On this page of StockholderLetter.com we present the latest annual shareholder letter from Kentucky First Federal Bancorp — ticker symbol KFFB. Reading current and past KFFB letters to shareholders can bring important insights into the investment thesis.

KENTUCKY FIRST FEDERAL BANCORP Kentucky First Federal Bancorp ( Kentucky First Federal or the Company ) was formed under federal law in March 2005 and is the holding company for First Federal Savings and Loan Association of Hazard, Hazard, Kentucky ( First Federal of Hazard ) and First Federal Savings Bank of Kentucky, Frankfort, Kentucky ( First Federal of Kentucky ) (collectively, the Banks ). Kentucky First Federal s operations consist primarily of operating the Banks as two independent, community-oriented savings institutions. First Federal of Hazard is a federally chartered savings and loan association offering traditional financial services to consumers in Perry and surrounding counties in eastern Kentucky. First Federal of Hazard engages primarily in the business of attracting deposits from the general public and using such funds to originate, when available, loans secured by first mortgages on owner-occupied, residential real estate and, occasionally, other loans secured by real estate. To the extent there is insufficient loan demand in its market area, and where appropriate under its investment policies, First Federal of Hazard has historically invested in mortgage-backed and other securities, although since formation of the Company in 2005, First Federal of Hazard has been purchasing whole loans and participations in loans originated at First Federal of Kentucky. First Federal of Kentucky is a federally chartered savings bank which is primarily engaged in the business of attracting deposits from the general public and the origination primarily of adjustable-rate loans secured by first mortgages on owner-occupied and non-owner-occupied one-to four-family residences in Franklin, Boyle, Garrard and surrounding counties in Kentucky. First Federal of Kentucky also originates, to a lesser extent, home equity loans, loans secured by churches, multi-family properties, professional office buildings and other types of property, as well as consumer loans and commercial and industrial loans. MARKET INFORMATION The Company s common stock began trading under the symbol KFFB on the Nasdaq National Market on March 3, 2005. There are currently 8,086,715 shares of common stock outstanding and approximately 500 holders of record of the common stock. Following are the high and low closing prices, by fiscal quarter, as reported on the Nasdaq National Market during the periods indicated, as well as dividends declared on the common stock during each quarter. Fiscal 2024 First quarter Second quarter Third quarter Fourth quarter Dividends High Low Per Share 6.56 $ 4.96 $ 0.10 5.50 3.76 0.10 4.43 3.79 3.90 3.12 Fiscal 2023 First quarter Second quarter Third quarter Fourth quarter Dividends High Low Per Share 8.05 $ 7.10 $ 0.10 7.88 6.62 0.10 7.32 6.00 0.10 6.84 5.48 0.10 i
TABLE OF CONTENTS Kentucky First Federal Bancorp Market Information Letter to Shareholders Selected Consolidated Financial and Other Data Management s Discussion and Analysis of Financial Condition and Results of Operations Consolidated Financial Statements ii i i 1 3 5 30
Dear Shareholder: We are pleased to present the 2024 Annual Report for Kentucky First Federal Bancorp. We encourage you to read both the Annual Report and Proxy Statement. We encourage you to vote and, if possible, to attend our annual meeting on November 14, 2024 as we return to The Challenger Center on the campus of Hazard Community and Technical College for this year s meeting. The location is One Community College Drive in Hazard, KY. This has been a difficult year for our Company. For the year ended June 30, 2024, we experienced a net loss of $1.7 million. Please note that $947,000 of that loss was a non-cash write off due to an impairment of goodwill. This portion of the loss has no effect on the capital ratios at our subsidiary banks. But the remainder was indeed a significant loss which was primarily the result of lower net interest income. The cost of our funds increased faster than the returns on our assets, mostly loans, increased. The lower income precipitated our decision, announced on January 16, 2024, to suspend our dividend. Low income and the lack of a dividend has caused continued deterioration in our stock price. In addition, our larger subsidiary, First Federal Savings Bank of Kentucky entered into a formal agreement with its primary regulator, the Office of the Comptroller of the Currency, which will require the bank to adopt a revised strategic plan, a revised succession plan, and revised Liquidity and Interest Rate Risk management programs. Ultimately, our response to the agreement, and part of our earnings plan, for both banks, will be to reduce reliance on non-core funding. As wholesale funding sources are usually more sensitive to interest rate changes, the increased market rates in 2022 and 2023 caused our costs to escalate quickly, followed by increases to our retail deposits. Our loan portfolio is primarily made up of adjustable-rate mortgages what have adjusted or will adjust after a set fixed period, and will continue to adjust, but the speed of the increase in costs has so far outpaced the rise in returns. However, we believe that the worst of this period is over. Our net interest income has increased in the last two quarters. The 0.5% interest rate cut announced by the Federal Reserve on September 18, 2024, was welcome and will help to ease pressure on our margin. Our plan going forward will depend on an expanding margin with some deleveraging of our owner-occupied portfolio. With increasing rates on their adjustable-rate loans, we believe many borrowers will be looking to find a fixed rate option, which we hope to provide and earn fee income from selling the loan to the secondary market. Another key aspect of our plan is to continue to build our commitment and reliance on our local communities. In March, First Federal of Kentucky introduced our Hometown Banking line of consumer and business deposit products. Since, we have taken every available opportunity to promote our commitment to customer service through superior deposit products across our communities. We will continue to build our local deposit base and we would appreciate your support. In this connection, please consider our banks for your deposit needs. There have been some major personnel changes in the last year. First, our original Chief Financial Officer, Clay Hulette, who also served as Area President of First Federal of Kentucky, retired at the first of this year. Clay was instrumental in the formation of our Company and his hard work and wise counsel were of immense value. Clay has continued to serve as a director of First Federal of Kentucky and in August was appointed to the board of the Company. Clay was replaced as CFO by Tyler Eades. Also, our Secretary, Lee Ann Hockensmith, who also served as the Chief 1 1
Customer Officer at First Federal of Kentucky, left our employment in August to take a position in another industry. Jaime Coffey, President and CEO of First Federal of Hazard, was appointed to take her place as Secretary. Finally, our longtime Chairman and one-time Chief Executive Officer Tony Whitaker, retired on August 1, 2024. Tony had served the banking industry for over 50 years and developed the ideas behind the foundation of our Company. His replacement as Chairman of the Company is long-time director Walter G. Ecton Jr. and his replacement as Chair of First Federal of Hazard is director and long-time employee and CEO Lou Ella R. Farler. It has been a truly eventful year, but the commitment of our board, our management, and our staff to return to profitability and to resolve our regulatory issues has not waivered. Sincerely, 2 Don Jennings President and Chief Executive Officer 2
 • shareholder letter icon 10/17/2024 Letter Continued (Full PDF)
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KFFB Shareholder/Stockholder Letter Transcript:












