Kentucky First Federal Bancorp Files 10-Q for Period Ended March 31, 2024

TL;DR

<b>Kentucky First Federal Bancorp has filed its quarterly report (10-Q) for the period ending March 31, 2024, detailing its financial status and operations.</b>

AI Summary

Kentucky First Federal Bancorp (KFFB) filed a Quarterly Report (10-Q) with the SEC on May 15, 2024. Kentucky First Federal Bancorp filed a 10-Q report for the quarterly period ended March 31, 2024. The company is registered with the SEC under the ticker KFFB. Its common stock is traded on The NASDAQ Stock Market LLC. The principal executive offices are located at 655 Main Street, Hazard, Kentucky 41702. The company has elected not to use the extended transition period for complying with new or revised financial accounting standards.

Why It Matters

For investors and stakeholders tracking Kentucky First Federal Bancorp, this filing contains several important signals. This filing provides stakeholders with an updated view of the company's financial performance and operational status for the most recent quarter. As a publicly traded entity, adherence to SEC reporting requirements like this 10-Q is crucial for maintaining transparency and investor confidence.

Risk Assessment

Risk Level: low — Kentucky First Federal Bancorp shows low risk based on this filing. The filing is a routine quarterly report (10-Q) and does not contain significant new risks or material changes, indicating a stable operational status.

Analyst Insight

Review the detailed financial statements and management's discussion and analysis within the 10-Q to understand Kentucky First Federal Bancorp's performance and outlook.

Key Numbers

• 0001213900-24-043733 — Accession Number (Unique identifier for the filing)
• 20240331 — Conformed Period of Report (The period the report covers)
• 000-51176 — Commission File Number (SEC's file number for the registrant)
• 61-1484858 — IRS Number (Registrant's Employer Identification Number)

Key Players & Entities

• Kentucky First Federal Bancorp (company) — Filer name
• KFFB (company) — Trading symbol
• The NASDAQ Stock Market LLC (company) — Exchange where common stock is registered
• March 31, 2024 (date) — Quarterly period end date
• 20240515 (date) — Filing date

FAQ

Industry Context

Kentucky First Federal Bancorp operates within the savings institution sector, a part of the broader financial services industry.

Regulatory Implications

As a federally chartered savings institution, the company is subject to regulations from various financial oversight bodies.

What Investors Should Do

1. Analyze the financial statements for revenue, expenses, and profitability trends.
2. Review management's discussion and analysis (MD&A) for insights into operational performance and future outlook.
3. Check for any new disclosures or risk factors that may impact the company's operations or stock value.

Key Dates

• 2024-03-31: Quarterly Period End — Marks the end of the reporting period for the 10-Q
• 2024-05-15: Filing Date — Date the 10-Q was officially submitted to the SEC

Year-Over-Year Comparison

This is the 10-Q filing for the quarter ended March 31, 2024, following previous filings for the fiscal year.

Key Financial Figures

• $0.01 — ange on which registered Common Stock, $0.01 par value per share KFFB The NASDAQ Sto

Filing Documents

• ea0205963-10q_kentucky.htm (10-Q) — 1673KB
• ea0205963ex31-1_kentucky.htm (EX-31.1) — 9KB
• ea0205963ex31-2_kentucky.htm (EX-31.2) — 9KB
• ea0205963ex32-1_kentucky.htm (EX-32.1) — 4KB
• ea0205963ex32-2_kentucky.htm (EX-32.2) — 4KB
• 0001213900-24-043733.txt (&nbsp;) — 9046KB
• kffb-20240331.xsd (EX-101.SCH) — 86KB
• kffb-20240331_cal.xml (EX-101.CAL) — 49KB
• kffb-20240331_def.xml (EX-101.DEF) — 289KB
• kffb-20240331_lab.xml (EX-101.LAB) — 568KB
• kffb-20240331_pre.xml (EX-101.PRE) — 282KB
• ea0205963-10q_kentucky_htm.xml (XML) — 2098KB

