropriate security measures - The company has a fully integrated third-party risk management program to identify, assess, monitor, and mitigate cybersecurity risks associated with vendors[171](index=171&type=chunk) - Risk ratings are assigned to vendors based on their access to networks, systems, and confidential information[171](index=171&type=chunk) - Third parties with access to company systems or customer data must have appropriate security measures and agree by contract to manage their cybersecurity risks[171](index=171&type=chunk) [Material Cybersecurity Threat Risks](index=36&type=section&id=Material%20Cybersecurity%20Threat%20Risks) The company reported no material losses from cyber threats in FY2025 and is unaware of any risks likely to materially affect its business, but acknowledges that absolute security cannot be guaranteed - The company has not experienced any material losses relating to cybersecurity threats or incidents for the year ended June 30, 2025[172](index=172&type=chunk) - The company is not aware of any risks from cybersecurity threats that have materially affected or are reasonably likely to materially affect its business strategy, results of operations, or financial condition[172](index=172&type=chunk) - Despite a robust cybersecurity program, absolute surety against vulnerabilities or incidents cannot be provided, and future incidents could harm the business, reputation, or lead to regulatory actions or litigation[172](index=172&type=chunk) [Cybersecurity Governance](index=37&type=section&id=Cybersecurity%20Governance) The Board of Directors oversees cybersecurity risk management, with the ISO reporting directly to the CEO and regularly informing the Board and Audit Committee on risks and initiatives - The Board of Directors is responsible for the oversight of cybersecurity risk management, with members possessing expertise in risk management, technology, and finance[174](index=174&type=chunk) - The Information Security Officer (ISO) reports directly to the CEO and regularly informs the Board and Audit Committee on cybersecurity risks, initiatives, incidents, and compliance[175](index=175&type=chunk)[177](index=177&type=chunk) - The Board actively participates in strategic decisions related to cybersecurity, offering guidance and approval for major initiatives[176](index=176&type=chunk) [Item 2. Properties](index=38&type=section&id=Item%202.%20Properties) The company operates through seven owned offices across Kentucky, with a total net book value of premises and equipment at **$4.2 million** as of June 30, 2025 - The company conducts its business through seven owned offices[181](index=181&type=chunk) Office Locations and Details (June 30, 2025) | Office Location | Year Opened/Acquired | Ownership | Net Book Value (in thousands) | Approximate Square Footage | | :-------------------------------- | :------------------- | :-------- | :------------------------------------------- | :------------------------- | | First Federal of Hazard Main Office: 655 Main Street, Hazard, Kentucky 41701 | 2016 | Owned | $630 | 5,600 | | First Federal of Kentucky Main Office: 216 West Main Street, Frankfort, Kentucky 40601 | 2005 | Owned | $722 | 14,000 | | First Federal of Kentucky: 194 Versailles Road, Frankfort, Kentucky 40601 | 2015 | Owned | $748 | 2,700 | | First Federal of Kentucky: 1220 US 127 South, Frankfort, Kentucky 40601 | 2005 | Owned | $404 | 2,480 | | First Federal of Kentucky: 340 West Main Street, Danville, Kentucky 40422 | 2012 | Owned | $476 | 8,700 | | First Federal of Kentucky: 120 Skywatch Drive, Danville, Kentucky 40422 | 2012 | Owned | $627 | 2,300 | | First Federal of Kentucky: 208 Lexington Street, Lancaster, Kentucky 40444 | 2012 | Owned | $360 | 4,300 | - The net book value of the company's investment in premises and equipment was **$4.2 million** at June 30, 2025[182](index=182&type=chunk) [Item 3. Legal Proceedings](index=38&type=section&id=Item%203.%20Legal%20Proceedings) The company is not currently involved in any pending legal proceedings expected to have a material adverse effect on its financial condition or operations - The company is not a party to any pending legal proceedings that are believed to have a material adverse effect on its financial condition, results of operations, or cash flows[183](index=183&type=chunk) [Item 4. Mine Safety Disclosures](index=38&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to the company's operations - Mine Safety Disclosures are not applicable[184](index=184&type=chunk) [PART II](index=39&type=section&id=PART%20II) This part covers market information for common equity, financial statements, and internal controls [Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities](index=39&type=section&id=Item%205.%20Market%20for%20Registrant's%20Common%20Equity%2C%20Related%20Stockholder%20Matters%20and%20Issuer%20Purchases%20of%20Equity%20Securities) The company did not repurchase any equity securities in FY2024 or FY2025 and has no repurchase plan, with other information incorporated by reference - No stock was purchased in the fiscal years ended June 30, 2024 and 2025[187](index=187&type=chunk) - There is no stock repurchase plan in place as of June 30, 2025[187](index=187&type=chunk) - The company repurchased no equity securities registered under the Securities Exchange Act of 1934 during any quarter of the fiscal year ended June 30, 2025[189](index=189&type=chunk) [Item 6. [Reserved]](index=40&type=section&id=Item%206.%20%5BReserved%5D) This item is reserved and contains no information [Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=40&type=section&id=Item%207.