NOTES TO CONDENSED
CONSOLIDATED FINANCIAL STATEMENTS
December
31, 2017
(unaudited)
The
Kentucky First Federal Bancorp (“Kentucky First” or the “Company”) was incorporated under federal law
in March 2005, and is the mid-tier holding company for First Federal Savings and Loan Association of Hazard, Hazard, Kentucky
(“First Federal of Hazard”) and Frankfort First Bancorp, Inc. (“Frankfort First”). Frankfort First is
the holding company for First Federal Savings Bank of Kentucky, Frankfort, Kentucky (“First Federal of Kentucky”).
First Federal of Hazard and First Federal of Kentucky (hereinafter collectively the “Banks”) are Kentucky First’s
primary operations, which consist of operating the Banks as two independent, community-oriented savings institutions.
In
December 2012, the Company acquired CKF Bancorp, Inc., a savings and loan holding company which operated three banking locations
in Boyle and Garrard Counties in Kentucky. In accounting for the transaction, the assets and liabilities of CKF Bancorp were recorded
on the books of First Federal of Kentucky in accordance with accounting standard ASC 805, Business Combinations.
1.
Basis of Presentation
The accompanying unaudited condensed consolidated
financial statements, which represent the consolidated balance sheets and results of operations of the Company, were prepared
in accordance with the instructions for Form 10-Q and, therefore, do not include information or footnotes necessary for a complete
presentation of financial position, results of operations and cash flows in conformity with U.S. generally accepted accounting
principles. However, in the opinion of management, all adjustments (consisting of only normal recurring adjustments) which are
necessary for a fair presentation of the consolidated financial statements have been included. The results of operations for the
six- and three-month periods ended December 31, 2017, are not necessarily indicative of the results which may be expected for
an entire fiscal year. The consolidated balance sheet as of June 30, 2017 has been derived from the audited consolidated balance
sheet as of that date. Certain information and note disclosures normally included in the Company’s annual financial statements
prepared in accordance with U.S. generally accepted accounting principles have been condensed or omitted. These consolidated financial
statements should be read in conjunction with the consolidated financial statements and notes thereto included in the Company’s
Form 10-K annual report for 2017 filed with the Securities and Exchange Commission.
Principles
of Consolidation
- The consolidated financial statements include the accounts of the Company, Frankfort First, and its
wholly-owned banking subsidiaries, First Federal of Hazard and First Federal of Kentucky (collectively hereinafter “the
Banks”). All intercompany transactions and balances have been eliminated in consolidation.
Kentucky
First Federal Bancorp
NOTES TO CONDENSED CONSOLIDATED FINANCIAL
STATEMENTS
December
31, 2017
(unaudited)
New
Accounting Standards
:
FASB
ASC 606 -
In May 2014, FASB issued ASU 2014-09, Revenue from Contracts with Customers, and subsequently issued several
amendments to the standard. The core principle of ASU 2014-09 is that entities should recognize revenue to depict the transfer
of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled
in exchange for those goods or services. Additional disclosures are required to provide information regarding the nature, amount,
timing, and uncertainty of revenue and cash flows arising from contracts with customers. As amended, ASU 2014-09 becomes effective
for annual periods and interim periods within those annual periods beginning after December 15, 2017, or the fiscal year beginning
July 1, 2018, with respect to the Company. Management is finalizing its assessment of impact of the effects of ASU 2014-09, as
amended, on the Company’s financial statements and disclosures. We do not expect the new standard or any of the amendments
to result in a material change from our current accounting for revenue, because the majority of the Company’s financial
instruments are outside of the scope of Topic 606. Management will continue to evaluate the impact, if any, of any additional
guidance that is forthcoming.
FASB
ASC 825 -
In January 2016, the FASB issued an update ASU No. 2016-01, Financial Instruments – Overall (Subtopic
825-10): Recognition and Measurement of Financial Assets and Financial Liabilities. The amendments in this update: 1) Require
equity investments (except those accounted for under the equity method of accounting or those that result in consolidation of
the investee) to be measured at fair value with changes in fair value recognized in net income. 2) Simplify the impairment assessment
of equity investments without readily determinable fair values by requiring a qualitative assessment to identify impairment. When
a qualitative assessment indicates that impairment exists, an entity is required to measure the investment at fair value. 3) Eliminate
the requirement to disclose the methods and significant assumptions used to estimate the fair value that is required to be disclosed
for financial instruments measured at amortized cost on the balance sheet. 4) Require entities to use the exit price notion when
measuring the fair value of financial instruments for disclosure purposes. 5) Require an entity to present separately in other
comprehensive income the portion of the total change in fair value of a liability resulting from a change in the instrument-specific
credit risk when the entity has elected to measure the liability at fair value in accordance with the fair value option for financial
instruments. 6) Require separate presentation of financial assets and financial liabilities by measurement category and form of
financial asset (that is, securities or loans and receivables) on the balance sheet or the accompanying notes to the financial
statements. 7) Clarify that an entity should evaluate the need for a valuation allowance on a deferred tax asset related to available-for-sale
securities in combination with the entity’s other deferred tax assets. The amendments in this update become effective for
annual periods and interim periods within those annual periods beginning after December 15, 2017, or the fiscal year beginning
July 1, 2018, with respect to the Company. Management is finalizing its assessment of impact of the effects of adopting the new
guidance on the consolidated financial statements, but it is not expected to have a material impact. However, a fair value estimate
on a loan portfolio would consider exit price.
Kentucky
First Federal Bancorp
NOTES TO CONDENSED CONSOLIDATED FINANCIAL
STATEMENTS
December
31, 2017
(unaudited)
New
Accounting Standards
(continued)
FASB
ASC 718 -
In March 2016, the FASB issued ASU No. 2016-09, Compensation – Stock Compensation (Topic 718): Improvements
to Employee Shared-Based Payment Accounting. The amendments are intended to improve the accounting for employee shared-based payments
and affects all organizations that issue share-based payment awards to their employees. Several aspects of the accounting for
share-based payment award transactions are simplified, including the income tax consequences, the classification of awards as
either equity or liabilities, and the classification on the statement of cash flows. The amendments in this update became effective
July 1, 2017, with respect to the Company and, as expected, it did not have a material impact of the consolidated financial statements.
FASB
ASC 326 -
In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement
of Credit Losses on Financial Instruments. The final standard will change estimates for credit losses related to financial
assets measured at amortized cost such as loans, held-to-maturity debt securities, and certain other contracts. For estimating
credit losses, the FASB is replacing the incurred loss model with an expected loss model, which is referred to as the current
expected credit loss (CECL) model. The Company will now use forward-looking information to enhance its credit loss estimates.
The amendment requires enhanced disclosures to aid investors and other users of financial statements to better understand significant
estimates and judgments used in estimating credit losses, as well as the credit quality and underwriting standards of our portfolio.
The largest impact to the Company will be on its allowance for loan and lease losses, although the ASU also amends the accounting
for credit losses on available-for-sale debt securities and purchased financial assets with credit deterioration. The standard
is effective public companies for annual periods and interim periods within those annual periods beginning after December 15,
2019, or in the Company’s case the fiscal year beginning July 1, 2020. ASU 2016-13 will be applied through a cumulative
effect adjustment to retained earnings (modified-retrospective approach), except for debt securities for which an other-than-temporary
impairment had been recognized before the effective date. A prospective transition approach is required for these debt securities.
We have formed a functional committee that is assessing our data and system needs and are evaluating the impact of adopting the
new guidance. We expect to recognize a one-time cumulative effect adjustment to the allowance for loan losses as of the beginning
of the first reporting period in which the new standard is effective, but cannot yet determine the magnitude of any such one-time
adjustment or the overall impact of the new guidance on the consolidated financial statements. However, the Company does expect
ASU 2016-13 to add complexity and costs to its current credit loss evaluation process.
Kentucky
First Federal Bancorp
NOTES TO CONDENSED CONSOLIDATED FINANCIAL
STATEMENTS
December
31, 2017
(unaudited)
New
Accounting Standards
(continued)
FASB
ASC 230 -
In August 2016, the FASB issued ASU No. 2016-15,
Statement of Cash Flows (Topic 230): Classification of Certain
Cash Receipts and Cash Payments.
The amendments in ASU 2016-15 provide guidance on the following eight specific cash flow
issues:
1.
Debt Prepayment or Debt Extinguishment Costs;
2.
Settlement of Zero-Coupon Debt Instruments or Other Debt Instruments with Coupon Interest Rates That Are Insignificant in Relation
to the Effective Interest Rate of the Borrowing;
3.
Contingent Consideration Payments Made after a Business Combination;
4.
Proceeds from the Settlement of Insurance Claims;
5.
Proceeds from the Settlement of Corporate-Owned Life Insurance Policies, including Bank-Owned Life Insurance Policies;
6.
