☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended June 30, 2021 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _______ to _______ UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 FORM 10-K (Mark One) Commission file number 0-51176 KENTUCKY FIRST FEDERAL BANCORP (Exact Name of Registrant as Specified in Its Charter) | United States | 61-1484858 | | ...

[Introduction](index=1&type=section&id=Introduction) This section provides an overview of Kentucky First Federal Bancorp's Quarterly Report on Form 10-Q, identifying it as a Smaller Reporting Company with key stock information - Kentucky First Federal Bancorp filed a Quarterly Report on Form 10-Q for the period ended March 31, 2021[1](index=1&type=chunk) - The registrant is classified as a **Smaller Reporting Company**[3](index=3&type=chunk) Key Company Information | Metric | Value | | :--- | :--- | | Common Stock Trading Symbol | KFFB | | Exchange | The NASDAQ Stock Market LLC | | Shares Outstanding (May 7, 2021) | **8,226,715** | [PART I FINANCIAL INFORMATION](index=4&type=section&id=PART%20I%20FINANCIAL%20INFORMATION) This section presents the unaudited condensed consolidated financial statements and management's discussion and analysis for the reporting period [ITEM 1 Financial Statements](index=4&type=section&id=ITEM%201%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, along with their accompanying notes [Condensed Consolidated Balance Sheets](index=4&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) This section provides a snapshot of the Company's financial position, detailing assets, liabilities, and shareholders' equity at specific reporting dates Condensed Consolidated Balance Sheet Highlights (in thousands) | Metric (in thousands) | March 31, 2021 | June 30, 2020 | | :--- | :--- | :--- | | Total Assets | **$332,632** | $321,136 | | Total Liabilities | **$280,742** | $269,225 | | Total Shareholders' Equity | **$51,890** | $51,911 | | Loans, net | **$299,190** | $285,887 | | Deposits | **$225,543** | $212,273 | | Federal Home Loan Bank advances | **$53,193** | $54,715 | - Total assets increased by **$11.5 million**, or **3.6%**, from June 30, 2020, primarily due to an increase in net loans[9](index=9&type=chunk)[96](index=96&type=chunk) - Loans, net of allowance, increased by **$13.3 million**, or **4.7%**, to **$299.2 million** at March 31, 2021[9](index=9&type=chunk)[100](index=100&type=chunk) [Condensed Consolidated Statements of Operations](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) This section details the Company's financial performance over specific periods, presenting revenues, expenses, and net income Condensed Consolidated Statements of Operations Highlights (in thousands, except per share) | Metric (in thousands, except per share) | 9 Months Ended Mar 31, 2021 | 9 Months Ended Mar 31, 2020 | 3 Months Ended Mar 31, 2021 | 3 Months Ended Mar 31, 2020 | | :--- | :--- | :--- | :--- | :--- | | Total Interest Income | **$8,971** | $9,796 | **$2,940** | $3,205 | | Total Interest Expense | **$1,660** | $2,751 | **$492** | $882 | | Net Interest Income | **$7,311** | $7,045 | **$2,448** | $2,323 | | Provision for Loan Losses | **$192** | $64 | **$--** | $-- | | Total Non-Interest Income | **$433** | $233 | **$182** | $81 | | Total Non-Interest Expense | **$6,131** | $6,316 | **$2,019** | $2,106 | | Income Before Income Taxes | **$1,421** | $898 | **$611** | $298 | | Federal Income Tax Expense | **$293** | $176 | **$138** | $58 | | NET INCOME | **$1,128** | $722 | **$473** | $240 | | Basic and Diluted EPS | **$0.14** | $0.09 | **$0.06** | $0.03 | | Dividends Per Share | **$0.30** | $0.30 | **$0.10** | $0.10 | - Net income for the nine months ended March 31, 2021, increased by **$406,000** (**56.2%**) to **$1.1 million**, driven by higher net interest income, non-interest income, and lower non-interest expense[109](index=109&type=chunk) - For the three months ended March 31, 2021, net income increased by **$233,000** (**97.1%**) to **$473,000**[121](index=121&type=chunk) [Condensed Consolidated Statements of Comprehensive Income](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Comprehensive%20Income) This section presents the Company's comprehensive income, including net income and other comprehensive income components Condensed Consolidated Statements of Comprehensive Income Highlights (in thousands) | Metric (in thousands) | 9 Months Ended Mar 31, 2021 | 9 Months Ended Mar 31, 2020 | 3 Months Ended Mar 31, 2021 | 3 Months Ended Mar 31, 2020 | | :--- | :--- | :--- | :--- | :--- | | Net income | **$1,128** | $722 | **$473** | $240 | | Unrealized holding Gains (losses) on securities available-for-sale, net of taxes | **$(2)** | $-- | **$--** | $1 | | Comprehensive income | **$1,126** | $722 | **$473** | $241 | [Consolidated Statements of Changes in Shareholders' Equity](index=9&type=section&id=Consolidated%20Statements%20of%20Changes%20in%20Shareholders'%20Equity) This section outlines the changes in the Company's shareholders' equity over specific periods, reflecting net income, dividends, and other equity transactions Shareholders' Equity Changes (Nine Months, in thousands) **Nine Months Ended March 31, 2021 (in thousands):** | Item | Amount | | :--- | :--- | | Balance at June 30, 2020 | **$51,911** | | Net income | **$1,128** | | Allocation of ESOP shares | **$60** | | Acquisition of shares for Treasury | **$(167)** | | Other comprehensive loss | **$(2)** | | Cash dividends of $0.30 per common share | **$(1,040)** | | Balance at March 31, 2021 | **$51,890** | Shareholders' Equity Changes (Three Months, in thousands) **Three Months Ended March 31, 2021 (in thousands):** | Item | Amount | | :--- | :--- | | Balance at December 31, 2020 | **$51,832** | | Net income | **$473** | | Allocation of ESOP shares | **$--** | | Acquisition of shares for Treasury | **$(66)** | | Cash dividends of $0.10 per common share | **$(349)** | | Balance at March 31, 2021 | **$51,890** | - Shareholders' equity decreased by **$21,000** (**0.0%**) from June 30, 2020, to March 31, 2021, primarily due to treasury share repurchases and dividends paid, partially offset by net profits[106](index=106&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=11&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) This section presents the Company's cash inflows and outflows from operating, investing, and financing activities over specific periods Condensed Consolidated Statements of Cash Flows Highlights (in thousands) | Cash Flow Activity (in thousands) | 9 Months Ended Mar 31, 2021 | 9 Months Ended Mar 31, 2020 | | :--- | :--- | :--- | | Net cash provided by operating activities | **$1,259** | $951 | | Net cash provided by (used in) investing activities | **$(10,495)** | $6,914 | | Net cash provided by (used in) financing activities | **$10,301** | $(701) | | Net increase in cash and cash equivalents | **$1,065** | $7,164 | | Ending cash and cash equivalents | **$14,767** | $17,025 | - Cash and cash equivalents increased by **$1.1 million** (**7.8%**) to **$14.8 million** at March 31, 2021[97](index=97&type=chunk) - Investing activities resulted in a net cash outflow of **$10.5 million** for the nine months ended March 31, 2021, a significant change from a **$6.9 million** inflow in the prior year, primarily due to net loan originations[23](index=23&type=chunk) [Notes to Condensed Consolidated Financial Statements](index=14&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) This section provides essential supplementary information and explanations for the figures presented in the condensed consolidated financial statements - The Company operates as a mid-tier holding company for