What changed in this filing

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Item 1. Financial Statements

2026-05-15 compared with 2026-02-13 · 339 added, 340 removed, 709 unchanged (49% of the section changed)

7 unchanged sentences

Cash and cash equivalents

Securities available-for-sale, at fair value

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

Debt securities available-for-sale, at fair value

Debt securities held-to-maturity, at amortized cost-approximate fair value of $ 141 and $ 167 at March 31, 2026 and June 30, 2025, respectively

Loans held for sale

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

Loans, net of allowance for credit losses of $ 2,217 and $ 2,170 at March 31, 2026 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

16 unchanged sentences

Retained earnings - restricted

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

Treasury shares at cost, 509,349 common shares at March 31, 2026 and June 30, 2025, respectively

Accumulated other comprehensive loss

6 unchanged sentences

(Dollars in thousands, except per share data)

Six months ended

Nine months ended

Three months ended

14 unchanged sentences

Net gain on sales of loans

Net gain on sales of real estate owned

Total non-interest income

13 unchanged sentences

Income tax expense (benefit)

NET INCOME (LOSS)

EARNINGS (LOSS) PER SHARE

EARNINGS PER SHARE

Basic and diluted

4 unchanged sentences

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE

INCOME (LOSS)

(In thousands)

Six months ended

Nine months ended

Three months ended

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 , $ 50 , ($ 8 ) and $ 30 during the respective periods

Comprehensive income (loss)

Comprehensive income

See accompanying notes to condensed consolidated

2 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, 2025

March 31, 2026

comprehensive

Balance at June 30, 2025

Balance at July 1, 2025

Other comprehensive income, net of tax

Balance at December 31, 2025

December 31, 2024

Balance at March 31, 2026

March 31, 2025

comprehensive

Balance at June 30, 2024

Balance at July 1, 2024

Other comprehensive income, net of tax

Balance at December 31, 2024

Balance at March 31, 2025

See accompanying notes to condensed consolidated

4 unchanged sentences

(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

March 31, 2026

comprehensive

Balance at September 30, 2024

at January 1, 2026

Other comprehensive loss, net of tax

Balance at December 31, 2024

Balance at March 31, 2026

March 31, 2025

comprehensive

at January 1, 2025

Other comprehensive income, net of tax

Balance at March 31, 2025

See accompanying notes to condensed consolidated

3 unchanged sentences

(In thousands)

Six months ended

Nine months ended

Cash flows from operating activities:

Net income (loss)

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

Adjustments to reconcile net income to net cash from operating activities

Amortization of deferred loan origination fees, net

Amortization of premiums on investment securities

Amortization of premiums on debt securities

Net gain on sale of loans

10 unchanged sentences

Other liabilities

Net cash provided by operating activities

Net cash provided by (used in) operating activities

Cash flows from investing activities:

13 unchanged sentences

Repayments on Federal Home Loan Bank advances

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, 2025

March 31, 2026

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.

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.

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.

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 nine-month period ended March

31, 2026, 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 on September 30, 2025.

Principles of Consolidation - The

7 unchanged sentences

Critical Accounting Policies and Estimates

Investments – Management determines

Debt Securities – Management determines

the classification of debt securities at purchase as held-to-maturity, trading, or available-for-sale.

17 unchanged sentences

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2025

March 31, 2026

Basis of Presentation (continued)

1 unchanged sentence

Allowance for Credit Losses – We

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)

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) basis.

We maintain an ACL at a level that is appropriate

2 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 unsecured).

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.

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.

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.

Income Taxes – Income tax expense

10 unchanged sentences

that have applicability to the Company are (1) Statement of Cash Flows which requires an accounting policy disclosure in annual periods

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

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

(2) Debt which requires disclosure of amounts and terms of unused lines of credit and unfunded commitments and the weighted-average interest

3 unchanged sentences

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2025

March 31, 2026

Basis of Presentation (continued)

8 unchanged sentences

on the Company’s financial statements.

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.

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.

Accounting Pronouncements Adopted in Fiscal

29 unchanged sentences

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

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

operating segment.

Kentucky First Federal Bancorp

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

March 31, 2026

Basis of Presentation (continued)

Accounting Pronouncements Adopted in Fiscal

Year 2025 (continued)

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 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.

