Kentucky First Federal Bancorp Announces Termination of the Agreement By and Between First Federal Savings Bank of Kentucky and the OCC

Rhea-AI Summary

Kentucky First Federal Bancorp (Nasdaq: KFFB) announced on February 19, 2026 that the Office of the Comptroller of the Currency terminated the formal written agreement dated August 13, 2024 with First Federal Savings Bank of Kentucky.

With the termination the Bank is no longer in "troubled condition" under 12 C.F.R. § 5.51(c)(7)(ii), is an "eligible savings association" under 12 C.F.R. § 5.3, and the individual minimum capital requirements imposed with the Agreement will no longer be enforced, although the Bank's capital levels continue to exceed those IMCRs.

Positive

• Agreement terminated on February 19, 2026
• Original Agreement dated August 13, 2024
• Bank no longer in "troubled condition" per 12 C.F.R. § 5.51(c)(7)(ii)
• Individual minimum capital requirements (IMCRs) will no longer be enforced; capital exceeds IMCRs

Negative

• None.

News Market Reaction – KFFB

-2.03%

1 alert

-2.03% News Effect

On the day this news was published, KFFB declined 2.03%, reflecting a moderate negative market reaction.

Data tracked by StockTitan Argus on the day of publication.

Key Figures

OCC agreement date: August 13, 2024 Termination timeframe: less than 20 months Regulation citation: 12 C.F.R. § 5.51(c)(7)(ii) +1 more

4 metrics

OCC agreement date August 13, 2024 Date of OCC formal written agreement with First Federal Savings Bank of Kentucky

Termination timeframe less than 20 months Time from OCC agreement to its termination as noted by management

Regulation citation 12 C.F.R. § 5.51(c)(7)(ii) Defines “troubled condition” status referenced for the bank

Regulation citation 12 C.F.R. § 5.3 Defines “eligible savings association” status referenced for the bank

Market Reality Check

Price: $4.90 Vol: Volume 427 is well below ...

low vol

$4.90 Last Close

Volume Volume 427 is well below the 2,939 share 20-day average, indicating light pre-news trading interest. low

Technical Shares at $4.98 are near the 52-week high of $4.98 and trading above the $3.54 200-day MA.

Peers on Argus

KFFB was down 2.03% while key peers like MBBC and BAFN were modestly positive an...

KFFB was down 2.03% while key peers like MBBC and BAFN were modestly positive and others flat, suggesting a stock-specific setup rather than a sector-wide move.

Historical Context

3 past events · Latest: Nov 06 (Positive)

Pattern 3 events

Date	Event	Sentiment	Move	Catalyst
Nov 06	Quarterly earnings	Positive	+0.0%	Return to profitability with higher net interest and noninterest income.
Oct 08	Management change	Positive	+1.0%	New CEO appointment aimed at improving profitability and strategy execution.
Sep 19	Fiscal year earnings	Positive	+1.2%	Full-year swing from prior loss to positive net earnings with stronger margins.

Pattern Detected

Recent positive earnings and management news were followed by modest or flat price reactions, suggesting measured responses to improving fundamentals.

Recent Company History

Over the past several months, Kentucky First Federal Bancorp has reported improving results, including returns to profitability and stronger net interest income in late 2025. Management changes placed R. Clay Hulette in leadership roles while the company worked under an OCC agreement. Today’s announcement that the OCC has terminated that August 13, 2024 agreement, and that the bank is no longer in “troubled condition,” connects directly to those remediation efforts and prior disclosures about heightened capital requirements.

Market Pulse Summary

This announcement highlights the OCC’s termination of a formal written agreement dated August 13, 20...

Analysis

This announcement highlights the OCC’s termination of a formal written agreement dated August 13, 2024, meaning the bank is no longer in “troubled condition” and now qualifies as an “eligible savings association.” The release states the bank’s capital levels have exceeded the individual minimum capital requirements that accompanied the agreement. In the months leading up to this, regulatory filings showed a return to profitability, so investors may focus on whether earnings and asset quality continue to support this improved regulatory footing.

