Kentucky First Federal Bancorp — FY2026 Form 10-K
Reporting period: Fiscal year ended June 30, 2026. The filing was signed September 25, 2026. Kentucky First Federal Bancorp (NASDAQ: KFFB) operates two community-oriented savings institutions in Kentucky: First Federal of Hazard and First Federal of Kentucky.
Business context and financial position
The Banks primarily attract deposits and make real-estate-secured loans in their local markets. At June 30, 2026, the Company reported total assets of $362.4 million, deposits of $260.8 million and stockholders’ equity of $50.3 million. Its loan portfolio is concentrated in Kentucky real estate lending.
| Metric | Reported information |
|---|---|
| Loans | Residential mortgage loans, including construction and multifamily, were $265.8 million (82.6% of loans). One-to-four-family loans were $240.0 million (74.6%); nonresidential real-estate loans were $32.8 million (10.2%); consumer loans were $18.9 million (5.9%). Approximately 99.5% of loans were secured by real estate. |
| Interest income and expense | Net interest income increased $2.8 million versus FY2025, attributed to increased interest income and decreased interest expense. |
| Noninterest income | $629,000, up $129,000 (25.8%) from FY2025; net gains on loan sales increased $108,000 (53.7%). |
| Liquidity | $27.4 million of available liquidity, including $16.5 million in cash and cash equivalents. Off-balance-sheet liquidity sources totaled $89.4 million, including $76.1 million of additional FHLB borrowing capacity. |
| Funding | Brokered deposits were $29.6 million. Estimated uninsured deposits were $31.7 million, or 12.2% of total deposits. |
| Other | Accumulated other comprehensive loss on available-for-sale securities was $129,000. The allowance for expected losses on loan commitments was $59,000. |
The supplied filing text refers readers to the incorporated Annual Report for the full financial statements and management’s discussion. It does not provide clear values for net income, total revenue, operating expenses, cash flows, margins, debt or borrowing balances, loan-loss provision, or the Banks’ actual capital ratios. Year-over-year comparisons beyond those stated above are therefore not available from the supplied text.
Material developments and outlook
- The OCC terminated First Federal of Kentucky’s formal written agreement on February 19, 2026, and lifted the related individual minimum capital requirements. The Bank was no longer deemed in “troubled condition”; the filing says both Banks exceeded minimum capital requirements, but gives no actual ratios here.
- The Company had suspended dividends in January 2024. On July 28, 2026, after First Federal MHC members approved a dividend waiver, the Company announced resumed dividends and declared $0.05 per share, payable September 21, 2026. Future dividends remain dependent on regulatory and member approvals, subsidiary-bank distributions, and liquidity.
- No financial forecast or formal earnings guidance is provided in the supplied text. Management describes a strategy to increase earnings and core deposits, reduce reliance on higher-cost funding, and shift toward higher-earning assets, including selling longer-term fixed-rate residential loans into the secondary market.
- Interest-rate exposure remains important: 92.1% of the residential mortgage portfolio was adjustable-rate. Repricing may support asset yields, but rate increases could raise borrower payments and credit risk, while funding costs may rise faster than asset yields. The filing also notes a 25-basis-point Federal Reserve rate increase in September 2026.
- Principal risks include concentrated real-estate lending, local economic weakness in the Hazard market, inflation and interest-rate changes, competition for deposits and loans, possible deposit outflows, and cybersecurity and third-party technology risks. The filing reports no material cybersecurity losses for FY2026 and no pending legal proceeding believed likely to materially harm the Company.
- Management concluded disclosure controls and internal control over financial reporting were effective at June 30, 2026. The filing says the external auditor did not attest to internal control, citing the Company’s filer status. No shares were repurchased during FY2026.
Important facts for investors to verify
- Review the incorporated FY2026 Annual Report for net income, net interest margin, provision and allowance for credit losses, cash-flow details, borrowings, and regulatory capital ratios.
- Assess asset quality and concentration by loan type, geography, delinquency status, and collateral values; the supplied text does not give complete delinquency or nonperforming-loan data.
- Monitor deposit pricing and stability, including brokered and uninsured deposits, and compare available liquidity with potential withdrawal needs.
- Confirm the regulatory and member approvals required for future MHC dividend waivers, and the Banks’ capacity to upstream capital to the holding company.
- Evaluate execution of the stated funding and asset-mix strategy and the effect of changing rates on margins, borrower repayment capacity, and securities values.