What changed in this filing

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Item 1. Financial Statements

2025-02-14 compared with 2024-11-14 · 314 added, 275 removed, 716 unchanged (45% 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- at fair value

Securities held-to-maturity, at amortized cost-approximate fair value of $ 195 and $ 203 at September 30, 2024 and June 30, 2024, respectively

Securities held-to-maturity, at amortized cost-approximate fair value of $ 180 and $ 203 at December 31, 2024 and June 30, 2024, respectively

Loans held for sale

net of allowance for credit losses of $ 2,141 and $ 2,127 at September 30, 2024 and June 30, 2024, respectively

Loans, net of allowance for credit losses of $ 2,141 and $ 2,127 at December 31, 2024 and June 30, 2024, respectively

Real estate acquired through foreclosure

5 unchanged sentences

Prepaid expenses and other assets

LIABILITIES AND SHAREHOLDERS’

LIABILITIES AND SHAREHOLDERS’ EQUITY

Certificates of deposit

13 unchanged sentences

Retained earnings - restricted

Treasury shares at cost, 509,349 common shares at September 30, 2024 and June 30, 2024, respectively

Treasury shares at cost, 509,349 common shares at December 31, 2024 and June 30, 2024, respectively

Accumulated other comprehensive loss

Total shareholders’ equity

Total liabilities and shareholders’

Total liabilities and shareholders’ equity

See accompanying notes to condensed consolidated

3 unchanged sentences

(Dollars in thousands, except per share data)

Six months ended

Three months ended

September 30,

Interest income

12 unchanged sentences

Earnings on bank-owned life insurance

Net gain (loss) on sales of loans

Net gain on sale of other real estate owned

Net gain on sale of real estate owned

Net gain on sales of loans

Net gain on sales of real estate owned

Total non-interest income

11 unchanged sentences

Total non-interest expense

Loss before income taxes

Income (loss) before income taxes

Income tax (benefit)

LOSS PER SHARE

NET INCOME (LOSS)

EARNINGS PER SHARE

Basic and diluted

6 unchanged sentences

(In thousands)

Six months ended

Three months ended

September 30,

Other comprehensive income (losses), net of tax:

Unrealized gains (losses) on securities designated as available-for-sale, net of taxes (benefits) of $ 80 and $( 46 ) during the respective periods

Net income (loss)

Other comprehensive income (loss), net of tax:

Unrealized holding gains (losses) on securities designated as available-for-sale, net of taxes of $ 20 , $ 31 , $( 60 ) and $ 77 during the respective periods

Comprehensive income (loss)

3 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, 2024

December 31, 2024

comprehensive

1 unchanged sentence

Balance at June 30, 2024

Net income (loss)

Other comprehensive income

Balance at September 30, 2024

September 30, 2023

Balance at December 31, 2024

December 31, 2023

comprehensive

3 unchanged sentences

Balance at July 1, 2023

Other comprehensive loss

Net income (loss)

Other comprehensive income

Cash dividends of $ 0.20 per common share

Balance at December 31, 2023

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, 2024

comprehensive

income (loss)

Balance at September 30, 2024

Net income (loss)

Other comprehensive income (loss)

Balance at December 31, 2024

December 31, 2023

comprehensive

Balance at September 30, 2023

Net income (loss)

Other comprehensive income (loss)

Cash dividends of $ 0.10 per common share

Balance at December 31, 2023

See accompanying notes to condensed consolidated

3 unchanged sentences

(In thousands)

Three months ended

September 30,

Six months ended

Cash flows from operating activities:

1 unchanged sentence

Accretion of purchased loan credit discount

Amortization of deferred loan origination costs (fees)

Amortization of deferred loan origination costs (fees), net

Amortization of premiums on investment securities

Net (gain) loss on sale of loans

Net gain on sale of loans

Net (gain) loss on sale of real estate owned

9 unchanged sentences

Other liabilities

Net cash used in operating activities

Net cash provided by (used in) operating activities

Cash flows from investing activities:

2 unchanged sentences

Available for sale

Proceeds from sale of FHLB stock

Purchase of FHLB stock

Proceeds from redemption of FHLB stock

Loans originated for investment, net of principal collected

3 unchanged sentences

Cash flows from financing activities:

Net increase (decrease) in deposits

Net increase in deposits

Payments by borrowers for taxes and insurance, net

2 unchanged sentences

Dividends paid on common stock

Net cash provided by financing activities

Net increase (decrease) in cash and cash equivalents

Net cash provided by (used in) financing activities

Net increase in cash and cash equivalents

Beginning cash and cash equivalents

5 unchanged sentences

(In thousands)

Three months ended

September 30,

Six months ended

Supplemental disclosure of cash flow information:

5 unchanged sentences

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

September 30, 2024

December 31, 2024

The Kentucky First Federal Bancorp (“Kentucky

9 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 three-month period ended September

The results of operations for the six-month period ended December

31, 2024, 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 2024 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 2024 filed with the Securities and

Exchange Commission.

Principles of Consolidation - The

11 unchanged sentences

those we have both the intent and ability to hold to maturity and are reported at amortized cost.

Securities that are not considered

held-to-maturity are considered either trading or available-for-sale securities in accordance with Financial Accounting Standards Board

Accounting Standards Codification (“ASC”) 320, Investments – Debt Securities, and are reported at fair value

in the statement of financial position.

Securities that are not considered held-to-maturity

are considered either trading or available-for-sale securities in accordance with Financial Accounting Standards Board Accounting Standards

Codification (“ASC”) 320, Investments – Debt Securities, and are reported at fair value in the statement of financial

We have no trading securities.

The adjustment to fair value for available-for-sale securities

for unrealized gains and losses is included as a separate component of shareholders’ equity, net of tax.

Loans – Loans for which we have

the ability and intent to hold until maturity and/or payoff are reported at the carrying value of the unpaid principal reduced by unearned

The adjustment to fair value for available-for-sale securities for unrealized gains and losses

is included as a separate component of shareholders’ equity, net of tax.

Loans – Loans for which we have the

ability and intent to hold until maturity and/or payoff are reported at the carrying value of the unpaid principal reduced by unearned

interest, an allowance for credit losses and unamortized deferred fees and costs and premiums.

Interest income is accrued on a level

In circumstances where management believes that collection of interest income is uncollectible on specific loans, after

considering economic and business conditions, collateral value and collection efforts, interest accrual is discontinued.

Interest income

may be recognized on the cash basis when received unless a determination has been made by management to apply all of the payment against

Interest income is accrued on a level yield

In circumstances where management believes that collection of interest income is uncollectible on specific loans, after considering

economic and business conditions, collateral value and collection efforts, interest accrual is discontinued.

Interest income may be recognized

on the cash basis when received unless a determination has been made by management to apply all of the payment against principal.

Kentucky First Federal Bancorp

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

September 30, 2024

December 31, 2024

Basis of Presentation (continued)

7 unchanged sentences

Credit losses are charged to and recoveries are credited to the ACL.

Loans with similar risk characteristics are evaluated

on a collective basis within homogeneous loan pools under ASC 326.

Our homogeneous loan pools are primarily determined by loan purpose

and collateral type.

Pools include residential real estate (composed of one-to four-family, multi-family, and construction), land, farm,

nonresidential real estate, commercial and industrial, and consumer loans (composed of Loans on deposit, home equity, automobile, and

Credits that are nonaccrual status are subject to individual evaluation.

Historical loss rates for loans are adjusted

for significant factors that, in management’s judgment, reflect the impact of any current conditions on loss recognition.

Loans with similar risk characteristics are evaluated on a collective

basis within homogeneous loan pools under ASC 326.

Our homogeneous loan pools are primarily determined by loan purpose and collateral

Pools include residential real estate (composed of one-to-four-family, multi-family, and construction), land, farm, nonresidential

real estate, commercial and industrial, and consumer loans (composed of Loans on deposit, home equity, automobile, and unsecured).

that are nonaccrual status are subject to individual evaluation.

Historical loss rates for loans are adjusted for

significant factors that, in management’s judgment, reflect the impact of any current conditions on loss recognition.

factors used to derive our ACL include delinquency trends, current economic conditions and trends, strength of supervision and administration

5 unchanged sentences

Income Taxes – Income tax expense

is based on the taxes due on the consolidated tax return plus deferred taxes on the expected future tax benefits and consequences of

temporary differences between carrying amounts and tax bases of assets and liabilities, using enacted tax rates.

is based on the taxes due on the consolidated tax return plus deferred taxes on the expected future tax benefits and consequences of temporary

differences between carrying amounts and tax bases of assets and liabilities, using enacted tax rates.

