What changed in this filing

/stocks — the workspaceLOADING

Item 1. Financial Statements

2022-11-14 compared with 2022-05-16 · 422 added, 355 removed, 427 unchanged (65% of the section changed)

3 unchanged sentences

(In thousands, except share data)

September 30,

Cash and due from financial institutions

2 unchanged sentences

Cash and cash equivalents

Time deposits in other financial institutions

Securities available for sale

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

Securities held-to-maturity, at amortized cost- approximate fair value of $ 302 and $ 323 at September 30, 2022 and June 30, 2022, respectively

Loans held for sale

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

Real estate owned, net

Loans, net of allowance of $ 1,642 and $ 1,529 at September 30, 2022 and June 30, 2022, respectively

Other real estate owned, net

Premises and equipment, net

2 unchanged sentences

Bank-owned life insurance

Prepaid federal income taxes

Prepaid income taxes

Prepaid expenses and other assets

14 unchanged sentences

Retained earnings

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

Unearned employee stock ownership plan (ESOP)

Treasury shares at cost, 441,369 and 441,369 common shares at September 30, 2022 and June 30, 2022, respectively

Accumulated other comprehensive income (loss)

Total shareholders’ equity

5 unchanged sentences

(Dollars in thousands, except per share data)

Nine months ended

Three months ended

September 30,

Interest income

1 unchanged sentence

Mortgage-backed securities

Other securities

Interest-bearing deposits and other

5 unchanged sentences

Net interest income

Provision (credit) for loan losses

Provision for loan losses

Net interest income after provision for loan losses

2 unchanged sentences

Net gain on sales of loans

Net gain on sale of other real estate owned

Net loss on sales of real estate owned

Valuation adjustment for real estate owned

Total non-interest income

1 unchanged sentence

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

8 unchanged sentences

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE

INCOME (LOSS)

(In thousands)

Nine months ended

Three months ended

September 30,

Other comprehensive gains (losses), net of tax:

Unrealized holding Gains (losses) on securities designated as available-for-sale, net of taxes of $ 0 , $ 0 , $( 1 ) and $ 0 during the respective periods

Comprehensive income

Unrealized losses on securities designated as available-for-sale, net of tax benefits of $ 143 and $ 0 during the respective periods

Comprehensive income (loss)

See accompanying notes to condensed consolidated

2 unchanged sentences

CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’

For the nine months ended

For the three months ended

(Dollar amounts in thousands, except per share

March 31, 2022

comprehensive

income (loss)

Balance at June 30, 2021

Allocation of ESOP shares

Acquisition of shares for Treasury

Cash dividends of $ 0.30 per common share

Balance at March 31, 2022

March 31, 2021

September 30, 2022

comprehensive

2 unchanged sentences

Allocation of ESOP shares

Acquisition of shares for treasury

Other comprehensive loss

Cash dividends of $ 0.10 per common share

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 December 31, 2021

Allocation of ESOP shares

Cash dividends of $ 0.10 per common share

Balance at March 31, 2022

March 31, 2021

Balance at September 30, 2022

September 30, 2021

comprehensive

Balance at December 31, 2020

Balance at June 30, 2021

Allocation of ESOP shares

Acquisition of shares for treasury

Cash dividends of $ 0.10 per common share

Balance at March 31, 2021

Balance at September 30, 2021

See accompanying notes to condensed consolidated

3 unchanged sentences

(In thousands)

Nine months ended

Three months ended

September 30,

Cash flows from operating activities:

1 unchanged sentence

Accretion of purchased loan credit discount

Amortization of purchased loan premium

Amortization of deferred loan origination costs (fees)

1 unchanged sentence

Net gain on sale of loans

Net loss on sale of real estate owned

Valuation adjustments of real estate owned

Net (gain) loss on sale of other real estate

Net (gain) loss on sale of real estate owned

ESOP compensation expense

Earnings on bank-owned life insurance

Provision (credit) for loan losses

Provision for loan losses

Origination of loans held for sale

7 unchanged sentences

Cash flows from investing activities:

Purchase of investments available for sale

Maturities of time deposits in other financial institutions

2 unchanged sentences

Available for sale

Proceeds from redemption of FHLB stock

Proceeds from sale of other real estate

Loans originated for investment, net of principal collected

Proceeds from sale of real estate owned

Additions to real estate owned

Additions to premises and equipment, net

1 unchanged sentence

Cash flows from financing activities:

Net increase in deposits

Net increase (decrease) in deposits

Payments by borrowers for taxes and insurance, net

1 unchanged sentence

Repayments on Federal Home Loan Bank advances

Treasury stock purchased

Dividends paid on common stock

Net cash provided by (used in) financing activities

Net increase in cash and cash equivalents

Net increase (decrease) in cash and cash equivalents

Beginning cash and cash equivalents

5 unchanged sentences

(In thousands)

Nine months ended

Three months ended

September 30,

Supplemental disclosure of cash flow information:

2 unchanged sentences

Interest on deposits and borrowings

Transfers of loans to real estate owned, net

Loans made on sale of real estate owned

See accompanying notes to condensed consolidated

2 unchanged sentences

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

March 31, 2022

September 30, 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,

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”).

6 unchanged sentences

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.

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 nine-month period ended March

The results of operations for the three-month period ended September

30, 2022, are not necessarily indicative of the results which may be expected for an entire fiscal year.

3 unchanged sentences

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.

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 2022 filed with the Securities and

Exchange Commission.

Principles of Consolidation - The

3 unchanged sentences

balances have been eliminated in consolidation.

New Accounting Standards

FASB ASC 326 - In June 2016, the

FASB issued ASU No.

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

Measurement of Credit Losses on Financial Instruments.

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.

The Company will now use forward-looking information

to enhance its credit loss estimates.

The amendment requires enhanced disclosures to aid investors and other users of financial statements

to better understand significant estimates and judgments used in estimating 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, held-to-maturity 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.

Kentucky First Federal Bancorp

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

March 31, 2022

September 30, 2022

Basis of Presentation (continued)

New Accounting Standards

FASB ASC 326 - In June 2016,

the FASB issued ASU No.

New Accounting Standards (continued)

We have selected and engaged a third-party software

provider for modeling our data and plan to test our new system before implementing it.

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

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

In March 2022 the Financial Accounting Standards

Board (“FASB”) issued ASU No.

2022-02, Financial Instruments – Credit Losses (Topic 326):

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

to aid investors and other users of financial statements to better understand significant estimates and judgments used in estimating

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 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.

Troubled Debt Restructurings

and Vintage Disclosures, as an update to its post-implementation review activities associated with ASU No.

The amendments in

this Update eliminate the accounting guidance for TDRs by creditors in Subtopic 310-40, Receivables-Troubled Debt Restructurings by Creditors,

while enhancing disclosure requirements for certain loan refinancings and restructurings by creditors when a borrower is experiencing

financial difficulty.

Specifically, rather than applying the recognition and measurement guidance for TDRs, an entity must apply the loan

refinancing and restructuring guidance provided to determine whether a modification results in a new loan or a continuation of an existing

This Update also requires disclosure by public business entities of current-period gross writeoffs by year of origination for financing

receivables and net investments in leases within the scope of Subtopic 326-20, Financial Instruments-Credit Losses-Measured at Amortized

Because the Company has not yet adopted amendments in Update 2016-13, the amendments in this Update are effective for the fiscal

year beginning July 1, 2023.

Other accounting standards that have been issued

1 unchanged sentence

position, results of operations or cash flows.

Kentucky First Federal Bancorp

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

March 31, 2022

Earnings Per Share

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.

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

Nine months ended

Three months ended

Weighted average common shares outstanding, basic

September 30,

Net income allocated to common shareholders, basic and diluted

Earnings per share, basic and diluted

Weighted average common shares outstanding, basic and diluted

There were no stock option shares outstanding

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

for the three-month periods ended September 30, 2022 and 2021.

Kentucky First Federal Bancorp

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

September 30, 2022

Investment Securities

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

The following table summarizes the amortized cost

and fair value of securities available-for-sale and securities held-to-maturity at September 30, 2022 and June 30, 2022, the corresponding

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

March 31, 2022

September 30, 2022

(in thousands)

Amortized cost

Gross unrealized

Estimated fair value

Available-for-sale Securities

4 unchanged sentences

(in thousands)

Amortized cost

Gross unrealized/ unrecognized

Estimated fair value

Available-for-sale Securities

2 unchanged sentences

Agency mortgage-backed:

Kentucky First Federal Bancorp

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

March 31, 2022

Investment Securities (continued)

At September 30, 2022 and June 30, 2022 the Company’s

debt securities consisted of mortgage-backed securities, which do not have a single maturity date.

