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 ...

FORM 10-Q UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 (Mark One) ☒ QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended December 31, 2018 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 ...