Distributions Received from Equity Method Investees;
7.
Beneficial Interests in Securitization Transactions; and
8.
Separately Identifiable Cash Flows and Application of the Predominance Principle.
The
amendments are effective for public business entities for fiscal years beginning after December 15, 2017, and interim periods
within those fiscal years. For all other entities, the amendments are effective for fiscal years beginning after December 15,
2018, and interim periods within fiscal years beginning after December 15, 2019. Early adoption is permitted, including adoption
in an interim period. Management is finalizing its assessment of impact of the effects of adopting the new guidance on the consolidated
financial statements, but it is not expected to have a material impact.
FASB ASC 310 –
In March
2017, the FASB issued ASU No. 2017-08,
Receivables- Nonrefundable Fees and Other Costs (Subtopic 310-20): Premium Amortization
on Purchased Callable Debt Securities.
The amendments in this update shorten the amortization period for certain callable
debt securities held at a premium. Specifically, the amendments requite the premium to be amortized to the earliest call date.
The amendments do not require an accounting change for securities held at a discount; the discount continues to be amortized to
maturity. The amendments in this update more closely align the amortization period of premiums and discounts to expectations incorporated
in market pricing on the underlying securities, which, in turn, are expected to more closely align interest income recorded on
bonds held at a premium or a discount with the economics of the underlying instrument. For public business entities, the amendments
in this update are effective for fiscal years, and the interim periods within those fiscal years, beginning after December 15,
2018. Changes resulting from the amendments in this update should be recognized on a modified retrospective basis through a cumulative-effect
adjustment directly to retained earnings as of the beginning of the period of adoption. Additionally, in the period of adoption,
an entity should provide disclosures about a change in accounting principle. Management elected to adopt the guidance in the quarter
ended December 31, 2017 and there was not a material impact on the Company’s financial statements.
Kentucky
First Federal Bancorp
NOTES TO CONDENSED CONSOLIDATED FINANCIAL
STATEMENTS
December
31, 2017
(unaudited)
Reclassifications
- Certain amounts presented in prior periods have been reclassified to conform to the current period presentation. Such reclassifications
had no impact on prior years’ net income or shareholders’ equity.
2.
Earnings Per Share
Diluted
earnings per share is computed taking into consideration common shares outstanding and dilutive potential common shares to be
issued or released under the Company’s share-based compensation plans. The factors used in the basic and diluted earnings
per share computations follow:
|
|
Six months ended
December 31,
|
|
|
Three months ended
December 31,
|
|
(in thousands)
|
|
2017
|
|
|
2016
|
|
|
2017
|
|
|
2016
|
|
Net income allocated to common shareholders,
basic and diluted
|
|
$
|
1,149
|
|
|
$
|
551
|
|
|
$
|
869
|
|
|
$
|
254
|
|
|
|
Six months ended
December 31,
|
|
|
Three months ended
December 31,
|
|
|
|
2017
|
|
|
2016
|
|
|
2017
|
|
|
2016
|
|
Weighted average common shares outstanding,
basic and diluted
|
|
|
8,361,941
|
|
|
|
8,382,239
|
|
|
|
8,364,276
|
|
|
|
8,384,586
|
|
There
were no stock option shares outstanding for the six- or three-month periods ended December 31, 2017 and 2016.
Kentucky
First Federal Bancorp
NOTES TO CONDENSED CONSOLIDATED FINANCIAL
STATEMENTS (continued)
December
31, 2017
(unaudited)
3.
Investment Securities
The
following table summarizes the amortized cost and fair value of securities available-for-sale and securities held-to-maturity
at December 31, 2017 and June 30, 2017, the corresponding amounts of gross unrealized gains recognized in accumulated other comprehensive
income and gross unrecognized gains and losses:
|
|
December 31, 2017
|
|
(in thousands)
|
|
Amortized cost
|
|
|
Gross unrealized/ unrecognized
gains
|
|
|
Gross
unrealized/ unrecognized
losses
|
|
|
Estimated fair value
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Available-for-sale Securities
|
|
|
|
|
|
|
|
|
|
|
|
|
Agency mortgage-backed: residential
|
|
$
|
65
|
|
|
$
|
1
|
|
|
$
|
--
|
|
|
$
|
66
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Held-to-maturity Securities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Agency mortgage-backed: residential
|
|
$
|
1,249
|
|
|
$
|
33
|
|
|
$
|
11
|
|
|
$
|
1,271
|
|
|
|
June 30, 2017
|
|
(in thousands)
|
|
Amortized cost
|
|
|
Gross unrealized/ unrecognized
gains
|
|
|
Gross
unrealized/ unrecognized
losses
|
|
|
Estimated fair value
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Available-for-sale Securities
|
|
|
|
|
|
|
|
|
|
|
|
|
Agency mortgage-backed: residential
|
|
$
|
70
|
|
|
$
|
1
|
|
|
$
|
--
|
|
|
$
|
71
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Held-to-maturity Securities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Agency mortgage-backed: residential
|
|
$
|
1,487
|
|
|
$
|
45
|
|
|
$
|
9
|
|
|
$
|
1,523
|
|
At
December 31, 2017, the Company’s debt securities consist of mortgage-backed securities, which do not have a single maturity
date. The amortized cost and fair value of held-to-maturity debt securities are shown by contractual maturity. Securities not
due at a single maturity date are shown separately.
Our pledged securities totaled $637,000 and
$722,000 at December 31, 2017 and June 30, 2017, respectively.
We
evaluated securities in unrealized loss positions for evidence of other-than-temporary impairment, considering duration, severity,
financial condition of the issuer, our intention to sell or requirement to sell. Those securities were agency bonds, which carry
a very limited amount of risk. Also, we have no intention to sell nor feel that we will be compelled to sell such securities before
maturity. Based on our evaluation, no impairment has been recognized through earnings.
Kentucky
First Federal Bancorp
NOTES TO CONDENSED CONSOLIDATED FINANCIAL
STATEMENTS (continued)
December
31, 2017
(unaudited)
4.
Loans receivable
The
composition of the loan portfolio was as follows:
|
|
December 31,
|
|
|
June 30,
|
|
(in thousands)
|
|
2017
|
|
|
2017
|
|
|
|
|
|
|
|
|
Residential real estate
|
|
|
|
|
|
|
One- to four-family
|
|
$
|
199,544
|
|
|
$
|
197,936
|
|
Multi-family
|
|
|
15,247
|
|
|
|
15,678
|
|
Construction
|
|
|
5,683
|
|
|
|
2,398
|
|
Land
|
|
|
869
|
|
|
|
1,304
|
|
Farm
|
|
|
2,385
|
|
|
|
2,062
|
|
Nonresidential real estate
|
|
|
30,053
|
|
|
|
29,211
|
|
Commercial nonmortgage
|
|
|
2,466
|
|
|
|
2,540
|
|
Consumer and other:
|
|
|
|
|
|
|
|
|
Loans on deposits
|
|
|
1,634
|
|
|
|
1,607
|
|
Home equity
|
|
|
7,110
|
|
|
|
6,853
|
|
Automobile
|
|
|
29
|
|
|
|
42
|
|
Unsecured
|
|
|
534
|
|
|
|
400
|
|
|
|
|
265,554
|
|
|
|
260,031
|
|
|
|
|
|
|
|
|
|
|
Undisbursed portion of loans in process
|
|
|
(3,022
|
)
|
|
|
(296
|
)
|
Deferred loan origination fees (costs)
|
|
|
(195
|
)
|
|
|
42
|
|
Allowance for loan losses
|
|
|
(1,531
|
)
|
|
|
(1,533
|
)
|
|
|
$
|
260,806
|
|
|
$
|
258,244
|
|
The
following table presents the activity in the allowance for loan losses by portfolio segment for the six months ended December
31, 2017:
(in thousands)
|
|
Beginning balance
|
|
|
Provision for loan losses
|
|
|
Loans charged off
|
|
|
Recoveries
|
|
|
Ending balance
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Residential real estate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
One- to four-family
|
|
$
|
773
|
|
|
$
|
(29
|
)
|
|
$
|
(49
|
)
|
|
$
|
44
|
|
|
$
|
739
|
|
Multi-family
|
|
|
243
|
|
|
|
1
|
|
|
|
--
|
|
|
|
--
|
|
|
|
244
|
|
Construction
|
|
|
6
|
|
|
|
8
|
|
|
|
--
|
|
|
|
--
|
|
|
|
14
|
|
Land
|
|
|
4
|
|
|
|
(2
|
)
|
|
|
--
|
|
|
|
--
|
|
|
|
2
|
|
Farm
|
|
|
9
|
|
|
|
1
|
|
|
|
--
|
|
|
|
--
|
|
|
|
10
|
|
Nonresidential real estate
|
|
|
270
|
|
|
|
23
|
|
|
|
--
|
|
|
|
--
|
|
|
|
293
|
|
Commercial nonmortgage
|
|
|
6
|
|
|
|
--
|
|
|
|
--
|
|
|
|
--
|
|
|
|
6
|
|
Consumer and other:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans on deposits
|
|
|
4
|
|
|
|
--
|
|
|
|
--
|
|
|
|
--
|
|
|
|
4
|
|
Home equity
|
|
|
17
|
|
|
|
1
|
|
|
|
--
|
|
|
|
--
|
|
|
|
18
|
|
Automobile
|
|
|
--
|
|
|
|
--
|
|
|
|
--
|
|
|
|
--
|
|
|
|
--
|
|
Unsecured
|
|
|
1
|
|
|
|
--
|
|
|
|
--
|
|
|
|
--
|
|
|
|
1
|
|
Unallocated
|
|
|
200
|
|
|
|
--
|
|
|
|
--
|
|
|
|
--
|
|
|
|
200
|
|
Totals
|
|
$
|
1,533
|
|
|
$
|
3
|
|
|
$
|
(49
|
)
|
|
$
|
44
|
|
|
$
|
1,531
|
|
Kentucky
First Federal Bancorp
NOTES TO CONDENSED CONSOLIDATED FINANCIAL
STATEMENTS (continued)
December
31, 2017
(unaudited)
4.
