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What changed in Kentucky First Federal Bancorp's 10-K — 2024 vs 2025

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Paragraph-level year-over-year comparison of Kentucky First Federal Bancorp's 2024 and 2025 10-K annual filings, covering the Business, Risk Factors, Legal Proceedings, Cybersecurity, MD&A and Market Risk sections. Every new, removed and edited paragraph is highlighted side-by-side so you can see exactly what management changed in the 2025 report.

+93 added−96 removedSource: 10-K (2025-09-30) vs 10-K (2024-10-03)

Top changes in Kentucky First Federal Bancorp's 2025 10-K

93 paragraphs added · 96 removed · 78 edited across 6 sections

Item 1. Business

Business — how the company describes what it does

51 edited+3 added−2 removed247 unchanged
Biggest changeFederal law and Federal Reserve Board regulations, limit the activities of a mutual holding company, such as First Federal MHC, to the following: (1) investing in the stock of insured savings association and acquiring them by means of a merger or acquisition; (2) investing in a corporation the capital stock of which may be lawfully purchased by a savings association under federal law; (3) furnishing or performing management services for a savings association subsidiary of a savings and loan holding company; (4) conducting an insurance agency or escrow business; (5) holding, managing or liquidating assets owned or acquired from a savings association subsidiary of the savings and loan holding company; (6) holding or managing properties used or occupied by a savings association subsidiary of the savings and loan holding company; (7) acting as trustee under deed of trust; (8) any activity permitted for multiple savings and loan holding companies by Federal Reserve Board regulations and; (9) any activity permitted by the Federal Reserve Board for bank holding companies and financial holding companies Federal law prohibits a savings and loan holding company, including a federal mutual holding company, from directly or indirectly, or through one or more subsidiaries, acquiring more than 5% of the voting stock of another savings association, or its holding company, without prior written approval of the Federal Reserve Board.
Biggest changeFederal law and Federal Reserve Board regulations, limit the activities of a mutual holding company, such as First Federal MHC, to the following: (1) investing in the stock of insured savings association and acquiring them by means of a merger or acquisition; (2) investing in a corporation the capital stock of which may be lawfully purchased by a savings association under federal law; (3) furnishing or performing management services for a savings association subsidiary of a savings and loan holding company; (4) conducting an insurance agency or escrow business; (5) holding, managing or liquidating assets owned or acquired from a savings association subsidiary of the savings and loan holding company; (6) holding or managing properties used or occupied by a savings association subsidiary of the savings and loan holding company; (7) acting as trustee under deed of trust; (8) any activity permitted for multiple savings and loan holding companies by Federal Reserve Board regulations and; (9) any activity permitted by the Federal Reserve Board for bank holding companies and financial holding companies.
As of June 30, 2024, the capital levels of First Federal of Hazard and First Federal of Kentucky exceed the minimum required capital amounts for capital adequacy. See Note K-Stockholders’ Equity and Regulatory Capital in notes to financial statements. In August 2024, First Federal of Kentucky entered into an Agreement with the OCC.
As of June 30, 2025, the capital levels of First Federal of Hazard and First Federal of Kentucky exceed the minimum required capital amounts for capital adequacy. See Note K-Stockholders’ Equity and Regulatory Capital in notes to financial statements. In August 2024, First Federal of Kentucky entered into an Agreement with the OCC.
We also are required to maintain an investment in FHLB-Cincinnati stock, the level of which is largely dependent on our level of borrowings from the FHLB. At June 30, 2024, our investment portfolio consisted of mortgage-backed securities issued and guaranteed by Fannie Mae, Freddie Mac and Ginnie Mae with stated final maturities of 30 years or less.
We also are required to maintain an investment in FHLB-Cincinnati stock, the level of which is largely dependent on our level of borrowings from the FHLB. At June 30, 2025, our investment portfolio consisted of mortgage-backed securities issued and guaranteed by Fannie Mae, Freddie Mac and Ginnie Mae with stated final maturities of 30 years or less.
See Note H-Federal Income Taxes in the Notes to Consolidated Financial Statements for a description of the change in accounting method available through the Tax Cuts and Jobs Act. Federal Taxation . The federal income tax laws apply to us in the same manner as to other corporations with some exceptions, including particularly the reserve for bad debts discussed below.
See Note I-Federal Income Taxes in the Notes to Consolidated Financial Statements for a description of the change in accounting method available through the Tax Cuts and Jobs Act. Federal Taxation . The federal income tax laws apply to us in the same manner as to other corporations with some exceptions, including particularly the reserve for bad debts discussed below.
Failure to correct the violation within 12 months will cause the association’s savings and loan holding company to register as and be deemed a bank holding company. At June 30, 2024, First Federal of Hazard and First Federal of Kentucky were in compliance with the qualified thrift lender test in each of the prior 12 months. Transactions with Related Parties.
Failure to correct the violation within 12 months will cause the association’s savings and loan holding company to register as and be deemed a bank holding company. At June 30, 2025, First Federal of Hazard and First Federal of Kentucky were in compliance with the qualified thrift lender test in each of the prior 12 months. Transactions with Related Parties.
Risks and uncertainties that could cause or contribute to such material differences include, but are not limited to, general economic conditions; prices for real estate in the Company’s market areas; the interest rate environment and the impact of the interest rate environment on our business, financial condition and results of operations; our ability to successfully execute our strategy to increase earnings, increase core deposits, reduce reliance on higher cost funding sources and shift more of our loan portfolio towards higher-earning loans; our ability to pay future dividends and if so at what level; our ability to receive any required regulatory approval or non-objection for the payment of dividends from First Federal Savings and Loan Association of Hazard and First Federal Savings Bank of Kentucky to the Company or from the Company to shareholders; the ability of First Federal MHC to receive approval of its members to waive the payment of any Company dividends to First Federal MHC competitive conditions in the financial services industry; changes in the level of inflation; changes in the demand for loans, deposits and other financial services that we provide; the possibility that future credit losses may be higher than currently expected; competitive pressures among financial services companies; the ability to attract, develop and retain qualified employees; our ability to maintain the security of our data processing and information technology systems; the outcome of pending or threatened litigation, or of matters before regulatory agencies; changes in law, governmental policies and regulations, rapidly changing technology affecting financial services, and the other matters mentioned in Item 1A of the Company’s Annual Report on Form 10-K.
