What changed in this filing

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Item 1. Financial Statements

2022-05-16 compared with 2022-02-14 · 428 added, 347 removed, 354 unchanged (69% of the section changed)

Financial Statements

First Federal Bancorp

CONSOLIDATED BALANCE SHEETS

thousands, except share data)

Kentucky First Federal Bancorp

CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands, except share data)

Cash and due from financial institutions

4 unchanged sentences

Securities available-for-sale

Securities held-to-maturity, at amortized cost- approximate fair value of $ 421 and $ 476 at December 31, 2021 and June 30, 2021, respectively

Securities held-to-maturity, at amortized cost- approximate fair value of $ 353 and $ 476 at March 31, 2022 and June 30, 2021, respectively

Loans held for sale

Loans, net of allowance of $ 1,603 and $ 1,622 at December 31, 2021 and June 30, 2021, respectively

Loans, net of allowance of $ 1,484 and $ 1,622 at March 31, 2022 and June 30, 2021, respectively

Real estate owned, net

20 unchanged sentences

Retained earnings

Unearned employee stock ownership plan (ESOP), 917 shares and 10,255 shares at December 31, 2021 and June 30, 2021, respectively

Treasury shares at cost, 377,849 and 369,349 common shares at December 31, 2021 and June 30, 2021, respectively

Unearned employee stock ownership plan (ESOP), 688 shares and 10,255 shares at March 31, 2022 and June 30, 2021, respectively

Treasury shares at cost, 377,849 and 369,349 common shares at March 31, 2022 and June 30, 2021, respectively

Accumulated other comprehensive income

1 unchanged sentence

Total liabilities and shareholders’ equity

accompanying notes to condensed consolidated financial statements.

First Federal Bancorp

CONSOLIDATED STATEMENTS OF OPERATIONS

in thousands, except per share data)

Six months ended

See accompanying notes to condensed consolidated

financial statements.

Kentucky First Federal Bancorp

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Dollars in thousands, except per share data)

Nine months ended

Three months ended

10 unchanged sentences

Net interest income

Provision for loan losses

Provision (credit) for loan losses

Net interest income after provision for loan losses

2 unchanged sentences

Net gain on sales of loans

Net gain (loss) on sales of real estate owned

Net loss on sales of real estate owned

Valuation adjustment for real estate owned

2 unchanged sentences

Employee compensation and benefits

Data processing

Occupancy and equipment

2 unchanged sentences

Outside service fees

Data processing

Auditing and accounting

Franchise and other taxes

Regulatory Assessments

Foreclosure and real estate owned expenses (net)

Franchise and other taxes

Total non-interest expense

4 unchanged sentences

DIVIDENDS PER SHARE

accompanying notes to condensed consolidated financial statements.

First Federal Bancorp

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

Six months ended

See accompanying notes to condensed consolidated

financial statements.

Kentucky First Federal Bancorp

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE

(In thousands)

Nine months ended

Three months ended

2 unchanged sentences

Comprehensive income

accompanying notes to condensed consolidated financial statements.

First Federal Bancorp

STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY

the six months ended

amounts in thousands, except per share data)

See accompanying notes to condensed consolidated

financial statements.

Kentucky First Federal Bancorp

CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’

For the nine months ended

(Dollar amounts in thousands, except per share

March 31, 2022

comprehensive

income (loss)

Balance at June 30, 2021

2 unchanged sentences

Cash dividends of $ 0.30 per common share

Balance at December 31, 2021

stock ownership

Balance at March 31, 2022

March 31, 2021

comprehensive

income (loss)

Balance at June 30, 2020

3 unchanged sentences

Cash dividends of $ 0.30 per common share

Balance at December 31, 2020

accompanying notes to condensed consolidated financial statements.

First Federal Bancorp

STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY

the three months ended

amounts in thousands, except per share data)

Balance at March 31, 2021

See accompanying notes to condensed consolidated

financial statements.

Kentucky First Federal Bancorp

CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’

For the three months ended

(Dollar amounts in thousands, except per share

March 31, 2022

comprehensive

Balance at September 30, 2021

Balance at December 31, 2021

Allocation of ESOP shares

Acquisition of shares for Treasury

Cash dividends of $ 0.10 per common share

Balance at December 31, 2021

Balance at March 31, 2022

March 31, 2021

comprehensive

Balance at September 30, 2020

Balance at December 31, 2020

Allocation of ESOP shares

1 unchanged sentence

Cash dividends of $ 0.10 per common share

Balance at December 31, 2020

accompanying notes to condensed consolidated financial statements.

First Federal Bancorp

CONSOLIDATED STATEMENTS OF CASH FLOWS

Six months ended

Balance at March 31, 2021

See accompanying notes to condensed consolidated

financial statements.

Kentucky First Federal Bancorp

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands)

Nine months ended

Cash flows from operating activities:

5 unchanged sentences

Net gain on sale of loans

Net (gain) loss on sale of real estate owned

Net loss on sale of real estate owned

Valuation adjustments of real estate owned

1 unchanged sentence

Earnings on bank-owned life insurance

Provision for loan losses

Provision (credit) for loan losses

Origination of loans held for sale

23 unchanged sentences

Dividends paid on common stock

Net cash provided by financing activities

Net cash provided by (used in) financing activities

Net increase in cash and cash equivalents

1 unchanged sentence

Ending cash and cash equivalents

accompanying notes to condensed consolidated financial statements.