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Information for Management's Discussion and Analysis of Financial Condition and Results of Operations is incorporated by reference from the Annual Report to Stockholders - Information for Management's Discussion and Analysis of Financial Condition and Results of Operations is incorporated by reference from the Annual Report to Stockholders[190](index=190&type=chunk) [Item 7A. Quantitative and Qualitative Disclosures About Market Risk](index=40&type=section&id=Item%207A.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) This item is not applicable to the company as it qualifies as a smaller reporting company - This item is not applicable, as the Company is a smaller reporting company[191](index=191&type=chunk) [Item 8. Financial Statements and Supplementary Data](index=40&type=section&id=Item%208.%20Financial%20Statements%20and%20Supplementary%20Data) The Consolidated Financial Statements, Notes, Independent Auditor's Report, and Selected Financial Data are incorporated by reference from the Annual Report to Stockholders - The Consolidated Financial Statements, Notes to Consolidated Financial Statements, Report of Independent Registered Public Accounting Firm and Selected Financial Data are incorporated by reference from the Annual Report to Stockholders[192](index=192&type=chunk) [Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure](index=40&type=section&id=Item%209.%20Changes%20in%20and%20Disagreements%20with%20Accountants%20on%20Accounting%20and%20Financial%20Disclosure) There have been no changes in or disagreements with accountants regarding accounting and financial disclosure - There are no changes in and disagreements with accountants on accounting and financial disclosure[193](index=193&type=chunk) [Item 9A. Controls and Procedures](index=40&type=section&id=Item%209A.%20Controls%20and%20Procedures) Management concluded that disclosure controls and internal control over financial reporting were effective as of June 30, 2025, with no material changes during the quarter - The company's disclosure controls and procedures were evaluated and concluded to be effective as of June 30, 2025[194](index=194&type=chunk) - Management assessed the effectiveness of the company's internal control over financial reporting as of June 30, 2025, based on the COSO 2013 framework, and concluded it was effective[200](index=200&type=chunk) - No material changes in internal control over financial reporting occurred during the quarter ended June 30, 2025[202](index=202&type=chunk) [Disclosure Controls and Procedures](index=40&type=section&id=Disclosure%20Controls%20and%20Procedures) The company's principal executive and financial officers concluded that disclosure controls and procedures were effective as of June 30, 2025, ensuring timely and accurate reporting - The company's principal executive officer and principal financial officer concluded that disclosure controls and procedures were effective as of June 30, 2025[194](index=194&type=chunk) [Internal Control Over Financial Reporting](index=40&type=section&id=Internal%20Control%20Over%20Financial%20Reporting) Management affirmed the effectiveness of internal control over financial reporting as of June 30, 2025, based on the COSO 2013 framework, with no auditor attestation due to filer status - Management is responsible for establishing and maintaining adequate internal control over financial reporting[199](index=199&type=chunk) - Management assessed the effectiveness of internal control over financial reporting as of June 30, 2025, based on COSO 2013, and concluded it was effective[200](index=200&type=chunk) - The report does not include an attestation report from the public accounting firm due to the company's exemption as a non-accelerated filer[201](index=201&type=chunk) [Changes to Internal Control Over Financial Reporting](index=41&type=section&id=Changes%20to%20Internal%20Control%20Over%20Financial%20Reporting) There were no material changes to the company's internal control over financial reporting during the quarter ended June 30, 2025 - There were no changes in internal control over financial reporting during the quarter ended June 30, 2025, that materially affected or are reasonably likely to materially affect it[202](index=202&type=chunk) [Item 9B. Other Information](index=41&type=section&id=Item%209B.%20Other%20Information) No director or officer adopted or terminated any Rule 10b5-1 or non-Rule 10b-5 trading arrangements during the three months ended June 30, 2025 - No director or officer adopted or terminated any Rule 10b5-1 trading arrangement or non-Rule 10b-5 trading arrangement during the three months ended June 30, 2025[203](index=203&type=chunk) [Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections](index=41&type=section&id=Item%209C.%20Disclosure%20Regarding%20Foreign%20Jurisdictions%20that%20Prevent%20Inspections) This item is not applicable to the company - Disclosure regarding foreign jurisdictions that prevent inspections is not applicable[204](index=204&type=chunk) [PART III](index=42&type=section&id=PART%20III) This part provides information on directors, executive compensation, security ownership, related transactions, and principal accountant fees [Item 10. Directors, Executive Officers and Corporate Governance](index=42&type=section&id=Item%2010.%20Directors%2C%20Executive%20Officers%20and%20Corporate%20Governance) Information on directors, executive officers, corporate governance, and ethics policies is incorporated by reference from the 2025 Annual Meeting of Stockholders Proxy Statement - Information on Directors, Executive Officers, and Corporate Governance is incorporated by reference from the 2025 Annual Meeting of Stockholders Proxy Statement[207](index=207&type=chunk)[208](index=208&type=chunk)[209](index=209&type=chunk) - The company has adopted a Code of Ethics and Business Conduct applicable to all directors, officers, and employees[211](index=211&type=chunk) - Insider trading policies and procedures have been adopted to promote compliance with insider trading laws, rules, and regulations[212](index=212&type=chunk) [Item 11. Executive Compensation](index=42&type=section&id=Item%2011.