Risks and uncertainties that could cause or contribute to such material differences include, but are not limited to, general economic conditions; prices for real estate in the Company’s market areas; the interest rate environment and the impact of the interest rate environment on our business, financial condition and results of operations; our ability to successfully execute our strategy to increase earnings, increase core deposits, reduce reliance on higher cost funding sources and shift more of our loan portfolio towards higher-earning loans; our ability to pay future dividends and if so at what level; our ability to receive any required regulatory approval or non-objection to pay dividends to shareholders; our ability to pay dividends from First Federal Savings and Loan Association of Hazard and First Federal Savings Bank of Kentucky to the Company in order for the Company to pay dividends to shareholders; the ability of First Federal MHC to receive approval of its members to waive the payment of any Company dividends to First Federal MHC competitive conditions in the financial services industry; changes in the level of inflation; the impacts of tariffs, sanctions and other trade policies of the United States and its global trading counterparts; changes in the demand for loans, deposits and other financial services that we provide; the possibility that future credit losses may be higher than currently expected; competitive pressures among financial services companies; the ability to attract, develop and retain qualified employees; our ability to maintain the security of our data processing and information technology systems; the outcome of pending or threatened litigation, or of matters before regulatory agencies; changes in law, governmental policies and regulations, rapidly changing technology affecting financial services, and the other matters mentioned in Item 1A of the Company’s Annual Report on Form 10-K.
Funds are disbursed as progress is made toward completion of the construction based on site inspections by qualified bank staff. 3 Construction financing is generally considered to involve a higher degree of risk of loss than long-term financing on improved, occupied real estate.
Funds are disbursed as progress is made toward completion of the construction based on site inspections by qualified bank staff or professional appraisers. 3 Construction financing is generally considered to involve a higher degree of risk of loss than long-term financing on improved, occupied real estate.
In reaching a decision on whether to make a multi-family or nonresidential real estate loan, we consider the net cash flow of the project, the borrower’s expertise, credit history and the value of the underlying property. Commercial Non-mortgage Loans . At June 30, 2024, commercial non-mortgage loans totaled $700,000, or 0.2%, of our total loan portfolio.
In reaching a decision on whether to make a multi-family or nonresidential real estate loan, we consider the net cash flow of the project, the borrower’s expertise, credit history and the value of the underlying property. Commercial Non-mortgage Loans . At June 30, 2025, commercial non-mortgage loans totaled $691,000, or 0.2%, of our total loan portfolio.
Consumer loans generally entail greater risk than do residential mortgage loans, particularly in the case of consumer loans which are unsecured or secured by rapidly depreciable assets. Automobile and unsecured loans at June 30, 2024, totaled 0.2% of the Company’s total loan portfolio. Loan Originations, Purchases and Sales . Loan originations come from a number of sources.
Consumer loans generally entail greater risk than do residential mortgage loans, particularly in the case of consumer loans which are unsecured or secured by rapidly depreciable assets. Automobile and unsecured loans at June 30, 2025, totaled 0.3% of the Company’s total loan portfolio. Loan Originations, Purchases and Sales . Loan originations come from a number of sources.
The following discussion of tax matters is intended only as a summary and does not purport to be a comprehensive description of the tax rules applicable to us. Our federal income tax returns are subject to examination for years 2017 and later. The federal statutory tax rate was 21% for the fiscal years ended June 30, 2024 and 2023.
The following discussion of tax matters is intended only as a summary and does not purport to be a comprehensive description of the tax rules applicable to us. Our federal income tax returns are subject to examination for years 2019 and later. The federal statutory tax rate was 21% for the fiscal years ended June 30, 2025 and 2024.
Competition for deposits and the origination of loans could limit our growth in the future. 7 According to the Federal Deposit Insurance Corporation (“FDIC”), at June 30, 2024, the latest date for which data is available, First Federal of Hazard had a deposit market share of 7.8% in Perry County.
Competition for deposits and the origination of loans could limit our growth in the future. 7 According to the Federal Deposit Insurance Corporation (“FDIC”), at June 30, 2025, the latest date for which data is available, First Federal of Hazard had a deposit market share of 7.2% in Perry County.
We offer mortgage loans secured by multi-family property (residential real estate comprised of five or more units.) At June 30, 2024, multi-family loans totaled $15.8 million, or 4.7%, of our total loan portfolio. We originate multi-family real estate loans for terms of generally 25 years or less.
We offer mortgage loans secured by multi-family property (residential real estate comprised of five or more units.) At June 30, 2025, multi-family loans totaled $15.5 million, or 4.7%, of our total loan portfolio. We originate multi-family real estate loans for terms of generally 25 years or less.
Upon implementation of ASU 2016-13 or the current expected credit loss (CECL) model at July 1, 2023, the Banks began to utilize a separate liability to reflect anticipated credit losses on loan commitments. At June 30, 2024, this amount totaled $60,000.
Upon implementation of ASU 2016-13 or the current expected credit loss (CECL) model at July 1, 2023, the Banks began to utilize a separate liability to reflect anticipated credit losses on loan commitments. At June 30, 2025, this amount totaled $59,000.
Under such limitations, as of June 30, 2023, First Federal of Hazard and First Federal of Kentucky were authorized to invest up to $1.8 million and $5.7 million, respectively, in the stock of or loans to subsidiaries, including the additional 1% investment for community, inner-city and community development purposes.
Under such limitations, as of June 30, 2025, First Federal of Hazard and First Federal of Kentucky were authorized to invest up to $1.7 million and $5.0 million, respectively, in the stock of or loans to subsidiaries, including the additional 1% investment for community, inner-city and community development purposes.
We began utilizing brokered funds in June 2023 and had $52.0 million in such deposits at June 30, 2024. Deposit account terms vary according to the minimum balance required, the time periods the funds must remain on deposit and the interest rate, among other factors.
We began utilizing brokered funds in June 2023 and had $44.0 million in such deposits at June 30, 2025. Deposit account terms vary according to the minimum balance required, the time periods the funds must remain on deposit and the interest rate, among other factors.
At June 30, 2024, the regulatory limit on loans to one borrower was $2.8 million for First Federal of Hazard and $4.7 million for First Federal of Kentucky. Neither of the Banks had lending relationships in excess of their respective lending limits.
