What changed in this filing

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Item 1. Financial Statements

2023-02-14 compared with 2022-11-14 · 274 added, 220 removed, 629 unchanged (44% of the section changed)

3 unchanged sentences

(In thousands, except share data)

September 30,

Cash and due from financial institutions

3 unchanged sentences

Securities available-for-sale

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

Securities held-to-maturity, at amortized cost- approximate fair value of $ 289 and $ 323 at December 31, 2022 and June 30, 2022, respectively

Loans held for sale

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

Other real estate owned, net

Loans, net of allowance of $ 1,655 and $ 1,529 at December 31, 2022 and June 30, 2022, respectively

Real estate owned, net

Premises and equipment, net

2 unchanged sentences

Bank-owned life insurance

Prepaid income taxes

Prepaid federal income taxes

Prepaid expenses and other assets

3 unchanged sentences

Accrued interest payable

Accrued income taxes

Deferred income taxes

10 unchanged sentences

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

Treasury shares at cost, 456,369 and 441,369 common shares at December 31, 2022 and June 30, 2022, respectively

Accumulated other comprehensive income (loss)

6 unchanged sentences

(Dollars in thousands, except per share data)

Six months ended

Three months ended

September 30,

Interest income

13 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

Net gain (loss) on sales of real estate owned

Net gain on sale of property and equipment held for sale

Total non-interest income

20 unchanged sentences

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE

INCOME (LOSS)

(In thousands)

Six months ended

Three months ended

September 30,

Other comprehensive gains (losses), net of tax:

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

Comprehensive income (loss)

Unrealized holding gains (losses) on securities designated as available-for-sale, net of taxes of $( 114 ), $ 0 , $ 29 and $ 0 during the respective periods

Comprehensive income

See accompanying notes to condensed consolidated

2 unchanged sentences

CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’

For the three months ended

For the six months ended

(Dollar amounts in thousands, except per share

September 30, 2022

December 31, 2022

comprehensive

income (loss)

Balance at June 30, 2022

Allocation of ESOP shares

Acquisition of shares for Treasury

Other comprehensive loss

Cash dividends of $ 0.20 per common share

Balance at September 30, 2022

September 30, 2021

Balance at December 31, 2022

December 31, 2021

stock ownership

comprehensive

1 unchanged sentence

Allocation of ESOP shares

Acquisition of shares for Treasury

Cash dividends of $ 0.20 per common share

Balance at December 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

December 31, 2022

comprehensive

Balance at September 30, 2022

Allocation of ESOP shares

Acquisition of shares for Treasury

Other comprehensive income

Cash dividends of $ 0.10 per common share

Balance at December 31, 2022

December 31, 2021

comprehensive

Balance at September 30, 2021

Allocation of ESOP shares

Acquisition of shares for Treasury

Cash dividends of $ 0.10 per common share

Balance at December 31, 2021

See accompanying notes to condensed consolidated

3 unchanged sentences

(In thousands)

Three months ended

September 30,

Six months ended

Cash flows from operating activities:

4 unchanged sentences

Net gain on sale of loans

Net (gain) loss on sale of other real estate

Net (gain) loss on sale of real estate owned

Net (gain) loss on sale of property & equipment

ESOP compensation expense

15 unchanged sentences

Available for sale

Proceeds from redemption of FHLB stock

Proceeds from sale of other real estate

Proceeds from sale of FHLB stock

Purchase of FHLB stock

Loans originated for investment, net of principal collected

Proceeds from sale of property and equipment held for sale

Proceeds from sale of real estate owned

6 unchanged sentences

Repayments on Federal Home Loan Bank advances

Treasury stock purchased

Dividends paid on common stock

Net cash provided by (used in) financing activities

Net cash provided by financing activities

Net increase (decrease) in cash and cash equivalents

6 unchanged sentences

(In thousands)

Three months ended

September 30,

Six months ended

Supplemental disclosure of cash flow information:

Cash paid during the period for:

Federal income taxes

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

September 30, 2022

December 31, 2022

The Kentucky First Federal Bancorp (“Kentucky

19 unchanged sentences

of the condensed consolidated financial statements have been included.

