What changed in this filing

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Item 1. Financial Statements

2026-02-13 compared with 2025-11-14 · 365 added, 359 removed, 684 unchanged (51% 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 $ 159 and $ 167 at September 30, 2025 and June 30, 2025, respectively

Securities held-to-maturity, at amortized cost-approximate fair value of $ 151 and $ 167 at December 31, 2025 and June 30, 2025, respectively

Loans held for sale

Loans, net of allowance for credit losses of $ 2,166 and $ 2,170 at September 30, 2025 and June 30, 2025, respectively

Loans, net of allowance for credit losses of $ 2,176 and $ 2,170 at December 31, 2025 and June 30, 2025, respectively

Office premises and equipment - at depreciated cost

2 unchanged sentences

Bank-owned life insurance

Prepaid income taxes

Prepaid expenses and other assets

5 unchanged sentences

Accrued interest payable

Accrued Income Taxes

Accrued income tax

Deferred income taxes

8 unchanged sentences

Retained earnings - restricted

Treasury shares at cost, 509,349 common shares at September 30, 2025 and June 30, 2025, respectively

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

Accumulated other comprehensive 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 sales of real estate owned

Total non-interest income

21 unchanged sentences

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE

INCOME (LOSS)

(In thousands)

Six months ended

Three months ended

September 30,

Net income (loss)

Other comprehensive income, net of tax:

Unrealized gains on securities designated as available-for-sale, net of taxes of $ 22 and $ 80 during the respective periods

Comprehensive income

Other comprehensive income (loss), net of tax:

Unrealized holding gains (losses) on securities designated as available-for-sale, net of taxes of $ 28 , $ 20 , $ 6 and $( 60 ) during the respective periods

Comprehensive income (loss)

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, 2025

December 31, 2025

comprehensive

1 unchanged sentence

Other comprehensive income, net of tax

Balance at September 30, 2025

September 30, 2024

Balance at December 31, 2025

December 31, 2024

comprehensive

1 unchanged sentence

Other comprehensive income, net of tax

Balance at December 31, 2024

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, 2025

comprehensive

Balance at September 30, 2025

Other comprehensive income, net of tax

Balance at December 31, 2025

December 31, 2024

comprehensive

Balance at September 30, 2024

Other comprehensive loss, net of tax

Balance at December 31, 2024

See accompanying notes to condensed consolidated

3 unchanged sentences

(In thousands)

Three months ended

September 30,

Six months ended

Cash flows from operating activities:

Net income (loss)

Adjustments to reconcile net loss to net cash from operating activities

Accretion of purchased loan credit discount

Amortization of deferred loan origination fees

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

Amortization of deferred loan origination fees, net

Amortization of premiums on investment securities

5 unchanged sentences

Deferred Income Taxes

Accrued income taxes

Accrued Income Tax

Increase (decrease) in cash, due to changes in:

3 unchanged sentences

Other liabilities

Net cash provided by (used in) operating activities

Net cash provided by operating activities

Cash flows from investing activities:

Purchase of investments-AFS

Purchase of securities available for sale

Securities maturities, prepayments and calls:

7 unchanged sentences

Cash flows from financing activities:

Net decrease in deposits

Net change in deposits

Payments by borrowers for taxes and insurance, net

2 unchanged sentences

Net cash provided by (used in) financing activities

Net decrease in cash and cash equivalents

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, 2025

December 31, 2025

The Kentucky First Federal Bancorp (“Kentucky

7 unchanged sentences

Basis of Presentation

The accompanying unaudited condensed consolidated financial statements,

which represent the condensed consolidated balance sheets and results of operations of the Company, were prepared in accordance with the

instructions for Form 10-Q and, therefore, do not include information or footnotes necessary for a complete presentation of financial

position, results of operations and cash flows in conformity with U.S.

generally accepted accounting principles.