Actual maturities may differ from contractual

maturities, because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.

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.

time deposits in other financial institutions) totaled $ 6.8 million and $ 1.7 million at September 30, 2021 and June 30, 2022, 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.

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.

Also, 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.

The following table provides the amortized cost, gross unrealized losses, fair value, and length

of time the individual securities have been in a continuous unrealized loss position as of September 30, 2022.

Available-for-Sale

(in thousands)

Amortized Cost

Gross Unrealized Losses

Less Than 12 Months

Mortgage-backed securities

12 Months or More

Mortgage-backed securities

Total temporarily impaired AFS securities

Kentucky First Federal Bancorp

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

September 30, 2022

Investment Securities (continued)

Held to Maturity

(in thousands)

Amortized Cost

Gross Unrealized Losses

Less Than 12 Months

Mortgage-backed securities

12 Months or More

Mortgage-backed securities

Total temporarily impaired HTM securities

Loans receivable

The composition of the loan portfolio was as

Loans that management has the intent

and ability to hold for the foreseeable future or until maturity or payoff are reported at the principal amount outstanding, adjusted

for deferred loan origination costs, net, discounts on purchased loans, and the allowance for loan losses.

Interest income is accrued

on the unpaid principal balance unless the collectability of the loan is in doubt.

Loan origination fees, net of certain direct origination

costs, are deferred and recognized in interest income using the level-yield method without anticipating prepayments.

Interest income on

one- to four-family residential loans is generally discontinued at the time a loan is 180 days delinquent and on other loans at the time

a loan is 90 days delinquent.

All other loans are moved to non-accrual status in accordance with the Company’s policy, typically

90 days after the loan becomes delinquent.

Past due status is based on the contractual terms of the loan.

In all cases, loans are placed

on nonaccrual or charged-off at an earlier date if collection of principal or interest is considered doubtful.

Nonaccrual loans and loans

past due 90 days still on accrual include both smaller balance homogeneous loans that are collectively evaluated for impairment and individually

classified impaired loans.

All interest accrued but not received

for loans placed on nonaccrual is reversed against interest income.

Interest received on such loans is accounted for on the cash-basis

or cost-recovery method, until qualifying for return to accrual.

Loans are returned to accrual status when all the principal and interest

amounts contractually due are brought current and future payments are reasonably assured.

The composition of the loan portfolio was as follows:

September 30,

(in thousands)

2 unchanged sentences

Nonresidential real estate

Commercial nonmortgage

Commercial and industrial

Consumer and other:

1 unchanged sentence

Allowance for loan losses

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

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

The amounts above include net deferred loan costs

of $ 309,000 and $ 290,000 as of September 30, 2022 and June 30, 2022, respectively.

Kentucky First Federal Bancorp

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

March 31, 2022

September 30, 2022

Loans receivable (continued)

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:

One- to four-family

Nonresidential real estate

Commercial nonmortgage

Consumer and other:

Loans on deposits

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

The allowance for loan losses is a valuation allowance

for probable incurred credit losses.

Loan losses are charged against the allowance when management believes the uncollectability of a

loan balance is confirmed.

Subsequent recoveries, if any, are credited to the allowance.

Management estimates the allowance balance required

using past loss experience, the nature and volume of the portfolio, trends in the level of delinquent and problem loans, adverse situations

that may affect the borrower’s ability to repay, the estimated value of any underlying collateral and current and anticipated economic

conditions in the primary lending area.

Allocations of the allowance may be made for specific loans, but the entire allowance is available

for any loan that, in management’s judgment, should be charged off.

The allowance consists of specific and general

The specific component relates to loans that are individually classified as impaired or loans otherwise classified as substandard

The general component covers all loans and is based on historical loss experience adjusted for current factors.

In consultation

with regulators, the Company considers a time frame of two years when estimating the appropriate level of allowance for loan losses.

period may be shortened or extended based on anticipated trends in the banks or in the banks’ markets.

The historical loss experience is determined by

portfolio segment and is based on the actual loss history experienced by the Company over the most recent eight quarters.

loss experience is supplemented with other economic factors based on the risks present for each portfolio segment.

