UNITED STATES

 SECURITIES AND EXCHANGE COMMISSION

 WASHINGTON, DC 20549

 FORM 10-K

 (Mark One)

 ANNUAL REPORT PURSUANT TO SECTION 13
OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

 For the fiscal year ended June 30, 2025

 or

 TRANSITION REPORT PURSUANT TO SECTION
13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

 For the transition period from _______ to _______

 Commission file number 0-51176

 KENTUCKY FIRST FEDERAL BANCORP

 (Exact Name of Registrant as Specified in Its
Charter)

 United States

 61-1484858

 (State or Other Jurisdiction of

 (I.R.S. Employer

 Incorporation or Organization)

 Identification No.)

 655 Main Street, Hazard, Kentucky

 41702

 (Address of Principal Executive Offices)

 (Zip Code)

 Registrant's telephone number, including
area code: (502) 223-1638

 Securities registered pursuant to Section 12(b)
of the Act:

 Title of each class

 Trading Symbol(s)

 Name of each exchange on which registered

 Common Stock, $0.01 par value per share

 KFFB

 The NASDAQ Stock Market LLC

 Securities registered pursuant to Section 12(g)
of the Act: None

 Indicate by check mark if the registrant is a
well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes No

 Indicate by check mark if the registrant is not
required to file reports pursuant to Section 13 or Section 15(d) of the Act. Yes No

 Indicate by check mark whether the registrant
(1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12
months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements
for the past 90 days. Yes No

 Indicate by check mark whether the registrant
has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (Section 232.405
of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes
 No

 Indicate by check mark whether the registrant
is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company.
See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company"
and "emerging growth company" in Rule 12b-2 of the Exchange Act.

 Large accelerated filer

 Accelerated filer

 Non-accelerated filer

 Smaller reporting company

 Emerging growth company

 If an emerging growth company, indicate by check
mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting
standards provided pursuant to Section 13(a) of the Exchange Act.

 Indicate by check mark whether the registrant
has filed a report on and attestation to its management's assessment of the effectiveness of its internal control over financial
reporting under Section 404(b) of the Sarbanes-Oxley Act (15 U.S.C. 7262(b)) by the registered public accounting firm that prepared or
issued its audit report.

 If securities are registered pursuant to Section
12(b) of the Act, indicate by check mark whether the financial statements of the registrant included in the filing reflect the correction
of an error to previously issued financial statements.

 Indicate by check mark whether any of those error
corrections are restatements that required a recovery analysis of incentive-based compensation received by any of the registrant's
executive officers during the relevant recovery period pursuant to §240.10D-1(b).

 Indicate by a check mark whether the registrant
is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes No

 The aggregate market value of the common stock held by nonaffiliates
was $ 8.8 million as of December 31, 2024.

 Number of shares of common stock outstanding
as of September 24, 2025: 8,086,715

 DOCUMENTS INCORPORATED BY REFERENCE

 The following lists the documents incorporated
by reference and the Part of the Form 10-K into which the document is incorporated:

 1.

 Portions of the Annual
 Report to Stockholders for the Fiscal Year Ended June 30, 2025. (Part II)

 2.

 Portions of Proxy Statement
 for the 2025 Annual Meeting of Stockholders. (Part III)

 PAGE

 Item 1.

 Business

 Item 1A.

 Risk Factors

 Item 1B.

 Unresolved Staff Comments

 Item 1C.

 Cybersecurity

 Item 2.

 Properties

 Item 3.

 Legal Proceedings

 Item 4.

 Mine Safety Disclosures

 Item 5.

 Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities

 Item 6.

 [Reserved]

 Item 7.

 Management's Discussion and Analysis of Financial Condition and Results of Operations

 Item 7A.

 Quantitative and Qualitative Disclosures About Market Risk

 Item 8.

 Financial Statements and Supplementary Data

 Item 9.

 Changes in and Disagreements with Accountants on Accounting and Financial Disclosure

 Item 9A.

 Controls and Procedures

 Item 9B.

 Other Information

 Item 9C.

 Disclosure Regarding Foreign Jurisdictions that Prevent Inspections

 Item 10.

 Directors, Executive Officers and Corporate Governance

 Item 11.

 Executive Compensation

 Item 12.

 Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

 Item 13.

 Certain Relationships and Related Transactions, and Director Independence

 Item 14.

 Principal Accountant Fees and Services

 Item 15.

 Exhibits and Financial Statement Schedules

 Item 16.

 Form 10-K Summary

 SIGNATURES

 i

 Item 1. Business.

 Forward-Looking Statements

 Certain statements contained in this report, as well as other periodic reports filed with the Securities and Exchange Commission, that
are not historical facts are considered "forward-looking statements" under the Private Securities Litigation Reform Act of
1995, that are subject to certain risks and uncertainties. These forward-looking statements may be identified by the use of words such
as "believe," "expect," "anticipate," "plan," "estimate," "intend"
and "potential," or words of similar meaning, or future or conditional verbs such as "should," "could,"
or "may." Forward-looking statements include statements of our goals, intentions and expectations; statements regarding our
ability to fully and timely address the deficiencies that resulted in the Agreement that First Federal Savings Bank of Kentucky has entered
into with the Office of the Comptroller of the Currency ("OCC"); First Federal Savings Bank of Kentucky's ability to
satisfy the Individual Minimum Capital Requirements imposed by the OCC; statements regarding our business plans, prospects, growth and
operating strategies; statements regarding the quality of our loan and investment portfolios; and estimates of our risks and future costs
and benefits. Kentucky First Federal Bancorp's actual results, performance or achievements may materially differ from those expressed
or implied in the forward-looking statements. Risks and uncertainties that could cause or contribute to such material differences include,
but are not limited to, general economic conditions; prices for real estate in the Company's market areas; the interest rate environment
and the impact of the interest rate environment on our business, financial condition and results of operations; our ability to successfully
execute our strategy to increase earnings, increase core deposits, reduce reliance on higher cost funding sources and shift more of our
loan portfolio towards higher-earning loans; our ability to pay future dividends and if so at what level; our ability to receive any required
regulatory approval or non-objection to pay dividends to shareholders; our ability to pay dividends from First Federal Savings and Loan
Association of Hazard and First Federal Savings Bank of Kentucky to the Company in order for the Company to pay dividends to shareholders;
the ability of First Federal MHC to receive approval of its members to waive the payment of any Company dividends to First Federal MHC
competitive conditions in the financial services industry; changes in the level of inflation; the impacts of tariffs, sanctions and other
trade policies of the United States and its global trading counterparts; changes in the demand for loans, deposits and other financial
services that we provide; the possibility that future credit losses may be higher than currently expected; competitive pressures among
financial services companies; the ability to attract, develop and retain qualified employees; our ability to maintain the security of
our data processing and information technology systems; the outcome of pending or threatened litigation, or of matters before regulatory
agencies; changes in law, governmental policies and regulations, rapidly changing technology affecting financial services, and the other
matters mentioned in Item 1A of the Company's Annual Report on Form 10-K. Except as required by applicable law or regulation, the
Company does not undertake the responsibility, and specifically disclaims any obligation, to release publicly the result of any revisions
that may be made to any forward-looking statements to reflect events or circumstances after the date of the statements or to reflect the
occurrence of anticipated or unanticipated events.

 General

 References in this Annual Report on Form 10-K
to "we," "us" and "our" refer to Kentucky First, and where appropriate, collectively to Kentucky
First, First Federal of Hazard and First Federal of Kentucky.

 Kentucky First Federal Bancorp. Kentucky
First Federal Bancorp ("Kentucky First Federal" or the "Company") was incorporated as a mid-tier holding company
under the laws of the United States on March 2, 2005 upon the completion of the reorganization of First Federal Savings and Loan Association
of Hazard ("First Federal of Hazard") into a federal mutual holding company form of organization (the "Reorganization").
On that date, Kentucky First Federal also completed its minority stock offering and its concurrent acquisition of Frankfort First Bancorp,
Inc. ("Frankfort First Bancorp") and its wholly owned subsidiary First Federal Savings Bank of Kentucky, Frankfort, Kentucky
("First Federal of Kentucky") (the "Merger"). Following the Reorganization and Merger, the Company has operated
First Federal of Hazard and First Federal of Kentucky (collectively, the "Banks") as two independent, community-oriented
savings institutions.

 On December 31, 2012, Kentucky First Federal
acquired CFK Bancorp, Inc., the savings and loan holding company for Central Kentucky Federal Savings Bank, a federally chartered savings
bank located in Danville, Kentucky. Central Kentucky Federal Savings Bank was merged into First Federal of Kentucky and now operates
as a division of First Federal of Kentucky under the name "Central Kentucky Federal Savings Bank" through its two offices
in Danville, Kentucky and its Lancaster, Kentucky branch. With the acquisition, the Company expanded its customer base in the central
Kentucky area with an institution that shared its community banking orientation and thrift heritage and enjoyed a favorable reputation
within the new Danville-Lancaster market area.

 Kentucky First's and First Federal of Hazard's
executive offices are located at 655 Main Street, Hazard, Kentucky, 41702 and the telephone number for investor relations is (888) 818-3372.

 At June 30, 2025, Kentucky First had total assets
of $371.2 million, deposits of $277.6 million and stockholders' equity of $48.4 million. The discussion in this Annual Report on
Form 10-K relates primarily to the businesses of First Federal of Hazard and First Federal of Kentucky, as Kentucky First's operations
consist primarily of operating the Banks and investing funds retained in the Reorganization.

 First Federal of Hazard and First Federal of
Kentucky are subject to examination and comprehensive regulation by the Office of the Comptroller of the Currency and their deposits
are insured up to applicable limits by the Deposit Insurance Fund, which is administered by the Federal Deposit Insurance Corporation.
Both of the Banks are members of the Federal Home Loan Bank of Cincinnati, which is one of the 11 regional banks in the FHLB System.
See " Regulation and Supervision."

 First Federal Savings and Loan Association
of Hazard. First Federal of Hazard was formed as a federally chartered mutual savings and loan association in 1960. First Federal
of Hazard operates from a single office located at 655 Main Street, Hazard, Kentucky as a community-oriented savings and loan association
offering traditional financial services to consumers in Perry and surrounding counties in eastern Kentucky. It engages primarily in the
business of attracting deposits from the general public and using such funds to originate, when available, loans secured by first mortgages
on owner-occupied, residential real estate and occasionally other loans secured by real estate. To the extent there is insufficient loan
demand in its market area, and where appropriate under its investment policies, First Federal of Hazard has historically invested in
mortgage-backed and investment securities, although since the reorganization, First Federal of Hazard has been purchasing whole loans
and participations in loans originated at First Federal of Kentucky. At June 30, 2025, First Federal of Hazard had total assets of $85.8
million, net loans of $77.2 million, total mortgage-backed and other securities of $2.8 million, deposits of $59.5 million and total
capital of $17.9 million.

 First Federal Savings Bank of Kentucky.
 First Federal of Kentucky is a federally chartered savings bank, which is primarily engaged in the business of attracting deposits
from the general public and originating primarily adjustable-rate loans secured by first mortgages on owner-occupied and nonowner-occupied
one- to four-family residences in Franklin, Boyle, Garrard and other counties in Kentucky. First Federal of Kentucky also originates,
to a lesser extent, home equity loans and loans secured by churches, multi-family properties, professional office buildings and other
types of property. At June 30, 2025, First Federal of Kentucky had total assets of $286.1 million, net loans of $250.0 million, total
mortgage-backed and other securities of $7.0 million, deposits of $219.4 million and total capital of $29.3 million.

 First Federal of Kentucky's main office
is located at 216 W. Main Street, Frankfort, Kentucky 40602 and its main telephone number is (502) 223-1638.

 Market Areas

 First Federal of Hazard and First Federal of
Kentucky operate in four market areas.

 First Federal of Hazard's market area consists
of Perry County, where the business office is located, as well as the surrounding counties of Letcher, Knott, Breathitt, Leslie and Clay
Counties in eastern Kentucky. The economy in its market area has been distressed in recent years. The local economy depends on the coal
industry and other industries, such as health care and manufacturing. Still, the economy in First Federal of Hazard's market area
continues to lag behind the economies of Kentucky and the United States. In the most recent available data, using information from the
Commonwealth of Kentucky Economic Development and the United States Bureau of Labor Statistics, median household income in Perry County
is $46,572 compared to personal income of $64,790 in Kentucky and $83,730 in the United States. Total population in Perry County is approximately
27,276. However, as a regional economic center, Hazard tends to draw consumers and workers who commute from surrounding counties. Employment
in the market area, particularly in Perry County, is led by healthcare, followed by retail, education, and public administration. During
the last five years, the unemployment rate (not seasonally adjusted) has been higher than most regions, and in July 2025, was 6.9%, compared
to 4.7% in Kentucky and 4.3% in the United States.

 First Federal of Kentucky's primary lending
area includes the Kentucky counties of Franklin, Boyle, Garrard and surrounding counties, with the majority of lending originated on
properties located in Franklin and Boyle Counties.

 Franklin County has a population of approximately
51,913, of which approximately 28,676 live within the city of Frankfort, which serves as the capital of Kentucky. The primary sources
of employment are public administration, education, other services, and health care. The median household income in Franklin County is
$66,095. The unemployment rate is 4.4%

 Boyle County has a population of approximately
31,139. The primary sources of employment are health care, retail, information services, and manufacturing. The unemployment rate is
5.5% while the median household income in Boyle County is $58,397.

 Garrard County has a population of approximately
17,916. The primary sources of employment are education, health care, retail, and construction. There is a 5.0% unemployment rate and
$61,034 median household income.

 Lending Activities

 General. Our loan portfolio consists
primarily of one- to four-family residential mortgage loans. As opportunities arise, we also offer loans secured by churches, commercial
real estate, and multi-family real estate. We also offer loans secured by deposit accounts and home equity loans. Substantially all of
our loans are made within the Banks' respective market areas.

 Residential Mortgage Loans. Historically,
our primary lending activity is the origination of mortgage loans to enable borrowers to purchase or refinance existing homes in the Banks'
respective market areas. At June 30, 2025, residential mortgage loans including construction loans and multi-family totaled $276.2 million,
or 83.6%, of our total loan portfolio. We offer a mix of adjustable rate and fixed-rate mortgages with terms up to 30 years. Other than
loans with very short terms, fixed-rate mortgages are originated to be sold on the secondary market. After the initial term, the rate
adjustments on most of our adjustable-rate loans are indexed to the MIRS Transition Index, formerly known as PMMS+ Index. Loans originated
from early 2024 are indexed to the 1-Year Constant Maturity Treasury index, plus a margin. The interest rates on these mortgages are adjusted
once a year. For older loans, the limitation on annual adjustments are mostly at 1.00% while loans originated since 2024 have an annual
limitation of 2.00% per adjustment period. The annual lifetime cap on older loans is 5.00% above the original rate and 6.00% on newer
loans, with limitations on adjustments generally of one percentage point per adjustment period, and a lifetime cap of five percentage
points. We determine loan fees charged, interest rates and other provisions of mortgage loans on the basis of our own pricing criteria
and competitive market conditions. Some loans originated by the Banks have an additional advance clause which allows the borrower to obtain
additional funds at prevailing interest rates, subject to managements' approval.

 At June 30, 2025, the Company's loan portfolio
included $258.9 million in adjustable-rate residential mortgage loans, or 93.8% of the Company's residential mortgage loan portfolio.

 The retention of adjustable-rate loans in the
portfolio helps reduce our exposure to increases in prevailing market interest rates. However, there are unquantifiable credit risks
resulting from potential increases in costs to borrowers in the event of upward repricing of adjustable-rate loans. It is possible that
during periods of rising interest rates, the risk of default on adjustable-rate loans may increase due to increases in interest costs
to borrowers. Further, although adjustable-rate loans allow us to increase the sensitivity of our interest-earning assets to changes
in interest rates, the extent of this interest sensitivity is limited by the initial fixed-rate period before the first adjustment and
the periodic and lifetime interest rate adjustment limitations. Accordingly, there can be no assurance that yields on our adjustable-rate
loans will fully adjust to compensate for increases in our cost of funds. Finally, adjustable-rate loans may decrease at a pace faster
than decreases in our cost of funds, resulting in reduced net income. In recent months, the Company has attempted to shift direction
from adjustable-rate loans secured by owner-occupied homes. The Company is well-positioned to originate fixed-rate loans secured by owner-occupied
homes for sale into the secondary market. Doing so will free capital and liquidity for potential investment in higher-yielding types
of assets.

 While one- to four-family residential real estate
loans are normally originated with up to 30-year terms, such loans typically remain outstanding for substantially shorter periods because
borrowers often prepay their loans in full upon sale of the mortgaged property or upon refinancing the original loan. Therefore, average
loan maturity is a function of, among other factors, the level of purchase and sale activity in the real estate market, prevailing interest
rates and the interest rates payable on outstanding loans.

 The Banks offer various programs for the purchase
and refinance of one- to four-family loans. Most of these loans have loan-to-value ratios of 80% or less, based on an appraisal provided
by a state licensed or certified appraiser. For owner-occupied properties, the borrower may be able to borrow up to 95% of the value
if they secure and pay for private mortgage insurance or they may be able to obtain a second mortgage (at a higher interest rate) in
which they borrow up to 90% of the value. The Boards of Directors of the Banks may approve a loan above the 80% loan-to-value ratio without
such enhancements.

