Kentucky First Federal Bancorp Reports $5,000 Net Income for Nine Months Ending March 31, 2025

Kentucky First Federal Bancorp reported a net income of $5,000 for the nine months ending March 31, 2025, a significant recovery from a net loss of $643,000 during the same period in 2024. This turnaround is attributed to a 20.4% increase in interest income, which rose to $14.2 million, driven by higher loan balances and interest rates. The company's net interest income also saw an 18.6% increase, reaching $6 million, while total interest expense increased by 21.8% to $8.2 million. The net interest margin improved from 1.46% to 1.69%, reflecting a favorable shift in the interest rate environment.

In terms of assets, Kentucky First Federal Bancorp reported total assets of $380.7 million as of March 31, 2025, up from $374.9 million at the end of June 2024. This increase was primarily due to a 51.8% rise in cash and cash equivalents, which totaled $27.8 million, and a notable increase in fed funds sold, which reached $17.1 million. However, the securities portfolio decreased by 15% to $8.2 million, and loans receivable net of allowances fell slightly to $330.6 million.

The company also experienced a 1.7% increase in total liabilities, which amounted to $332.6 million, largely due to an $8.3 million rise in deposits. Certificates of deposit increased by 12.5% to $198.6 million, while demand deposit accounts decreased by 7.5%. Shareholders' equity rose to $48.2 million, reflecting a modest increase of 0.3% from the previous fiscal period, primarily due to a reduction in accumulated other comprehensive loss.

Operationally, Kentucky First Federal Bancorp's non-performing loans decreased slightly to approximately $3.8 million, representing 1.1% of total loans, compared to 1.2% at the end of June 2024. The allowance for credit losses (ACL) increased to $2.2 million, covering 56.9% of non-performing loans. The company continues to focus on maintaining a high-quality loan portfolio while managing its credit risk effectively.

Looking ahead, Kentucky First Federal Bancorp remains committed to addressing the regulatory requirements imposed by the Office of the Comptroller of the Currency (OCC) and is focused on enhancing its capital position. The company is optimistic about its ability to navigate the current economic landscape and aims to continue improving its financial performance through strategic loan originations and effective asset management.