Key Terms

office of the comptroller of the currency, formal written agreement, troubled condition, eligible savings association, +3 more

7 terms

office of the comptroller of the currency regulatory

"announced that the Office of the Comptroller of the Currency (the “OCC”), the primary regulator"

A U.S. federal regulator that oversees and enforces rules for nationally chartered banks and federal savings associations, acting like a referee to make sure those institutions operate safely and follow banking laws. Investors care because the agency’s supervision, rule changes, or enforcement actions can affect a bank’s safety, profitability, lending ability and legal risks — all of which influence the value and stability of bank stocks and related financial assets.

formal written agreement regulatory

"it has terminated the OCC’s formal written agreement, dated August 13, 2024"

A formal written agreement is a signed document that records the commitments, responsibilities and rights that two or more parties have agreed to, and is intended to be legally enforceable. For investors it matters because it turns verbal promises into clear, verifiable duties that can affect a company’s cash flow, risks and future plans—like a recipe that everyone must follow, helping reduce uncertainty about what will actually happen.

troubled condition regulatory

"the Bank is no longer considered in “troubled condition” pursuant to 12 C.F.R. § 5.51(c)(7)(ii)"

A troubled condition is when a company is facing serious financial, regulatory, or operational problems that threaten its ability to operate normally, pay debts, or comply with rules. Like a car showing multiple warning lights, it signals higher risk: investors may see sharper price swings, trading limits, potential regulatory enforcement, restructuring, or even bankruptcy, so it changes how much risk and time horizon are appropriate for holding the stock.

eligible savings association regulatory

"and is an “eligible savings association” for purposes of 12 C.F.R. § 5.3"

An eligible savings association is a federally regulated thrift or savings bank that meets specific legal and safety standards set by regulators so it can offer certain products, services or regulatory benefits that other institutions cannot. For investors, this designation indicates a narrower, mortgage-focused business model and a level of regulatory oversight that affects risk, capital rules and what the firm is allowed to do—think of it like a license that shapes how a company must operate and how safe its deposits and assets are.

individual minimum capital requirements regulatory

"the individual minimum capital requirements (“IMCRs”) imposed concurrently with the Agreement"

Individual minimum capital requirements are the smallest amount of financial cushion a regulator requires a specific bank, insurer, or financial firm to hold against losses, set for that particular company rather than for the industry as a whole. They matter to investors because they influence a firm’s safety and ability to absorb shocks and continue paying creditors or returning cash to shareholders—like an emergency fund for a household that reduces the chance of bankruptcy but can limit short-term payouts.

12 c.f.r. § 5.51(c)(7)(ii) regulatory

"no longer considered in “troubled condition” pursuant to 12 C.F.R. § 5.51(c)(7)(ii)"

A citation to a specific clause in U.S. federal banking rules (Title 12 of the Code of Federal Regulations) that sets out a narrowly defined regulatory requirement or exception for banks. For investors, it signals a legal condition that can affect a bank’s permitted activities, approvals or reporting obligations — like a detailed rule in a manual — and can influence a bank’s risk, compliance costs, or ability to complete transactions.

12 c.f.r. § 5.3 regulatory

"is an “eligible savings association” for purposes of 12 C.F.R. § 5.3"

A federal banking regulation that sets rules for loans and credit to a bank’s insiders—its executive officers, directors and large shareholders—requiring board oversight, documentation and limits to prevent self-dealing. For investors, these rules matter because insider lending can create conflicts of interest and raise the chances of losses or weaker bank management; think of it as a guardrail that helps protect depositors and shareholders from risky favors to insiders.

AI-generated analysis. Not financial advice.

HAZARD, Ky. and FRANKFORT, Ky. and DANVILLE, Ky. and LANCASTER, Ky., Feb. 19, 2026 (GLOBE NEWSWIRE) -- Kentucky First Federal Bancorp (Nasdaq: KFFB), the holding company (the “Company”) for First Federal Savings and Loan Association of Hazard and First Federal Savings Bank of Kentucky, Frankfort, Kentucky, announced that the Office of the Comptroller of the Currency (the “OCC”), the primary regulator of First Federal Savings Bank of Kentucky, has published notification today that it has terminated the OCC’s formal written agreement, dated August 13, 2024 (the “Agreement”), with First Federal Savings Bank of Kentucky.