First Federal Bancorp

CONSOLIDATED STATEMENTS OF CASH FLOWS (CONTINUED)

Six months ended

See accompanying notes to condensed consolidated

financial statements.

Kentucky First Federal Bancorp

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands)

Nine months ended

Supplemental disclosure of cash flow information:

4 unchanged sentences

Loans made on sale of real estate owned

accompanying notes to condensed consolidated financial statements.

First Federal Bancorp

TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

Kentucky First Federal Bancorp (“Kentucky First” or the “Company”) was incorporated under federal law in March

2005 and is the mid-tier holding company for First Federal Savings and Loan Association of Hazard, Hazard, Kentucky (“First Federal

of Hazard”) and Frankfort First Bancorp, Inc.

See accompanying notes to condensed consolidated

financial statements.

Kentucky First Federal Bancorp

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

March 31, 2022

The Kentucky First Federal Bancorp (“Kentucky

First” or the “Company”) was incorporated under federal law in March 2005, and is the mid-tier holding company for

First Federal Savings and Loan Association of Hazard, Hazard, Kentucky (“First Federal of Hazard”) and Frankfort First Bancorp,

(“Frankfort First”).

Frankfort First is the holding company for First

Federal Savings Bank of Kentucky, Frankfort, Kentucky (“First Federal of Kentucky”).

First Federal of Hazard and First Federal

of Kentucky (hereinafter collectively the “Banks”) are Kentucky First’s primary operations, which consist of operating

the Banks as two independent, community-oriented savings institutions.

December 2012, the Company acquired CKF Bancorp, Inc., a savings and loan holding company which operated three banking locations in Boyle

and Garrard Counties in Kentucky.

In accounting for the transaction, the assets and liabilities of CKF Bancorp were recorded on the books

of First Federal of Kentucky in accordance with accounting standard ASC 805, Business Combinations.

Frankfort First is the holding company for First Federal Savings Bank of Kentucky, Frankfort, Kentucky

(“First Federal of Kentucky”).

First Federal of Hazard and First Federal of Kentucky (hereinafter collectively the “Banks”)

are Kentucky First’s primary operations, which consist of operating the Banks as two independent, community-oriented savings institutions.

In December 2012, the Company acquired CKF Bancorp,

Inc., a savings and loan holding company which operated three banking locations in Boyle and Garrard Counties in Kentucky.

In accounting

for the transaction, the assets and liabilities of CKF Bancorp were recorded on the books of First Federal of Kentucky in accordance

with accounting standard ASC 805, Business Combinations.

Basis of Presentation

6 unchanged sentences

of the condensed consolidated financial statements have been included.

The results of operations for the three-month and six-month periods

ended December 31, 2021, are not necessarily indicative of the results which may be expected for an entire fiscal year.

The condensed

consolidated balance sheet as of June 30, 2021, has been derived from the audited consolidated balance sheet as of that date.

information and note disclosures normally included in the Company’s annual financial statements prepared in accordance with U.S.

generally accepted accounting principles have been condensed or omitted.

These condensed consolidated financial statements should be read

in conjunction with the consolidated financial statements and notes thereto included in the Company’s Form 10-K annual report for

2021 filed with the Securities and Exchange Commission.

of Consolidation - The consolidated financial statements include the accounts of the Company, Frankfort First, and its wholly-owned

banking subsidiaries, First Federal of Hazard and First Federal of Kentucky (collectively hereinafter “the Banks”).

All intercompany

transactions and balances have been eliminated in consolidation.

Reclassifications

- Certain amounts presented in prior periods may have been reclassified to conform to the current period presentation.

Such reclassifications

had no impact on prior years’ net income or shareholders’ equity.

First Federal Bancorp

TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

The results of operations for the nine-month period ended March

31, 2022, are not necessarily indicative of the results which may be expected for an entire fiscal year.

The condensed consolidated balance

sheet as of June 30, 2021, has been derived from the audited consolidated balance sheet as of that date.

Certain information and note

disclosures normally included in the Company’s annual financial statements prepared in accordance with U.S.

generally accepted

accounting principles have been condensed or omitted.

These condensed consolidated financial statements should be read in conjunction

with the consolidated financial statements and notes thereto included in the Company’s Form 10-K annual report for 2021 filed with

the Securities and Exchange Commission.

Principles of Consolidation - The

consolidated financial statements include the accounts of the Company, Frankfort First, and its wholly-owned banking subsidiaries, First

Federal of Hazard and First Federal of Kentucky (collectively hereinafter “the Banks”).

All intercompany transactions and

balances have been eliminated in consolidation.

Kentucky First Federal Bancorp

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

March 31, 2022

Basis of Presentation (continued)

Accounting Standards

ASC 326 - In June 2016, the FASB issued ASU No.

New Accounting Standards

FASB ASC 326 - In June 2016,

the FASB issued ASU No.

2016-13, Financial Instruments – Credit Losses (Topic 326):

of Credit Losses on Financial Instruments.

The final standard will change estimates for credit losses related to financial assets

measured at amortized cost such as loans, held-to-maturity debt securities, and certain other contracts.

For estimating credit losses,

the FASB is replacing the incurred loss model with an expected loss model, which is referred to as the current expected credit loss (CECL)

The Company will now use forward-looking information to enhance its credit loss estimates.