At June 30, 2025, the regulatory limit on loans to one borrower was $2.8 million for First Federal of Hazard and $4.6 million for First Federal of Kentucky. Neither of the Banks had lending relationships in excess of their respective lending limits.
In addition, First Federal of Kentucky believes it has developed strong relationships with the businesses, real estate agents, builders and general public in its market area. Personnel At June 30, 2024, we had 56 full-time employees and three part-time employees, none of whom was represented by a collective bargaining unit. We believe our relationship with our employees is good.
In addition, First Federal of Kentucky believes it has developed strong relationships with the businesses, real estate agents, builders and general public in its market area. Personnel At June 30, 2025, we had 54 full-time employees and two part-time employees, none of whom was represented by a collective bargaining unit. We believe our relationship with our employees is good.
The interest rate is varying percentage points above the rate paid on the savings account, and the account must be pledged as collateral to secure the loan. At June 30, 2024, loans on savings accounts totaled 0.2% of the Company’s total loan portfolio.
The interest rate is varying percentage points above the rate paid on the savings account, and the account must be pledged as collateral to secure the loan. At June 30, 2025, loans on savings accounts totaled 0.3% of the Company’s total loan portfolio.
We earn income on the loans sold through fees we charge on the origination, interest spread premiums earned when we sell the loans, and loan servicing fees on an on-going basis, because servicing rights are retained on such loans. At June 30, 2024, $20.4 million in loans were being serviced by First Federal of Kentucky for the FHLB-Cincinnati.
We earn income on the loans sold through fees we charge on the origination, interest spread premiums earned when we sell the loans, and loan servicing fees on an on-going basis, because servicing rights are retained on such loans. At June 30, 2025, $25.3 million in loans were being serviced by First Federal of Kentucky for the FHLB-Cincinnati.
If at such time as Kentucky First has sufficient income and liquidity to pay future dividends, it is expected that that First Federal MHC will once again solicit member approval of the dividend waiver.
If at such time as Kentucky First has sufficient income and liquidity to pay future dividends, it is expected that that First Federal MHC will, subject to any required regulatory approvals, once again solicit member approval of the dividend waiver.
The Banks’ Board of Directors has the overall responsibility for each institution’s investment portfolio, including approval of investment policies . The management of each Bank may authorize investments as prescribed in each of the Bank’s investment policies. Bank Owned Life Insurance First Federal of Kentucky owns several Bank Owned Life Insurance policies totaling $2.9 million at June 30, 2024.
The Banks’ Board of Directors has the overall responsibility for each institution’s investment portfolio, including approval of investment policies . The management of each Bank may authorize investments as prescribed in each of the Bank’s investment policies. Bank Owned Life Insurance First Federal of Kentucky owns several Bank Owned Life Insurance policies totaling $3.0 million at June 30, 2025.
At June 30, 2024, the total outstanding home equity loans amounted to 3.2% of the Company’s total loan portfolio. 4 Loans secured by savings are originated for up to 90% of the depositor’s savings account balance.
At June 30, 2025, the total outstanding home equity loans amounted to 4.5% of the Company’s total loan portfolio. 4 Loans secured by savings are originated for up to 90% of the depositor’s savings account balance.
First Federal of Kentucky’s primary lending area includes the Kentucky counties of Franklin, Boyle, Garrard and surrounding counties, with the majority of lending originated on properties located in Franklin and Boyle Counties. Franklin County has a population of approximately 52,000, of which approximately 27,000 live within the city of Frankfort, which serves as the capital of Kentucky.
First Federal of Kentucky’s primary lending area includes the Kentucky counties of Franklin, Boyle, Garrard and surrounding counties, with the majority of lending originated on properties located in Franklin and Boyle Counties. Franklin County has a population of approximately 51,913, of which approximately 28,676 live within the city of Frankfort, which serves as the capital of Kentucky.
The primary sources of employment are public administration, education, other services, and health care. The median household income in Franklin County is $67,788. The unemployment rate is 4.20% Boyle County has a population of approximately 31,000. The primary sources of employment are health care, retail, information services, and manufacturing.
The primary sources of employment are public administration, education, other services, and health care. The median household income in Franklin County is $66,095. The unemployment rate is 4.4% Boyle County has a population of approximately 31,139. The primary sources of employment are health care, retail, information services, and manufacturing.
Kentucky First’s and First Federal of Hazard’s executive offices are located at 655 Main Street, Hazard, Kentucky, 41702 and the telephone number for investor relations is (888) 818-3372. 1 At June 30, 2024, Kentucky First had total assets of $375.0 million, deposits of $256.1 million and stockholders’ equity of $48.0 million.
Kentucky First’s and First Federal of Hazard’s executive offices are located at 655 Main Street, Hazard, Kentucky, 41702 and the telephone number for investor relations is (888) 818-3372. 1 At June 30, 2025, Kentucky First had total assets of $371.2 million, deposits of $277.6 million and stockholders’ equity of $48.4 million.
Historically, our primary lending activity is the origination of mortgage loans to enable borrowers to purchase or refinance existing homes in the Banks’ respective market areas. At June 30, 2024, residential mortgage loans including construction loans and multi-family totaled $285.8 million, or 85.3%, of our total loan portfolio.
Historically, our primary lending activity is the origination of mortgage loans to enable borrowers to purchase or refinance existing homes in the Banks’ respective market areas. At June 30, 2025, residential mortgage loans including construction loans and multi-family totaled $276.2 million, or 83.6%, of our total loan portfolio.
At June 30, 2024, nonresidential real estate loans totaled $34.3 million, or 10.2% of our total loan portfolio. We originate nonresidential real estate loans for terms of generally 25 years or less and loan amounts generally do not exceed 80% of the appraised value and tend to range much lower.
At June 30, 2025, nonresidential real estate loans totaled $31.7 million, or 9.6% of our total loan portfolio. We originate nonresidential real estate loans for terms of generally 25 years or less and loan amounts generally do not exceed 80% of the appraised value and tend to range much lower.
First Federal of Kentucky principally competes for deposits by offering a variety of deposit accounts, convenient business hours and branch locations, customer service and a well-trained staff. According to the FDIC, at June 30, 2024, First Federal of Kentucky had deposit market share of 7.0%, 7.1% and 13.6% for the Kentucky counties of Franklin, Boyle and Garrard.
