Kentucky First Federal Bancorp Reports Earnings

Rhea-AI Summary

Kentucky First Federal Bancorp (Nasdaq: KFFB) reported net income of $304,000 (diluted EPS $0.04) for the quarter ended Dec 31, 2025, versus $13,000 a year earlier. Net interest income rose 30.3% to $2.7M, driven by higher loan yields and lower funding costs.

Six-month net earnings were $648,000 (EPS $0.08). Total assets were $375.3M, book value per share $6.07, and FHLB advances increased to $51.4M.

Positive

• Net income $304,000 for Q2 (Dec 31, 2025), up from $13,000
• Net interest income +30.3% to $2.7M quarter-over-quarter
• Six-month net earnings $648,000 and diluted EPS $0.08
• Total assets increased to $375.3M at Dec 31, 2025
• Book value per share reported at $6.07

Negative

• Non-interest expense rose 10.0% to $2.4M for the quarter
• Data processing costs increased sharply by 110.3% quarter-over-quarter
• FHLB advances increased 20.3% to $51.4M, indicating higher reliance on wholesale funding
• Deposits decreased 1.6% to $273.2M, partially due to estate account distributions

Key Figures

Quarter net income: $304,000 Quarter EPS: $0.04 diluted EPS Prior-year quarter income: $13,000 +5 more

8 metrics

Quarter net income $304,000 Three months ended December 31, 2025

Quarter EPS $0.04 diluted EPS Three months ended December 31, 2025

Prior-year quarter income $13,000 Three months ended December 31, 2024

Six-month net earnings $648,000 Six months ended December 31, 2025

Six-month prior result $2,000 net loss Six months ended December 31, 2024

Quarter net interest income $2.7 million Three months ended December 31, 2025

Total assets $375.3 million As of December 31, 2025

Book value per share $6.07 As of December 31, 2025

Market Reality Check

Price: $4.87 Vol: Volume 2,141 is below the...

low vol

$4.87 Last Close

Volume Volume 2,141 is below the 20-day average of 3,378 (relative volume 0.63x). low

Technical Trading at $4.68, which is above the 200-day MA of $3.48 and 5.8% below the 52-week high of $4.97.

Peers on Argus

KFFB slipped 0.69% while peers showed mixed moves: BAFN rose 5.98%, ASRV fell 6....

KFFB slipped 0.69% while peers showed mixed moves: BAFN rose 5.98%, ASRV fell 6.51%, and OPHC was nearly flat at +0.19%. With no clear directional consensus across at least two peers, the move appears stock-specific rather than sector-driven.

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 income and noninterest income.
Oct 08	Management change	Positive	+1.0%	Leadership transition intended to support profitability and strategic initiatives.
Sep 19	Fiscal year results	Positive	+1.2%	Full-year swing from prior loss driven by higher net interest income.

Pattern Detected

Recent earnings and operational updates have been positive, with stock reactions modestly positive or flat, suggesting restrained but constructive responses to improving fundamentals.

Recent Company History

Over the last few quarters, Kentucky First Federal Bancorp has steadily shifted from losses to profitability. The company reported improved quarterly results on Nov. 6, 2025, highlighted by higher net interest income and better asset yields, following a fiscal 2025 turnaround disclosed on Sept. 19, 2025. A management transition announced on Oct. 8, 2025 aimed to support strategic and profitability goals. Today’s earnings continue that trend of incremental improvement, building on prior gains in net interest income and asset quality while the bank operates under ongoing regulatory oversight.

Market Pulse Summary

This announcement underscores continued earnings momentum, with quarterly net income of $304,000, si...

Analysis

This announcement underscores continued earnings momentum, with quarterly net income of $304,000, six‑month earnings of $648,000, and book value per share of $6.07. Net interest income growth and higher asset yields are key drivers, while noninterest expenses, particularly data processing and outside services, are rising. Historical filings highlight an OCC agreement and specific capital requirements, so investors may focus on sustained profitability, expense control, capital ratios, and progress addressing regulatory expectations when evaluating future updates.