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.

The condensed consolidated balance

sheet as of June 30, 2022, 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 2022 filed with the Securities and

Exchange Commission.

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

ended December 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, 2022, 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

2022 filed with the Securities and Exchange Commission.

Principles of Consolidation - The

31 unchanged sentences

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

September 30, 2022

December 31, 2022

Basis of Presentation (continued)

17 unchanged sentences

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

This Update also requires disclosure by public business entities of current-period gross write-offs 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

9 unchanged sentences

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

Six months ended

Three months ended

September 30,

Net income allocated to common shareholders, basic and diluted

Earnings per share, basic and diluted

EARNINGS PER SHARE

Weighted average common shares outstanding, basic and diluted

There were no stock option shares outstanding

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

for the six- or three-month periods ended December 31, 2022 and 2021.

Kentucky First Federal Bancorp

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

September 30, 2022

December 31, 2022

Investment Securities

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

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

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

September 30, 2022

December 31, 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:

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 $ 6.8 million and $ 1.7 million at September 30, 2021 and June 30, 2022, respectively.

Our pledged securities (including overnight

and time deposits in other financial institutions) totaled $ 6.5 million and $ 1.7 million at December 31, 2022 and June 30, 2022, respectively.

We evaluated securities in unrealized loss positions

6 unchanged sentences

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.

Kentucky First Federal Bancorp

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2022

Investment Securities (continued)

Available-for-Sale

(in thousands)

Amortized Cost

Gross Unrealized Losses

Less Than 12 Months

3 unchanged sentences

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

4 unchanged sentences

Loans receivable

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.

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

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.

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.

Kentucky First Federal Bancorp

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2022

Loans receivable (continued)

The composition of the loan portfolio was as follows:

September 30,

(in thousands)

2 unchanged sentences

Nonresidential real estate

Commercial and industrial

Commercial nonmortgage

Consumer and other:

2 unchanged sentences

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

September 30, 2022

Loans receivable (continued)

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.

of $ 321,000 and $ 290,000 as of December 31, 2022 and June 30, 2022, respectively.

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

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

11 unchanged sentences

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:

Kentucky First Federal Bancorp

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2022

Loans receivable (continued)

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;

volume and terms of loans;

changes in lending policies, procedures and practices;

experience, ability and depth of lending

management and other relevant staff;

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:

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.

associated with our portfolio segments are as follows:

Residential Real Estate

19 unchanged sentences

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

Kentucky First Federal Bancorp

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

September 30, 2022

Loans receivable (continued)

Multi-family and Nonresidential Loans

13 unchanged sentences

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

Kentucky First Federal Bancorp

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2022

Loans receivable (continued)

Consumer lending

45 unchanged sentences

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

September 30, 2022

December 31, 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:

allowance for loan losses by portfolio segment for the six months ended December 31, 2022:

(in thousands)

Beginning balance

Provision for loan losses

Loans charged off

Ending balance

Residential real estate:

5 unchanged sentences

The following table presents the activity in the

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

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

(in thousands)

Beginning balance

Provision for loan losses

Ending balance

Residential real estate:

6 unchanged sentences

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

September 30, 2022

December 31, 2022

Loans receivable (continued)

The following table presents the activity in the

allowance for loan losses by portfolio segment for the six months ended December 31, 2021:

(in thousands)

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 December 31, 2021:

(in thousands)

Residential real estate:

One- to four-family

Nonresidential real estate

Commercial nonmortgage

Consumer and other:

Loans on deposits

Kentucky First Federal Bancorp

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

December 31, 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 September 30, 2022.

