UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)

☒ QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended December 31, 2025

☐ TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE EXCHANGE ACT

For the transition period from ____________ to _______________

Commission File Number: 0-51176

KENTUCKY FIRST FEDERAL BANCORP

(Exact name of registrant as specified in its charter)

United States of America		61-1484858
(State or other jurisdiction of incorporation or organization)		(I.R.S. Employer Identification No.)

655 Main Street, Hazard, Kentucky 41702

(Address of principal executive offices)(Zip Code)

(502) 223-1638

(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class		Trading symbol(s)		Name of each exchange on which registered
Common Stock, $0.01 par value per share		KFFB		The NASDAQ Stock Market LLC

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports) and (2) has been subject to such filing requirements for the past 90 days: Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (Section 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See the definition of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer	☐	Accelerated filer	☐
Non-Accelerated filer	☒	Smaller Reporting Company	☒
		Emerging Growth Company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date: At February 13, 2026, the latest practicable date, the Corporation had 8,086,715 shares of $.01 par value common stock outstanding (including 4,727,938 shares held by First Federal MHC).

INDEX

		Page
PART I FINANCIAL INFORMATION		1

ITEM 1 FINANCIAL STATEMENTS		1

Condensed Consolidated Balance Sheets		1

Condensed Consolidated Statements of Operations		2

Condensed Consolidated Statements of Comprehensive Income (Loss)		3

Consolidated Statements of Changes in Shareholders’ Equity		4

Condensed Consolidated Statements of Cash Flows		6

Notes to Condensed Consolidated Financial Statements		8

ITEM 2 Management’s Discussion and Analysis of Financial Condition and Results of Operations		31

ITEM 3 Quantitative and Qualitative Disclosures About Market Risk		41

ITEM 4 Controls and Procedures		41

PART II OTHER INFORMATION		42

SIGNATURES		44

PART I – FINANCIAL INFORMATION

ITEM 1: Financial Statements

Kentucky First Federal Bancorp

CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands, except share data)

	December 31, 2025			June 30, 2025
	Unaudited
ASSETS
Cash and due from financial institutions	$	2,326		$	2,342
Fed funds sold		3,266			8,577
Interest-bearing demand deposits		14,080			8,561
Cash and cash equivalents		19,672			19,480
Securities available-for-sale, at fair value		11,185			9,757

Securities held-to-maturity, at amortized cost-approximate fair value of $151 and $167 at December 31, 2025 and June 30, 2025, respectively		152			171
Loans held for sale		623			877
Loans, net of allowance for credit losses of $2,176 and $2,170 at December 31, 2025 and June 30, 2025, respectively		329,829			327,248
Office premises and equipment - at depreciated cost		4,184			4,211
Federal Home Loan Bank stock - at cost		3,805			3,980
Accrued interest receivable		1,469			1,438
Bank-owned life insurance		3,045			3,001
Prepaid income taxes		99			-
Prepaid expenses and other assets		1,215			1,048
Total assets	$	375,278		$	371,211
LIABILITIES AND SHAREHOLDERS’ EQUITY
Savings	$	43,496		$	48,616
Certificates of deposit		199,452			199,575
Demand deposit accounts		30,246			29,372
Deposits		273,194			277,563
Federal Home Loan Bank advances		51,448			42,760
Advances by borrowers for taxes and insurance		255			869
Accrued interest payable		510			949
Accrued income tax		-			63
Deferred income taxes		122			30
Other liabilities		648			608
Total liabilities		326,177			322,842

Shareholders’ equity
Preferred stock, 500,000 shares authorized, $.01 par value; no shares issued		-			-
Common stock, 20,000,000 shares authorized, $.01 par value; 8,596,064 shares issued		86			86
Additional paid-in capital		34,891			34,891
Retained earnings - restricted		18,154			17,506
Treasury shares at cost, 509,349 common shares at December 31, 2025 and June 30, 2025, respectively		(3,969	)		(3,969	)
Accumulated other comprehensive loss		(61	)		(145	)
Total shareholders’ equity		49,101			48,369
Total liabilities and shareholders’ equity	$	375,278		$	371,211

See accompanying notes to condensed consolidated financial statements.

Kentucky First Federal Bancorp

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)

(Dollars in thousands, except per share data)

	Six months ended December 31,					Three months ended December 31,
	2025		2024			2025		2024
Interest income
Loans, including fees	$	9,579	$	8,702		$	4,884	$	4,437
Mortgage-backed securities		205		157			107		76
Interest-bearing deposits and other		444		544			185		271
Total interest income		10,228		9,403			5,176		4,784

Interest expense
Interest-bearing demand deposits		55		18			25		9
Savings		98		100			49		50
Certificates of deposit		3,933		3,812			1,943		1,936
Deposits		4,086		3,930			2,017		1,995
Borrowings		982		1,566			503		751
Total 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		-
Net interest income after provision for credit losses		5,150		3,892			2,646		2,038

Non-interest income
Earnings on bank-owned life insurance		44		43			22		22
Net gain on sales of loans		166		141			101		81
Net gain on sales of real estate owned		-		5			-		5
Other		121		119			55		63
Total non-interest income		331		308			178		171

Non-interest expense
Employee compensation and benefits		2,515		2,396			1,311		1,211
Data processing		451		271			225		107
Occupancy and equipment		270		273			134		136
FDIC insurance premiums		140		138			79		75
Voice and data communications		66		66			33		32
Advertising		99		91			56		49
Outside service fees		394		225			234		155
Auditing and accounting		191		167			96		86
Regulatory assessments		46		46			23		23
Foreclosure and real estate owned expenses, net		45		41			19		19
Franchise and other taxes		71		70			40		42
Legal Fees		148		229			124		181
Other		191		202			49		87
Total non-interest expense		4,627		4,215			2,423		2,203

Income (loss) before income taxes		854		(15	)		401		6

Income tax expense (benefit)		206		(13	)		97		(7	)

NET INCOME (LOSS)	$	648	$	(2	)	$	304	$	13
EARNINGS (LOSS) PER SHARE
Basic and diluted	$	0.08	$	(0.00	)	$	0.04	$	0.00
DIVIDENDS PER SHARE	$	0.00	$	0.00		$	0.00	$	0.00

See accompanying notes to condensed consolidated financial statements.

Kentucky First Federal Bancorp

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

(Unaudited)

(In thousands)

	Six months ended December 31,					Three months ended December 31,
	2025		2024			2025		2024
Net income (loss)	$	648	$	(2	)	$	304	$	13

Other comprehensive income (loss), net of tax:
Unrealized holding gains (losses) on securities designated as available-for-sale, net of taxes of $28, $20, $6 and $(60) during the respective periods		84		60			18		(181	)
Comprehensive income (loss)	$	732	$	58		$	322	$	(168	)

See accompanying notes to condensed consolidated financial statements.