Kentucky First Federal Bancorp

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2025

Basis of Presentation (continued)

Accounting Pronouncements Adopted in Fiscal

Year 2025 (continued)

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.

In November 2023, the FASB issued ASU 2023-07,

19 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

Earnings (loss) per share, basic and diluted

Net income allocated to common shareholders, basic and diluted

Earnings per share, basic and diluted

Weighted average common shares outstanding, basic and diluted

There were no stock option shares outstanding

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

for the nine- or three-month periods ended March 31, 2026 and 2025.

Kentucky First Federal Bancorp

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

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 December 31, 2025 and June 30, 2025, the corresponding

March 31, 2026

Debt Securities

The following table summarizes the amortized

cost and fair value of securities available-for-sale and securities held-to-maturity at March 31, 2026 and June 30, 2025, the corresponding

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

December 31, 2025

March 31, 2026

(in thousands)

9 unchanged sentences

Agency mortgage-backed:

At December 31, 2025 and June 30, 2025 the Company’s

At March 31, 2026 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 for both December

There were no pledged securities for both March

31, 2026 and June 30, 2025.

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

In addition, at both March 31, 2026 and June 30, 2025, there were no pledged overnight deposits.

We evaluated securities in unrealized loss positions

3 unchanged sentences

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

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 81.6 % and 88.8 % at

March 31, 2026 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 March 31, 2026.

March 31, 2026

Available-for-Sale

6 unchanged sentences

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2025

Investment Securities (continued)

March 31, 2026

Debt Securities (continued)

March 31, 2026

Held to Maturity

19 unchanged sentences

Total temporarily impaired HTM securities

Kentucky First Federal Bancorp

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

March 31, 2026

Loans receivable

16 unchanged sentences

impaired loans.

Kentucky First Federal Bancorp

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2025

Loans receivable (continued)

All interest accrued but not received for loans

14 unchanged sentences

The amounts above include net deferred loan costs

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

of $ 70,000 and $ 149,000 as of March 31, 2026 and June 30, 2025, respectively.

Kentucky First Federal Bancorp

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2025

March 31, 2026

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;

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.

economic conditions;

the nature and volume of the

loan portfolio;

volume of 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.

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 December 31, 2025 is adequate.

Kentucky First Federal Bancorp

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2025

Loans receivable (continued)

believes the ACL at March 31, 2026 is adequate.

Expected credit losses are estimated over the

5 unchanged sentences

contract at the reporting date and are not unconditionally cancellable by the Banks.

Kentucky First Federal Bancorp

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

March 31, 2026

Loans receivable (continued)

The Banks categorize loans into risk categories

27 unchanged sentences

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

We occasionally lend to builders for construction

We also lend to builders for construction

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

14 unchanged sentences

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2025

March 31, 2026

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.

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.

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.

Kentucky First Federal Bancorp

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2025

March 31, 2026

Loans receivable (continued)

The following table presents the activity in the

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

December 31, 2025:

ACL by portfolio segment for the nine months ended March 31, 2026.

March 31, 2026:

(in thousands)

September 30,

for (recovery

Provision for

(recovery of)

credit losses

Residential real estate:

5 unchanged sentences

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)

for (recovery

Provision for

(recovery of)

credit losses

Residential real estate:

5 unchanged sentences

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2025

March 31, 2026

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:

The following table presents the activity in the

ACL by portfolio segment for the three months ended March 31, 2026:

March 31, 2026:

(in thousands)

Balance at September 30, 2025

for (recovery of) credit losses on loans

Provision for

(recovery of)

credit losses

Residential real estate:

4 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:

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

Provision for

(recovery of)

credit losses

Residential real estate:

5 unchanged sentences

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2025

March 31, 2026

Loans receivable (continued)

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:

The following table presents the amortized cost

basis of collateral-dependent loans by portfolio class as of March 31, 2026.

The recorded investment in loans excludes accrued interest

receivable due to immateriality.

March 31, 2026:

(in thousands)

7 unchanged sentences

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.

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

December 31, 2025

March 31, 2026

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, 2025, and June 30, 2025:

December 31, 2025

in nonaccrual and loans past due over 89 days still on accrual by class of loans as of March 31, 2026, and June 30, 2025:

March 31, 2026

June 30, 2025

4 unchanged sentences

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.