Measurement of Credit Losses on Financial

The final standard will change estimates for credit losses related to financial assets measured at amortized cost

such as loans, held-to-maturity debt securities, and certain other contracts.

For estimating credit losses, the FASB is replacing

the incurred loss model with an expected loss model, which is referred to as the current expected credit loss (CECL) model.

Company will now use forward-looking information to enhance its credit loss estimates.

The amendment requires enhanced disclosures

1 unchanged sentence

credit losses, as well as the credit quality and underwriting standards of our portfolio.

The largest impact to the Company will be on

its allowance for loan and lease losses, although the ASU also amends the accounting for credit losses on available-for-sale debt securities

and purchased financial assets with credit deterioration.

The standard is effective for public companies for annual periods and interim

periods within those annual periods beginning after December 15, 2019.

However, the FASB has delayed the implementation of the ASU for

smaller reporting companies until years beginning after December 15, 2022, or in the Company’s case the fiscal year beginning July

ASU 2016-13 will be applied through a cumulative effect adjustment to retained earnings (modified-retrospective approach),

except for debt securities for which an other-than-temporary impairment had been recognized before the effective date.

A prospective

transition approach is required for these debt securities.

We have formed a functional committee that is assessing our data and system

needs and are evaluating the impact of adopting the new guidance.

Management is in the final stages of selecting a third-party vendor

to partner with and expects to begin working with the successful vendor on data validation and implementation efforts over the next several

We expect to recognize a one-time cumulative effect adjustment to the allowance for loan losses as of the beginning of the first

reporting period in which the new standard is effective, but cannot yet determine the magnitude of any such one-time adjustment or the

overall impact of the new guidance on the consolidated financial statements.

However, the Company does expect ASU 2016-13 to add complexity

and costs to its current credit loss evaluation process.

ASC 740 – In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740), Simplifying the Accounting for

Income Taxes.

The amendments in this ASU removes certain exceptions for recognizing deferred taxes for investments, performing

intraperiod allocation and calculating income taxes during interim periods.

The ASU also adds guidance to reduce complexity in

certain areas, including recognizing deferred taxes for tax goodwill and allocating taxes to members of a consolidated group.

Company adopted ASU 2019-12 effective July 1, 2021, with no material impact to our consolidated financial statements.

accounting standards that have been issued or proposed by the FASB or other standards-setting bodies are not expected to have a material

impact on the Company’s financial position, results of operations or cash flows.

First Federal Bancorp

TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

The largest impact to the Company will be

on its allowance for loan and lease losses, although the ASU also amends the accounting for credit losses on available-for-sale debt

securities and purchased financial assets with credit deterioration.

The standard is effective for public companies for annual

periods and interim periods within those annual periods beginning after December 15, 2019.

However, the FASB has delayed the

implementation of the ASU for smaller reporting companies until years beginning after December 15, 2022, or in the Company’s

case the fiscal year beginning July 1, 2023.

ASU 2016-13 will be applied through a cumulative effect adjustment to retained

earnings (modified-retrospective approach), except for debt securities for which an other-than-temporary impairment had been

recognized before the effective date.

A prospective transition approach is required for these debt securities.

We have formed a

functional committee that is assessing our data and system needs and are evaluating the impact of adopting the new guidance.

Management is in the final stages of selecting a third-party vendor to partner with and expects to begin working with the successful

vendor on data validation and implementation efforts over the next several months.

We expect to recognize a one-time cumulative

effect adjustment to the allowance for loan losses as of the beginning of the first reporting period in which the new standard is

effective, but cannot yet determine the magnitude of any such one-time adjustment or the overall impact of the new guidance on the

consolidated financial statements.

However, the Company does expect ASU 2016-13 to add complexity and costs to its current credit

loss evaluation process.

FASB ASC 740– In December

2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740), Simplifying the Accounting for Income Taxes.

The amendments in this

ASU removes certain exceptions for recognizing deferred taxes for investments, performing intraperiod allocation and calculating income

taxes during interim periods.

The ASU also adds guidance to reduce complexity in certain areas, including recognizing deferred taxes

for tax goodwill and allocating taxes to members of a consolidated group.

For public business entities, the amendments in this ASU are

effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2020, or July 1, 2021, with respect

to the Company.

Early adoption is permitted.

We did not have a significant impact to our consolidated financial statements.

Other accounting standards that have been issued

or proposed by the FASB or other standards-setting bodies are not expected to have a material impact on the Company’s financial

position, results of operations or cash flows.

Kentucky First Federal Bancorp

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

March 31, 2022

Earnings Per Share

earnings per share is computed taking into consideration common shares outstanding and dilutive potential common shares to be issued

or released under the Company’s share-based compensation plans.

The factors used in the basic and diluted earnings per share computations

Six months ended

Diluted earnings per share is computed taking

into consideration common shares outstanding and dilutive potential common shares to be issued or released under the Company’s

share-based compensation plans.

The factors used in the basic and diluted earnings per share computations follow:

Nine months ended

Three months ended

(in thousands)

Net income allocated to common shareholders, basic and diluted

Six months ended

Net income allocated to common shareholders, basic

Nine months ended

Three months ended

Weighted average common shares outstanding, basic and diluted

were no stock option shares outstanding for the six- or three-month periods ended December 31, 2021 and 2020.