However, in the opinion

of management, all adjustments (consisting of only normal recurring adjustments) which are necessary for a fair presentation of the condensed

consolidated financial statements have been included.

The results of operations for the three-month period ended September 30, 2025, 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, 2025, 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 2025 filed with the Securities and

Exchange Commission.

The accompanying unaudited condensed

consolidated financial statements, which represent the condensed consolidated balance sheets and results of operations of the

Company, were prepared in accordance with the instructions for Form 10-Q and, therefore, do not include information or footnotes

necessary for a complete presentation of financial position, results of operations and cash flows in conformity with U.S.

accepted accounting principles.

However, in the opinion of management, all adjustments (consisting of only normal recurring

adjustments) which are necessary for a fair presentation of the condensed consolidated financial statements have been included.

results of operations for the six-month period ended December 31, 2025, 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, 2025, 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.

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 2025 filed with the Securities and Exchange Commission on September 30, 2025.

Principles of Consolidation - The

27 unchanged sentences

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

September 30, 2025

December 31, 2025

Basis of Presentation (continued)

Critical Accounting Policies and Estimates (continued)

Critical Accounting Policies and Estimates

Allowance for Credit Losses – We

account for the allowance for credit losses under ASC 326, Measurement of Credit Losses on Financial Instruments, which is commonly known

We measure expected credit losses of financial assets on a weighted average remaining maturity (WARM) basis.

We maintain an allowance for credit losses (“ACL”)

at a level that is appropriate to cover estimated credit losses on individually evaluated loans, as well as estimated credit losses inherent

in the estimated life of the loan portfolio.

account for the allowance for credit losses (ACL) under ASC 326, Measurement of Credit Losses on Financial Instruments, which is

commonly known as CECL.

We measure expected credit losses of financial assets on a weighted average remaining maturity (WARM)

We maintain an ACL at a level that is appropriate

to cover estimated credit losses on individually evaluated loans, as well as estimated credit losses inherent in the estimated life of

the loan portfolio.

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

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 unsecured).

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.

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

of the loan portfolio, levels of underperforming loans, trends in loan losses and underwriting exceptions.

Reasonable and supportable

economic forecasts that may offset collectibility are also included as factors in our ACL model.

Management continually reevaluates the

other subjective factors included in its ACL analysis.

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.

Qualitative factors used to derive our ACL include delinquency trends, current economic conditions

and trends, strength of supervision and administration of the loan portfolio, levels of underperforming loans, trends in loan losses

and underwriting exceptions.

Reasonable and supportable economic forecasts that may offset collectibility are also included as

factors in our ACL model.

Management continually reevaluates the other subjective factors included in its ACL analysis.

Income Taxes – Income tax expense

14 unchanged sentences

to where cash flows associated with derivative instruments and their related gains and losses are presented in the statement of cash flows.

Kentucky First Federal Bancorp

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2025

Basis of Presentation (continued)

Recently Issued Accounting Pronouncements

Not Yet Effective (continued)

The effective date for each amendment will be

5 unchanged sentences

on the Company’s financial statements.

Kentucky First Federal Bancorp

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

September 30, 2025

Basis of Presentation (continued)

Recently Issued Accounting Pronouncements

Not Yet Effective (continued)

In November 2024, FASB issued ASU 2024-03 Income

Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (Subtopic 220-40).

The amendments in this update

require disclosure, in the notes to financial statements, of specified information about certain costs and expenses.

The amendments require

that at each interim and annual reporting period (1) the Company disclose the amounts of (a) employee compensation, (b) depreciation,

and (c) intangible asset amortization included in each relevant expense caption presented on the face of the income statement within continuing

operations that contains any of the expense categories listed;

(2) include certain amounts that are already required to be disclosed under

current generally accepted accounting principles in the same disclosure as the other disaggregation requirements;

(3) disclose a qualitative

description of the amounts remaining in relevant expense captions that are not separately disaggregated quantitatively;

(4) disclose the

total amount of selling expenses and, in annual reporting periods, the Company’s definition of selling expenses.