Loans receivable
(continued)
The
following table presents the activity in the allowance for loan losses by portfolio segment for the three months ended December
31, 2017:
(in thousands)
|
|
Beginning balance
|
|
|
Provision for loan losses
|
|
|
Loans charged off
|
|
|
Recoveries
|
|
|
Ending balance
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Residential real estate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
One- to four-family
|
|
$
|
774
|
|
|
$
|
(9
|
)
|
|
$
|
(31
|
)
|
|
$
|
5
|
|
|
$
|
739
|
|
Multi-family
|
|
|
243
|
|
|
|
1
|
|
|
|
--
|
|
|
|
--
|
|
|
|
244
|
|
Construction
|
|
|
7
|
|
|
|
7
|
|
|
|
--
|
|
|
|
--
|
|
|
|
14
|
|
Land
|
|
|
2
|
|
|
|
--
|
|
|
|
--
|
|
|
|
--
|
|
|
|
2
|
|
Farm
|
|
|
10
|
|
|
|
--
|
|
|
|
--
|
|
|
|
--
|
|
|
|
10
|
|
Nonresidential real estate
|
|
|
284
|
|
|
|
9
|
|
|
|
--
|
|
|
|
--
|
|
|
|
293
|
|
Commercial nonmortgage
|
|
|
7
|
|
|
|
(1
|
)
|
|
|
--
|
|
|
|
--
|
|
|
|
6
|
|
Consumer and other:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans on deposits
|
|
|
5
|
|
|
|
(1
|
)
|
|
|
--
|
|
|
|
--
|
|
|
|
4
|
|
Home equity
|
|
|
20
|
|
|
|
(2
|
)
|
|
|
--
|
|
|
|
--
|
|
|
|
18
|
|
Automobile
|
|
|
--
|
|
|
|
--
|
|
|
|
--
|
|
|
|
--
|
|
|
|
--
|
|
Unsecured
|
|
|
2
|
|
|
|
(1
|
)
|
|
|
--
|
|
|
|
--
|
|
|
|
1
|
|
Unallocated
|
|
|
200
|
|
|
|
--
|
|
|
|
--
|
|
|
|
--
|
|
|
|
200
|
|
Totals
|
|
$
|
1,554
|
|
|
$
|
3
|
|
|
$
|
(31
|
)
|
|
$
|
5
|
|
|
$
|
1,531
|
|
The
following table presents the activity in the allowance for loan losses by portfolio segment for the six months ended December
31, 2016:
(in thousands)
|
|
Beginning balance
|
|
|
Provision for loan losses
|
|
|
Loans charged off
|
|
|
Recoveries
|
|
|
Ending balance
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Residential real estate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
One- to four-family
|
|
$
|
862
|
|
|
$
|
34
|
|
|
$
|
(95
|
)
|
|
$
|
--
|
|
|
$
|
801
|
|
Multi-family
|
|
|
192
|
|
|
|
19
|
|
|
|
--
|
|
|
|
--
|
|
|
|
211
|
|
Construction
|
|
|
5
|
|
|
|
(1
|
)
|
|
|
--
|
|
|
|
--
|
|
|
|
4
|
|
Land
|
|
|
2
|
|
|
|
1
|
|
|
|
--
|
|
|
|
--
|
|
|
|
3
|
|
Farm
|
|
|
3
|
|
|
|
1
|
|
|
|
--
|
|
|
|
--
|
|
|
|
4
|
|
Nonresidential real estate
|
|
|
217
|
|
|
|
13
|
|
|
|
--
|
|
|
|
--
|
|
|
|
230
|
|
Commercial nonmortgage
|
|
|
18
|
|
|
|
(14
|
)
|
|
|
--
|
|
|
|
--
|
|
|
|
4
|
|
Consumer and other:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans on deposits
|
|
|
4
|
|
|
|
(1
|
)
|
|
|
--
|
|
|
|
--
|
|
|
|
3
|
|
Home equity
|
|
|
11
|
|
|
|
1
|
|
|
|
--
|
|
|
|
--
|
|
|
|
12
|
|
Automobile
|
|
|
--
|
|
|
|
--
|
|
|
|
--
|
|
|
|
--
|
|
|
|
--
|
|
Unsecured
|
|
|
1
|
|
|
|
3
|
|
|
|
(5
|
)
|
|
|
2
|
|
|
|
1
|
|
Unallocated
|
|
|
200
|
|
|
|
--
|
|
|
|
--
|
|
|
|
--
|
|
|
|
200
|
|
Totals
|
|
$
|
1,515
|
|
|
$
|
56
|
|
|
$
|
(100
|
)
|
|
$
|
2
|
|
|
$
|
1,473
|
|
Kentucky
First Federal Bancorp
NOTES TO CONDENSED CONSOLIDATED FINANCIAL
STATEMENTS (continued)
December
31, 2017
(unaudited)
4.
Loans receivable
(continued)
The
following table presents the activity in the allowance for loan losses by portfolio segment for the three months ended December
31, 2016:
(in thousands)
|
|
Beginning balance
|
|
|
Provision for loan losses
|
|
|
Loans charged off
|
|
|
Recoveries
|
|
|
Ending balance
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Residential real estate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
One- to four-family
|
|
$
|
803
|
|
|
$
|
50
|
|
|
$
|
(52
|
)
|
|
$
|
--
|
|
|
$
|
801
|
|
Multi-family
|
|
|
208
|
|
|
|
3
|
|
|
|
--
|
|
|
|
--
|
|
|
|
211
|
|
Construction
|
|
|
5
|
|
|
|
(1
|
)
|
|
|
--
|
|
|
|
--
|
|
|
|
4
|
|
Land
|
|
|
2
|
|
|
|
1
|
|
|
|
--
|
|
|
|
--
|
|
|
|
3
|
|
Farm
|
|
|
4
|
|
|
|
--
|
|
|
|
--
|
|
|
|
--
|
|
|
|
4
|
|
Nonresidential real estate
|
|
|
222
|
|
|
|
8
|
|
|
|
--
|
|
|
|
--
|
|
|
|
230
|
|
Commercial nonmortgage
|
|
|
15
|
|
|
|
(11
|
)
|
|
|
--
|
|
|
|
--
|
|
|
|
4
|
|
Consumer and other:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans on deposits
|
|
|
4
|
|
|
|
(1
|
)
|
|
|
--
|
|
|
|
--
|
|
|
|
3
|
|
Home equity
|
|
|
12
|
|
|
|
--
|
|
|
|
--
|
|
|
|
--
|
|
|
|
12
|
|
Automobile
|
|
|
--
|
|
|
|
--
|
|
|
|
--
|
|
|
|
--
|
|
|
|
--
|
|
Unsecured
|
|
|
1
|
|
|
|
3
|
|
|
|
(5
|
)
|
|
|
2
|
|
|
|
1
|
|
Unallocated
|
|
|
200
|
|
|
|
--
|
|
|
|
--
|
|
|
|
--
|
|
|
|
200
|
|
Totals
|
|
$
|
1,476
|
|
|
$
|
52
|
|
|
$
|
(57
|
)
|
|
$
|
2
|
|
|
$
|
1,473
|
|
The
following table presents the balance in the allowance for loan losses and the recorded investment in loans by portfolio class
and based on impairment method as of December 31, 2017. The recorded investment in loans excludes accrued interest receivable
and deferred loan costs, net due to immateriality. There were no impaired loans at December 31, 2017, that had a related specific
allowance.