%20Executive%20Compensation) Information regarding executive compensation is incorporated by reference from the definitive proxy statement - Information on Executive Compensation is incorporated by reference from the Proxy Statement[213](index=213&type=chunk) [Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters](index=43&type=section&id=Item%2012.%20Security%20Ownership%20of%20Certain%20Beneficial%20Owners%20and%20Management%20and%20Related%20Stockholder%20Matters) Information on security ownership and changes in control is incorporated by reference from the proxy statement, with no outstanding equity compensation options as of June 30, 2025 - Information on Security Ownership of Certain Beneficial Owners and Management is incorporated by reference to the 'Stock Ownership' section in the Proxy Statement[219](index=219&type=chunk) - Management knows of no arrangements that may result in a change in control of the company[219](index=219&type=chunk) Equity Compensation Plans (as of June 30, 2025) | Equity Compensation Plans (as of June 30, 2025) | Number of securities to be issued upon exercise of outstanding options, warrants and rights | Weighted average exercise price of outstanding options, warrants and rights | Number of securities remaining available for future issuance under equity compensation plans (excluding securities reflected in column (a)) | | :---------------------------------------------- | :------------------------------------------------------------------------ | :------------------------------------------------------------------------ | :------------------------------------------------------------------------------------------------------------------------------------------ | | Equity compensation plans approved by security holders | — | — | — | | Equity compensation plans not approved by security holders | — | — | — | | Total | — | — | — | [Item 13. Certain Relationships and Related Transactions, and Director Independence](index=43&type=section&id=Item%2013.%20Certain%20Relationships%20and%20Related%20Transactions%2C%20and%20Director%20Independence) Information regarding certain relationships, related transactions, and director independence is incorporated by reference from the proxy statement - Information on Certain Relationships and Related Transactions and Director Independence is incorporated by reference from the Proxy Statement[216](index=216&type=chunk)[217](index=217&type=chunk) [Item 14. Principal Accountant Fees and Services](index=43&type=section&id=Item%2014.%20Principal%20Accountant%20Fees%20and%20Services) Information regarding principal accountant fees and services is incorporated by reference from the proxy statement - Information on Principal Accountant Fees and Services is incorporated by reference from the 'Audit Related Matters' section in the Proxy Statement[218](index=218&type=chunk) [PART IV](index=44&type=section&id=PART%20IV) This part includes exhibits, financial statement schedules, and the Form 10-K summary [Item 15. Exhibits and Financial Statement Schedules](index=44&type=section&id=Item%2015.%20Exhibits%20and%20Financial%20Statement%20Schedules) This section lists consolidated financial statements, financial statement schedules, and exhibits filed as part of the Annual Report on Form 10-K - The consolidated financial statements are incorporated by reference from Item 8[221](index=221&type=chunk) - All financial statement schedules are omitted because conditions for their requirement are absent or the information is included in the consolidated financial statements and related notes[221](index=221&type=chunk) - A list of exhibits filed as part of this Annual Report on Form 10-K is provided, including corporate documents, employment agreements, and regulatory filings[222](index=222&type=chunk)[223](index=223&type=chunk) [Item 16. Form 10-K Summary](index=45&type=section&id=Item%2016.%20Form%2010-K%20Summary) This item is not applicable to the company - Form 10-K Summary is not applicable[224](index=224&type=chunk) [SIGNATURES](index=47&type=section&id=SIGNATURES) This section contains the required signatures of the company's authorized officers

[Executive Summary and Financial Performance](index=1&type=section&id=Executive%20Summary%20and%20Financial%20Performance) [Net Income and EPS Overview](index=1&type=section&id=Net%20Income%20and%20EPS%20Overview) Kentucky First Federal Bancorp reported net income for Q2 and FY2025, reversing prior-year losses, primarily due to the absence of a goodwill impairment charge and improved net interest income Net Income (Loss) and Diluted EPS | Period Ended June 30, | 2025 Net Income (Loss) | 2024 Net Income (Loss) | Change ($) | 2025 Diluted EPS | 2024 Diluted EPS | Change (EPS) | | :-------------------- | :--------------------- | :--------------------- | :--------- | :--------------- | :--------------- | :----------- | | Three Months | $176,000 | $(1.1) million | $1.3 million | $0.02 | $(0.13) | $0.15 | | Twelve Months | $181,000 | $(1.7) million | $1.9 million | $0.02 | $(0.21) | $0.23 | [Key Drivers of Earnings Improvement](index=1&type=section&id=Key%20Drivers%20of%20Earnings%20Improvement) Earnings improved due to no prior-year goodwill impairment, significant net interest income growth, and higher non-interest income, partially offset by increased non-interest expenses - The increase in net earnings for the quarter ended June 30, 2025, was primarily attributable to the lack of a goodwill impairment charge of **$947,000**, which had been recorded in the prior year. This charge represented **100% of previously reported goodwill** and had no impact on cash