First Federal Savings and Loan Association of Hazard and First Federal Savings Bank of Kentucky, both community-oriented savings institutions[28](index=28&type=chunk) - The FASB has delayed the implementation of ASU No. 2016-13 (CECL model) for smaller reporting companies until fiscal years beginning after December 15, 2022 (July 1, 2023, for the Company), which is expected to add complexity and costs to credit loss evaluation[33](index=33&type=chunk) Loan Portfolio Composition (in thousands) **Loan Portfolio Composition (in thousands):** | Loan Type | March 31, 2021 | June 30, 2020 | | :--- | :--- | :--- | | Residential real estate (One- to four-family) | **$222,878** | $222,489 | | Multi-family | **$19,773** | $12,373 | | Construction | **$5,959** | $4,045 | | Nonresidential real estate | **$37,884** | $33,503 | | Total Loans | **$300,812** | $287,375 | | Allowance for loan losses | **$(1,622)** | $(1,488) | | Loans, net | **$299,190** | $285,887 | - Non-performing loans decreased to **$6.2 million** (**2.1%** of total loans) at March 31, 2021, from **$7.4 million** (**2.6%**) at June 30, 2020[101](index=101&type=chunk) - The allowance for loan losses increased to **$1.6 million** at March 31, 2021, representing **26.1%** of nonperforming loans, up from **20.1%** at June 30, 2020[101](index=101&type=chunk) Fair Value Measurements (in thousands) **Fair Value Measurements at March 31, 2021 (in thousands):** | Financial Instrument | Carrying Value | Level 1 | Level 2 | Level 3 | Total Fair Value | | :--- | :--- | :--- | :--- | :--- | :--- | | Cash and cash equivalents | **$14,767** | $14,767 | | | $14,767 | | Available-for-sale securities | **$33** | | $33 | | $33 | | Held-to-maturity securities | **$491** | | $508 | | $508 | | Loans held for sale | **$1,261** | | | $1,310 | $1,310 | | Loans receivable - net | **$299,190** | | | $309,608 | $309,608 | | Deposits | **$225,543** | $101,627 | $124,445 | | $226,072 | | Federal Home Loan Bank advances | **$53,193** | | $53,692 | | $53,692 | [ITEM 2 Management's Discussion and Analysis of Financial Condition and Results of Operations](index=33&type=section&id=ITEM%202%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) This section provides management's perspective on the Company's financial condition and results of operations, including forward-looking statements, average balance sheet analysis, and a detailed discussion of changes in financial position and operating results for the nine-month and three-month periods ended March 31, 2021, with a focus on the impact of the COVID-19 pandemic [Forward-Looking Statements](index=33&type=section&id=Forward-Looking%20Statements) This section highlights that the report contains statements about future events, which are inherently subject to various risks and uncertainties - The report contains forward-looking statements subject to risks and uncertainties, including general economic conditions, real estate prices, interest rates, competitive conditions, regulatory changes, and the potential effects of the COVID-19 pandemic[81](index=81&type=chunk) [Average Balance Sheets](index=34&type=section&id=Average%20Balance%20Sheets) This section presents average balance sheet data, including interest-earning assets and interest-bearing liabilities, along with their respective yields and costs Average Balance Sheet Data (Nine Months, in thousands) **Average Balance Sheet Data (9 Months Ended March 31, in thousands):** | Metric | 2021 | 2020 | | :--- | :--- | :--- | | Average Interest-earning assets | **$317,129** | $305,545 | | Total interest income | **$8,971** | $9,796 | | Yield on interest-earning assets | **3.77%** | 4.27% | | Average Interest-bearing liabilities | **$264,048** | $255,868 | | Total interest expense | **$1,660** | $2,751 | | Cost of interest-bearing liabilities | **0.84%** | 1.43% | | Net interest spread | **2.93%** | 2.84% | | Net interest margin | **3.07%** | 3.07% | Average Balance Sheet Data (Three Months, in thousands) **Average Balance Sheet Data (3 Months Ended March 31, in thousands):** | Metric | 2021 | 2020 | | :--- | :--- | :--- | | Average Interest-earning assets | **$321,648** | $305,636 | | Total interest income | **$2,940** | $3,205 | | Yield on interest-earning assets | **3.66%** | 4.20% | | Average Interest-bearing liabilities | **$267,072** | $255,731 | | Total interest expense | **$492** | $882 | | Cost of interest-bearing liabilities | **0.74%** | 1.38% | | Net interest spread | **2.92%** | 2.82% | | Net interest margin | **3.04%** | 3.04% | [Discussion of Financial Condition Changes from June 30, 2020 to March 31, 2021](index=36&type=section&id=Discussion%20of%20Financial%20Condition%20Changes%20from%20June%2030%2C%202020%20to%20March%2031%2C%202021) This section analyzes the significant changes in the Company's financial position, including asset quality, loan deferrals, and balance sheet movements, between June 30, 2020, and March 31, 2021 - The Company continues to monitor the impact of COVID-19, noting that while physical operations were affected, business remained mostly unchanged with consistent consumer transactions and loan originations[88](index=88&type=chunk) - Asset quality improved, with classified assets totaling **$8.5 million** at March 31, 2021, down from **$10.5 million** at March 31, 2020, partly due to a strengthening residential real estate market[88](index=88&type=chunk) - The Company granted payment deferrals to **101 borrowers** totaling **$18.4 million** in loans due to COVID-19, with **100 loans** (**$17.5 million**) having resumed regular payments by March 31, 2021[92](index=92&type=chunk) - First Federal of Kentucky approved and closed **73 Paycheck Protection Program (PPP) loans** totaling **$2.6 million**, with **28 loans** (**$1.2 million**) repaid by March 31, 2021[93](index=93&type=chunk) - Total assets increased by **$11.5 million** (**3.6%**) to **$332.6 million**, primarily driven by a **$13.3 million** (**4.7%**) increase in net loans to **$299.2 million**[96](index=96&type=chunk)[100](index=100&type=chunk) - Total liabilities increased by **$11.5 million** (**4.3%**) to **$280.7 million**, mainly due to a **$13.3 million** (**6.3%**) increase in deposits to **$225.5 million**[105](index=105&type=chunk) - The Company paid dividends of **$1.0 million**, representing **92.2%** of net income for the nine-month period, and received regulatory approval for First Federal MHC to waive dividends up to **$0.10 per common share** through Q3 2021[107](index=107&type=chunk) [Comparison of Operating Results for the Nine-month Periods Ended March 31, 2021 and 2020](index=40&type=section&id=Comparison%20of%20Operating%20Results%20for%20the%20Nine-month%20Periods%20Ended%20March%2031%2C%202021%20and%202020) This section compares the Company's operating performance, including net interest income, loan loss provisions, and non-interest expenses, for the nine-month periods ended March 31, 2021, and 2020 - Net interest income increased by **$266,000** (**3.8%**) to **$7.3 million**, as a **$1.1 million** (**39.7%**) decrease in interest expense outpaced an **$825,000** (**8.4%**) decrease in interest income[110](index=110&type=chunk) - The average rate earned on interest-earning assets decreased by **50 basis points** to **3.77%**, while the average balance increased by **$11.6 million** (**3.8%**) to **$317.1 million**[111](index=111&type=chunk) - Interest expense decreased due to a **59 basis point** reduction in the average rate paid on funding sources to **0.84%**[112](index=112&type=chunk) - Provision for loan losses increased by **$128,000** to **$192,000**, primarily due to higher loan levels and increased multi-family