Financial Performance - Net interest income increased to $3,907 thousand for the six months ended December 31, 2024, up 17.4% from $3,328 thousand in the same period of 2023[10]. - Total interest income rose to $9,403 thousand for the six months ended December 31, 2024, a 22.7% increase compared to $7,661 thousand in the prior year[10]. - Net income for the six months ended December 31, 2024, was a loss of $2 thousand, an improvement from a loss of $536 thousand in the same period of 2023[12]. - Non-interest income increased significantly to $308 thousand for the six months ended December 31, 2024, compared to $121 thousand in the same period of 2023, marking a 154.5% increase[10]. - Earnings per share for the six months ended December 31, 2024, was $(0.00), compared to $(0.07) for the same period in 2023[10]. - Total revenue for the current period was $335 million, compared to $304 million in the previous period, representing an increase of approximately 10.2%[96]. - The company reported a net loss of $2,000, an increase of $534,000 or 99.6% from the net loss of $536,000 for the same period in 2023[141]. - Net income for the three months ended December 31, 2024, totaled $13,000, an increase of $374,000 or 103.6% from a net loss of $361,000 in the same period of 2023[152]. Assets and Liabilities - Total assets decreased slightly to $374,208 thousand as of December 31, 2024, from $374,968 thousand on June 30, 2024, representing a decline of 0.2%[9]. - Total liabilities decreased to $326,153 thousand as of December 31, 2024, from $326,971 thousand on June 30, 2024, a reduction of 0.2%[9]. - Shareholders' equity increased to $48,055 thousand as of December 31, 2024, from $47,997 thousand on June 30, 2024, reflecting a growth of 0.1%[9]. - Total cash and cash equivalents increased to $20,976,000 at December 31, 2024, up from $14,584,000 at the same date in 2023[22]. - Total loans receivable amounted to $326,509,000, with $5,170,000 classified as substandard[99]. - Total financial assets carrying value was $330,234,000 as of December 31, 2024, with a fair value of $317,845,000[109]. Credit Quality and Loan Performance - The provision for credit losses remained stable at $15 thousand for both the six months ended December 31, 2024, and 2023[10]. - The allowance for credit losses increased by $497,000 due to the adoption of ASC 326, impacting retained earnings by a decrease of $414,000[41][42]. - Nonaccrual loans totaled $2,817,000 as of December 31, 2024, compared to $3,647,000 on June 30, 2024, indicating a decrease of approximately 23%[88]. - The total past due loans as of December 31, 2024, amounted to $332,375,000, with $9,702,000 classified as past due over 30 days[90]. - The company categorizes loans into risk categories using a scale from 1 (Highest Pass) to 9 (Loss) based on borrowers' ability to service their debt[67]. - The company believes the ACL as of December 31, 2024, is adequate based on ongoing evaluations[64]. - The total amount of loans in the substandard category across all types was $4.055 million, which is relatively low compared to the total loan portfolio[95]. Interest and Yield - The net interest margin for the six months ended December 31, 2024, was 2.15%, compared to 1.92% for the same period in 2023[123]. - The average rate earned on interest-earning assets increased by 74 basis points to 5.17%, contributing to the increase in interest income[143]. - The average balance of loans for the six months ended December 31, 2024, was $334.634 million, with interest income of $8.702 million and a yield of 5.20%[123]. - The net interest spread increased from 1.44% to 1.63% for the six-month period ended December 31, 2024[146]. Regulatory and Compliance - First Federal of Kentucky is required to maintain a common equity tier 1 capital ratio of at least 9.0%, a tier 1 capital ratio of at least 11.0%, a total capital ratio of at least 12.0%, and a leverage ratio of at least 9.0% as per the individual minimum capital requirements imposed by the OCC[117]. - The company aims to address deficiencies identified in the formal written agreement with the OCC and is committed to implementing corrective actions[118]. - The company announced the indefinite suspension of dividend payments as of January 16, 2024, due to regulatory requirements and capital ratio constraints[173]. Miscellaneous - The company reported unrealized holding gains on available-for-sale securities of $80,000 for the six months ended December 31, 2024[110]. - The report includes comprehensive financial statements, which are crucial for assessing the company's financial health[101]. - The filing date of February 14, 2025, indicates the timeliness of the financial disclosures[191].
Kentucky First Federal Bancorp(KFFB) - 2025 Q2 - Quarterly Report