 Construction Loans. We originate
loans for a term of one year or less to individuals to finance the construction of residential dwellings for personal use or for use
as rental property. On a case-by-case basis we consider construction loans on other than owner-occupied, residential property. Due to
demand in our local markets, we have also increased lending to borrowers who are building homes to sell. These tend to be established
borrowers building one or a few moderately-priced homes. At June 30, 2025 construction loans totaled $9.3 million, or 2.8%, of our total
loan portfolio. Our construction loans generally provide for the payment of interest only during the construction phase, which is usually
9 to 15 months. Loans generally can be made with a maximum loan to value ratio of 80% of the appraised value. Funds are disbursed as
progress is made toward completion of the construction based on site inspections by qualified bank staff or professional appraisers.

 Construction financing is generally considered
to involve a higher degree of risk of loss than long-term financing on improved, occupied real estate. Risk of loss on a construction
loan depends largely upon the accuracy of the initial estimate of the property's value at completion of construction or development
and the estimated cost (including interest) of construction. During the construction phase, a number of factors could result in delays
and cost overruns. If the estimate of construction costs proves to be inaccurate, we may be required to advance funds beyond the amount
originally committed to permit completion of the development. If the estimate of value proves to be inaccurate, we may be confronted,
at or before the maturity of the loan, with a project having a value which is insufficient to assure full repayment. As a result of the
foregoing, construction lending often involves the disbursement of substantial funds with repayment dependent, in part, on the success
of the ultimate project rather than the ability of the borrower or guarantor to repay principal and interest. If we are forced to foreclose
on a project before or at completion due to a default, there can be no assurance that we will be able to recover the unpaid balance and
accrued interest on the loan, as well as related foreclosure and holding costs.

 Multi-Family Loans. We offer mortgage
loans secured by multi-family property (residential real estate comprised of five or more units.) At June 30, 2025, multi-family loans
totaled $15.5 million, or 4.7%, of our total loan portfolio. We originate multi-family real estate loans for terms of generally 25 years
or less. Loan amounts generally do not exceed 80% of the appraised value and tend to range much lower.

 Nonresidential Loans. As opportunities
arise, we offer mortgage loans secured by nonresidential real estate, which is generally secured by commercial office buildings, churches,
and properties used for other purposes. At June 30, 2025, nonresidential real estate loans totaled $31.7 million, or 9.6% of our total
loan portfolio. We originate nonresidential real estate loans for terms of generally 25 years or less and loan amounts generally do not
exceed 80% of the appraised value and tend to range much lower.

 Loans secured by multi-family and nonresidential
real estate generally have larger balances and involve a greater degree of risk than one- to four-family residential mortgage loans.
Of primary concern in multi-family and nonresidential real estate lending is the borrower's creditworthiness and the feasibility
and cash flow potential of the project. Payments on loans secured by income properties often depend on successful operation and management
of the properties. As a result, repayment of such loans may be subject to a greater extent than residential real estate loans to adverse
conditions in the real estate market or the economy. To monitor cash flows on income properties, we require borrowers and/or loan guarantors
to provide annual financial statements on larger multi-family and commercial real estate loans. In reaching a decision on whether to
make a multi-family or nonresidential real estate loan, we consider the net cash flow of the project, the borrower's expertise,
credit history and the value of the underlying property.

 Commercial Non-mortgage Loans. At
June 30, 2025, commercial non-mortgage loans totaled $691,000, or 0.2%, of our total loan portfolio. We do not emphasize commercial non-mortgage
loans, which may be secured by vehicles used in business or by inventory and equipment of the business or may be unsecured, although
we do originate such loans on a limited basis and generally require a pre-existing relationship with the Bank. These loans are made only
to businesses in our local market and we generally require personal guarantees of well-established individuals for these loans. Commercial
loans involve an even greater degree of risk than real estate loans.

 Consumer Lending. Our consumer
loans include home equity lines of credit, loans secured by savings deposits, automobile loans and unsecured or personal loans. At June
30, 2025, our consumer loan balance totaled $16.3 million, or 5.0%, of our total loan portfolio. Of the consumer loan balance at June
30, 2025, $14.6 million were home equity loans, $813,000 were loans secured by savings deposits and $885,000 were automobile or unsecured
loans. Our home equity loans are made on the security of residential real estate and have terms of up to 15 years. Most of our home equity
loans are second mortgages subordinate only to first mortgages also held by the bank and do not exceed 80% of the estimated value of
the property, less the outstanding principal of the first mortgage, although we do offer home equity loans up to 90% of the value less
the balance of the first mortgage at a premium rate to qualified borrowers. These loans are not secured by private mortgage insurance.
Our home equity loans require the monthly payment of 1.0% to 2.0% of the unpaid principal until maturity, when the remaining unpaid principal,
if any, is due. Home equity loans bear variable rates of interest indexed to the prime rate for loans with 80% or less loan-to-value
ratio, and 2% above the prime rate for loans with a loan-to-value ratio in excess of 80%. Interest rates on these loans can be adjusted
monthly. At June 30, 2025, the total outstanding home equity loans amounted to 4.5% of the Company's total loan portfolio.

 Loans secured by savings are originated for up
to 90% of the depositor's savings account balance. The interest rate is varying percentage points above the rate paid on the savings
account, and the account must be pledged as collateral to secure the loan. At June 30, 2025, loans on savings accounts totaled 0.3% of
the Company's total loan portfolio.

 Consumer loans generally entail greater risk
than do residential mortgage loans, particularly in the case of consumer loans which are unsecured or secured by rapidly depreciable
assets. Automobile and unsecured loans at June 30, 2025, totaled 0.3% of the Company's total loan portfolio.

 Loan Originations, Purchases and Sales.
 Loan originations come from a number of sources. The primary source of loan originations are our in-house loan originators, and to
a lesser extent, advertising and referrals from customers and real estate agents. First Federal of Kentucky sells fixed-rate loans with
longer maturities to the Federal Home Loan Bank of Cincinnati ("FHLB-Cincinnati"). We earn income on the loans sold through
fees we charge on the origination, interest spread premiums earned when we sell the loans, and loan servicing fees on an on-going basis,
because servicing rights are retained on such loans. At June 30, 2025, $25.3 million in loans were being serviced by First Federal of
Kentucky for the FHLB-Cincinnati.

 Loan Approval Procedures and Authority.
 Our lending activities follow written, nondiscriminatory, underwriting standards and loan origination procedures established by each
Bank's Board of Directors and management. Each Bank's loan staff can approve or deny loans totaling $500,000 or less. First
Federal of Hazard's loan committee consists of its two senior officers, while First Federal of Kentucky's loan approval process
allows for various combinations of experienced bank officers to approve or deny loans. Loans that do not conform to this criteria must
be submitted to the Board of Directors or Loan Committee composed of at least three directors, for approval.

 It is the Company's practice to record
a lien on the real estate securing a loan. The Banks generally do not require title insurance, although it may be required for loans
made in certain programs. The Banks do require fire and casualty insurance on all security properties and flood insurance when the collateral
property is located in a designated flood hazard area.

 Loans to One Borrower. The maximum
amount either Bank may lend to one borrower and the borrower's related entities is limited, by regulation, to generally 15% of
that Bank's stated capital and the allowance for loan losses. At June 30, 2025, the regulatory limit on loans to one borrower was
$2.8 million for First Federal of Hazard and $4.6 million for First Federal of Kentucky. Neither of the Banks had lending relationships
in excess of their respective lending limits. However, loans or participations in loans may be sold among the Banks, which may allow
a borrower's total loans with the Company to exceed the limit of either individual bank.

 Loan Commitments. The Banks issue
commitments for the funding of mortgage loans. Generally, these commitments exist from the time the underwriting of the loan is completed
and the closing of the loan. Generally, these commitments are for a maximum of 30 or 60 days but management routinely extends the commitment
if circumstances delay the closing. Management reserves the right to verify or re-evaluate the borrower's qualifications and to
change the rates and terms of the loan at that time.

 If conditions exist whereby either Bank experiences
a significant increase in loans outstanding or commits to originate loans that are riskier than a typical one- to four-family mortgage,
management and the boards will consider reflecting the anticipated loss exposure in a separate liability. Upon implementation of ASU
2016-13 or the current expected credit loss (CECL) model at July 1, 2023, the Banks began to utilize a separate liability to reflect
anticipated credit losses on loan commitments. At June 30, 2025, this amount totaled $59,000.

 Both Banks offer construction loans that either
have a separate construction period of one year or less, approved with a simultaneous commitment for permanent financing, or a loan that
has a construction phase of one year or less that is convertible to permanent financing.

 Interest Rates and Loan Fees. Interest
rates charged on mortgage loans are primarily determined by competitive loan rates offered in our market areas and our yield objectives.
Mortgage loan rates reflect factors such as prevailing market interest rate levels, the supply of money available to the savings industry
and the demand for such loans. These factors are in turn affected by general economic conditions, the monetary policies of the federal
government, including the Board of Governors of the Federal Reserve System, the general supply of money in the economy, tax policies
and governmental budget matters.

 We receive fees in connection with late payments
on our loans. Depending on the type of loan and the competitive environment for mortgage loans, we may charge an origination fee on all
or some of the loans we originate. We may also offer a menu of loans whereby the borrower may pay a higher fee to receive a lower rate
or to pay a smaller or no fee for a higher rate.

 Delinquencies. When a borrower
fails to make a required loan payment, we take a number of steps to have the borrower cure the delinquency and restore the loan to current
status. We make initial contact with the borrower when the loan becomes 15 days past due. Subsequently, bank staff, under the direct
supervision of senior management and with consultation by the Banks' attorneys, attempt to contact the borrower and determine their
status and plans for resolving the delinquency. However, once a delinquency reaches 90 days, management considers foreclosure and, if
the borrower has not provided a reasonable plan (such as selling the collateral, securing a commitment from another lender to refinance
the loan or submitting a plan to repay the delinquent principal, interest, escrow, and late charges) the foreclosure suit may be initiated.
In some cases, management may delay initiating the foreclosure suit if, in management's opinion, the Banks' chance of loss
is minimal (such as with loans where the estimated value of the property greatly exceeds the amount of the loan) or if the original borrower
is deceased or incapacitated. If a foreclosure action is initiated and the loan is not brought current, paid in full, or refinanced with
another lender before the foreclosure sale, the real property securing the loan is sold at foreclosure. The Banks are represented at
the foreclosure sale and in most cases will bid an amount equal to the Banks' investment (including interest, advances for taxes
and insurance, foreclosure costs, and attorney's fees). If another bidder outbids the Bank, the Bank's investment is received
in full. If another bidder does not outbid the Banks, the Banks acquire the property and attempt to sell it to recover their investment.

 A borrower's filing for bankruptcy can
alter the methods available to the Banks to seek collection. In such cases, the Banks work closely with legal counsel to resolve the
delinquency as quickly as possible.

 We may consider loan workout arrangements with
certain borrowers under certain conditions. Management of each bank provides a report to its board of directors on a monthly basis of
all loans more than 60 days delinquent, including loans in foreclosure, and all property acquired through foreclosure.

 Investment Activities

 We have legal authority to invest in various
types of liquid assets, including U.S. Treasury obligations, securities of various federal agencies and state and municipal governments,
mortgage-backed securities and certificates of deposit of federally insured institutions. We also are required to maintain an investment
in FHLB-Cincinnati stock, the level of which is largely dependent on our level of borrowings from the FHLB.

 At June 30, 2025, our investment portfolio consisted
of mortgage-backed securities issued and guaranteed by Fannie Mae, Freddie Mac and Ginnie Mae with stated final maturities of 30 years
or less. The Company held no equity position with Fannie Mae or Freddie Mac.

 Our investment objectives are to provide an alternate
source of low-risk investments when loan demand is insufficient, to provide and maintain liquidity, to maintain a balance of high quality,
diversified investments to minimize risk, to provide collateral for pledging requirements, to establish an acceptable level of interest
rate risk, and to generate a favorable return. The Banks' Board of Directors has the overall responsibility for each institution's
investment portfolio, including approval of investment policies. The management of each Bank may authorize investments as prescribed
in each of the Bank's investment policies.

 Bank Owned Life Insurance

 First Federal of Kentucky owns several Bank Owned
Life Insurance policies totaling $3.0 million at June 30, 2025. The purpose of these policies is to offset future escalation of the costs
of non-salary employee benefit plans such as First Federal of Kentucky's defined benefit retirement plan and First Federal of Kentucky's
health insurance plan. The lives of certain key Bank employees are insured, and First Federal of Kentucky is the sole beneficiary and
will receive any benefits upon the employee's death. The policies were purchased from four highly-rated life insurance companies.
The design of the plan allows for the cash value of the policy to be designated as an asset of First Federal of Kentucky. The asset's
value will increase by the crediting rate, which is a rate set by each insurance company and is subject to change on an annual basis.
The growth of the value of the asset will be recorded as other operating income. Management does not foresee any expense associated with
the plan. Because this is a life insurance product, current federal tax laws exempt the income from federal income taxes.

 Bank owned life insurance is not secured by any
government agency nor are the policies' asset values or death benefits secured specifically by tangible property. Great care was
taken in selecting the insurance companies, and the bond ratings and financial condition of these companies are monitored on a quarterly
basis. The failure of one of these companies could result in a significant loss to First Federal of Kentucky. Other risks include the
possibility that the favorable tax treatment of the income could change, that the crediting rate will not be increased in a manner comparable
to market interest rates, or that this type of plan will no longer be permitted by First Federal of Kentucky's regulators. This
asset is considered illiquid because, although First Federal of Kentucky may terminate the policies and receive the original premium
plus all earnings, such an action would require the payment of federal income taxes on all earnings since the policies' inception.

 Deposit Activities and Other Sources of Funds

 General. Deposits, loan repayments
and maturities, redemptions, sales and repayments of investment and mortgage-backed securities are the major sources of our funds for
lending and other investment purposes. Loan repayments are a relatively stable source of funds, while deposit inflows and outflows and
loan prepayments are significantly influenced by general interest rates and money market conditions.

 Deposit Accounts. The vast majority
of our depositors are residents of the Banks' respective market areas. Deposits are attracted from within our market areas through
the offering of passbook savings and certificate accounts, and, at First Federal of Kentucky, checking accounts and individual retirement
accounts ("IRAs"). We began utilizing brokered funds in June 2023 and had $44.0 million in such deposits at June 30, 2025.
Deposit account terms vary according to the minimum balance required, the time periods the funds must remain on deposit and the interest
rate, among other factors. In determining the terms of our deposit accounts, we consider the rates offered by our competition, profitability
to us, asset liability management and customer preferences and concerns. We review our deposit mix and pricing on an ongoing basis as
needed.

 Borrowings. First Federal of Hazard
and First Federal of Kentucky borrow from the FHLB-Cincinnati to supplement their supplies of investable funds and to meet deposit withdrawal
requirements. The Federal Home Loan Bank functions as a central reserve bank providing credit for member financial institutions. As members,
each Bank is required to own capital stock in the FHLB-Cincinnati and is authorized to apply for advances on the security of such stock
and certain of our mortgage loans and other assets (principally securities which are obligations of, or guaranteed by, the United States),
provided certain standards related to creditworthiness have been met. Advances are made under several different programs, each having
its own interest rate and range of maturities. Depending on the program, limitations on the amount of advances are based either on a
fixed percentage of an institution's net worth or on the Federal Home Loan Bank's assessment of the institution's creditworthiness.

 Subsidiary Activities

 The Company has no other wholly owned subsidiaries
other than First Federal of Hazard and Frankfort First Bancorp. Frankfort First Bancorp has one subsidiary, First Federal of Kentucky.

 As federally chartered savings institutions, the Banks are permitted
to invest an amount equal to 2% of assets in subsidiaries, with an additional investment of 1% of assets where such investment serves
primarily community, inner-city and community-development purposes. Under such limitations, as of June 30, 2025, First Federal of Hazard
and First Federal of Kentucky were authorized to invest up to $1.7 million and $5.0 million, respectively, in the stock of or loans to
subsidiaries, including the additional 1% investment for community, inner-city and community development purposes.

 Competition

 We face significant competition for the attraction
of deposits and origination of loans. Our most direct competition for deposits has historically come from the banks and credit unions
operating in our market areas and, to a lesser extent, from other financial services companies, such as investment brokerage firms. We
also face competition for depositors' funds from money market funds and other corporate and government securities. Several of our
competitors are significantly larger than us and, therefore, have significantly greater resources. We expect competition to increase
in the future as a result of legislative, regulatory and technological changes and the continuing trend of consolidation in the financial
services industry. Technological advances, for example, have lowered the barriers to enter new market areas, allowed banks to expand
their geographic reach by providing services over the Internet and made it possible for non-depository institutions to offer products
and services that traditionally have been provided by banks. Changes in federal law permit affiliation among banks, securities firms
and insurance companies, which promotes a competitive environment in the financial services industry. Competition for deposits and the
origination of loans could limit our growth in the future.