Kentucky First Federal Bancorp

CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY

For the six months ended

(Unaudited)

(Dollar amounts in thousands, except per share data)

December 31, 2025

	Common stock		Additional paid-in capital		Retained earnings		Treasury shares			Accumulated other comprehensive loss			Total
Balance at June 30, 2025	$	86	$	34,891	$	17,506	$	(3,969	)	$	(145	)	$	48,369
Net income		–		–		648		–			–			648
Other comprehensive income, net of tax		–		–		–		–			84			84
Balance at December 31, 2025	$	86	$	34,891	$	18,154	$	(3,969	)	$	(61	)	$	49,101

December 31, 2024

	Common stock		Additional paid-in capital		Retained earnings			Treasury shares			Accumulated other comprehensive loss			Total
Balance at June 30, 2024	$	86	$	34,891	$	17,325		$	(3,969	)	$	(336	)	$	47,997
Net loss		–		–		(2	)		–			–			(2	)
Other comprehensive income, net of tax		–		–		–			–			60			60
Balance at December 31, 2024	$	86	$	34,891	$	17,323		$	(3,969	)	$	(276	)	$	48,055

See accompanying notes to condensed consolidated financial statements.

Kentucky First Federal Bancorp

CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY

For the three months ended

(Unaudited)

(Dollar amounts in thousands, except per share data)

December 31, 2025

	Common stock		Additional paid-in capital		Retained earnings		Treasury shares			Accumulated other comprehensive loss			Total
Balance at September 30, 2025	$	86	$	34,891	$	17,850	$	(3,969	)	$	(79	)	$	48,779
Net income		–		–		304		–			–			304
Other comprehensive income, net of tax		–		–		–		–			18			18
Balance at December 31, 2025	$	86	$	34,891	$	18,154	$	(3,969	)	$	(61	)	$	49,101

December 31, 2024

	Common stock		Additional paid-in capital		Retained earnings		Treasury shares			Accumulated other comprehensive loss			Total
Balance at September 30, 2024	$	86	$	34,891	$	17,310	$	(3,969	)	$	(95	)	$	48,223
Net income		–		–		13		–			–			13
Other comprehensive loss, net of tax		–		–		–		–			(181	)		(181	)
Balance at December 31, 2024	$	86	$	34,891	$	17,323	$	(3,969	)	$	(276	)	$	48,055

See accompanying notes to condensed consolidated financial statements.

Kentucky First Federal Bancorp

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

(In thousands)

	Six months ended December 31,
	2025			2024
Cash flows from operating activities:
Net income (loss)	$	648		$	(2	)
Adjustments to reconcile net income (loss) to net cash from operating activities
Depreciation		96			103
Amortization of deferred loan origination fees, net		(99	)		(13	)
Amortization of premiums on investment securities		(23	)		(10	)
Net gain on sale of loans		(166	)		(141	)
Earnings on bank-owned life insurance		(44	)		(43	)
Provision for credit losses		10			15
Origination of loans held for sale		(5,836	)		(3,656	)
Proceeds from loans held for sale		6,256			3,791
Deferred Income Taxes		63			30
Accrued Income Tax		(162	)		-
Increase (decrease) in cash, due to changes in:
Accrued interest receivable		(31	)		(95	)
Prepaid expenses and other assets		(166	)		(52	)
Accrued interest payable		(439	)		302
Other liabilities		40			(189	)
Net cash provided by operating activities		147			40

Cash flows from investing activities:
Purchase of securities available for sale		(2,405	)		-
Securities maturities, prepayments and calls:
Held-to-maturity		17			22
Available-for-sale		1,114			1,111
Proceeds from redemption of FHLB stock		617			133
Purchase of FHLB stock		(442	)		(342	)
Loans originated for investment, net of principal collected		(2,492	)		2,791
Additions to premises and equipment, net		(69	)		(83	)
Net cash provided by (used in) investing activities		(3,660	)		3,632

Cash flows from financing activities:
Net change in deposits		(4,369	)		6,916
Payments by borrowers for taxes and insurance, net		(614	)		(703	)
Proceeds from Federal Home Loan Bank advances		27,102			14,446
Repayments on Federal Home Loan Bank advances		(18,414	)		(21,642	)
Net cash provided by (used in) financing activities		3,705			(983	)

Net increase in cash and cash equivalents		192			2,689

Beginning cash and cash equivalents		19,480			18,287

Ending cash and cash equivalents	$	19,672		$	20,976

See accompanying notes to condensed consolidated financial statements.

Kentucky First Federal Bancorp

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (CONTINUED)

(Unaudited)

(In thousands)

	Six months ended December 31,
	2025		2024
Supplemental disclosure of cash flow information:

Cash paid during the period for:

Income taxes	$	305	$	-

Interest on deposits and borrowings	$	5,068	$	5,194

See accompanying notes to condensed consolidated financial statements.

Kentucky First Federal Bancorp

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2025

(unaudited)

The Kentucky First Federal Bancorp (“Kentucky First” or the “Company”) was incorporated under federal law in March 2005 and is the mid-tier holding company for First Federal Savings and Loan Association of Hazard, Hazard, Kentucky (“First Federal of Hazard”) and Frankfort First Bancorp, Inc. (“Frankfort First”). Frankfort First is the holding company for First Federal Savings Bank of Kentucky, Frankfort, Kentucky (“First Federal of Kentucky”). First Federal of Hazard and First Federal of Kentucky (hereinafter collectively the “Banks”) are Kentucky First’s primary operations, which consist of operating the Banks as two independent, community-oriented savings institutions.

Note 1. Basis of Presentation

The accompanying unaudited condensed consolidated financial statements, which represent the condensed consolidated balance sheets and results of operations of the Company, were prepared in accordance with the instructions for Form 10-Q and, therefore, do not include information or footnotes necessary for a complete presentation of financial position, results of operations and cash flows in conformity with U.S. generally accepted accounting principles. However, in the opinion of management, all adjustments (consisting of only normal recurring adjustments) which are necessary for a fair presentation of the condensed consolidated financial statements have been included. The results of operations for the six-month period ended December 31, 2025, are not necessarily indicative of the results which may be expected for an entire fiscal year. The condensed consolidated balance sheet as of June 30, 2025, has been derived from the audited consolidated balance sheet as of that date. Certain information and note disclosures normally included in the Company’s annual financial statements prepared in accordance with U.S. generally accepted accounting principles have been condensed or omitted. These condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in the Company’s Form 10-K annual report for 2025 filed with the Securities and Exchange Commission on September 30, 2025.

Principles of Consolidation - The consolidated financial statements include the accounts of the Company, Frankfort First, and its wholly-owned banking subsidiaries, First Federal of Hazard and First Federal of Kentucky (collectively hereinafter “the Banks”). All intercompany transactions and balances have been eliminated in consolidation. The Company is a majority-owned subsidiary of First Federal MHC. The accounts of First Federal MHC are not consolidated in the accompanying consolidated financial statements of the Company.

Critical Accounting Policies and Estimates

Investments – Management determines the classification of debt securities at purchase as held-to-maturity, trading, or available-for-sale. Held-to-maturity securities are those we have both the intent and ability to hold to maturity and are reported at amortized cost. Securities that are not considered held-to-maturity are considered either trading or available-for-sale securities in accordance with Financial Accounting Standards Board Accounting Standards Codification (“ASC”) 320, Investments – Debt Securities, and are reported at fair value in the statement of financial position. We have no trading securities. The adjustment to fair value for available-for-sale securities for unrealized gains and losses is included as a separate component of shareholders’ equity, net of tax.

