Kentucky First Federal Bancorp (KFFB)·Q4 2025 Earnings Summary

Executive Summary

• Q4 2025 delivered a return to profitability: net income of $0.176 million and $0.02 diluted EPS, versus a net loss of $(1.077) million and $(0.13) EPS in Q4 2024, driven primarily by the absence of last year’s Goodwill impairment and stronger net interest income .
• Net interest income rose to $2.303 million (+21.1% YoY) on improved asset repricing and an interest-rate environment where earning asset yields began to outpace liability costs; non-interest income also improved on higher gains from secondary market loan sales .
• Balance sheet mix trended favorably: deposits increased $21.4 million YoY while FHLB advances fell $26.2 million YoY, aligning with management’s strategy to grow core deposits and reduce higher-cost funding reliance .
• No formal quantitative guidance or dividend declaration; management reiterated that any future dividends depend on regulatory non-objection and approvals across the holding company, bank subsidiaries, and MHC structure .
• Street estimates coverage appears limited; S&P Global shows no EPS or revenue consensus for KFFB this quarter, so beats/misses versus consensus cannot be assessed*.

What Went Well and What Went Wrong

What Went Well

• Profitability inflection: “Net income of $176,000 or $0.02 diluted earnings per share for the three months ended June 30, 2025” versus a net loss in the prior year quarter, aided by no goodwill impairment and higher net interest income .
• Asset repricing tailwind: Operations “were positively impacted by the recently improved interest rate environment” as the repricing level of assets began to outpace increases in interest paid on liabilities .
• Secondary market loan demand: Non-interest income rose “almost entirely due to net gains on sales of loans,” reflecting stronger demand for fixed-rate secondary market loans in the improved rate environment .

What Went Wrong

• Operating expense pressure: Non-interest expense (ex goodwill) increased YoY, with data processing fees up $102,000 (majority associated with core processing) despite improvement in other items .
• Regulatory-driven costs: Earlier quarters saw higher professional/outside service fees tied to corrective actions under an OCC agreement, highlighting sustained compliance costs .
• Limited top-line operating leverage: While net interest income rose, absolute non-interest income remains modest ($111,000), constraining total pre-tax earnings and emphasizing dependence on spread and funding mix improvements .

Financial Results

Income Statement (quarterly, $USD thousands unless noted)

Notes: Provision line reflects “Provision for (recovery of) credit losses”; Q2 2025 quarter reported no provision in the six-month table but showed 9 in the comparable prior-year period .

Balance Sheet KPIs (end of period; $USD thousands unless noted)

Segment breakdown: Not applicable; the Company reports at the consolidated level .

Guidance Changes

No quantitative ranges or targets were issued in Q4 2025 materials .

Earnings Call Themes & Trends

No earnings call transcript was available for Q4 2025; themes reflect management press releases across quarters.

Management Commentary

• “Results of operations were positively impacted by the recently improved interest rate environment and because the repricing level of our assets has begun to outpace the prior increases in interest paid on liabilities.”
• “Non-interest income increased… almost entirely due to net gains on sales of loans… due to the increase in demand for fixed-rate secondary market loans.”
• “Deposits increased $21.4 million or 8.4%… consistent with our efforts to increase deposits and reduce reliance on FHLB advances.”
• On expense dynamics: “Data processing fees increasing $102,000… majority due to increased fees associated with core processing,” partially offset by lower outside services .
• On dividends and approvals: future shareholder dividends require regulatory non-objection and approvals across entities, including First Federal MHC member waiver processes .

Q&A Highlights

No earnings call transcript was available for Q4 2025; no Q&A details to report [ListDocuments showed none].

Estimates Context

Street coverage is limited; S&P Global shows no EPS or revenue consensus for Q4 2025, preventing beat/miss assessment. Actual revenue proxies (bank “net interest income + non-interest income” are disclosed in filings; S&P shows actual reported “Revenue” values only for historical quarters (Q2–Q4 2025), not consensus estimates*.

• Values retrieved from S&P Global.

Key Takeaways for Investors

• Profitability returned in Q4 2025 with $0.02 EPS, anchored by higher net interest income and the absence of last year’s goodwill impairment; sustainability hinges on continued asset repricing and expense control .
• Funding mix is improving (deposits up YoY, FHLB down YoY), which should lower funding costs and support NIM; watch deposit trends versus competitive rate pressures .
• Non-interest income from secondary market loan sales is a helpful lever but remains small; topline leverage will primarily depend on spread and volume rather than fee growth .
• Operating expense normalization is a swing factor; data processing/core provider costs rose materially, while outside services declined—monitor expense trajectory and OCC-related remediation costs .
• Dividend potential is constrained by regulatory approvals; any move toward dividends could be a positive sentiment catalyst, but timing remains uncertain .
• Management transition (CEO appointment) could catalyze execution on deposit growth and profitability initiatives; leadership stability and regulatory engagement are key watch items .
• With no Street consensus, the narrative rather than “beat/miss” will drive reaction: focus on continued NII improvement, deposit growth, and expense management as near-term stock catalysts .