FINANCIAL INFORMATION

PART I FINANCIAL INFORMATION 1

FINANCIAL STATEMENTS

ITEM 1 FINANCIAL STATEMENTS 1 Condensed Consolidated Balance Sheets 1 Condensed Consolidated Statements of Operations 2 Condensed Consolidated Statements of Comprehensive Income 3 Consolidated Statements of Changes in Shareholders' Equity 4 Condensed Consolidated Statements of Cash Flows 6 Notes to Condensed Consolidated Financial Statements 8

Management's Discussion and Analysis of Financial Condition and Results of Operations

ITEM 2 Management's Discussion and Analysis of Financial Condition and Results of Operations 29

Quantitative and Qualitative Disclosures About Market Risk

ITEM 3 Quantitative and Qualitative Disclosures About Market Risk 37

Controls and Procedures

ITEM 4 Controls and Procedures 37

OTHER INFORMATION

PART II OTHER INFORMATION 38

-FINANCIAL INFORMATION

PART I-FINANCIAL INFORMATION

: Financial Statements

ITEM 1: Financial Statements Kentucky First Federal Bancorp CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (In thousands, except share data) March 31, June 30, 2024 2023 ASSETS Cash and due from financial institutions $ 1,906 $ 2,284 Fed funds sold 693 665 Interest-bearing demand deposits 12,824 5,218 Cash and cash equivalents 15,423 8,167 Securities available-for-sale 10,225 12,080 Securities held-to-maturity, at amortized cost- approximate fair value of $ 210 and $ 259 at March 31, 2024 and June 30, 2023, respectively 223 274 Loans, net of allowance for credit loss of $ 2,106 and $ 1,634 at March 31, 2024 and June 30, 2023, respectively 1 328,134 313,807 Real estate owned, net 10 70 Premises and equipment, net 4,317 4,435 Federal Home Loan Bank stock, at cost 4,528 4,623 Accrued interest receivable 1,226 902 Bank-owned life insurance 2,894 2,831 Goodwill 947 947 Prepaid federal income taxes 239 144 Prepaid expenses and other assets 934 742 Total assets $ 369,100 $ 349,022 LIABILITIES AND SHAREHOLDERS' EQUITY Deposits $ 246,104 $ 226,309 Federal Home Loan Bank advances 72,348 70,087 Advances by borrowers for taxes and insurance 643 793 Accrued interest payable 150 70 Deferred income taxes 156 513 Other liabilities 685 539 Total liabilities 320,086 298,311 Commitments and contingencies – – Shareholders' equity Preferred stock, 500,000 shares authorized, $ .01 par value; no shares issued and outstanding – – Common stock, 20,000,000 shares authorized, $ .01 par value; 8,596,064 shares issued 86 86 Additional paid-in capital 34,891 34,891 Retained earnings 18,402 20,130 Unearned employee stock ownership plan (ESOP) – – Treasury shares at cost, 509,349 common shares at March 31, 2024 and June 30, 2023, respectively ( 3,969 ) ( 3,969 ) Accumulated other comprehensive loss ( 396 ) ( 427 ) Total shareholders' equity 49,014 50,711

financial statements

financial statements. 1 Kentucky First Federal Bancorp CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) (Dollars in thousands, except per share data) Nine months ended March 31, Three months ended March 31, 2024 2023 2024 2023 Interest income Loans, including fees $ 10,927 $ 8,522 $ 3,841 $ 2,983 Mortgage-backed securities 288 345 97 116 Interest-bearing deposits and other 619 359 235 111 Total interest income 11,834 9,226 4,173 3,210 Interest expense Interest-bearing demand deposits 23 29 7 9 Savings 165 235 53 62 Certificates of Deposit 4,122 844 1,526 383 Deposits 4,310 1,108 1,586 454 Borrowings 2,432 1,193 822 711 Total interest expense 6,742 2,301 2,408 1,165 Net interest income 5,092 6,925 1,765 2,045 Provision for (recovery of) credit losses ( 13 ) 113 ( 28 ) – Net interest income after provision for credit losses 5,105 6,812 1,793 2,045 Non-interest income Earnings on bank-owned life insurance 63 60 21 20 Net gain on sales of loans 14 6 8 – Net gain on sales of real estate owned 4 – -- – Net gain on sale of property and equipment held for sale -- 10 -- – Other 118 160 49 49 Total non-interest income 199 236 78 69 Non-interest expense Employee compensation and benefits 3,761 3,697 1,246 1,243 Data processing 395 330 115 100 Occupancy and equipment 442 469 153 156 FDIC insurance premiums 164 63 57 22 Voice and data communications 93 93 35 32 Advertising 124 110 36 31 Outside service fees 284 181 72 77 Auditing and accounting 258 212 86 36 Regulatory assessments 49 67 17 17 Foreclosure and real estate owned expenses (net) 64 77 21 32 Franchise and other taxes 80 107 28 29 Other 433 468 150 141 Total non-interest expense 6,147 5,874 2,016 1,916 Income (loss) before income taxes ( 843 ) 1,174 ( 145 ) 198 Income tax expense (benefit) (