First Federal of Kentucky principally competes for deposits by offering a variety of deposit accounts, convenient business hours and branch locations, customer service and a well-trained staff. According to the FDIC, at June 30, 2025, First Federal of Kentucky had deposit market share of 8.2%, 8.2% and 17.5% for the Kentucky counties of Franklin, Boyle and Garrard.
During the last five years, the unemployment rate (not seasonally adjusted) has been higher than most regions, and in July 2024, was 7.0%, compared to 5.1% in Kentucky and 4.2% in the United States.
During the last five years, the unemployment rate (not seasonally adjusted) has been higher than most regions, and in July 2025, was 6.9%, compared to 4.7% in Kentucky and 4.3% in the United States.
At June 30, 2024, First Federal of Kentucky exceeded the requirements of the IMCRs as its common equity tier 1 capital ratio was 16.25%, its tier 1 capital ratio was 16.25%, its total capital ratio was 16.25%, and its leverage ratio was 10.24%.
At June 30, 2025, First Federal of Kentucky exceeded the requirements of the IMCRs as its common equity tier 1 capital ratio was 16.83%, its tier 1 capital ratio was 16.83%, its total capital ratio was 16.83%, and its leverage ratio was 9.97%.
Federal savings associations pay assessments to the OCC to fund its operations. The general assessments, paid on a semi-annual basis, are based upon the savings association’s total assets, including consolidated subsidiaries, its financial condition and the complexity of its portfolio.
Federal savings associations pay assessments to the OCC to fund its operations. The general assessments, paid on a semi-annual basis, are based upon the savings association’s total assets, including consolidated subsidiaries, its financial condition and the complexity of its portfolio. During the current year, our assessments totaled $97,000. 12 Insurance of Deposit Accounts.
In January 2024, the board announced that due to low income at the banks, the dividend to shareholders would be suspended indefinitely, and First Federal MHC suspended efforts to seek member approval to obtain the dividend waiver in the coming year.
In January 2024, the Company announced that dividends to shareholders would be suspended indefinitely, and that First Federal MHC had suspended efforts to seek member approval to obtain the dividend waiver in the coming year.
At June 30, 2024 construction loans totaled $13.8 million, or 4.1%, of our total loan portfolio. Our construction loans generally provide for the payment of interest only during the construction phase, which is usually less than one year. Loans generally can be made with a maximum loan to value ratio of 80% of the appraised value.
At June 30, 2025 construction loans totaled $9.3 million, or 2.8%, of our total loan portfolio. Our construction loans generally provide for the payment of interest only during the construction phase, which is usually 9 to 15 months. Loans generally can be made with a maximum loan to value ratio of 80% of the appraised value.
The unemployment rate is 5.0% while the median household income in Boyle County is $60,218. Garrard County has a population of approximately 18,000. The primary sources of employment are education, health care, retail, and construction. There is a 4.5% unemployment rate and $62,546 median household income. 2 Lending Activities General .
The unemployment rate is 5.5% while the median household income in Boyle County is $58,397. Garrard County has a population of approximately 17,916. The primary sources of employment are education, health care, retail, and construction. There is a 5.0% unemployment rate and $61,034 median household income. 2 Lending Activities General .
Boyle Bancorp, Wesbanco, Inc., and Community Trust Bancorp, Inc. had assets at June 30, 2024, of $940.3 million, $18.1 billion, and $5.8 billion, respectively. The Bank also faces considerable competition from credit unions including the Commonwealth Credit Union ($2.3 billion in assets) and the Expree Credit Union ($102.1 million in assets).
Boyle Bancorp, Wesbanco, Inc., Traditional Bank, Inc. and Community Trust Bancorp, Inc. had assets at June 30, 2025, of $1.0 billion, $27.5 billion, $2.4 billion, and $6.4 billion, respectively. The Bank also faces considerable competition from credit unions including the Commonwealth Credit Union ($2.6 billion in assets) and the Expree Credit Union ($109.6 million in assets).
Its largest competitors for depositors are the Boyle Bancorp, Inc. (The Farmers National Bank of Danville) at 28.1%, Wesbanco Bank, Inc. (Wesbanco) at 15.5% and Community Trust Bancorp, Inc., (Community Trust Bank) at 8.3% market share in the three-county area.
Its largest competitors for depositors are the Boyle Bancorp, Inc. (The Farmers National Bank of Danville) at 27.4%, Wesbanco Bank, Inc. (Wesbanco) at 14.2% and Community Trust Bancorp, Inc., Traditional Bank, Inc, at 7.8%, (Community Trust Bank) at 7.7% market share in the three-county area.
Its largest competitors, Hazard Bancorp (Peoples Bank & Trust Company of Hazard,) 1 st Trust Bank, Inc., and Community Trust Bancorp, Inc. (Community Trust Bank, Inc.) had Perry County deposit market shares of 42.7%, 23.6% and 28.7%, respectively.
Its largest competitors, Hazard Bancorp (Peoples Bank & Trust Company of Hazard,), Community Trust Bancorp, Inc. (Community Trust Bank), and 1 st Trust Bank, Inc., had Perry County deposit market shares of 37.1%, 29.3% and 22.1%, respectively.
At June 30, 2024, our consumer loan balance totaled $12.2 million, or 3.6%, of our total loan portfolio. Of the consumer loan balance at June 30, 2024, $10.6 million were home equity loans, $819,000 were loans secured by savings deposits and $117,000 were automobile or unsecured loans.
At June 30, 2025, our consumer loan balance totaled $16.3 million, or 5.0%, of our total loan portfolio. Of the consumer loan balance at June 30, 2025, $14.6 million were home equity loans, $813,000 were loans secured by savings deposits and $885,000 were automobile or unsecured loans.
It is possible that during periods of rising interest rates, the risk of default on adjustable-rate loans may increase due to increases in interest costs to borrowers.
However, there are unquantifiable credit risks resulting from potential increases in costs to borrowers in the event of upward repricing of adjustable-rate loans. It is possible that during periods of rising interest rates, the risk of default on adjustable-rate loans may increase due to increases in interest costs to borrowers.
In the most recent available data, using information from the Commonwealth of Kentucky Economic Development and the United States Bureau of Labor Statistics, median household income in Perry County is $48,328 compared to personal income of $61,118 in Kentucky and $80,610 in the United States. Total population in Perry County is approximately 28,000.
In the most recent available data, using information from the Commonwealth of Kentucky Economic Development and the United States Bureau of Labor Statistics, median household income in Perry County is $46,572 compared to personal income of $64,790 in Kentucky and $83,730 in the United States. Total population in Perry County is approximately 27,276.
Management cannot predict what insurance assessment rates will be in the future. Federal Home Loan Bank System. First Federal of Hazard and First Federal of Kentucky are members of the Federal Home Loan Bank System, which consists of 12 regional Federal Home Loan Banks. The Federal Home Loan Bank provides a central credit facility primarily for member institutions.
First Federal of Hazard and First Federal of Kentucky are members of the Federal Home Loan Bank System, which consists of 11 regional Federal Home Loan Banks. The Federal Home Loan Bank provides a central credit facility primarily for member institutions.
