What changed in this filing

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Item 1. Financial Statements

2025-05-15 compared with 2025-02-14 · 189 added, 167 removed, 863 unchanged (29% of the section changed)

8 unchanged sentences

Securities available-for-sale- at fair value

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

Securities held-to-maturity, at amortized cost-approximate fair value of $ 174 and $ 203 at March 31, 2025 and June 30, 2024, respectively

Loans held for sale

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

Loans, net of allowance for credit losses of $ 2,161 and $ 2,127 at March 31, 2025 and June 30, 2024, respectively

Real estate acquired through foreclosure

21 unchanged sentences

Retained earnings - restricted

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

Treasury shares at cost, 509,349 common shares at March 31, 2025 and June 30, 2024, respectively

Accumulated other comprehensive loss

6 unchanged sentences

(Dollars in thousands, except per share data)

Six months ended

Nine months ended

Three months ended

29 unchanged sentences

Income (loss) before income taxes

Income tax (benefit)

Income tax expense (benefit)

NET INCOME (LOSS)

EARNINGS PER SHARE

EARNINGS (LOSS) PER SHARE

Basic and diluted

6 unchanged sentences

(In thousands)

Six months ended

Nine months ended

Three months ended

1 unchanged sentence

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

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

net of taxes of $( 50 ), $( 11 ), $( 30 ) and $ 21 during the respective periods

Comprehensive income (loss)

3 unchanged sentences

CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’

For the six months ended

For the nine months ended

(Dollar amounts in thousands, except per share

December 31, 2024

March 31, 2025

comprehensive

1 unchanged sentence

Balance at June 30, 2024

Net income (loss)

Other comprehensive income

Balance at December 31, 2024

December 31, 2023

Balance at March 31, 2025

March 31, 2024

comprehensive

3 unchanged sentences

Balance at July 1, 2023

Net income (loss)

Other comprehensive income

Cash dividends of $ 0.20 per common share

Balance at December 31, 2023

Balance at March 31, 2024

See accompanying notes to condensed consolidated

4 unchanged sentences

(Dollar amounts in thousands, except per share

December 31, 2024

March 31, 2025

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 March 31, 2025

March 31, 2024

comprehensive

Balance at December 31, 2023

Other comprehensive loss

Balance at March 31, 2024

See accompanying notes to condensed consolidated

3 unchanged sentences

(In thousands)

Six months ended

Nine months ended

Cash flows from operating activities:

Adjustments to reconcile net loss to net cash from operating activities

Net income (loss)

Adjustments to reconcile net income (loss) to net cash from operating activities

Accretion of purchased loan credit discount

2 unchanged sentences

Net gain on sale of loans

Net (gain) loss on sale of real estate owned

Net gain on sale of real estate owned

Earnings on bank-owned life insurance

Provision for credit losses

Provision for (recovery of) credit losses

Origination of loans held for sale

6 unchanged sentences

Other liabilities

Net cash provided by (used in) operating activities

Net cash used in operating activities

Cash flows from investing activities:

14 unchanged sentences

Dividends paid on common stock

Net cash provided by (used in) financing activities

Net cash provided by financing activities

Net increase in cash and cash equivalents

6 unchanged sentences

(In thousands)

Six months ended

Nine months ended

Supplemental disclosure of cash flow information:

5 unchanged sentences

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2024

March 31, 2025

The Kentucky First Federal Bancorp (“Kentucky

19 unchanged sentences

of the condensed consolidated financial statements have been included.

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

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

31, 2025, are not necessarily indicative of the results which may be expected for an entire fiscal year.

37 unchanged sentences

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2024

March 31, 2025

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

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.

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

29 unchanged sentences

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2024

March 31, 2025

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 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

commitments, most of which are commitments to complete construction projects or the balance of unfunded lines of credit.

These totaled

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

To calculate the liability, management applied

a loss criteria similar to that used for funded loans to calculate the ACL.