Weighted average common shares outstanding, basic

There were no stock option shares outstanding

for the nine- or three-month periods ended March 31, 2022 and 2021.

Investment Securities

following table summarizes the amortized cost and fair value of securities available-for-sale and securities held-to-maturity at December

31, 2021 and June 30, 2021, the corresponding amounts of gross unrealized gains recognized in accumulated other comprehensive income

and gross unrecognized gains and losses:

December 31, 2021

The following table summarizes the amortized

cost and fair value of securities available-for-sale and securities held-to-maturity at March 31, 2022 and June 30, 2021, the corresponding

amounts of gross unrealized gains recognized in accumulated other comprehensive income and gross unrecognized gains and losses:

March 31, 2022

(in thousands)

9 unchanged sentences

Agency mortgage-backed:

First Federal Bancorp

TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

Kentucky First Federal Bancorp

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

March 31, 2022

Investment Securities (continued)

pledged securities (including overnight and time deposits in other financial institutions) totaled $ 1.7 million and $ 1.8 million at December

31, 2021 and June 30, 2021, respectively.

evaluated securities in unrealized loss positions for evidence of other-than-temporary impairment, considering duration, severity, financial

condition of the issuer, our intention to sell or requirement to sell.

Those securities were agency mortgage-backed securities, which

carry a very limited amount of risk.

Also, we have no intention to sell nor feel that we will be compelled to sell such securities before

Based on our evaluation, no impairment has been recognized through earnings.

Our pledged securities (including overnight and

time deposits in other financial institutions) totaled $ 1.5 million and $ 1.8 million at March 31, 2022 and June 30, 2021, respectively.

We evaluated securities in unrealized loss positions

for evidence of other-than-temporary impairment, considering duration, severity, financial condition of the issuer, our intention to

sell or requirement to sell.

Those securities were agency mortgage-backed securities, which carry a very limited amount of risk.

we have no intention to sell nor feel that we will be compelled to sell such securities before maturity.

Based on our evaluation, no

impairment has been recognized through earnings.

Loans receivable

composition of the loan portfolio was as follows:

The composition of the loan portfolio was as

(in thousands)

6 unchanged sentences

Allowance for loan losses

amounts above include net deferred loan costs of $ 270,000 and $ 167,000 as of December 31, 2021 and June 30, 2021, respectively.

First Federal Bancorp

TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

The amounts above include net deferred loan costs of $ 269,000 and $ 167,000

as of March 31, 2022, and June 30, 2021, respectively.

Kentucky First Federal Bancorp

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

March 31, 2022

Loans receivable (continued)

following table presents the activity in the allowance for loan losses by portfolio segment for the six months ended December 31, 2021:

The following table presents the activity in

the allowance for loan losses by portfolio segment for the nine months ended March 31, 2022:

(in thousands)

Provision for

Residential real estate:

4 unchanged sentences

Loans on deposits

following table presents the activity in the allowance for loan losses by portfolio segment for the three months ended December 31, 2021:

The following table presents the activity in

the allowance for loan losses by portfolio segment for the three months ended March 31, 2022:

(in thousands)

Provision for

Residential real estate:

4 unchanged sentences

Loans on deposits

First Federal Bancorp

TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

Kentucky First Federal Bancorp

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

March 31, 2022

Loans receivable (continued)

following table presents the activity in the allowance for loan losses by portfolio segment for the six months ended December 31, 2020:

The following table presents the activity in

the allowance for loan losses by portfolio segment for the nine months ended March 31, 2021:

(in thousands)

Provision for

Residential real estate:

4 unchanged sentences

Loans on deposits

following table presents the activity in the allowance for loan losses by portfolio segment for the three months ended December 31, 2020:

The following table presents the activity in

the allowance for loan losses by portfolio segment for the three months ended March 31, 2021:

(in thousands)

Provision for

Residential real estate:

4 unchanged sentences

Loans on deposits

First Federal Bancorp

TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

Kentucky First Federal Bancorp

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

March 31, 2022

Loans receivable (continued)

following table presents the balance in the allowance for loan losses and the recorded investment in loans by portfolio class and based

on impairment method as of December 31, 2021.

The following table presents the balance in the

allowance for loan losses and the recorded investment in loans by portfolio class and based on impairment method as of March 31, 2022.

The recorded investment in loans excludes accrued interest receivable due to immateriality.

March 31, 2022:

(in thousands)

acquired with

credit quality

Unpaid principal balance

and recorded investment

Ending allowance attributed to loans

Loans individually evaluated for impairment:

8 unchanged sentences

Loans on deposits

First Federal Bancorp

TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

Kentucky First Federal

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

March 31, 2022

Loans receivable (continued)

following tables present the balance in the allowance for loan losses and the recorded investment in loans by portfolio class and based

on impairment method as of June 30, 2021.

The following tables present the balance in the

allowance for loan losses and the recorded investment in loans by portfolio class and based on impairment method as of June 30, 2021.