The amendments

in this update are effective for annual reporting periods beginning after December 15, 2026, and interim reporting periods beginning after

December 15, 2027.

Early adoption is permitted.

The amendments in this update should be applied either (1) prospectively to financial

statements issued for reporting periods after the effective date of this update or (2) retrospectively to any or all prior periods presented

in the financial statements.

Management is currently evaluating the update and does not expect adoption of the update to have a material

effect on the Company’s financial position or results of operations.

In November 2024, FASB issued ASU 2024-03

Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (Subtopic 220-40).

The amendments in

this update require disclosure, in the notes to financial statements, of specified information about certain costs and expenses.

amendments require that at each interim and annual reporting period (1) the Company disclose the amounts of (a) employee

compensation, (b) depreciation, and (c) intangible asset amortization included in each relevant expense caption presented on the

face of the income statement within continuing operations that contains any of the expense categories listed;

(2) include certain

amounts that are already required to be disclosed under current generally accepted accounting principles in the same disclosure as

the other disaggregation requirements;

(3) disclose a qualitative description of the amounts remaining in relevant expense captions

that are not separately disaggregated quantitatively;

(4) disclose the total amount of selling expenses and, in annual reporting

periods, the Company’s definition of selling expenses.

The amendments in this update are effective for annual reporting

periods beginning after December 15, 2026, and interim reporting periods beginning after December 15, 2027.

Early adoption is

The amendments in this update should be applied either (1) prospectively to financial statements issued for reporting

periods after the effective date of this update or (2) retrospectively to any or all prior periods presented in the financial

Management is currently evaluating the update and does not expect adoption of the update to have a material effect on

the Company’s financial position or results of operations.

Accounting Pronouncements Adopted in Fiscal

In November 2023, FASB issued ASU 2023-07 Segment Reporting (ASU 2023-07).

The amendments in ASU 2023-07 apply to all public entities

that are required to report segment information in accordance with FASB ASC Topic 280, Segment Reporting.

The amendments in ASU 2023-07

are intended to improve reportable segment disclosure requirements primarily through requiring enhanced disclosures about significant

segment expenses.

The amendments require that a public entity disclose, on an annual and interim basis, significant segment expenses that

are regularly provided to the Chief Operating Decision Maker (“CODM”) and included within each reported measure of segment profit or loss.

Public entities are required to

disclose, on an annual and interim basis, an amount for other segment items by reportable segment and a description of its composition.

In addition, public entities must provide all annual disclosures about a reportable segment’s profit or loss and assets currently

required by FASB ASC Topic 280, Segment Reporting in interim periods.

The amendments clarify that if the CODM uses more than one measure

of a segment’s profit or loss in assessing segment performance and deciding how to allocate resources, a public entity may report

one or more of those additional measures of segment profit.

However, at least one of the reported segment profit or loss measures (or

the single reported measure, if only one is disclosed) should be the measure that is most consistent with the measurement principles used

in measuring the corresponding amounts in the public entity’s consolidated financial statements.

In November 2023, FASB issued ASU 2023-07 Segment

Reporting (ASU 2023-07).

The amendments in ASU 2023-07 apply to all public entities that are required to report segment information in

accordance with FASB ASC Topic 280, Segment Reporting.

The amendments in ASU 2023-07 are intended to improve reportable segment disclosure

requirements primarily through requiring enhanced disclosures about significant segment expenses.

The amendments require that a public

entity disclose the title and position of the CODM and an explanation of how the CODM uses the reported measure(s) of segment profit or

loss in assessing segment performance and deciding how to allocate resources.

Finally, the amendments require that a public entity that

has a single reportable segment provide all the disclosures required by the amendments in ASU 2023-07 and all existing segment disclosures

in ASC Topic 280.

ASU 2023-07 is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years

beginning after December 15, 2024.