Loans – Loans for which we have the ability and intent to hold until maturity and/or payoff are reported at the carrying value of the unpaid principal reduced by unearned interest, an allowance for credit losses and unamortized deferred fees and costs and premiums. Interest income is accrued on a level yield basis. In circumstances where management believes that collection of interest income is uncollectible on specific loans, after considering economic and business conditions, collateral value and collection efforts, interest accrual is discontinued. Interest income may be recognized on the cash basis when received unless a determination has been made by management to apply all of the payment against principal.

Kentucky First Federal Bancorp

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

December 31, 2025

(unaudited)

Note 1. Basis of Presentation (continued)

Critical Accounting Policies and Estimates (continued)

Allowance for Credit Losses – We account for the allowance for credit losses (ACL) under ASC 326, Measurement of Credit Losses on Financial Instruments, which is commonly known as CECL. We measure expected credit losses of financial assets on a weighted average remaining maturity (WARM) basis.

We maintain an ACL at a level that is appropriate to cover estimated credit losses on individually evaluated loans, as well as estimated credit losses inherent in the estimated life of the loan portfolio. Credit losses are charged to and recoveries are credited to the ACL.

Loans with similar risk characteristics are evaluated on a collective basis within homogeneous loan pools under ASC 326. Our homogeneous loan pools are primarily determined by loan purpose and collateral type. Pools include residential real estate (composed of one-to-four-family, multi-family, and construction), land, farm, nonresidential real estate, commercial and industrial, and consumer loans (composed of Loans on deposit, home equity, automobile, and unsecured). Credits that are nonaccrual status are subject to individual evaluation.

Historical loss rates for loans are adjusted for significant factors that, in management’s judgment, reflect the impact of any current conditions on loss recognition. Qualitative factors used to derive our ACL include delinquency trends, current economic conditions and trends, strength of supervision and administration of the loan portfolio, levels of underperforming loans, trends in loan losses and underwriting exceptions. Reasonable and supportable economic forecasts that may offset collectibility are also included as factors in our ACL model. Management continually reevaluates the other subjective factors included in its ACL analysis.

Income Taxes – Income tax expense is based on the taxes due on the consolidated tax return plus deferred taxes on the expected future tax benefits and consequences of temporary differences between carrying amounts and tax bases of assets and liabilities, using enacted tax rates.

Recently Issued Accounting Pronouncements Not Yet Effective

In October 2023, the Financial Accounting Standards Board (FASB) issued ASU 2023-06 Disclosure Improvements - Codification Amendments in Response to the SEC’s Disclosure Update and Simplification Initiative (ASU 2023-06). The amendments in this ASU are the result of FASB’s decision to incorporate into the Accounting Standards Codification certain disclosure requirements, referred by the SEC, for incremental information to US GAAP. Topics in the ASU that have applicability to the Company are (1) Statement of Cash Flows which requires an accounting policy disclosure in annual periods of where cash flows associated with derivative instruments and their related gains and losses are presented in the statement of cash flows, (2) Debt which requires disclosure of amounts and terms of unused lines of credit and unfunded commitments and the weighted-average interest rate on outstanding short-term borrowings, and (3) Derivatives and Hedging which adds cross-reference to disclosure requirements related to where cash flows associated with derivative instruments and their related gains and losses are presented in the statement of cash flows.

Kentucky First Federal Bancorp

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

December 31, 2025

(unaudited)

Note 1. Basis of Presentation (continued)

Recently Issued Accounting Pronouncements Not Yet Effective (continued)

The effective date for each amendment will be the date on which the SEC’s removal of that related disclosure from Regulation S-X or Regulation S-K becomes effective, with early adoption prohibited. If by June 30, 2027- the SEC has not removed the applicable requirement from Regulation S-X or Regulation S-K, the pending content of the related amendment will be removed from the Accounting Standards Codification and will not become effective for any entity. Management is reviewing the provisions of ASU 2023-06, and does not expect the adoption of the ASU to have a material effect on the Company’s financial statements.

In November 2024, FASB issued ASU 2024-03 Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (Subtopic 220-40). The amendments in this update require disclosure, in the notes to financial statements, of specified information about certain costs and expenses. The amendments require that at each interim and annual reporting period (1) the Company disclose the amounts of (a) employee compensation, (b) depreciation, and (c) intangible asset amortization included in each relevant expense caption presented on the face of the income statement within continuing operations that contains any of the expense categories listed; (2) include certain amounts that are already required to be disclosed under current generally accepted accounting principles in the same disclosure as the other disaggregation requirements; (3) disclose a qualitative description of the amounts remaining in relevant expense captions that are not separately disaggregated quantitatively; (4) disclose the total amount of selling expenses and, in annual reporting periods, the Company’s definition of selling expenses. The amendments in this update are effective for annual reporting periods beginning after December 15, 2026, and interim reporting periods beginning after December 15, 2027. Early adoption is permitted. The amendments in this update should be applied either (1) prospectively to financial statements issued for reporting periods after the effective date of this update or (2) retrospectively to any or all prior periods presented in the financial statements. Management is currently evaluating the update and does not expect adoption of the update to have a material effect on the Company’s financial position or results of operations.

Accounting Pronouncements Adopted in Fiscal Year 2025

In November 2023, FASB issued ASU 2023-07 Segment Reporting (ASU 2023-07). The amendments in ASU 2023-07 apply to all public entities that are required to report segment information in accordance with FASB ASC Topic 280, Segment Reporting. The amendments in ASU 2023-07 are intended to improve reportable segment disclosure requirements primarily through requiring enhanced disclosures about significant segment expenses. The amendments require that a public entity disclose, on an annual and interim basis, significant segment expenses that are regularly provided to the Chief Operating Decision Maker (“CODM”) and included within each reported measure of segment profit or loss. Public entities are required to disclose, on an annual and interim basis, an amount for other segment items by reportable segment and a description of its composition. In addition, public entities must provide all annual disclosures about a reportable segment’s profit or loss and assets currently required by FASB ASC Topic 280, Segment Reporting in interim periods. The amendments clarify that if the CODM uses more than one measure of a segment’s profit or loss in assessing segment performance and deciding how to allocate resources, a public entity may report one or more of those additional measures of segment profit. However, at least one of the reported segment profit or loss measures (or the single reported measure, if only one is disclosed) should be the measure that is most consistent with the measurement principles used in measuring the corresponding amounts in the public entity’s consolidated financial statements. The amendments require that a public entity disclose the title and position of the CODM and an explanation of how the CODM uses the reported measure(s) of segment profit or loss in assessing segment performance and deciding how to allocate resources. Finally, the amendments require that a public entity that has a single reportable segment provide all the disclosures required by the amendments in ASU 2023-07 and all existing segment disclosures in ASC Topic 280. ASU 2023-07 is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. A public entity that adopts ASU 2023-07 is required to apply the amendments retrospectively to all prior periods presented in the financial statements. Upon adoption of ASU 2023-07, the segment expense categories and amounts disclosed in the prior periods should be based on the significant segment expense categories identified and disclosed in the period of adoption. The Company adopted ASU 2023-07 on January 1, 2025 with little impact as currently the Company’s financial service operations are aggregated into one reportable operating segment.