New Accounting Standards

10 unchanged sentences

The allowance for credit losses for purchased financial assets with a more-than-insignificant

amount of credit deterioration since origination (referred to as “PCD assets”), should be determined in a similar manner

to other financial assets measured on an amortized cost basis.

However, upon initial recognition, the allowance for credit losses is

added to the purchase price to determine the initial amortized cost basis.

The subsequent accounting for PCD financial assets is the

same expected loss model described herein.

amount of credit deterioration since origination (referred to as “PCD assets”), should be determined in a similar manner to

other financial assets measured on an amortized cost basis.

However, upon initial recognition, the allowance for credit losses is added

to the purchase price to determine the initial amortized cost basis.

The subsequent accounting for PCD financial assets is the same expected

loss model described herein.

Kentucky First Federal Bancorp

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

September 30, 2024

December 31, 2024

Basis of Presentation (continued)

17 unchanged sentences

the modified retrospective method for all financial assets measured at amortized cost and off-balance sheet (“OBS”) credit

Upon adoption of the ASU we recorded an increase

in the allowance for credit loss (“ACL”) for loans which represented a $ 497,000 increase from the Allowance for Loan Losses

(“ALLL”) at June 30, 2023.

This transaction further resulted in an increase of $ 54,000 to the ACL for unfunded commitments,

a decrease of $ 414,000 to retained earnings and a deferred tax asset of $ 137,000 .

A liability of $ 57,000 is in place at September

30, 2024 to account for off-balance sheet unfunded commitments compared to $ 54,000 at September 30, 2023.

Upon adoption of the ASU we recorded an increase in the allowance for

credit loss (“ACL”) for loans which represented a $ 497,000 increase from the Allowance for Loan Losses (“ALLL”)

at June 30, 2023.

This transaction further resulted in an increase of $ 54,000 to the ACL for unfunded commitments, a decrease of $ 414,000

to retained earnings and a deferred tax asset of $ 137,000 at July 1, 2023.

A liability of $ 57,000 is in place at December

31, 2024 to account for off-balance sheet unfunded commitments compared to $ 58,000 at December 31, 2023.

Management considers contractual

1 unchanged sentence

These totaled

approximately $ 23.6 million at September 30, 2024 and $ 26.1 million at September 30, 2023.

approximately $ 24.2 million at December 31, 2024 and $ 24.6 million at December 31, 2023.

To calculate the liability, management applied

13 unchanged sentences

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

September 30, 2024

December 31, 2024

Basis of Presentation (continued)

25 unchanged sentences

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:

Six months ended

Three months ended

September 30,

Net loss allocated to common shareholders, basic and diluted

$ ( 175,000 )

Loss per share, basic and diluted

Net income (loss) allocated to common shareholders, basic and diluted

Earnings (loss) per share, basic and diluted

Weighted average common shares outstanding, basic and diluted

There were no stock option shares outstanding

for the three-month periods ended September 30, 2024 and 2023.

for the six- or three-month periods ended December 31, 2024 and 2023.

Kentucky First Federal Bancorp

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

September 30, 2024

December 31, 2024

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, 2024 and June 30, 2024, the corresponding

The following table summarizes the amortized cost

and fair value of securities available-for-sale and securities held-to-maturity at December 31, 2024 and June 30, 2024, the corresponding

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

September 30, 2024

December 31, 2024

(in thousands)

9 unchanged sentences

Agency mortgage-backed:

At September 30, 2024 and June 30, 2024 the Company’s

At December 31, 2024 and June 30, 2024 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 totaled $ 0 at both September

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.

There were no pledged securities for both December

31, 2024 and June 30, 2024.

In addition, at both September 30, 2024 and June 30, 2024, pledged overnight deposits totaled $ 0 .

In addition, at both December 31, 2024 and June 30, 2024, there were no pledged overnight deposits.

We evaluated securities in unrealized loss positions

for evidence of credit loss, considering duration, severity, financial condition of the issuer, our intention to sell or requirement

for evidence of credit loss, considering duration, severity, financial condition of the issuer, our intention to sell or requirement to

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 maturity.

Based on our evaluation, no reserve for credit loss

was considered necessary.

Debt securities in an unrealized loss position as a percent of total debt securities were 86.7 % and 100 % at

September 30, 2024 and June 30, 2024, respectively.