These economic factors include consideration

of the following:

levels of and trends in delinquencies and impaired loans;

levels of and trends in charge-offs and recoveries;

trends in volume and terms of loans;

changes in lending policies, procedures and practices;

experience, ability and depth of lending

management and other relevant staff;

economic trends and conditions;

industry conditions;

and effects of changes in credit

concentrations.

Our portfolio segments include residential real estate, nonresidential real estate and land, loans on deposits and

consumer and other loans.

Risk factors associated with our portfolio segments are as follows:

Residential Real Estate

One- to four-family

Nonresidential real estate

Commercial nonmortgage

Consumer and other:

Loans on deposits

Our primary lending activity is the origination

of mortgage loans, which enable a borrower to purchase or refinance existing homes in the Banks’ respective market areas.

classify our residential real estate loans as one- to four-family (owner-occupied vs nonowner-occupied), multi-family or construction.

We believe that our first mortgage position on loans secured by residential real estate presents lower risk than our other loans, with

the exception of loans secured by deposits.

We offer a mix of adjustable-rate and fixed-rate

mortgage loans with terms up to 30 years for owner-occupied properties.

For these properties a borrower may be able to borrow up to 97 %

of the value with private mortgage insurance.

Alternatively, the borrower may be able to borrow up to 90 % of the value through other programs

offered by the bank.

We offer loans on one- to four-family rental properties

at a maximum of 80 % loan-to-value (“LTV”) ratio and we generally charge a slightly higher interest rate on such loans.

We also originate loans to individuals to finance

the construction of residential dwellings for personal use or for use as rental property.

We occasionally lend to builders for construction

of speculative or custom residential properties for resale, but on a limited basis.

Construction loans are generally less than one year

in length, do not exceed 80 % of the appraised value, and provide for the payment of interest only during the construction phase.

are disbursed as progress is made toward completion of the construction.

Kentucky First Federal Bancorp

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

March 31, 2022

September 30, 2022

Loans receivable (continued)

The following table presents the activity in

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

Multi-family and Nonresidential Loans

We offer mortgage loans secured by residential

multi-family (five or more units), and nonresidential real estate.

Nonresidential real estate loans are comprised generally of commercial

office buildings, churches and properties used for other purposes.

Generally, these loans are originated for 25 years or less and do not

exceed 80 % of the appraised value.

Loans secured by multi-family and commercial real estate generally have larger balances and involve

a greater degree of risk than one- to four-family residential mortgage loans.

These loans depend on the borrower’s creditworthiness

and the feasibility and cash flow potential of the project.

Payments on loans secured by income properties often depend on successful

operation and management of the properties.

As a result, repayment on such loans may be subject to a greater extent to adverse conditions

in the real estate market or economy than owner-occupied residential loans.

Consumer lending

Our consumer loans include home equity lines of

credit, loans secured by savings deposits, automobile loans, and unsecured loans.

Home equity loans are generally second mortgage loans

subordinate only to first mortgages also held by the bank and do not exceed 80 % of the estimated value of the property.

We do offer home

equity loans up to 90 % of the estimated value to qualified borrowers and these loans carry a premium interest rate.

Loans secured by savings

are originated up to 90 % of the depositor’s savings account balance and bear interest at a rate higher than the rate paid on the

deposit account.

Because the deposit account must be pledged as collateral to secure the loan, the inherent risk of this type of loan

Loans secured by automobiles are made directly to consumers (there are no relationships with dealers) and are based on the

value of the vehicle and the borrower’s creditworthiness.

Vehicle loans present a higher level of risk because of the natural decline

in the value of the property as well as its mobility.

Unsecured loans are based entirely on the borrower’s creditworthiness and

present the highest level of risk to the bank.

The Banks choose the most appropriate method for

accounting for impaired loans.

For secured loans, which make up the vast majority of the loans in the Banks’ portfolio, this method

involves determining the fair value of the collateral, reduced by estimated selling costs.

Where appropriate, the Banks would account

for impaired loans by determining the present value of expected future cash flows discounted at the loan’s effective interest rate.

A loan is considered impaired when, based on current

information and events, it is probable that a creditor will be unable to collect all amounts due according to the contractual terms of

the loan agreement.

Although most of our loans are secured by collateral, we rely heavily on the capacity of our borrowers to generate

sufficient cash flow to service their debt.

