Kentucky First Federal Bancorp(KFFB) - 2025 Q4 - Annual Results

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