and commercial real estate loans[114](index=114&type=chunk) - Non-interest income increased by **$200,000** (**85.8%**) to **$433,000**, mainly driven by a **$205,000** increase in net gains on sales of loans[115](index=115&type=chunk) - Non-interest expense decreased by **$185,000** (**2.9%**) to **$6.1 million**, attributed to cost-saving measures, lower employee compensation, and reduced franchise taxes[116](index=116&type=chunk)[117](index=117&type=chunk) - Income tax expense increased by **$117,000** (**66.5%**) to **$293,000**, with the effective tax rate rising from **19.6%** to **20.6%**[119](index=119&type=chunk) [Comparison of Operating Results for the Three-month Periods Ended March 31, 2021 and 2020](index=42&type=section&id=Comparison%20of%20Operating%20Results%20for%20the%20Three-month%20Periods%20Ended%20March%2031%2C%202021%20and%202020) This section compares the Company's operating performance, including net interest income, non-interest income, and expenses, for the three-month periods ended March 31, 2021, and 2020 - Net interest income increased by **$125,000** (**5.4%**) to **$2.4 million**, as interest expense decreased faster than interest income[122](index=122&type=chunk) - Interest income on loans decreased by **$205,000** (**6.6%**) to **$2.9 million**, primarily due to a **53 basis point** decrease in the average loan portfolio rate to **3.88%**[123](index=123&type=chunk) - Interest expense on deposits decreased by **$241,000** (**38.4%**) to **$387,000**, and on borrowings by **$149,000** (**58.7%**) to **$105,000**[124](index=124&type=chunk) - There was no provision for loan losses for the three-month periods ended March 31, 2021, or 2020[126](index=126&type=chunk) - Non-interest income increased by **$101,000** (**124.7%**) to **$182,000**, mainly due to a **$90,000** increase in net gains on sales of loans[128](index=128&type=chunk) - Non-interest expense decreased by **$87,000** (**4.1%**) to **$2.0 million**, driven by cost-saving measures, including a **100%** decrease in franchise and other taxes due to a change in tax structure[129](index=129&type=chunk)[130](index=130&type=chunk) - Income tax expense increased by **$80,000** (**137.9%**) to **$138,000**, with the effective tax rate rising from **19.5%** to **22.6%**[132](index=132&type=chunk) [ITEM 3 Quantitative and Qualitative Disclosures About Market Risk](index=44&type=section&id=ITEM%203%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) This section states that quantitative and qualitative disclosures about market risk are not applicable to the Company as it is a smaller reporting company - This item is not applicable as the Company is a **smaller reporting company**[135](index=135&type=chunk) [ITEM 4 Controls and Procedures](index=44&type=section&id=ITEM%204%20Controls%20and%20Procedures) This section details the evaluation of the Company's disclosure controls and procedures and internal control over financial reporting, concluding on their effectiveness and reporting no significant changes - The Company's Chief Executive Officer and Chief Financial Officer concluded that the disclosure controls and procedures were **effective** as of March 31, 2021[136](index=136&type=chunk) - There were no significant changes in the Company's internal control over financial reporting during the quarter ended March 31, 2021[137](index=137&type=chunk) [PART II OTHER INFORMATION](index=45&type=section&id=PART%20II%20OTHER%20INFORMATION) This section provides supplementary information not covered in the financial statements, including legal proceedings, risk factors, and equity security sales [ITEM 1. Legal Proceedings](index=45&type=section&id=ITEM%201.%20Legal%20Proceedings) This section confirms that there are no legal proceedings to report for the Company - There are no legal proceedings to report for the Company [ITEM 1A. Risk Factors](index=45&type=section&id=ITEM%201A.%20Risk%20Factors) This section states that there have been no material changes to the risk factors previously disclosed in the Company's Annual Report on Form 10-K - There have been no material changes in the risk factors disclosed in the Company's Annual Report on Form 10-K for the fiscal year ended June 30, 2020, as updated by the prior Quarterly Report on Form 10-Q[140](index=140&type=chunk) [ITEM 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=45&type=section&id=ITEM%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) This section provides information on the Company's common stock repurchase activities during the quarter ended March 31, 2021, including the completion of a prior program and the initiation of a new one Common Stock Repurchase Activity | Period | Total of shares purchased | Average price paid per share | Total of shares purchased as part of publicly announced plans or programs | Maximum of shares yet be purchased under the plans or programs | | :--- | :--- | :--- | :--- | :--- | | January 1-31, 2021 | – | **$ –** | – | **150,000** | | February 1-28, 2021 | **10,000** | **$ 6.65** | **10,000** | **140,000** | | March 1-31, 2021 | -- | **$ --** | -- | **140,000** | - On February 3, 2021, the Company substantially completed its prior program to repurchase up to **150,000 shares** and initiated a new stock repurchase plan authorizing the purchase of up to an additional **150,000 shares**[142](index=142&type=chunk) [ITEM 3. Defaults Upon Senior Securities](index=45&type=section&id=ITEM%203.%20Defaults%20Upon%20Senior%20Securities) This section indicates that there are no defaults upon senior securities to report - There are no defaults upon senior securities to report [ITEM 4. Mine Safety Disclosures.](index=45&type=section&id=ITEM%204.%20Mine%20Safety%20Disclosures.) This section states that mine safety disclosures are not applicable to the Company - Mine safety disclosures are not applicable to the Company [ITEM 5. Other Information](index=45&type=section&id=ITEM%205.%20Other%20Information) This section confirms that there is no other information to report - There is no other information to report [ITEM 6. Exhibits](index=46&type=section&id=ITEM%206.%20Exhibits) This section lists all documents filed as exhibits to the Form 10-Q, including corporate governance documents, certifications, and XBRL financial data - The report includes various exhibits such as the Company's Charter and Bylaws, CEO and CFO certifications (Sarbanes-Oxley Act Sections 302 and 906), and XBRL formatted financial statements and notes[147](index=147&type=chunk) [SIGNATURES](index=47&type=section&id=SIGNATURES) This section contains the official signatures of the Company's Chief Executive Officer and Chief Financial Officer, certifying the report's accuracy - The report is duly signed by Don D. Jennings, Chief Executive Officer, and R. Clay Hulette, Vice President and Chief Financial Officer, on May 17, 2021[151](index=151&type=chunk)

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended December 31, 2020 OR ☐ TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE EXCHANGE ACT For the transition period from ____________ to _______________ Commission File Number: 0-51176 KENTUCKY FIRST FEDERAL BANCORP (Exact name of registrant as specified in its charter) United States of America 61-1484858 ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q United States of America 61-1484858 (Mark One) ☒ QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2020 OR ☐ TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE EXCHANGE ACT For the transition period from ____________ to _______________ Commission File Number: 0-51176 KENTUCKY FIRST FEDERAL BANCORP (Exact name of registrant as specified in its charter) ...