As a result, our loans do not become collateral-dependent until there is deterioration in

the borrower’s cash flow and financial condition, which makes it necessary for us to look to the collateral for our sole source

of repayment.

Collateral-dependent loans which are more than ninety days delinquent are considered to constitute more than a minimum delay

in repayment and are evaluated for impairment under the policy at that time.

We utilize updated independent appraisals to determine

fair value for collateral-dependent loans, adjusted for estimated selling costs, in determining our specific reserve.

In some situations,

management does not secure an updated independent appraisal.

These situations may involve small loan amounts or loans that, in management’s

opinion, have an abnormally low loan-to-value ratio.

With respect to the Banks’ investment in

troubled debt restructurings, multi-family and nonresidential loans, and the evaluation of impairment thereof, such loans are nonhomogenous

and, as such, may be deemed to be collateral-dependent when they become more than 90 days delinquent.

We obtain updated independent appraisals

in these situations or when we suspect that the previous appraisal may no longer be reflective of the property’s current fair value.

This process varies from loan to loan, borrower to borrower, and also varies based on the nature of the collateral.

Kentucky First Federal Bancorp

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

September 30, 2022

Loans receivable (continued)

The following table presents the activity in the

allowance for loan losses by portfolio segment for the three months ended September 30, 2022:

(in thousands)

Provision for

Beginning balance

Provision for loan losses

Loans charged off

Ending balance

Residential real estate:

4 unchanged sentences

Loans on deposits

The following table presents the activity in

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

The following table presents the activity in the

allowance for loan losses by portfolio segment for the three months ended September 30, 2021:

(in thousands)

Provision for

Beginning balance

Provision for loan losses

Ending balance

Residential real estate:

6 unchanged sentences

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

March 31, 2022

September 30, 2022

Loans receivable (continued)

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.

allowance for loan losses and the recorded investment in loans by portfolio class and based on impairment method as of September 30, 2022.

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

March 31, 2022:

September 30, 2022:

(in thousands)

acquired with

credit quality

Loans individually evaluated

acquired with deteriorated credit quality*

Unpaid principal balance

11 unchanged sentences

Loans on deposits

Kentucky First Federal

loans were evaluated at acquisition date at their estimated fair value and there has been no subsequent deterioration since acquisition.

Kentucky First Federal Bancorp

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

March 31, 2022

September 30, 2022

Loans receivable (continued)

3 unchanged sentences

(in thousands)

Loans individually evaluated

Loans acquired with deteriorated

credit quality

Unpaid principal balance

recorded investment

Ending allowance attributed to loans

attributed to

Loans individually evaluated for impairment:

7 unchanged sentences

Nonresidential real estate

Commercial nonmortgage

Commercial and industrial

Consumer and other

Loans on deposits

Kentucky First Federal

* These loans were evaluated at acquisition date at their estimated

fair value and there has been no subsequent deterioration since acquisition.

Kentucky First Federal Bancorp

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

March 31, 2022

September 30, 2022

Loans receivable (continued)

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)

With no related allowance recorded:

One- to four-family

Nonresidential real estate

Consumer and other

Purchased credit-impaired loans

With an allowance recorded:

One- to four-family

The following table presents interest income

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

The following table presents interest income on

loans individually evaluated for impairment by class of loans for the three months ended September 30:

(in thousands)

10 unchanged sentences

Purchased credit-impaired loans

With an allowance recorded:

One- to four-family

Kentucky First Federal Bancorp

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

March 31, 2022

Loans receivable (continued)

There were no impaired loans with an allowance

recorded at September 30, 2022.

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

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

September 30,

(in thousands)

8 unchanged sentences

One- to four-family loans in process of foreclosure

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

totaled $ 319,000 and $ 489,000 at September 30, 2022 and June 30, 2022, respectively.

Kentucky First Federal Bancorp

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

September 30, 2022

Loans receivable (continued)

Troubled Debt Restructurings:

3 unchanged sentences

All TDRs are considered “impaired.”

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.

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

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.

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

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 September 30, 2022 and June 30, 2022, the Company

had $ 1.3 million and $ 1.4 million of loans classified as TDRs, respectively.

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

Of the TDRs at September 30, 2022, approximately 16.4 % 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)

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)

Troubled Debt

Restructurings

Performing to

Troubled Debt

Restructurings

Performing to

Troubled Debt

Restructurings

Nine months ended March 31, 2021

Residential real estate:

Chapter 7 bankruptcy

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)

During the three months ended September 30, 2022,

and 2021 the Company added no loans restructured as TDRs.