A public entity that adopts ASU 2023-07 is required to apply the amendments retrospectively to all

prior periods presented in the financial statements.

Upon adoption of ASU 2023-07, the segment expense categories and amounts disclosed

in the prior periods should be based on the significant segment expense categories identified and disclosed in the period of adoption.

The Company adopted ASU 2023-07 on January 1, 2025 with little impact as currently the Company's financial service operations are aggregated

into one reportable operating segment.

entity disclose, on an annual and interim basis, significant segment expenses that are regularly provided to the Chief Operating Decision

Maker (“CODM”) and included within each reported measure of segment profit or loss.

Public entities are required to disclose,

on an annual and interim basis, an amount for other segment items by reportable segment and a description of its composition.

public entities must provide all annual disclosures about a reportable segment’s profit or loss and assets currently required by

FASB ASC Topic 280, Segment Reporting in interim periods.

The amendments clarify that if the CODM uses more than one measure of a segment’s

profit or loss in assessing segment performance and deciding how to allocate resources, a public entity may report one or more of those

additional measures of segment profit.

However, at least one of the reported segment profit or loss measures (or the single reported measure,

if only one is disclosed) should be the measure that is most consistent with the measurement principles used in measuring the corresponding

amounts in the public entity’s consolidated financial statements.

The amendments require that a public entity disclose the title

and position of the CODM and an explanation of how the CODM uses the reported measure(s) of segment profit or loss in assessing segment

performance and deciding how to allocate resources.

Finally, the amendments require that a public entity that has a single reportable

segment provide all the disclosures required by the amendments in ASU 2023-07 and all existing segment disclosures in ASC Topic 280.

2023-07 is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December

A public entity that adopts ASU 2023-07 is required to apply the amendments retrospectively to all prior periods presented in

the financial statements.

Upon adoption of ASU 2023-07, the segment expense categories and amounts disclosed in the prior periods should

be based on the significant segment expense categories identified and disclosed in the period of adoption.

The Company adopted ASU 2023-07

on January 1, 2025 with little impact as currently the Company’s financial service operations are aggregated into one reportable operating

In December 2023, FASB issued ASU No.

4 unchanged sentences

and income taxes paid information.

ASU 2023-09 is to be applied on a prospective basis and is effective for annual periods beginning after

December 15, 2024 with early adoption permitted.

ASU 2023-09 will impact income tax disclosures, and the Company does not expect a material

ASU 2023-09 is to be applied on a prospective basis and became effective for annual periods beginning after

December 15, 2024.

ASU 2023-09 impacts income tax disclosures, and did not have a material

impact to the Company’s consolidated financial statements.

1 unchanged sentence

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

September 30, 2025

December 31, 2025

Basis of Presentation (continued)

22 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 (loss) allocated to common shareholders, basic and diluted

2 unchanged sentences

There were no stock option shares outstanding

for the three-month periods ended September 30, 2025 and 2024.

for the six- or three-month periods ended December 31, 2025 and 2024.

Kentucky First Federal Bancorp

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

September 30, 2025

December 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 September 30, 2025 and June 30, 2025, the corresponding

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

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

September 30, 2025

December 31, 2025

(in thousands)

9 unchanged sentences

Agency mortgage-backed:

At September 30, 2025 and June 30, 2025 the Company’s

At December 31, 2025 and June 30, 2025 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 at both September

There were no pledged securities for both December

31, 2025 and June 30, 2025.

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

In addition, at both December 31, 2025 and June 30, 2025, 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 70.7 % and 88.8 % at

September 30, 2025 and June 30, 2025, 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, 2025.

September 30, 2025

Also, we have no intention to

sell nor believe 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 65.3 % and 88.8 % at December

31, 2025 and June 30, 2025, 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, 2025.