(Mark One) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended June 30, 2020 UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 FORM 10-K or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number 0-51176 KENTUCKY FIRST FEDERAL BANCORP (Exact Name of Registrant as Specified in Its Charter) | United States | 61-1484858 | | --- | --- | | (S ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2020 OR ☐ TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE EXCHANGE ACT For the transition period from ____________ to _______________ Commission File Number: 0-51176 KENTUCKY FIRST FEDERAL BANCORP (Exact name of registrant as specified in its charter) United States of America 61-1484858 (St ...

[PART I - FINANCIAL STATEMENTS](index=4&type=section&id=PART%20I%20-%20ITEM%201%20FINANCIAL%20STATEMENTS) [Condensed Consolidated Balance Sheets](index=4&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) The company's total assets and liabilities decreased slightly, while shareholders' equity also saw a minor decline Condensed Consolidated Balance Sheet Highlights (in thousands) | Metric | Dec 31, 2019 | Jun 30, 2019 | Change ($) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Total assets | $328,776 | $330,771 | $(1,995) | -0.6% | | Cash and cash equivalents | $11,884 | $9,861 | $2,023 | 20.5% | | Time deposits in other financial institutions | $2,970 | $6,962 | $(3,992) | -57.3% | | Loans, net | $281,568 | $280,969 | $599 | 0.2% | | Total liabilities | $262,967 | $264,493 | $(1,526) | -0.6% | | Deposits | $199,959 | $195,836 | $4,123 | 2.1% | | Federal Home Loan Bank advances | $61,615 | $66,703 | $(5,088) | -7.6% | | Total shareholders' equity | $65,809 | $66,278 | $(469) | -0.7% | [Condensed Consolidated Statements of Income](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Income) Net income increased significantly for both the three and six-month periods, driven by higher interest income and lower non-interest expenses Key Income Statement Metrics (in thousands, except per share data) | Metric | 6 Months Ended Dec 31, 2019 | 6 Months Ended Dec 31, 2018 | Change ($) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Total interest income | $6,591 | $6,224 | $367 | 5.9% | | Total interest expense | $1,869 | $1,497 | $372 | 24.9% | | Net interest income | $4,722 | $4,727 | $(5) | -0.1% | | Provision for loan losses | $64 | $11 | $53 | 481.8% | | Total non-interest income | $152 | $112 | $40 | 35.7% | | Total non-interest expense | $4,210 | $4,454 | $(244) | -5.5% | | Federal income tax expense | $118 | $69 | $49 | 71.0% | | NET INCOME | $482 | $305 | $177 | 58.0% | | Basic and diluted EPS | $0.06 | $0.04 | $0.02 | 50.0% | | Dividends per share | $0.20 | $0.20 | $0.00 | 0.0% | | Metric | 3 Months Ended Dec 31, 2019 | 3 Months Ended Dec 31, 2018 | Change ($) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Total interest income | $3,263 | $3,178 | $85 | 2.7% | | Total interest expense | $922 | $797 | $125 | 15.7% | | Net interest income | $2,341 | $2,381 | $(40) | -1.7% | | Provision for loan losses | $5 | $0 | $5 | N/A | | Total non-interest income | $78 | $43 | $35 | 81.4% | | Total non-interest expense | $2,108 | $2,230 | $(122) | -5.5% | | Federal income tax expense | $58 | $27 | $31 | 114.8% | | NET INCOME | $248 | $167 | $81 | 48.5% | | Basic and diluted EPS | $0.03 | $0.02 | $0.01 | 50.0% | | Dividends per share | $0.10 | $0.10 | $0.00 | 0.0% | [Condensed Consolidated Statements of Comprehensive Income](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Comprehensive%20Income) Comprehensive income rose in line with net income, with a minor unrealized loss on available-for-sale securities Comprehensive Income (in thousands) | Metric | 6 Months Ended Dec 31, 2019 | 6 Months Ended Dec 31, 2018 | | :--- | :--- | :--- | | Net income | $482 | $305 | | Unrealized holding gains (losses) on AFS securities, net of tax | $(1) | $1 | | Comprehensive income | $481 | $306 | | Metric | 3 Months Ended Dec 31, 2019 | 3 Months Ended Dec 31, 2018 | | :--- | :--- | :--- | | Net income | $248 | $167 | | Unrealized holding gains (losses) on AFS securities, net of tax | $(1) | $1 | | Comprehensive income | $247 | $169 | [Consolidated Statements of Changes in Shareholders' Equity](index=8&type=section&id=Consolidated%20Statements%20of%20Changes%20in%20Shareholders'%20Equity) Shareholders' equity decreased as cash dividends and treasury share acquisitions outpaced net income Changes in Shareholders' Equity (in thousands) | Metric | 6 Months Ended Dec 31, 2019 | | :--- | :--- | | Balance at June 30, 2019 | $66,278 | | Net income | $482 | | Allocation of ESOP shares | $48 | | Acquisition of shares for Treasury | $(312) | | Other comprehensive loss | $(1) | | Cash dividends ($0.20 per share) | $(686) | | Balance at December 31, 2019 | $65,809 | | Metric | 3 Months Ended Dec 31, 2019 | | :--- | :--- | | Balance at September 30, 2019 | $66,040 | | Net income | $248 | | Allocation of ESOP shares | $35 | | Acquisition of shares for Treasury | $(161) | | Other comprehensive loss | $(1) | | Cash dividends ($0.10 per share) | $(352) | | Balance at December 31, 2019 | $65,809 | [Condensed Consolidated Statements of Cash Flows](index=10&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Net cash increased due to positive operating cash flow and a significant inflow from investing activities, despite an outflow from financing Cash Flow Summary (in thousands) | Cash Flow Activity | 6 Months Ended Dec 31, 2019 | 6 Months Ended Dec 31, 2018 | | :--- | :--- | :--- | | Net cash provided by operating activities | $780 | $469 | | Net cash provided by (used in) investing activities | $3,738 | $(2,627) | | Net cash provided by (used in) financing