 According to the Federal Deposit Insurance Corporation
("FDIC"), at June 30, 2025, the latest date for which data is available, First Federal of Hazard had a deposit market share
of 7.2% in Perry County. Its largest competitors, Hazard Bancorp (Peoples Bank & Trust Company of Hazard,), Community Trust Bancorp,
Inc. (Community Trust Bank), and 1 st Trust Bank, Inc., had Perry County deposit market shares of 37.1%, 29.3% and 22.1%, respectively.
First Federal of Hazard's competition for loans comes primarily from financial institutions in its market area and, to a lesser
extent, from other financial services providers, such as mortgage companies and mortgage brokers. Competition for loans also comes from
the increasing number of non-depository financial services companies entering the mortgage market, such as insurance companies, securities
companies and specialty finance companies.

 First Federal of Kentucky's principal competitors
for deposits in its market area are other banking institutions, such as commercial banks and credit unions, as well as mutual funds and
other investments. First Federal of Kentucky principally competes for deposits by offering a variety of deposit accounts, convenient
business hours and branch locations, customer service and a well-trained staff. According to the FDIC, at June 30, 2025, First Federal
of Kentucky had deposit market share of 8.2%, 8.2% and 17.5% for the Kentucky counties of Franklin, Boyle and Garrard. Its largest competitors
for depositors are the Boyle Bancorp, Inc. (The Farmers National Bank of Danville) at 27.4%, Wesbanco Bank, Inc. (Wesbanco) at 14.2%
and Community Trust Bancorp, Inc., Traditional Bank, Inc, at 7.8%, (Community Trust Bank) at 7.7% market share in the three-county area.
Boyle Bancorp, Wesbanco, Inc., Traditional Bank, Inc. and Community Trust Bancorp, Inc. had assets at June 30, 2025, of $1.0 billion,
$27.5 billion, $2.4 billion, and $6.4 billion, respectively. The Bank also faces considerable competition from credit unions including
the Commonwealth Credit Union ($2.6 billion in assets) and the Expree Credit Union ($109.6 million in assets). First Federal of Kentucky
competes for loans with other depository institutions, as well as specialty mortgage lenders and brokers and consumer finance companies.
First Federal of Kentucky principally competes for loans on the basis of interest rates and the loan fees it charges, the types of loans
it originates and the convenience and service it provides to borrowers. In addition, First Federal of Kentucky believes it has developed
strong relationships with the businesses, real estate agents, builders and general public in its market area.

 Personnel

 At June 30, 2025, we had 54 full-time employees
and two part-time employees, none of whom was represented by a collective bargaining unit. We believe our relationship with our employees
is good.

 Regulation and Supervision

 General. First Federal of Hazard
and First Federal of Kentucky are subject to extensive regulation, examination and supervision by the Office of the Comptroller of the
Currency (OCC), as their primary federal regulator, and the Federal Deposit Insurance Corporation (FDIC), as insurer of deposits. First
Federal of Hazard and First Federal of Kentucky are each members of the Federal Home Loan Bank System and their deposit accounts are
insured up to applicable limits by the Deposit Insurance Fund (DIF) of the FDIC. First Federal of Hazard and First Federal of Kentucky
must each file reports with the OCC and the FDIC concerning their activities and financial condition in addition to obtaining regulatory
approvals before entering into certain transactions such as mergers with, or acquisitions of, other financial institutions. There are
periodic examinations by the OCC and, under certain circumstances, the FDIC to evaluate First Federal of Hazard's and First Federal
of Kentucky's safety and soundness and compliance with various regulatory requirements. The Board of Governors of the Federal Reserve
System (Federal Reserve Board), the agency that regulates and supervises bank and savings and loan holding companies, supervises and
regulates Kentucky First and First Federal MHC. Kentucky First and First Federal MHC, as savings and loan holding companies, are required
to file certain reports with, and are subject to examination by, and otherwise are required to comply with the rules and regulations
of the Federal Reserve Board. This regulatory structure is intended primarily for the protection of the DIF and depositors.

 The Dodd-Frank Wall Street Reform and Consumer
Protection Act of 2010 (Dodd-Frank Act) significantly changed the financial regulatory regime in the United States. Since the enactment
of the Dodd-Frank Act, U.S. banks and financial services firms have been subject to enhanced regulation and oversight. Several provisions
of the Dodd-Frank Act remain subject to further rulemaking, guidance, and interpretation by the federal banking agencies.

 Enacted in 2018, the Economic Growth, Regulatory
Relief, and Consumer Protection Act of 2018 (EGRRCPA) amended certain provisions of the Dodd-Frank Act. EGRRCPA provides limited regulatory
relief to certain financial institutions, while preserving the existing framework under which U.S. financial institutions are regulated.
In addition to amending the Dodd-Frank Act, EGRRCPA also includes several provisions that positively affect smaller banking institutions
(e.g., those with less than $10 billion in assets) like the Banks. Specific provisions of the EGRRCPA that benefit smaller banks include
modifications to the "qualified mortgage" criteria under the "ability to repay" rules for certain mortgages that
are held and maintained on the Bank's retained portfolio as well as relief from certain capital requirements with the creation
of a "community bank leverage ratio." See "Federal Savings Association Regulation – Capital Requirements."

 Certain of the regulatory requirements that are
applicable to First Federal of Hazard, First Federal of Kentucky, Kentucky First and First Federal MHC are described below. This discussion
does not purport to be a complete description of the laws and regulations involved and is qualified in its entirety by the actual laws
and regulations. Moreover, laws and regulations are subject to changes by the U.S. Congress or the regulatory agencies as applicable.

 Agreements with Regulators. On
August 13, 2024, First Federal of Kentucky entered into a formal written agreement (the "Agreement") with the OCC, which
became effective as of the same date. The Agreement will remain effective until it is amended by First Federal of Kentucky and the OCC,
or the OCC modifies, waives or terminates the Agreement. As a result of the Agreement, pursuant to 12 C.F.R. § 5.51(c)(7)(ii), First
Federal of Kentucky is in "troubled condition," and is not an "eligible savings association" for purposes of
12 C.F.R. § 5.3, unless otherwise informed in writing by the OCC. In addition to the Agreement, the OCC has also imposed individual
minimum capital requirements ("IMCRs") on First Federal of Kentucky. The IMCRs require First Federal of Kentucky to maintain
a common equity tier 1 capital ratio of at least 9.0%, a tier 1 capital ratio of at least 11.0%, a total capital ratio of at least 12.0%,
and a leverage ratio of at least 9.0%.

 Under the terms of the Agreement, First Federal
of Kentucky is required to take the following actions within the time frames specified in the Agreement:

 create a compliance committee
 composed of at least three of First Federal of Kentucky's directors to monitor and oversee First Federal of Kentucky's
 compliance with the provisions of the Agreement and submit quarterly evaluation reports to First Federal of Kentucky's board
 of directors regarding actions First Federal of Kentucky has taken to comply with the Agreement and the results and status of such
 actions;

 submit to the OCC, adopt
 and implement an acceptable revised written three-year strategic plan establishing objectives for First Federal of Kentucky's
 overall risk profile, balance sheet mix, funding structure, interest rate risk, liquidity and capital adequacy, earnings performance,
 and asset and core deposit growth, together with strategies to achieve those objectives;

 submit to the OCC, adopt
 and implement an acceptable revised written succession plan for First Federal of Kentucky that is designed to promote adequate staffing
 and continuity of capable management;

 adopt a revised written
 liquidity risk management program for First Federal of Kentucky that provides for the identification, measurement, monitoring, and
 control of First Federal of Kentucky's liquidity risk exposure, and that emphasizes the importance of cash flow projections,
 diversified funding sources, a cushion of highly liquid assets, robust liquidity stress testing scenario analyses, and a formal,
 well-developed contingency funding plan as primary tools for measuring and managing liquidity risk; and

 adopt a revised written
 interest rate risk program that includes risk management systems to identify, measure, monitor, and control interest rate risk.

 The Agreement requires First Federal of Kentucky's
Board to (i) ensure that First Federal of Kentucky timely adopts and implements all corrective actions required by the Agreement and
(ii) verify that First Federal of Kentucky adheres to the corrective actions and that they are effective in addressing First Federal
of Kentucky's deficiencies that resulted in the Agreement. First Federal of Kentucky's Board and management are committed
to fully addressing the provisions of the Agreement within the required time frames. As of the date of this filing, First Federal of
Kentucky's Board and management believe that First Federal of Kentucky has made progress toward addressing the deficiencies that
resulted in the Agreement and intends to satisfy the Agreement's requirements as expeditiously as possible. For additional information,
see Item 1A, "Risk Factors - 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 " and Note K - Stockholders'
Equity and Regulatory Capital of the Notes to Consolidated Financial Statements included in Item 8 of this Form 10-K.

 Regulation of Federal Savings Associations

 Business Activities. Federal law
and regulations, primarily the Home Owners' Loan Act and the regulations of the OCC, govern the activities of federal savings associations,
such as First Federal of Hazard and First Federal of Kentucky. These laws and regulations delineate the nature and extent of the activities
in which federal savings associations may engage. In particular, certain lending authority for federal savings associations ( e.g.,
commercial, nonresidential real property loans and consumer loans) is limited to a specified percentage of the association's capital
or assets.

 Branching. Federal savings associations
are authorized to establish branch offices in any state or states of the United States and its territories, subject to the approval of
the OCC.

 Capital Requirements. Federal regulations
require insured depository institutions, including federal savings associations to meet four minimum capital standards: a 4.0% Tier 1
leverage ratio; a 4.5% common equity Tier 1 ratio; a 6.0% Tier 1 capital to risk-weighted assets ratio; and an 8% Total capital to risk-weighted
assets ratio. These requirements were effective January 1, 2015, and are the result of a final rule implementing recommendations of the
Basel Committee on Banking Supervision (Basel III) and certain requirements of the Dodd Frank Act. The regulations also include a "capital
conservation buffer" of 2.5% above the regulatory minimum capital requirements, which must consist entirely of common equity Tier
1 capital and result in the following minimum ratios: (1) a common equity Tier 1 capital ratio of 7.0%, (2) a Tier 1 capital ratio of
8.5%, and (3) a total capital ratio of 10.5%. The capital conservation buffer requirement was phased in beginning in January 2016 at
0.625% of risk-weighted assets and increased by that amount each year until fully implemented in January 2019. An institution will be
subject to limitations on paying dividends, engaging in share repurchases and paying discretionary bonuses if its capital level falls
below the buffer amount.

 Tier 1 capital is generally defined as common
stockholders' equity (including retained earnings), certain non-cumulative perpetual preferred stock and related surplus and minority
interests in equity accounts of consolidated subsidiaries, less intangibles other than certain mortgage servicing rights and credit card
relationships. The regulations eliminate the inclusion of certain instruments, such as trust preferred securities, from Tier 1 capital.
Instruments issued before May 19, 2010, are grandfathered for companies with consolidated assets of $15 billion or less. The components
of Tier 2 capital currently include cumulative preferred stock, long-term perpetual preferred stock, mandatory convertible securities,
subordinated debt and intermediate preferred stock, the allowance for loan and lease losses limited to a maximum of 1.25% of risk-weighted
assets and up to 45% of unrealized gains on available-for-sale equity securities with readily determinable fair market values. Overall,
the amount of Tier 2 capital included as part of total capital cannot exceed 100% of core capital. Total capital is defined as core capital
and supplementary capital, less certain specified deductions from total capital such as reciprocal holdings of depository institution
capital, instruments and equity investments. For purposes of determining the amount of risk-weighted assets, all assets, including certain
off-balance sheet assets, recourse obligations, residual interests and direct credit substitutes, are multiplied by a risk-weight factor
of 0% to 150%, as assigned by the capital regulation based on the risks believed inherent in the type of asset.

 The EGRRCPA required the federal banking agencies,
including the OCC, to establish a "community bank leverage ratio" (CBLR) for qualifying community banking organizations having
less than $10 billion in average total consolidated assets and a leverage ratio of greater than 9%. The CBLR is an alternative framework
that permits qualifying institutions to calculate a leverage ratio to measure capital adequacy. Institutions opting into the CBLR framework
are not be required to calculate or report risk-based capital and are deemed to have met the "well capitalized" ratio requirements
and be in compliance with the generally applicable capital rule if they meet the CBLR ratio. The CBLR ratio is the ratio of a banking
organization's Tier 1 capital to its average total consolidated assets as reported on the banking organization's applicable
regulatory filings. The federal agencies published a final rule on October 9, 2020, effective November 9, 2020, that set the CBLR at
9% beginning on January 1, 2022. The CARES Act directed the federal banking agencies to issue an interim rule temporarily lowering the
CBLR ratio to 8% which the agencies did with a transition back to 9% by year-ended 2021. The Banks elected to use the CBLR framework
effective for the quarter ended March 31, 2020. As of June 30, 2025, the capital levels of First Federal of Hazard and First Federal
of Kentucky exceed the minimum required capital amounts for capital adequacy. See Note K-Stockholders' Equity and Regulatory Capital
in notes to financial statements.

 In August 2024, First Federal of Kentucky entered
into an Agreement with the OCC. The OCC has also imposed individual minimum capital requirements ("IMCRs") which require
First Federal of Kentucky to achieve and maintain capital levels in excess of the minimum capital standards required under OCC's
Prompt Corrective Action framework. Under the IMCRs, First Federal of Kentucky must achieve and maintain a common equity tier 1 capital
ratio of at least 9.0%, a tier 1 capital ratio of at least 11.0%, a total capital ratio of at least 12.0%, and a leverage ratio of at
least 9.0%. At June 30, 2025, First Federal of Kentucky exceeded the requirements of the IMCRs as its common equity tier 1 capital ratio
was 16.83%, its tier 1 capital ratio was 16.83%, its total capital ratio was 16.83%, and its leverage ratio was 9.97%. For additional
information, see Item 1A, "Risk Factors - 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 " and Note K - Stockholders'
Equity and Regulatory Capital of the Notes to Consolidated Financial Statements included in Item 8 of this Form 10-K.

 Prompt Corrective Regulatory Action.
 Federal law requires the federal banking agencies to take "prompt corrective action" should an insured depository institution
fail to meet certain capital adequacy standards. Prompt corrective action regulations provide five capital classifications: well capitalized,
adequately capitalized, undercapitalized, significantly undercapitalized and critically undercapitalized, although these terms are not
used to represent overall financial condition. Under the regulations, an institution is deemed to be "well capitalized" if
it has a total risk-based capital ratio of 10.0% or greater, a Tier 1 risk-based capital ratio of 8.0% or greater, a leverage ratio of
5.0% or greater and a common equity Tier 1 ratio of 6.5% or greater. An institution is "adequately capitalized" if it has
a total risk-based capital ratio of 8.0% or greater, a Tier 1 risk-based capital ratio of 6.0% or greater, a leverage ratio of 4.0% or
greater and a common equity Tier 1 ratio of 4.5% or greater. An institution is "undercapitalized" if it has a total risk-based
capital ratio of less than 8.0%, a Tier 1 risk-based capital ratio of less than 6.0%, a leverage ratio of less than 4.0% or a common
equity Tier 1 ratio of less than 4.5%. An institution is deemed to be "significantly undercapitalized" if it has a total
risk-based capital ratio of less than 6.0%, a Tier 1 risk-based capital ratio of less than 4.0%, a leverage ratio of less than 3.0% or
a common equity Tier 1 ratio of less than 3.0%. An institution is considered to be "critically undercapitalized" if it has
a ratio of tangible equity (as defined in the regulations) to total assets that is equal to or less than 2.0%.

 If less than adequately capitalized, regulatory
approval is required to accept broker deposits. The OCC is required to take certain supervisory actions against undercapitalized federal
savings associations, the severity of which depends upon the association's degree of undercapitalization. In addition, numerous
mandatory supervisory actions become immediately applicable to an undercapitalized association, including, but not limited to, increased
monitoring by regulators and restrictions on growth, capital distributions and expansion. The OCC could also take any one of a number
of discretionary supervisory actions, including the issuance of a capital directive and the replacement of senior executive officers
and directors. Significantly and undercapitalized associations are subject to additional mandatory and discretionary measures.

 Loans to One Borrower. Federal
law provides that federal savings associations are generally subject to the limits on loans to one borrower applicable to national banks.
Subject to certain exceptions, a federal savings association may not make a loan or extend credit to a single or related group of borrowers
in excess of 15% of its unimpaired capital and surplus. An additional amount may be lent, equal to 10% of unimpaired capital and surplus,
if secured by specified readily-marketable collateral, which generally does not include real estate.

 Standards for Safety and Soundness.
As required by statute, the federal banking agencies have adopted Interagency Guidelines prescribing Standards for Safety and Soundness.
The guidelines set forth the safety and soundness standards that the federal banking agencies use to identify and address problems at
insured depository institutions before capital becomes impaired. If the OCC determines that a federal savings association fails to meet
any standard prescribed by the guidelines, the OCC may require the institution to submit an acceptable plan to achieve compliance with
the standard. If an institution fails to meet these standards, the OCC may require the institution to implement an acceptable compliance
plan. Failure to implement such a plan can result in further enforcement action, including the issuance of a cease-and-desist order or
the imposition of civil money penalties.