Key Terms

basis points, adjustable rate mortgages, provision for loan losses, accumulated other comprehensive loss, +1 more

5 terms

basis points financial

"average rate earned on interest-earning assets, which increased 48 basis points to 5.76%"

Basis points are a way to measure small changes in interest rates or percentages, where one basis point equals 0.01%. For example, if a loan's interest rate increases by 50 basis points, it's gone up by 0.50%. They help people understand tiny differences in rates that can add up over time, making financial comparisons clearer.

adjustable rate mortgages financial

"new loan production carrying higher interest rates and adjustable rate mortgages continuing to reprice"

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.

provision for loan losses financial

"decreased provision for loan losses, and which was partially offset by increased provision"

An allowance banks and lenders record as an expense to cover loans they expect borrowers may not repay; think of it as money set aside like a household emergency fund for possible unpaid bills. It matters to investors because larger provisions reduce reported profit and can signal rising credit stress or conservative accounting, while smaller provisions can boost earnings but may hide future losses, affecting a lender’s health and capital position.

accumulated other comprehensive loss financial

"as well as accumulated other comprehensive loss decreasing $84,000 at December 31, 2025"

Accumulated other comprehensive loss is the running negative total of certain gains and losses that companies record outside their regular profit-and-loss statement, such as changes in the value of some investments, pension adjustments, or currency translation effects. It matters to investors because it reduces shareholders’ equity and reveals economic swings that haven’t affected reported net income yet — like a side ledger showing pending ups and downs that could influence future cash flow or balance-sheet strength.

Forward-Looking Statements regulatory

"Forward-Looking Statements This press release may contain statements that are forward-looking"

Forward-looking statements are predictions or plans that companies share about what they expect to happen in the future, like estimating sales or profits. They matter because they help investors understand a company's outlook, but since they are based on guesses and assumptions, they can sometimes be wrong.

AI-generated analysis. Not financial advice.

HAZARD, Ky. and FRANKFORT, Ky. and DANVILLE, Ky. and LANCASTER, Ky., Feb. 10, 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 $304,000 or $0.04 diluted earnings per share for the three months ended December 31, 2025, compared to net income of $13,000 or $0.00 diluted earnings per share for the three months ended December 31, 2024, an increase of $291,000. Net earnings were $648,000 or $0.08 diluted earnings per share for the six months ended December 31, 2025 compared to a net loss of $2,000 or $(0.00) diluted earnings per share for the six months ended December 31, 2024, an increase of $650,000.

The increase in net earnings for the quarter ended December 31, 2025 was primarily attributable to higher net interest income. Net interest income increased $618,000 or 30.3% to $2.7 million due to increased interest income and decreased interest expense from period to period. Interest income increased $392,000 or 8.2% to $5.2 million, while interest expense decreased $226,000 or 8.2% to $2.5 million for the recently-ended quarter.

Interest income increased for the comparable quarterly periods due to an increase in the average rate earned on interest-earning assets, which increased 48 basis points to 5.76%. Average interest-earning assets decreased $2.8 million or 0.8% to $359.5 million for the recently-ended quarterly period. The average rate earned on assets was due primarily to an increase in the rate earned on loans, which was the result of 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 a decrease in the average balance of interest-bearing liabilities as well as a decrease in the average rate paid on those funds. Average interest-bearing liabilities decreased $2.9 million or 0.9% to $308.2 million for the quarterly period just ended, while the average rate paid decreased 26 basis points to 3.27% for the period.

Non-interest income increased $7,000 or 4.1% and totaled $178,000 for the three months ended December 31, 2025.

Non-interest expense increased $220,000 or 10.0% to $2.4 million for the three months ended December 31, 2025 primarily due to data processing expense increasing $118,000 or 110.3%. Employee compensation and benefits also increased $100,000 or 8.3%. Outside service fees increased $79,000 or 51.0% for the three months ended December 31, 2025, compared to December 31, 2024. This was slightly offset by professional fees decreasing $57,000 or 31.5% in the same period.

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

Net interest income increased $1.3 million or 32.1% to $5.2 million due to increased interest income and decreased interest expense from period to period. Interest income increased $825,000 or 8.8% to $10.2 million, while interest expense decreased $428,000 or 7.8% to $5.1 million for the recently-ended semi-annual period. Non-interest income increased $23,000 or 7.5% year over year primarily due to increased net gains on sales of loans, while provision for loan loss decreased $5,000 or 33.3% to $10,000 for the six months ended December 31, 2025. Non-interest expense increased $412,000 or 9.8% to $4.6 million for the six months ended December 31, 2025, due primarily to data processing expense increasing $180,000 or 66.4%. Employee compensation and benefits also increased $119,000 or 5.0%. Outside service fees increased $169,000 or 75.1% for the six months ended December 31, 2025 compared to December 31, 2024. This was slightly offset by professional fees decreasing $81,000 or 35.4% in the same period. Income tax expense increased $219,000 as a result of higher pre-tax earnings.

