Financial Performance - The company reported a net loss of $643,000 for the nine months ended March 31, 2024, compared to a net income of $891,000 for the same period in 2023[12]. - Earnings per share for the nine months ended March 31, 2024, was $(0.08), compared to $0.11 for the same period in 2023[12]. - Net income for the nine-month period ended March 31, 2024, was $(643,000), a decrease of $1.5 million or 172.2% from the same period in 2023[131]. - Non-interest income decreased by $37,000 or 15.7% to $199,000 for the nine months ended March 31, 2024, mainly due to a decrease in bank-related fees and services[139]. - The company's net interest margin for the nine months ended March 31, 2024, was 1.94%, down from 2.87% in the same period of 2023[115]. - Net interest income after provision for credit losses was $5,105,000 for the nine months ended March 31, 2024, down from $6,812,000 in the prior year, a decrease of 25.0%[12]. - Net interest income decreased by $1.8 million or 26.5% to $5.1 million, primarily due to interest expense increasing by $4.4 million or 193.0%[132]. - The net interest spread decreased from 2.66% for the prior year to 1.46% for the nine-month period ended March 31, 2024[136]. Assets and Liabilities - Total assets increased to $369,100,000 as of March 31, 2024, up from $349,022,000 on June 30, 2023, representing a growth of approximately 5.8%[9]. - Total liabilities increased to $320,086,000 as of March 31, 2024, from $298,311,000 as of June 30, 2023, marking a growth of approximately 7.3%[9]. - Cash and cash equivalents rose to $15,423,000 as of March 31, 2024, compared to $8,167,000 as of June 30, 2023, an increase of 89.5%[9]. - Deposits increased to $246,104,000 as of March 31, 2024, compared to $226,309,000 at June 30, 2023[108]. - The company's total assets increased by $20.1 million, or 5.8%, to $369.1 million compared to June 30, 2023[119]. - Total liabilities increased by $21.8 million, or 7.3%, to $320.1 million at March 31, 2024, driven by an increase in deposits of $19.8 million or 8.7%[126]. Equity and Dividends - As of March 31, 2024, the total equity of Kentucky First Federal Bancorp decreased to $49,014 thousand from $51,139 thousand as of March 31, 2023, reflecting a decline of approximately 4.2%[21]. - Shareholders' equity decreased by $1.7 million or 3.3% to $49.0 million at March 31, 2024, primarily due to the adoption of the CECL accounting standard and dividends paid[128]. - Dividends per share decreased to $0.20 for the nine months ended March 31, 2024, down from $0.30 in the same period of 2023[12]. - The company paid $671 thousand in dividends on common stock during the nine months ended March 31, 2024, down from $1,026 thousand in the same period of 2023[24]. Loan Portfolio - Net loans increased to $328,134,000 as of March 31, 2024, compared to $313,807,000 as of June 30, 2023, reflecting a rise of about 4.6%[9]. - The total loan portfolio amounted to $328,134,000, an increase from $313,807,000 as of June 30, 2023, representing a growth of approximately 4.2%[55]. - The residential real estate segment, particularly one- to four-family loans, saw an increase to $254,789,000 from $240,076,000, marking a growth of approximately 6.1%[55]. - Multi-family loans decreased to $15,755,000 from $19,067,000, reflecting a decline of about 17.9%[55]. - The construction loan segment increased to $14,239,000 from $12,294,000, showing a growth of approximately 15.8%[55]. - Home equity loans increased to $10,326,000 from $9,217,000, representing a growth of approximately 12.0%[55]. - The total amount of loans on deposits decreased to $795,000 from $855,000, a decline of about 7.0%[55]. Credit Quality and Allowance for Losses - The allowance for credit losses (ACL) increased to $2,106,000 from $1,634,000, indicating a rise of about 28.8%[55]. - The provision for credit losses for the nine months ended March 31, 2024, was a recovery of $13 thousand, compared to a recovery of $113 thousand in the same period of 2023[24]. - The company believes the ACL as of March 31, 2024, is adequate based on ongoing monitoring and evaluations[60]. - The total allowance for loan losses as of March 31, 2024, was $2,106,000, with a significant portion attributed to residential real estate loans[80]. - The recorded investment in nonaccrual loans was $4,819,000, with loans past due over 90 days still on accrual totaling $408,000[86]. - The total past due loans as of March 31, 2024, amounted to $7,176,000, with $323,064,000 in loans not past due, resulting in a total of $330,240,000[89]. - The aging of past due loans as of March 31, 2024, showed $5,948,000 in one- to four-family loans past due, with a total of $254,789,000 in loans outstanding[89]. Securities and Fair Value - As of March 31, 2024, the total amortized cost of available-for-sale securities was $10,752,000, with gross unrealized losses of $527,000, resulting in a fair value of $10,225,000[52]. - Fair value of available-for-sale securities decreased to $10,225,000 as of March 31, 2024, from $12,080,000 at June 30, 2023[105]. - The company's other comprehensive loss was $396,000 at the end of March 2024, reflecting unrealized losses on available-for-sale securities[109]. - Unrealized holding gains on available-for-sale securities for the nine months ended March 31, 2024, were $42,000, compared to a loss of $480,000 in the same period of 2023[109]. Risk Management and Internal Controls - The Company categorizes loans into risk categories based on borrowers' ability to service their debt, with classifications including Special Mention, Substandard, and Doubtful[91][92][93]. - The company continues to maintain a conservative approach to risk management, with minimal special mention and substandard loans across its loan portfolio[94][95]. - The Company's disclosure controls and procedures were evaluated as effective by the CEO and CFO, ensuring timely and accurate reporting as required by the SEC[155]. - There were no significant changes in the Company's internal control over financial reporting during the quarter ended March 31, 2024[156]. Other Information - The company has completed its stock repurchase program, having repurchased up to 150,000 shares initiated on February 3, 2021[161]. - There were no legal proceedings reported during the quarter[158]. - The Company has not disclosed any changes to risk factors that could materially affect its business since the last annual report[159].
Kentucky First Federal Bancorp(KFFB) - 2024 Q3 - Quarterly Report