activities | $(2,495) | $2,357 | | Net increase in cash and cash equivalents | $2,023 | $199 | | Ending cash and cash equivalents | $11,884 | $10,142 | - Investing activities saw a significant shift from **net cash used ($2.6 million)** in 2018 to **net cash provided ($3.7 million)** in 2019, largely driven by maturities of time deposits in other financial institutions[20](index=20&type=chunk) - Financing activities moved from a **net cash inflow ($2.4 million)** in 2018 to a **net cash outflow ($2.5 million)** in 2019, primarily due to higher repayments on Federal Home Loan Bank advances and treasury stock purchases[20](index=20&type=chunk) [Notes to Condensed Consolidated Financial Statements](index=13&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) The notes detail the basis of presentation, accounting standards, loan portfolio quality, and fair value measurements [1. Basis of Presentation](index=13&type=section&id=1.%20Basis%20of%20Presentation) The company operates as a mid-tier holding company and is assessing the impact of new accounting standards like CECL - The Company is a mid-tier holding company for First Federal Savings and Loan Association of Hazard and First Federal Savings Bank of Kentucky, operating as two independent, community-oriented savings institutions[25](index=25&type=chunk) - **FASB ASC 326 (CECL model)** is effective for the Company's fiscal year beginning July 1, 2023, and is expected to add complexity and costs to credit loss evaluation, with a one-time cumulative effect adjustment to the allowance for loan losses[31](index=31&type=chunk) - **FASB ASC 842 (Leases)** was adopted effective July 1, 2019, with **no material impact** on the financial statements due to immaterial operating leases[32](index=32&type=chunk) [2. Earnings Per Share](index=15&type=section&id=2.%20Earnings%20Per%20Share) Basic and diluted earnings per share increased from $0.04 to $0.06 for the six-month period, reflecting higher net income Earnings Per Share (in thousands, except per share data) | Metric | 6 Months Ended Dec 31, 2019 | 6 Months Ended Dec 31, 2018 | | :--- | :--- | :--- | | Net income allocated to common shareholders | $482 | $305 | | Weighted average common shares outstanding | 8,266,204 | 8,362,486 | | Basic and diluted EPS | $0.06 | $0.04 | | Metric | 3 Months Ended Dec 31, 2019 | 3 Months Ended Dec 31, 2018 | | :--- | :--- | :--- | | Net income allocated to common shareholders | $248 | $167 | | Weighted average common shares outstanding | 8,255,255 | 8,348,165 | | Basic and diluted EPS | $0.03 | $0.02 | [3. Investment Securities](index=16&type=section&id=3.%20Investment%20Securities) The investment securities portfolio decreased by 34.2% to $1.2 million, consisting primarily of agency mortgage-backed securities Investment Securities (in thousands) | Type | Dec 31, 2019 (Fair Value) | Jun 30, 2019 (Fair Value) | | :--- | :--- | :--- | | Available-for-sale Securities | $545 | $1,045 | | Held-to-maturity Securities | $659 | $775 | | Total Investment Securities | $1,204 | $1,820 | - **No other-than-temporary impairment** was recognized on securities in unrealized loss positions, as the company has no intention or requirement to sell them before maturity[42](index=42&type=chunk) [4. Loans receivable](index=17&type=section&id=4.%20Loans%20receivable) The net loan portfolio increased slightly, while non-performing loans decreased to 2.7% of total loans Loan Portfolio Composition (in thousands) | Loan Type | Dec 31, 2019 | Jun 30, 2019 | | :--- | :--- | :--- | | Residential real estate (One- to four-family) | $220,496 | $216,066 | | Multi-family | $12,626 | $15,928 | | Nonresidential real estate | $31,111 | $30,419 | | Total Loans | $283,015 | $282,425 | | Allowance for loan losses | $(1,447) | $(1,456) | | Loans, net | $281,568 | $280,969 | Non-Performing Loans and Allowance for Loan Losses (in thousands) | Metric | Dec 31, 2019 | Jun 30, 2019 | | :--- | :--- | :--- | | Non-performing loans | $7,700 | $8,000 | | Non-performing loans as % of total loans | 2.7% | 2.8% | | Allowance for loan losses | $1,447 | $1,456 | | Allowance for loan losses as % of non-performing loans | 18.7% | 18.1% | | Allowance for loan losses as % of total loans | 0.5% | 0.5% | Credit Quality Indicators (in thousands) - December 31, 2019 | Risk Category | Amount | | :--- | :--- | | Pass | $271,585 | | Special Mention | $1,355 | | Substandard | $10,075 | | Doubtful | $0 | - **Troubled Debt Restructurings (TDRs) increased to $1.9 million** at December 31, 2019, from $1.6 million at June 30, 2019[52](index=52&type=chunk) - **No TDRs defaulted** during the six-month periods ended December 31, 2019 or 2018[55](index=55&type=chunk) [5. Disclosures About Fair Value of Assets and Liabilities](index=28&type=section&id=5.%20Disclosures%20About%20Fair%20Value%20of%20Assets%20and%20Liabilities) Fair value measurements are categorized into three levels, with securities primarily Level 2 and impaired loans Level 3 - Fair value measurements are categorized into **Level 1** (quoted prices in active markets), **Level 2** (observable inputs other than Level 1 prices), and **Level 3** (unobservable inputs)[65](index=65&type=chunk)[66](index=66&type=chunk) - Securities are generally classified as **Level 2**, while impaired loans and other real estate owned (REO) are typically **Level 3** due to reliance on appraisals with significant unobservable adjustments[68](index=68&type=chunk)[70](index=70&type=chunk)[71](index=71&type=chunk) Fair Value of Financial Instruments (in thousands) - December 31, 2019 | Instrument | Carrying Value | Fair Value (Total) | | :--- | :--- | :--- | | Cash and cash equivalents | $11,884 | $11,884 | | Time deposits in other financial institutions | $2,970 | $2,979 | | Available-for-sale securities | $545 | $545 | | Held-to-maturity securities | $652 | $659 | | Loans held for sale | $251 | $251 | | Loans receivable - net | $281,568 | $285,831 | | Deposits | $199,959 | $199,996 | | Federal Home Loan Bank advances | $61,615 | $61,741 | [6. Other Comprehensive Income (Loss)](index=33&type=section&id=6.