R. Clay Hulette
About R. Clay Hulette
R. Clay Hulette is Chief Executive Officer of Kentucky First Federal Bancorp (KFFB) and President/CEO of First Federal Savings Bank of Kentucky, appointed October 2, 2025 (subject to regulatory approval). He is age 63, a Certified Public Accountant, and previously served as KFFB’s longtime CFO (2005–Jan 2024) and as a KFFB director since August 29, 2024 . Corporate performance context during his recent transition: FY2025 net income was $181k vs. a FY2024 net loss of $1.7m; KFFB’s TSR value was $40.97 on a $100 base as of 6/30/2025, down from $44.49 in 2024 and $81.42 in 2023 .
Past Roles
| Organization | Role | Years | Strategic impact |
|---|---|---|---|
| Kentucky First Federal Bancorp | Chief Executive Officer | Appointed Oct 2, 2025 (pending regulatory approval) | Board’s aim is to “strengthen leadership… improve profitability, execute strategic initiatives and enhance shareholder value” . |
| First Federal Savings Bank of Kentucky | President & CEO (interim pending approval) | Appointed Oct 2, 2025 | Returns to full-time ops leadership; prior 27-year tenure provides continuity in markets and regulatory environment . |
| Kentucky First Federal Bancorp | Director | Since Aug 29, 2024 | Non-independent director given prior employment/paid roles . |
| Kentucky First Federal Bancorp | VP, Treasurer & CFO | 2005 – Jan 2, 2024 | Led finance through reorg and M&A; retired Jan 2024 . |
| First Federal Savings Bank of Kentucky | President | 2007 – 2013 | Led bank operations; later Frankfort Area President . |
| First Federal Savings Bank of Kentucky | Frankfort Area President | 2013 – Jan 2024 | Regional P&L leadership . |
| First Federal Savings Bank of Kentucky | Director | Since Jan 2012 | Long-standing bank-level oversight . |
| KFFB/First Federal of Kentucky | Consultant and part-time Risk Manager | Jan 2025 – Sep 2025 | Risk management and transition support . |
External Roles
| Organization | Role | Years | Notes |
|---|---|---|---|
| Not disclosed | — | — | No public company external directorships disclosed in filings reviewed . |
Fixed Compensation
| Component | 2024 | 2025 | Notes |
|---|---|---|---|
| CEO Base Salary (annual rate) | — | $185,000 | Annual salary for services to KFFB/First Federal of Kentucky effective with Oct 2, 2025 appointment . |
| Director Fees (KFFB + bank) | $5,400 | $16,800 (includes $11,300 from bank board) | 2024: bank director fees through 6/30/24; 2025: company table includes First Federal of Kentucky director fees; also served as director at KFFB . |
| Consulting/Risk Manager Fees | — | $43,741 | Aggregate consideration Jan–Sep 2025 (not included in director comp table) . |
No target/actual annual bonus, no RSU/PSU/option grants, and no outstanding equity awards were disclosed for FY2025; the company also states it does not currently grant stock options .
Performance Compensation
| Metric | Weighting | Target | Actual/Outcome | Payout | Vesting |
|---|---|---|---|---|---|
| Not disclosed for CEO (no incentive plan detail provided) | — | — | — | — | — |
Company disclosures indicate “no outstanding equity awards” and do not present executive bonus metric weightings, targets, or payouts for FY2025 .
Equity Ownership & Alignment
| Item | Detail |
|---|---|
| Total beneficial ownership | 74,496 shares for R. Clay Hulette; includes 46,997 shares owned by spouse; 5,809 shares credited in 401(k) for Mr. Hulette . |
| Ownership as % of shares outstanding | “*” denotes <1% (8,086,715 shares outstanding as of 9/30/2025) . |
| Vested vs. unvested shares | No outstanding equity awards disclosed (no vesting overhang) . |
| Options (in/out of the money) | None outstanding; company does not currently grant stock options . |
| Hedging/pledging policies | No policy prohibiting hedging or pledging for directors and officers (red flag) . |
| Ownership guidelines | Not disclosed in reviewed documents . |
Employment Terms
- Appointment/role: CEO of KFFB and President/CEO of First Federal of Kentucky effective Oct 2, 2025, pending regulatory approval; interim at bank pending approval .