First Federal Savings Bank of Kentucky President and Chief Executive Officer, R. Clay Hulette, stated, “We are very pleased to have the Agreement terminated in less than 20 months. We appreciate the OCC’s timely recognition of our achievements and grateful for the hard work of our team to expeditiously address the issues raised by the Agreement.”

With the termination of the agreement, the Bank is no longer considered in “troubled condition” pursuant to 12 C.F.R. § 5.51(c)(7)(ii) and is an “eligible savings association” for purposes of 12 C.F.R. § 5.3. Further, the individual minimum capital requirements (“IMCRs”) imposed concurrently with the Agreement will no longer be enforced, although the Bank’s capital levels have exceeded, and continue to exceed, the IMCRs.

Forward-Looking Statements

This press release may contain statements that are forward-looking, as that term is defined by the Private Securities Litigation Act of 1995 or the Securities and Exchange Commission in its rules, regulations and releases. The Company intends that such forward-looking statements be subject to the safe harbors created thereby. These forward-looking statements may be identified by the use of words such as “believe,” “expect,” “anticipate,” “plan,” “estimate,” “intend” and “potential,” or words of similar meaning, or future or conditional verbs such as “should,” “could,” or “may.”

Kentucky First Federal Bancorp’s actual results, performance or achievements may materially differ from those expressed or implied in the forward-looking statements. 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 pay future dividends and if so at what level; 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 for the year ended June 30, 2025. Except as required by applicable law or regulation, the Company does not undertake the responsibility, and specifically disclaims any obligation, to release publicly the result of any revisions that may be made to any forward-looking statements to reflect events or circumstances after the date of the statements or to reflect the occurrence of anticipated or unanticipated events.

About Kentucky First Federal Bancorp

Kentucky First Federal Bancorp is the parent company of First Federal Savings and Loan Association of Hazard, which operates one banking office in Hazard, Kentucky, and First Federal Savings Bank of Kentucky, which operates three banking offices in Frankfort, Kentucky, two banking offices in Danville, Kentucky and one banking office in Lancaster, Kentucky. Kentucky First Federal Bancorp shares are traded on the Nasdaq National Market under the symbol KFFB. At December 31, 2025, the Company had approximately 8,086,715 shares outstanding of which approximately 58.5% was held by First Federal MHC.

Contact:	Don D. Jennings, President, or Tyler Eades, Vice President (502) 223-1638 216 West Main Street P.O. Box 535 Frankfort, KY 40602

FAQ

What did KFFB announce on February 19, 2026 about its agreement with the OCC?

The company announced the OCC terminated its formal written agreement with the Bank on February 19, 2026. According to the company, the Agreement dated August 13, 2024 was ended after the Bank addressed the issues raised and improved its capital position.

Does the February 2026 OCC termination mean KFFB is still "troubled" under federal rules?

No, the Bank is no longer considered "troubled" under applicable federal rules. According to the company, termination removes the troubled-condition designation under 12 C.F.R. § 5.51(c)(7)(ii), restoring its eligible savings association status under 12 C.F.R. § 5.3.

What happens to the individual minimum capital requirements for KFFB after the OCC action?

The individual minimum capital requirements imposed with the Agreement will no longer be enforced. According to the company, the Bank's capital levels have exceeded and continue to exceed those IMCRs, removing the regulatory capital constraint.

How long did it take KFFB to resolve the OCC Agreement issued in August 2024?

The company reported the Agreement was terminated in less than 20 months after issuance. According to the company, the termination reflects remedial actions and improved metrics that satisfied the OCC's requirements during that period.

What regulatory status change did KFFB gain after the OCC termination on Feb 19, 2026?

KFFB's bank affiliate regained "eligible savings association" status under federal regulation. According to the company, the change follows termination of the Agreement and removal of the troubled-condition designation under relevant C.F.R. provisions.