Kentucky First Federal Bancorp

MARKET INFORMATION

The Company’s common stock began trading under the symbol “KFFB” on the Nasdaq National Market on March 3, 2005. There are currently 8,086,715 shares of common stock outstanding and approximately 500 holders of record of the common stock. Following are the high and low closing prices, by fiscal quarter, as reported on the Nasdaq National Market during the periods indicated, as well as dividends declared on the common stock during each quarter.

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TABLE OF CONTENTS

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Dear Shareholder:

We are pleased to present the 2025 Annual Report for Kentucky First Federal Bancorp. We encourage you to read both the Annual Report and Proxy Statement. We encourage you to vote and, if possible, to attend our annual meeting on November 18, 2025 as we return to The Challenger Center on the campus of Hazard Community and Technical College for this year’s meeting. The location is One Community College Drive in Hazard, KY.

After a very challenging year in 2024, in the current year we have begun to see some improvement in net income. While our earnings for the year were very low, almost all of the year’s $181,000 in net income were the result of the $175,000 of net income recorded in the fourth quarter ending June 30, 2024. Our assets have continued to reprice favorably, and after nearly two years of increasing costs, our cost of funds began to decline in the fourth quarter. The recent and expected rate cuts in 2025 and beyond are expected to provide further benefit to our results of operations.

We essentially doubled our non-interest income year-to-year as we experienced some success in originating loans for sale in the secondary market. Lower market interest rates should help this trend continue in the next year.

We have continued to work with the Office of the Comptroller of the Currency, the primary regulator of First Federal of Kentucky, to respond to the formal agreement entered into by the bank on August 13, 2024. Ultimately, our response to the agreement, and part of our earnings plan for both banks, will be to continue to reduce reliance on non-core funding, to diversify our income streams, to shift more of our lending into the secondary market to reduce interest rate risk and increase non-interest income, and to equip the banks to compete in broader banking areas to include commercial lending, commercial deposits, and public deposits.

The Kentucky First Board, the Board of First Federal of Hazard, and the Hazard community suffered a big loss in December of last year when Bill Gorman, Jr., passed away. Billy had served our boards ably since 2010 and he will certainly be missed.

As always, we request that our shareholders remember that our banks would appreciate consideration for all of your loan and deposit needs.

Sincerely,

Don Jennings

President and Chief Executive Officer