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

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

September 30, 2022:

December 31, 2022:

(in thousands)

Loans individually evaluated

acquired with deteriorated credit quality*

Unpaid principal balance

and recorded investment

Ending allowance attributed to loans

Loans individually evaluated for impairment:

8 unchanged sentences

Loans on deposits

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

* 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

September 30, 2022

December 31, 2022

Loans receivable (continued)

16 unchanged sentences

Loans on deposits

* These loans were evaluated at acquisition date at their estimated

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

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

September 30, 2022

December 31, 2022

Loans receivable (continued)

The following table presents interest income on

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

loans individually evaluated for impairment by class of loans for the six months ended December 31:

(in thousands)

Average Recorded Investment

With no related allowance recorded:

One- to four-family

Nonresidential real estate

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 December 31:

(in thousands)

Income Recognized

Cash Basis Income Recognized

Average Recorded Investment

Cash Basis Income Recognized

With no related allowance recorded:

2 unchanged sentences

Nonresidential real estate

Consumer and other

Purchased credit-impaired loans

There were no impaired loans with an allowance

recorded at September 30, 2022.

With an allowance recorded:

One- to four-family

Kentucky First Federal Bancorp

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2022

Loans receivable (continued)

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 September 30, 2022, and June 30, 2022:

September 30,

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

(in thousands)

8 unchanged sentences

One- to four-family loans in process of foreclosure

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)

totaled $ 805,000 and $ 489,000 at December 31, 2022 and June 30, 2022, respectively.

Troubled Debt Restructurings:

15 unchanged sentences

payment status.

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

At December 31, 2022 and June 30, 2022, the Company

had $ 1.2 million and $ 1.4 million of loans classified as TDRs, respectively.

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

Of the TDRs at December 31, 2022, approximately 16.3 % were

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

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

During the six- and three-months ended December

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

No TDRs defaulted during the six-month periods ended December 31, 2022 or 2021.

Kentucky First Federal Bancorp

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2022

Loans receivable (continued)

The following table presents the aging of the

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

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

(in thousands)

2 unchanged sentences

Nonresidential real estate

Commercial and industrial

Commercial non-mortgage

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

8 unchanged sentences

Loans on deposits

Kentucky First Federal Bancorp

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2022

Loans receivable (continued)

Credit Quality Indicators:

21 unchanged sentences

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

As of December 31, 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

At June 30, 2022, the risk category of loans

by class of loans was as follows:

Kentucky First Federal Bancorp

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2022

Loans receivable (continued)

At June 30, 2022, the risk category of loans by

class of loans was as follows:

(in thousands)

4 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 September 30, 2022 and June 30, 2022, respectively, is as follows:

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

(in thousands)

September 30,

One- to four-family residential real estate

2 unchanged sentences

(in thousands)

September 30,

Twelve months

3 unchanged sentences

For those purchased loans disclosed above, the

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

Company made no increase in allowance for loan losses for the year ended June 30, 2022, nor for the six-month period ended December 31,

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

Disclosures About Fair Value of Assets and

Kentucky First Federal Bancorp

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2022

Disclosures About Fair Value of Assets

and Liabilities

ASC topic 820 defines fair value as the price

11 unchanged sentences

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.

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.

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

9 unchanged sentences

Quoted Prices

September 30, 2022

December 31, 2022

Agency mortgage-backed:

1 unchanged sentence

Agency mortgage-backed:

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.

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.

Kentucky First Federal Bancorp

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2022

Disclosures About Fair Value of Assets

and Liabilities (continued)

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.

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.

There were no loans measured on a nonrecurring basis using the fair

value of the collateral for collateral-dependent loans, at December 31, 2022 or at June 30, 2022.

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 six- or three-month periods ended December 31, 2022 or 2021.

There was no OREO measured on a nonrecurring basis

during the period at fair value less costs to sell at December 31, 2022 or 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

4 unchanged sentences

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

September 30, 2022

Disclosures About Fair Value of Assets and

Liabilities (continued)

December 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 September 30, 2022 and June 30, 2022 are as follows:

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

Fair Value Measurements at

September 30, 2022 Using

December 31, 2022 Using

(in thousands)

10 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

13 unchanged sentences

Accrued interest payable

Kentucky First Federal Bancorp

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2022

Other Comprehensive Income (Loss)

The Company’s other comprehensive income

(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:

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

Balance at beginning of period

Current period change

Balance at end of period

Other comprehensive income (loss) components and

related tax effects for the periods indicated were as follows:

Six months ended

Three months ended

September 30,

(in thousands)

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

Net-of-tax amount

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