 Limitation on Capital Distributions.
OCC regulations impose limitations upon all capital distributions by a federal savings association, including cash dividends, payments
to repurchase its shares and payments to shareholders of another institution in a cash-out merger. Under the regulations, an application
to and the prior approval of the OCC is required before any capital distribution if, among other circumstances the association will not
remain an "eligible" savings association ( i.e., generally, well capitalized and with examination and Community Reinvestment
Act ratings in the two top categories), the total capital distributions for the calendar year exceed net income for that year plus the
amount of retained net income for the preceding two years, the federal savings association is directly or indirectly controlled by a
mutual savings and loan holding company or the distribution would otherwise be contrary to a statute, regulation or agreement with the.
In addition, the federal savings association must provide 30 days prior notice to the Federal Reserve Board of the capital distribution
if, like First Federal of Hazard and First Federal of Kentucky, it is a subsidiary of a holding company. If First Federal of Hazard's
or First Federal of Kentucky's capital were ever to fall below its regulatory requirements or the OCC notified it that it was in
need of increased supervision, its ability to make capital distributions could be restricted. In addition, the OCC could prohibit a proposed
capital distribution that would otherwise be permitted by the regulation, if the agency determines that such distribution would constitute
an unsafe or unsound practice. As a result of the Agreement with the OCC, pursuant to 12 C.F.R. § 5.51(c)(7)(ii), First Federal
of Kentucky is in "troubled condition," and is not an "eligible savings association" for purposes of 12 C.F.R.
§ 5.3, unless otherwise informed in writing by the OCC.

 Qualified Thrift Lender Test. Federal
law requires federal savings associations to meet a qualified thrift lender test. Under the test, a federal savings association is required
to either qualify as a "domestic building and loan association" under the Internal Revenue Code or maintain at least 65%
of its "portfolio assets" (total assets less: (i) specified liquid assets up to 20% of total assets; (ii) intangibles, including
goodwill; and (iii) the value of property used to conduct business) in certain "qualified thrift investments" (primarily
residential mortgages and related investments, including certain mortgage-backed securities, education loans, credit card loans and small
business loans) in at least 9 months out of each 12-month period.

 A savings association that fails the qualified
thrift lender test is immediately subject to certain operating restrictions, including restrictions on new activities, branching and
the payment of dividends. The Dodd-Frank Act also specifies that failing the qualified thrift lender test is a violation of law that
could result in an enforcement action. Failure to correct the violation within 12 months will cause the association's savings and
loan holding company to register as and be deemed a bank holding company. At June 30, 2025, First Federal of Hazard and First Federal
of Kentucky were in compliance with the qualified thrift lender test in each of the prior 12 months.

 Transactions with Related Parties.
Federal law limits the authority of First Federal of Hazard and First Federal of Kentucky to lend to, and engage in certain other transactions
(collectively, "covered transactions"), with "affiliates" ( e.g., any company that controls or is under
common control with an insured depository institution, including Kentucky First, First Federal MHC and their non-savings institution
subsidiaries). The aggregate amount of covered transactions with any individual affiliate is limited to 10% of the capital and surplus
of the savings association. The aggregate amount of covered transactions with all affiliates is limited to 20% of the savings association's
capital and surplus. Loans and other specified transactions with affiliates are required to be secured by collateral in an amount and
of a type described in federal law. The purchase of low-quality assets from affiliates is generally prohibited. Transactions with affiliates
must be on terms and under circumstances that are at least as favorable to the association as those prevailing at the time for comparable
transactions with non-affiliated companies. In addition, savings associations are prohibited from lending to any affiliate that is engaged
in activities that are not permissible for bank holding companies and no federal savings association may purchase the securities of any
affiliate other than a subsidiary. Transactions between sister depository institutions that are 80% or more owned by the same holding
company are exempt from the quantitative limits and collateral requirements.

 The Sarbanes-Oxley Act of 2002 generally prohibits
a company from making loans to its executive officers and directors. However, that law contains a specific exception for loans by a depository
institution to its executive officers and directors in compliance with federal banking laws. Under such laws, First Federal of Hazard's
and First Federal of Kentucky's authority to extend credit to executive officers, directors and 10% shareholders ("insiders"),
as well as entities such persons control, is limited. The law restricts both the individual and aggregate amount of loans First Federal
of Hazard and First Federal of Kentucky may make to insiders based, in part, on First Federal of Hazard's and First Federal of
Kentucky's respective capital positions and requires certain board approval procedures to be followed. Such loans must be made
on terms, including rates and collateral, substantially the same as, and follow credit underwriting procedures that are not less stringent
than, those prevailing for comparable transactions with unaffiliated persons and that do not involve more than the normal risk of repayment
or any other unfavorable features. There are additional restrictions applicable to loans to executive officers.

 Enforcement. The OCC has primary
enforcement responsibility over federal savings associations and has the authority to bring actions against the institution and all institution-affiliated
parties, including stockholders, and any attorneys, appraisers and accountants who knowingly or recklessly participate in wrongful action
likely to have an adverse effect on an insured institution. Formal enforcement actions may range from the issuance of a capital directive
or cease and desist order to removal of officers and/or directors to appointment of a receiver or conservator or termination of deposit
insurance. Civil penalties cover a wide range of violations and can amount to $25,000 per day, or even $1 million per day in especially
egregious cases. The FDIC has authority to recommend to the OCC that enforcement action to be taken with respect to a particular savings
association. If action is not taken by the OCC, the FDIC has authority to take such action under certain circumstances. Federal law also
establishes criminal penalties for certain violations of law.

 Assessments. Federal savings associations
pay assessments to the OCC to fund its operations. The general assessments, paid on a semi-annual basis, are based upon the savings association's
total assets, including consolidated subsidiaries, its financial condition and the complexity of its portfolio. During the current year,
our assessments totaled $97,000.

 Insurance of Deposit Accounts.
The deposits of both First Federal of Hazard and First Federal of Kentucky are insured up to applicable limits by the DIF administered
by the FDIC. Deposit insurance per account owner is currently $250,000. Under the FDIC's risk-based assessment system, insured
depository are assigned a risk category based on supervisory evaluations, regulatory capital levels and certain other factors. An institution's
assessment rate depends upon the category to which it is assigned, and certain adjustments specified by FDIC regulations. Institutions
deemed less risky pay lower assessments. The FDIC may adjust the scale uniformly, except that no adjustment can deviate more than two
basis points from the base scale without notice and comment. No institution may pay a dividend if in default of the federal deposit insurance
assessment. Assessment rates currently range from 1.5 to 30 basis points of total average assets (excluding PPP loans) less average tangible
equity.

 The FDIC has authority to increase insurance
assessments. A significant increase in insurance premiums would likely have an adverse effect on the operating expenses and results of
operations of the Banks. Management cannot predict what insurance assessment rates will be in the future.

 Federal Home Loan Bank System. First
Federal of Hazard and First Federal of Kentucky are members of the Federal Home Loan Bank System, which consists of 11 regional Federal
Home Loan Banks. The Federal Home Loan Bank provides a central credit facility primarily for member institutions. As members of the Federal
Home Loan Bank of Cincinnati, First Federal of Hazard and First Federal of Kentucky are each required to acquire and hold shares of capital
stock in that Federal Home Loan Bank. First Federal of Hazard and First Federal of Kentucky were in compliance with this requirement with
investments in Federal Home Loan Bank of Cincinnati stock at June 30, 2025, of $866,000 and $3.1 million, respectively.

 Reserve Requirements. Federal Reserve
Board regulations require insured depository institutions to maintain non-interest earning reserves against their transaction accounts
(primary interest-bearing and regular checking accounts). Required reserves must be in the form of vault cash and if vault cash does
not fully satisfy the required reserves, requirements may be satisfied in the form of a balance maintained with the appropriate Federal
Reserve Bank. The Federal Reserve Board generally makes annual adjustments to the tiered cash reserve requirements, however, effective
March 26, 2020, the reserve requirement was set to zero for all depository institutions.

 Community Reinvestment Act. All
insured depository institutions, including federal savings associations have a continuing and affirmative obligation consistent with
safe and sound operation to help meet the credit needs of their entire community, including low and moderate income neighborhoods. The
Community Reinvestment Act does not establish specific lending requirements or programs, nor does it limit an institution's discretion
to develop the types of products and services that it believes are best suited to its particular community consistent with the Community
Reinvestment Act. The Community Reinvestment Act requires the OCC, in connection with its examination of a savings association, to assess
the association's record of meeting the credit needs of its community and to take such record into account in its evaluation of
certain applications made by such association, including applications for mergers and acquisitions, and applications to open, relocate
or close a branch or facility.

 The Community Reinvestment Act requires public
disclosure of an institution's rating and requires the OCC to provide a written evaluation of an institution's Community
Reinvestment Act performance utilizing a four-tiered descriptive rating system. First Federal of Hazard and First Federal of Kentucky
each received a "Satisfactory" rating as a result of their most recent Community Reinvestment Act assessments.

 Privacy Standards. The
Banks are subject to FDIC regulations regarding the privacy protection provisions of the Gramm-Leach-Bliley Act. These regulations require
each of the Banks to disclose its privacy policy, including identifying with whom it shares "non-public personal information"
to customers at the time of establishing the customer relationship and annually thereafter. The regulations also require each of the
Banks to provide its customers with initial notices that accurately reflect its privacy policies and practices, to make its privacy policies
available to customers through its website, and to provide its customers with the ability to "opt-out" of having the Bank
share their non-public personal information with unaffiliated third parties before it can disclose such information, subject to certain
exceptions.

 Cybersecurity. In
addition to the provisions in the Gramm-Leach-Bliley Act (discussed above), the Company and its subsidiaries are subject to many federal
and state laws, regulations and regulatory interpretations which impose standards and requirements related to cybersecurity. For example,
federal regulatory statements regarding cybersecurity indicates that financial institutions should design multiple layers of security
controls to establish lines of defense and to ensure that their risk management processes address the risk posed by compromised customer
credentials, including security measures to reliably authenticate customers accessing internet-based services of the financial institution.
Additionally, the statements indicate that a financial institution's management is expected to maintain sufficient business continuity
planning processes to ensure the rapid recovery, resumption and maintenance of the institution's operations after a cyber-attack
involving destructive malware. A financial institution is also expected to develop appropriate processes to enable recovery of data and
business operations and address rebuilding network capabilities and restoring data if the institution or its critical service providers
fall victim to this type of cyber-attack. Financial institutions that fail to observe this regulatory guidance on cybersecurity may be
subject to various regulatory sanctions, including financial penalties.

 Anti-Money Laundering
and OFAC. Under federal law, financial institutions must maintain anti-money laundering programs that include established
internal policies, procedures, and controls. Financial institutions are also prohibited from entering into specified financial transactions
and account relationships and must meet enhanced standards for due diligence and customer identification. Financial institutions must
take reasonable steps to conduct enhanced scrutiny of account relationships to guard against money laundering and to report any suspicious
transactions. Law enforcement authorities have been granted increased access to financial information maintained by financial institutions.
Bank regulators routinely examine institutions for compliance with these obligations and they consider an institution's compliance
in connection with the regulatory review of applications, including applications for banking mergers and acquisitions. The U.S. Department
of the Treasury's Office of Foreign Assets Control, or "OFAC," is responsible for helping to insure that U.S. entities
do not engage in transactions with certain prohibited parties, as defined by various Executive Orders and Acts of Congress. OFAC publishes
lists of persons, organizations, and countries suspected of aiding, harboring or engaging in terrorist acts, known as Specially Designated
Nationals and Blocked Persons. If the Bank finds a name on any transaction, account or wire transfer that is on an OFAC list, the Bank
must freeze or block such account or transaction, file a suspicious activity report and notify the appropriate authorities. The U.S.
Treasury Department's Financial Crises Enforcement Network rules include customer due diligence requirements for banks, including
a requirement to identify and verify the identity of beneficial owners of customers that are legal entities, subject to certain exclusions
and exemptions.

 Prohibitions Against
Tying Arrangements. Federal savings associations are prohibited, subject to some exceptions, from extending credit to or
offering any other service, or fixing or varying the consideration for such extension of credit or service, on the condition that the
customer obtain some additional service from the institution or its affiliates or not obtain services of a competitor of the institution.

 Other Regulations. Interest and
other charges collected or contracted for by First Federal of Hazard and First Federal of Kentucky are subject to state usury laws and
federal laws concerning interest rates. The operations of First Federal of Hazard and First Federal of Kentucky are also subject to federal
laws applicable to credit transactions, such as the:

 Truth-In-Lending Act, governing
 disclosures of credit terms to consumer borrowers;

 Equal Credit Opportunity
 Act, prohibiting discrimination on the basis of race, creed or other prohibited factors in extending credit;

 Fair Credit Reporting Act,
 governing the use and provision of information to credit reporting agencies;

 Fair Debt Collection Act,
 governing the manner in which consumer debts may be collected by collection agencies;

 Truth in Savings Act, prescribing
 disclosure and advertising requirements with respect to deposit accounts; and

 Rules and regulations of
 the various federal agencies charged with the responsibility of implementing such federal laws.

 The operations of First Federal of Hazard and
First Federal of Kentucky also are subject to the:

 Right to Financial Privacy
 Act, which imposes a duty to maintain confidentiality of consumer financial records and prescribes procedures for complying with
 administrative subpoenas of financial records;

 Electronic Funds Transfer
 Act and Regulation E promulgated thereunder, which govern automatic deposits to and withdrawals from deposit accounts and customers'
 rights and liabilities arising from the use of automated teller machines and other electronic banking services;

 Check Clearing for the
 21st Century Act (also known as "Check 21"), which gives "substitute checks," such as digital check images
 and copies made from that image, the same legal standing as the original paper check; and

 The USA PATRIOT Act, which
 requires savings associations to, among other things, establish broadened anti-money laundering compliance programs, and due diligence
 policies and controls to ensure the detection and reporting of money laundering. Such required compliance programs are intended to
 supplement existing compliance requirements that also apply to financial institutions under the Bank Secrecy Act and the Office of
 Foreign Assets Control regulations.

 Holding Company Regulation

 General. Kentucky First and First
Federal MHC are savings and loan holding companies within the meaning of federal law. As such, they are registered with the Federal Reserve
Board and are subject to Federal Reserve Board regulations, examinations, supervision, reporting requirements and regulations concerning
corporate governance and activities. In addition, the Federal Reserve Board has enforcement authority over Kentucky First and First Federal
MHC and their non-savings association subsidiaries. Among other things, this authority permits the Federal Reserve Board to restrict
or prohibit activities that are determined to be a serious risk to First Federal of Hazard and/or First Federal of Kentucky.

 Restrictions Applicable to Mutual Holding
Companies. Federal law and Federal Reserve Board regulations, limit the activities of a mutual holding company, such as First
Federal MHC, to the following: (1) investing in the stock of insured savings association and acquiring them by means of a merger or acquisition;
(2) investing in a corporation the capital stock of which may be lawfully purchased by a savings association under federal law; (3) furnishing
or performing management services for a savings association subsidiary of a savings and loan holding company; (4) conducting an insurance
agency or escrow business; (5) holding, managing or liquidating assets owned or acquired from a savings association subsidiary of
the savings and loan holding company; (6) holding or managing properties used or occupied by a savings association subsidiary of the
savings and loan holding company; (7) acting as trustee under deed of trust; (8) any activity permitted for multiple savings and loan
holding companies by Federal Reserve Board regulations and; (9) any activity permitted by the Federal Reserve Board for bank holding
companies and financial holding companies.

 Federal law prohibits a savings and loan holding
company, including a federal mutual holding company, from directly or indirectly, or through one or more subsidiaries, acquiring more
than 5% of the voting stock of another savings association, or its holding company, without prior written approval of the Federal Reserve
Board. Federal law also prohibits a savings and loan holding company from acquiring or retaining control of a depository institution
that is not insured by the FDIC. In evaluating applications by holding companies to acquire savings associations, the Federal Reserve
Board must consider the financial and managerial resources and future prospects of the company and institution involved, the effect of
the acquisition on the risk to the insurance funds, the convenience and needs of the community and competitive factors.

 The Federal Reserve Board is prohibited from
approving any acquisition that would result in a multiple savings and loan holding company controlling savings associations in more than
one state, except: (1) the approval of interstate supervisory acquisitions by savings and loan holding companies, and (2) the
acquisition of a savings institution in another state if the laws of the state of the target savings association specifically permit
such acquisitions. The states vary in the extent to which they permit interstate savings and loan holding company acquisitions.

 Capital Requirements. Savings and
loan holding companies are generally subject to consolidated capital requirements. The Federal Reserve Board has provided a "Small
Bank Holding Company" exception to its consolidated capital requirements, and EGRRCP directed the Federal Reserve Board to increase
the asset threshold for the exception to $3.0 billion, which was done in 2018. Consequently, savings and loan holding companies of less
than $3.0 billion of assets, such as First Federal, MHC and Kentucky First, are exempt from consolidated capital requirements unless
otherwise directed by the Federal Reserve Board in individual.

 Source of Strength. Federal Reserve
Board regulations require savings and loan holding companies to act as a source of financial and managerial strength to their subsidiary
savings associations. The Dodd-Frank Act codified the requirement that savings and loan holding companies act as a source of financial
strength to their insured depository institution subsidiaries. As a result, savings and loan holding companies are expected to commit
resources to support subsidiary savings associations, including at times when the savings and loan holding company may not be in a financial
position to provide such resources.