%20Other%20Comprehensive%20Income%20(Loss)) Other comprehensive income reflected a minor net-of-tax loss from unrealized holding losses on available-for-sale securities Other Comprehensive Income (Loss) (in thousands) | Metric | 6 Months Ended Dec 31, 2019 | 6 Months Ended Dec 31, 2018 | | :--- | :--- | :--- | | Unrealized holding gains (losses) on AFS securities | $(1) | $1 | | Tax effect | $0 | $0 | | Net-of-tax amount | $(1) | $1 | | Metric | 3 Months Ended Dec 31, 2019 | 3 Months Ended Dec 31, 2018 | | :--- | :--- | :--- | | Unrealized holding gains (losses) on AFS securities | $(1) | $2 | | Tax effect | $0 | $1 | | Net-of-tax amount | $(1) | $1 | [ITEM 2: Management's Discussion and Analysis of Financial Condition and Results of Operations](index=34&type=section&id=ITEM%202%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) [Forward-Looking Statements](index=34&type=section&id=Forward-Looking%20Statements) This section contains forward-looking statements subject to risks and uncertainties and disclaims any obligation to update them - Forward-looking statements are subject to risks and uncertainties such as general economic conditions, real estate prices, interest rate environment, competitive conditions, changes in law, governmental policies, and rapidly changing technology[82](index=82&type=chunk) - The Company disclaims any obligation to publicly release revisions to forward-looking statements to reflect events or circumstances after the statement date[82](index=82&type=chunk) [Average Balance Sheets](index=35&type=section&id=Average%20Balance%20Sheets) Average interest-earning assets increased, while the net interest spread and net interest margin both declined Average Balance Sheet Highlights (Six Months Ended Dec 31, in thousands) | Metric | 2019 Average Balance | 2018 Average Balance | Change ($) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Total interest-earning assets | $305,499 | $293,314 | $12,185 | 4.2% | | Loans (average balance) | $282,210 | $271,460 | $10,750 | 4.0% | | Total interest-bearing liabilities | $256,033 | $243,656 | $12,377 | 5.1% | | Net interest spread | 2.85% | 3.02% | -0.17% | -5.6% | | Net interest margin | 3.09% | 3.22% | -0.13% | -4.0% | Average Balance Sheet Highlights (Three Months Ended Dec 31, in thousands) | Metric | 2019 Average Balance | 2018 Average Balance | Change ($) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Total interest-earning assets | $306,195 | $294,846 | $11,349 | 3.8% | | Loans (average balance) | $282,774 | $272,616 | $10,158 | 3.7% | | Total interest-bearing liabilities | $256,817 | $245,935 | $10,882 | 4.4% | | Net interest spread | 2.83% | 3.02% | -0.19% | -6.3% | | Net interest margin | 3.06% | 3.23% | -0.17% | -5.3% | [Discussion of Financial Condition Changes from June 30, 2019 to December 31, 2019](index=37&type=section&id=Discussion%20of%20Financial%20Condition%20Changes%20from%20June%2030,%202019%20to%20December%2031,%202019) Total assets and liabilities decreased, driven by changes in time deposits and FHLB advances, while shareholders' equity declined Key Financial Condition Changes (in thousands) | Metric | Dec 31, 2019 | Jun 30, 2019 | Change ($) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Total assets | $328,776 | $330,771 | $(1,995) | -0.6% | | Cash and cash equivalents | $11,884 | $9,861 | $2,023 | 20.5% | | Time deposits in other financial institutions | $2,970 | $6,962 | $(3,992) | -57.3% | | Loans receivable, net | $281,568 | $280,969 | $599 | 0.2% | | Non-performing loans | $7,700 | $8,000 | $(300) | -3.8% | | Total classified assets | $10,859 | $11,590 | $(731) | -6.3% | | Total liabilities | $262,967 | $264,493 | $(1,526) | -0.6% | | Deposits | $199,959 | $195,836 | $4,123 | 2.1% | | Federal Home Loan Bank advances | $61,615 | $66,703 | $(5,088) | -7.6% | | Shareholders' equity | $65,809 | $66,278 | $(469) | -0.7% | - The Company paid **dividends of $686,000**, or **142.3% of net income**, for the six months ended December 31, 2019[103](index=103&type=chunk) [Comparison of Operating Results for the Six-Month Periods Ended December 31, 2019 and 2018](index=40&type=section&id=Comparison%20of%20Operating%20Results%20for%20the%20Six-Month%20Periods%20Ended%20December%2031,%202019%20and%202018) Net income increased by 58.0% due to stable net interest income, higher non-interest income, and lower non-interest expense Operating Results (Six Months Ended Dec 31, in thousands) | Metric | 2019 | 2018 | Change ($) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Net income | $482 | $305 | $177 | 58.0% | | Net interest income | $4,722 | $4,727 | $(5) | -0.1% | | Interest income on loans | $6,297 | $5,894 | $403 | 6.8% | | Interest expense on deposits | $1,196 | $929 | $267 | 28.7% | | Interest expense on borrowings | $673 | $568 | $105 | 18.5% | | Provision for loan losses | $64 | $11 | $53 | 481.8% | | Non-interest income | $152 | $112 | $40 | 35.7% | | Non-interest expense | $4,210 | $4,454 | $(244) | -5.5% | | Employee compensation and benefits | $2,768 | $2,917 | $(149) | -5.1% | | FDIC insurance premiums | $0 | $42 | $(42) | -100.0% | | Federal income tax expense | $118 | $69 | $49 | 71.0% | - Employee compensation and benefits **decreased by $149,000 (5.1%)** due to lower contributions to the Defined Benefit pension plan, a result of the plan freeze