Financial Performance - Net interest income rose to $1,870,000 for the three months ended September 30, 2024, up from $1,670,000 in the same period of 2023, representing an increase of 11.99%[9] - Total interest income increased to $4,620,000 in 2024 from $3,734,000 in 2023, marking a growth of 23.73%[9] - Non-interest income grew to $137,000 in 2024, compared to $74,000 in 2023, which is an increase of 85.14%[9] - The company reported a net loss of $15,000 for the three months ended September 30, 2024, a significant improvement from a net loss of $175,000 in the same period of 2023[10] - Comprehensive income for the three months ended September 30, 2024, was $226,000, compared to a comprehensive loss of $313,000 in the same period of 2023, showing a turnaround[10] - Net loss for the three months ended September 30, 2024, was $15,000 compared to a net loss of $175,000 for the same period in 2023, representing an improvement of 91.43%[14] Assets and Liabilities - Total assets increased to $375,650,000 as of September 30, 2024, compared to $374,968,000 on June 30, 2024, reflecting a growth of 0.18%[7] - Total liabilities increased to $327,427,000 as of September 30, 2024, compared to $326,971,000 on June 30, 2024, reflecting a growth of 0.14%[7] - Shareholders' equity rose to $48,223,000 as of September 30, 2024, compared to $47,997,000 on June 30, 2024, indicating an increase of 0.47%[7] Credit Losses and Provisions - The provision for credit losses was $15,000 for the three months ended September 30, 2024, compared to $6,000 in the same period of 2023, representing a 150% increase[9] - 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[31] - The allowance for credit losses on loans increased by $497,000, totaling $2,131,000 as of September 30, 2024[34] - The total ACL for the three months ended September 30, 2024, is $2,141,000, with a provision for losses of $15,000 during the period[72] Cash Flow and Investments - Net cash used in operating activities was $1,407,000 for the three months ended September 30, 2024, compared to $570,000 in the same period of 2023, reflecting a significant increase in cash outflow[14] - Net cash provided by investing activities was $213,000 in Q3 2024, a recovery from a net cash outflow of $3,545,000 in Q3 2023[14] - Net cash provided by financing activities was $176,000 in Q3 2024, a decrease from $8,534,000 in Q3 2023, indicating a substantial reduction in cash inflow[14] - Ending cash and cash equivalents increased to $17,269,000 as of September 30, 2024, compared to $12,586,000 at the end of Q3 2023, showing a growth of 37.5%[14] Loan Portfolio and Quality - The total loan portfolio amounted to $335,316,000 as of September 30, 2024, slightly up from $335,152,000 as of June 30, 2024[50] - The company’s residential real estate loans included $255,522,000 in one- to four-family loans as of September 30, 2024, down from $256,216,000 as of June 30, 2024[50] - Nonaccrual loans as of September 30, 2024, included $2,176,000 in one- to four-family loans and $1,911,000 in nonresidential real estate loans, with total nonaccrual loans at $4,087,000[78] - The total past due loans as of September 30, 2024, amounted to $10,664,000, with $6,625,000 in one- to four-family loans and $2,221,000 in nonresidential real estate loans[80] Regulatory and Compliance - First Federal of Kentucky is under a formal written agreement with the OCC, requiring it to maintain specific capital ratios and implement corrective actions[116] - The Company announced the indefinite suspension of quarterly dividends, with future payments dependent on regulatory approvals and financial conditions[156] - First Federal MHC has received Federal Reserve Board approval to waive quarterly dividends totaling $0.40 per share annually, effective until the third quarter of 2024[157] Future Outlook - Future outlook remains positive with ongoing monitoring of risk ratings and charge-offs to ensure financial stability[88] - The company continues to evaluate credit quality based on performing status for loans not rated individually[86] - The company is actively monitoring loan performance across various categories to mitigate potential risks and ensure financial stability[94]
Kentucky First Federal Bancorp(KFFB) - 2025 Q1 - Quarterly Report