KENTUCKY FIRST FEDERAL BANCORP
Kentucky First Federal Bancorp (   Kentucky First Federal    or the    Company   ) was formed under federal law
in March 2005 and is the holding company for First Federal Savings and Loan Association of Hazard, Hazard,
Kentucky (   First Federal of Hazard   ) and First Federal Savings Bank of Kentucky, Frankfort, Kentucky (   First
Federal of Kentucky   ) (collectively, the    Banks   ). Kentucky First Federal   s operations consist primarily of operating
the Banks as two independent, community-oriented savings institutions.
First Federal of Hazard is a federally chartered savings and loan association offering traditional financial
services to consumers in Perry and surrounding counties in eastern Kentucky. First Federal of Hazard engages
primarily in the business of attracting deposits from the general public and using such funds to originate, when
available, loans secured by first mortgages on owner-occupied, residential real estate and, occasionally, other loans
secured by real estate. To the extent there is insufficient loan demand in its market area, and where appropriate under
its investment policies, First Federal of Hazard has historically invested in mortgage-backed and other securities,
although since formation of the Company in 2005, First Federal of Hazard has been purchasing whole loans and
participations in loans originated at First Federal of Kentucky.
First Federal of Kentucky is a federally chartered savings bank which is primarily engaged in the business of
attracting deposits from the general public and the origination primarily of adjustable-rate loans secured by first
mortgages on owner-occupied and non-owner-occupied one-to four-family residences in Franklin, Boyle, Garrard and
surrounding counties in Kentucky. First Federal of Kentucky also originates, to a lesser extent, home equity loans,
loans secured by churches, multi-family properties, professional office buildings and other types of property, as well
as consumer loans and commercial and industrial loans.
MARKET INFORMATION
The Company   s common stock began trading under the symbol    KFFB    on the Nasdaq National Market on
March 3, 2005. There are currently 8,086,715 shares of common stock outstanding and approximately 500 holders of
record of the common stock. Following are the high and low closing prices, by fiscal quarter, as reported on the Nasdaq
National Market during the periods indicated, as well as dividends declared on the common stock during each quarter.
Fiscal 2024
First quarter
Second quarter
Third quarter
Fourth quarter
Dividends
High
Low
Per Share
6.56 $
4.96 $
0.10
5.50
3.76
0.10
4.43
3.79
3.90
3.12