In December 2023, FASB issued ASU No. 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures (ASU 2023-09). FASB issued ASU 2023-09 to address investor requests for more transparency about income tax information through improvements to income tax disclosures primarily related to the rate reconciliation and income taxes paid information. ASU 2023-09 is to be applied on a prospective basis and became effective for annual periods beginning after December 15, 2024. ASU 2023-09 impacts income tax disclosures, and did not have a material impact to the Company’s consolidated financial statements.

Kentucky First Federal Bancorp

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

December 31, 2025

(unaudited)

Note 1. Basis of Presentation (continued)

Accounting Pronouncements Adopted in Fiscal Year 2025 (continued)

In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures. The amendments in this update require annual and interim disclosures on significant segment expenses that are regularly provided to the chief operating decision maker and require annual and interim disclosures on “other segment items”, where the other segment items category is the difference between segment revenue less segment expense compared to the reported measure of segment profit or loss. In addition, the amendments require all annual disclosures that are currently required to be reported on an interim basis and require the disclosure of the title and position of the chief operating decision maker and how that position uses the information to assess segment performance and the allocation of resources. While the Company only has one reportable segment, the update requires public entities with a single segment to provide all segment disclosures under ASC 280. The guidance is effective for fiscal years beginning after December 15, 2023, and interim periods within the fiscal years beginning after December 15, 2024. The Company adopted ASU 2023-07 in the fiscal year ended June 30, 2025, and the adoption of this guidance did not have a material impact on the Company’s consolidated financial statements.

Note 2. Earnings Per Share

Diluted earnings per share is computed taking into consideration common shares outstanding and dilutive potential common shares to be issued or released under the Company’s share-based compensation plans. The factors used in the basic and diluted earnings per share computations follow:

	Six months ended December 31,					Three months ended December 31,
	2025		2024			2025		2024
Net income (loss) allocated to common shareholders, basic and diluted	$	648	$	(2	)	$	304	$	13

Earnings (loss) per share, basic and diluted	$	0.08	$	(0.00	)	$	0.04	$	0.00
Weighted average common shares outstanding, basic and diluted		8,098,715		8,098,715			8,098,715		8,098,715

There were no stock option shares outstanding for the six- or three-month periods ended December 31, 2025 and 2024.

Kentucky First Federal Bancorp

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

December 31, 2025

(unaudited)

Note 3. Investment Securities

The following table summarizes the amortized cost and fair value of securities available-for-sale and securities held-to-maturity at December 31, 2025 and June 30, 2025, the corresponding amounts of gross unrealized gains recognized in accumulated other comprehensive income and gross unrecognized gains and losses:

	December 31, 2025
(in thousands)	Amortized cost		Gross unrealized gains		Gross unrealized losses		Estimated fair value
Available-for-sale Securities
Agency mortgage-backed: residential	$	11,266	$	13	$	94	$	11,185

Held-to-maturity Securities
Agency mortgage-backed: residential	$	152	$	3	$	4	$	151

	June 30, 2025
(in thousands)	Amortized cost		Gross unrealized gains		Gross unrealized losses		Estimated fair value
Available-for-sale Securities
Agency mortgage-backed: residential	$	9,950	$	-	$	193	$	9,757

Held-to-maturity Securities
Agency mortgage-backed: residential	$	171	$	-	$	4	$	167

At December 31, 2025 and June 30, 2025 the Company’s debt securities consisted of mortgage-backed securities, which do not have a single maturity date. Actual maturities may differ from contractual maturities, because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.

There were no pledged securities for both December 31, 2025 and June 30, 2025. In addition, at both December 31, 2025 and June 30, 2025, there were no pledged overnight deposits.

We evaluated securities in unrealized loss positions for evidence of credit loss, considering duration, severity, financial condition of the issuer, our intention to sell or requirement to sell. Those securities were agency mortgage-backed securities, which carry a very limited amount of risk. Also, we have no intention to sell nor believe that we will be compelled to sell such securities before maturity. Based on our evaluation, no reserve for credit loss was considered necessary. Debt securities in an unrealized loss position as a percent of total debt securities were 65.3% and 88.8% at December 31, 2025 and June 30, 2025, respectively. The following table provides the amortized cost, gross unrealized losses, fair value, and length of time the individual securities have been in a continuous unrealized loss position as of December 31, 2025.

December 31, 2025

Available-for-Sale

(in thousands)	Amortized Cost		Gross Unrealized Losses		Fair Value
Less Than 12 Months
Agency mortgage-backed securities	$	945	$	2	$	943
12 Months or More
Agency mortgage-backed securities		6,422		92		6,330
Total	$	7,367	$	94	$	7,273

Kentucky First Federal Bancorp

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

December 31, 2025

(unaudited)

Note 3. Investment Securities (continued)

Held to Maturity

(in thousands)	Amortized Cost		Gross Unrealized losses		Fair Value
Less Than 12 Months
Agency mortgage-backed securities	$	-	$	-	$	-
12 Months or More
Agency mortgage-backed securities		93		4		89
Total	$	93	$	4	$	89

June 30, 2025

Available-for-Sale

(in thousands)	Amortized Cost		Gross Unrealized Losses		Fair Value
Less Than 12 Months
Agency mortgage-backed securities	$	2,000	$	20	$	1,980
12 Months or More
Agency mortgage-backed securities		6,700	$	173	$	6,527
Total temporarily impaired AFS securities	$	8,700	$	193	$	8,507

Held to Maturity

(in thousands)	Amortized Cost		Gross Unrealized Losses		Fair Value
Less Than 12 Months
Agency mortgage-backed securities	$	-	$	-	$	-
12 Months or More
Agency mortgage-backed securities		171		4		167
Total temporarily impaired HTM securities	$	171	$	4	$	167

Note 4. Loans receivable

Loans that management has the intent and ability to hold for the foreseeable future or until maturity or payoff are reported at the principal amount outstanding, adjusted for deferred loan origination costs, net, discounts on purchased loans, and the allowance for credit losses. Interest income is accrued on the unpaid principal balance unless the collectability of the loan is in doubt. Loan origination fees, net of certain direct origination costs, are deferred and recognized in interest income using the level-yield method without anticipating prepayments. Interest income on one-to-four-family residential loans is generally discontinued at the time a loan is 180 days delinquent and on other loans at the time a loan is 90 days delinquent. All other loans are moved to non-accrual status in accordance with the Company’s policy, typically 90 days after the loan becomes delinquent. Past due status is based on the contractual terms of the loan. In all cases, loans are placed on nonaccrual or charged-off at an earlier date if collection of principal or interest is considered doubtful. Nonaccrual loans and loans past due 90 days still on accrual include both smaller balance homogeneous loans that are collectively evaluated for impairment and individually classified impaired loans.

Kentucky First Federal Bancorp

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

December 31, 2025

(unaudited)

Note 4. Loans receivable (continued)

All interest accrued but not received for loans placed on nonaccrual is reversed against interest income. Interest received on such loans is accounted for on the cash-basis or cost-recovery method, until qualifying for return to accrual. Loans are returned to accrual status when all the principal and interest amounts contractually due are brought current and future payments are reasonably assured.