June 30, 2021:

(in thousands)

acquired with

Loans individually evaluated

Loans acquired with deteriorated

credit quality

attributed to

Unpaid principal balance

recorded investment

Ending allowance attributed to loans

Loans individually evaluated for impairment:

9 unchanged sentences

Loans on deposits

First Federal Bancorp

TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

Kentucky First Federal

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

March 31, 2022

Loans receivable (continued)

following table presents interest income on loans individually evaluated for impairment by class of loans for the six months ended December

The following table presents interest income

on loans individually evaluated for impairment by class of loans for the nine months ended March 31:

(in thousands)

2 unchanged sentences

Nonresidential real estate

Consumer and other

Purchased credit-impaired loans

1 unchanged sentence

One- to four-family

following table presents interest income on loans individually evaluated for impairment by class of loans for the three months ended

The following table presents interest income

on loans individually evaluated for impairment by class of loans for the three months ended March 31:

(in thousands)

8 unchanged sentences

Nonresidential real estate

Consumer and other

Purchased credit-impaired loans

1 unchanged sentence

One- to four-family

First Federal Bancorp

TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

Kentucky First Federal Bancorp

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

March 31, 2022

Loans receivable (continued)

following table presents the recorded investment in nonaccrual and loans past due over 90 days still on accrual by class of loans as

of December 31, 2021 and June 30, 2021:

December 31, 2021

The following table presents the recorded investment

in nonaccrual and loans past due over 90 days still on accrual by class of loans as of March 31, 2022 and June 30, 2021:

March 31, 2022

June 30, 2021

7 unchanged sentences

Nonresidential real estate and land

to four-family loans in process of foreclosure totaled $ 479,000 and $ 577,000 at December 31, 2021 and June 30, 2021, respectively.

Debt Restructurings:

Troubled Debt Restructuring (“TDR”) is the situation where the Bank grants a concession to the borrower that the Banks would

not otherwise have considered due to the borrower’s financial difficulties.

Commercial and industrial

One- to four-family loans in process of foreclosure

totaled $ 692,000 and $ 577,000 at March 31, 2022 and June 30, 2021, respectively.

Troubled Debt Restructurings:

A Troubled Debt Restructuring (“TDR”)

is the situation where the Bank grants a concession to the borrower that the Banks would not otherwise have considered due to the borrower’s

financial difficulties.

All TDRs are considered “impaired.”

December 2020, Congress amended the CARES Act through the Consolidated Appropriation Act of 2021, which provided additional COVID-19

relief to American families and businesses, including extending the TDR relief under the CARES Act until the earlier of December 31,

2021 or 60 days following the termination of the national emergency.

The relief can only be applied to modifications for borrowers that

were not more than 30 days past due as of December 31, 2019.

In December 2020, Congress amended the CARES

Act through the Consolidated Appropriation Act of 2021, which provided additional COVID-19 relief to American families and businesses,

including extending the TDR relief under the CARES Act until the earlier of December 31, 2021 or 60 days following the termination of

the national emergency.

The relief can only be applied to modifications for borrowers that were not more than 30 days past due as of

December 31, 2019.

The Company elected to adopt these provisions of the CARES Act.

to the COVID-19 pandemic and the widespread economic downturn that immediately resulted, the Company adopted a loan forbearance plan

in which then-current affected borrowers could request deferral of their loan payments for a period of three months.

A total of $ 815,000

in loans were accepted into the plan for the twelve months ended June 30, 2021.

At June 30, 2021 all of those loans had reached the end

of their three-month deferral data period and returned to regular payment status.

December 31, 2021 and June 30, 2021, the Company had $ 1.6 million and $ 1.7 million of loans classified as TDRs, respectively.

TDRs at December 31, 2021, approximately 27.2 % were related to the borrower’s completion of Chapter 7 bankruptcy proceedings with

no reaffirmation of the debt to the Banks.

the six- and three-months ended December 31, 2021, the Company restructured no loans as TDRs.

No TDRs defaulted during the six-month

periods ended December 31, 2021 or 2020.

First Federal Bancorp

TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

In response to the COVID-19 pandemic and the widespread

economic downturn that immediately resulted, the Company adopted a loan forbearance plan in which then-current affected borrowers could

request deferral of their loan payments for a period of three months.

A total of $ 815,000 in loans were accepted into the plan for the

twelve months ended June 30, 2021.

At June 30, 2021 all of those loans had reached the end of their three-month deferral data period

and returned to regular payment status.

At March 31, 2022 and June 30, 2021, the Company

had $ 1.4 million and $ 1.7 million of loans classified as TDRs, respectively.

Of the TDRs at March 31, 2022, approximately 24.9 % were

related to the borrower’s completion of Chapter 7 bankruptcy proceedings with no reaffirmation of the debt to the Banks.

During the nine- and three-months ended March

31, 2022, the Company restructured no loans as TDRs.

No TDRs defaulted during the nine-month periods ended March 31, 2022, or 2021.

Kentucky First Federal Bancorp

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

March 31, 2022

Loans receivable (continued)

the six months ended December 31, 2020, the Company had two loans, which were associated with a single borrower and were both secured

by a single-family residence, restructured as TDRs.

