Kentucky First Federal Bancorp

Kentucky First Federal Bancorp

Overview

Kentucky First Federal Bancorp is a mid-tier holding company operating primarily through two federally chartered savings banks: First Federal of Hazard and First Federal of Kentucky. First Federal MHC (a mutual holding company) holds the majority of Kentucky First’s common stock. The organization manages lending, investment and deposit activities across seven local offices in Kentucky.

Corporate structure and subsidiaries

• Banks: First Federal of Hazard (Hazard, KY) and First Federal of Kentucky (Frankfort, KY), including related branches and offices
• No other material wholly owned subsidiaries beyond these banks
• Banks are regulated by the OCC and FDIC and are members of the Federal Home Loan Bank of Cincinnati (FHLB-Cincinnati)

Market presence and geography

• First Federal of Hazard serves Perry County and surrounding counties in eastern Kentucky; the local economy includes coal-related activity
• First Federal of Kentucky serves Frankfort, Boyle and Garrard counties and nearby areas; local economies include public administration, education, health care and manufacturing
• Local population and unemployment (reporting period):
  • Perry County: population ≈ 26,824; unemployment ≈ 6.9% (July 2026)
  • Franklin County: population ≈ 52,605; unemployment ≈ 4.4%
  • Boyle County: population ≈ 31,481; unemployment ≈ 5.5%
  • Garrard County: population ≈ 18,090; unemployment ≈ 5.0%

Offices and premises

Seven owned offices:

• First Federal of Hazard: Main Office, 655 Main Street, Hazard, KY
• First Federal of Kentucky: Main Office, 216 West Main Street, Frankfort, KY; additional Frankfort address at 194 Versailles Road; Frankfort office at 1220 US 127 South, Frankfort, KY
• Danville: 340 West Main Street and 120 Skywatch Drive, Danville, KY
• Lancaster: 208 Lexington Street, Lancaster, KY

Net book value of premises and equipment (as of 6/30/2026): approximately $4.1 million

Core business and products

• Primary activities: attract deposits and originate primarily residential real estate loans
• Lending emphasis on residential mortgages (including construction and multi-family), with ARMs predominant in the residential portfolio

Loan portfolio (as of 6/30/2026):

• Residential mortgage loans (including construction and multi-family): $265.8 million (82.6% of total loans)
• Construction loans: $11.8 million (3.7%)
• Multi-family loans (five or more units): $14.0 million (4.3%)
• Nonresidential real estate loans (commercial): $32.8 million (10.2%)
• Commercial non-mortgage loans: $0.493 million (0.2%)
• Consumer loans (including home equity lines of credit): $18.9 million (5.9%)

Lending practices and portfolio strategy:

• Most new fixed-rate loans are originated for sale in the secondary market; adjustable-rate mortgages are generally retained in portfolio
• Adjustable-rate mortgages represented 92.1% of the residential mortgage portfolio as of 6/30/2026
• Typical lien recording on real estate; common loan-to-value ratios around 80% or less, with higher LTV permitted for owner-occupied loans under defined conditions
• Construction loans typically have an 80% LTV and a construction period of one year or less
• Credit risk monitoring includes annual financial statements for larger multi-family and commercial borrowers
• Delinquency management includes initial contact at 15 days past due and foreclosure consideration at 90 days if no workout plan is in place

Funding and liquidity

• Deposit funding primarily from local market residents; brokered deposits totaled about $29.6 million (as of 6/30/2026)
• Borrowings from FHLB-Cincinnati supplement funds and support withdrawal demands
• Liquidity (as of 6/30/2026): $27.4 million in cash and equivalents available
• Off-balance-sheet liquidity sources totaled $89.4 million, including $76.1 million of additional FHLB borrowing capacity

Financial position (as of 6/30/2026)

• Consolidated assets: $362.4 million
• Deposits: $260.8 million
• Stockholders’ equity: $50.3 million
• Total loans: approximately $343.8 million (aggregate of loan categories)
• Bank premises and equipment (net): approximately $4.1 million
• Employees: 57 full-time and 2 part-time
• Servicing: First Federal of Kentucky serviced about $36.7 million of loans for FHLB-Cincinnati

Bank-owned life insurance

• First Federal of Kentucky holds bank-owned life insurance policies with a cash value of about $3.1 million (as of 6/30/2026) to offset non-salary benefit plan costs; policies are with highly rated carriers and treated as bank assets

Regulation and capital

• Primary regulator: OCC; also subject to FDIC oversight and a member of FHLB-Cincinnati
• Community Reinvestment Act ratings: satisfactory
• Capital levels exceed regulatory minimums
• In 2024, First Federal of Kentucky entered into an OCC agreement related to capital and risk management; that agreement was terminated on February 19, 2026
• The holding company elected the Community Bank Leverage Ratio (CBLR) framework for capitalization under applicable rules
• As a savings institution holding company, Kentucky First and First Federal MHC are subject to Federal Reserve Board oversight and source-of-strength obligations

Dividends

• Dividend policy has varied due to regulatory constraints and mutual holding company considerations
• On July 28, 2026, the company announced a resumption of cash dividends and declared a dividend of $0.05 per share payable September 21, 2026
• Future dividend payments remain subject to regulatory approvals and member votes where applicable

Revenue and income

• Net interest income increased by approximately $2.8 million from 6/30/2025 to 6/30/2026, driven by higher interest income and lower interest expense
• Non-interest income for the year ended 6/30/2026: $629,000, an increase of $129,000 (25.8%) versus the prior year
• Mortgage banking activities generate non-interest income through origination fees, servicing and gains on sales of loans; servicing rights and related income are part of the reported results

Summary

Kentucky First Federal Bancorp is a community-focused holding company operating two savings banks across seven offices in Kentucky. The company concentrates on residential and real-estate-related lending, with a high proportion of adjustable-rate mortgages in the portfolio. Funding is primarily local deposits supplemented by brokered deposits and FHLB borrowings. As of June 30, 2026, the company reported $362.4 million in assets, $260.8 million in deposits, $50.3 million in equity, and maintained liquidity and capital positions consistent with its regulatory framework.