Kentucky First Federal Bancorp (KFFB) risk factors, FY2026 10-K

Kentucky First Federal Bancorp's FY2026 10-K, filed Sep 25, 2026, lists 25 risk factors in 8 groups. Against the prior year's 25: 3 new, 3 dropped, 7 substantially reworded.

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Risk factors listed
258 groups
New this year
3vs 25 last year
Dropped
3since the prior 10-K
Substantially reworded
7of those kept
Section length
7k wordsItem 1A

What the changes say

  • Regulatory risks broaden to include undisclosed supervisory restrictions and accounting changes.
  • Dividend capacity now depends on bank distributions and First Federal MHC waiving dividends.
  • Interest-rate, inflation and capital disclosures update assumptions, while liquidity, depositor-confidence and mortgage risks are unchanged.

What changed since the prior 10-K

New

  • NewRisks Related to Laws and Regulations

    Regulation of the financial services industry is intense, and we may be adversely affected by changes in laws and regulations

    Changing financial, tax, accounting, securities, insurance or monetary rules could restrict operations, increase compliance burdens or require different reporting.

  • NewRisks Related to Laws and Regulations

    We may be unable to disclose some regulatory restrictions or limitations on our operations imposed by our regulators, even if material to our business

    Regulators could impose nonpublic operating restrictions that reduce revenue, increase costs, require new systems and consume management attention.

  • NewRisks Related to Our Holding Company Structure

    Our ability to pay future dividends is subject to the ability of First Federal of Hazard and First Federal of Kentucky to make capital distributions to Kentucky First Federal and the waiver of dividends by First Federal MHC

    Future shareholder dividends depend on bank capital distributions and First Federal MHC continuing to waive dividends, subject to annual approvals.

Dropped

  • DroppedLiquidity Risk

    On January 16, 2024, the Company announced the suspension of quarterly dividends indefinitely. The suspension of our quarterly cash dividend could have an adverse impact on the market price of our common stock

  • DroppedRisks Related to Laws and Regulations

    We are required to comply with the terms of a formal written agreement and IMCRs issued by the OCC, and lack of compliance could result in monetary penalties and /or additional regulatory actions

  • DroppedRisks Related to Laws and Regulations

    Changes in laws and regulations and the cost of regulatory compliance with new laws and regulations may adversely affect our operations and/or increase our costs of operations

Reworded

  • 81% rewrittenRisks Related to Laws and Regulations

    We may be subject to more stringent capital requirements which could result in lower returns on equity, require the raising of additional capital, and limit our ability to pay dividends or repurchase shares of our common stock

    The disclosure replaces detailed capital-buffer ratios with current minimum standards and adds limits on distributions and management bonuses when the buffer is insufficient.

  • 81% rewrittenRisks Related to Our Holding Company Structure

    First Federal MHC owns a majority of our common stock and is able to exercise voting control over most matters put to a vote of stockholders, including preventing sale or merger transactions you may like or a second-step conversion by First Federal MHC

    No substantive change; First Federal MHC’s voting control and ability to block transactions or nominees are described identically.

  • 67% rewrittenLiquidity Risk

    Insufficient liquidity or liquidity related concerns could impair our ability to fund operations, pay dividends on outstanding shares of stock, and jeopardize our financial condition, growth and prospects

    No substantive change; liquidity needs and funding sources remain the same.

  • 53% rewrittenInterest Rate Risk

    Rising interest rates may hurt our profits and asset values

    The update reports net interest income rising $2.8 million through June 30, 2026, but says a 25-basis-point September 2026 increase could pressure margins.

  • 25% rewrittenLiquidity Risk

    Financial challenges at other banking institutions could lead to depositor concerns that spread within the banking industry causing disruptive and destabilizing deposit outflows

    No substantive change; the discussion of bank failures, FDIC treatment of uninsured deposits and contagion risk is unchanged.

  • 22% rewrittenRisks Related to Our Lending Activities

    Inflationary pressures and rising prices may affect our results of operations and financial condition

    Expected elevated inflation shifts from 2025 to 2026, and the text adds the FOMC’s quarter-point September 2026 rate increase.