December 31, 2017:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unpaid Principal Balance and Recorded Investment
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in thousands)
|
|
Loans individually evaluated
|
|
|
Loans acquired
with
deteriorated credit quality
|
|
|
Ending
loans
balance
|
|
|
Ending allowance attributed to loans
|
|
|
Unallocated allowance
|
|
|
Total allowance
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans individually evaluated for impairment:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Residential real estate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
One- to four-family
|
|
$
|
2,864
|
|
|
$
|
1,318
|
|
|
$
|
4,182
|
|
|
$
|
--
|
|
|
$
|
--
|
|
|
$
|
--
|
|
Farm
|
|
|
538
|
|
|
|
--
|
|
|
|
538
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonresidential real estate
|
|
|
125
|
|
|
|
--
|
|
|
|
125
|
|
|
|
--
|
|
|
|
--
|
|
|
|
--
|
|
|
|
|
3,527
|
|
|
|
1,318
|
|
|
|
4,845
|
|
|
|
--
|
|
|
|
--
|
|
|
|
--
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans collectively evaluated for impairment:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Residential real estate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
One- to four-family
|
|
|
|
|
|
|
|
|
|
$
|
195,362
|
|
|
$
|
739
|
|
|
$
|
--
|
|
|
$
|
739
|
|
Multi-family
|
|
|
|
|
|
|
|
|
|
|
15,247
|
|
|
|
244
|
|
|
|
--
|
|
|
|
244
|
|
Construction
|
|
|
|
|
|
|
|
|
|
|
5,683
|
|
|
|
14
|
|
|
|
--
|
|
|
|
14
|
|
Land
|
|
|
|
|
|
|
|
|
|
|
869
|
|
|
|
2
|
|
|
|
--
|
|
|
|
2
|
|
Farm
|
|
|
|
|
|
|
|
|
|
|
1,847
|
|
|
|
10
|
|
|
|
--
|
|
|
|
10
|
|
Nonresidential real estate
|
|
|
|
|
|
|
|
|
|
|
29,928
|
|
|
|
293
|
|
|
|
--
|
|
|
|
293
|
|
Commercial nonmortgage
|
|
|
|
|
|
|
|
|
|
|
2,466
|
|
|
|
6
|
|
|
|
--
|
|
|
|
6
|
|
Consumer:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans on deposits
|
|
|
|
|
|
|
|
|
|
|
1,634
|
|
|
|
4
|
|
|
|
--
|
|
|
|
4
|
|
Home equity
|
|
|
|
|
|
|
|
|
|
|
7,110
|
|
|
|
18
|
|
|
|
--
|
|
|
|
18
|
|
Automobile
|
|
|
|
|
|
|
|
|
|
|
29
|
|
|
|
--
|
|
|
|
--
|
|
|
|
--
|
|
Unsecured
|
|
|
|
|
|
|
|
|
|
|
534
|
|
|
|
1
|
|
|
|
--
|
|
|
|
1
|
|
Unallocated
|
|
|
|
|
|
|
|
|
|
|
--
|
|
|
|
--
|
|
|
|
200
|
|
|
|
200
|
|
|
|
|
|
|
|
|
|
|
|
|
260,709
|
|
|
|
1,331
|
|
|
|
200
|
|
|
|
1,531
|
|
|
|
|
|
|
|
|
|
|
|
$
|
265,554
|
|
|
$
|
1,331
|
|
|
$
|
200
|
|
|
$
|
1,531
|
|
Kentucky
First Federal Bancorp
NOTES TO CONDENSED
CONSOLIDATED FINANCIAL STATEMENTS (continued)
December
31, 2017
(unaudited)
4.
Loans receivable
(continued)
The
following tables present the balance in the allowance for loan losses and the recorded investment in loans by portfolio class
and based on impairment method as of June 30, 2017. There were no impaired loans at June 30, 2017, that had a related specific
allowance.
June 30, 2017:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unpaid Principal Balance and
Recorded Investment
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in thousands)
|
|
Loans individually evaluated
|
|
|
Loans acquired
with
deteriorated credit quality
|
|
|
Ending
loans
balance
|
|
|
Ending allowance attributed
to loans
|
|
|
Unallocated allowance
|
|
|
Total allowance
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans individually evaluated for impairment:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Residential real estate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
One- to four-family
|
|
$
|
3,706
|
|
|
$
|
1,676
|
|
|
$
|
5,382
|
|
|
$
|
--
|
|
|
$
|
--
|
|
|
$
|
--
|
|
Nonresidential real estate
|
|
|
131
|
|
|
|
--
|
|
|
|
131
|
|
|
|
--
|
|
|
|
--
|
|
|
|
--
|
|
|
|
|
3,837
|
|
|
|
1,676
|
|
|
|
5,513
|
|
|
|
--
|
|
|
|
--
|
|
|
|
--
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans collectively evaluated for impairment:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Residential real estate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
One- to four-family
|
|
|
|
|
|
|
|
|
|
$
|
192,554
|
|
|
$
|
773
|
|
|
$
|
--
|
|
|
$
|
773
|
|
Multi-family
|
|
|
|
|
|
|
|
|
|
|
15,678
|
|
|
|
243
|
|
|
|
--
|
|
|
|
243
|
|
Construction
|
|
|
|
|
|
|
|
|
|
|
2,398
|
|
|
|
6
|
|
|
|
--
|
|
|
|
6
|
|
Land
|
|
|
|
|
|
|
|
|
|
|
1,304
|
|
|
|
4
|
|
|
|
--
|
|
|
|
4
|
|
Farm
|
|
|
|
|
|
|
|
|
|
|
2,062
|
|
|
|
9
|
|
|
|
--
|
|
|
|
9
|
|
Nonresidential real estate
|
|
|
|
|
|
|
|
|
|
|
29,080
|
|
|
|
270
|
|
|
|
--
|
|
|
|
270
|
|
Commercial nonmortgage
|
|
|
|
|
|
|
|
|
|
|
2,540
|
|
|
|
6
|
|
|
|
--
|
|
|
|
6
|
|
Consumer:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans on deposits
|
|
|
|
|
|
|
|
|
|
|
1,607
|
|
|
|
4
|
|
|
|
--
|
|
|
|
4
|
|
Home equity
|
|
|
|
|
|
|
|
|
|
|
6,853
|
|
|
|
17
|
|
|
|
--
|
|
|
|
17
|
|
Automobile
|
|
|
|
|
|
|
|
|
|
|
42
|
|
|
|
--
|
|
|
|
--
|
|
|
|
--
|
|
Unsecured
|
|
|
|
|
|
|
|
|
|
|
400
|
|
|
|
1
|
|
|
|
--
|
|
|
|
1
|
|
Unallocated
|
|
|
|
|
|
|
|
|
|
|
--
|
|
|
|
--
|
|
|
|
200
|
|
|
|
200
|
|
|
|
|
|
|
|
|
|
|
|
|
254,518
|
|
|
|
1,333
|
|
|
|
200
|
|
|
|
1,533
|
|
|
|
|
|
|
|
|
|
|
|
$
|
260,031
|
|
|
$
|
1,333
|
|
|
$
|
200
|
|
|
$
|
1,533
|
|
Kentucky
First Federal Bancorp
NOTES TO CONDENSED CONSOLIDATED FINANCIAL
STATEMENTS (continued)
December
31, 2017
(unaudited)
4.