flows, liquidity, or key capital ratios[3](index=3&type=chunk) Net Interest Income Performance (Three Months Ended June 30) | Metric | 2025 | 2024 | Change ($) | Change (%) | | :---------------------- | :--------------- | :--------------- | :--------- | :--------- | | Net Interest Income | $2.3 million | $1.9 million | $401,000 | 21.1% | | Interest Income | $5.0 million | $4.443 million | $545,000 | 12.3% | | Interest Expense | $2.7 million | $2.541 million | $144,000 | 5.7% | | Average Rate on Assets (YoY) | 5.25% | - | +63 bps | - | | Average Rate on Liabilities (YoY) | 3.47% | - | +35 bps | - | | Net Interest Margin (QoQ) | 2.28% | - | +29 bps | - | Non-Interest Income and Expense Changes (Three Months Ended June 30) | Metric | 2025 | 2024 | Change ($) | Change (%) | | :---------------------- | :--------------- | :--------------- | :--------- | :--------- | | Non-Interest Income | $111,000 | $52,000 | $59,000 | 113.5% | | Net Gains on Sales of Loans | +$39,000 | - | - | - | | Non-Interest Expense (excl. goodwill impairment) | $2,173,000 | $2,085,000 | $88,000 | 4.2% | | Data Processing Fees | +$102,000 | - | - | - | | Outside Service Fees | -$33,000 | - | - | - | Income Tax Expense (Three Months Ended June 30) | Period Ended June 30, | 2025 Income Tax Expense | 2024 Income Tax Benefit | Change ($) | | :-------------------- | :---------------------- | :---------------------- | :--------- | | Three Months | $62,000 | $(38,000) | $100,000 | [Financial Position and Capital](index=1&type=section&id=Financial%20Position%20and%20Capital) [Balance Sheet Overview](index=1&type=section&id=Balance%20Sheet%20Overview) Total assets slightly decreased from reduced net loans, while total liabilities decreased due to lower FHLB advances, partially offset by increased deposits Key Balance Sheet Changes (YoY) | Metric | June 30, 2025 | June 30, 2024 | Change ($) | Change (%) | | :---------------------- | :--------------- | :--------------- | :--------------- | :--------- | | Total Assets | $371.2 million | $375.0 million | $(3.8) million | (1.0)% | | Loans, net | $327.248 million | $333.025 million | $(5.8) million | (1.7)% | | Cash and Cash Equivalents | $19.480 million | $18.287 million | $1.2 million | 6.5% | | Total Liabilities | $322.842 million | $326.971 million | $(4.1) million | (1.3)% | | FHLB Advances | $42.760 million | $68.988 million | $(26.2) million | (38.0)% | | Deposits | $277.563 million | $256.139 million | $21.4 million | 8.4% | [Shareholders' Equity and Book Value](index=2&type=section&id=Shareholders%27%20Equity%20and%20Book%20Value) Shareholders' equity and book value per share increased, driven by reduced accumulated other comprehensive loss and positive net earnings Shareholders' Equity and Book Value (YoY) | Metric | June 30, 2025 | June 30, 2024 | Change ($) | Change (%) | | :---------------------- | :------------ | :------------ | :--------- | :--------- | | Shareholders' Equity | $48.369 million | $47.997 million | $372,000 | 0.8% | | Book Value Per Share | $5.98 | $5.94 | $0.04 | 0.67% | - The increase in shareholders' equity was primarily associated with a **$191,000 decrease in accumulated other comprehensive loss**, as unrealized losses on the investment portfolio decreased, combined with net earnings for the period[10](index=10&type=chunk) [Company Information and Disclosures](index=2&type=section&id=Company%20Information%20and%20Disclosures) [About Kentucky First Federal Bancorp](index=2&type=section&id=About%20Kentucky%20First%20Federal%20Bancorp) Kentucky First Federal Bancorp, parent to two federal savings institutions, operates multiple Kentucky banking offices, with shares publicly traded on Nasdaq - Kentucky First Federal Bancorp (Nasdaq: KFFB) is the holding company for First Federal Savings and Loan Association of Hazard (one office in Hazard, KY) and First Federal Savings Bank of Kentucky (three offices in Frankfort, KY, two in Danville, KY, and one in Lancaster, KY)[2](index=2&type=chunk)[12](index=12&type=chunk) Shares Outstanding and Ownership (June 30, 2025) | Metric | Value | | :---------------------- | :------------ | | Shares Outstanding | 8,086,715 | | Held by First Federal MHC | Approximately 58.5% | [Forward-Looking Statements](index=2&type=section&id=Forward-Looking%20Statements) This disclaimer identifies forward-looking statements and outlines risks that could cause actual results to differ, such as economic conditions, interest rates, and regulatory changes - The press release contains forward-looking statements, identified by words like 'believe,' 'expect,' 'anticipate,' and 'plan,' which are subject to safe harbors created by the Private Securities Litigation Act of 1995[11](index=11&type=chunk) - Key risks and uncertainties include general economic conditions, real estate prices, the interest rate environment, ability to execute strategy, dividend payment ability, competitive conditions, inflation, and changes in law or regulations[11](index=11&type=chunk) [Condensed Financial Statements](index=3&type=section&id=Condensed%20Financial%20Statements) [Condensed Consolidated Balance Sheets](index=3&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) This table presents condensed assets, liabilities, and shareholders' equity as of June 30, 2025, and June 30, 2024, detailing key financial position changes Condensed Consolidated Balance Sheets (In thousands) | | June 30, 2025 (Unaudited) | June 30, 2024 | | :--- | :--- | :--- | | **ASSETS** | | | | Cash and cash equivalents | $19,480 | $18,287 | | Investment securities | 9,928 | 9,861 | | Loans available-for sale | 877 | 110 | | Loans, net | 327,248 | 333,025 | | Real estate acquired through foreclosure | - | 10 | | Other assets | 13,678 | 13,675 | | **Total assets** | **$371,211** | **$374,968** | | **LIABILITIES AND SHAREHOLDERS' EQUITY** | | | | Deposits | $277,563 | $256,139 | | FHLB advances | 42,760 | 68,988 | | Other liabilities | 2,519 | 1,844 | | **Total liabilities** | **322,842** | **326,971** | | Shareholders' equity | 48,369 | 47,997 | | **Total liabilities and shareholders' equity** | **$371,211** | **$374,968** | | Book value per share | $5.98 | $5.94 | | Tangible book value per share | $5.98 | $5.94 | [Condensed Consolidated Statements of Income (Loss)](index=3&type=section&id=Condensed%20Consolidated%20Statements%20of%20Income%20%28Loss%29) This table presents condensed consolidated income (loss) statements for the three and twelve months ended June 30, 2025, and June 30, 2024, detailing revenue, expenses, and net income (loss) Condensed Consolidated Statements of Income (Loss) (In thousands) | | Twelve months ended June 30, 2025 (Unaudited) | Twelve months ended June 30, 2024 | Three months ended June 30, 2025 (Unaudited) | Three months ended June 30, 2024 | | :--- | :--- | :--- | :--- | :--- | | Interest income | $19,237 | $16,277 | $4,988 | $4,443 | | Interest expense | 10,896 | 9,283 | 2,685 | 2,541 | | Net interest income | 8,341 | 6,994 | 2,303 | 1,902 | | Provision for (recovery of) credit losses | 39 | 24 | 3 | 37 | | Non-interest income | 500 | 251 | 111 | 52 | | Non-interest expense | 8,564 | 9,181 | 2,173 | 3,032 | | Income (loss) before income taxes | 238 | (1,960) | 238 | (1,115) | | Income taxes | 57 | (239) | 62 | (38) | | **Net income (loss)** | **$181** | **$(1,721)** | **$176** | **$(1,077)** | | Earnings per share: Basic and diluted | $0.02 | $(0.21) | $0.02 | $(0.13) | | Weighted average outstanding shares: Basic and diluted | 8,098,715 | 8,098,715 | 8,098,715 | 8,098,715 |

Core Viewpoint - Kentucky First Federal Bancorp reported a significant turnaround in net income for the quarter and year ended June 30, 2025, achieving net income of $176,000 for the quarter and $181,000 for the year, compared to net losses in the previous year [1][14]. Financial Performance - The net income for the quarter increased by $1.3 million from a net loss of $1.1 million in the same quarter of 2024, while the annual net income improved by $1.9 million from a net loss of $1.7 million [1][14]. - The increase in net earnings for the quarter was primarily due to the absence of a goodwill impairment charge of $947,000 recorded in the previous year [2]. - Net interest income rose by $401,000 or 21.1% to $2.3 million, driven by a $545,000 or 12.3% increase in interest income, which outpaced a $144,000 or 5.7% rise in interest expense [3][4]. - Non-interest income surged by $59,000 or 113.5% to $111,000, largely due to increased net gains on sales of loans, reflecting a growing demand for fixed-rate secondary market loans [5]. Balance Sheet Highlights - As of June 30, 2025, total assets decreased by $3.8 million or 1.0% to $371.2 million, primarily due to a $5.8 million or 1.7% decrease in loans [8][13]. - Total liabilities decreased by $4.1 million or 1.3% to $322.8 million, with a notable reduction in FHLB advances by $26.2 million or 38.0% [8][13]. - Shareholders' equity increased by $372,000 or 0.8% to $48.4 million, attributed to a decrease in accumulated other comprehensive loss and net earnings for the period [9][13]. Earnings Metrics - The book value per share was reported at $5.98, reflecting a slight increase from $5.94 in the previous year [9][13]. - The average rate earned on interest-earning assets increased by 63 basis points to 5.25%, contributing to the rise in interest income [4].

PART I FINANCIAL INFORMATION [ITEM 1: Financial Statements](index=4&type=section&id=ITEM%201%3A%20Financial%20Statements) This section presents the unaudited condensed consolidated financial statements, including balance sheets, statements of operations, comprehensive income, changes in shareholders' equity, and cash flows, highlighting a net income of **$5 thousand** for the nine-month period and total asset growth to **$380.7 million** [Condensed Consolidated Balance Sheets](index=4&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Total assets increased by **1.5% to $380.7 million**, driven by a **$9.5 million** rise in cash, while liabilities grew due to a **$21.2 million** increase in deposits Condensed Consolidated Balance Sheet Highlights (in thousands) | Account | March 31, 2025 | June 30, 2024 | | :--- | :--- | :--- | | **Total Assets** | **$380,737** | **$374,968** | | Cash and cash equivalents | $27,753 | $18,287 | | Loans, net | $330,551 | $333,025 | | **Total Liabilities** | **$332,585** | **$326,971** | | Deposits | $277,386 | $256,139 | | Federal Home Loan Bank advances | $53,427 | $68,988 | | **Total Shareholders' Equity** | **$48,152** | **$47,997** | [Condensed Consolidated Statements of Operations](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) The company reported a net income of **$5 thousand** for the nine months ended March 31, 2025, a significant turnaround from a **$643 thousand** net loss in the prior year Key Operating Results (in thousands, except per share data) | Metric | Nine Months Ended Mar 31, 2025 | Nine Months Ended Mar 31, 2024 | Three Months Ended Mar 31, 2025 | Three Months Ended Mar 31, 2024 | | :--- | :--- | :--- | :--- | :--- | | Net Interest Income | $6,038 | $5,092 | $2,131 | $1,765 | | Provision for credit losses | $36 | $(13) | $21 | $(28) | | Total Non-interest Income | $389 | $199 | $81 | $78 | | Total Non-interest Expense | $6,392 | $6,147 | $2,176 | $2,016 | | **Net Income (Loss)** | **$5** | **$(643)** | **$7** | **$(107)** | | **EPS (Basic and diluted)** | **$0.00** | **$(0.08)** | **$0.00** | **$(0.01)** | [Condensed Consolidated Statements of Comprehensive Income (Loss)](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Comprehensive%20Income%20%28Loss%29) Comprehensive income for the nine months ended March 31, 2025, was **$155 thousand**, a significant improvement from a **$612 thousand** comprehensive loss in the prior year Comprehensive Income (Loss) Summary (in thousands) | Component | Nine Months Ended Mar 31, 2025 | Nine Months Ended Mar 31, 2024 | Three Months Ended Mar 31, 2025 | Three Months Ended Mar 31, 2024 | | :--- | :--- | :--- | :--- | :--- | | Net income (loss) | $5 | $(643) | $7 | $(107) | | Other comprehensive income (loss), net of tax | $150 | $31 | $90 | $(62) | | **Comprehensive income (loss)** | **$155** | **$(612)** | **$97** | **$(169)** | [Consolidated Statements of Changes in Shareholders' Equity](index=7&type=section&id=Consolidated%20Statements%20of%20Changes%20in%20Shareholders%27%20Equity) Shareholders' equity increased slightly to **$48.2 million** at March 31, 2025, driven by net income and other comprehensive income, with no dividends paid - Total shareholders' equity increased to **$48.15 million** at March 31, 2025, from **$48.00 million** at June 30, 2024, primarily due to net income and other comprehensive income[14](index=14&type=chunk) - No cash dividends were paid during the nine months ended March 31, 2025, whereas **$671 thousand ($0.20 per share)** was paid in the comparable period of the prior year[15](index=15&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=9&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Net cash and cash equivalents increased by **$9.5 million**, primarily driven by cash provided from financing and investing activities, with minimal cash used in operations Cash Flow Summary (in thousands) | Activity | Nine Months Ended Mar 31, 2025 | Nine Months Ended Mar 31, 2024 | | :--- | :--- | :--- | | Net cash used in operating activities | $(115) | $(1,268) | | Net cash provided by (used in) investing activities | $4,256 | $(12,712) | | Net cash provided by financing activities | $5,325 | $21,236 | | **Net increase in cash and cash equivalents** | **$9,466** | **$7,256** | [Notes to Condensed Consolidated Financial Statements](index=11&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) Notes detail accounting policies, including the adoption of ASC 326 (CECL) which increased the allowance for credit losses, and provide insights into the loan portfolio and investment securities - The company adopted ASC 326 (CECL) on July 1, 2023, resulting in a **$497 thousand** increase in the allowance for credit losses for loans and a **$54 thousand** increase for unfunded commitments, with a corresponding **$414 thousand** decrease to retained earnings[38](index=38&type=chunk)[39](index=39&type=chunk)[41](index=41&type=chunk) - The loan portfolio is primarily composed of one-to-four-family residential real estate loans, totaling **$256.4 million** at March 31, 2025[55](index=55&type=chunk) - The allowance for credit losses (ACL) was **$2.16 million** at March 31, 2025, compared to **$2.13 million** at June 30, 2024[55](index=55&type=chunk) [ITEM 2: Management's Discussion and Analysis of Financial Condition and Results of Operations](index=39&type=section&id=ITEM%202%3A%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses financial condition and operating results, focusing on the OCC regulatory agreement, the return to profitability driven by increased net interest income, and balance sheet changes including deposit growth and dividend suspension [Regulatory Developments Regarding First Federal of Kentucky](index=40&type=section&id=Regulatory%20Developments%20Regarding%20First%20Federal%20of%20Kentucky) First Federal of Kentucky entered a formal agreement with the OCC on August 13, 2024, designating it in "troubled condition" and imposing Individual Minimum Capital Requirements (IMCRs), which the bank currently exceeds - First Federal of Kentucky entered into a formal agreement with the OCC on August 13, 2024, and is now considered to be in **"troubled condition"**[115](index=115&type=chunk) Individual Minimum Capital Requirements (IMCRs) vs. Actual Ratios | Ratio | IMCR Requirement | Actual at Mar 31, 2025 | | :--- | :--- | :--- | | Common equity tier 1 capital | ≥ 9.0% | 16.72% | | Tier 1 capital | ≥ 11.0% | 16.72% | | Total capital | ≥ 12.0% | 16.72% | | Leverage ratio | ≥ 9.0% | 10.13% | [Discussion of Financial Condition](index=44&type=section&id=Discussion%20of%20Financial%20Condition) Total assets increased by **$5.8 million to $380.7 million**, driven by cash growth and a shift in funding mix from FHLB advances to deposits, while non-performing loans decreased - Total assets increased by **$5.8 million** to **$380.7 million**, mainly from a **$9.5 million** increase in cash and cash equivalents[125](index=125&type=chunk) - Deposits increased by **$21.2 million**, while Federal Home Loan Bank advances decreased by **$15.6 million**, indicating a shift in funding mix[134](index=134&type=chunk)[135](index=135&type=chunk) - Non-performing loans were **$3.8 million**, or **1.1% of total loans**, down from **$3.9 million**, or **1.2% of total loans** at June 30, 2024[129](index=129&type=chunk) [Comparison of Operating Results for the Nine-month Periods Ended March 31, 2025 and 2024](index=47&type=section&id=Comparison%20of%20Operating%20Results%20for%20the%20Nine-month%20Periods%20Ended%20March%2031%2C%202025%20and%202024) Net income improved by **$648 thousand** to **$5 thousand** for the nine months ended March 31, 2025, driven by an **18.6%** increase in net interest income and an expanded net interest margin - Net income improved by **$648 thousand** year-over-year, from a loss of **$643 thousand** to income of **$5 thousand**[139](index=139&type=chunk) - Net interest income increased by **$946 thousand (18.6%)** to **$6.0 million**, driven by a **69 basis point** increase in the average rate on interest-earning assets[140](index=140&type=chunk)[141](index=141&type=chunk) - Net interest margin