December 31, 2025

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, 2025

December 31, 2025

Investment Securities (continued)

5 unchanged sentences

Agency mortgage-backed securities

Total temporarily impaired HTM securities

June 30, 2025

33 unchanged sentences

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

September 30, 2025

December 31, 2025

Loans receivable (continued)

6 unchanged sentences

The composition of the loan portfolio was as follows:

September 30,

(in thousands)

7 unchanged sentences

The amounts above include net deferred loan costs

of $ 122,000 and $ 144,000 as of September 30, 2025 and June 30, 2025, respectively.

of $ 101,000 and $ 144,000 as of December 31, 2025 and June 30, 2025, respectively.

Kentucky First Federal Bancorp

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

September 30, 2025

December 31, 2025

Loans receivable (continued)

3 unchanged sentences

recoveries, if any, are credited to the allowance.

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:

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:

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;

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.

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

21 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 September 30, 2025 is adequate.

believes the ACL at December 31, 2025 is adequate.

Kentucky First Federal Bancorp

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

September 30, 2025

December 31, 2025

Loans receivable (continued)

52 unchanged sentences

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

September 30, 2025

December 31, 2025

Loans receivable (continued)

45 unchanged sentences

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

We utilize updated independent appraisals to determine

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

In some situations,

management does not secure an updated independent appraisal.

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

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

With respect to the Banks’ investment in

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

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

We obtain updated independent appraisals

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

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

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.

Kentucky First Federal Bancorp

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

September 30, 2025

December 31, 2025

Loans receivable (continued)

The following table presents the activity in the

ACL by portfolio segment for the three months ended September 30, 2025.

September 30, 2025:

ACL by portfolio segment for the six months ended December 31, 2025.

December 31, 2025:

(in thousands)

for (recovery of) credit losses on loans

September 30,

for (recovery

Residential real estate:

5 unchanged sentences

The following table presents the activity in the

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

September 30, 2024:

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

December 31, 2024:

(in thousands)

for (recovery

Residential real estate:

One-to-four-family

Nonresidential real estate

Commercial and industrial

Consumer and other:

Kentucky First Federal Bancorp

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2025

Loans receivable (continued)

The following table presents the activity in the ACL

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

December 31, 2025:

(in thousands)

Balance at September 30, 2025

for (recovery of) credit losses on loans

5 unchanged sentences

Loans on deposits

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:

Kentucky First Federal Bancorp

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

September 30, 2025

December 31, 2025

Loans receivable (continued)

The following table presents the amortized cost

basis of collateral-dependent loans by portfolio class as of September 30, 2025.

The recorded investment in loans excludes accrued interest

receivable due to immateriality.

September 30, 2025:

The following table presents the amortized cost basis

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

The recorded investment in loans excludes accrued interest receivable

due to immateriality.

December 31, 2025:

(in thousands)

6 unchanged sentences

evaluated for impairment.

The following table presents the amortized cost

basis of collateral-dependent loans by portfolio class as of June 30, 2025.

The recorded investment in loans excludes accrued interest

receivable due to immateriality.

Collateral on nonresidential real estate individually evaluated for impairment includes one commercial office

The following table presents the amortized cost basis

of collateral-dependent loans by portfolio class as of June 30, 2025.

The recorded investment in loans excludes accrued interest receivable

due to immateriality.

June 30, 2025:

7 unchanged sentences

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

September 30, 2025

December 31, 2025

Loans receivable (continued)

The following tables present the amortized cost

basis of loans on nonaccrual status and loans past due over 89 days still accruing as of September 30, 2025 and June 30, 2025:

September 30, 2025

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, 2025, and June 30, 2025:

December 31, 2025

June 30, 2025

3 unchanged sentences

Nonresidential real estate

Consumer and other

Nonaccrual loans had no related allowance for

credit losses based on individual evaluation at September 30, 2025 or June 30, 2025.

Consumer and other Automobile

Nonaccrual loans had no related allowance for credit

losses based on individual evaluation at December 31, 2025 or June 30, 2025.