financial statements

financial statements. 2 Kentucky First Federal Bancorp CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) (In thousands) Nine months ended March 31, Three months ended March 31, 2024 2023 2024 2023 Net income (loss) $ ( 643 ) $ 891 $ ( 107 ) $ 144 Other comprehensive gains (losses), net of tax: Unrealized holding gains (losses) on securities designated as available-for-sale, net of taxes of $ 11 , $( 119 ), $( 21 ) and $( 6 ) during the respective periods 31 ( 361 ) ( 62 ) ( 18 ) Comprehensive income (loss) $ ( 612 ) $ 530 $ ( 169 ) $ 126 See accompanying notes to condensed consolidated

financial statements

financial statements. 3 Kentucky First Federal Bancorp CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY For the nine months ended (Unaudited) (Dollar amounts in thousands, except per share data) March 31, 2024 Common stock Additional paid-in capital Retained earnings Treasury shares Accumulated other comprehensive income (loss) Total Balance at June 30, 2023 $ 86 $ 34,891 $ 20,130 $ ( 3,969 ) $ ( 427 ) $ 50,711 Cumulative impact of adoption of ASC 326 – – ( 414 ) – – ( 414 ) Balance at July 1, 2023 86 34,891 19,716 ( 3,969 ) ( 427 ) 50,297 Net loss – – ( 643 ) – – ( 643 ) Other comprehensive income – – – – 31 31 Cash dividends of $ 0.20 per common share – – ( 671 ) – – ( 671 ) Balance at March 31, 2024 $ 86 $ 34,891 $ 18,402 $ ( 3,969 ) $ ( 396 ) $ 49,014 March 31, 2023 Common stock Additional paid-in capital Retained earnings Unearned employee stock plan (ESOP) Treasury shares Accumulated other comprehensive loss Total Balance at June 30, 2022 $ 86 $ 34,892 $ 20,560 $ ( 5 ) $ ( 3,508 ) $ – $ 52,025 Net income – – 891 – – – 891 Allocation of ESOP shares – ( 1 ) – 5 – – 4 Acquisition of shares for Treasury – – – – ( 394 ) – ( 394 ) Other comprehensive loss ( 361 ) ( 361 ) Cash dividends of $ 0.30 per common share – – ( 1,026 ) – – – ( 1,026 ) Balance at March 31, 2023 $ 86 $ 34,891 $ 20,425 $ - $ ( 3,902 ) $ ( 361 ) $ 51,139 See accompanying notes to condensed consolidated

financial statements

financial statements. 4 Kentucky First Federal Bancorp CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY For the three months ended (Unaudited) (Dollar amounts in thousands, except per share data) March 31, 2024 Common stock Additional paid-in capital Retained earnings Treasury shares Accumulated other comprehensive loss Total Balance at December 31, 2023 $ 86 $ 34,891 $ 18,509 $ ( 3,969 ) $ ( 334 ) $ 49,183 Net income – – ( 107 ) – – ( 107 ) Other comprehensive loss ( 62 ) ( 62 ) Balance at March 31, 2024 $ 86 $ 34,891 $ 18,402 $ ( 3,969 ) $ ( 396 ) $ 49,014 March 31, 2023 Common stock Additional paid-in capital Retained earnings Treasury shares Accumulated other comprehensive loss Total Balance at December 31, 2022 $ 86 $ 34,892 $ 20,622 $ ( 3,616 ) $ ( 343 ) $ 51,641 Net income – – 144 – – 144 Allocation of ESOP shares – ( 1 ) – – ( 1 ) Acquisition of shares for Treasury – – – ( 286 ) ( 286 ) Other comprehensive loss ( 18 ) ( 18 ) Cash dividends of $ 0.10 per common share – – ( 341 ) – – ( 341 ) Balance at March 31, 2023 $ 86 $ 34,891 $ 20,425 $ ( 3,902 ) $ ( 361 ) $ 51,139 See accompanying notes to condensed consolidated