The loans were classified as TDRs pursuant to court action under Chapter 7 bankruptcy

proceedings without the borrower reaffirming the debt personally.

following table summarizes TDR loan modifications that occurred during the six months ended December 31, 2020, and their performance,

by modification type:

(in thousands)

Troubled Debt

Restructurings

Performing to

Troubled Debt

Restructurings

Performing to

Troubled Debt

Restructurings

Six months ended December 31, 2020

Residential real estate:

Chapter 7 bankruptcy

following table summarizes TDR loan modifications that occurred during the three months ended December 31, 2020, and their performance,

by modification type:

During the nine months ended March 31, 2021,

the Company had two loans, which were associated with a single borrower and were both secured by a single-family residence, restructured

The loans were classified as TDRs pursuant to court action under Chapter 7 bankruptcy proceedings without the borrower reaffirming

the debt personally, and totaled $ 143,000 at March 31, 2021.

The following table summarizes TDR loan modifications

that occurred during the nine months ended March 31, 2021, and their performance, by modification type:

(in thousands)

7 unchanged sentences

Restructurings

Three months ended December 31, 2020

Nine months ended March 31, 2021

Residential real estate:

Chapter 7 bankruptcy

First Federal Bancorp

TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

There were no TDR loan modifications that occurred

during the three months ended March 31, 2021.

Kentucky First Federal Bancorp

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

March 31, 2022

Loans receivable (continued)

following table presents the aging of the principal balance outstanding in past due loans as of December 31, 2021, by class of loans:

The following table presents the aging of the

principal balance outstanding in past due loans as of March 31, 2022, by class of loans:

(in thousands)

5 unchanged sentences

Loans on deposits

following tables present the aging of the principal balance outstanding in past due loans as of June 30, 2021, by class of loans:

The following tables present the aging of the

principal balance outstanding in past due loans as of June 30, 2021, by class of loans:

(in thousands)

2 unchanged sentences

Nonresidential real estate

Commercial and industrial

Commercial nonmortgage

Loans on deposits

First Federal Bancorp

TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

December 31, 2021

Kentucky First Federal Bancorp

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

March 31, 2022

Loans receivable (continued)

Quality Indicators:

Company categorizes loans into risk categories based on relevant information about the ability of borrowers to service their debt such

current financial information, historical payment experience, credit documentation, public information, and current economic trends,

among other factors.

The Company analyzes loans individually by classifying the loans as to credit risk.

This analysis is performed on

an annual basis.

The Company uses the following definitions for risk ratings:

Loans classified as special mention have a potential weakness that deserves management’s close attention.

uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or of the institution’s

credit position at some future date.

Loans classified as substandard are inadequately protected by the current net worth and paying capacity of the obligor or of the

collateral pledged, if any.

Credit Quality Indicators:

The Company categorizes loans into risk categories

based on relevant information about the ability of borrowers to service their debt such as:

current financial information, historical

payment experience, credit documentation, public information, and current economic trends, among other factors.

The Company analyzes

loans individually by classifying the loans as to credit risk.

This analysis is performed on an annual basis.

The Company uses the following

definitions for risk ratings:

Special Mention.

Loans classified

as special mention have a potential weakness that deserves management’s close attention.

If left uncorrected, these potential weaknesses

may result in deterioration of the repayment prospects for the loan or of the institution’s credit position at some future date.

Loans classified

as substandard are inadequately protected by the current net worth and paying capacity of the obligor or of the collateral pledged, if

Loans so classified have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt.

They are characterized by the distinct possibility that the institution will sustain some loss if the deficiencies are not corrected.

Loans classified as doubtful have all the weaknesses inherent in those classified as substandard, with the added characteristic that

the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions and values, highly questionable

and improbable.

not meeting the criteria above that are analyzed individually as part of the above-described process are considered to be pass rated

Loans listed that are not rated are included in groups of homogeneous loans and are evaluated for credit quality based on performing

See the aging of past due loan table above.

As of December 31, 2021, and based on the most recent analysis performed, the risk

category of loans by class of loans is as follows:

They are characterized

by the distinct possibility that the institution will sustain some loss if the deficiencies are not corrected.

Loans classified as

doubtful have all the weaknesses inherent in those classified as substandard, with the added characteristic that the weaknesses make

collection or liquidation in full, on the basis of currently existing facts, conditions and values, highly questionable and improbable.

Loans not meeting the criteria above that are

analyzed individually as part of the above-described process are considered to be pass rated loans.

Loans listed that are not rated are

included in groups of homogeneous loans and are evaluated for credit quality based on performing status.

See the aging of past due loan

As of March 31, 2022, and based on the most recent analysis performed, the risk category of loans by class of loans is as

(in thousands)

4 unchanged sentences

Loans on deposits

First Federal Bancorp

TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

December 31, 2021

Kentucky First Federal Bancorp

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

March 31, 2022

Loans receivable (continued)

June 30, 2021, the risk category of loans by class of loans was as follows:

At June 30, 2021, the risk category of loans

by class of loans was as follows:

(in thousands)

4 unchanged sentences

Loans on deposits

Credit Impaired Loans:

Company purchased loans during fiscal year 2013 for which there was, at acquisition, evidence of deterioration of credit quality since

origination and it was probable, at acquisition, that all contractually required payments would not be collected.

The carrying amount

of those loans, net of a purchase credit discount of $ 88,000 and $ 88,000 at December 31, 2021 and June 30, 2021, respectively, is as

Purchased Credit Impaired Loans:

The Company purchased loans during fiscal year

2013 for which there was, at acquisition, evidence of deterioration of credit quality since origination and it was probable, at acquisition,

that all contractually required payments would not be collected.