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

totaled $ 210,000 and $ 213,000 at September 30, 2025 and June 30, 2025, respectively.

There were no loans modified during the three

months ended September 30, 2025 to borrowers experiencing financial difficulties.

The following table presents the aging of the

principal balance outstanding in past due loans as of September 30, 2025, by class of loans:

September 30, 2025:

totaled $ 384,000 and $ 213,000 at December 31, 2025 and June 30, 2025, respectively.

There were no loans modified during the six months

ended December 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, 2025, by class of loans:

December 31, 2025:

(in thousands)

7 unchanged sentences

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

September 30, 2025

December 31, 2025

Loans receivable (continued)

The following table present the aging of the principal balance outstanding

in past due loans as of June 30, 2025, by class of loans:

The following tables present the aging of the principal

balance outstanding in past due loans as of June 30, 2025, by class of loans:

June 30, 2025:

21 unchanged sentences

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

Loans classified

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

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

They are characterized

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

Loans classified as

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

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

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

They are characterized by

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

Loans classified as doubtful

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

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

1 unchanged sentence

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

September 30, 2025

December 31, 2025

Loans receivable (continued)

Loans not meeting the criteria above that are

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

Loans listed that are not rated are

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

See the aging of past due loan

As of September 30, 2025, and based on the most recent analysis performed, the risk category of loans by class of loans is

Loans not meeting the criteria above that are analyzed

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

Loans listed that are not rated are included

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

See the aging of past due loan table

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

(in thousands)

Term Loans Amortized Cost by Origination Fiscal Year

As of September 30, 2025

As of December 31, 2025

Residential real estate:

10 unchanged sentences

Current period gross charge offs

Kentucky First Federal Bancorp

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

September 30, 2025

First Federal Bancorp

TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

Loans receivable (continued)

(in thousands)

Term Loans Amortized Cost by Origination Fiscal Year

As of September 30, 2025

Nonresidential real estate

Special mention

Current period gross charge offs

Commercial and industrial

Special mention

Current period gross charge offs

Special mention

Current period gross charge offs

Special mention

Current period gross charge offs

Special mention

Current period gross charge offs

Special mention

Current period gross charge offs

Kentucky First Federal Bancorp

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

September 30, 2025

Loans Amortized Cost by Origination Fiscal Year

of December 31, 2025

Nonresidential

period gross charge offs

and industrial

period gross charge offs

First Federal Bancorp

TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

Loans receivable (continued)

As of June 30, 2025, and based on the most recent

analysis performed, the risk category of loans by class of loans is as follows:

(in thousands)

Term Loans Amortized Cost by Origination Fiscal Year

As of June 30, 2025

Residential real estate:

One- to four-family

Special mention

Current period gross charge offs

Special mention

Current period gross charge offs

Special mention

Current period gross charge offs

Special mention

Current period gross charge offs

Special mention

Current period gross charge offs

Kentucky First Federal Bancorp

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

September 30, 2025

of June 30, 2025, and based on the most recent analysis performed, the risk category of loans by class of loans is as follows:

Loans Amortized Cost by Origination Fiscal Year

of June 30, 2025

to four-family

period gross charge offs

First Federal Bancorp

TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

Loans receivable (continued)

(in thousands)

Term Loans Amortized Cost by Origination Fiscal Year

As of June 30, 2025

Nonresidential real estate

Special mention

Current period gross charge offs

Commercial and industrial

Special mention

Current period gross charge offs

Special mention

Current period gross charge offs

Special mention

Current period gross charge offs

Special mention

Current period gross charge offs

Special mention

Current period gross charge offs

Loans Amortized Cost by Origination Fiscal Year

of June 30, 2025

Nonresidential

period gross charge offs

and industrial

period gross charge offs

Kentucky First Federal Bancorp

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

September 30, 2025

December 31, 2025

Loans receivable (continued)

At September 30, 2025, the risk category of loans

by class of loans was as follows:

At December 31, 2025, the risk category of loans by

class of loans was as follows:

(in thousands)

5 unchanged sentences

Loans on deposits

At June 30, 2025, the risk category of loans by

class of loans was as follows:

At June 30, 2025, the risk category of loans by class

of loans was as follows:

(in thousands)

10 unchanged sentences

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

of $ 25,000 and $ 25,000 at September 30, 2025 and June 30, 2025, respectively, is as follows:

of $ 25,000 and $ 25,000 at December 31, 2025 and June 30, 2025, 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 credit losses for the year ended June 30, 2025, nor for the three-month period ended September

For those purchased loans disclosed above, the Company

made no increase in allowance for credit losses for the year ended June 30, 2025, or for the six-month period ended December 31, 2025.

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

1 unchanged sentence

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

September 30, 2025

December 31, 2025

Disclosures About Fair Value of Assets

and Liabilities

ASC topic 820 defines fair value as the price

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

ASC topic 820 defines fair value as the price that

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

at the measurement date.

3 unchanged sentences

used to measure fair value:

Level 1 – Quoted prices

in active markets for identical assets or liabilities.

Level 1 – Quoted prices in

active markets for identical assets or liabilities.

Level 2 – Observable inputs

2 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.

Where quoted market prices are available in an

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

If quoted market prices are not available, then fair

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

Level 2 securities include agency

mortgage-backed securities and agency bonds.

Where quoted market prices are available in an active

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

If quoted market prices are not available, then fair values

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

Level 2 securities include agency mortgage-backed

securities and agency bonds.

Financial assets measured at fair value on a recurring

3 unchanged sentences

Quoted Prices

September 30, 2025

December 31, 2025

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, 2025, and June 30, 2025.

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.

There were no assets or liabilities which were measured

at fair value on a nonrecurring basis at December 31, 2025, and June 30, 2025.

The following is a disclosure of the fair value of

financial instruments, both assets and liabilities, whether or not recognized in the condensed 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, 2025

December 31, 2025

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, 2025 and June 30, 2025 are as follows:

Based on the foregoing methods and assumptions, the

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

Fair Value Measurements at

September 30, 2025 Using

December 31, 2025 Using

(in thousands)

26 unchanged sentences

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

September 30, 2025

December 31, 2025

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:

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:

(in thousands)

September 30,

Beginning balance

Current year change

Ending balance

Other comprehensive income (loss) components and

related tax effects for the periods indicated were as follows:

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

On August 13, 2024, First Federal of Kentucky

entered into a formal written agreement (the “Agreement”) with the OCC, which became effective as of the same date.

On August 13, 2024, First Federal of Kentucky entered

into a formal written agreement (the “Agreement”) with the OCC, which became effective as of the same date.

The Agreement

8 unchanged sentences

tier 1 capital ratio of at least 11.0 %, a total capital ratio of at least 12.0 %, and a leverage ratio of at least 9.0 %.

Under the terms of the Agreement, First Federal

of Kentucky is required to take the following actions within the time frames specified in the Agreement:

create a compliance committee composed of at least three of First Federal of Kentucky’s directors to monitor and oversee First Federal of Kentucky’s compliance with the provisions of the Agreement and submit quarterly evaluation reports to First Federal of Kentucky’s board of directors regarding actions First Federal of Kentucky has taken to comply with the Agreement and the results and status of such actions;

submit to the OCC, adopt and implement an acceptable revised written three-year strategic plan establishing objectives for First Federal of Kentucky’s overall risk profile, balance sheet mix, funding structure, interest rate risk, liquidity and capital adequacy, earnings performance, and asset and core deposit growth, together with strategies to achieve those objectives;

submit to the OCC, adopt and implement an acceptable revised written succession plan for First Federal of Kentucky that is designed to promote adequate staffing and continuity of capable management;

adopt a revised written liquidity risk management program for First Federal of Kentucky that provides for the identification, measurement, monitoring, and control of First Federal of Kentucky’s liquidity risk exposure, and that emphasizes the importance of cash flow projections, diversified funding sources, a cushion of highly liquid assets, robust liquidity stress testing scenario analyses, and a formal, well-developed contingency funding plan as primary tools for measuring and managing liquidity risk;

adopt a revised written interest rate risk program that includes risk management systems to identify, measure, monitor, and control interest rate risk.