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, 2024.

September 30, 2024

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 reserve for credit loss was

considered necessary.

Debt securities in an unrealized loss position as a percent of total debt securities were 99.9 % and 100 % at December

31, 2024 and June 30, 2024, respectively.

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 December 31, 2024.

December 31, 2024

Available-for-Sale

4 unchanged sentences

Agency mortgage-backed securities

Total temporarily impaired AFS securities

Kentucky First Federal Bancorp

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

September 30, 2024

December 31, 2024

Investment Securities (continued)

5 unchanged sentences

Agency mortgage-backed securities

Total temporarily impaired HTM securities

June 30, 2024

5 unchanged sentences

Agency mortgage-backed securities

Total temporarily impaired AFS securities

Held to Maturity

4 unchanged sentences

Agency mortgage-backed securities

Total temporarily impaired HTM securities

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 credit 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 credit 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.

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.

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.

Kentucky First Federal Bancorp

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

September 30, 2024

December 31, 2024

Loans receivable (continued)

5 unchanged sentences

due are brought current and future payments are reasonably assured.

The composition of the loan portfolio was as

September 30,

The composition of the loan portfolio was as follows:

(in thousands)

7 unchanged sentences

The amounts above include net deferred loan costs

of $ 259,000 and $ 288,000 as of September 30, 2024 and June 30, 2024, respectively.

of $ 221,000 and $ 288,000 as of December 31, 2024 and June 30, 2024, respectively.

Kentucky First Federal Bancorp

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

September 30, 2024

December 31, 2024

Loans receivable (continued)

4 unchanged sentences

Management estimates the allowance balance required

using relevant available information, from internal and external sources, relating to past events, current conditions and reasonable

and supportable forecasts.

Historical credit loss experience, derived from the Company’s data, provides the basis for estimation

of expected credit losses, although management also compares the Company’s data with peer group data.

Adjustments to historical

loss information may be made for differences in:

using relevant available information, from internal and external sources, relating to past events, current conditions and reasonable and

supportable forecasts.

Historical credit loss experience, derived from the Company’s data, provides the basis for estimation of

expected credit losses, although management also compares the Company’s data with peer group data.

Adjustments to historical loss

information may be made for differences in:

lending policy, procedures and practice;

economic conditions;

the nature and volume

of the loan portfolio;

the nature and volume of the

loan portfolio;

volume delinquent and problem loans;

the current and anticipated economic conditions in the primary lending area;

and other external factors.

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.

Loans that do not share risk characteristics

are evaluated on an individual basis.

other external factors.

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.

Loans that do not share risk characteristics are

evaluated on an individual basis.

Loans evaluated individually are not included in the pool evaluation.

When management determines

that foreclosure is probable or when the borrower is experiencing financial difficulty at the reporting date and repayment is expected

to be provided substantially through the sale of the collateral, the expected credit losses are based on the fair value of the collateral

at the reporting date, less any discounts and selling costs.

When management determines that

foreclosure is probable or when the borrower is experiencing financial difficulty at the reporting date and repayment is expected to be

provided substantially through the sale of the collateral, the expected credit losses are based on the fair value of the collateral at

the reporting date, less any discounts and selling costs.

Management monitors loan performance on a monthly

basis and performs a quarterly evaluation of the adequacy of the ACL.

The Banks begin enhanced monitoring of all loans rated 5-Watch

or worse and obtain a new appraisal or asset valuation for most loans placed on nonaccrual status.

The Banks begin enhanced monitoring of all loans rated 5-Watch or

worse and obtain a new appraisal or asset valuation for most loans placed on nonaccrual status.

New appraisals are usually not obtained

10 unchanged sentences

Management monitors the adequacy of the ACL on an ongoing basis and reports its adequacy quarterly to the Board of Directors.

Management believes the ACL at September 30, 2024 is adequate.

believes the ACL at December 31, 2024 is adequate.

Kentucky First Federal Bancorp

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

September 30, 2024

December 31, 2024

Loans receivable (continued)

14 unchanged sentences

on the payment status of the loans.

Nonperforming consumer loans are loans that are nonaccrual or 90 days or more past due and still

Nonperforming consumer loans are loans that are nonaccrual or 90 days or more past due and still accruing.

Our portfolio segments include residential real

3 unchanged sentences

Residential Real Estate

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.