The carrying amount of those loans, net of a purchase credit discount

of $ 88,000 and $ 88,000 at March 31, 2022 and June 30, 2021, respectively, is as follows:

(in thousands)

One- to four-family residential real estate

First Federal Bancorp

TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

Kentucky First Federal Bancorp

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

March 31, 2022

Loans receivable (continued)

yield, or income expected to be collected, is as follows:

Accretable yield, or income expected to be collected,

is as follows:

(in thousands)

4 unchanged sentences

Balance at end of period

those purchased loans disclosed above, the Company made no increase in allowance for loan losses for the year ended June 30, 2021, nor

for the six-month period ended December 31, 2021.

For those purchased loans disclosed above, the

Company made no increase in allowance for loan losses for the year ended June 30, 2021, nor for the nine-month period ended March 31,

Neither were any allowance for loan losses reversed during those periods.

Disclosures About Fair Value of Assets and Liabilities

topic 820 defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction

between market participants (exit price) at the measurement date.

ASC topic 820 also establishes a fair value hierarchy which requires

an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value.

describes six levels of inputs that may be used to measure fair value:

1 – Quoted prices in active markets for identical assets or liabilities.

2 – Observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities;

quoted prices in

active markets that are not active;

or other inputs that are observable or can be corroborated by observable market data for substantially

the full term of the assets or liabilities.

3 – Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the

assets or liabilities.

is a description of the valuation methodologies used for instruments measured at fair value, as well as the general classification of

such instruments pursuant to the valuation hierarchy.

quoted market prices are available in an active market, securities are classified within Level 1 of the valuation hierarchy.

market prices are not available, then fair values are estimated by using pricing models, quoted prices of securities with similar characteristics.

Level 2 securities include agency mortgage-backed securities and agency bonds.

First Federal Bancorp

TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

Disclosures About Fair Value of Assets and Liabilities (continued)

assets measured at fair value on a recurring basis are summarized below:

Disclosures About Fair Value of Assets

and Liabilities

ASC topic 820 defines fair value as the price

that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants (exit price)

at the measurement date.

ASC topic 820 also establishes a fair value hierarchy which requires an entity to maximize the use of observable

inputs and minimize the use of unobservable inputs when measuring fair value.

The standard describes six levels of inputs that may be

used to measure fair value:

Level 1 – Quoted prices

in active markets for identical assets or liabilities.

Level 2 – Observable inputs

other than Level 1 prices, such as quoted prices for similar assets or liabilities;

quoted prices in active markets that are not active;

or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or

Level 3 – Unobservable

inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities.

Following is a description of the valuation methodologies

used for instruments measured at fair value, as well as the general classification of such instruments pursuant to the valuation hierarchy.

Where quoted market prices are available in an

active market, securities are classified within Level 1 of the valuation hierarchy.

If quoted market prices are not available, then fair

values are estimated by using pricing models, quoted prices of securities with similar characteristics.

Level 2 securities include agency

mortgage-backed securities.

Kentucky First Federal Bancorp

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

March 31, 2022

Disclosures About Fair Value of Assets

and Liabilities (continued)

Financial assets measured at fair value on a recurring

basis are summarized below:

Fair Value Measurements Using

1 unchanged sentence

Quoted Prices

December 31, 2021

March 31, 2022

Agency mortgage-backed:

1 unchanged sentence

Agency mortgage-backed:

is a description of the valuation methodologies and inputs used for assets measured at fair value on a nonrecurring basis and recognized

in the accompanying consolidated balance sheet as well as the general classification of such assets pursuant to the valuation hierarchy.

For assets classified within Level 3 of the fair value hierarchy, the process used to develop the reported fair value is described below.

the time a loan is considered impaired, it is evaluated for loss based on the fair value of collateral securing the loan if the loan

is collateral dependent.

If a loss is identified, a specific allocation will be established as part of the allowance for loan losses

such that the loan’s net carrying value is at its estimated fair value.

Impaired loans carried at fair value generally receive

specific allocations of the allowance for loan losses.

For collateral-dependent loans, fair value is commonly based on recent real estate

These appraisals may utilize a single valuation approach or a combination of approaches including comparable sales and the

income approach.

Adjustments are routinely made in the appraisal process by the independent appraisers to adjust for differences between

the comparable sales and income data available.

Such adjustments are usually significant and typically result in a Level 3 classification

of the inputs for determining fair value.

Non-real estate collateral may be valued using an appraisal, net book value per the borrower’s

financial statements, or aging reports, adjusted or discounted based on management’s historical knowledge, changes in market conditions

from the time of the valuation, and management’s expertise and knowledge of the client and client’s business, resulting in

a Level 3 fair value classification.

Impaired loans are evaluated on a quarterly basis for additional impairment and adjusted accordingly.

Impaired Loans

Following is a description of the valuation methodologies

and inputs used for assets measured at fair value on a nonrecurring basis and recognized in the accompanying consolidated balance sheet

as well as the general classification of such assets pursuant to the valuation hierarchy.

For assets classified within Level 3 of the

fair value hierarchy, the process used to develop the reported fair value is described below.

At the time a loan is considered impaired, it

is evaluated for loss based on the fair value of collateral securing the loan if the loan is collateral dependent.

If a loss is identified,

a specific allocation will be established as part of the allowance for loan losses such that the loan’s net carrying value is at

its estimated fair value.