No TDRs defaulted during the three-month periods ended September 30, 2022, or

The following table presents the aging of the

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

principal balance outstanding in past due loans as of September 30, 2022, by class of loans:

(in thousands)

2 unchanged sentences

Nonresidential real estate

Commercial non-mortgage

Commercial and industrial

Consumer and other:

Loans on deposits

Kentucky First Federal Bancorp

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

September 30, 2022

Loans receivable (continued)

The following tables present the aging of the

principal balance outstanding in past due loans as of June 30, 2022, by class of loans:

June 30, 2022:

(in thousands)

2 unchanged sentences

Nonresidential real estate

Commercial nonmortgage

Commercial and industrial

Consumer and other

Loans on deposits

Kentucky First Federal Bancorp

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

March 31, 2022

Loans receivable (continued)

Credit Quality Indicators:

3 unchanged sentences

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.

The Company analyzes loans

individually by classifying the loans as to credit risk.

This analysis is performed on an annual basis.

12 unchanged sentences

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.

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.

Kentucky First Federal Bancorp

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

September 30, 2022

Loans receivable (continued)

Loans not meeting the criteria above that are

3 unchanged sentences

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

As of September 30, 2022, and based on the most recent analysis performed, the risk category of loans by class of loans is

(in thousands)

4 unchanged sentences

Loans on deposits

Kentucky First Federal Bancorp

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

March 31, 2022

Loans receivable (continued)

At June 30, 2022, the risk category of loans

6 unchanged sentences

Loans on deposits

Kentucky First Federal Bancorp

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

September 30, 2022

Loans receivable (continued)

Purchased Credit Impaired Loans:

3 unchanged sentences

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:

of $ 88,000 and $ 88,000 at September 30, 2022 and June 30, 2022, respectively, is as follows:

(in thousands)

September 30,

One- to four-family residential real estate

Kentucky First Federal Bancorp

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

March 31, 2022

Loans receivable (continued)

Accretable yield, or income expected to be collected,

1 unchanged sentence

(in thousands)

September 30,

Twelve months

1 unchanged sentence

Accretion of income

Disposals, net of recoveries

Balance at end of period

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,

Company made no increase in allowance for loan losses for the year ended June 30, 2022, nor for the three-month period ended September

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

Disclosures About Fair Value of Assets

and Liabilities

Disclosures About Fair Value of Assets and

ASC topic 820 defines fair value as the price

15 unchanged sentences

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

Kentucky First Federal Bancorp

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

September 30, 2022

Disclosures About Fair Value of Assets and

Liabilities (continued)

Where quoted market prices are available in an

3 unchanged sentences

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)

mortgage-backed securities and agency bonds.

Financial assets measured at fair value on a recurring

3 unchanged sentences

Quoted Prices

March 31, 2022

September 30, 2022

Agency mortgage-backed:

1 unchanged sentence

Agency mortgage-backed:

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 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.

There were no assets or liabilities which were

measured at fair value on a nonrecurring basis at September 30, 2022, and June 30, 2022.

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 an 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)

September 30, 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:

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

Fair Value Measurements at

March 31, 2022 Using

September 30, 2022 Using

(in thousands)

3 unchanged sentences

Held-to-maturity securities

Loans held for sale

Loans receivable - net

5 unchanged sentences

Accrued interest payable

Kentucky First Federal Bancorp

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

September 30, 2022

Disclosures About Fair Value of Assets and

Liabilities (continued)

Fair Value Measurements at

3 unchanged sentences

Cash and cash equivalents

Term deposits in other financial institutions

Available-for-sale securities

8 unchanged sentences

Accrued interest payable

Kentucky First Federal Bancorp

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

March 31, 2022

Other Comprehensive Income (Loss)

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

(loss) 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:

(in thousands)

Three months ended

September 30,

Beginning balance

Current year change

Ending balance

Other comprehensive income (loss) components and

related tax effects for the periods indicated were as follows:

Three months ended

September 30,

(in thousands)

Unrealized holding gains (losses) on available-for-sale securities

Net-of-tax amount

There was no other comprehensive income for the three months ended

March 31, 2022 and 2021.

Kentucky First Federal Bancorp

Kentucky First Federal

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