At June 30, 2024, First Federal of Kentucky had total assets of $287.1 million, net loans of $251.9 million, total mortgage-backed and other securities of $6.4 million, deposits of $204.4 million and total capital of $28.9 million. First Federal of Kentucky’s main office is located at 216 W.
At June 30, 2025, First Federal of Kentucky had total assets of $286.1 million, net loans of $250.0 million, total mortgage-backed and other securities of $7.0 million, deposits of $219.4 million and total capital of $29.3 million. First Federal of Kentucky’s main office is located at 216 W.
We offer a mix of adjustable-rate and fixed-rate mortgage loans with terms up to 30 years. Adjustable-rate loans have an initial fixed term of one, three, five or seven years. After the initial term, the rate adjustments on most of our adjustable-rate loans are indexed to the MIRS Transition Index, formerly known as PMMS+ Index.
We offer a mix of adjustable rate and fixed-rate mortgages with terms up to 30 years. Other than loans with very short terms, fixed-rate mortgages are originated to be sold on the secondary market. After the initial term, the rate adjustments on most of our adjustable-rate loans are indexed to the MIRS Transition Index, formerly known as PMMS+ Index.
At June 30, 2024, First Federal of Hazard had total assets of $89.8 million, net loans of $81.1 million, total mortgage-backed and other securities of $3.4 million, deposits of $54.4 million and total capital of $18.0 million. First Federal Savings Bank of Kentucky.
At June 30, 2025, First Federal of Hazard had total assets of $85.8 million, net loans of $77.2 million, total mortgage-backed and other securities of $2.8 million, deposits of $59.5 million and total capital of $17.9 million. First Federal Savings Bank of Kentucky.
Assessment rates currently range from 1.5 to 30 basis points of total average assets (excluding PPP loans) less average tangible equity. The FDIC has authority to increase insurance assessments. A significant increase in insurance premiums would likely have an adverse effect on the operating expenses and results of operations of the Banks.
No institution may pay a dividend if in default of the federal deposit insurance assessment. Assessment rates currently range from 1.5 to 30 basis points of total average assets (excluding PPP loans) less average tangible equity. The FDIC has authority to increase insurance assessments.
First Federal of Hazard and First Federal of Kentucky were in compliance with this requirement with investments in Federal Home Loan Bank of Cincinnati stock at June 30, 2024, of $960,000 million and $3.3 million, respectively. Reserve Requirements.
First Federal of Hazard and First Federal of Kentucky were in compliance with this requirement with investments in Federal Home Loan Bank of Cincinnati stock at June 30, 2025, of $866,000 and $3.1 million, respectively. Reserve Requirements. Federal Reserve Board regulations require insured depository institutions to maintain non-interest earning reserves against their transaction accounts (primary interest-bearing and regular checking accounts).
Some loans originated by the Banks have an additional advance clause which allows the borrower to obtain additional funds at prevailing interest rates, subject to managements’ approval. At June 30, 2024, the Company’s loan portfolio included $252.6 million in adjustable-rate residential mortgage loans, or 88.4% of the Company’s residential mortgage loan portfolio.
We determine loan fees charged, interest rates and other provisions of mortgage loans on the basis of our own pricing criteria and competitive market conditions. Some loans originated by the Banks have an additional advance clause which allows the borrower to obtain additional funds at prevailing interest rates, subject to managements’ approval.
The FDIC may adjust the scale uniformly, except that no adjustment can deviate more than two basis points from the base scale without notice and comment. No institution may pay a dividend if in default of the federal deposit insurance assessment.
An institution’s assessment rate depends upon the category to which it is assigned, and certain adjustments specified by FDIC regulations. Institutions deemed less risky pay lower assessments. The FDIC may adjust the scale uniformly, except that no adjustment can deviate more than two basis points from the base scale without notice and comment.
During the current year, our assessments totaled $81,000 and are expected to increase in the fiscal year ended June 30, 2025. 12 Insurance of Deposit Accounts. The deposits of both First Federal of Hazard and First Federal of Kentucky are insured up to applicable limits by the DIF administered by the FDIC. Deposit insurance per account owner is currently $250,000.
The deposits of both First Federal of Hazard and First Federal of Kentucky are insured up to applicable limits by the DIF administered by the FDIC. Deposit insurance per account owner is currently $250,000. Under the FDIC’s risk-based assessment system, insured depository are assigned a risk category based on supervisory evaluations, regulatory capital levels and certain other factors.
The retention of adjustable-rate loans in the portfolio helps reduce our exposure to increases in prevailing market interest rates. However, there are unquantifiable credit risks resulting from potential increases in costs to borrowers in the event of upward repricing of adjustable-rate loans.
At June 30, 2025, the Company’s loan portfolio included $258.9 million in adjustable-rate residential mortgage loans, or 93.8% of the Company’s residential mortgage loan portfolio. The retention of adjustable-rate loans in the portfolio helps reduce our exposure to increases in prevailing market interest rates.
The interest rates on these mortgages are adjusted once a year, with limitations on adjustments generally of one percentage point per adjustment period, and a lifetime cap of five percentage points. We determine loan fees charged, interest rates and other provisions of mortgage loans on the basis of our own pricing criteria and competitive market conditions.
The annual lifetime cap on older loans is 5.00% above the original rate and 6.00% on newer loans, with limitations on adjustments generally of one percentage point per adjustment period, and a lifetime cap of five percentage points.
Removed
Under the FDIC’s risk-based assessment system, insured depository are assigned a risk category based on supervisory evaluations, regulatory capital levels and certain other factors. An institution’s assessment rate depends upon the category to which it is assigned, and certain adjustments specified by FDIC regulations. Institutions deemed less risky pay lower assessments.
Added
Loans originated from early 2024 are indexed to the 1-Year Constant Maturity Treasury index, plus a margin. The interest rates on these mortgages are adjusted once a year. For older loans, the limitation on annual adjustments are mostly at 1.00% while loans originated since 2024 have an annual limitation of 2.00% per adjustment period.
Removed
Federal Reserve Board regulations require insured depository institutions to maintain non-interest earning reserves against their transaction accounts (primary interest-bearing and regular checking accounts).
Added
A significant increase in insurance premiums would likely have an adverse effect on the operating expenses and results of operations of the Banks. Management cannot predict what insurance assessment rates will be in the future. Federal Home Loan Bank System.
Added
Federal law prohibits a savings and loan holding company, including a federal mutual holding company, from directly or indirectly, or through one or more subsidiaries, acquiring more than 5% of the voting stock of another savings association, or its holding company, without prior written approval of the Federal Reserve Board.