Loans receivable
(continued)
The
following table presents interest income on loans individually evaluated for impairment by class of loans for the six months ended
December 31:
(in thousands)
|
|
Average Recorded Investment
|
|
|
Interest Income Recognized
|
|
|
Cash Basis Income Recognized
|
|
|
Average Recorded Investment
|
|
|
Interest
Income
Recognized
|
|
|
Cash Basis Income Recognized
|
|
|
|
2017
|
|
|
2016
|
|
With no related allowance recorded:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
One- to four-family
|
|
$
|
3,285
|
|
|
$
|
3
|
|
|
$
|
3
|
|
|
$
|
3,774
|
|
|
$
|
3
|
|
|
$
|
3
|
|
Farm
|
|
|
269
|
|
|
|
--
|
|
|
|
--
|
|
|
|
--
|
|
|
|
--
|
|
|
|
--
|
|
Nonresidential real estate
|
|
|
128
|
|
|
|
--
|
|
|
|
--
|
|
|
|
--
|
|
|
|
--
|
|
|
|
--
|
|
Purchased credit-impaired loans
|
|
|
1,497
|
|
|
|
39
|
|
|
|
39
|
|
|
|
2,073
|
|
|
|
40
|
|
|
|
40
|
|
|
|
|
5,179
|
|
|
|
42
|
|
|
|
42
|
|
|
|
5,847
|
|
|
|
43
|
|
|
|
43
|
|
With an allowance recorded:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
One- to four-family
|
|
|
--
|
|
|
|
--
|
|
|
|
--
|
|
|
|
--
|
|
|
|
--
|
|
|
|
--
|
|
|
|
$
|
5,179
|
|
|
$
|
42
|
|
|
$
|
42
|
|
|
$
|
5,847
|
|
|
$
|
43
|
|
|
$
|
43
|
|
The
following table presents interest income on loans individually evaluated for impairment by class of loans for the three months
ended December 31:
(in thousands)
|
|
Average Recorded Investment
|
|
|
Interest Income Recognized
|
|
|
Cash Basis Income Recognized
|
|
|
Average Recorded Investment
|
|
|
Interest
Income
Recognized
|
|
|
Cash Basis Income Recognized
|
|
|
|
2017
|
|
|
2016
|
|
With no related allowance recorded:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
One- to four-family
|
|
$
|
3,030
|
|
|
$
|
1
|
|
|
$
|
1
|
|
|
$
|
3,960
|
|
|
$
|
1
|
|
|
$
|
1
|
|
Farm
|
|
|
269
|
|
|
|
--
|
|
|
|
--
|
|
|
|
--
|
|
|
|
--
|
|
|
|
--
|
|
Nonresidential real estate
|
|
|
128
|
|
|
|
--
|
|
|
|
--
|
|
|
|
--
|
|
|
|
--
|
|
|
|
--
|
|
Purchased credit-impaired loans
|
|
|
1,410
|
|
|
|
9
|
|
|
|
9
|
|
|
|
1,955
|
|
|
|
26
|
|
|
|
26
|
|
|
|
|
4,837
|
|
|
|
10
|
|
|
|
10
|
|
|
|
5,915
|
|
|
|
27
|
|
|
|
27
|
|
With an allowance recorded:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
One- to four-family
|
|
|
--
|
|
|
|
--
|
|
|
|
--
|
|
|
|
--
|
|
|
|
--
|
|
|
|
--
|
|
|
|
$
|
4,837
|
|
|
$
|
10
|
|
|
$
|
10
|
|
|
$
|
5,915
|
|
|
$
|
27
|
|
|
$
|
27
|
|
The
following tables present the recorded investment in nonaccrual and loans past due over 90 days still on accrual by class of loans
as of December 31, 2017 and June 30, 2017:
|
|
December 31, 2017
|
|
|
June 30, 2017
|
|
(in thousands)
|
|
Nonaccrual
|
|
|
Loans Past Due Over 90 Days
Still Accruing
|
|
|
Nonaccrual
|
|
|
Loans Past Due Over 90 Days
Still Accruing
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
One- to four-family residential real estate
|
|
$
|
3,845
|
|
|
$
|
1,719
|
|
|
$
|
4,870
|
|
|
$
|
1,770
|
|
Farm
|
|
|
538
|
|
|
|
--
|
|
|
|
--
|
|
|
|
--
|
|
Nonresidential real estate and land
|
|
|
143
|
|
|
|
273
|
|
|
|
151
|
|
|
|
--
|
|
Home equity
|
|
|
4
|
|
|
|
--
|
|
|
|
--
|
|
|
|
--
|
|
Consumer
|
|
|
3
|
|
|
|
--
|
|
|
|
8
|
|
|
|
11
|
|
|
|
$
|
4,533
|
|
|
$
|
1,992
|
|
|
$
|
5,029
|
|
|
$
|
1,781
|
|
Troubled
Debt Restructurings:
A
Troubled Debt Restructuring (“TDR”) is the situation where the Bank grants a concession to the borrower that the Banks
would not otherwise have considered due to the borrower’s financial difficulties. All TDRs are considered “impaired.”
At December 31, 2017 and June 30, 2017, the Company had $1.5 million loans classified as TDRs. Of the TDRs at December 31, 2017,
approximately 17.4% were related to the borrower’s completion of Chapter 7 bankruptcy proceedings with no reaffirmation
of the debt to the Banks.
Kentucky
First Federal Bancorp
NOTES TO CONDENSED CONSOLIDATED FINANCIAL
STATEMENTS (continued)
December
31, 2017
(unaudited)
4.
Loans receivable
(continued)
The
following table summarizes TDR loan modifications that occurred during the six months ended December 31, 2017 and 2016, and their
performance, by modification type:
(in thousands)
|
|
Troubled Debt Restructurings
Performing to Modified Terms
|
|
|
Troubled Debt Restructurings
Not Performing to Modified Terms
|
|
|
Total Troubled Debt Restructurings
|
|
|
|
|
|
|
|
|
|
|
|
Six months ended December 31, 2017
|
|
|
|
|
|
|
|
|
|
Residential real estate:
|
|
|
|
|
|
|
|
|
|
Terms extended and additional funds advanced
|
|
$
|
325
|
|
|
$
|
--
|
|
|
$
|
325
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six months ended December 31, 2016
|
|
|
|
|
|
|
|
|
|
|
|
|
Residential real estate:
|
|
|
|
|
|
|
|
|
|
|
|
|
Terms extended
|
|
$
|
98
|
|
|
$
|
--
|
|
|
$
|
98
|
|
The following table summarizes TDR loan
modifications that occurred during the three months ended December 31, 2017 and 2016, and their performance, by modification type:
(in thousands)
|
|
Troubled Debt Restructurings Performing to Modified Terms
|
|
|
Troubled Debt Restructurings Not Performing to Modified Terms
|
|
|
Total
Troubled Debt Restructurings
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended December 31, 2017
|
|
|
|
|
|
|
|
|
|
Residential real estate:
|
|
|
|
|
|
|
|
|
|
Terms extended and additional funds advanced
|
|
$
|
11
|
|
|
$
|
--
|
|
|
$
|
11
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended December 31, 2016
|
|
|
|
|
|
|
|
|
|
|
|
|
Residential real estate:
|
|
|
|
|
|
|
|
|
|
|
|
|
Terms extended
|
|
$
|
98
|
|
|
$
|
--
|
|
|
$
|
98
|
|
The Company had two TDRs during the six months
ended December 31, 2017, while there was one TDR during the six months ended December 31, 2016. The Company had no allocated specific
reserves to customers whose loan terms had been modified in troubled debt restructurings as of December 31, 2017 or at June 30,
2017. The Company had no commitments to lend on loans classified as TDRs at December 31, 2017 or June 30, 2017.
Four
TDRs with a carrying value of $136,000 defaulted during the six-month period ended December 31, 2017. The properties were taken
into REO and sold. There were no TDRs that defaulted during the six-month period ended December 31, 2016.
Kentucky
First Federal Bancorp
NOTES TO CONDENSED CONSOLIDATED FINANCIAL
STATEMENTS (continued)
December
31, 2017
(unaudited)
4.