- Compensation terms: Annual salary $185,000; the company stated there are no “arrangements or understandings” pursuant to which he was selected; no additional terms disclosed .
- Severance/Change-in-control: No CEO-specific agreement disclosed. Separately, OCC formal action deems First Federal of Kentucky in “troubled condition,” which imposes prohibitions on “golden parachute” payments to named executive officers and certain others absent OCC approval—materially constraining any severance/CIC economics until restrictions are lifted .
- Clawback: Company-wide incentive compensation recoupment policy compliant with SEC/Nasdaq rules .
Board Governance
| Topic | Detail |
|---|---|
| Board service | KFFB director since Aug 29, 2024; age 63 . |
| Independence | Not independent due to prior paid employment/roles and current executive status . |
| Committee roles | Standing committees (Audit, Compensation, Nominating/Governance) are composed solely of independent directors; no committee roles for Mr. Hulette disclosed . |
| Leadership structure | Independent Chair; roles of Chair and CEO are separated . |
| Attendance | In FY2025, KFFB Board met 4 times; no director attended fewer than 75% of Board/committee meetings; all directors attended 2024 annual meeting . |
Director Compensation (structure)
| Board | Retainer/Fees |
|---|---|
| KFFB Board | $600 per month; no additional committee meeting compensation . |
| First Federal of Hazard | $900 per month; $100 per committee meeting (when not same day as board) . |
| First Federal of Kentucky | $900 per month; $100 per committee meeting (when not same day as board) . |
Performance & Track Record (Company context)
| Metric | FY2023 | FY2024 | FY2025 |
|---|---|---|---|
| Net income ($000s) | 933 | (1,721) | 181 |
| TSR value of $100 initial investment (as of 6/30) | $81.42 | $44.49 | $40.97 |
| Book value per share (as of 6/30/2025) | — | — | $5.98 |
FY2025 improvement vs FY2024 was driven by absence of a prior-year $947k goodwill impairment and better net interest income as asset repricing outpaced funding cost increases .
Related Party/Interlocks and Risk Indicators
- Family relationships: Spouse (Teresa Hulette) is EVP of First Federal of Kentucky; nephew (Tyler Eades) is KFFB CFO; both relationships are disclosed .
- Loans to insiders: Combined loans to directors/executive officers and affiliates totaled ~$1.0 million (2.2% of stockholders’ equity) at 6/30/2025; extended on substantially the same terms as to non-insiders and approved per Reg O .
- Hedging/pledging: No prohibition—potential misalignment risk if used .
- Regulatory status: OCC formal written agreement and elevated IMCRs at First Federal of Kentucky; bank classified as in “troubled condition”; constraints include prohibitions on severance (“golden parachute”) payments absent regulatory relief .
- Say-on-pay: Company reports prior say-on-pay proposals were “overwhelmingly approved” .
Compensation Structure Analysis
- Shift to cash-only pay: No disclosed variable cash bonuses, no equity awards outstanding, and no options granted—compensation is predominantly fixed cash (salary, board fees) with no disclosed performance linkage (pay-for-performance visibility is low) .
- Vesting/selling pressure: With no outstanding equity awards, there is no scheduled vesting overhang driving insider selling pressure .
- Governance red flags: Absence of hedging/pledging prohibitions; family members in senior roles increase perceived conflict risk; regulatory “troubled condition” status restricts severance/CIC payouts (reducing downside cost but signaling supervisory risk) .
Investment Implications
- Alignment: Modest direct ownership (<1%) and no equity incentives suggest limited pay-for-performance leverage; however, long-tenured bank/operator background and CPA credential offer execution continuity in a turnaround context .
- Near-term risk/reward: Earnings inflected positive in FY2025 but TSR remains depressed; regulatory Agreement and IMCRs constrain capital actions and severance, and can pressure valuation multiples until resolved .
- Trading signals to monitor:
- Regulatory milestones: Evidence of OCC Agreement remediation and sustained IMCR compliance .
- Margin trajectory: Continued NIM recovery as asset yields reprice .
- Insider activity: Any Form 4 activity by Mr. Hulette given no vesting schedule and permissive hedging/pledging policy .
- Capital/return policy: Path to reinstating dividends or other distributions once constraints lift .