The composition of the loan portfolio was as follows:

	December 31,			June 30,
(in thousands)	2025			2025
Residential real estate
One- to four-family	$	250,748		$	251,338
Multi-family		14,975			15,505
Construction		10,704			9,314
Land		1,920			1,508
Farm		2,595			3,023
Nonresidential real estate		32,744			31,698
Commercial and industrial		790			691
Consumer and other:
Loans on deposits		594			813
Home equity		16,270			14,643
Automobile		151			134
Unsecured		514			751
		332,005			329,418
Allowance for credit losses		(2,176	)		(2,170	)
	$	329,829		$	327,248

The amounts above include net deferred loan costs of $101,000 and $144,000 as of December 31, 2025 and June 30, 2025, respectively.

Kentucky First Federal Bancorp

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

December 31, 2025

(unaudited)

Note 4. Loans receivable (continued)

The allowance for credit losses is a valuation allowance that is deducted from the loans’ amortized cost basis to present the net amount expected to be collected for the loans. Loan losses are charged off against the allowance when management believes the uncollectability of a loan balance is confirmed. Subsequent recoveries, if any, are credited to the allowance.

Management estimates the allowance balance required using relevant available information, from internal and external sources, relating to past events, current conditions and reasonable and supportable forecasts. Historical credit loss experience, derived from the Company’s data, provides the basis for estimation of expected credit losses, although management also compares the Company’s data with peer group data. Adjustments to historical loss information may be made for differences in: lending policy, procedures and practice; economic conditions; the nature and volume of the loan portfolio; volume delinquent and problem loans; the current and anticipated economic conditions in the primary lending area; and other external factors. Allocations of the allowance may be made for specific loans, but the entire allowance is available for any loan that, in management’s judgment, should be charged off.

Loans that do not share risk characteristics are evaluated on an individual basis. Loans evaluated individually are not included in the pool evaluation. When management determines that foreclosure is probable or when the borrower is experiencing financial difficulty at the reporting date and repayment is expected to be provided substantially through the sale of the collateral, the expected credit losses are based on the fair value of the collateral at the reporting date, less any discounts and selling costs.

Management monitors loan performance on a monthly basis and performs a quarterly evaluation of the adequacy of the ACL. The Banks begin enhanced monitoring of all loans rated 5-Watch or worse and obtain a new appraisal or asset valuation for most loans placed on nonaccrual status. New appraisals are usually not obtained on loans with outstanding principal amounts of $50,000 or less. Management, at its discretion, may determine that additional adjustments to the appraisal or valuation are required. Valuation adjustments will be made as necessary based on factors, including, but not limited to: the economy, deferred maintenance, industry, type of collateral, age of the appraisal, etc., and the knowledge Management has about a particular situation. In addition, the cost to sell or liquidate the collateral is also estimated and deducted from the valuation in order to determine the net realizable value to the Banks. When determining the ACL, certain factors involved in the evaluation are inherently subjective and require material estimates that may be susceptible to significant change, including the amounts and timing of future cash flows. Management monitors the adequacy of the ACL on an ongoing basis and reports its adequacy quarterly to the Board of Directors. Management believes the ACL at December 31, 2025 is adequate.

Kentucky First Federal Bancorp

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

December 31, 2025

(unaudited)

Note 4. Loans receivable (continued)

Expected credit losses are estimated over the contractual term of the loans, adjusted for expected prepayments, when appropriate. The contractual term excludes expected extensions, renewals, and modifications unless either of the following applies: management has a reasonable expectation at the reporting date that a modification will be executed with an individual borrower or the extension or renewal options are included in the original or modified contract at the reporting date and are not unconditionally cancellable by the Banks.

The Banks categorize loans into risk categories based on relevant information about the ability of borrowers to service their debt such as: current financial information, historical payment experience, credit documentation, and current economic trends, among other factors. Management utilizes a risk rating scale ranging from 1-Highest Pass to 9-Loss to evaluate loan quality. Consumer purpose loans are identified as either performing or nonperforming based on the payment status of the loans. Nonperforming consumer loans are loans that are nonaccrual or 90 days or more past due and still accruing.

Our portfolio segments include residential real estate, nonresidential real estate, farm, land, commercial and industrial, and consumer and other loans. Risk factors associated with our portfolio segments are as follows:

Residential Real Estate

Our primary lending activity is the origination of mortgage loans, which enable a borrower to purchase or refinance existing homes in the Banks’ respective market areas. We further classify our residential real estate loans as one-to-four-family (owner-occupied vs nonowner-occupied), multi-family or construction. We believe that our first mortgage position on loans secured by residential real estate presents lower risk than our other loans, with the exception of loans secured by deposits.

We offer a mix of adjustable-rate and fixed-rate mortgage loans with terms up to 30 years for owner-occupied properties. For these properties a borrower may be able to borrow up to 97% of the value with private mortgage insurance. Alternatively, the borrower may be able to borrow up to 90% of the value through other programs offered by the bank.

We offer loans on one-to-four-family rental properties at a maximum of 80% loan-to-value (“LTV”) ratio and we generally charge a slightly higher interest rate on such loans.

We also originate loans to individuals to finance the construction of residential dwellings for personal use or for use as rental property. We occasionally lend to builders for construction of speculative or custom residential properties for resale, but on a limited basis. Construction loans are generally less than one year in length, do not exceed 80% of the appraised value, and provide for the payment of interest only during the construction phase. Funds are disbursed as progress is made toward completion of the construction.

Multi-family Loans

We offer mortgage loans secured by residential multi-family (five or more units). Generally, these loans are originated for 25 years or less and do not exceed 80% of the appraised value. Loans secured by multi-family generally have larger balances and involve a greater degree of risk than one-to-four-family residential mortgage loans. These loans depend on the borrower’s creditworthiness and the feasibility and cash flow potential of the project. Payments on loans secured by income properties often depend on successful operation and management of the properties. As a result, repayment on such loans may be subject to a greater extent to adverse conditions in the real estate market or economy than owner-occupied residential loans.

Kentucky First Federal Bancorp

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

December 31, 2025

(unaudited)

Note 4. Loans receivable (continued)

Nonresidential Loans

We offer mortgage loans secured by nonresidential real estate comprised generally of commercial office buildings, churches and properties used for other purposes. Generally, these loans are originated for 25 years or less and do not exceed 80% of the appraised value. As with multi-family loans, commercial real estate loans generally have larger balances and involve a greater degree of risk than one-to-four-family residential mortgage loans and these loans depend on the borrower’s creditworthiness, as well as the feasibility and cash flow potential of the project. Payments on loans secured by nonresidential properties often depend on successful operation and management of the properties. As a result, repayment on such loans may be subject to a greater extent to adverse conditions in the real estate market or economy than owner-occupied residential loans.

Consumer lending

Our consumer loans include home equity lines of credit, loans secured by savings deposits, automobile loans, and unsecured loans. Home equity loans are generally second mortgage loans subordinate only to first mortgages also held by the bank and do not exceed 80% of the estimated value of the property. We do offer home equity loans up to 90% of the estimated value to qualified borrowers and these loans carry a premium interest rate. Loans secured by savings are originated up to 90% of the depositor’s savings account balance and bear interest at a rate higher than the rate paid on the deposit account. Because the deposit account must be pledged as collateral to secure the loan, the inherent risk of this type of loan is minimal. Loans secured by automobiles are made directly to consumers (there are no relationships with dealers) and are based on the value of the vehicle and the borrower’s creditworthiness. Vehicle loans present a higher level of risk because of the natural decline in the value of the property as well as its mobility. Unsecured loans are based entirely on the borrower’s creditworthiness and present the highest level of risk to the bank.