Fiscal 2023
First quarter
Second quarter
Third quarter
Fourth quarter
Dividends
High
Low
Per Share
8.05 $
7.10 $
0.10
7.88
6.62
0.10
7.32
6.00
0.10
6.84
5.48
0.10
i

TABLE OF CONTENTS
Kentucky First Federal Bancorp
Market Information
Letter to Shareholders
Selected Consolidated Financial and Other Data
Management   s Discussion and Analysis of Financial Condition and Results of Operations
Consolidated Financial Statements
ii
i
i
1
3
5
30


Dear Shareholder:
We are pleased to present the 2024 Annual Report for Kentucky First Federal Bancorp. We encourage you to read
both the Annual Report and Proxy Statement. We encourage you to vote and, if possible, to attend our annual meeting
on November 14, 2024 as we return to The Challenger Center on the campus of Hazard Community and Technical
College for this year   s meeting. The location is One Community College Drive in Hazard, KY.
This has been a difficult year for our Company. For the year ended June 30, 2024, we experienced a net loss of $1.7
million. Please note that $947,000 of that loss was a non-cash write off due to an impairment of goodwill. This portion
of the loss has no effect on the capital ratios at our subsidiary banks. But the remainder was indeed a significant loss
which was primarily the result of lower net interest income. The cost of our funds increased faster than the returns on
our assets, mostly loans, increased. The lower income precipitated our decision, announced on January 16, 2024, to
suspend our dividend. Low income and the lack of a dividend has caused continued deterioration in our stock price.
In addition, our larger subsidiary, First Federal Savings Bank of Kentucky entered into a formal agreement with its
primary regulator, the Office of the Comptroller of the Currency, which will require the bank to adopt a revised
strategic plan, a revised succession plan, and revised Liquidity and Interest Rate Risk management programs.
Ultimately, our response to the agreement, and part of our earnings plan, for both banks, will be to reduce reliance on
non-core funding. As wholesale funding sources are usually more sensitive to interest rate changes, the increased
market rates in 2022 and 2023 caused our costs to escalate quickly, followed by increases to our retail deposits. Our
loan portfolio is primarily made up of adjustable-rate mortgages what have adjusted or will adjust after a set fixed
period, and will continue to adjust, but the speed of the increase in costs has so far outpaced the rise in returns.
However, we believe that the worst of this period is over. Our net interest income has increased in the last two quarters.
The 0.5% interest rate cut announced by the Federal Reserve on September 18, 2024, was welcome and will help to
ease pressure on our margin. Our plan going forward will depend on an expanding margin with some deleveraging of
our owner-occupied portfolio. With increasing rates on their adjustable-rate loans, we believe many borrowers will be
looking to find a fixed rate option, which we hope to provide and earn fee income from selling the loan to the secondary
market.
Another key aspect of our plan is to continue to build our commitment and reliance on our local communities. In
March, First Federal of Kentucky introduced our    Hometown Banking    line of consumer and business deposit
products. Since, we have taken every available opportunity to promote our commitment to customer service through
superior deposit products across our communities. We will continue to build our local deposit base   and we would
appreciate your support. In this connection, please consider our banks for your deposit needs.
There have been some major personnel changes in the last year. First, our original Chief Financial Officer, Clay
Hulette, who also served as Area President of First Federal of Kentucky, retired at the first of this year. Clay was
instrumental in the formation of our Company and his hard work and wise counsel were of immense value. Clay has
continued to serve as a director of First Federal of Kentucky and in August was appointed to the board of the Company.
Clay was replaced as CFO by Tyler Eades. Also, our Secretary, Lee Ann Hockensmith, who also served as the Chief
1
1

Customer Officer at First Federal of Kentucky, left our employment in August to take a position in another industry.
Jaime Coffey, President and CEO of First Federal of Hazard, was appointed to take her place as Secretary. Finally,
our longtime Chairman and one-time Chief Executive Officer Tony Whitaker, retired on August 1, 2024. Tony had
served the banking industry for over 50 years and developed the ideas behind the foundation of our Company. His
replacement as Chairman of the Company is long-time director Walter G. Ecton Jr. and his replacement as Chair of
First Federal of Hazard is director and long-time employee and CEO Lou Ella R. Farler.
It has been a truly eventful year, but the commitment of our board, our management, and our staff to return to
profitability and to resolve our regulatory issues has not waivered.
Sincerely,
2
Don Jennings
President and Chief Executive Officer
2



shareholder letter icon 10/17/2024 Letter Continued (Full PDF)
 

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