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 $ 59,000 is in place at March 31,

2025 to account for off-balance sheet unfunded commitments compared to $ 57,000 at March 31, 2024.

Management considers contractual commitments,

most of which are commitments to complete construction projects or the balance of unfunded lines of credit.

These totaled approximately

$ 26.4 million at March 31, 2025 and $ 21.8 million at March 31, 2024.

To calculate the liability, management applied a loss criteria similar

to that used for funded loans to calculate the ACL.

The following table illustrates the impact of

11 unchanged sentences

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2024

March 31, 2025

Basis of Presentation (continued)

28 unchanged sentences

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

Six months ended

Nine months ended

Three months ended

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

$ ( 643,000 )

$ ( 107,000 )

Earnings (loss) per share, basic and diluted

1 unchanged sentence

There were no stock option shares outstanding

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

for the nine- or three-month periods ended March 31, 2025 and 2024.

Kentucky First Federal Bancorp

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2024

March 31, 2025

Investment Securities

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

and fair value of securities available-for-sale and securities held-to-maturity at March 31, 2025 and June 30, 2024, the corresponding

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

December 31, 2024

March 31, 2025

(in thousands)

9 unchanged sentences

Agency mortgage-backed:

At December 31, 2024 and June 30, 2024 the Company’s

At March 31, 2025 and June 30, 2024 the Company’s

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

1 unchanged sentence

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

There were no pledged securities for both March

31, 2025 and June 30, 2024.

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

In addition, at both March 31, 2025 and June 30, 2024, there were no pledged overnight deposits.

We evaluated securities in unrealized loss positions

5 unchanged sentences

considered necessary.

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

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

31, 2025 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

of time the individual securities have been in a continuous unrealized loss position as of March 31, 2025.

March 31, 2025

Available-for-Sale

6 unchanged sentences

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2024

March 31, 2025

Investment Securities (continued)

19 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 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.

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

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.

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

December 31, 2024

March 31, 2025

Loans receivable (continued)

15 unchanged sentences

The amounts above include net deferred loan costs

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

of $ 183,000 and $ 288,000 as of March 31, 2025 and June 30, 2024, respectively.

Kentucky First Federal Bancorp

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2024

March 31, 2025

Loans receivable (continued)

42 unchanged sentences

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

believes the ACL at December 31, 2024 is adequate.

believes the ACL at March 31, 2025 is adequate.

Kentucky First Federal Bancorp

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2024

March 31, 2025

Loans receivable (continued)

20 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.

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

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

4 unchanged sentences

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 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

17 unchanged sentences

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2024

March 31, 2025

Loans receivable (continued)

59 unchanged sentences

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2024

March 31, 2025

Loans receivable (continued)

The following table presents the activity in the

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

December 31, 2024:

ACL by portfolio segment for the nine months ended March 31, 2025.

March 31, 2025:

(in thousands)

6 unchanged sentences

The following table presents the activity in the

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:

ACL by portfolio segment for the nine months ended March 31, 2024, after restatement of beginning balance for adoption of ASC 326:

March 31, 2024:

(in thousands)

for (recovery of) credit losses on loans

(recovery of)

credit losses

Credit Losses for Unfunded

7 unchanged sentences

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2024

March 31, 2025

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:

The following table presents the activity in the

ACL by portfolio segment for the three months ended March 31, 2025:

March 31, 2025:

(in thousands)

Balance at September 30, 2024

for (recovery of) credit losses on loans

4 unchanged sentences

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:

The following table presents the activity in the

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

March 31, 2024:

(in thousands)

Balance at September 30, 2023

for (recovery of) credit losses on loans

(recovery of) credit

Residential real estate:

3 unchanged sentences

Consumer and other:

Loans on deposits

Kentucky First Federal Bancorp

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2024

March 31, 2025

Loans receivable (continued)

The following table presents the amortized cost

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

basis of collateral-dependent loans by portfolio class as of March 31, 2025.

The recorded investment in loans excludes accrued interest

receivable due to immateriality.

