Kentucky First Federal Bancorp (KFFB) reports sharp jump in profit and higher book value
Rhea-AI Filing Summary
Kentucky First Federal Bancorp reported sharply higher earnings. For the three months ended June 30, 2026, net income was $680,000 or $0.08 diluted EPS, compared with $176,000 or $0.02 a year earlier, driven mainly by higher net interest income. Net interest income for the quarter rose 33.9% to $3.1 million as interest income increased and interest expense declined. Non-interest income also rose, while non-interest expense edged slightly lower, helped by reduced FDIC insurance premiums.
For the twelve months ended June 30, 2026, net earnings were $1.9 million or $0.24 diluted EPS versus $181,000 or $0.02 in the prior year, reflecting stronger net interest income and higher non-interest income, partly offset by increases in non-interest expense, provision for credit losses, and income taxes. At June 30, 2026, total assets were $362.4 million, deposits were $260.8 million, Federal Home Loan Bank advances were $48.6 million, and shareholders’ equity was $50.3 million, with book value per share of $6.22 based on 8,086,715 shares outstanding.
Positive
- Net income surged to $680,000 for the quarter and $1.9 million for the year, versus $176,000 and $181,000 respectively, reflecting much stronger profitability.
- Net interest income rose 33.9% for the quarter and 33.2% for the year to $3.1 million and $11.1 million, aided by higher asset yields and lower funding costs.
- Book value per share increased to $6.22 from $5.98 as shareholders’ equity grew $1.9 million, supported by improved earnings.
Negative
- Total assets declined $8.8 million, or 2.4%, year over year to $362.4 million, primarily from a $7.5 million reduction in loans.
- Deposits fell $16.7 million, or 6.0%, to $260.8 million, including a 32.6% decrease in brokered deposits.
- Provision for credit losses increased to $237,000 from $39,000, reflecting a foreclosure-related loss estimate and broader credit risk considerations.
Filing Explained
June 30 results were profitable, but deposits fell while Federal Home Loan Bank advances rose, changing the reported funding mix.
Kentucky First Federal Bancorp reports unaudited results for the twelve and three months ended
For the quarter, the stronger net interest income was partly offset by an increase in provision for losses on loans of
8-K Event Classification
2 items: 2.02, 9.01
2 items
Item 2.02
Results of Operations and Financial Condition
Financial
Disclosure of earnings results, typically an earnings press release or preliminary financials.
Item 9.01
Financial Statements and Exhibits
Exhibits
Financial statements, pro forma financial information, and exhibit attachments filed with this report.
Key Figures
Quarterly net income: $680,000
Annual net earnings: $1,909,000
Quarterly net interest income: $3,083,000
+5 more
8 metrics
Quarterly net income
$680,000
Three months ended June 30, 2026, versus $176,000 in 2025
Annual net earnings
$1,909,000
Twelve months ended June 30, 2026, versus $181,000 in 2025
Quarterly net interest income
$3,083,000
Three months ended June 30, 2026, up 33.9% from prior-year quarter
Total assets
$362,398,000
As of June 30, 2026, down from $371,211,000 at June 30, 2025
Deposits
$260,832,000
As of June 30, 2026, a 6.0% decrease year over year
Book value per share
$6.22
At June 30, 2026, compared with $5.98 at June 30, 2025
Average rate on interest-earning assets
5.90%
Quarter ended June 30, 2026, up 62 basis points year over year
Shares outstanding
8,086,715
Shares outstanding at June 30, 2026; 58.5% held by First Federal MHC
Key Terms
net interest income, provision for losses on loans, brokered deposits, Federal Home Loan Bank advances, +2 more
6 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.
provision for losses on loans financial
"Somewhat offsetting the higher net interest income was an increase in provision for losses on loans"
brokered deposits financial
"Deposits decreased $16.7 million or 6.0% to $260.8 million primarily due to brokered deposits decreasing"
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.
Federal Home Loan Bank advances financial
"Federal Home Loan Bank advances increased $5.8 million or 13.6% to $48.6 million"
Federal Home Loan Bank advances are loans that member banks and similar lenders borrow from a regional Federal Home Loan Bank, typically backed by the borrower’s assets and used for short- or long-term funding. For investors, these advances reveal how much a lender relies on wholesale borrowing to fund loans and operations—similar to watching a company tap a line of credit—and changes in advance levels or rates can signal shifts in liquidity, funding cost and balance-sheet risk.
forward-looking statements regulatory
"This press release may contain statements that are forward-looking, as that term is defined"
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.
Earnings Snapshot
Quarterly net income: $680,000
Three and twelve months ended June 30, 2026
Quarterly net income
$680,000
Up from $176,000 for the quarter ended June 30, 2025
Annual net earnings
$1,909,000
Up from $181,000 for the twelve months ended June 30, 2025
Quarterly net interest income
$3,083,000
Increased 33.9% from $2,303,000 in the prior-year quarter
Book value per share
$6.22
Up from $5.98 at June 30, 2025
AI-generated analysis. How Rhea-AI works. Not financial advice.
FAQ
How did KFFB perform financially for the quarter ended June 30, 2026?
Kentucky First Federal Bancorp reported net income of $680,000, or $0.08 diluted EPS, for the three months ended June 30, 2026, up from $176,000, or $0.02, a year earlier, mainly due to stronger net interest income and higher non-interest income.
What were KFFB’s full-year results for the twelve months ended June 30, 2026?
For the twelve months ended June 30, 2026, KFFB generated net earnings of $1.9 million, or $0.24 diluted EPS, compared with $181,000, or $0.02, in the prior year, driven by higher net interest income and increased non-interest income.
How did net interest income and margins change for KFFB (KFFB)?
Quarterly net interest income increased 33.9% to $3.1 million, as interest income rose to $5.3 million and interest expense fell to $2.2 million. The average rate earned on interest-earning assets increased 62 basis points to 5.90%, while the average rate paid on liabilities declined 52 basis points to 2.91%.
What is Kentucky First Federal Bancorp’s balance sheet size and capital position?
At June 30, 2026, KFFB reported total assets of $362.4 million, total liabilities of $312.1 million, and shareholders’ equity of $50.3 million. Book value per share was $6.22, and 8,086,715 shares were outstanding.
How did deposits and Federal Home Loan Bank advances change for KFFB?
Deposits decreased $16.7 million, or 6.0%, to $260.8 million, mainly from a $14.3 million decline in brokered deposits. Federal Home Loan Bank advances increased $5.8 million, or 13.6%, reaching $48.6 million at June 30, 2026.
What drove the increase in KFFB’s loan loss provision?
Provision for loan losses rose to $237,000 for the year and $186,000 for the quarter, influenced by an estimated loss on foreclosure of a residential loan and management’s decision to increase overall reserves amid upward loan repricing, inflation, softer real estate prices, and economic uncertainty.