Impaired loans

The Banks choose the most appropriate method for accounting for impaired loans. For secured loans, which make up the vast majority of the loans in the Banks’ portfolio, this method involves determining the fair value of the collateral, reduced by estimated selling costs. Where appropriate, the Banks would account for impaired loans by determining the present value of expected future cash flows discounted at the loan’s effective interest rate.

A loan is considered impaired when, based on current information and events, it is probable that a creditor will be unable to collect all amounts due according to the contractual terms of the loan agreement. Although most of our loans are secured by collateral, we rely heavily on the capacity of our borrowers to generate sufficient cash flow to service their debt. As a result, our loans do not become collateral-dependent until there is deterioration in the borrower’s cash flow and financial condition, which makes it necessary for us to look to the collateral for our sole source of repayment. Collateral-dependent loans which are more than ninety days delinquent are considered to constitute more than a minimum delay in repayment and are evaluated for impairment under the policy at that time.

We utilize updated independent appraisals to determine fair value for collateral-dependent loans, adjusted for estimated selling costs, in determining our specific reserve. In some situations, management does not secure an updated independent appraisal. These situations may involve small loan amounts or loans that, in management’s opinion, have an abnormally low loan-to-value ratio.

Kentucky First Federal Bancorp

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

December 31, 2025

(unaudited)

Note 4. Loans receivable (continued)

The following table presents the activity in the ACL by portfolio segment for the six months ended December 31, 2025.

December 31, 2025:

(in thousands)	Balance at September 30, 2025		Provision for (recovery of) credit losses on loans			Loans charged off			Recoveries		Credit Losses for Unfunded Liabilities		Ending balance
Residential real estate:
One-to-four-family	$	1,690	$	(52	)	$	(4	)	$	-	$	-	$	1,634
Multi-family		86		9			-			-		-		95
Construction		70		37			-			-		-		107
Land		24		-			-			-		-		24
Farm		16		(1	)		-			-		-		15
Nonresidential real estate		230		13			-			-		-		243
Commercial and industrial		7		(3	)		-			-		-		4
Consumer and other:
Loans on deposits		-		-			-			-		-		-
Home equity		36		8			-			-		-		44
Automobile		1		-			-			-		-		1
Unsecured		10		(1	)		-			-		-		9
	$	2,170	$	10		$	(4	)	$	-	$	-	$	2,176

The following table presents the activity in the ACL by portfolio segment for the six months ended December 31, 2024:

December 31, 2024:

(in thousands)	Balance at June 30, 2024		Provision for (recovery of) credit losses on loans			Loans charged off		Recoveries		Credit Losses for Unfunded Liabilities			Ending balance
Residential real estate:
One-to-four-family	$	1,661	$	(43	)	$	-	$	-	$	-		$	1,618
Multi-family		100		(2	)		-		-		-			98
Construction		122		(33	)		-		-		(2	)		87
Land		28		4			-		-		-			32
Farm		4		12			-		-		-			16
Nonresidential real estate		192		(18	)		-		-		-			174
Commercial and industrial		3		-			-		-		-			3
Consumer and other:
Home equity		14		96			-		1		-			111
Unsecured		3		(1	)		-		-		-			2
	$	2,127	$	15		$	-	$	1	$	(2	)	$	2,141

Kentucky First Federal Bancorp

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

December 31, 2025

(unaudited)

Note 4. Loans receivable (continued)

The following table presents the activity in the ACL by portfolio segment for the three months ended December 31, 2025:

December 31, 2025:

(in thousands)	Balance at September 30, 2025		Provision for (recovery of) credit losses on loans			Loans charged off		Recoveries		Credit Losses for Unfunded Liabilities		Ending balance
Residential real estate:
One-to-four-family	$	1,663	$	(29	)	$	-	$	-	$	-	$	1,634
Multi-family		95		-			-		-		-		95
Construction		84		23			-		-		-		107
Land		24		-			-		-		-		24
Farm		14		1			-		-		-		15
Nonresidential real estate		230		13			-		-		-		243
Commercial and industrial		7		(3	)		-		-		-		4
Consumer and other:
Loans on deposits		-		-			-		-		-		-
Home equity		38		6			-		-		-		44
Automobile		1		-			-		-		-		1
Unsecured		10		(1	)		-		-		-		9
	$	2,166	$	10		$	-	$	-	$	-	$	2,176

The following table presents the activity in the ACL by portfolio segment for the three months ended December 31, 2024:

December 31, 2024:

(in thousands)	Balance at September 30, 2024		Provision for (recovery of) credit losses on loans			Loans charged off		Recoveries		Credit Losses for Unfunded Liabilities		Ending balance
Residential real estate:
One-to-four-family	$	1,627	$	(9	)	$	-	$	-	$	-	$	1,618
Multi-family		97		1			-		-		-		98
Construction		119		(32	)		-		-		-		87
Land		27		5			-		-		-		32
Farm		4		12			-		-		-		16
Nonresidential real estate		199		(25	)		-		-		-		174
Commercial and industrial		3		-			-		-		-		3
Consumer and other:
Home equity		63		48			-		-		-		111
Unsecured		2		-			-		-		-		2
	$	2,141	$	-		$	-	$	-	$	-	$	2,141

Kentucky First Federal Bancorp

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

December 31, 2025

(unaudited)

Note 4. Loans receivable (continued)

The following table presents the amortized cost basis of collateral-dependent loans by portfolio class as of December 31, 2025. The recorded investment in loans excludes accrued interest receivable due to immateriality.

December 31, 2025:

(in thousands)	Amortized Cost Basis		Ending allowance on collateral- dependent loans
Loans individually evaluated for impairment:
Residential real estate:
One- to four-family	$	1,372	$	–
Nonresidential real estate		197		–
	$	1,569	$	–

Real estate stands as collateral for loans individually evaluated for impairment. Collateral on nonresidential real estate individually evaluated for impairment includes one commercial office building.

The following table presents the amortized cost basis of collateral-dependent loans by portfolio class as of June 30, 2025. The recorded investment in loans excludes accrued interest receivable due to immateriality.

June 30, 2025:

(in thousands)	Amortized Cost Basis		Ending allowance on collateral- dependent loans
Loans individually evaluated for impairment:
Residential real estate:
One- to four-family	$	1,856	$	–
Nonresidential real estate		927		–
	$	2,783	$	–

Kentucky First Federal Bancorp

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

December 31, 2025

(unaudited)

Note 4. Loans receivable (continued)

The following table presents the recorded investment in nonaccrual and loans past due over 89 days still on accrual by class of loans as of December 31, 2025, and June 30, 2025:

	December 31, 2025				June 30, 2025
(in thousands)	Nonaccrual		Loans Past Due Over 89 Days Still Accruing		Nonaccrual		Loans Past Due Over 89 Days Still Accruing
Residential real estate
One- to four-family	$	1,613	$	328	$	1,924	$	592
Construction		-		-		291		-
Nonresidential real estate		56		-		927		-
Consumer and other Automobile		53		-		-		-
Unsecured		324		-		131		-
	$	2,046	$	328	$	3,273	$	592

Nonaccrual loans had no related allowance for credit losses based on individual evaluation at December 31, 2025 or June 30, 2025.