 Dividends. The Federal Reserve
Board has issued a policy statement on the payment of cash dividends by bank holding companies, which expressed the Federal Reserve Board's
view that a bank holding company should pay cash dividends only to the extent that the company's net income for the past year is
sufficient to cover both the cash dividends and a rate of earning retention that is consistent with the company's capital needs,
asset quality and overall financial condition. The Federal Reserve Board also indicated that it would be inappropriate for a company
experiencing serious financial problems to borrow funds to pay dividends. Furthermore, under the prompt correction action regulations,
the Federal Reserve Board may prohibit a bank holding company from paying any dividends if the holding company's insured depository
institution subsidiary is classified as "undercapitalized." See "Federal Savings Association Regulation –
Prompt Corrective Regulatory Action."

 Stock Holding Company Subsidiary Regulation.
 Federal Reserve Board regulations govern the two-tier mutual holding company form of organization and subsidiary stock holding
companies that are controlled by mutual holding companies. Kentucky First is the stock holding company subsidiary of First Federal MHC.
Kentucky First is only permitted to engage in activities that are permitted for First Federal MHC subject to the same restrictions and
conditions.

 Waivers of Dividends by First Federal MHC.
 Federal Reserve Board regulations require First Federal MHC to notify the Federal Reserve Board if it proposes to waive the right
to receive dividends declared by Kentucky First. The Dodd-Frank Act specified that dividends may be waived if certain conditions are
met, including that the Federal Reserve Board does not object after being given written notice of the dividend and proposed waiver. The
Federal Reserve Board may not object to such a waiver (i) if the mutual holding company involved has, prior to December 1, 2009, reorganized
into a mutual holding company structure, engaged in a minority stock offering and waived dividends it had a right to receive; (ii) the
board of directors of the mutual holding company expressly determines that a waiver of the dividend is consistent with its fiduciary
duties to members and (iii) the waiver would not be detrimental to the safe and sound operation of the savings association subsidiaries
of the holding company. Beginning with the dividend paid in September 2012, First Federal MHC has annually sought member approval to
obtain Federal Reserve Board approval to waive the MHC's dividends from the Company. In January 2024, the Company announced that
dividends to shareholders would be suspended indefinitely, and that First Federal MHC had suspended efforts to seek member approval to
obtain the dividend waiver in the coming year. If at such time as Kentucky First has sufficient income and liquidity to pay future dividends,
it is expected that that First Federal MHC will, subject to any required regulatory approvals, once again solicit member approval of
the dividend waiver. For more information, see Item 1A, "Risk Factors – Our ability to pay dividends is subject to the
ability of First Federal of Hazard and First Federal of Kentucky to make capital distributions to Kentucky First and the waiver of dividends
by First Federal MHC."

 Conversion of First Federal MHC to Stock
Form. Federal Reserve Board regulations permit First Federal MHC to convert from the mutual form of organization to the capital
stock form of organization. In a conversion transaction, a new holding company would be formed as successor to First Federal MHC, its
corporate existence would end, and certain depositors would receive the right to subscribe for additional shares of the new holding company.
In a conversion transaction, each share of common stock held by stockholders other than First Federal MHC would be automatically converted
into a number of shares of common stock of the new holding company based on an exchange ratio determined at the time of conversion that
ensures that stockholders other than First Federal MHC own the same percentage of common stock in the new holding company as they owned
in us immediately before conversion. Under Federal Reserve Board regulations, stockholders other than First Federal MHC would not be
diluted because of any dividends waived by First Federal MHC (and waived dividends would not be considered in determining an appropriate
exchange ratio, provided that the mutual holding company involved was formed, engaged in a minority offering and waived dividends prior
to December 1, 2009), in the event First Federal MHC converts to stock form. First Federal MHC was formed, engaged in a minority stock
offering and waived dividends prior to December 1, 2009. The total number of shares held by stockholders other than First Federal MHC
after a conversion transaction also would be increased by any purchases by stockholders other than First Federal MHC in the stock offering
conducted as part of the conversion transaction.

 Acquisition of Control. Under the
federal Change in Bank Control Act, a notice must be submitted to the Federal Reserve Board if any person (including a company), or group
acting in concert, seeks to acquire "control" of a savings and loan holding company or savings association. An acquisition
of "control" can occur upon the acquisition of 10% or more of the voting stock of a savings and loan holding company or savings
association or as otherwise defined by the Federal Reserve Board. Under the Change in Bank Control Act, the Federal Reserve Board has
60 days from the filing of a complete notice to act, taking into consideration certain factors, including the financial and managerial
resources of the acquirer and the anti-trust effects of the acquisition. Any company that so acquires control would then be subject to
regulation as a savings and loan holding company.

 Future Legislation. Federal and
state legislatures may introduce legislation that will impact the financial services industry. In addition, federal banking agencies
may introduce regulatory initiatives that are likely to impact the financial services industry, generally. Such initiatives may include
proposals to expand or contract the powers of savings and loan holding companies and/or depository institutions or proposals to substantially
change the financial institution regulatory system. Such legislation could change banking statutes and the operating environment of the
Company in substantial and unpredictable ways. If enacted, such legislation could increase or decrease the cost of doing business, limit
or expand permissible activities, or affect the competitive balance among banks, savings associations, credit unions, and other financial
institutions. The Company cannot predict whether any such legislation will be enacted, or, if enacted, the effect that it or any implementing
regulations would have on the financial condition or results of operations of the Company. A change in statutes, regulations, or regulatory
policies applicable to Kentucky First or any of its subsidiaries could have a material effect on the business of the Company.

 Federal and State Taxation

 General. We report our income on a fiscal year basis using the cash method of
accounting. See Note I-Federal Income Taxes in the Notes to Consolidated Financial Statements for a description of the change in accounting
method available through the Tax Cuts and Jobs Act.

 Federal Taxation. The federal income
tax laws apply to us in the same manner as to other corporations with some exceptions, including particularly the reserve for bad debts
discussed below. The following discussion of tax matters is intended only as a summary and does not purport to be a comprehensive description
of the tax rules applicable to us. Our federal income tax returns are subject to examination for years 2019 and later. The federal statutory
tax rate was 21% for the fiscal years ended June 30, 2025 and 2024.

 On December 22, 2017, the Tax Cuts and Jobs
Act was enacted, which amended the Internal Revenue Code of 1986, reducing tax rates and modifying certain policies, credits, and deductions
for individuals and businesses. Included in this legislation was a reduction of the federal corporate income tax rate from 35% to 21%.
The Tax Cuts and Jobs Act also added limitations on the deductibility of business interest expense. While this limitation should not
impact the deductibility of the Company's interest expense, the limitation could impact our commercial borrowers. The Tax Cuts
and Jobs Act also includes changes to personal income taxes, including: (i) a lower limit on the deductibility of mortgage interest
on single-family residential mortgages; (ii) the elimination of interest deductions for home equity loans; and (iii) a limitation on
the deductibility of property taxes and state and local income taxes.

 For fiscal years beginning before June 30,
1996, thrift institutions that qualified under certain definitional tests and other conditions of the Internal Revenue Code were permitted
to use certain favorable provisions to calculate their deductions from taxable income for annual additions to their bad debt reserve.
A reserve could be established for bad debts on qualifying real property loans, generally secured by interests in real property improved
or to be improved, under the percentage of taxable income method or the experience method. The reserve for nonqualifying loans was computed
using the experience method. Federal legislation enacted in 1996 repealed the reserve method of accounting for bad debts and the percentage
of taxable income method for tax years beginning after 1995 and require savings institutions to recapture or take into income certain
portions of their accumulated bad debt reserves. First Federal of Hazard did not qualify for such favorable tax treatment for any years
through 1996. Approximately $5.2 million of First Federal of Kentucky First's accumulated bad debt reserves would not be recaptured
into taxable income unless Frankfort First makes a "non-dividend distribution" to Kentucky First as described below. If First
Federal of Hazard or First Federal of Kentucky makes "non-dividend distributions" to us, the distributions will be considered
to have been made from First Federal of Hazard's and First Federal of Kentucky's unrecaptured tax bad debt reserves, including
the balance of their reserves as of December 31, 1987, to the extent of the "non-dividend distributions," and then from
First Federal of Kentucky's supplemental reserve for losses on loans, to the extent of those reserves, and an amount based on the
amount distributed, but not more than the amount of those reserves, will be included in First Federal of Kentucky's taxable income.
Non-dividend distributions include distributions in excess of First Federal of Kentucky's current and accumulated earnings and
profits, as calculated for federal income tax purposes, distributions in redemption of stock, and distributions in partial or complete
liquidation. Dividends paid out of First Federal of Kentucky's current or accumulated earnings and profits will not be so included
in First Federal of Kentucky's taxable income.

 The amount of additional taxable income triggered
by a non-dividend distribution is an amount that, when reduced by the tax attributable to the income, is equal to the amount of the distribution.
Therefore, if First Federal of Kentucky makes a non-dividend distribution to us, approximately one and one-half times the amount of the
distribution not in excess of the amount of the reserves would be includable in income for federal income tax purposes, assuming a 21%
federal corporate income tax rate. First Federal of Kentucky does not intend to pay dividends in the future that would result in a recapture
of any portion of its bad debt reserves.

 State Taxation. Although First
Federal MHC and Kentucky First are subject to the Kentucky corporation income tax and state corporation license tax (franchise tax),
the corporation license tax is repealed effective for tax periods ending on or after December 31, 2005. Gross income of corporations
subject to Kentucky income tax is similar to income reported for federal income tax purposes except that dividend income, among other
income items, is exempt from taxation. For First Federal MHC and Kentucky First tax years beginning July 1, 2005, the corporations are
subject to an alternative minimum income tax. Corporations must pay the greater of the income tax, the alternative tax or $175. The corporations
can choose between two methods to calculate the alternative minimum; 9.5 cents per $100 of the corporation's gross receipts, or
75 cents per $100 of the corporation's Kentucky gross profits. Kentucky gross profits means Kentucky gross receipts reduced by
returns and allowances attributable to Kentucky gross receipts, less Kentucky cost of goods sold. The corporations, in their capacity
as holding companies for financial institutions, do not have a material amount of cost of goods sold. Although the corporate license
tax rate is 0.21% of total capital employed in Kentucky, a bank holding company, as defined in Kentucky Revised Statutes 287.900, is
allowed to deduct from its taxable capital, the book value of its investment in the stock or securities of subsidiaries that are subject
to the bank franchise tax.

 First Federal of Hazard and First Federal of
Kentucky are subject to both the Kentucky corporation income tax and corporation license tax. On March 26, 2019, HB 354 was enacted which
sunsets the Savings and Loan Tax after 2020 and subjects financial institutions to the corporate income tax beginning January 1, 2021.
Effective January 1, 2021, the Savings and Loan Tax no longer applies to financial institutions.

 Item 1A. Risk Factors.

 Interest Rate Risk

 Rising interest rates may hurt our profits
and asset values.

 Beginning in March, 2022, the Federal Reserve
Board's Open Market Committee ("FOMC") started raising interest rates to combat elevated inflation and a strong labor
market. Rates continued to increase through August 2023 which caused significant deterioration in our profits and asset values. Net interest
income in the year ended June 30, 2024 decreased $1.8 million or 20.3% compared to the fiscal year ended June 30, 2023. In September
2024, the FOMC began to lower the target range for the federal funds rate by 50 basis points and has subsequently lowered rates by another
75 basis points, as of September 17, 2025. This has caused improvement in the company's net interest income from $6.9 million in
the year ended June 30, 2024 to $8.3 million in the year ended June 30, 2025. This was primarily the result of higher returns on assets
while the cost of funds continued to increase in the earlier part of the year before beginning to decline.

 Nevertheless, if interest rates rise in the future,
our net interest income may decline in the short term since, due to the generally shorter terms of interest-bearing liabilities, interest
expense paid on interest-bearing liabilities, increases more quickly than interest income earned on interest-earning assets, such as
loans and investments. In addition, rising interest rates may hurt our income because of reduced demand for new loans and refinancing
loans may in turn result in reduced interest and fee income earned on new loans and loan refinancings. While we believe that modest interest
rate increases will not significantly hurt our interest rate spread over the long term due to our high level of liquidity and the presence
of a significant amount of adjustable-rate mortgage loans in our loan portfolio, interest rate increases may initially reduce our interest
rate spread until such time as our loans and investments reprice to higher levels.

 Changes in interest rates also affect the value
of our interest-earning assets, and in particular our securities portfolio. Generally, the value of fixed-rate securities fluctuates
inversely with changes in interest rates. Unrealized gains and losses on securities available for sale are reported as separate components
of equity. Decreases in the fair value of securities available for sale resulting from increases in interest rates therefore could have
an adverse effect on stockholders' equity. At June 30, 2025, this decrease in fair value of the securities, otherwise known as
Accumulated other comprehensive loss totaled $145,000 or 1.5% of our securities portfolio.

 Rising interest rates may adversely affect
the ability of borrowers to repay loans.

 We offer fixed-rate and adjustable-rate mortgage
loans with terms of up to 30 years; however, across our loan portfolio, interest rates and payments adjust annually after a one-, three-,
five- or seven-year initial fixed period. At June 30, 2025, 93.8% of our residential real estate loan portfolio was adjustable-rate
loans. Rising interest rates could have a negative impact on our results of operations by reducing the ability of borrowers to repay
their current loan obligations as interest rates rise, the borrower's payments rise, increasing the potential for delinquencies
and defaults.

 Risks Related to Our Lending Activities

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

 Inflation has risen sharply since the end of
2021 to levels not seen for over 40 years. Inflationary pressures are currently expected to remain elevated throughout 2025. Inflation
could lead to increased costs to our customers, making it more difficult for them to repay their loans or other obligations. While interest
rates have declined since September 2024, higher interest rates may be needed to tame persistent inflationary price pressures, which
could also push down asset prices and weaken economic activity. A deterioration in economic conditions in the United States and our markets
could result in an increase in loan delinquencies and non-performing assets, decreases in loan collateral values and a decrease in demand
for our products and services, all of which, in turn, would adversely affect our business, financial condition and results of operations.

 If our allowance for credit losses is not
sufficient to cover actual loan losses, our results of operations would be negatively affected.

 In determining the amount of the allowance for
credit loss, we analyze our loss and delinquency experience by loan categories and we consider the effect of existing economic conditions.
In addition, we make various assumptions and judgments about the collectability of our loan portfolio, including the creditworthiness
of our borrowers and the value of the real estate and other assets serving as collateral for the repayment of many of our loans. If the
actual results are different from our estimates, or our analyses are incorrect, our allowance for credit loss may not be sufficient to
cover losses inherent in our loan portfolio, which would require additions to our allowance and would decrease our net income. An emphasis
on loan growth or shifting the types of loans the banks make, as well as any future credit deterioration, could require us to increase
our allowance further in the future. In addition, our banking regulators periodically review our allowance for loan losses and could
require us to increase our provision for loan losses. Any increase in our allowance for credit loss or loan charge-offs as required by
regulatory authorities may have a material adverse effect on our results of operations and financial condition.

 A 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.

 Approximately 99.3% of our loan portfolio at
June 30, 2025 was comprised of loans collateralized by real estate. Disruptions in the real estate market could significantly impair
the value of our collateral and our ability to sell the collateral upon foreclosure. The real estate collateral in each case provides
an alternate source of repayment in the event of default by the borrower and may deteriorate in value during the time the credit is extended.
If real estate values decline, it will become more likely that we would be required to increase our allowance for loan losses. If during
a period of reduced real estate values, we are required to liquidate the collateral securing a loan to satisfy the debt or to increase
our allowance for credit losses, it could materially reduce our profitability and adversely affect our financial condition.

 Our concentration of residential mortgage
loans exposes us to increased lending risks.

 At June 30, 2025, $275.3 million, or 83.6%, of
our loan portfolio was secured by one-to-four family real estate, all of which is located in the Commonwealth of Kentucky, and we intend
to continue this type of lending in the foreseeable future. One-to-four family residential mortgage lending is generally sensitive to
regional and local economic conditions that significantly impact the ability of borrowers to meet their loan payment obligations, making
loss levels difficult to predict. A decline in residential real estate values as a result of a downturn in the local housing markets
or in the markets in neighboring states in which we originate residential mortgage loans could reduce the value of the real estate collateral
securing these types of loans. Declines in real estate values could cause some of our residential mortgages to be inadequately collateralized,
which would expose us to a greater risk of loss if we seek to recover on defaulted loans by selling the real estate collateral.

 The distressed economy in First Federal
of Hazard's market area could hurt our profits and slow our growth.

 Our banks operate in three distinct market areas.
First Federal of Hazard's market area consists of Perry and surrounding counties in eastern Kentucky. The economy in this market
area has been distressed in recent years due to the decline in the coal industry on which the economy has been dependent. While the region
has seen improvement in the economy from the influx of other industries, such as health care and manufacturing, the competition provided
by new methods of extracting natural gas has recently hurt the coal industry. As a consequence, the economy in First Federal of Hazard's
market area continues to lag behind the economies of Kentucky and the United States and First Federal of Hazard has experienced insufficient
loan demand in its market area. Moreover, the slow economy in First Federal of Hazard's market area will limit our ability to grow
our asset base in that market.