Impaired loans carried at fair value generally receive specific allocations of the allowance for loan losses.

For collateral-dependent loans, fair value is commonly based on recent real estate appraisals.

These appraisals may utilize a single

valuation approach or a combination of approaches including comparable sales and the income approach.

Adjustments are routinely made

in the appraisal process by the independent appraisers to adjust for differences between the comparable sales and income data available.

Such adjustments are usually significant and typically result in a Level 3 classification of the inputs for determining fair value.

estate collateral may be valued using an appraisal, net book value per the borrower’s financial statements, or aging reports, adjusted

or discounted based on management’s historical knowledge, changes in market conditions from the time of the valuation, and management’s

expertise and knowledge of the client and client’s business, resulting in a Level 3 fair value classification.

Impaired loans are

evaluated on a quarterly basis for additional impairment and adjusted accordingly.

There were no loans measured on a nonrecurring

basis using the fair value of the collateral for collateral-dependent loans, at December 31, 2021 or at June 30, 2021.

First Federal Bancorp

TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

Disclosures About Fair Value of Assets and Liabilities (continued)

acquired through or instead of loan foreclosure are initially recorded at fair value less costs to sell when acquired, establishing a

new cost basis.

These assets are subsequently accounted for at lower of cost or fair value less estimated costs to sell.

Fair value is

commonly based on recent real estate appraisals.

These appraisals may utilize a single valuation approach or a combination of approaches

including comparable sales and the income approach.

Adjustments are routinely made in the appraisal process by the independent appraisers

to adjust for differences between the comparable sales and income data available.

Such adjustments are usually significant and typically

result in a Level 3 classification of the inputs for determining fair value.

was no other real estate owned (“OREO”) written down during the six- or three-month periods ended December 31, 2021 or 2020.

There was no OREO measured on a nonrecurring basis during the period at fair value less costs to sell at December 31, 2021 or June 30,

following is a disclosure of the fair value of financial instruments, both assets and liabilities, whether or not recognized in the consolidated

balance sheet, for which it is practicable to estimate that value.

For financial instruments where quoted market prices are not available,

fair values are based on estimates using present value and other valuation methods.

methods used are greatly affected by the assumptions applied, including the discount rate and estimates of future cash flows.

the fair values presented may not represent amounts that could be realized in an exchange for certain financial instruments.

First Federal Bancorp

TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

Disclosures About Fair Value of Assets and Liabilities (continued)

on the foregoing methods and assumptions, the carrying value and fair value of the Company’s financial instruments at December

31, 2021 and June 30, 2021 are as follows:

basis using the fair value of the collateral for collateral-dependent loans at March 31, 2022 or June 30, 2021.

Other Real Estate

Assets acquired through or instead of loan foreclosure

are initially recorded at fair value less costs to sell when acquired, establishing a new cost basis.

These assets are subsequently accounted

for at lower of cost or fair value less estimated costs to sell.

Fair value is commonly based on recent real estate appraisals.

appraisals may utilize a single valuation approach or a combination of approaches including comparable sales and the income approach.

Adjustments are routinely made in the appraisal process by the independent appraisers to adjust for differences between the comparable

sales and income data available.

Such adjustments are usually significant and typically result in a Level 3 classification of the inputs

for determining fair value.

There was no other real estate owned (“OREO”)

written down during the nine- or three-month periods ended March 31, 2022 or 2021.

There was no OREO measured on a nonrecurring basis

during the period at fair value less costs to sell at March 31, 2022 or June 30, 2021.

The following is a disclosure of the fair value

of financial instruments, both assets and liabilities, whether or not recognized in the consolidated balance sheet, for which it is practicable

to estimate that value.

For financial instruments where quoted market prices are not available, fair values are based on estimates using

present value and other valuation methods.

The methods used are greatly affected by the

assumptions applied, including the discount rate and estimates of future cash flows.

Therefore, the fair values presented may not represent

amounts that could be realized in exchange for certain financial instruments.

Kentucky First Federal Bancorp

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

March 31, 2022

Disclosures About Fair Value of Assets

and Liabilities (continued)

Based on the foregoing methods and assumptions,

the carrying value and fair value of the Company’s financial instruments at March 31, 2022 and June 30, 2021 are as follows:

Fair Value Measurements at

December 31, 2021 Using

March 31, 2022 Using

(in thousands)

27 unchanged sentences

Accrued interest payable

First Federal Bancorp

TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

Kentucky First Federal Bancorp

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

March 31, 2022

Other Comprehensive Income (Loss)

Company’s other comprehensive income is comprised solely of unrealized gains and losses on available-for-sale securities.

The following

is a summary of the accumulated other comprehensive income balances, net of tax:

Six months ended

Beginning balance

Current year change

Ending balance

comprehensive income (loss) components and related tax effects for the periods indicated were as follows:

Six months ended

The Company’s other comprehensive income

is comprised solely of unrealized gains and losses on available-for-sale securities.

The following is a summary of the accumulated other

comprehensive income balances, net of tax:

Other comprehensive income (loss) components

and related tax effects for the periods indicated were as follows:

Nine months ended

(in thousands)

1 unchanged sentence

Net-of-tax amount

Kentucky First Federal

There was no other comprehensive income for the three months ended

March 31, 2022 and 2021.

Kentucky First Federal Bancorp

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 1. Financial Statements