One-to-four-family loans in process of foreclosure totaled $384,000 and $213,000 at December 31, 2025 and June 30, 2025, respectively.

There were no loans modified during the six months ended December 31, 2025 to borrowers experiencing financial difficulties.

The following table presents the aging of the principal balance outstanding in past due loans as of December 31, 2025, by class of loans:

December 31, 2025:

(in thousands)	30-59 Days Past Due		60-89 Days Past Due		90 Days or Greater		Total Past Due		Loans Not Past Due		Total
Residential real estate:
One-to-four-family	$	3,653	$	471	$	1,487	$	5,611	$	245,137	$	250,748
Multi-family		241		-		-		241		14,734		14,975
Construction		33		-		-		33		10,671		10,704
Land		-		28		-		28		1,892		1,920
Farm		-		519		-		519		2,076		2,595
Nonresidential real estate		34		-		-		34		32,710		32,744
Commercial and industrial		-		-		-		-		790		790
Consumer and other:
Loans on deposits		-		-		-		-		594		594
Home equity		-		-		-		-		16,270		16,270
Automobile		-		-		-		-		151		151
Unsecured		13		-		-		13		501		514
	$	3,974	$	1,018	$	1,487	$	6,479	$	325,526	$	332,005

Kentucky First Federal Bancorp

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

December 31, 2025

(unaudited)

Note 4. Loans receivable (continued)

The following tables present the aging of the principal balance outstanding in past due loans as of June 30, 2025, by class of loans:

June 30, 2025:

(in thousands)	30-59 Days Past Due		60-89 Days Past Due		90 Days or Greater		Total Past Due		Loans Not Past Due		Total
Residential real estate
One- to four-family	$	3,731	$	687	$	1,000	$	5,418	$	245,920	$	251,338
Multi-family		-		246		-		246		15,259		15,505
Construction		127		-		291		418		8,896		9,314
Land		-		-		-		-		1,508		1,508
Farm		-		-		-		-		3,023		3,023
Nonresidential real estate		1,704		25		-		1,729		29,969		31,698
Commercial and industrial		-		-		-		-		691		691
Consumer and other
Loans on deposits		-		-		-		-		813		813
Home equity		-		-		-		-		14,643		14,643
Automobile		-		-		-		-		134		134
Unsecured		23		-		-		23		728		751
	$	5,585	$	958	$	1,291	$	7,834	$	321,584	$	329,418

Credit Quality Indicators:

The Company categorizes loans into risk categories based on relevant information about the ability of borrowers to service their debt such as: current financial information, historical payment experience, credit documentation, public information, and current economic trends, among other factors. The Company analyzes loans individually by classifying the loans as to credit risk. This analysis is performed on an annual basis. The Company uses the following definitions for risk ratings:

Special Mention. Loans classified as special mention have a potential weakness that deserves management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or of the institution’s credit position at some future date.

Substandard. Loans classified as substandard are inadequately protected by the current net worth and paying capacity of the obligor or of the collateral pledged, if any. Loans so classified have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. They are characterized by the distinct possibility that the institution will sustain some loss if the deficiencies are not corrected.

Doubtful. Loans classified as doubtful have all the weaknesses inherent in those classified as substandard, with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions and values, highly questionable and improbable.

Kentucky First Federal Bancorp

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

December 31, 2025

(unaudited)

Note 4. Loans receivable (continued)

Loans not meeting the criteria above that are analyzed individually as part of the above-described process are considered to be pass rated loans. Loans listed that are not rated are included in groups of homogeneous loans and are evaluated for credit quality based on performing status. See the aging of past due loan table above. As of December 31, 2025, and based on the most recent analysis performed, the risk category of loans by class of loans is as follows:

(in thousands)	Term Loans Amortized Cost by Origination Fiscal Year												Revolving Loans Amortized
As of December 31, 2025	2026		2025		2024		2023		2022		Prior		Cost Basis		Total
Residential real estate:
One-to-four-family
Risk Rating:
Pass	$	18,067	$	27,148	$	29,021	$	43,976	$	38,105	$	89,220	$	-	$	245,537
Special mention		-		-		-		-		-		88		-		88
Substandard		-		356		383		598		50		3,736		-		5,123
Doubtful		-		-		-		-		-		-		-		-
Total	$	18,067	$	27,504	$	29,404	$	44,574	$	38,155	$	93,044	$	-	$	250,748

Current period gross charge offs	$	-	$	4	$	-	$	-	$	-	$	-	$	-	$	-

Multi-family
Risk Rating:
Pass	$	-	$	782	$	545	$	5,475	$	5,153	$	2,779	$	-	$	14,734
Special mention		-		-		-		-		-		241		-		241
Substandard		-		-		-		-		-		-		-		-
Doubtful		-		-		-		-		-		-		-		-
Total	$	-	$	782	$	545	$	5,475	$	5,153	$	3,020	$	-	$	14,975

Current period gross charge offs	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-

Construction
Risk Rating:
Pass	$	5,394	$	3,944	$	1,233	$	6	$	-	$	-	$	-	$	10,577
Special mention		-		-		-		-		-		-		-		-
Substandard		-		127		-		-		-		-		-		127
Doubtful		-		-		-		-		-		-		-		-
Total	$	5,394	$	4,071	$	1,233	$	6	$	-	$	-	$	-	$	10,704

Current period gross charge offs	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-

Land
Risk Rating:
Pass	$	711	$	362	$	345	$	240	$	134	$	47	$	-	$	1,839
Special mention		-		-		-		-		-		-		-		-
Substandard		25		28		28		-		-		-		-		81
Doubtful		-		-		-		-		-		-		-		-
Total	$	736	$	390	$	373	$	240	$	134	$	47	$	-	$	1,920

Current period gross charge offs	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-

Farm
Risk Rating:
Pass	$	519	$	1,575	$	-	$	-	$	208	$	293	$	-	$	2,595
Special mention		-		-		-		-		-		-		-		-
Substandard		-		-		-		-		-		-		-		-
Doubtful		-		-		-		-		-		-		-		-
Total	$	519	$	1,575	$	-	$	-	$	208	$	293	$	-	$	2,595

Current period gross charge offs	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-

Kentucky First Federal Bancorp

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

December 31, 2025

(unaudited)

Note 4. Loans receivable (continued)

													Revolving
(in thousands)	Term Loans Amortized Cost by Origination Fiscal Year												Loans Amortized
As of December 31, 2025	2026		2025		2024		2023		2022		Prior		Cost Basis		Total
Nonresidential real estate
Risk Rating:
Pass	$	6,684	$	3,384	$	3,740	$	773	$	2,380	$	14,632	$	-	$	31,593
Special mention		-		24		-		-		-		549		-		573
Substandard		-		-		-		-		381		197		-		578
Doubtful		-		-		-		-		-		-		-		-
Total	$	6,884	$	3,408	$	3,740	$	773	$	2,761	$	15,378	$	-	$	32,744