effective April 1, 2019[113](index=113&type=chunk) - **FDIC insurance premiums decreased to zero** as the banks utilized their Small Bank Assessment Credits (SBAC)[113](index=113&type=chunk) [Comparison of Operating Results for the Three-Month Periods Ended December 31, 2019 and 2018](index=43&type=section&id=Comparison%20of%20Operating%20Results%20for%20the%20Three-Month%20Periods%20Ended%20December%2031,%202019%20and%202018) Net income increased by 48.5% driven by a surge in non-interest income and a decrease in non-interest expense Operating Results (Three Months Ended Dec 31, in thousands) | Metric | 2019 | 2018 | Change ($) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Net income | $248 | $167 | $81 | 48.5% | | Net interest income | $2,341 | $2,381 | $(40) | -1.7% | | Interest income on loans | $3,125 | $3,006 | $119 | 4.0% | | Interest expense on deposits | $608 | $487 | $121 | 24.8% | | Interest expense on borrowings | $314 | $310 | $4 | 1.3% | | Provision for loan losses | $5 | $0 | $5 | N/A | | Non-interest income | $78 | $43 | $35 | 81.4% | | Non-interest expense | $2,108 | $2,230 | $(122) | -5.5% | | Employee compensation and benefits | $1,408 | $1,463 | $(55) | -3.8% | | Foreclosure and OREO expenses, net | $6 | $37 | $(31) | -83.8% | | FDIC insurance premiums | $0 | $20 | $(20) | -100.0% | | Federal income tax expense | $58 | $27 | $31 | 114.8% | - The increase in interest expense on deposits was primarily due to a **25 basis point increase** in the average rate paid on deposits, as customers shifted to higher-interest Certificates of Deposit[120](index=120&type=chunk) [ITEM 3: Quantitative and Qualitative Disclosures About Market Risk](index=45&type=section&id=ITEM%203%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) This item is not applicable for the Company as it is a smaller reporting company - The Company is a smaller reporting company, therefore, Item 3 (Quantitative and Qualitative Disclosures About Market Risk) is **not applicable**[129](index=129&type=chunk) [ITEM 4: Controls and Procedures](index=45&type=section&id=ITEM%204%20Controls%20and%20Procedures) The Company's CEO and CFO concluded that disclosure controls and procedures were effective as of December 31, 2019 - The CEO and CFO evaluated the effectiveness of the Company's disclosure controls and procedures and concluded they were **effective** as of December 31, 2019[130](index=130&type=chunk) - **No significant changes** in internal control over financial reporting were identified during the quarter ended December 31, 2019[131](index=131&type=chunk) [PART II - OTHER INFORMATION](index=46&type=section&id=PART%20II%20-%20OTHER%20INFORMATION) [ITEM 1. Legal Proceedings](index=46&type=section&id=ITEM%201.%20Legal%20Proceedings) There are no legal proceedings to report - There are **no legal proceedings** to disclose[133](index=133&type=chunk) [ITEM 1A. Risk Factors](index=46&type=section&id=ITEM%201A.%20Risk%20Factors) There have been no material changes to the risk factors previously disclosed in the Company's Annual Report - **No material changes** in risk factors have occurred since the Annual Report on Form 10-K for the fiscal year ended June 30, 2019[134](index=134&type=chunk) [ITEM 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=46&type=section&id=ITEM%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The Company repurchased 21,500 shares of common stock during the quarter under a new stock repurchase plan Common Stock Repurchases (Quarter Ended Dec 31, 2019) | Period | Total of shares purchased | Average price paid per share | | :--- | :--- | :--- | | October 1-31, 2019 | 0 | $0 | | November 1-30, 2019 | 21,500 | $7.51 | | December 1-31, 2019 | 0 | $0 | - A new stock repurchase plan, authorizing the purchase of up to **150,000 shares** of common stock, was initiated on December 19, 2018[136](index=136&type=chunk) [ITEM 3. Defaults Upon Senior Securities](index=46&type=section&id=ITEM%203.%20Defaults%20Upon%20Senior%20Securities) This item is not applicable - Item 3 (Defaults Upon Senior Securities) is **not applicable**[137](index=137&type=chunk) [ITEM 4. Mine Safety Disclosures.](index=46&type=section&id=ITEM%204.%20Mine%20Safety%20Disclosures.) This item is not applicable - Item 4 (Mine Safety Disclosures) is **not applicable**[138](index=138&type=chunk) [ITEM 5. Other Information](index=46&type=section&id=ITEM%205.%20Other%20Information) There is no other information to report - **No other information** is reported under Item 5[139](index=139&type=chunk) [ITEM 6. Exhibits](index=46&type=section&id=ITEM%206.%20Exhibits) This section lists the exhibits filed with the Form 10-Q, including certifications and XBRL formatted financial statements - Exhibits include the Company's Charter, Bylaws, Specimen Stock Certificate, CEO and CFO Certifications (Sections 302 and 906 of Sarbanes-Oxley Act), and XBRL formatted financial statements[140](index=140&type=chunk) [SIGNATURES](index=48&type=section&id=SIGNATURES) [Signatures](index=48&type=section&id=SIGNATURES) The report is duly signed on behalf of the company by its CEO and CFO on February 14, 2020 - The report was signed by Don D. Jennings, Chief Executive Officer, and R. Clay Hulette, Vice President and Chief Financial Officer, on **February 14, 2020**[144](index=144&type=chunk)

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 (Exact name of registrant as specified in its charter) United States of America 61-1484858 (State or other jurisdiction of (I.R.S. Employer incorporation or organization) Identification No.) 655 Main Street, Hazard, Kentucky 41702 For the quarterly period ended September 30, 2019 OR ☐ TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF TH ...