Loans receivable
(continued)
The
following table presents the aging of the principal balance outstanding in past due loans as of December 31, 2017, by class of
loans:
(in thousands)
|
|
30-89 Days Past Due
|
|
|
90 Days or Greater
Past
Due
|
|
|
Total
Past Due
|
|
|
Loans Not Past Due
|
|
|
Total
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Residential real estate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
One-to four-family
|
|
$
|
4,410
|
|
|
$
|
3,274
|
|
|
$
|
7,684
|
|
|
$
|
191,860
|
|
|
$
|
199,544
|
|
Multi-family
|
|
|
--
|
|
|
|
--
|
|
|
|
--
|
|
|
|
15,247
|
|
|
|
15,247
|
|
Construction
|
|
|
--
|
|
|
|
--
|
|
|
|
--
|
|
|
|
5,683
|
|
|
|
5,683
|
|
Land
|
|
|
--
|
|
|
|
--
|
|
|
|
--
|
|
|
|
869
|
|
|
|
869
|
|
Farm
|
|
|
--
|
|
|
|
538
|
|
|
|
538
|
|
|
|
1,847
|
|
|
|
2,385
|
|
Nonresidential real estate
|
|
|
304
|
|
|
|
273
|
|
|
|
577
|
|
|
|
29,476
|
|
|
|
30,053
|
|
Commercial non-mortgage
|
|
|
--
|
|
|
|
--
|
|
|
|
--
|
|
|
|
2,466
|
|
|
|
2,466
|
|
Consumer and other:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans on deposits
|
|
|
--
|
|
|
|
--
|
|
|
|
--
|
|
|
|
1,634
|
|
|
|
1,634
|
|
Home equity
|
|
|
34
|
|
|
|
--
|
|
|
|
34
|
|
|
|
7,076
|
|
|
|
7,110
|
|
Automobile
|
|
|
--
|
|
|
|
--
|
|
|
|
--
|
|
|
|
29
|
|
|
|
29
|
|
Unsecured
|
|
|
6
|
|
|
|
--
|
|
|
|
6
|
|
|
|
528
|
|
|
|
534
|
|
Total
|
|
$
|
4,754
|
|
|
$
|
4,085
|
|
|
$
|
8,839
|
|
|
$
|
256,715
|
|
|
$
|
265,554
|
|
The
following tables present the aging of the principal balance outstanding in past due loans as of June 30, 2017, by class of loans:
(in thousands)
|
|
30-89 Days Past Due
|
|
|
90 Days or Greater
Past
Due
|
|
|
Total
Past Due
|
|
|
Loans Not Past Due
|
|
|
Total
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Residential real estate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
One-to four-family
|
|
$
|
5,193
|
|
|
$
|
4,496
|
|
|
$
|
9,689
|
|
|
$
|
188,247
|
|
|
$
|
197,936
|
|
Multi-family
|
|
|
--
|
|
|
|
--
|
|
|
|
--
|
|
|
|
15,678
|
|
|
|
15,678
|
|
Construction
|
|
|
--
|
|
|
|
--
|
|
|
|
--
|
|
|
|
2,398
|
|
|
|
2,398
|
|
Land
|
|
|
--
|
|
|
|
--
|
|
|
|
--
|
|
|
|
1,304
|
|
|
|
1,304
|
|
Farm
|
|
|
539
|
|
|
|
--
|
|
|
|
539
|
|
|
|
1,523
|
|
|
|
2,062
|
|
Nonresidential real estate
|
|
|
635
|
|
|
|
133
|
|
|
|
768
|
|
|
|
28,443
|
|
|
|
29,211
|
|
Commercial nonmortgage
|
|
|
--
|
|
|
|
--
|
|
|
|
--
|
|
|
|
2,540
|
|
|
|
2,540
|
|
Consumer:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans on deposits
|
|
|
--
|
|
|
|
--
|
|
|
|
--
|
|
|
|
1,607
|
|
|
|
1,607
|
|
Home equity
|
|
|
17
|
|
|
|
11
|
|
|
|
28
|
|
|
|
6,825
|
|
|
|
6,853
|
|
Automobile
|
|
|
--
|
|
|
|
--
|
|
|
|
--
|
|
|
|
42
|
|
|
|
42
|
|
Unsecured
|
|
|
13
|
|
|
|
--
|
|
|
|
13
|
|
|
|
387
|
|
|
|
400
|
|
Total
|
|
$
|
6,397
|
|
|
$
|
4,640
|
|
|
$
|
11,037
|
|
|
$
|
248,994
|
|
|
$
|
260,031
|
|
Kentucky
First Federal Bancorp
NOTES TO CONDENSED CONSOLIDATED FINANCIAL
STATEMENTS (continued)
December
31, 2017
(unaudited)
4.
Loans receivable
(continued)
Credit
Quality Indicators:
The
Company categorizes loans into risk categories based on relevant information about the ability of borrowers to service their debt
such as: current financial information, historical payment experience, credit documentation, public information, and current economic
trends, among other factors. The Company analyzes loans individually by classifying the loans as to credit risk. This analysis
is performed on an annual basis. The Company uses the following definitions for risk ratings:
Special
Mention.
Loans classified as special mention have a potential weakness that deserves management’s close attention. If
left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or of the institution’s
credit position at some future date.
Substandard.
Loans classified as substandard are inadequately protected by the current net worth and paying capacity of the obligor or
of the collateral pledged, if any. Loans so classified have a well-defined weakness or weaknesses that jeopardize the liquidation
of the debt. They are characterized by the distinct possibility that the institution will sustain some loss if the deficiencies
are not corrected.
Doubtful.
Loans classified as doubtful have all the weaknesses inherent in those classified as substandard, with the added characteristic
that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions and values, highly
questionable and improbable.
Loans
not meeting the criteria above that are analyzed individually as part of the above-described process are considered to be pass
rated loans. Loans listed that are not rated are included in groups of homogeneous loans and are evaluated for credit quality
based on performing status. See the aging of past due loan table above. As of December 31, 2017, and based on the most recent
analysis performed, the risk category of loans by class of loans is as follows:
(in thousands)
|
|
Pass
|
|
|
Special Mention
|
|
|
Substandard
|
|
|
Doubtful
|
|
|
Not rated
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Residential real estate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
One- to four-family
|
|
$
|
--
|
|
|
$
|
1,383
|
|
|
$
|
9,463
|
|
|
$
|
--
|
|
|
$
|
188,698
|
|
Multi-family
|
|
|
14,595
|
|
|
|
--
|
|
|
|
652
|
|
|
|
--
|
|
|
|
--
|
|
Construction
|
|
|
5,683
|
|
|
|
--
|
|
|
|
--
|
|
|
|
--
|
|
|
|
--
|
|
Land
|
|
|
869
|
|
|
|
--
|
|
|
|
--
|
|
|
|
--
|
|
|
|
--
|
|
Farm
|
|
|
1,847
|
|
|
|
--
|
|
|
|
538
|
|
|
|
--
|
|
|
|
--
|
|
Nonresidential real estate
|
|
|
29,333
|
|
|
|
--
|
|
|
|
720
|
|
|
|
--
|
|
|
|
--
|
|
Commercial nonmortgage
|
|
|
2,463
|
|
|
|
--
|
|
|
|
3
|
|
|
|
--
|
|
|
|
--
|
|
Consumer:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans on deposits
|
|
|
1,634
|
|
|
|
--
|
|
|
|
--
|
|
|
|
--
|
|
|
|
--
|
|
Home equity
|
|
|
7,016
|
|
|
|
58
|
|
|
|
36
|
|
|
|
--
|
|
|
|
--
|
|
Automobile
|
|
|
29
|
|
|
|
--
|
|
|
|
--
|
|
|
|
--
|
|
|
|
--
|
|
Unsecured
|
|
|
526
|
|
|
|
--
|
|
|
|
8
|
|
|
|
--
|
|
|
|
--
|
|
|
|
$
|
63,995
|
|
|
$
|
1,441
|
|
|
$
|
11,420
|
|
|
$
|
--
|
|
|
$
|
188,698
|
|
Kentucky
First Federal Bancorp
NOTES TO CONDENSED CONSOLIDATED FINANCIAL
STATEMENTS (continued)
December
31, 2017
(unaudited)
4.
Loans receivable
(continued)
At
June 30, 2017, the risk category of loans by class of loans was as follows:
(in thousands)
|
|
Pass
|
|
|
Special Mention
|
|
|
Substandard
|
|
|
Doubtful
|
|
|
Not rated
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Residential real estate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
One- to four-family
|
|
$
|
--
|
|
|
$
|
6,110
|
|
|
$
|
9,883
|
|
|
$
|
--
|
|
|
$
|
181,943
|
|
Multi-family
|
|
|
14,541
|
|
|
|
--
|
|
|
|
1,137
|
|
|
|
--
|
|
|
|
--
|
|
Construction
|
|
|
2,398
|
|
|
|
--
|
|
|
|
--
|
|
|
|
--
|
|
|
|
--
|
|
Land
|
|
|
1,304
|
|
|
|
--
|
|
|
|
--
|
|
|
|
--
|
|
|
|
--
|
|
Farm
|
|
|
1,523
|
|
|
|
--
|
|
|
|
539
|
|
|
|
--
|
|
|
|
--
|
|
Nonresidential real estate
|
|
|
29,061
|
|
|
|
--
|
|
|
|
150
|
|
|
|
--
|
|
|
|
--
|
|
Commercial nonmortgage
|
|
|
2,513
|
|
|
|
27
|
|
|
|
--
|
|
|
|
--
|
|
|
|
--
|
|
Consumer:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans on deposits
|
|
|
1,607
|
|
|
|
--
|
|
|
|
--
|
|
|
|
--
|
|
|
|
--
|
|
Home equity
|
|
|
6,744
|
|
|
|
93
|
|
|
|
16
|
|
|
|
--
|
|
|
|
--
|
|
Automobile
|
|
|
42
|
|
|
|
--
|
|
|
|
--
|
|
|
|
--
|
|
|
|
--
|
|
Unsecured
|
|
|
396
|
|
|
|
--
|
|
|
|
4
|
|
|
|
--
|
|
|
|
--
|
|
|
|
$
|
60,129
|
|
|
$
|
6,230
|
|
|
$
|
11,729
|
|
|
$
|
--
|
|
|
$
|
181,943
|
|
Purchased
Credit Impaired Loans:
The
Company purchased loans during fiscal year 2013 for which there was, at acquisition, evidence of deterioration of credit quality
since origination and it was probable, at acquisition, that all contractually required payments would not be collected. The carrying
amount of those loans, net of a purchase credit discount of $388,000 at December 31, 2017 and June 30, 2017, respectively, is
as follows:
(in thousands)
|
|
December 31,
2017
|
|
|
June 30,
2017
|
|
|
|
|
|
|
|
|
One- to four-family residential real estate
|
|
$
|
1,318
|
|
|
$
|
1,676
|
|
Nonresidential real estate
|
|
|
--
|
|
|
|
--
|
|
Outstanding balance
|
|
$
|
1,318
|
|
|
$
|
1,676
|
|
Kentucky
First Federal Bancorp
NOTES TO CONDENSED CONSOLIDATED FINANCIAL
STATEMENTS (continued)
December
31, 2017
(unaudited)
4.