financial statements

financial statements. 5 Kentucky First Federal Bancorp CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) (In thousands) Nine months ended March 31, 2024 2023 Cash flows from operating activities: Net income (loss) $ ( 643 ) $ 891 Adjustments to reconcile net income to net cash provided by operating activities Depreciation 178 195 Accretion of purchased loan credit discount ( 30 ) ( 34 ) Amortization of deferred loan origination costs (fees) 2 ( 19 ) Amortization of premiums on investment securities ( 18 ) ( 22 ) Net gain on sale of loans ( 14 ) ( 6 ) Net loss (gain) on sale of real estate owned ( 8 ) – Net gain on sale of property & equipment – ( 10 ) ESOP compensation expense – 4 Earnings on bank-owned life insurance ( 63 ) ( 60 ) Provision for (recovery of) credit losses ( 13 ) 113 Origination of loans held for sale ( 512 ) ( 157 ) Proceeds from loans held for sale 526 315 Deferred income tax ( 231 ) – Increase (decrease) in cash, due to changes in: Accrued interest receivable ( 324 ) ( 238 ) Prepaid expenses and other assets ( 287 ) ( 38 ) Accrued interest payable 80 36 Other liabilities 89 – Income taxes – 32 Net cash provided by (used in) operating activities ( 1,268 ) 1,002 Cash flows from investing activities: Purchase of investments available for sale – ( 4,974 ) Purchase of FHLB stock ( 1,310 ) ( 251 ) Maturities of time deposits in other financial institutions – – Securities maturities, prepayments and calls: Held to maturity 47 46 Available for sale 1,918 2,133 Proceeds from redemption of FHLB stock 1,405 2,061 Loans originated for investment, net of principal collected ( 14,780 ) ( 32,497 ) Proceeds from sale of property and equipment held for sale – 180 Proceeds from REO 68 – Proceeds from sale of real estate owned – – Additions to premises and equipment, net ( 60 ) ( 122 ) Net cash provided by (used in)

financial statements

financial statements. 6 Kentucky First Federal Bancorp CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (CONTINUED) (Unaudited) (In thousands) Nine months ended March 31, 2024 2023 Supplemental disclosure of cash flow information: Cash paid during the period for: Income taxes $ 125 $ 250 Interest on deposits and borrowings $ 6,662 $ 2,265 Transfers of loans to real estate owned, net $ – $ 60 See accompanying notes to condensed consolidated

financial statements

financial statements. 7 Kentucky First Federal Bancorp NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS March 31, 2024 (unaudited) The Kentucky First Federal Bancorp ("Kentucky First" or the "Company") was incorporated under federal law in March 2005 and is the mid-tier holding company for First Federal Savings and Loan Association of Hazard, Hazard, Kentucky ("First Federal of Hazard") and Frankfort First Bancorp, Inc. ("Frankfort First"). Frankfort First is the holding company for First Federal Savings Bank of Kentucky, Frankfort, Kentucky ("First Federal of Kentucky"). First Federal of Hazard and First Federal of Kentucky (hereinafter collectively the "Banks") are Kentucky First's primary operations, which consist of operating the Banks as two independent, community-oriented savings institutions. In December 2012, the Company acquired CKF Bancorp, Inc., a savings and loan holding company which operated three banking locations in Boyle and Garrard Counties in Kentucky. In accounting for the transaction, the assets and liabilities of CKF Bancorp were recorded on the books of First Federal of Kentucky in accordance with accounting standard ASC 805, Business Combinations. Note 1. 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 nine-month period ended March 31, 2024, are not neces

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