Higher net interest income and lower funding costs lifted results, while provisions for credit losses rose and deposits and assets declined from a year earlier.
Kentucky First Federal Bancorp reported net income of $680,000, or $0.08 diluted earnings per share, for the quarter ended June 30, 2026, up from $176,000, or $0.02, a year earlier, while full-year earnings rose to $1.9 million, or $0.24 a share, from $181,000, or $0.02. The improvement was driven mainly by higher net interest income as interest income increased and interest expense fell; quarterly net interest income rose 33.9% to $3.1 million and annual net interest income climbed 33.2% to $11.1 million. The company also raised its provision for credit losses, citing an estimated loss on the foreclosure of a residential real estate loan, upward repricing pressure on borrowers, inflation, softer local real estate prices and broader economic uncertainty. Assets fell 2.4% to $362.4 million and deposits declined 6.0% to $260.8 million, primarily because brokered deposits dropped, while book value per share increased to $6.22 and management said FDIC insurance rates are expected to remain stable after the Office of the Comptroller of the Currency previously terminated a formal written agreement with First Federal Savings Bank of Kentucky.