Loans receivable
(continued)
Accretable
yield, or income expected to be collected on loans purchased during fiscal year 2013, is as follows:
|
|
Six months ended
December 31,
|
|
|
Three months ended
December 31,
|
|
|
|
2017
|
|
|
2016
|
|
|
2017
|
|
|
2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at beginning of period
|
|
$
|
720
|
|
|
$
|
981
|
|
|
$
|
699
|
|
|
$
|
935
|
|
Accretion of income
|
|
|
(43
|
)
|
|
|
(92
|
)
|
|
|
(21
|
)
|
|
|
(46
|
)
|
Reclassifications from nonaccretable difference
|
|
|
--
|
|
|
|
60
|
|
|
|
--
|
|
|
|
60
|
|
Disposals, net of recoveries
|
|
|
1
|
|
|
|
(49
|
)
|
|
|
--
|
|
|
|
(49
|
)
|
Balance at end of period
|
|
$
|
678
|
|
|
$
|
900
|
|
|
$
|
678
|
|
|
$
|
900
|
|
For those purchased loans disclosed above,
the Company made no increase in allowance for loan losses for the year ended June 30, 2017, nor for the six-month period ended
December 31, 2017. Neither were any allowance for loan losses reversed during those periods.
5.
Disclosures About Fair Value of Assets and Liabilities
ASC
topic 820 defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly
transaction between market participants at the measurement date. ASC topic 820 also establishes a fair value hierarchy which requires
an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The
standard describes three levels of inputs that may be used to measure fair value:
Level
1
- Quoted prices in active markets for identical assets or liabilities that the entity has the ability to access at the
measurement date.
Level
2
- Observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities; quoted prices
in active markets that are not active; or other inputs that are observable or can be corroborated by observable market data for
substantially the full term of the assets or liabilities.
Level
3
- Unobservable inputs that reflect a reporting entity’s own assumptions and are supported by little or no market activity
and that are significant to the fair value of the assets or liabilities.
Following
is a description of the valuation methodologies used for instruments measured at fair value, as well as the general classification
of such instruments pursuant to the valuation hierarchy.
Securities – Recurring Measurement
Where quoted market prices are available
in an active market, securities are classified within Level 1 of the valuation hierarchy. If quoted market prices are not available,
then fair values are estimated by using pricing models, quoted prices of securities with similar characteristics. Level 2 securities
include agency mortgage-backed securities.
Kentucky
First Federal Bancorp
NOTES TO CONDENSED
CONSOLIDATED FINANCIAL STATEMENTS (continued)
December
31, 2017
(unaudited)
5.
Disclosures About Fair Value of Assets and Liabilities
(continued)
Impaired Loans – Nonrecurring Measurement
At the time a loan is considered impaired,
it is evaluated for loss based on the fair value of collateral securing the loan if the loan is collateral dependent. If a loss
is identified, a charge-off is taken or a specific allocation will be established as part of the allowance for loan losses such
that the loan’s net carrying value is at its estimated fair value. Impaired loans carried at fair value generally receive
specific allocations of the allowance for loan losses. For collateral-dependent loans, fair value is commonly based on recent real
estate appraisals. These appraisals may utilize a single valuation approach or a combination of approaches including comparable
sales and the income approach. Adjustments are routinely made in the appraisal process by the independent appraisers to adjust
for differences between the comparable sales and income data available. Such adjustments are usually significant and typically
result in a Level 3 classification of the inputs for determining fair value. Non-real estate collateral may be valued using an
appraisal, net book value per the borrower’s financial statements, or aging reports, adjusted or discounted based on management’s
historical knowledge, changes in market conditions from the time of the valuation, and management’s expertise and knowledge
of the client and client’s business, resulting in a Level 3 fair value classification. Impaired loans are evaluated on a
quarterly basis for additional impairment and adjusted accordingly.
Other Real Estate – Nonrecurring
Measurement
Assets
acquired through or instead of loan foreclosure are initially recorded at fair value less costs to sell when acquired, establishing
a new cost basis. These assets are subsequently accounted for at lower of cost or fair value less estimated costs to sell. Fair
value is commonly based on recent real estate appraisals. These appraisals may utilize a single valuation approach or a combination
of approaches including comparable sales and the income approach. Adjustments are routinely made in the appraisal process by the
independent appraisers to adjust for differences between the comparable sales and income data available. Such adjustments are
usually significant and typically result in a Level 3 classification of the inputs for determining fair value.
Financial
assets measured at fair value on a recurring basis are summarized below:
|
|
Fair Value Measurements Using
|
|
(in thousands)
|
|
Fair Value
|
|
|
Quoted
Prices in Active
Markets for Identical
Assets
(Level 1)
|
|
|
Significant Other Observable
Inputs (Level 2)
|
|
|
Significant Unobservable Inputs
(Level 3)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, 2017
|
|
|
|
|
|
|
|
|
|
|
|
|
Agency mortgage-backed: residential
|
|
$
|
66
|
|
|
$
|
--
|
|
|
$
|
66
|
|
|
$
|
--
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
June 30, 2017
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Agency mortgage-backed: residential
|
|
$
|
71
|
|
|
$
|
--
|
|
|
$
|
71
|
|
|
$
|
--
|
|
Kentucky
First Federal Bancorp
NOTES TO CONDENSED CONSOLIDATED FINANCIAL
STATEMENTS (continued)
December
31, 2017
(unaudited)
5.
Disclosures About Fair Value of Assets and Liabilities
(continued)
Assets
measured at fair value on a non-recurring basis are summarized below:
|
|
Fair Value Measurements Using
|
|
(in thousands)
|
|
Fair Value
|
|
|
Quoted Prices in Active Markets for Identical Assets
(Level 1)
|
|
|
Significant Other Observable Inputs
(Level 2)
|
|
|
Significant Unobservable Inputs
(Level 3)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
June 30, 2017
|
|
|
|
|
|
|
|
|
|
|
|
|
Other real estate owned, net
|
|
|
|
|
|
|
|
|
|
|
|
|
One- to four-family
|
|
$
|
103
|
|
|
|
--
|
|
|
|
--
|
|
|
$
|
103
|
|
Land
|
|
|
79
|
|
|
|
--
|
|
|
|
--
|
|
|
|
79
|
|
There were no impaired loans, which were remeasured
using the fair value of the collateral for collateral-dependent loans, at December 31, 2017, and June 30, 2017. There was no specific
provision made for the six- or three-month periods ended December 31, 2017 or 2016.
Other
real estate owned measured at fair value less costs to sell, had carrying amounts of $182,000 at June 30, 2017. Other real estate
owned was written down by $0 and $25,000 during the six months ended December 31, 2017 and 2016, respectively.
Kentucky
First Federal Bancorp
NOTES TO CONDENSED CONSOLIDATED FINANCIAL
STATEMENTS (continued)
December
31, 2017
(unaudited)
5.
Disclosures About Fair Value of Assets and Liabilities
(continued)
The
following table presents quantitative information about Level 3 fair value measurements for financial instruments measured at
fair value on a non-recurring basis at December 31, 2017 and June 30, 2017:
December 31, 2017
|
|
Fair Value
(in thousands)
|
|
|
Valuation
Technique(s)
|
|
Unobservable
Input(s)
|
|
Range
(Weighted
Average)
|
|
|
|
|
|
|
|
|
|
|
Loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
One- to four-family
|
|
$
|
70
|
|
|
Sales comparison approach
|
|
Adjustments for differences between comparable sales
|
|
-23.5% to 13.8% (-1.5%)
|
June 30, 2017
|
|
Fair Value (in thousands)
|
|
|
Valuation
Technique(s)
|
|
Unobservable
Input(s)
|
|
Range
(Weighted
Average)
|
|
|
|
|
|
|
|
|
|
|
Foreclosed and repossessed assets:
|
|
|
|
|
|
|
|
|
|
|
One- to four-family
|
|
$
|
103
|
|
|
Sales comparison approach
|
|
Adjustments for differences between comparable sales
|
|
-3.6% to 45.8% (9.5%)
|
Land
|
|
$
|
79
|
|
|
Sales comparison approach
|
|
Adjustments for differences between comparable sales
|
|
3.5% to 6.6% (5.0%)
|
The
following is a disclosure of the fair value of financial instruments, both assets and liabilities, whether or not recognized in
the consolidated balance sheet, for which it is practicable to estimate that value. For financial instruments where quoted market
prices are not available, fair values are based on estimates using present value and other valuation methods.