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.

We further 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

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

2 unchanged sentences

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

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

8 unchanged sentences

multi-family (five or more units).

Generally, these loans are originated for 25 years or less and do not exceed 80 % of the appraised

Generally, these loans are originated for 25 years or less and do not exceed 80 % of the appraised value.

Loans secured by multi-family generally have larger balances and involve a greater degree of risk than one-to-four-family residential

6 unchanged sentences

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

September 30, 2024

December 31, 2024

Loans receivable (continued)

4 unchanged sentences

are originated for 25 years or less and do not exceed 80 % of the appraised value.

As with multi-family loans, commercial real estate

loans generally have larger balances and involve a greater degree of risk than one- to four-family residential mortgage loans and these

loans depend on the borrower’s creditworthiness, as well as the feasibility and cash flow potential of the project.

loans secured by nonresidential 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

As with multi-family loans, commercial real estate loans

generally have larger balances and involve a greater degree of risk than one-to-four-family residential mortgage loans and these loans

depend on the borrower’s creditworthiness, as well as the feasibility and cash flow potential of the project.

Payments on loans

secured by nonresidential 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

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.

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 is minimal.

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.

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.

Impaired loans

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

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

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.

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.

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

6 unchanged sentences

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

September 30, 2024

December 31, 2024

Loans receivable (continued)

The following table presents the activity in

the ACL by portfolio segment for the three months ended September 30, 2024.

September 30, 2024:

The following table presents the activity in the

ACL by portfolio segment for the six months ended December 31, 2024.

December 31, 2024:

(in thousands)

5 unchanged sentences

Consumer and other:

Loans on deposits

The following table presents the activity in the

ACL by portfolio segment for the three months ended September 30, 2023 after restatement of beginning balance for adoption of ASC 326:

September 30, 2023:

ACL by portfolio segment for the six months ended December 31, 2023, after restatement of beginning balance for adoption of ASC 326:

December 31, 2023:

(in thousands)

for (recovery of) credit losses on loans

Credit Losses for Unfunded

Residential real estate:

6 unchanged sentences

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

September 30, 2024

December 31, 2024

Loans receivable (continued)

The following table presents the activity in

the ACL by portfolio segment for the three months ended December 31, 2024:

December 31, 2024:

(in thousands)

Balance at September 30, 2024

for (recovery of) credit losses on loans

Residential real estate:

One-to-four-family

Nonresidential real estate

Commercial and industrial

Consumer and other:

The following table presents the activity in the ACL by portfolio segment

for the three months ended December 31, 2023:

December 31, 2023:

(in thousands)

Balance at September 30, 2023

for (recovery of) credit losses on loans

Residential real estate:

One-to-four-family

Nonresidential real estate

Commercial nonmortgage

Consumer and other:

Kentucky First Federal Bancorp

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2024

Loans receivable (continued)

The following table presents the amortized cost

basis of collateral-dependent loans by portfolio class as of September 30, 2024.

basis of collateral-dependent loans by portfolio class as of December 31, 2024.

The recorded investment in loans excludes accrued interest

receivable due to immateriality.

September 30, 2024:

December 31, 2024:

(in thousands)

4 unchanged sentences

Nonresidential real estate

Commercial and industrial

Real estate stands as collateral for loans individually

11 unchanged sentences

Nonresidential real estate

Commercial and industrial

Kentucky First Federal Bancorp

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

September 30, 2024

December 31, 2024

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, 2024, and June 30, 2024:

September 30, 2024

in nonaccrual and loans past due over 89 days still on accrual by class of loans as of December 31, 2024, and June 30, 2024:

December 31, 2024

June 30, 2024

3 unchanged sentences

Nonresidential real estate

Commercial and industrial

Consumer and other:

Nonaccrual loans had no related allowance for

credit losses based on individual evaluation at September 30, 2024 or June 30, 2024.

One- to four-family loans in process of foreclosure

totaled $ 883,000 and $ 926,000 at September 30, 2024 and June 30, 2024, respectively.

The above total for loans in process of foreclosure

at September 30, 2024 included a loan of $ 758,462 in foreclosure that was subsequently paid in full, along with past due interest and

fees, on October 22, 2024.

There were no loans modified during the three

months ended September 30, 2024 to borrowers experiencing financial difficulties.

credit losses based on individual evaluation at December 31, 2024 or June 30, 2024.

