First Federal Posts Quarterly Profit, Signaling Local Banking Stability

Kentucky First Federal Bancorp, the holding company for First Federal Savings and Loan Association of Hazard, released its third quarter 2025 results on November 6, 2025 showing net income of $344,000 for the quarter ended September 30, 2025. That profit marks a clear reversal from a net loss in the same quarter of 2024 and represents a short term improvement in the community bank s operations.

Company management attributed the year over year improvement primarily to higher net interest income, which the release says was driven by both higher interest income and lower interest expense. The quarter also benefited from the absence of a loan loss provision, and slightly higher non interest income. These three factors together offset modest increases in non interest expense and a rise in income tax expense, leaving the bank in positive territory for the quarter.

The disclosure also included balance sheet figures, reporting totals for assets and loans, and management commentary is available in the company release for those seeking the full financial tables. While the release did not specify every line item in the summary, the combination of rising net interest income and no loan loss provision signals either improving asset quality or reduced reserve needs for the brief reporting period.

For residents and businesses in Perry County the results carry practical implications. First Federal operates a banking office in Hazard, so quarterly profitability can affect the local availability of credit, the bank s capacity to finance small business activity, and the stability of deposit services. A return to profit can strengthen the bank s capital position, support continued branch operations, and provide management with more flexibility on lending and community initiatives. At the same time the modest rise in operating and tax costs highlights that improved revenue did not flow entirely to the bottom line.

From a broader perspective the pattern of higher interest income combined with lower interest expense is notable because it shows the bank was able to expand its net interest margin in the quarter. Net interest income is the gap between interest earned on loans and investments and interest paid on deposits and borrowings, and it is the primary driver of profitability for traditional community banks. The absence of a loan loss provision reduces volatility in reported earnings, but investors and local stakeholders should watch subsequent quarters to confirm whether this reflects a lasting improvement in credit quality or a temporary easing of reserve requirements.

Local customers who rely on First Federal for deposit accounts or loans should review the full company release for detailed balance sheet figures and management commentary. The Q3 result is a positive signal for the Hazard office and the Perry County business community, but it remains an interim step in the bank s longer term financial trajectory.