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

 We plan to continue to sell our longer-term,
conforming and non-conforming fixed-rate loans that we originate to generate noninterest income. We also earn revenue from fees we receive
for servicing mortgage loans. Changes in interest rates may impact our mortgage banking revenues, which could negatively impact our noninterest
income. When rates rise, the demand for mortgage loans usually tends to fall, reducing loan origination volume and the related amount
of gains on the sales of loans. Under the same conditions, net revenue from our mortgage servicing activities can increase due to slower
prepayments, which reduces our amortization expense for mortgage servicing rights. When rates fall, mortgage originations usually tend
to increase and the value of our mortgage servicing rights usually tends to decline, also with some offsetting revenue effect. During
the fiscal year ended June 30, 2025, non-interest income increased $249,000 or 99.2% and totaled $500,000, primarily due to increased
net gains on sales of loans of $187,000.

 In addition, our results of operations are affected
by the amount of noninterest expenses associated with mortgage banking activities, such as salaries and employee benefits (including
commissions), occupancy, equipment and data processing expense, and other operating costs. During periods of reduced loan demand, our
results of operations may be adversely affected to the extent that we are unable to reduce expenses commensurate with the decline in
mortgage loan origination activity.

 Liquidity Risk

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

 In March 2023, Silicon Valley Bank and Signature
Bank experienced large deposit outflows coupled with insufficient liquidity to meet withdrawal demands, resulting in the institutions
being placed into FDIC receivership. In May 2023, First Republic Bank was also placed into FDIC receivership. In the aftermath of these
events, there has been substantial market disruption and concerns that diminished depositor confidence could spread across the banking
industry, leading to deposit outflows that could destabilize other institutions. To strengthen public confidence in the banking system,
the FDIC took action to protect funds held in uninsured deposit accounts at Silicon Valley Bank, Signature Bank and First Republic Bank.
However, the FDIC has not committed to protecting uninsured deposits in other institutions that experience outsized withdrawal demands.
To further bolster the banking system, the Federal Reserve Board created a new Bank Term Funding Program to provide an additional source
of liquidity. At June 30, 2025, we had $29.2 million in available liquidity, including $19.5 million in cash and cash equivalents. Our
uninsured deposits are estimated to be approximately $37.1 million or 13.4% of total deposits. At June 30, 2025, we had off-balance sheet
liquidity sources totaling $80.3 million, including $71.0 million in additional borrowing capacity at the Federal Home Loan Bank of Cincinnati.
Notwithstanding our significant liquidity, large deposit outflows could adversely affect our financial condition and results of operations
and could result in the closure of the Banks. Furthermore, the recent bank failures may result in strengthening of capital and liquidity
rules which, if the revised rules apply to us, could adversely affect our financial condition and results of operations.

 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.

 We require sufficient liquidity to fund loan
commitments, satisfy depositor withdrawal requests, make payments on our debt obligations as they become due, and meet other cash commitments.
Liquidity risk is the potential that we will be unable to meet our obligations as they become due because of an inability to liquidate
assets or obtain adequate funding at a reasonable cost, in a timely manner and without adverse conditions or consequences. Our sources
of liquidity consist primarily of cash, assets readily convertible to cash (such as investment securities), increases in deposits, advances,
as needed, from the FHLB, borrowings, as needed, from the Federal Reserve Bank of Cleveland and other borrowings. Our access to funding
sources in amounts adequate to finance our activities or on acceptable terms could be impaired by factors that affect our organization
specifically or the financial services industry or economy in general. Any substantial, unexpected, and/or prolonged change in the level
or cost of liquidity, or any liquidity related requirements imposed by our regulators, could impair our ability to fund operations, pay
dividends on outstanding shares of stock, enact stock repurchases, and meet our obligations as they become due and could have a material
adverse effect on our business, financial condition and results of operations.

 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.

 On January 16, 2024, the Company announced the suspension of quarterly dividends indefinitely. Holders of our common stock are only entitled
to receive such dividends as our Board of Directors may declare out of funds available for such payments under applicable law and regulatory
guidance. We cannot predict when or whether the Company will be able to pay future common stock dividends and if so, the amount of any
such common stock dividends. Our ability to pay future dividends and if so at what level will also be dependent on numerous factors, including:
our ability to receive any required regulatory approval or non-objection to pay dividends to our shareholders; our ability to receive
regulatory approval or non-objection to pay dividends from First Federal Savings and Loan Association of Hazard and First Federal Savings
Bank of Kentucky to the Company in order for the Company to pay dividends to shareholders; our ability to fully and timely address the
deficiencies that resulted in the formal Agreement that First Federal Savings Bank of Kentucky entered into with the OCC on August 13,
2024, or any other deficiencies identified by the OCC or the Federal Reserve Bank of Cleveland; our ability to successfully execute our
strategy to increase earnings and core deposits, reduce reliance on higher cost funding sources and shift more of our loan portfolio towards
higher-earning loans; and First Federal Savings Bank of Kentucky's ability to satisfy the IMCR's imposed by the OCC, which
require First Federal Savings Bank of Kentucky to maintain a common equity tier 1 capital ratio of at least 9.0%, a tier 1 capital ratio
of at least 11.0%, a total capital ratio of at least 12.0%, and a leverage ratio of at least 9.0%. As of June 30, 2025, our common equity
tier 1 capital ratio was 16.83%, its tier 1 capital ratio was 16.83%, its total capital ratio was 16.83%, and its leverage ratio was 9.97%.
For additional information on the formal Agreement that First Federal Savings Bank of Kentucky has entered into with the OCC and the IMCR's
imposed on First Federal Savings Bank of Kentucky by the OCC, please see "Management's Discussion and Analysis-Regulatory
Developments Regarding First Federal of Kentucky."

 As the mutual holding company and majority
shareholder of Kentucky First Federal Bancorp, First Federal MHC must receive the approval of the Federal Reserve Board and the members
of First Federal MHC in order to waive the receipt of any dividends declared and paid by Kentucky First Federal Bancorp to its shareholders.
While Kentucky First Federal has previously received such approvals, those approvals have expired. The inability to receive those approvals
in the future would adversely impact Kentucky First Federal's ability to pay dividends to its shareholders in the future.

 In previous years, First Federal MHC has received Federal Reserve Board approval to waive quarterly dividends otherwise payable by the
Company totaling $0.40 per share annually beginning with the dividend paid on September 28, 2012 and continuing through the dividend payable
in the third quarter of 2024. However, First Federal MHC did not seek to obtain regulatory approval to waive dividends for periods after
the third quarter of 2024, and the prior Federal Reserve Boad approval to waive the payment of quarterly dividends that would otherwise
be payable to First Federal MHC has expired. To the extent the Company resumes the payment of dividends in future periods, it is expected
that First Federal MHC will again waive future dividends, except to the extent dividends are needed to fund First Federal MHC's
continuing operations, subject to the ability of First Federal MHC to obtain regulatory approval of its requests to waive dividends and
to its ability to obtain member approval of dividend waivers. We cannot predict whether members will continue to approve annual dividend
waiver requests or whether the Federal Reserve Board will grant future dividend waiver requests and, if granted, there can be no assurance
as to the conditions, if any, the Federal Reserve Board will place on future dividend waiver requests by grandfathered mutual holding
companies such as First Federal MHC. If First Federal MHC is unable to waive the receipt of dividends, the Company's ability to
pay dividends to our stockholders may be substantially impaired and the amounts of any such dividends may be significantly reduced.

 Risks Related to Our Business and Industry
Generally

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

 Although we consider ourselves competitive in
our market areas, we face intense competition both in making loans and attracting deposits. Price competition for loans and deposits
might result in our earning less on our loans and paying more on our deposits, which reduces net interest income. Some of the institutions
with which we compete have substantially greater resources than we have and may offer services that we do not provide. We expect competition
to increase in the future as a result of legislative, regulatory and technological changes and the continuing trend of consolidation
in the financial services industry. Our profitability will depend upon our continued ability to compete successfully in our market areas.

 Risks 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.

 On August 13, 2024, First Federal of Kentucky
entered into a formal written agreement (the "Agreement") with the OCC, which became effective as of the same date. As a
result of the Agreement, pursuant to 12 C.F.R. § 5.51(c)(7)(ii), First Federal of Kentucky is in "troubled condition,"
and is not an "eligible savings association" for purposes of 12 C.F.R. § 5.3, unless otherwise informed in writing by
the OCC. In addition to the formal written Agreement, the OCC has also imposed individual minimum capital requirements ("IMCRs")
on First Federal of Kentucky. The IMCRs require First Federal of Kentucky to maintain a common equity tier 1 capital ratio of at least
9.0%, a tier 1 capital ratio of at least 11.0%, a total capital ratio of at least 12.0%, and a leverage ratio of at least 9.0%. At June
30, 2025, First Federal of Kentucky exceeded the requirements of the IMCRs as its common equity tier 1 capital ratio was 16.83%, its
tier 1 capital ratio was 16.83%, its total capital ratio was 16.83%, and its leverage ratio was 9.97%.

 Under the terms of the Agreement, First Federal
of Kentucky is required to take the following actions within the time frames specified in the Agreement:

 create a compliance committee
 composed of at least three of First Federal of Kentucky's directors to monitor and oversee First Federal of Kentucky's
 compliance with the provisions of the Agreement and submit quarterly evaluation reports to First Federal of Kentucky's board
 of directors regarding actions First Federal of Kentucky has taken to comply with the Agreement and the results and status of such
 actions;

 submit to the OCC, adopt
 and implement an acceptable revised written three-year strategic plan establishing objectives for First Federal of Kentucky's
 overall risk profile, balance sheet mix, funding structure, interest rate risk, liquidity and capital adequacy, earnings performance,
 and asset and core deposit growth, together with strategies to achieve those objectives;

 submit to the OCC, adopt
 and implement an acceptable revised written succession plan for First Federal of Kentucky that is designed to promote adequate staffing
 and continuity of capable management;

 adopt a revised written
 liquidity risk management program for First Federal of Kentucky that provides for the identification, measurement, monitoring, and
 control of First Federal of Kentucky's liquidity risk exposure, and that emphasizes the importance of cash flow projections,
 diversified funding sources, a cushion of highly liquid assets, robust liquidity stress testing scenario analyses, and a formal,
 well-developed contingency funding plan as primary tools for measuring and managing liquidity risk; and

 adopt a revised written
 interest rate risk program that includes risk management systems to identify, measure, monitor, and control interest rate risk.

 The Agreement requires First Federal of Kentucky's
Board to (i) ensure that First Federal of Kentucky timely adopts and implements all corrective actions required by the Agreement and
(ii) verify that First Federal of Kentucky adheres to the corrective actions and that they are effective in addressing First Federal
of Kentucky's deficiencies that resulted in the Agreement.

 The Agreement will remain in effect until it
is amended by First Federal of Kentucky and the OCC, or the OCC modifies, waives or terminates the Agreement. While First Federal of
Kentucky is subject to the Agreement, we expect that the Board and management will be required to focus considerable time and attention
on taking corrective actions to comply with its terms.

 First Federal of Kentucky's Board and management
are committed to fully addressing the provisions of the Agreement within the required time frames. The OCC may determine, however, in
its sole discretion that the issues raised by the Agreement have not been addressed satisfactorily, or that any current or past actions,
violations or deficiencies could be the subject of further regulatory enforcement actions. If the OCC were to determine that First Federal
of Kentucky was not in compliance with the Agreement, it would have available various remedies, including among others, the power to
enjoin "unsafe or unsound" practices, to require affirmative action to correct any conditions resulting from any violation
or practice, to direct an increase in capital, to restrict the growth of First Federal of Kentucky, to remove officers and/or directors,
to assess civil monetary penalties, and to impose limitations on our business at First Federal of Kentucky, any of which could negatively
affect our ability to implement our business plan and pay dividends on or our common stock, and may negatively affect the value of our
common stock as well as our financial condition and results of operations.

 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.

 The Banks are subject to extensive regulation,
supervision and examination by the OCC. The Company is subject to extensive regulation, supervision and examination by the Federal Reserve
Board. Such regulation and supervision govern the activities in which an institution and its holding company may engage and is intended
primarily for the protection of the federal deposit insurance fund and the depositors of the Banks rather than the protection of the
Company's stockholders. Regulatory authorities have extensive discretion in their supervisory and enforcement activities, including
the imposition of restrictions on our operations, the classification of our assets and determination of the adequacy of the level of
our allowance for credit losses. These regulations, along with existing tax, accounting, securities, insurance and monetary laws, rules,
standards, policies, and interpretations, control the methods by which financial institutions conduct business, implement strategic initiatives
and tax compliance, and govern financial reporting and disclosures. Any change in such regulation and oversight, whether in the form
of regulatory policy, regulations, legislation or supervisory action, may have a material impact on our operations. Further, changes
in accounting standards can be both difficult to predict and involve judgment and discretion in their interpretation by us and our independent
accounting firm. These changes could materially impact, potentially even retroactively, how we report our financial condition and results
of operations.

 Non-compliance with the USA PATRIOT Act,
Bank Secrecy Act, or other laws and regulations could result in fines or sanctions.

 The USA PATRIOT and Bank Secrecy Acts require
financial institutions to develop programs to prevent financial institutions from being used for money laundering and terrorist activities.
If such activities are suspected, financial institutions are obligated to file suspicious activity reports with the U.S. Treasury's
Office of Financial Crimes Enforcement Network. These rules require financial institutions to establish procedures for identifying and
verifying the identity of customers seeking to open new financial accounts. Failure to comply with these regulations could result in
fines or sanctions, including restrictions on pursuing any acquisitions or establishing or acquiring new branches. The policies and procedures
we have adopted that are designed to assist in compliance with these laws and regulations may not be effective in preventing violations
of these laws and regulations. Furthermore, these rules and regulations continue to evolve and expand. We have not been subject to fines
or other penalties, or have suffered business or reputational harm, as a result of money laundering activities in the past.

 Monetary policies and regulations of the
Federal Reserve Board could adversely affect our business, financial condition and results of operations.

 In addition to being affected by general economic
conditions, our earnings and growth are affected by the policies of the Federal Reserve Board. An important function of the Federal Reserve
Board is to regulate the money supply and credit conditions. Among the instruments used by the Federal Reserve Board to implement these
objectives are open market purchases and sales of U.S. government securities, adjustments to the discount rate and changes in banks'
reserve requirements against bank deposits. These instruments are used in varying combinations to influence overall economic growth and
the distribution of credit, bank loans, investments and deposits. Their use also affects interest rates charged on loans or paid on deposits.
The monetary policies and regulations of the Federal Reserve Board have had a significant effect on the operating results of financial
institutions in the past and are expected to continue to do so in the future. The effects of such policies upon our business, financial
condition and results of operations cannot be predicted.

 We may be adversely affected by recent
changes in U.S. tax laws and regulations.

 Changes in tax laws contained in the Tax Cuts and Jobs Act, which was enacted in December 2017, and the legislation commonly known as
the "One Big Beautiful Bill Act" signed into law on July 4, 2025, include a number of provisions that will have an impact
on the banking industry, borrowers and the market for residential real estate. Included in this legislation were: (i) a lower limit on
the deductibility of mortgage interest on single-family residential mortgage loans, (ii) the elimination of interest deductions for home
equity loans, (iii) a limitation on the deductibility of business interest expense and (iv) a limitation on the deductibility of property
taxes and state and local income taxes.

 The changes in the tax laws may have an adverse effect on the market for, and valuation of, residential properties, and on the demand
for such loans in the future, and could make it harder for borrowers to make their loan payments. If home ownership becomes less attractive,
demand for mortgage loans could decrease. The value of the properties securing loans in our loan portfolio may be adversely impacted as
a result of the changing economics of home ownership, which could require an increase in our provision for loan losses, which would reduce
our profitability and could materially adversely affect our business, financial condition and results of operations.

 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.

 Federal regulations establish minimum capital
requirements for insured depository institutions, including minimum risk-based capital and leverage ratios, and define "capital"
for calculating these ratios. The minimum capital requirements are: (i) a new common equity Tier 1 capital ratio of 4.5%; (ii) a Tier
1 to risk-based assets capital ratio of 6% (increased from 4%); (iii) a total capital ratio of 8% (unchanged from current rules); and
(iv) a Tier 1 leverage ratio of 4%. The regulations also establish a "capital conservation" buffer of 2.5%, and will result
in the following minimum ratios: (i) a common equity Tier 1 capital ratio of 7%; (ii) a Tier 1 to risk-based assets capital ratio of
8.5%; and (iii) a total capital ratio of 10.5%. The new capital conservation buffer requirement was phased in beginning in January 2016
at 0.625% of risk-weighted assets and increased each year until fully implemented in January 2019. An institution will be subject to
limitations on paying dividends, engaging in share repurchases, and paying discretionary bonuses if its capital level falls below the
buffer amount. These limitations will establish a maximum percentage of eligible retained income that can be utilized for such actions.
As of June 30, 2025, the capital levels of First Federal of Hazard and First Federal of Kentucky exceed the required capital amounts
according to the Community Bank Leverage Ratio regulations and we believe they also meet the fully-phased in minimum capital requirements.
As previously discussed, in August 2024, First Federal of Kentucky entered into an Agreement with the OCC. The OCC has also imposed IMCRs
which require First Federal of Kentucky to achieve and maintain capital levels in excess of the minimum capital standards required under
OCC's Prompt Corrective Action framework. Under the IMCRs, First Federal of Kentucky must achieve and maintain a common equity
tier 1 capital ratio of at least 9.0%, a tier 1 capital ratio of at least 11.0%, a total capital ratio of at least 12.0%, and a leverage
ratio of at least 9.0%. At June 30, 2025, First Federal of Kentucky exceeded the requirements of the IMCRs as its common equity tier
1 capital ratio was 16.83%, its tier 1 capital ratio was 16.83%, its total capital ratio was 16.83%, and its leverage ratio was 9.97%.
See Note K-Stockholders' Equity and Regulatory Capital of Notes to Consolidated Financial Statements.