At December 31, 2025, assets totaled $375.3 million, an increase of $4.1 million or 1.1%, from $371.2 million at June 30, 2025, due primarily to an increase in loans, net, of $2.6 million or 0.8%, as well as an increase in investment securities of $1.4 million or 14.2%. Cash and cash equivalents totaled $19.7 million, an increase of $192,000 or 1.0% compared to June 30, 2025. Total liabilities increased $3.3 million or 1.0% to $326.2 million at December 31, 2025. FHLB advances increased $8.7 million or 20.3% to $51.4 million to fund the growth in assets. Deposits decreased $4.4 million or 1.6% to $273.2 million primarily related to a decrease in savings accounts associated with distributions of funds in administration of various estate accounts.

At December 31, 2025, the Company reported its book value per share as $6.07. Shareholders’ equity increased $732,000 or 1.5% to $49.1 million at December 31, 2025 compared to June 30, 2025. The increase in shareholders’ equity was primarily associated with net earnings during the period, as well as accumulated other comprehensive loss decreasing $84,000 at December 31, 2025 compared to June 30, 2025. Unrealized losses on our investment portfolio continued to decrease during the recently-ended 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 ability to fully and timely address the deficiencies that resulted in the Agreement that First Federal Savings Bank of Kentucky has entered into with the Office of the Comptroller of the Currency (“OCC”); First Federal Savings Bank of Kentucky’s ability to satisfy the Individual Minimum Capital Requirements imposed by the OCC; 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 the regulatory approvals necessary for the Company’s and First Federal Savings Bank of Kentucky’s management transition and the success of our restructured management team following the receipt of such regulatory approvals; 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 December 31, 2025, 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)										December 31,					June 30,
											2025 (Unaudited)				2025
ASSETS
Cash and cash equivalents									$		19,672			$	19,480
Investment Securities											11,337				9,928
Loans available-for sale											623				877
Loans, net											329,829				327,248
Other Assets											13,817				13,678
Total Assets									$		375,278			$	371,211
LIABILITIES AND SHAREHOLDERS' EQUITY
Deposits									$		273,194			$	277,563
FHLB Advances											51,448				42,760
Other Liabilities											1,535				2,519
Total liabilities											326,177				322,842
Shareholders' Equity											49,101				48,369
Total liabilities and shareholders' equity									$		375,278			$	371,211
Book value per share									$		6.07			$	5.98
Tangible book value per share									$		6.07			$	5.98
Condensed Consolidated Statements of Income (Loss)
(In thousands, except share data)
	Six months ended December 31,								Three months ended December 31,
		2025 (Unaudited)				2024					2025 (Unaudited)				2024
Interest Income	$	10,228			$	9,403			$		5,176			$	4,784
Interest Expense		5,068				5,496					2,520				2,746
Net Interest Income		5,160				3,907					2,656				2,038
Provision for Credit Losses		10				15					10				-
Non-interest Income		331				308					178				171
Non-interest Expense		4,627				4,215					2,423				2,203
Income (Loss) Before Income Taxes		854				(15	)				401				6
Income Taxes (Benefits)		206				(13	)				97				(7	)
Net Income (Loss)	$	648			$	(2	)		$		304			$	13
Earnings per share:
Basic and Diluted	$	0.08			$	(0.00	)		$		0.04			$	0.00
Weighted average outstanding shares:
Basic and Diluted		8,098,715				8,098,715					8,098,715				8,098,715

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

FAQ

What were Kentucky First Federal Bancorp (KFFB) earnings for the quarter ended Dec 31, 2025?

Kentucky First Federal reported $304,000 net income for the quarter, or $0.04 diluted EPS. According to the company, stronger net interest income and lower interest expense drove the quarterly improvement versus the prior year period.

How did KFFB's net interest income change for the quarter ended Dec 31, 2025?

Net interest income increased 30.3% to $2.7 million for the quarter. According to the company, higher loan yields and a 48 basis-point rise in average earning asset rates were primary contributors.

What balance-sheet changes did KFFB report at Dec 31, 2025?

Total assets were $375.3M and shareholders' equity was $49.1M at Dec 31, 2025. According to the company, loans and investment securities increased while deposits declined modestly.

Why did KFFB's non-interest expense rise in the quarter ended Dec 31, 2025?

Non-interest expense rose 10.0% to $2.4 million, largely from higher data processing and personnel costs. According to the company, data processing expense increased significantly and employee compensation also grew.

Did Kentucky First Federal Bancorp report any changes in funding or deposit trends on Dec 31, 2025?

The company reported deposits fell 1.6% to $273.2 million and FHLB advances rose to $51.4 million. According to the company, advances funded asset growth while some savings balances declined due to estate distributions.