Kentucky First Federal Bancorp Reports Earnings

Kentucky First Federal Bancorp (Nasdaq: KFFB) reported net income of $680,000, or $0.08 diluted EPS, for the quarter ended June 30, 2026, up from $176,000, or $0.02, a year earlier.

Rhea-AI Summary

Kentucky First Federal Bancorp (Nasdaq: KFFB) reported net income of $680,000, or $0.08 diluted EPS, for the quarter ended June 30, 2026, up from $176,000, or $0.02, a year earlier. For the twelve months, net income rose to $1.9 million, or $0.24 diluted EPS, versus $181,000, or $0.02, in the prior year.

Quarterly net interest income increased 33.9% to $3.1 million, driven by a higher average yield on interest-earning assets and lower interest expense, partly offset by a higher loan loss provision. Non-interest income grew, FDIC premiums declined, and non-interest expense dipped slightly for the quarter. At June 30, 2026, assets were $362.4 million, deposits $260.8 million, Federal Home Loan Bank advances $48.6 million, and shareholders equity $50.3 million, with book value per share of $6.22.

Positive

• Quarter net income rose to $680,000 vs $176,000 year over year
• Twelve-month net income increased to $1.9 million vs $181,000
• Quarterly net interest income up 33.9% to $3.1 million
• Interest expense decreased to $2.2 million from $2.7 million quarterly
• Non-interest income quarterly up 43.2% to $159,000, led by loan sale gains
• Book value per share increased to $6.22 from $5.98

Negative

• Provision for credit losses rose to $237,000 from $39,000 annually
• Quarterly provision increased to $186,000 from $3, reflecting higher credit costs
• Non-interest expense for twelve months rose 5.1% to $9.0 million
• Data processing expense increased $344,000, up 51.0% year over year
• Total assets declined 2.4% to $362.4 million
• Deposits fell 6.0% to $260.8 million, including a 32.6% drop in brokered deposits
• FHLB advances increased 13.6% to $48.6 million

Argus Aug 7 session

-1.25% close to close Open Argus

Details

News Market Reaction – KFFB

On Aug 7, the day this news came out, KFFB closed 1.25% below the previous close.

Data tracked by StockTitan Argus for the Aug 7 session.

Key Figures

Quarterly net income: $680,000 Quarterly diluted EPS: $0.08 Twelve-month net earnings: $1.9 million +5 more

Quarterly net income

$680,000

Three months ended June 30, 2026, vs. $176,000 in 2025

Quarterly diluted EPS

$0.08

Three months ended June 30, 2026, vs. $0.02 in 2025

Twelve-month net earnings

$1.9 million

Twelve months ended June 30, 2026, vs. $181,000 in 2025

Twelve-month diluted EPS

$0.24

Twelve months ended June 30, 2026, vs. $0.02 in 2025

Quarterly net interest income

$3.1 million

Increased 33.9% for the quarter ended June 30, 2026

Provision for loan losses

$183,000

Increase for the quarter ended June 30, 2026

Total assets

$362.4 million

At June 30, 2026, down 2.4% year over year

Deposits

$260.8 million

At June 30, 2026, down 6.0% year over year

Historical Context

5 past events · Latest: Jul 28

5 events

1. Jul 28

   quarterly dividend

   24h Move

   -0.2%

   Board declared a $0.05 quarterly cash dividend after MHC dividend waiver.

2. May 29

   dividend consideration

   24h Move

   +4.7%

   Board scheduled a meeting to consider resuming quarterly dividend payments.

3. May 11

   quarterly earnings

   24h Move

   +7.4%

   Quarterly profit increased substantially, driven by higher net interest income.

4. Feb 19

   regulatory termination

   24h Move

   -1.5%

   OCC terminated the formal written agreement with the bank.

5. Feb 10

   quarterly earnings

   24h Move

   -1.6%

   Quarterly earnings improved, but the stock declined after the earnings announcement.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Key Terms

net interest income, adjustable rate mortgages, brokered deposits, foreclosure

4 terms

net interest income financial

"Net interest income increased $780,000 or 33.9% to $3.1 million"

Net interest income is the difference between the interest a financial institution earns on loans and investments and the interest it pays on deposits and borrowings. It matters to investors because it is a primary source of profit for banks and similar firms — like the gross margin on a store’s trade — and changes with loan growth, deposit costs and interest rates, so it signals core earning power and sensitivity to rate moves.

adjustable rate mortgages financial

"adjustable rate mortgages continuing to reprice upward"

A mortgage with an interest rate that can change over time instead of staying fixed for the life of the loan. Think of it like a thermostat that regularly adjusts with room temperature: payments can go up or down as general interest rates move. Investors watch adjustable-rate mortgages because shifting payments affect homeowners’ ability to pay, the value of mortgage-backed securities, bank earnings and overall housing demand.

brokered deposits financial

"primarily due to brokered deposits decreasing $14.3 million"

Brokered deposits are large sums of customer cash placed at a bank through a third-party intermediary that shops around for the best interest rate, like a broker assembling a big bucket of savings and directing it to a bank. They matter to investors because they can quickly change a bank’s funding level and cost — providing fast liquidity but also adding volatility and regulatory scrutiny that can affect a bank’s stability and profitability.

foreclosure financial

"estimated loss on foreclosure of a residential real estate loan"

A foreclosure is a legal process in which a lender takes ownership of a property after the borrower fails to repay a mortgage, similar to a repossession of a car when payments stop. It matters to investors because foreclosures reduce the value of mortgage loans, can flood local housing markets with low-priced supply, and signal credit stress that affects banks, real estate funds and mortgage-backed securities.