 The application of more stringent capital requirements
for us could among other things, result in lower returns on equity, require the raising of additional capital, and result in regulatory
actions constraining us from paying dividends or repurchasing shares if we were unable to comply with such requirements. See "Regulation
and Supervision—Regulation of Federal Savings Associations—Capital Requirements."

 The Federal Reserve Board may require us to commit capital resources
to support the Banks.

 Federal law requires that a holding company act
as a source of financial and managerial strength to its subsidiary banks and to commit resources to support such subsidiary banks. Under
the "source of strength" doctrine, the Federal Reserve Board may require a holding company to make capital injections into
a troubled subsidiary bank and may charge the holding company with engaging in unsafe and unsound practices for failure to commit resources
to a subsidiary bank. A capital injection may be required at times when the holding company may not have the resources to provide it
and therefore may be required to borrow the funds or raise capital. Thus, any borrowing or funds needed to raise capital required to
make a capital injection may be more expensive or difficult to obtain and could have an adverse effect on our business, financial condition
and results of operations.

 Risks Related to Accounting Matters

 Changes in management's estimates
and assumptions may have a material impact on our consolidated financial statements and our financial condition or operating results.

 In preparing the periodic reports and consolidated
financial statements we file under the Securities Exchange Act of 1934, as amended, our management is and will be required under applicable
rules and regulations to make estimates and assumptions as of a specified date. These estimates and assumptions are based on management's
best estimates and experience as of that date and are subject to substantial risk and uncertainty. Materially different results may occur
as circumstances change and additional information becomes known. Areas requiring significant estimates and assumptions by management
include our evaluation of the adequacy of our allowance for loan losses, the valuation of mortgage servicing rights, and the fair value
of financial instruments.

 Changes in accounting standards could affect reported earnings.

 The bodies responsible for establishing accounting
standards, including the Financial Accounting Standards Board, the Securities and Exchange Commission and other regulatory bodies, periodically
change the financial accounting and reporting guidance that governs the preparation of our financial statements. These changes can be
hard to predict and can materially impact how we record and report our consolidated financial condition and results of operations. In
some cases, we could be required to apply new or revised guidance retroactively.

 Risks Related to Operational Matters

 We are subject to certain risks in connection
with our use of technology.

 Our security measures may not be sufficient to
mitigate the risk of a cyber attack. Communications and information systems are essential to the conduct of our business, as we use such
systems to manage our customer relationships, our general ledger and virtually all other aspects of our business. Our operations rely
on the secure processing, storage, and transmission of confidential and other information in our computer systems and networks. Although
we take protective measures and endeavor to modify them as circumstances warrant, the security of our computer systems, software, and
networks may be vulnerable to breaches, unauthorized access, misuse, computer viruses, or other malicious code and cyber attacks that
could have a security impact. If one or more of these events occur, this could jeopardize our or our customers' confidential and
other information processed and stored in, and transmitted through, our computer systems and networks, or otherwise cause interruptions
or malfunctions in our operations or the operations of our customers or counterparties. We may be required to expend significant additional
resources to modify our protective measures or to investigate and remediate vulnerabilities or other exposures, and we may be subject
to litigation and financial losses that are either not insured against or not fully covered through any insurance maintained by us. We
could also suffer significant reputational damage.

 Security breaches in our Internet banking activities
could further expose us to possible liability and damage our reputation. Any compromise of our security also could deter customers from
using our Internet banking services that involve the transmission of confidential information. We rely on standard Internet security
systems to provide the security and authentication necessary to effect secure transmission of data. These precautions may not protect
our systems from compromises or breaches of our security measures, which could result in significant legal liability and significant
damage to our reputation and our business.

 Our security measures may not protect us
from systems failures or interruptions.

 While we have established policies and procedures
to prevent or limit the impact of systems failures and interruptions, there can be no assurance that such events will not occur or that
they will be adequately addressed if they do. In addition, we outsource certain aspects of our data processing and other operational
functions to certain third-party providers. If our third-party providers encounter difficulties, or if we have difficulty in communicating
with them, our ability to adequately process and account for transactions could be affected, and our business operations could be adversely
impacted. Threats to information security also exist in the processing of customer information through various other vendors and their
personnel.

 The occurrence of any failures or interruptions
may require us to identify alternative sources of such services, and we cannot assure you that we could negotiate terms that are as favorable
to us or could obtain services with similar functionality as found in our existing systems without the need to expend substantial resources,
if at all. Further, the occurrence of any systems failure or interruption could damage our reputation and result in a loss of customers
and business, could subject us to additional regulatory scrutiny, or could expose us to legal liability. Any of these occurrences could
have a material adverse effect on our financial condition and results of operations.

 We must keep pace with technological change
to remain competitive.

 Financial products and services have become increasingly
technology-driven. Our ability to meet the needs of our customers competitively, and in a cost-efficient manner, is dependent on the
ability to keep pace with technological advances and to invest in new technology as it becomes available, as well as related essential
personnel. In addition, technology has lowered barriers to entry into the financial services market and made it possible for financial
technology companies and other non-bank entities to offer financial products and services traditionally provided by banks. The ability
to keep pace with technological change is important, and the failure to do so, due to cost, proficiency or otherwise, could have a material
adverse impact on our business and therefore on our financial condition and results of operations.

 Risks 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.

 First Federal MHC owns a majority of our common
stock and, through its Board of Directors, is able to exercise voting control over most matters put to a vote of stockholders. As a federally
chartered mutual holding company, the board of directors of First Federal MHC must ensure that the interests of depositors of First Federal
of Hazard are represented and considered in matters put to a vote of stockholders of Kentucky First. Therefore, the votes cast by First
Federal MHC may not be in your personal best interests as a stockholder. For example, First Federal MHC may exercise its voting control
to prevent a sale or merger transaction in which stockholders could receive a premium for their shares, prevent a second-step conversion
transaction by First Federal MHC or defeat a stockholder nominee for election to the Board of Directors of Kentucky First Federal. However,
implementation of a stock-based incentive plan will require approval of Kentucky First Federal's stockholders other than First
Federal MHC. Federal Reserve Board regulations would likely prevent an acquisition of Kentucky First other than by another mutual holding
company or a mutual institution.

 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. On January 16, 2024, we announced that the Board had determined to suspend the payment
of dividends indefinitely.

 Our long-term ability to pay dividends to our
stockholders is based primarily upon the ability of the Banks to make capital distributions to Kentucky First Federal, and also on the
availability of cash at the holding company level in the event earnings are not sufficient to pay dividends according to the cash dividend
payout policy. Under Office of the Comptroller of the Currency safe harbor regulations, the Banks may each distribute to Kentucky First
capital not exceeding net retained income for the current calendar year and the prior two calendar years.

 First Federal MHC owns a majority of Kentucky
First Federal's outstanding stock. First Federal MHC has historically waived its right to dividends on the Kentucky First common
shares it owns and, without the waiver of such dividends, the amount of dividends paid to public stockholders is significantly higher
than it would be if First Federal MHC accepted dividends. First Federal MHC is not required to waive dividends, but Kentucky First expects
this practice to continue, subject to member and regulatory approval annually, to the extent Kentucky First continues to pay dividends
in future periods. First Federal MHC is required to obtain a waiver from the Federal Reserve Board allowing it to waive its right to
dividends.

 The Federal Reserve Board in 2011 issued regulations
that govern the activities of Kentucky First Federal and First Federal MHC and the regulations were implemented in the fourth quarter
of 2011. Under Section 239.8(d) of the Federal Reserve Board's Regulation MM governing dividend waivers, a mutual holding company
may waive its right to dividends on shares of its subsidiary if the mutual holding company gives written notice of the waiver to the
Federal Reserve Board and the Federal Reserve Board does not object. For a company such as First Federal MHC that waived dividends prior
to December 1, 2009, the Federal Reserve Board may not object to a dividend waiver if such waiver would not be detrimental to the safety
and soundness of the savings association subsidiary and the board of directors of the mutual holding company expressly determines that
such dividend waiver is consistent with the board's fiduciary duties to the members of the mutual holding company.

 To address concerns with respect to the conflict
of interest created by dividend waivers, Regulation MM requires the board of directors of the mutual holding company to adopt a resolution
that describes the conflict of interest that exists because of a director's ownership of stock in the subsidiary declaring the
dividends and any actions the mutual holding company board have taken to eliminate the conflict of interest, such as the directors'
waiving their right to receive dividends. Also, the resolution must contain an affirmation that a majority of the mutual members eligible
to vote have, within the 12 months prior to the declaration date of the dividend, voted to approve the waiver of dividends.

 First Federal MHC has received Federal Reserve
Board approval to waive quarterly dividends totaling $0.40 per share annually beginning with the dividend paid on September 28, 2012
and continuing through the dividend payable in the third quarter of 2024. It is expected that First Federal MHC will continue to waive
future dividends, to the extent Kentucky First continues to pay dividends in future periods, except to the extent dividends are needed
to fund First Federal MHC's continuing operations, subject to the ability of First Federal MHC to obtain regulatory approval of
its requests to waive dividends and to its ability to obtain member approval of dividend waivers. We cannot predict whether members will
continue to approve annual dividend waiver requests or whether the Federal Reserve Board will grant future dividend waiver requests and,
if granted, there can be no assurance as to the conditions, if any, the Federal Reserve Board will place on future dividend waiver requests
by grandfathered mutual holding companies such as First Federal MHC. If First Federal MHC is unable to waive the receipt of dividends,
our ability to pay dividends to our stockholders may be substantially impaired and the amounts of any such dividends may be significantly
reduced.

 On January 16, 2024, we announced that the Board
had determined to suspend the payment of dividends indefinitely. For additional information regarding suspension of our quarterly dividend,
please see "Liquidity 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."

 Item 1B. Unresolved Staff Comments.

 None.

 Item 1C. Cybersecurity.

 Cybersecurity Risk Management and Strategy

 The Company regards information and data as valuable
assets. As a result, we have implemented safeguards to protect corporate informational and data assets. Associated and established technology
resources maintain the integrity, availability, and privacy of confidential information of the respective assets. Additionally, we maintain
a similar risk-based approach to our third-party vendors including identifying and overseeing cybersecurity risks they present.

 Integration into Overall Risk Management System

 The Company employs comprehensive methodologies
for risk assessment and diligently identifies and evaluates potential cybersecurity threats and vulnerabilities across our systems, networks
and data assets. This process involves regular examinations of emerging threats, conducting penetration tests, vulnerability scanning
and thorough analysis of industry-specific risks.

 The Company continues to expand investments in
information technology security, including continuous end-user training, layered defenses, identifying and protecting critical assets,
strengthening monitoring and alerting.

 The Company's Information Security Officer
("ISO") is responsible for completing additional mandatory training to understand the processes, procedures, and technical
requirements for securing information assets across the Company.

 The Company has developed an Incident Response
Plan to guide its actions in responding to real and suspected information security incidents. This includes unlawful, unauthorized, or
unacceptable actions that involve a computer system or a computer network such as Distributed Denial of Service attacks, Corporate Account
Takeover schemes, or ransomware. Cybersecurity threats that are identified and deemed material are escalated and communicated directly
to the Incident Response Team, in collaboration with relevant information technology personnel, insurance providers, legal counsels and
when necessary, external cybersecurity firms specializing in forensic investigations.

 The Company sets forth enterprise-wide coordinated
responses to identified threats, ensuring timely mitigation and remediation, and facilitating awareness and communication. Tabletop exercises
are held regularly at the senior and executive management levels to validate roles and responsibilities, and response protocols respective
to cybersecurity threats.

 Third-party Access

 The Company has a fully integrated third-party
risk management program to identify, assess, monitor and mitigate risks associated with third-party relationships, including cybersecurity
risks. Under the program, risk ratings are assigned to each of the vendors based on an assessment of the vendor and its access to networks,
systems, and confidential information. An assessment is conducted on each vendor to identify and measure the risks from cybersecurity
threats that could impact our customer's data and our environment. Third parties that have access to our systems or customer data
must have appropriate technical and organizational security measures and security control principles based on commercially acceptable
security standards, and we require third parties in this class to agree by contract to manage their cybersecurity risks.

 Material Cybersecurity Threat Risks

 The Company has not experienced any material
losses relating to cybersecurity threats or incidents for the year ended June 30, 2025. We are not aware of any risks from cybersecurity
threats, including as a result of any previous cybersecurity incidents that have materially affected or are reasonably likely to materially
affect the Company, including our business strategy, results of operations or financial condition. Although we have a robust cybersecurity
program that is designed to assess, identify, and manage material risks from cybersecurity threats, we cannot provide absolute surety
that we have properly identified or mitigated all vulnerabilities or risks of incidents. The Company, and the third parties that the
Company engages, are subject to constant and evolving threats of attack and cybersecurity incidents may be more difficult to detect for
periods of time. A cybersecurity incident could harm our business strategy, results of operations, financial condition, reputation, and/or
subject us to regulatory actions or litigation which may result in fines, judgments or indictments.

 Cybersecurity Governance

 The Board of Directors is acutely aware of the
critical nature of managing risks associated with cybersecurity threats. The Board has oversight responsibilities to ensure effective
governance in managing these risks because it recognizes the significance of these threats to our operational integrity, shareholder
and customer confidence and reputation.

 Board of Directors Oversight

 The Board is responsible for the oversight of
cybersecurity risk management and is composed of members with expertise in risk management, technology, and finance, thereby equipping
them to manage and prevent cybersecurity risks effectively.

 Management's Role in Managing Risk

 The ISO plays a pivotal role in informing the
Board of Directors on cybersecurity risks. The ISO, other information security staff, and members of senior management meet regularly
as the Technology Steering Committee. Reports of their meetings are shared with the boards of our subsidiary banks. Committee reports
provide comprehensive briefings to both the Board and the Audit Committee as part of managements reporting. These briefings encompass
a broad range of topics, including:

 Current cybersecurity landscape
 and emerging threats;

 Status of ongoing cybersecurity
 initiatives and strategies;

 Incident reports and issues
 identified from any cybersecurity events; and

 Compliance with regulatory
 requirements and industry standards.

 In addition to our regularly scheduled Board
meetings, the ISO regularly communicates with senior staff regarding emerging or potential cybersecurity risks. They discuss any significant
developments in the cybersecurity domain, which when reported to the Board, ensures the Board's oversight is proactive and responsive.
The Board actively participates in strategic decisions related to cybersecurity, offering guidance and approval for major initiatives.
This involvement ensures that cybersecurity considerations are integrated into the broader strategic objectives of the Company. The Board
closely reviews these reports of the Bank's cybersecurity posture and the effectiveness of its risk management strategies prior
to approval. This review helps in identifying areas for improvement and ensuring the alignment of cybersecurity efforts with the overall
risk management framework.

 Cyber Risk Management Personnel

 The ISO directly reports to the CEO. The ISO
regularly meets with the CEO to update and discuss any cybersecurity risks and incidents affecting the Company. This ensures that the
highest levels of management are kept abreast of the cybersecurity posture and potential risks facing the Company. Furthermore, all significant
cybersecurity matters and strategic risk management decisions are promptly escalated to the Board of Directors, ensuring that they have
an up-to-date, comprehensive understanding of and can provide guidance on critical cybersecurity issues.

 Primary responsibility for assessing and providing
strategic direction to our cybersecurity program resides with our ISO. The ISO's experience includes prior leadership roles within
the Company, where they developed an expert level of understanding of the intersection between financial regulations and cloud-based
technologies. The ISO and other information systems staff possess in-depth knowledge and experience which are instrumental in developing
and executing our cybersecurity strategies. The ISO and the Tech Steering Committee oversee our governance programs, work with our technology-focused
leaders and partners to align security and compliance, and have developed our employee security awareness training program.

 Monitoring Cybersecurity Incidents

 The ISO and other information security staff
utilizes vendor relationships and various other internet based daily updates for the latest developments in cybersecurity, including
potential threats and innovative risk management techniques. This knowledge is crucial for the effective prevention, detection, mitigation,
and remediation of cybersecurity incidents. The ISO provides structure for clear processes to ensure the regular monitoring of our information
systems. This includes the deployment of advanced security measures and regular system audits to identify potential vulnerabilities.
In the event of a cybersecurity incident, we believe we are equipped with a well-defined Incident Response Plan that is adequately resourced.
This plan includes immediate actions to mitigate the impact and long-term strategies for remediation and prevent future incidents.

 Item 2. Properties.

 We conduct our business through seven offices.
The following table sets forth certain information relating to our offices at June 30, 2025.