The
methods used are greatly affected by the assumptions applied, including the discount rate and estimates of future cash flows.
Therefore, the fair values presented may not represent amounts that could be realized in an exchange for certain financial instruments.
Kentucky
First Federal Bancorp
NOTES TO CONDENSED CONSOLIDATED FINANCIAL
STATEMENTS (continued)
December
31, 2017
(unaudited)
5.
Disclosures About Fair Value of Assets and Liabilities
(continued)
The
following methods were used to estimate the fair value of all other financial instruments at December 31, 2017 and June 30, 2017:
Cash
and cash equivalents, interest-bearing deposits and time deposits in other financial institutions
: The carrying amounts presented
in the consolidated statements of financial condition for cash and cash equivalents are deemed to approximate fair value.
Held-to-maturity
securities
: For held-to-maturity securities, fair value is estimated by using pricing models, quoted price of securities with
similar characteristics, which is level 2 pricing for the other securities.
Loans
:
The loan portfolio has been segregated into categories with similar characteristics, such as one- to four-family residential,
multi-family residential and nonresidential real estate. These loan categories were further delineated into fixed-rate and adjustable-rate
loans. The fair values for the resultant loan categories were computed via discounted cash flow analysis, using current interest
rates offered for loans with similar terms to borrowers of similar credit quality. For loans on deposit accounts and consumer
and other loans, fair values were deemed to equal the historic carrying values. The fair values of the loans does not necessarily
represent an exit price.
Loans
receivable represents the Company’s most significant financial asset, which is in Level 3 for fair value measurements. A
third party provides financial modeling for the Company and results are based on assumptions and factors determined by management.
Federal
Home Loan Bank stock
: It is not practicable to determine the fair value of FHLB stock due to restrictions placed on its transferability.
Accrued
interest receivable
: The carrying amount is the estimated fair value.
Deposits
:
The fair value of NOW accounts, passbook accounts, and money market deposits are deemed to approximate the amount payable on demand.
Fair values for fixed-rate certificates of deposit have been estimated using a discounted cash flow calculation using the interest
rates currently offered for deposits of similar remaining maturities.
Federal
Home Loan Bank advances
: The fair value of these advances is estimated using the rates currently offered for similar advances
of similar remaining maturities or, when available, quoted market prices.
Advances
by borrowers for taxes and insurance and accrued interest payable
: The carrying amount presented in the consolidated statement
of financial condition is deemed to approximate fair value.
Commitments
to extend credit
: For fixed-rate and adjustable-rate loan commitments, the fair value estimate considers the difference between
current levels of interest rates and committed rates. The fair value of outstanding loan commitments at December 31, 2017 and
June 30, 2017, was not material.
Kentucky
First Federal Bancorp
NOTES TO CONDENSED CONSOLIDATED FINANCIAL
STATEMENTS (continued)
December
31, 2017
(unaudited)
5.
Disclosures About Fair Value of Assets and Liabilities
(continued)
Based
on the foregoing methods and assumptions, the carrying value and fair value of the Company’s financial instruments at December
31, 2017 and June 30, 2017 are as follows:
|
|
|
|
|
Fair Value Measurements at
|
|
|
|
Carrying
|
|
|
December 31, 2017 Using
|
|
(in thousands)
|
|
Value
|
|
|
Level
1
|
|
|
Level 2
|
|
|
Level
3
|
|
|
Total
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
$
|
9,360
|
|
|
$
|
9,360
|
|
|
|
|
|
|
|
|
|
|
$
|
9,360
|
|
Term deposits in other financial institutions
|
|
|
6,681
|
|
|
|
6,681
|
|
|
|
|
|
|
|
|
|
|
|
6,681
|
|
Available-for-sale securities
|
|
|
66
|
|
|
|
|
|
|
$
|
66
|
|
|
|
|
|
|
|
66
|
|
Held-to-maturity securities
|
|
|
1,249
|
|
|
|
|
|
|
|
1,271
|
|
|
|
|
|
|
|
1,271
|
|
Loans receivable - net
|
|
|
260,806
|
|
|
|
|
|
|
|
|
|
|
|
269,381
|
|
|
|
269,381
|
|
Federal Home Loan Bank stock
|
|
|
6,482
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
n/a
|
|
Accrued interest receivable
|
|
|
720
|
|
|
|
|
|
|
|
720
|
|
|
|
|
|
|
|
720
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits
|
|
$
|
191,303
|
|
|
$
|
76,092
|
|
|
$
|
114,919
|
|
|
|
|
|
|
|
191,011
|
|
Federal Home Loan Bank advances
|
|
|
48,627
|
|
|
|
|
|
|
|
48,699
|
|
|
|
|
|
|
|
48,699
|
|
Advances by borrowers for taxes and insurance
|
|
|
236
|
|
|
|
236
|
|
|
|
|
|
|
|
|
|
|
|
236
|
|
Accrued interest payable
|
|
|
23
|
|
|
|
|
|
|
|
23
|
|
|
|
|
|
|
|
23
|
|
|
|
|
|
|
Fair Value Measurements at
|
|
|
|
Carrying
|
|
|
June 30, 2017 Using
|
|
(in thousands)
|
|
Value
|
|
|
Level
1
|
|
|
Level 2
|
|
|
Level 3
|
|
|
Total
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
$
|
12,804
|
|
|
$
|
12,804
|
|
|
|
|
|
|
|
|
|
|
$
|
12,804
|
|
Term deposits in other financial institutions
|
|
|
4,201
|
|
|
|
4,201
|
|
|
|
|
|
|
|
|
|
|
|
4,201
|
|
Available-for-sale securities
|
|
|
71
|
|
|
|
|
|
|
$
|
71
|
|
|
|
|
|
|
|
71
|
|
Held-to-maturity securities
|
|
|
1,487
|
|
|
|
|
|
|
|
1,523
|
|
|
|
|
|
|
|
1,523
|
|
Loans receivable – net
|
|
|
258,244
|
|
|
|
|
|
|
|
|
|
|
$
|
269,606
|
|
|
|
269,606
|
|
Federal Home Loan Bank stock
|
|
|
6,482
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
n/a
|
|
Accrued interest receivable
|
|
|
679
|
|
|
|
|
|
|
|
679
|
|
|
|
|
|
|
|
679
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits
|
|
$
|
182,845
|
|
|
$
|
78,561
|
|
|
$
|
103,786
|
|
|
|
|
|
|
$
|
182,347
|
|
Federal Home Loan Bank advances
|
|
|
55,780
|
|
|
|
|
|
|
|
55,881
|
|
|
|
|
|
|
|
55,881
|
|
Advances by borrowers for taxes and insurance
|
|
|
818
|
|
|
|
|
|
|
|
818
|
|
|
|
|
|
|
|
818
|
|
Accrued interest payable
|
|
|
21
|
|
|
|
|
|
|
|
21
|
|
|
|
|
|
|
|
21
|
|
Kentucky
First Federal Bancorp
NOTES TO CONDENSED
CONSOLIDATED FINANCIAL STATEMENTS (continued)
December
31, 2017
(unaudited)
6.
Accumulated Other Comprehensive Income (Loss)
The
Company’s accumulated other comprehensive income is comprised solely of unrealized gains and losses on available-for-sale
securities. The following is a summary of the accumulated other comprehensive income balances, net of tax:
|
|
Six months
ended
December 31,
2017
|
|
|
|
|
|
Beginning balance
|
|
$
|
1
|
|
Current year change
|
|
|
--
|
|
Ending balance
|
|
$
|
1
|
|
Accumulated
other comprehensive income (loss) components and related tax effects for the periods indicated were as follows:
|
|
Six months ended
December 31,
|
|
(in thousands)
|
|
2017
|
|
|
2016
|
|
|
|
|
|
|
|
|
Unrealized holding gains (losses) on available-for-sale securities
|
|
$
|
1
|
|
|
$
|
55
|
|
Tax effect
|
|
|
--
|
|
|
|
19
|
|
Net-of-tax amount
|
|
$
|
1
|
|
|
$
|
36
|
|
|
|
Three months ended
December 31,
|
|
(in thousands)
|
|
2017
|
|
|
2016
|
|
|
|
|
|
|
|
|
Unrealized holding gains (losses) on available-for-sale securities
|
|
$
|
1
|
|
|
$
|
62
|
|
Tax effect
|
|
|
--
|
|
|
|
21
|
|
Net-of-tax amount
|
|
$
|
1
|
|
|
$
|
41
|
|
Kentucky
First Federal Bancorp