Current period gross charge offs	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-

Commercial and industrial
Risk Rating:
Pass	$	212	$	232	$	23	$	8	$	-	$	315	$	-	$	790
Special mention		-		-		-		-		-		-		-		-
Substandard		-		-		-		-		-		-		-		-
Doubtful		-		-		-		-		-		-		-		-
Total	$	212	$	232	$	23	$	8	$	-	$	315	$	-	$	790

Current period gross charge offs	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-

Share Loans
Risk Rating:
Pass	$	57	$	62	$	51	$	77	$	-	$	347	$	-	$	594
Special mention		-		-		-		-		-		-		-		-
Substandard		-		-		-		-		-		-		-		-
Doubtful		-		-		-		-		-		-		-		-
Total	$	57	$	62	$	51	$	77	$	-	$	347	$	-	$	594

Current period gross charge offs	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-

Home Equity
Risk Rating:
Pass	$	-	$	-	$	-	$	-	$	-	$	-	$	16,270	$	16,270
Special mention		-		-		-		-		-		-		-		-
Substandard		-		-		-		-		-		-		-		-
Doubtful		-		-		-		-		-		-		-		-
Total	$	-	$	-	$	-	$	-	$	-	$	-	$	16,270	$	16,270

Current period gross charge offs	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-

Auto
Risk Rating:
Pass	$	58	$	43	$	25	$	1	$	13	$	11	$	-	$	151
Special mention		-		-		-		-		-		-		-		-
Substandard		-		-		-		-		-		-		-		-
Doubtful		-		-		-		-		-		-		-		-
Total	$	58	$	43	$	25	$	1	$	13	$	11	$	-	$	151

Current period gross charge offs	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-

Unsecured
Risk Rating:
Pass	$	113	$	177	$	74	$	6	$	8	$	11	$	-	$	389
Special mention		-		-		-		-		-		-		-		-
Substandard		-		125		-		-		-		-		-		125
Doubtful		-		-		-		-		-		-		-		-
Total	$	113	$	302	$	74	$	6	$	8	$	11	$	-	$	514

Current period gross charge offs	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-

Kentucky First Federal Bancorp

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

December 31, 2025

(unaudited)

Note 4. Loans receivable (continued)

As of June 30, 2025, and based on the most recent analysis performed, the risk category of loans by class of loans is as follows:

													Revolving
(in thousands)	Term Loans Amortized Cost by Origination Fiscal Year												Loans Amortized
As of June 30, 2025	2025		2024		2023		2022		2021		Prior		Cost Basis		Total
Residential real estate:
One- to four-family
Risk Rating:
Pass	$	30,263	$	30,777	$	46,914	$	40,661	$	38,891	$	59,027	$	-	$	246,533
Special mention		-		-		-		-		-		96		-		96
Substandard		345		194		-		-		350		3,820		-		4,709
Doubtful		-		-		-		-		-		-		-		-
Total	$	30,608	$	30,971	$	46,914	$	40,661	$	39,241	$	62,943	$	-	$	251,338

Current period gross charge offs	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-

Multi-family
Risk Rating:
Pass	$	1,185	$	395	$	5,840	$	5,226	$	1,202	$	1,657	$	-	$	15,505
Special mention		-		-		-		-		-		-		-		-
Substandard		-		-		-		-		-		-		-		-
Doubtful		-		-		-		-		-		-		-		-
Total	$	1,185	$	395	$	5,840	$	5,226	$	1,202	$	1,657	$	-	$	15,505

Current period gross charge offs	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-

Construction
Risk Rating:
Pass	$	5,241	$	3,392	$	282	$	-	$	108	$	-	$	-	$	9,023
Special mention		-		-		-		-		-		-		-		-
Substandard		-		291		-		-		-		-		-		291
Doubtful		-		-		-		-		-		-		-		-
Total	$	5,241	$	3,683	$	282	$	-	$	108	$	-	$	-	$	9,314

Current period gross charge offs	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-

Land
Risk Rating:
Pass	$	355	$	581	$	288	$	207	$	49	$	-	$	-	$	1,480
Special mention		-		-		-		-		-		-		-		-
Substandard		28		-		-		-		-		-		-		28
Doubtful		-		-		-		-		-		-		-		-
Total	$	383	$	581	$	288	$	207	$	49	$	-	$	-	$	1,508

Current period gross charge offs	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-

Farm
Risk Rating:
Pass	$	2,510	$	-	$	-	$	212	$	-	$	301	$	-	$	3,023
Special mention		-		-		-		-		-		-		-		-
Substandard		-		-		-		-		-		-		-		-
Doubtful		-		-		-		-		-		-		-		-
Total	$	2,510	$	-	$	-	$	212	$	-	$	301	$	-	$	3,023

Current period gross charge offs	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-

Kentucky First Federal Bancorp

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

December 31, 2025

(unaudited)

Note 4. Loans receivable (continued)

													Revolving
(in thousands)	Term Loans Amortized Cost by Origination Fiscal Year												Loans Amortized
As of June 30, 2025	2025		2024		2023		2022		2021		Prior		Cost Basis		Total
Nonresidential real estate
Risk Rating:
Pass	$	2,662	$	7,245	$	1,169	$	2,360	$	2,822	$	13,937	$	-	$	30,195
Special mention		25		-		-		-		-		551		-		576
Substandard		-		-		722		-		-		205		-		927
Doubtful		-		-		-		-		-		-		-		-
Total	$	2,687	$	7,245	$	1,891	$	2,360	$	2,822	$	14,693	$	-	$	31,698

Current period gross charge offs	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-

Commercial and industrial
Risk Rating:
Pass	$	545	$	130	$	16	$	-	$	-	$	-	$	-	$	691
Special mention		-		-		-		-		-		-		-		-
Substandard		-		-		-		-		-		-		-		-
Doubtful		-		-		-		-		-		-		-		-
Total	$	545	$	130	$	16	$	-	$	-	$	-	$	-	$	691

Current period gross charge offs	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-

Share Loans
Risk Rating:
Pass	$	138	$	57	$	81	$	-	$	6	$	531	$	-	$	813
Special mention		-		-		-		-		-		-		-		-
Substandard		-		-		-		-		-		-		-		-
Doubtful		-		-		-		-		-		-		-		-
Total	$	138	$	57	$	81	$	-	$	6	$	531	$	-	$	813

Current period gross charge offs	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-

Home Equity
Risk Rating:
Pass	$	-	$	-	$	-	$	-	$	-	$	-	$	14,643	$	14,643
Special mention		-		-		-		-		-		-		-		-
Substandard		-		-		-		-		-		-		-		-
Doubtful		-		-		-		-		-		-		-		-
Total	$	-	$	-	$	-	$	-	$	-	$	-	$	14,643	$	14,643

Current period gross charge offs	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-

Auto
Risk Rating:
Pass	$	69	$	40	$	2	$	18	$	1	$	4	$	-	$	134
Special mention		-		-		-		-		-		-		-		-
Substandard		-

Kentucky First Federal Bancorp 10-Q