The Agreement requires First Federal of Kentucky’s

Board to (i) ensure that First Federal of Kentucky timely adopts and implements all corrective actions required by the Agreement and (ii)

verify that First Federal of Kentucky adheres to the corrective actions and that they are effective in addressing First Federal of Kentucky’s

Under the terms of the Agreement, First Federal of

Kentucky is required to take the following actions within the time frames specified in the Agreement:

a compliance committee composed of at least three of First Federal of Kentucky’s directors to monitor and oversee First Federal

of Kentucky’s compliance with the provisions of the Agreement and submit quarterly evaluation reports to First Federal of Kentucky’s

board of directors regarding actions First Federal of Kentucky has taken to comply with the Agreement and the results and status of such

to the OCC, adopt and implement an acceptable revised written three-year strategic plan establishing objectives for First Federal of

Kentucky’s overall risk profile, balance sheet mix, funding structure, interest rate risk, liquidity and capital adequacy, earnings

performance, and asset and core deposit growth, together with strategies to achieve those objectives;

to the OCC, adopt and implement an acceptable revised written succession plan for First Federal of Kentucky that is designed to promote

adequate staffing and continuity of capable management;

a revised written liquidity risk management program for First Federal of Kentucky that provides for the identification, measurement,

monitoring, and control of First Federal of Kentucky’s liquidity risk exposure, and that emphasizes the importance of cash flow

projections, diversified funding sources, a cushion of highly liquid assets, robust liquidity stress testing scenario analyses, and a

formal, well-developed contingency funding plan as primary tools for measuring and managing liquidity risk;

a revised written interest rate risk program that includes risk management systems to identify, measure, monitor, and control interest

The Agreement requires First Federal of Kentucky’s Board to (i)

ensure that First Federal of Kentucky timely adopts and implements all corrective actions required by the Agreement and (ii) verify that

First Federal of Kentucky adheres to the corrective actions and that they are effective in addressing First Federal of Kentucky’s

deficiencies that resulted in the Agreement.

2 unchanged sentences

As of the date of this filing, First Federal of Kentucky’s Board

and management believe that First Federal of Kentucky has made progress toward addressing the deficiencies that resulted in the Agreement

and intends to satisfy the Agreement’s requirements as expeditiously as possible.

For additional information, see Exhibit 10.1

to the Company Current Report on Form 8-K filed with the Securities and Exchange Commission on August 15, 2024 and Item 1A, “Risk

Factors - We are required to comply with the terms of a formal written agreement and IMCRs issued by the OCC, and lack of compliance

could result in monetary penalties and /or additional regulatory actions ” and Note K - Stockholders’ Equity and Regulatory

Capital of the Notes to Consolidated Financial Statements included in Item 8 of the Company’s Annual Report on Form 10-K filed with

the Securities and Exchange Commission on October 1, 2025.

and management believe that First Federal of Kentucky has addressed the deficiencies that resulted in the Agreement.

For additional

information, see Exhibit 10.1 to the Company Current Report on Form 8-K filed with the Securities and Exchange Commission on August 15,

2024 and Item 1A, “Risk Factors - We are required to comply with the terms of a formal written agreement and IMCRs issued

by the OCC, and lack of compliance could result in monetary penalties and /or additional regulatory actions ” and Note K - Stockholders’

Equity and Regulatory Capital of the Notes to Consolidated Financial Statements included in Item 8 of the Company’s Annual Report

on Form 10-K filed with the Securities and Exchange Commission on September 30, 2025.

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