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HAZARD, Ky. and FRANKFORT, Ky. and DANVILLE, Ky. and LANCASTER, Ky., Aug. 07, 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 net income of $680,000 or $0.08 diluted earnings per share for the three months ended June 30, 2026, compared to net income of $176,000 or $0.02 diluted earnings per share for the three months ended June 30, 2025, an increase of $504,000. Net earnings were $1.9 million or $0.24 diluted earnings per share for the twelve months ended June 30, 2026 compared to net earnings of $181,000 or $0.02 diluted earnings per share for the twelve months ended June 30, 2025, an increase of $1.7 million.

The increase in net earnings for the quarter ended June 30, 2026 was primarily attributable to higher net interest income.  Net interest income increased $780,000 or 33.9% to $3.1 million due to increased interest income and decreased interest expense from period to period.  Interest income increased $319,000 or 6.4% to $5.3 million, while interest expense decreased $461,000 or 17.2% to $2.2 million for the recently-ended quarter. Somewhat offsetting the higher net interest income was an increase in provision for losses on loans of $183,000, which was partially in response to estimated loss on foreclosure of a residential real estate loan and partially the result of management’s decision that an increase in the company’s overall provision for loan loss was prudent at the time due to overall upward repricing of loans, which may place pressure on borrowers, inflation in the marketplace, a slight downturn in real estate prices in our markets, and overall uncertainty in the economy.

Interest income increased for the comparable quarterly periods due to an increase in the average rate earned on interest-earning assets, which increased 62 basis points to 5.90%. An increase in the average rate earned on assets is responsible for the increase in interest income, as average interest-earning assets decreased $7.2 million or 2.0% to $360.1 million for the recently-ended quarterly period. The increase in average rate earned on assets was primarily related to an increase in the rate earned on loans, which resulted from new loan production carrying higher interest rates and adjustable rate mortgages continuing to reprice upward. Interest expense decreased for the comparable quarterly periods due to decreases in both the average balance of interest-bearing liabilities and decrease in the average rate paid on those funds. Average interest-bearing liabilities decreased $10.5 million or 3.3% to $306.1 million for the quarterly period just ended, while the average rate paid decreased 52 basis points to 2.91% for the period.

Non-interest income increased $48,000 or 43.2% and totaled $159,000 for the three months ended June 30, 2026, chiefly due to an increase in net gain on sale of loans, which increased $42,000 or 107.7% compared to the quarterly period ended June 30, 2025.

Non-interest expense decreased $12,000 or 0.6% to $2.2 million for the three months ended June 30, 2026, primarily due to a decrease in FDIC insurance premiums, which decreased $34,000 or 59.6%. The Company benefited from lower FDIC insurance premiums that followed the previously announced termination by the Office of the Comptroller of the Currency of its formal written agreement with the Company’s indirect wholly owned subsidiary First Federal Savings Bank of Kentucky.  Management anticipates current FDIC insurance rates to remain stable.

The increase in net earnings on a twelve-month basis was primarily attributable to increased net interest income and higher non-interest income, which were partially offset by increased non-interest expense, increased provision for credit losses on loans, and higher income tax expense.

Net interest income increased $2.8 million or 33.2% to $11.1 million due to increased interest income and decreased interest expense from period to period.  Interest income increased $1.6 million, or 8.1% to $20.8 million, while interest expense decreased $1.2 million or 11.2% to $9.7 million for the recently-ended twelve month period.  Non-interest income increased $129,000 or 25.8% year over year primarily due to increased net gains on sales of loans.

Income tax expense increased $538,000 as a result of higher pre-tax earnings, while non-interest expense increased $435,000 or 5.1% to $9.0 million for the twelve months ended June 30, 2026, due primarily to increases in data processing expense and employee compensation and benefits. Data processing expense increased $344,000 or 51.0% year over year due to increased rates, additional expenses associated with servicing, and a change in provider for certain services. Employee compensation and benefits increased $221,000 or 4.6%, as a result of normal salary increases and additional executive and deposit development staff. Provision for loan loss increased $198,000 to $237,000 during the period due largely to items referenced above for the quarterly period.

At June 30, 2026, assets totaled $362.4 million, a decrease of $8.8 million or 2.4%, from $371.2 million at June 30, 2025, due primarily to a decrease in loans of $7.5 million or 2.3%, which totaled $320.6 million at June 30, 2026. Cash and cash equivalents also decreased $3.0 million or 15.4% year over year. Investment securities increased $1.1 million or 11.2% due to purchases made in the year.  Total liabilities decreased $10.7 million or 3.3% to $312.1 million at June 30, 2026. Deposits decreased $16.7 million or 6.0% to $260.8 million primarily due to brokered deposits decreasing $14.3 million or 32.6%. Federal Home Loan Bank advances increased $5.8 million or 13.6% to $48.6 million. 