  • 21% rewrittenRisks Related to Our Lending Activities

    Our mortgage banking revenue and the value of our mortgage servicing rights can be volatile

    No substantive change; mortgage origination, servicing-rights and interest-rate sensitivity remain described the same way.

All 25 risk factors

Headings as the filing states them, in filing order.

Interest Rate Risk

  1. 01Rising interest rates may hurt our profits and asset values53% rewritten
  2. 02Rising interest rates may adversely affect the ability of borrowers to repay loans

Risks Related to Our Lending Activities

  1. 03Inflationary pressures and rising prices may affect our results of operations and financial condition22% rewritten
  2. 04If our allowance for credit losses is not sufficient to cover actual loan losses, our results of operations would be negatively affected
  3. 05A large percentage of our loans are collateralized by real estate and disruptions in the real estate market may result in losses and hurt our earnings
  4. 06Our concentration of residential mortgage loans exposes us to increased lending risks
  5. 07The distressed economy in First Federal of Hazard’s market area could hurt our profits and slow our growth
  6. 08Our mortgage banking revenue and the value of our mortgage servicing rights can be volatile21% rewritten

Liquidity Risk

  1. 09Financial challenges at other banking institutions could lead to depositor concerns that spread within the banking industry causing disruptive and destabilizing deposit outflows25% rewritten
  2. 10Insufficient liquidity or liquidity related concerns could impair our ability to fund operations, pay dividends on outstanding shares of stock, and jeopardize our financial condition, growth and prospects67% rewritten

Risks Related to Our Business and Industry Generally

  1. 11Strong competition within our market areas could hurt our profits and slow growth

Risks Related to Laws and Regulations

  1. 12Regulation of the financial services industry is intense, and we may be adversely affected by changes in laws and regulationsNew
  2. 13We may be unable to disclose some regulatory restrictions or limitations on our operations imposed by our regulators, even if material to our businessNew
  3. 14Non-compliance with the USA PATRIOT Act, Bank Secrecy Act, or other laws and regulations could result in fines or sanctions
  4. 15Monetary policies and regulations of the Federal Reserve Board could adversely affect our business, financial condition and results of operations
  5. 16We may be adversely affected by recent changes in U.S. tax laws and regulations
  6. 17We may be subject to more stringent capital requirements which could result in lower returns on equity, require the raising of additional capital, and limit our ability to pay dividends or repurchase shares of our common stock81% rewritten
  7. 18The Federal Reserve Board may require us to commit capital resources to support the Banks

Risks Related to Accounting Matters

  1. 19Changes in management’s estimates and assumptions may have a material impact on our consolidated financial statements and our financial condition or operating results
  2. 20Changes in accounting standards could affect reported earnings

Risks Related to Operational Matters

  1. 21We are subject to certain risks in connection with our use of technology
  2. 22Our security measures may not protect us from systems failures or interruptions
  3. 23We must keep pace with technological change to remain competitive

Risks Related to Our Holding Company Structure

  1. 24First Federal MHC owns a majority of our common stock and is able to exercise voting control over most matters put to a vote of stockholders, including preventing sale or merger transactions you may like or a second-step conversion by First Federal MHC81% rewritten
  2. 25Our ability to pay future dividends is subject to the ability of First Federal of Hazard and First Federal of Kentucky to make capital distributions to Kentucky First Federal and the waiver of dividends by First Federal MHCNew

Other Kentucky First Federal Bancorp 10-Ks

  • FY2025 10-K risk factors
    25 risks3 dropped5 reworded

    Interest rate cuts have helped improve net interest income after prior declines. The bank maintains a heavy concentration of adjustable-rate residential mortgage loans.

    Filed Sep 30, 2025
  • FY2024 10-K risk factors
    28 risks

    Concentrated in Kentucky residential real estate loans and exposed to local economic distress in coal-dependent Perry County markets.

    Filed Oct 03, 2024

About this page

The headings are the filing's own. The one-line readings and the overview are automated and can be wrong: read Item 1A of the 10-K for the exact wording.