Nonaccrual loans had no related allowance for

credit losses based on individual evaluation at March 31, 2026 or June 30, 2025.

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

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:

totaled $ 326,000 and $ 213,000 at March 31, 2026 and June 30, 2025, respectively.

There were no loans modified during the nine months

ended March 31, 2026 to borrowers experiencing financial difficulties.

The following table presents the aging of the

principal balance outstanding in past due loans as of March 31, 2026, by class of loans:

March 31, 2026:

(in thousands)

7 unchanged sentences

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2025

March 31, 2026

Loans receivable (continued)

The following tables 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 any.

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

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

December 31, 2025

March 31, 2026

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 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:

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 March 31, 2026, and based on the most recent analysis performed, the risk category of loans by class of loans is as

(in thousands)

Term Loans Amortized Cost by Origination Fiscal Year

As of December 31, 2025

As of March 31, 2026

Residential real estate:

10 unchanged sentences

Current period gross charge offs

First Federal Bancorp

TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

Kentucky First Federal Bancorp

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

March 31, 2026

Loans receivable (continued)

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)

(in thousands)

Term Loans Amortized Cost by Origination Fiscal Year

Loans Amortized

As of March 31, 2026

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

March 31, 2026

Loans receivable (continued)

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)

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

March 31, 2026

Loans receivable (continued)

Loans Amortized Cost by Origination Fiscal Year

of June 30, 2025

Nonresidential

period gross charge offs

and industrial

period gross charge offs

(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

Kentucky First Federal Bancorp

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2025

March 31, 2026

Loans receivable (continued)

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

class of loans was as follows:

At March 31, 2026, 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 December 31, 2025 and June 30, 2025, respectively, is as follows:

of $ 20,000 and $ 25,000 at March 31, 2026 and June 30, 2025, 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, 2025, or for the six-month period ended December 31, 2025.

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, 2025, or for the nine-month period ended March 31,

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

Kentucky First Federal Bancorp

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2025

March 31, 2026

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 and 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

basis are summarized below:

Fair Value Measurements Using

(in thousands)

Value Measurements Using

Quoted Prices

December 31, 2025

Agency mortgage-backed:

June 30, 2025

Agency mortgage-backed:

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.

March 31, 2026

mortgage-backed:

There were no assets or liabilities which were

measured at fair value on a nonrecurring basis at March 31, 2026, 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

December 31, 2025

March 31, 2026

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 December 31, 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 March 31, 2026 and June 30, 2025 are as follows:

Fair Value Measurements at

December 31, 2025 Using

March 31, 2026 Using

(in thousands)

26 unchanged sentences

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2025

March 31, 2026

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)

2 unchanged sentences

Balance at end of period

Other comprehensive income (loss) components and related

tax effects for the periods indicated were as follows:

Six months ended

Other comprehensive income (loss) components and

related tax effects for the periods indicated were as follows:

Nine months ended

Three months ended

1 unchanged sentence

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

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.

The Agreement

will remain effective until it is amended by First Federal of Kentucky and the OCC, or the OCC modifies, waives or terminates the Agreement.

As a result of the Agreement, pursuant to 12 C.F.R.

§ 5.51(c)(7)(ii), First Federal of Kentucky is in “troubled condition,”

and is not an “eligible savings association” for purposes of 12 C.F.R.

§ 5.3, unless otherwise informed in writing by

In addition to the Agreement, the OCC has also imposed individual minimum capital requirements (“IMCRs”) on First

Federal of Kentucky.

The IMCRs require First Federal of Kentucky to maintain a common equity tier 1 capital ratio of at least 9.0 %, a

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:

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.

First Federal of Kentucky’s Board and management are committed to fully addressing

the provisions of the Agreement within the required time frames.

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

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.

Regulatory Matters

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.

19, 2026, the OCC published notification that it has terminated the Agreement.

As a result of the termination of the Agreement, First

Federal of Kentucky is no longer considered to be in “troubled condition” pursuant to 12 C.F.R.

§ 5.51(c)(7)(ii) and

is an “eligible savings association” for purposes of 12 C.F.R.

In addition to terminating the Agreement, the OCC also lifted the individual

minimum capital requirements imposed on First Federal of Kentucky in connection with the Agreement.

For additional information, see the

Company’s Current Report on Form 8-K filed with the Securities and Exchange Commission on February 19, 2026.

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