Item 1A. Risk Factors

Risk Factors — what could go wrong, per management

20 edited+11 added−14 removed113 unchanged
Biggest changeThe increase in interest rates has caused our net interest income to decline. Net interest income decreased $1.8 million or 20.3% compared to the fiscal year ended June 30, 2023 primarily due to an increase in interest expense of $5.4 million or 137.9%, offset somewhat by an increase in interest income $3.5 million or 27.6%.
Biggest changeRates continued to increase through August 2023 which caused significant deterioration in our profits and asset values. Net interest income in the year ended June 30, 2024 decreased $1.8 million or 20.3% compared to the fiscal year ended June 30, 2023.
On January 16, 2024, the Company announced the suspension of quarterly dividends indefinitely. The suspension of our quarterly cash dividend could have an adverse impact on the market price of our common stock.
On January 16, 2024, the Company announced the suspension of quarterly dividends indefinitely. The suspension of our quarterly cash dividend could have an adverse impact on the market price of our common stock. On January 16, 2024, the Company announced the suspension of quarterly dividends indefinitely.
As of June 30, 2024, the capital levels of First Federal of Hazard and First Federal of Kentucky exceed the required capital amounts according to the Community Bank Leverage Ratio regulations and we believe they also meet the fully-phased in minimum capital requirements. As previously discussed, in August 2024, First Federal of Kentucky entered into an Agreement with the OCC.
As of June 30, 2025, the capital levels of First Federal of Hazard and First Federal of Kentucky exceed the required capital amounts according to the Community Bank Leverage Ratio regulations and we believe they also meet the fully-phased in minimum capital requirements. As previously discussed, in August 2024, First Federal of Kentucky entered into an Agreement with the OCC.
The recent changes in the tax laws may have an adverse effect on the market for, and valuation of, residential properties, and on the demand for such loans in the future, and could make it harder for borrowers to make their loan payments. If home ownership becomes less attractive, demand for mortgage loans could decrease.
The changes in the tax laws may have an adverse effect on the market for, and valuation of, residential properties, and on the demand for such loans in the future, and could make it harder for borrowers to make their loan payments. If home ownership becomes less attractive, demand for mortgage loans could decrease.
Inflation has risen sharply since the end of 2021 to levels not seen for over 40 years. Inflationary pressures are currently expected to remain elevated throughout 2024. Inflation could lead to increased costs to our customers, making it more difficult for them to repay their loans or other obligations.
Inflation has risen sharply since the end of 2021 to levels not seen for over 40 years. Inflationary pressures are currently expected to remain elevated throughout 2025. Inflation could lead to increased costs to our customers, making it more difficult for them to repay their loans or other obligations.
At June 30, 2024, First Federal of Kentucky exceeded the requirements of the IMCRs as its common equity tier 1 capital ratio was 16.25%, its tier 1 capital ratio was 16.25%, its total capital ratio was 16.25%, and its leverage ratio was 10.24%. 21 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; and ● adopt a revised written interest rate risk program that includes risk management systems to identify, measure, monitor, and control interest rate risk.
At June 30, 2025, First Federal of Kentucky exceeded the requirements of the IMCRs as its common equity tier 1 capital ratio was 16.83%, its tier 1 capital ratio was 16.83%, its total capital ratio was 16.83%, and its leverage ratio was 9.97%. 21 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; and ● adopt a revised written interest rate risk program that includes risk management systems to identify, measure, monitor, and control interest rate risk.
Item 1A. Risk Factors . Interest Rate Risk Rising interest rates may hurt our profits and asset values . Beginning in March, 2022, the Federal Reserve Board’s Open Market Committee (“FOMC”) started raising interest rates to combat elevated inflation and a strong labor market. Rates continued to increase through August 2023.
Item 1A. Risk Factors . Interest Rate Risk Rising interest rates may hurt our profits and asset values . Beginning in March, 2022, the Federal Reserve Board’s Open Market Committee (“FOMC”) started raising interest rates to combat elevated inflation and a strong labor market.
At June 30, 2024, we had off-balance sheet liquidity sources totaling $89.3 million, including $71.4 million in additional borrowing capacity at the Federal Home Loan Bank of Cincinnati. Notwithstanding our significant liquidity, large deposit outflows could adversely affect our financial condition and results of operations and could result in the closure of the Banks.
At June 30, 2025, we had off-balance sheet liquidity sources totaling $80.3 million, including $71.0 million in additional borrowing capacity at the Federal Home Loan Bank of Cincinnati. Notwithstanding our significant liquidity, large deposit outflows could adversely affect our financial condition and results of operations and could result in the closure of the Banks.
Decreases in the fair value of securities available for sale resulting from increases in interest rates therefore could have an adverse effect on stockholders’ equity. At June 30, 2024, this decrease in fair value of the securities, otherwise known as Accumulated other comprehensive loss totaled $336,000 or 3.4% of our securities portfolio.
Decreases in the fair value of securities available for sale resulting from increases in interest rates therefore could have an adverse effect on stockholders’ equity. At June 30, 2025, this decrease in fair value of the securities, otherwise known as Accumulated other comprehensive loss totaled $145,000 or 1.5% of our securities portfolio.
Approximately 96.1% of our loan portfolio at June 30, 2024 was comprised of loans collateralized by real estate. Disruptions in the real estate market could significantly impair the value of our collateral and our ability to sell the collateral upon foreclosure.
Approximately 99.3% of our loan portfolio at June 30, 2025 was comprised of loans collateralized by real estate. Disruptions in the real estate market could significantly impair the value of our collateral and our ability to sell the collateral upon foreclosure.
At June 30, 2024, $256.2 million, or 76.5%, of our loan portfolio was secured by one-to-four family real estate, all of which is located in the Commonwealth of Kentucky, and we intend to continue this type of lending in the foreseeable future.
At June 30, 2025, $275.3 million, or 83.6%, of our loan portfolio was secured by one-to-four family real estate, all of which is located in the Commonwealth of Kentucky, and we intend to continue this type of lending in the foreseeable future.
High interest rates may be needed to tame persistent inflationary price pressures, which could also push down asset prices and weaken economic activity.
While interest rates have declined since September 2024, higher interest rates may be needed to tame persistent inflationary price pressures, which could also push down asset prices and weaken economic activity.
To further bolster the banking system, the Federal Reserve Board created a new Bank Term Funding Program to provide an additional source of liquidity. At June 30, 2024, we had $27.9 million in available liquidity, including $18.3 million in cash and cash equivalents. Our uninsured deposits are estimated to be approximately $17.5 million or 6.83% of total deposits.
To further bolster the banking system, the Federal Reserve Board created a new Bank Term Funding Program to provide an additional source of liquidity. At June 30, 2025, we had $29.2 million in available liquidity, including $19.5 million in cash and cash equivalents. Our uninsured deposits are estimated to be approximately $37.1 million or 13.4% of total deposits.
These changes can be hard to predict and can materially impact how we record and report our consolidated financial condition and results of operations. In some cases, we could be required to apply new or revised guidance retroactively.
These changes can be hard to predict and can materially impact how we record and report our consolidated financial condition and results of operations. In some cases, we could be required to apply new or revised guidance retroactively. 24 Risks Related to Operational Matters We are subject to certain risks in connection with our use of technology.
Changes in tax laws contained in the Tax Cuts and Jobs Act, which was enacted in December 2017, include a number of provisions that will have an impact on the banking industry, borrowers and the market for residential real estate.
Changes in tax laws contained in the Tax Cuts and Jobs Act, which was enacted in December 2017, and the legislation commonly known as the “One Big Beautiful Bill Act” signed into law on July 4, 2025, include a number of provisions that will have an impact on the banking industry, borrowers and the market for residential real estate.
At June 30, 2024, First Federal of Kentucky exceeded the requirements of the IMCRs as its common equity tier 1 capital ratio was 16.25%, its tier 1 capital ratio was 16.25%, its total capital ratio was 16.25%, and its leverage ratio was 10.24% See Note K-Stockholders’ Equity and Regulatory Capital of Notes to Consolidated Financial Statements. 23 The application of more stringent capital requirements for us could among other things, result in lower returns on equity, require the raising of additional capital, and result in regulatory actions constraining us from paying dividends or repurchasing shares if we were unable to comply with such requirements.
See Note K-Stockholders’ Equity and Regulatory Capital of Notes to Consolidated Financial Statements. 23 The application of more stringent capital requirements for us could among other things, result in lower returns on equity, require the raising of additional capital, and result in regulatory actions constraining us from paying dividends or repurchasing shares if we were unable to comply with such requirements.