improved to **2.20%** for the nine months ended March 31, 2025, up from **1.94%** in the prior year period[121](index=121&type=chunk) [Comparison of Operating Results for the Three-month Periods Ended March 31, 2025 and 2024](index=49&type=section&id=Comparison%20of%20Operating%20Results%20for%20the%20Three-month%20Periods%20Ended%20March%2031%2C%202025%20and%202024) Quarterly net income was **$7 thousand**, a **$114 thousand** improvement from a net loss in the prior-year quarter, driven by a **20.7%** increase in net interest income and an expanded net interest margin - Quarterly net income was **$7 thousand**, an increase of **$114 thousand** from a net loss of **$107 thousand** in the prior-year quarter[150](index=150&type=chunk) - Net interest income for the quarter increased by **$366 thousand (20.7%)** to **$2.1 million**[151](index=151&type=chunk) - The quarterly net interest margin improved to **2.32%** from **1.98%** in the prior year's quarter[123](index=123&type=chunk) [ITEM 3: Quantitative and Qualitative Disclosures About Market Risk](index=51&type=section&id=ITEM%203%3A%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) This item is not applicable as the company qualifies as a smaller reporting company - The company is a smaller reporting company and is therefore not required to provide these disclosures[161](index=161&type=chunk) [ITEM 4: Controls and Procedures](index=51&type=section&id=ITEM%204%3A%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective, with no significant changes to internal controls over financial reporting identified during the quarter - Management concluded that the company's disclosure controls and procedures were effective as of the end of the reporting period[162](index=162&type=chunk) - No significant changes in internal control over financial reporting occurred during the quarter ended March 31, 2025[163](index=163&type=chunk) PART II OTHER INFORMATION [ITEM 1: Legal Proceedings](index=52&type=section&id=ITEM%201%3A%20Legal%20Proceedings) The company reported no material pending legal proceedings - There are no legal proceedings to report[165](index=165&type=chunk) [ITEM 1A: Risk Factors](index=52&type=section&id=ITEM%201A%3A%20Risk%20Factors) The company highlights the indefinite suspension of dividend payments, contingent on resolving OCC agreement deficiencies, satisfying IMCRs, and obtaining regulatory approvals - The Board of Directors suspended the payment of dividends indefinitely on **January 16, 2024**[167](index=167&type=chunk)[168](index=168&type=chunk) - Future dividend payments are subject to the company's ability to resolve the formal agreement with the OCC and satisfy the imposed individual minimum capital requirements[167](index=167&type=chunk)[168](index=168&type=chunk) - The ability of the majority shareholder, First Federal MHC, to obtain regulatory and member approval to waive its receipt of dividends is a key factor that could impact the company's ability to pay dividends to public shareholders in the future[169](index=169&type=chunk) [ITEM 2: Unregistered Sales of Equity Securities and Use of Proceeds](index=54&type=section&id=ITEM%202%3A%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company did not repurchase any common stock during the quarter ended March 31, 2025 - No shares of common stock were repurchased during the three months ended March 31, 2025[172](index=172&type=chunk)[173](index=173&type=chunk) [ITEM 5: Other Information](index=54&type=section&id=ITEM%205%3A%20Other%20Information) No directors or officers adopted or terminated any Rule 10b5-1 or non-Rule 10b5-1 trading arrangements during the quarter - No directors or officers adopted or terminated any Rule 10b5-1 or non-Rule 10b5-1 trading arrangements during the quarter[176](index=176&type=chunk) [ITEM 6: Exhibits](index=55&type=section&id=ITEM%206%3A%20Exhibits) This section lists the exhibits filed with the Form 10-Q, including charter, bylaws, CEO/CFO certifications, and XBRL data files

Financial Performance - For the three months ended March 31, 2025, net income was $7,000 or $0.00 diluted earnings per share, compared to a net loss of $107,000 or $(0.01) diluted earnings per share for the same period in 2024, representing an increase of $114,000 [2]. - For the nine months ended March 31, 2025, net income was $5,000 compared to a net loss of $643,000 for the same period in 2024, marking an increase of $648,000 [2]. Income and Expenses - Net interest income increased by $366,000 or 20.7% to $2.1 million, driven by a $673,000 or 16.1% increase in interest income to $4.8 million, while interest expense rose by $307,000 or 12.7% to $2.7 million [3]. - Non-interest income rose by $3,000 or 3.8% to $81,000, primarily due to net gains on sales of loans increasing by $14,000 compared to March 31, 2024 [5]. - Non-interest expense increased by $160,000, primarily due to higher outside service fees, while employee compensation and benefits decreased by $27,000 or 2.2% [6]. Assets and Liabilities - Total assets increased by $5.8 million or 1.5% to $380.7 million, mainly due to a $9.5 million or 51.8% increase in cash and cash equivalents [8]. - Average interest-earning assets increased by $10.2 million or 2.9% to $367.3 million, with the average rate earned on these assets rising by 60 basis points to 5.28% [4]. - Deposits increased by $21.2 million or 8.3% to $277.4 million, while FHLB advances decreased by $15.6 million or 22.6% [8]. - Shareholders' equity increased by $155,000 or 0.3% to $48.2 million, with the book value per share reported at $5.95 [9]. Strategic Outlook - The company anticipates addressing deficiencies related to the agreement with the Office of the Comptroller of the Currency and aims to increase earnings and core deposits while reducing reliance on higher-cost funding sources [10].