One-to-four-family loans in process of foreclosure totaled $ 165,000

and $ 926,000 at December 31, 2024 and June 30, 2024, respectively.

There were no loans modified during the six months

ended December 31, 2024 to borrowers experiencing financial difficulties.

The following table presents the aging of the

principal balance outstanding in past due loans as of September 30, 2024, by class of loans:

September 30, 2024:

principal balance outstanding in past due loans as of December 31, 2024, by class of loans:

December 31, 2024:

(in thousands)

7 unchanged sentences

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

September 30, 2024

December 31, 2024

Loans receivable (continued)

34 unchanged sentences

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

September 30, 2024

December 31, 2024

Loans receivable (continued)

4 unchanged sentences

See the aging of past due loan

As of September 30, 2024, and based on the most recent analysis performed, the risk category of loans by class of loans is

As of December 31, 2024, and based on the most recent analysis performed, the risk category of loans by class of loans is

(in thousands)

Term Loans Amortized Cost by Origination Fiscal Year

As of September 30, 2024

Loans Amortized Cost by Origination Fiscal Year

As of December 31, 2024

Residential real estate:

26 unchanged sentences

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

September 30, 2024

December 31, 2024

Loans receivable (continued)

2 unchanged sentences

(in thousands)

Term Loans Amortized Cost by Origination Fiscal Year

Loans Amortized Cost by Origination Fiscal Year

As of June 30, 2024

2 unchanged sentences

Special mention

Current period gross charge offs

Current period

gross charge offs

Special mention

Current period gross charge offs

Current period

gross charge offs

Special mention

Current period gross charge offs

Current period

gross charge offs

Special mention

Current period gross charge offs

Current period

gross charge offs

Special mention

Current period gross charge offs

Current period

gross charge offs

Nonresidential real estate

Special mention

Current period gross charge offs

Current period

gross charge offs

Commercial and industrial

Special mention

Current period gross charge offs

Current period

gross charge offs

Special mention

Current period gross charge offs

Current period

gross charge offs

Special mention

Current period gross charge offs

Current period

gross charge offs

Special mention

Current period gross charge offs

Current period

gross charge offs

Special mention

Current period gross charge offs

Current period

gross charge offs

Kentucky First Federal Bancorp

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

September 30, 2024

December 31, 2024

Loans receivable (continued)

At September 30, 2024, the risk category of loans

At December 31, 2024, the risk category of loans

by class of loans was as follows:

20 unchanged sentences

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

of $ 25,000 and $ 25,000 at September 30, 2024 and June 30, 2024, respectively, is as follows:

of $ 25,000 and $ 25,000 at December 31, 2024 and June 30, 2024, respectively, is as follows:

(in thousands)

September 30,

One-to-four-family residential real estate

2 unchanged sentences

(in thousands)

September 30,

Twelve months

2 unchanged sentences

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, 2024, nor for the three-month period ended September

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

For those purchased loans disclosed above, the Company made no increase

in allowance for credit losses for the year ended June 30, 2024, or for the six-month period ended December 31, 2024.

Neither were any

allowance for credit losses reversed during those periods.

Kentucky First Federal Bancorp

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

September 30, 2024

December 31, 2024

Disclosures About Fair Value of Assets

28 unchanged sentences

Quoted Prices

September 30, 2024

December 31, 2024

Agency mortgage-backed:

2 unchanged sentences

There were no assets or liabilities which were

measured at fair value on a nonrecurring basis at September 30, 2024, and June 30, 2024.

measured at fair value on a nonrecurring basis at December 31, 2024, and June 30, 2024.

The following is a disclosure of the fair value

9 unchanged sentences

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

September 30, 2024

December 31, 2024

Disclosures About Fair Value of Assets

1 unchanged sentence

Based on the foregoing methods and assumptions,

the carrying value and fair value of the Company’s financial instruments at September 30, 2024 and June 30, 2024 are as follows:

the carrying value and fair value of the Company’s financial instruments at December 31, 2024 and June 30, 2024 are as follows:

Fair Value Measurements at

September 30, 2024 Using

December 31, 2024 Using

(in thousands)

26 unchanged sentences

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

September 30, 2024

December 31, 2024

Other Comprehensive Income (Loss)

4 unchanged sentences

(in thousands)

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

Formal Written Agreement

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