Holders of our common stock are only entitled to receive such dividends as our Board of Directors may declare out of funds available for such payments under applicable law and regulatory guidance.
Holders of our common stock are only entitled to receive such dividends as our Board of Directors may declare out of funds available for such payments under applicable law and regulatory guidance. We cannot predict when or whether the Company will be able to pay future common stock dividends and if so, the amount of any such common stock dividends.
At June 30, 2024, 83.3% of our residential real estate loan portfolio were adjustable-rate loans.
At June 30, 2025, 93.8% of our residential real estate loan portfolio was adjustable-rate loans.
In September 2024, the FOMC decided to lower the target range for the federal funds rate by 50 basis points to 4 3/4 to 5 percent.
In September 2024, the FOMC began to lower the target range for the federal funds rate by 50 basis points and has subsequently lowered rates by another 75 basis points, as of September 17, 2025.
During the fiscal year ended June 30, 2024, non-interest income decreased $51,000 or 16.9% and totaled $251,000, primarily due to decreased participation and service fee income.
During the fiscal year ended June 30, 2025, non-interest income increased $249,000 or 99.2% and totaled $500,000, primarily due to increased net gains on sales of loans of $187,000.
Removed
Our funding sources repriced more quickly during the interest rate increases than our assets. Consequently, the increase in our interest expense was attributed primarily to higher average rates paid on both deposits and FHLB advances, while the increase in our interest income was a combination of both higher average balances and higher rates earned on those assets.
Added
This has caused improvement in the company’s net interest income from $6.9 million in the year ended June 30, 2024 to $8.3 million in the year ended June 30, 2025. This was primarily the result of higher returns on assets while the cost of funds continued to increase in the earlier part of the year before beginning to decline.
Removed
Although we have historically declared cash dividends on our common stock, we are not required to do so, and on January 16, 2024, the Company announced the suspension of quarterly dividends indefinitely. We cannot predict when or whether the Company will be able to pay future common stock dividends and if so, the amount of any such common stock dividends.
Added
Our ability to pay future dividends and if so at what level will also be dependent on numerous factors, including: our ability to receive any required regulatory approval or non-objection to pay dividends to our shareholders; our ability to receive regulatory approval or non-objection to pay dividends from First Federal Savings and Loan Association of Hazard and First Federal Savings Bank of Kentucky to the Company in order for the Company to pay dividends to shareholders; our ability to fully and timely address the deficiencies that resulted in the formal Agreement that First Federal Savings Bank of Kentucky entered into with the OCC on August 13, 2024, or any other deficiencies identified by the OCC or the Federal Reserve Bank of Cleveland; our ability to successfully execute our strategy to increase earnings and core deposits, reduce reliance on higher cost funding sources and shift more of our loan portfolio towards higher-earning loans; and First Federal Savings Bank of Kentucky’s ability to satisfy the IMCR’s imposed by the OCC, which require First Federal Savings Bank 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%.
Removed
The suspension of our common stock dividend could adversely affect the market price of our common stock. 20 Risks Related to Our Business and Industry Generally Our FDIC deposit insurance premiums and assessments may increase, which would reduce our profitability.
Added
As of June 30, 2025, our common equity tier 1 capital ratio was 16.83%, its tier 1 capital ratio was 16.83%, its total capital ratio was 16.83%, and its leverage ratio was 9.97%.
Removed
On March 12, 2023, the Department of the Treasury, the Federal Reserve and the FDIC issued a joint statement relating to the resolution of Silicon Valley Bank and Signature Bank that stated that losses to support uninsured deposits of those banks would be recovered via a special assessment on banks.
Added
For additional information on the formal Agreement that First Federal Savings Bank of Kentucky has entered into with the OCC and the IMCR’s imposed on First Federal Savings Bank of Kentucky by the OCC, please see “Management’s Discussion and Analysis-Regulatory Developments Regarding First Federal of Kentucky.” 20 As the mutual holding company and majority shareholder of Kentucky First Federal Bancorp, First Federal MHC must receive the approval of the Federal Reserve Board and the members of First Federal MHC in order to waive the receipt of any dividends declared and paid by Kentucky First Federal Bancorp to its shareholders.
Removed
On May 11, 2023 the FDIC Board of Directors approved a notice of proposed rulemaking, which would implement a special assessment to recover the cost associated with protecting uninsured depositors following the closures of Silicon Valley Bank and Signature Bank. In general, large banks with large amounts of uninsured deposits benefitted most from the protection of uninsured depositors.
Added
While Kentucky First Federal has previously received such approvals, those approvals have expired. The inability to receive those approvals in the future would adversely impact Kentucky First Federal’s ability to pay dividends to its shareholders in the future.
Removed
Banking organizations with total assets over $50 billion would pay more than 95 percent of the special assessment and banking organizations with total assets under $5 billion would not be subject to the special assessment.
Added
In previous years, First Federal MHC has received Federal Reserve Board approval to waive quarterly dividends otherwise payable by the Company totaling $0.40 per share annually beginning with the dividend paid on September 28, 2012 and continuing through the dividend payable in the third quarter of 2024.
Removed
Under the current provisions of this notice of proposed rulemaking, we believe that we would not be impacted by the special assessment associated with the most recent banking organization closures. Strong competition within our market areas could hurt our profits and slow growth.
Added
However, First Federal MHC did not seek to obtain regulatory approval to waive dividends for periods after the third quarter of 2024, and the prior Federal Reserve Boad approval to waive the payment of quarterly dividends that would otherwise be payable to First Federal MHC has expired.
Removed
If we are required to impair our goodwill, intangibles, or other long-lived assets, our financial condition and results of operations would be adversely affected.
Added
To the extent the Company resumes the payment of dividends in future periods, it is expected that First Federal MHC will again waive future dividends, except to the extent dividends are needed to fund First Federal MHC’s continuing operations, subject to the ability of First Federal MHC to obtain regulatory approval of its requests to waive dividends and to its ability to obtain member approval of dividend waivers.
Removed
Pursuant to Accounting Standards Codification (“ASC”) 350, Intangibles - Goodwill and Other and ASC 360, Property, Plant and Equipment, we are required to perform an annual impairment review of goodwill, intangibles and other long-lived assets which could result in an impairment charge if it is determined that the carrying value of the assets are in excess of the fair value.
Added
If First Federal MHC is unable to waive the receipt of dividends, the Company’s ability to pay dividends to our stockholders may be substantially impaired and the amounts of any such dividends may be significantly reduced. Risks Related to Our Business and Industry Generally Strong competition within our market areas could hurt our profits and slow growth.
Removed
We perform the impairment test annually during our fourth fiscal quarter. Goodwill, intangibles and other long-lived assets are also tested more frequently if changes in circumstances or the occurrence of events indicates that a potential impairment exists.
Added
At June 30, 2025, First Federal of Kentucky exceeded the requirements of the IMCRs as its common equity tier 1 capital ratio was 16.83%, its tier 1 capital ratio was 16.83%, its total capital ratio was 16.83%, and its leverage ratio was 9.97%.
Removed
When changes in circumstances, such as changes in the variables associated with the judgments, assumptions and estimates made in assessing the appropriate fair value indicate the carrying amount of certain assets may not be recoverable, the assets are evaluated for impairment. If actual operating results differ from these assumptions, it may result in an asset impairment.
Added
We cannot predict whether members will continue to approve annual dividend waiver requests or whether the Federal Reserve Board will grant future dividend waiver requests and, if granted, there can be no assurance as to the conditions, if any, the Federal Reserve Board will place on future dividend waiver requests by grandfathered mutual holding companies such as First Federal MHC.
Removed
As of June 30, 2020, management early adopted ASU 2017-04, Intangibles-Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment, which simplifies the required method for estimating the fair value of the Company.
Removed
Future write-downs of intangibles and other long-lived assets could affect certain of the financial covenants under our debt agreements, could restrict our financial flexibility, and would impact our results of operations.
Removed
In the period ended June 30, 2024, the Company recorded a goodwill impairment charge, which had no tax impact, of $947,000, which represents 100.0% of goodwill previously reported. 24 Risks Related to Operational Matters We are subject to certain risks in connection with our use of technology.