Financial Performance - Net interest income increased to $3,907 thousand for the six months ended December 31, 2024, up 17.4% from $3,328 thousand in the same period of 2023[10]. - Total interest income rose to $9,403 thousand for the six months ended December 31, 2024, a 22.7% increase compared to $7,661 thousand in the prior year[10]. - Net income for the six months ended December 31, 2024, was a loss of $2 thousand, an improvement from a loss of $536 thousand in the same period of 2023[12]. - Non-interest income increased significantly to $308 thousand for the six months ended December 31, 2024, compared to $121 thousand in the same period of 2023, marking a 154.5% increase[10]. - Earnings per share for the six months ended December 31, 2024, was $(0.00), compared to $(0.07) for the same period in 2023[10]. - Total revenue for the current period was $335 million, compared to $304 million in the previous period, representing an increase of approximately 10.2%[96]. - The company reported a net loss of $2,000, an increase of $534,000 or 99.6% from the net loss of $536,000 for the same period in 2023[141]. - Net income for the three months ended December 31, 2024, totaled $13,000, an increase of $374,000 or 103.6% from a net loss of $361,000 in the same period of 2023[152]. Assets and Liabilities - Total assets decreased slightly to $374,208 thousand as of December 31, 2024, from $374,968 thousand on June 30, 2024, representing a decline of 0.2%[9]. - Total liabilities decreased to $326,153 thousand as of December 31, 2024, from $326,971 thousand on June 30, 2024, a reduction of 0.2%[9]. - Shareholders' equity increased to $48,055 thousand as of December 31, 2024, from $47,997 thousand on June 30, 2024, reflecting a growth of 0.1%[9]. - Total cash and cash equivalents increased to $20,976,000 at December 31, 2024, up from $14,584,000 at the same date in 2023[22]. - Total loans receivable amounted to $326,509,000, with $5,170,000 classified as substandard[99]. - Total financial assets carrying value was $330,234,000 as of December 31, 2024, with a fair value of $317,845,000[109]. Credit Quality and Loan Performance - The provision for credit losses remained stable at $15 thousand for both the six months ended December 31, 2024, and 2023[10]. - The allowance for credit losses increased by $497,000 due to the adoption of ASC 326, impacting retained earnings by a decrease of $414,000[41][42]. - Nonaccrual loans totaled $2,817,000 as of December 31, 2024, compared to $3,647,000 on June 30, 2024, indicating a decrease of approximately 23%[88]. - The total past due loans as of December 31, 2024, amounted to $332,375,000, with $9,702,000 classified as past due over 30 days[90]. - The company categorizes loans into risk categories using a scale from 1 (Highest Pass) to 9 (Loss) based on borrowers' ability to service their debt[67]. - The company believes the ACL as of December 31, 2024, is adequate based on ongoing evaluations[64]. - The total amount of loans in the substandard category across all types was $4.055 million, which is relatively low compared to the total loan portfolio[95]. Interest and Yield - The net interest margin for the six months ended December 31, 2024, was 2.15%, compared to 1.92% for the same period in 2023[123]. - The average rate earned on interest-earning assets increased by 74 basis points to 5.17%, contributing to the increase in interest income[143]. - The average balance of loans for the six months ended December 31, 2024, was $334.634 million, with interest income of $8.702 million and a yield of 5.20%[123]. - The net interest spread increased from 1.44% to 1.63% for the six-month period ended December 31, 2024[146]. Regulatory and Compliance - First Federal of Kentucky is required to maintain a common equity tier 1 capital ratio of at least 9.0%, a tier 1 capital ratio of at least 11.0%, a total capital ratio of at least 12.0%, and a leverage ratio of at least 9.0% as per the individual minimum capital requirements imposed by the OCC[117]. - The company aims to address deficiencies identified in the formal written agreement with the OCC and is committed to implementing corrective actions[118]. - The company announced the indefinite suspension of dividend payments as of January 16, 2024, due to regulatory requirements and capital ratio constraints[173]. Miscellaneous - The company reported unrealized holding gains on available-for-sale securities of $80,000 for the six months ended December 31, 2024[110]. - The report includes comprehensive financial statements, which are crucial for assessing the company's financial health[101]. - The filing date of February 14, 2025, indicates the timeliness of the financial disclosures[191].