At June 30, 2026, the Company reported its book value per share as $6.22.  Shareholders’ equity increased $1.9 million or 4.0% to $50.3 million at June 30, 2026 compared to June 30, 2025, which was primarily associated with net earnings during the period.

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.” Forward-looking statements include statements of our goals, intentions and expectations; statements regarding our business plans, prospects, growth and operating strategies; statements regarding the quality of our loan and investment portfolios; and estimates of our risks and future costs and benefits. 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 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 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 June 30, 2026, the Company had approximately 8,086,715 shares outstanding of which approximately 58.5% was held by First Federal MHC.

SUMMARY OF FINANCIAL HIGHLIGHTS
Condensed Consolidated Balance Sheets
(In thousands, except share data)								June 30,				June 30,
									2026 (Unaudited)			2025
ASSETS
Cash and cash equivalents							$		16,485		$	19,480
Investment Securities									11,040			9,928
Loans available-for sale									1,185			877
Loans, net									319,428			327,248
Real estate acquired through foreclosure									79			-
Other Assets									14,181			13,678
Total Assets							$		362,398		$	371,211
LIABILITIES AND SHAREHOLDERS' EQUITY
Deposits							$		260,832		$	277,563
FHLB Advances									48,592			42,760
Other Liabilities									2,680			2,519
Total liabilities									312,104			322,842
Shareholders' Equity									50,294			48,369
Total liabilities and shareholders' equity							$		362,398		$	371,211
Book value per share							$		6.22		$	5.98
Tangible book value per share							$		6.22		$	5.98
Condensed Consolidated Statements of Income
(In thousands, except share data)
	Twelve months ended June 30,						Three months ended June 30,
		2026 (Unaudited)			2025				2026 (Unaudited)			2025
Interest Income	$	20,792		$	19,237		$		5,307		$	4,988
Interest Expense		9,681			10,896				2,224			2,685
Net Interest Income		11,111			8,341				3,083			2,303
Provision for Credit Losses		237			39				186			3
Non-interest Income		629			500				159			111
Non-interest Expense		8,999			8,564				2,161			2,173
Income Before Income Taxes		2,504			238				895			238
Income Taxes		595			57				215			62
Net Income	$	1,909		$	181		$		680		$	176
Earnings per share:
Basic and Diluted	$	0.24		$	0.02		$		0.08		$	0.02
Weighted average outstanding shares:
Basic and Diluted		8,086,715			8,086,715				8,086,715			8,086,715

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

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

How much did Kentucky First Federal Bancorp (KFFB) earn in the quarter ended June 30, 2026?

Kentucky First Federal Bancorp reported quarterly net income of $680,000, or $0.08 diluted EPS. According to Kentucky First Federal Bancorp, this compares with $176,000, or $0.02 diluted EPS, for the same quarter in 2025, reflecting significantly higher net interest income.

What were Kentucky First Federal Bancorp (KFFB) full-year 2026 earnings compared with 2025?

For the twelve months ended June 30, 2026, KFFB earned $1.9 million, or $0.24 diluted EPS. According to Kentucky First Federal Bancorp, this was up from $181,000, or $0.02 diluted EPS, in the prior year, driven mainly by higher net interest income and non-interest income.

What drove the improvement in Kentucky First Federal Bancorp (KFFB) net interest income in 2026?

Net interest income rose as yields on interest-earning assets increased and interest expense declined. According to Kentucky First Federal Bancorp, the average rate on interest-earning assets increased to 5.90%, while average interest-bearing liabilities and their average rate both decreased, boosting the net interest margin.

How did Kentucky First Federal Bancorp (KFFB) deposits and funding change by June 30, 2026?

Deposits declined to $260.8 million, down 6.0% year over year, mainly from lower brokered deposits. According to Kentucky First Federal Bancorp, brokered deposits fell $14.3 million, while Federal Home Loan Bank advances increased $5.8 million to $48.6 million, altering the funding mix.

What was Kentucky First Federal Bancorp (KFFB) book value per share at June 30, 2026?

Book value per share at June 30, 2026 was $6.22, with tangible book value the same. According to Kentucky First Federal Bancorp, shareholders equity increased $1.9 million to $50.3 million over the year, primarily due to net earnings, supporting the higher book value per share.

How did asset and loan balances change for Kentucky First Federal Bancorp (KFFB) in 2026?

Total assets decreased to $362.4 million, a 2.4% decline from June 30, 2025. According to Kentucky First Federal Bancorp, net loans fell $7.8 million to $319.4 million, while investment securities increased $1.1 million, and cash and cash equivalents declined $3.0 million.

Why did Kentucky First Federal Bancorp (KFFB) increase its provision for loan losses in 2026?

The provision increased mainly due to an estimated loss on a residential foreclosure and broader economic considerations. According to Kentucky First Federal Bancorp, management cited upward loan repricing, inflation, softening real estate prices in its markets, and general economic uncertainty as reasons to strengthen loan loss reserves.