December 31, 2024:

March 31, 2025:

(in thousands)

19 unchanged sentences

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2024

March 31, 2025

Loans receivable (continued)

The following table presents the recorded investment

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

in nonaccrual and loans past due over 89 days still on accrual by class of loans as of March 31, 2025, and June 30, 2024:

March 31, 2025

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 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.

credit losses based on individual evaluation at March 31, 2025 or June 30, 2024.

One-to-four-family loans in process of foreclosure

totaled $ 154,000 and $ 926,000 at March 31, 2025 and June 30, 2024, respectively.

There were no loans modified during the nine months

ended March 31, 2025 to borrowers experiencing financial difficulties.

The following table presents the aging of the

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

December 31, 2024:

principal balance outstanding in past due loans as of March 31, 2025, by class of loans:

March 31, 2025:

(in thousands)

7 unchanged sentences

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2024

March 31, 2025

Loans receivable (continued)

34 unchanged sentences

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2024

March 31, 2025

Loans receivable (continued)

4 unchanged sentences

See the aging of past due loan

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

As of March 31, 2025, and based on the most recent analysis performed, the risk category of loans by class of loans is as

(in thousands)

Loans Amortized Cost by Origination Fiscal Year

As of December 31, 2024

Term Loans Amortized Cost by Origination Fiscal Year

As of March 31, 2025

Residential real estate:

8 unchanged sentences

Current period gross charge offs

Kentucky First Federal Bancorp

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

March 31, 2025

Loans receivable (continued)

(in thousands)

Term Loans Amortized Cost by Origination Fiscal Year

As of March 31, 2025

Special mention

8 unchanged sentences

Current period gross charge offs

Kentucky First Federal Bancorp

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

March 31, 2025

Loans receivable (continued)

(in thousands)

Term Loans Amortized Cost by Origination Fiscal Year

As of March 31, 2025

Special mention

6 unchanged sentences

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2024

March 31, 2025

Loans receivable (continued)

2 unchanged sentences

(in thousands)

Loans Amortized Cost by Origination Fiscal Year

Term 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

Kentucky First Federal Bancorp

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

March 31, 2025

Loans receivable (continued)

(in thousands)

Term Loans Amortized Cost by Origination Fiscal Year

As of June 30, 2024

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

Kentucky First Federal Bancorp

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

March 31, 2025

Loans receivable (continued)

(in thousands)

Term Loans Amortized Cost by Origination Fiscal Year

As of June 30, 2024

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

December 31, 2024

March 31, 2025

Loans receivable (continued)

At December 31, 2024, the risk category of loans

At March 31, 2025, the risk category of loans

by class of loans was as follows:

15 unchanged sentences

Loans on deposits

Kentucky First Federal Bancorp

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

March 31, 2025

Loans receivable (continued)

Purchased Credit Impaired Loans:

3 unchanged sentences

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

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

of $ 25,000 and $ 25,000 at March 31, 2025 and June 30, 2024, respectively, is as follows:

(in thousands)

7 unchanged sentences

Balance at end of period

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.

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 nine-month period ended March 31,

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

Kentucky First Federal Bancorp

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2024

March 31, 2025

Disclosures About Fair Value of Assets

28 unchanged sentences

Quoted Prices

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 December 31, 2024, and June 30, 2024.

measured at fair value on a nonrecurring basis at March 31, 2025, and June 30, 2024.

The following is a disclosure of the fair value

9 unchanged sentences

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2024

March 31, 2025

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 December 31, 2024 and June 30, 2024 are as follows:

the carrying value and fair value of the Company’s financial instruments at March 31, 2025 and June 30, 2024 are as follows:

Fair Value Measurements at

December 31, 2024 Using

March 31, 2025 Using

(in thousands)

26 unchanged sentences

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2024

March 31, 2025

Other Comprehensive Income (Loss)

9 unchanged sentences

related tax effects for the periods indicated were as follows:

Six months ended

Nine months ended

Three months ended

3 unchanged sentences

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