 Year

 Opened/

 Acquired

 Owned

 or

 Leased

 Net

 Book

 Value at

 June 30,

 2025

 Approximate

 Square

 Footage

 (Dollars
 in thousands)

 First
 Federal of Hazard

 Main Office:

 655 Main Street

 Hazard, Kentucky 41701

 2016

 Owned

 $

 5,600

 First
 Federal of Kentucky

 Main Office:

 216 West Main Street

 Frankfort, Kentucky 40601

 2005

 Owned

 14,000

 194 Versailles
 Road

 Frankfort, Kentucky 40601

 2015

 Owned

 2,700

 1220 US
 127 South

 Frankfort, Kentucky 40601

 2005

 Owned

 40 4

 2,480

 340 West
 Main Street

 Danville, Kentucky 40422

 2012

 Owned

 8,700

 120 Skywatch
 Drive

 Danville, Kentucky 40422

 2012

 Owned

 2,300

 208 Lexington
 Street

 Lancaster, Kentucky 40444

 2012

 Owned

 4,300

 The net book value of our investment in premises
and equipment was $4.2 million at June 30, 2025. See Note E of Notes to Consolidated Financial Statements.

 Item 3. Legal Proceedings.

 From time to time, we may be defendants in claims
and lawsuits against us, such as claims to enforce liens, condemnation proceedings on properties in which we hold security interests,
claims involving the making and servicing of real property loans and other issues incident to our business. We are not a party to any
pending legal proceedings that we believe could have a material adverse effect on our financial condition, results of operations or cash
flows.

 Item 4. Mine Safety Disclosures.

 Not applicable.

 Item 5. Market for the
Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities.

 (a)

 The information contained
 under the sections captioned " Market Information " in the Company's Annual Report to Stockholders for the
 Fiscal Year Ended June 30, 2025 (the "Annual Report") filed as Exhibit 13 hereto is incorporated herein by reference.

 (b)

 Not applicable.

 (c)

 The Company repurchased
 no equity securities registered under the Securities Exchange Act of 1934, as amended, during any quarter of the fiscal year ended
 June 30, 2025.

 (d)

 The Company repurchased equity securities registered under the Securities Exchange Act of 1934, as amended, during the fourth quarter of the
 fiscal year ended June 30, 2025.

 Period

 (a)
 Total
 Number
 of
 Shares
 Purchased

 (b)
 Average
 Price Paid
 per Share

 (c)
 Total
 Number of
 Shares
 Purchased
 as Part of Publicly
 Announced
 Plans or
 Programs

 (d)
 Maximum
 Number
 of
 Shares
 That May
 Yet Be
 Purchased
 Under the Plans or
 Programs
 (1)

 April 2025
 Beginning date: April 1
 Ending date: April 30

 —

 —

 —

 —

 May 2025
 Beginning date: May 1
 Ending date: May 31

 —

 —

 —

 —

 June 2025
 Beginning date: June 1
 Ending date: June 30

 —

 —

 —

 —

 Total

 —

 —

 —

 —

 (1)

 No stock was purchased
 in the fiscal years ended June 30, 2024 and 2025. There is no stock repurchase plan in place as of June 30, 2025.

 Item 6. [Reserved].

 Item 7. Management's Discussion and
Analysis of Financial Condition and Results of Operations.

 The information contained in the section captioned
" Management's Discussion and Analysis of Financial Condition and Results of Operations " in the Annual Report,
is incorporated herein by reference.

 Item 7A. Quantitative and Qualitative Disclosures
About Market Risk.

 This item is not applicable, as the Company is
a smaller reporting company.

 Item 8. Financial Statements and Supplementary
Data.

 The Consolidated Financial Statements, Notes
to Consolidated Financial Statements, Report of Independent Registered Public Accounting Firm and Selected Financial Data, which are
listed under Item 15 herein, are included in the Annual Report and are incorporated herein by reference.

 Item 9. Changes in and Disagreements With
Accountants on Accounting and Financial Disclosure.

 None.

 Item 9A. Controls and Procedures.

 (a)

 Disclosure Controls
 and Procedures

 The Company's management, including the
Company's principal executive officer and principal financial officer, have evaluated the effectiveness of the Company's
"disclosure controls and procedures," as such term is defined in Rule 13a-15(e) promulgated under the Securities Exchange
Act of 1934, as amended, (the "Exchange Act"). Based upon their evaluation, the principal executive officer and principal
financial officer concluded that, as of the end of the period covered by this report, the Company's disclosure controls and procedures
were effective for the purpose of ensuring that the information required to be disclosed in the reports that the Company files or submits
under the Exchange Act with the Securities and Exchange Commission (the "SEC") (1) is recorded, processed, summarized and
reported within the time periods specified in the SEC's rules and forms, and (2) is accumulated and communicated to the Company's
management, including its principal executive and principal financial officers, as appropriate to allow timely decisions regarding required
disclosure.

 (b)

 Internal Control Over
 Financial Reporting

 Parent Company of First Federal Savings and Loan Association of
Hazard and First Federal Savings Bank of Kentucky

 MANAGEMENT'S ANNUAL REPORT ON INTERNAL
CONTROL

 OVER FINANCIAL REPORTING

 Management of Kentucky First Federal Bancorp
(the "Company") is responsible for the preparation, integrity, and fair presentation of the consolidated financial statements
included in this annual report. The Company's consolidated financial statements have been prepared in accordance with accounting
principles generally accepted in the United States of America and, as such, include some amounts that are based on the best estimates
and judgments of management.

 The Company's management is responsible
for establishing and maintaining adequate internal control over financial reporting. The internal control system is designed to provide
reasonable assurance to management and the Board of Directors regarding the reliability of the company's financial reporting and
the preparation and presentation of financial statements for external reporting purposes in conformity with accounting principles generally
accepted in the United States of America, as well as to safeguard assets from unauthorized use or disposition. The system of internal
control over financial reporting is evaluated for effectiveness by management and tested for reliability through a program of internal
audit with actions taken to correct potential deficiencies as they are identified. Because of inherent limitations in any internal control
system, no matter how well designed, misstatements due to error or fraud may occur and not be detected, including the possibility of
the circumvention or overriding controls. Accordingly, even an effective internal control system can provide only reasonable assurance
with respect to financial statement preparation. Further, because of changes in conditions, internal control effectiveness may vary over
time.

 Management assessed the effectiveness of the
company's internal control over financial reporting as of June 30, 2025, based upon criteria set forth in Internal Control-Integrated
Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission – 2013 ("COSO").

 Based on this assessment and on the forgoing
criteria, management has concluded that, as of June 30, 2025, the Company's internal control over financial reporting is effective.

 This annual report does not include an attestation
report of the Company's registered public accounting firm regarding internal control over financial reporting. Management's
report was not subject to attestation by the Company's registered public accounting firm pursuant to the exemption provided to
issuers that are not "large accelerated filers" or "accelerated filers" under the Dodd-Frank Wall Street Reform
and Consumer Protection Act.

 /s/
 Don D. Jennings

 /s/
 Tyler W. Eades

 Don D. Jennings

 Tyler W. Eades

 Chief Executive Officer

 Vice President and Chief Financial Officer

 (c)

 Changes to Internal
 Control Over Financial Reporting

 There were no changes in our internal control
over financial reporting that occurred during the quarter ended June 30, 2025 that have materially affected, or are reasonably likely
to materially affect, our internal control over financial reporting.

 Item 9B. Other Information.

 During the three months ended June 30, 2025,
no director or officer of the Company adopted or terminated any "Rule 10b5-1 trading arrangement," or any "non-Rule
10b-5 trading arrangement," as such terms are defined in Item 408(a) of Regulation S-K.

 Item 9C. Disclosure Regarding Foreign Jurisdictions
that Prevent Inspections.

 Not applicable.

 Item 10. Directors, Executive Officers,
and Corporate Governance.

 Directors

 The information contained under the section captioned
" Item I – Election of Directors " in the Company's definitive proxy statement for the Company's 2025
Annual Meeting of Stockholders (the "Proxy Statement") is incorporated herein by reference.

 Executive Officers

 The information regarding the Company's
executive officers is incorporated herein by reference to "Item I – Election of Directors" in the Proxy Statement.

 Corporate Governance

 Information regarding the Company's Audit
Committee and Audit Committee financial expert is incorporated herein by reference to the section captioned "Corporate Governance
and Board Matters – Committees of the Board of Directors – Audit Committee" in the Proxy Statement.

 Compliance with Section 16(a) of the Exchange
Act

 Information regarding compliance with Section
16(a) of the Exchange Act is incorporated by reference to section captioned "Other Information Relating to Directors and Executive
Officers – Section 16(a) Beneficial Ownership Reporting Compliance" in the Proxy Statement.

 Disclosure of Code of Ethics

 Kentucky First has adopted a Code of Ethics and
Business Conduct that applies to all of its directors, officers and employees. To obtain a copy of this document at no charge, please
write to Kentucky First Federal Bancorp, P.O. Box 535, Frankfort, Kentucky 40602-0535, or call toll-free (888) 818-3372 and ask for Investor
Relations.

 Insider Trading Polices and Procedures

 The Company has adopted insider trading policies and procedures governing the purchase, sale and/or other dispositions of its securities
by directors, officers and employees (or the company itself) that are reasonably designed to promote compliance with insider trading laws,
rules and regulations and any applicable listing standards. Our insider trading policies are filed under Exhibit 19 to this Annual Report
on Form 10-K.

 Item 11. Executive Compensation.

 The information contained under the section captioned
" Executive Compensation " in the Proxy Statement is incorporated herein by reference.

 Item 12. Security Ownership of Certain
Beneficial Owners and Management and Related Stockholder Matters.

 (a)

 Security Ownership of
 Certain Beneficial Owners. Information required by this item is incorporated herein by reference to the section captioned " Stock
 Ownership " in the Proxy Statement.

 (b)

 Security Ownership of
 Management. Information required by this item is incorporated herein by reference to the section captioned " Stock Ownership "
 in the Proxy Statement.

 (c)

 Changes in Control.
 Management of the Company knows of no arrangements, including any pledge by any person of securities of the Company, the operation
 of which may at a subsequent date result in a change in control of the Company.

 (d)

 Equity Compensation
 Plans. The following table sets forth certain information with respect to the Company's equity compensation plans as of
 June 30, 2025.

 (a)

 Number of
 securities
 to be issued
 upon
 exercise of
 outstanding options,
 warrants
 and
 rights

 (b)
 Weighted-
 average
 exercise
 price of
 outstanding
 options,
 warrants
 and rights

 (c)
 Number of
 securities
 remaining
 available
 for future
 issuance
 under equity
 compensation
 plans
 (excluding
 securities
 reflected in
 column (a))

 Equity compensation plans approved by security holders

 —

 —

 —

 Equity compensation plans not approved by security holders

 —

 —

 —

 Total

 —

 —

 —

 Item 13. Certain Relationships and Related
Transactions, and Director Independence.

 Certain Relationships and Related Transactions

 The information required by this item is incorporated
herein by reference to the section captioned " Other Information Relating to Directors and Executive Officers – Transactions
with Related Persons " in the Proxy Statement.

 Corporate Governance

 For information regarding director independence,
the section captioned, "Corporate Governance and Board Matters – Director Independence" is incorporated herein
by reference.

 Item 14. Principal Accountant Fees and
Services.

 The information required by this item is incorporated
herein by reference to the section captioned "Audit Related Matters" in the Proxy Statement.

 Item 15. Exhibits and Financial Statement
Schedules.

 (a)

 List of Documents
 Filed as Part of This Report

 (1)

 Financial Statements.
 The following consolidated financial statements are incorporated by reference from Item 8 hereof (see Exhibit 13):

 Report of Independent Registered Public Accounting Firm ( Clark, Schaefer, Hackett & Co., Cincinnati, Ohio, PCAOB ID 539)

 Consolidated Balance Sheets as of June 30, 2025 and 2024

 Consolidated Statements of Operations for the Years Ended June 30, 2025 and 2024

 Consolidated Statements of Comprehensive Income for the Years Ended June 30, 2025 and 2024

 Consolidated Statements of Changes in Shareholders' Equity for the Years Ended June 30, 2025 and 2024

 Consolidated Statements of Cash Flows for the Years Ended June 30, 2025 and 2024

 Notes to Consolidated Financial Statements

 (2)

 Financial Statement
 Schedules. All schedules for which provision is made in the applicable accounting regulations of the Securities and Exchange
 Commission are omitted because of the absence of conditions under which they are required or because the required information is
 included in the consolidated financial statements and related notes thereto.

 (3)

 Exhibits.
 The following is a list of exhibits filed as part of this Annual Report on Form 10-K and is also the Exhibit Index.

 No.

 Description

 3.1 1

 Charter
 of Kentucky First Federal Bancorp

 3.2 2

 Amended
 and Restated Bylaws of Kentucky First Federal Bancorp

 3.3 3

 Amendment
 No. 1 to the Bylaws of Kentucky First Federal Bancorp

 3.4 4

 Amendment
 No. 2 to the Bylaws of Kentucky First Federal Bancorp

 3.5 5

 Amendment
 No. 3 to the Bylaws of Kentucky First Federal Bancorp

 4.1 1

 Specimen
 Stock Certificate of Kentucky First Federal Bancorp

 4.2 6

 Description
 of Kentucky First Federal Bancorp's Common Stock Registered Under Section 12 of the Securities and Exchange Act of 1934

 10.1 7

 Employment
 Agreement between Kentucky First Federal Bancorp and Don D. Jennings, as amended

 10.2 7

 Employment
 Agreement between First Federal Savings Bank of Kentucky and Don D. Jennings, as amended

 10.5 7

 Employment
 Agreement between First Federal Savings Bank of Kentucky and Teresa Kuhl, as amended

 10.6 7

 Amended
 and Restated First Federal Savings and Loan Association of Hazard Change in Control Severance Compensation Plan

 10.7 7

 Amended
 and Restated First Federal Savings Bank of Kentucky Change in Control Severance Compensation Plan

 10.8 7

 Amended
 and Restated First Federal Savings and Loan Association Supplemental Executive Retirement Plan

 10.15 6

 Employment
 Agreement by and between First Federal Savings and Loan of Hazard and Jamie S. Coffey

 10.16 8

 Formal
 Written Agreement, dated August 13, 2024, between First Federal Savings Bank of Kentucky and the Office of the Comptroller of the
 Currency

 Annual Report to Stockholders for the Fiscal Year Ended June 30, 2025

 Kentucky First Federal Bancorp Policy Regarding Insider Trading

 Subsidiaries

 31.1

 Rule 13a-14(a) Certification of Chief Executive Officer

 31.2

 Rule 13a-14(a) Certification of Chief Financial Officer

 Section 1350 Certifications

 Kentucky First Federal Bancorp Incentive-Compensation Recoupment Policy

 The following materials
 Language): (i) the Consolidated Balance Sheets, (ii) Consolidated Statements of Operations, (iii) the Consolidated Statements of
 Comprehensive Income, (iv) the Consolidated Statements of Changes in Shareholders' Equity, (v) the Consolidated Statements
 of Cash Flows and the (vi) Notes to Consolidated Financial Statements.

 Cover Page Interactive

 Management contract or
 compensation plan or arrangement.

 (1)

 reference to the Company's Registration Statement on Form S-1 (File No. 333-119041).

 (2)

 reference to the Company's Annual Report on Form 10-K for the Year Ended June 30, 2012 (File No. 0-51176).

 (3)

 reference to the Company's Form 8-K filed on August 25, 2017 (File No. 000-51176).

 (4)

 reference to the Company's Form 8-K filed on September 28, 2020 (File No. 000-51176).

 (5)

 reference to the Company's Form 8-K filed on February 2, 2022 (File No. 000-51176).

 (6)

 reference to the Company's Annual Report on Form 10-K for the Year Ended June 30, 2020 (File No. 0-51176).

 (7)

 reference to the Company's Quarterly Report on Form 10-Q for the quarter ended December 31, 2008 (File No. 0-51176).

 (8)

 reference to the Company's Form 8-K filed on August 15, 2024 (File No. 000-51176).

 (9)

reference to the Company's Annual Report on Form 10-K for the Year Ended June 30, 2024 (File No. 0-51176).

 (b)

 Exhibits. The
 exhibits required by Item 601 of Regulation S-K are either filed as part of this Annual Report on Form 10-K or incorporated by reference
 herein.

 (c)

 Financial Statements
 and Schedules Excluded from Annual Report. There are no other financial statements and financial statement schedules which
 were excluded from the Annual Report to Stockholders pursuant to Rule 14a-3(b) which are required to be included herein.

 Item 16. Form 10-K Summary.

 Not applicable.

 SIGNATURES

 Pursuant to the requirements of Section 13 or
15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned,
thereunto duly authorized.

 KENTUCKY FIRST FEDERAL BANCORP

 September 30, 2025

 By:

 /s/ Don D.
 Jennings

 Don D. Jennings

 Chief Executive Officer

 Pursuant to the requirements of the Securities
Exchange Act of 1934, this report has been signed below by the following persons on behalf of the registrant and in the capacities and
on the dates indicated.

 /s/
 Don D. Jennings

 Don
 D. Jennings

 Chief
 Executive Officer and Director

 (Principal
 Executive Officer)

 /s/
 Tyler W. Eades

 Tyler
 W. Eades

 Vice
 President, Chief Financial Officer and Treasurer

 (Principal
 Financial and Accounting Officer)

 /s/
 Walter G. Ecton, Jr.

 Walter
 G. Ecton, Jr.

 Chairman
 of the Board

 /s/
 Stephen G. Barker

 Stephen
 G. Barker

 /s/
 R. Clay Hulette

 R.
 Clay Hulette

 /s/
 Lou Ella Farler

 Lou
 Ella Farler

 /s/
 David R. Harrod

 David
 R. Harrod

 /s/
 William H. Johnson

 William
 H. Johnson