Financial Position - As of June 30, 2019, Kentucky First had total assets of $330.8 million, deposits of $195.8 million, and stockholders' equity of $66.3 million[16]. - As of June 30, 2019, First Federal of Hazard and First Federal of Kentucky exceeded the required capital amounts to be considered "well capitalized" under Basel III capital rules[81]. - The capital regulations require federal savings banks to meet a minimum Tier 1 leverage ratio of 4.0% and a total capital ratio of 8%[78]. - The new minimum capital requirements under Basel III include a common equity Tier 1 capital ratio of 4.5% and a Tier 1 leverage ratio of 4%[137]. - As of June 30, 2019, the capital levels of First Federal of Hazard and First Federal of Kentucky exceed the required capital amounts to be considered "well capitalized"[137]. Loan Portfolio - At June 30, 2019, the loan portfolio included $235.8 million in residential mortgage loans, representing 83.5% of the total loan portfolio[28]. - Adjustable-rate residential mortgage loans totaled $159.5 million, accounting for 67.7% of the residential mortgage loan portfolio[29]. - Construction loans amounted to $3.8 million, or 1.3% of the total loan portfolio, as of June 30, 2019[34]. - Multi-family loans totaled $15.9 million, representing 5.7% of the total loan portfolio[36]. - Nonresidential loans reached $30.4 million, or 10.8% of the total loan portfolio, as of June 30, 2019[37]. - As of June 30, 2019, commercial non-mortgage loans totaled $2.1 million, representing 0.7% of the total loan portfolio[39]. - Consumer loans amounted to $10.2 million, or 3.6% of the total loan portfolio, with home equity loans making up $8.2 million[40]. - Loans secured by savings deposits totaled 0.4% of the total loan portfolio as of June 30, 2019[41]. - Automobile and unsecured loans accounted for 0.3% of the total loan portfolio[42]. - At June 30, 2019, $9.4 million in loans were being serviced for the Federal Home Loan Bank of Cincinnati[43]. - Approximately 95.7% of the company's loan portfolio is collateralized by real estate, making it vulnerable to fluctuations in the real estate market[130]. Market Conditions - The unemployment rate in Perry County was 5.1% in June 2019, compared to 4.0% in Kentucky and 3.7% in the United States[22]. - The per capita personal income in Perry County averaged $34,532 in 2016, lower than the state average of $38,926 and the national average of $49,246[22]. - The primary employer in Franklin County is government, employing about 36.3% of the workforce, with an unemployment rate of 4.4% in June 2019[24]. - The distressed economy in the company's market area, particularly due to the decline in the coal industry, has resulted in insufficient loan demand[132]. - Changes in tax laws may adversely affect the market for residential properties, potentially reducing demand for mortgage loans[129]. Competition - Competition for deposits and loan origination is significant, with larger institutions posing a challenge due to their greater resources[65]. - As of June 30, 2019, First Federal of Hazard had a deposit market share of 8.3% in Perry County, while its largest competitors had market shares of 37.2%, 29.9%, and 22.6% respectively[66]. - First Federal of Kentucky had a deposit market share of 8.1%, 8.5%, and 20.1% in Franklin, Boyle, and Garrard counties, with Wesbanco Bank, Inc. leading at 26.0%[67]. - As of June 30, 2019, First Federal of Kentucky's principal competitors included Wesbanco Bank, Inc. with assets of $12.5 billion, Boyle Bancorp, Inc. with $552.0 million, and Community Trust Bancorp, Inc. with $102.0 billion[67]. - The company faces intense competition in its market areas, which could pressure profit margins and slow growth[131]. Regulatory Environment - First Federal of Hazard and First Federal of Kentucky are subject to extensive regulation by the Office of the Comptroller of the Currency and the Federal Deposit Insurance Corporation[69]. - The Dodd-Frank Act has increased regulatory burdens and compliance requirements for community banks, including First Federal of Hazard and First Federal of Kentucky[70]. - The Economic Growth, Regulatory Relief and Consumer Protection Act allows for a "Community Bank Leverage Ratio" between 8% and 10% for institutions with less than $10 billion in assets[72]. - The Dodd-Frank Act extends the "source of strength" doctrine to savings and loan holding companies, requiring them to provide support to their subsidiary depository institutions[105]. - The Federal Reserve Board has established consolidated capital requirements for many savings and loan holding companies, including First Federal MHC[104]. Taxation - The federal corporate income tax rate was reduced from 35% to 21% as part of the Tax Cuts and Jobs Act, effective January 1, 2018, impacting the company's tax liabilities[117]. - For fiscal year 2018, the company applied a blended federal statutory tax rate of 27.6% due to the transition from the previous tax rate[116]. - The company recognized an income tax benefit of approximately $63,000 for the fiscal year ended June 30, 2019, due to changes in Kentucky tax law[74]. Internal Controls and Governance - Management assessed the effectiveness of the company's internal control over financial reporting as of June 30, 2019, and concluded that it is effective[176]. - The company has established adequate internal control over financial reporting to ensure reliability and safeguard assets[175]. - There were no changes in internal control over financial reporting that materially affected the company during the quarter ended June 30, 2019[179]. - The company has adopted a Code of Ethics and Business Conduct applicable to all directors, officers, and employees[187]. - The company is classified as a smaller reporting company, which affects certain reporting requirements[166]. Employee and Compensation - The company had 61 full-time employees and three part-time employees as of June 30, 2019, with no collective bargaining representation[68]. - The company has multiple employment agreements with key executives, including Don D. Jennings and R. Clay Hulette, which have been amended and restated[10.1][10.3]. - The company has established a 2005 Equity Incentive Plan to align executive compensation with performance[10.9]. - The company has a Change in Control Severance Compensation Plan in place for its executives[10.6][10.7]. Shareholder Actions - First Federal MHC has successfully obtained member approval to waive dividends from Kentucky First, including a quarterly dividend of $0.10 per common share through May 2020[107]. - First Federal MHC has received approval to waive quarterly dividends totaling $0.40 per share annually, expected to continue through the third quarter of 2020[146]. - The company repurchased a total of 29,800 shares of its common stock during the period from April to June 2019, at an average price of $7.74 per share[164]. - As of June 30, 2019, there are 96,200 shares remaining that may yet be purchased under the announced repurchase program[164]. - The company may face limitations on paying dividends and engaging in share repurchases if capital levels fall below regulatory requirements[138]. Risks and Challenges - The company is subject to risks related to cybersecurity, which could impact operations and customer trust[148]. - Changes to LIBOR may adversely impact the interest rates paid on some loans and financial instruments, creating uncertainty for the company[154]. - Rising interest rates have increased the federal funds rate target to a range of 2.25% - 2.50%, which may negatively impact net interest income[125]. - The implementation of the new accounting standard CECL may require the company to increase its allowance for loan losses, potentially impacting financial condition and results of operations[153]. - The Dodd-Frank Act has significantly restructured the regulation of financial institutions, which may lead to increased compliance costs and operational impacts[134]. Reporting and Compliance - Kentucky First Federal Bancorp's annual report for the fiscal year ended June 30, 2019, includes consolidated financial statements and notes[13]. - The report includes certifications from the Chief Executive Officer and Chief Financial Officer, ensuring compliance with SEC requirements[31.1][31.2]. - The annual report is filed under the Securities Exchange Act of 1934, ensuring transparency and regulatory compliance[203]. - The company has a structured approach to its financial reporting, incorporating XBRL for better data management[101]. - The report includes a list of subsidiaries, indicating the company's operational structure[21]. - The company has incorporated various documents by reference, ensuring comprehensive disclosure of relevant information[198].

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2019 OR ☐ TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE EXCHANGE ACT For the transition period from ____________ to _______________ Commission File Number: 0-51176 KENTUCKY FIRST FEDERAL BANCORP (Exact name of registrant as specified in its charter) United States of America 61-1484858 (St ...