Item 1C. Cybersecurity

Cybersecurity — threats and controls disclosure

1 edited+0 added−0 removed26 unchanged
Biggest changeMaterial Cybersecurity Threat Risks The Company has not experienced any material losses relating to cybersecurity threats or incidents for the year ended June 30, 2024.
Biggest changeMaterial Cybersecurity Threat Risks The Company has not experienced any material losses relating to cybersecurity threats or incidents for the year ended June 30, 2025.

Item 2. Properties

Properties — owned and leased real estate

2 edited+0 added−0 removed1 unchanged
Biggest changeYear Opened/ Acquired Owned or Leased Net Book Value at June 30, 2024 Approximate Square Footage (Dollars in thousands) First Federal of Hazard Main Office: 655 Main Street Hazard, Kentucky 41701 2016 Owned $ 646 5,600 First Federal of Kentucky Main Office: 216 West Main Street Frankfort, Kentucky 40601 2005 Owned 847 14,000 194 Versailles Road Frankfort, Kentucky 40601 2015 Owned 788 2,700 1220 US 127 South Frankfort, Kentucky 40601 2005 Owned 420 2,480 340 West Main Street Danville, Kentucky 40422 2012 Owned 477 8,700 120 Skywatch Drive Danville, Kentucky 40422 2012 Owned 648 2,300 208 Lexington Street Lancaster, Kentucky 40444 2012 Owned 376 4,300 The net book value of our investment in premises and equipment was $ 4.3 million at June 30, 2024.
Biggest changeYear Opened/ Acquired Owned or Leased Net Book Value at June 30, 2025 Approximate Square Footage (Dollars in thousands) First Federal of Hazard Main Office: 655 Main Street Hazard, Kentucky 41701 2016 Owned $ 630 5,600 First Federal of Kentucky Main Office: 216 West Main Street Frankfort, Kentucky 40601 2005 Owned 722 14,000 194 Versailles Road Frankfort, Kentucky 40601 2015 Owned 748 2,700 1220 US 127 South Frankfort, Kentucky 40601 2005 Owned 40 4 2,480 340 West Main Street Danville, Kentucky 40422 2012 Owned 476 8,700 120 Skywatch Drive Danville, Kentucky 40422 2012 Owned 627 2,300 208 Lexington Street Lancaster, Kentucky 40444 2012 Owned 360 4,300 The net book value of our investment in premises and equipment was $4.2 million at June 30, 2025.
Item 2. Properties . We conduct our business through seven offices. The following table sets forth certain information relating to our offices at June 30, 2024.
Item 2. Properties . We conduct our business through seven offices. The following table sets forth certain information relating to our offices at June 30, 2025.

Item 5. Market for Registrant's Common Equity

Market for Common Equity — stock, dividends, buybacks

3 edited+1 added−1 removed0 unchanged
Biggest changePeriod (a) Total Number of Shares Purchased (b) Average Price Paid per Share (c) Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs (d) Maximum Number of Shares That May Yet Be Purchased Under the Plans or Programs (1) April 2023 Beginning date: April 1 Ending date: April 30 — — — 10,980 May 2023 Beginning date: May 1 Ending date: May 31 10,980 $ 6.05 10,980 — June 2023 Beginning date: June 1 Ending date: June 30 — — — — Total 10,980 $ 6.05 10,980 10,980 (1) On May 18, 2023, the Company announced that it had substantially completed its program to repurchase up to 150,000 shares of its Common Stock, which was initiated on February 3, 2021. 30 Item 6. [Reserved] .
Biggest changePeriod (a) Total Number of Shares Purchased (b) Average Price Paid per Share (c) Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs (d) Maximum Number of Shares That May Yet Be Purchased Under the Plans or Programs (1) April 2025 Beginning date: April 1 Ending date: April 30 — — — — May 2025 Beginning date: May 1 Ending date: May 31 — — — — June 2025 Beginning date: June 1 Ending date: June 30 — — — — Total — — — — (1) No stock was purchased in the fiscal years ended June 30, 2024 and 2025.
Item 5. Market for the Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities . (a) The information contained under the sections captioned “ Market Information ” in the Company’s Annual Report to Stockholders for the Fiscal Year Ended June 30, 2024 (the “Annual Report”) filed as Exhibit 13 hereto is incorporated herein by reference.
Item 5. Market for the Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities . (a) The information contained under the sections captioned “ Market Information ” in the Company’s Annual Report to Stockholders for the Fiscal Year Ended June 30, 2025 (the “Annual Report”) filed as Exhibit 13 hereto is incorporated herein by reference.
(b) Not applicable. (c) The Company repurchased no equity securities registered under the Securities Exchange Act of 1934, as amended, during any quarter of the fiscal year ended June 30, 2024.
(b) Not applicable. (c) The Company repurchased no equity securities registered under the Securities Exchange Act of 1934, as amended, during any quarter of the fiscal year ended June 30, 2025. (d) The Company repurchased equity securities registered under the Securities Exchange Act of 1934, as amended, during the fourth quarter of the fiscal year ended June 30, 2025.
Removed
(d) The company repurchased the following equity securities registered under the Securities Exchange Act of 1934, as amended, during the fourth quarter of the fiscal year ended June 30, 2023.
Added
There is no stock repurchase plan in place as of June 30, 2025. 30 Item 6. [Reserved] .

Item 7. Management's Discussion & Analysis

Management's Discussion & Analysis (MD&A) — revenue / margin commentary

1 edited+0 added−1 removed0 unchanged
Biggest changeItem 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations . The information contained in the section captioned “ Management’s Discussion and Analysis of Financial Condition and Results of Operations ” in the Annual Report, is incorporated herein by reference. Item 7A. Quantitative and Qualitative Disclosures About Market Risk .
Biggest changeItem 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations . The information contained in the section captioned “ Management’s Discussion and Analysis of Financial Condition and Results of Operations ” in the Annual Report, is incorporated herein by reference.
Removed
This item is not applicable, as the Company is a smaller reporting company.

Other KFFB 10-K year-over-year comparisons