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Stockholders' Equity and Regulatory Capital | 12 Months Ended
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Jun. 30, 2018
Stockholders' Equity and Regulatory Capital [Abstract] |
STOCKHOLDERS' EQUITY AND REGULATORY CAPITAL | NOTE J – STOCKHOLDERS’ EQUITY AND REGULATORY CAPITAL Dividend Restrictions – Dividends from the Banks are the primary source of funds for the Company. Banking regulations limit the amount of dividends that may be paid to the Company by the Banks without prior approval of the Office of the Controller of the Currency (the “OCC.”) Under these regulations the amount of dividends that may be paid in any calendar year is limited to the current year’s net profits, combined with the retained net profits of the preceding two years. At June 30, 2018, the Banks could, without prior approval, declare no dividends. Federal regulations require the Banks comply with the Qualified Thrift Lender (“QTL”) test, which requires that 65% of assets be maintained in housing-related finance and other specified assets. If the QTL test is not met, limits are placed on growth, branching, new investment, FHLB advances, and dividends or the institutions must convert to a commercial bank charter. Management believes that the QTL test has been met for both Banks. Regulatory Capital Requirements - The Banks are subject to minimum regulatory capital standards promulgated by the OCC. Failure to meet minimum capital requirements can initiate certain mandatory -- and possibly additional discretionary -- actions by regulators that, if undertaken, could have a direct material effect on the Company’s consolidated financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Company and the Banks must meet specific capital guidelines that involve quantitative measures of the Company’s assets, liabilities, and certain off-balance-sheet items as calculated under regulatory accounting practices. The capital amounts and classifications are also subject to qualitative judgments by the regulators about components, risk weightings, and other factors. Prompt corrective action regulations provide five classifications: well-capitalized, adequately capitalized, undercapitalized, significantly undercapitalized, and critically undercapitalized, although these terms are not used to represent overall financial condition. If adequately capitalized, regulatory approval is required to accept brokered deposits. If undercapitalized, capital distributions are limited, as is asset growth and expansion, and capital restoration plans are required. Capital Standards – Effective January 1, 2015, the Company and the Banks became subject to the regulatory capital reforms in accordance with Basel III, which established higher minimum risk-based capital ratio requirements, a new common equity Tier 1 risk-based capital ratio and a new capital conservation buffer (“CCB.”) The regulations also included revisions to the definition of capital and changes in the risk-weighting of certain assets, in addition to redefining “well capitalized” as a 6.5% common equity Tier 1 risk-based capital ratio, an 8.0% Tier 1 risk-based capital ratio, a 10.0% total risk-based capital ratio and a 5.0% Tier 1 leverage ratio. Additionally, the CCB, which is applicable to the above minimum risk-based capital requirements, was introduced. The CCB will eventually be 2.5% and is being phased in over a five year period. The current CCB is equal to 1.25% and increases 0.625% annually through 2019 to 2.5%. The Company and the Banks, in order to avoid limitations on capital distributions, including dividend payments, engaging in share repurchases and certain discretionary bonus payments to executive officers, must maintain the CCB at the appropriate level. To be categorized as “well-capitalized” the Banks must maintain minimum capital ratios as set forth in the following tables, which do not include the CCB:
|  | As of June 30, 2018 |
|  |  |  |  |  |  |  |  |  |  |  |  |  | Minimum |
|  |  |  |  |  |  |  |  |  |  |  |  |  | Requirement |
|  |  |  |  |  |  |  | Minimum |  |  | To be “Well- |
|  |  |  |  |  |  |  | Requirement |  |  | Capitalized” Under |
|  |  |  |  |  |  |  | For Capital |  |  | Prompt Corrective |
|  | Actual |  |  | Adequacy Purposes |  |  | Action Provisions |
|  | Amount |  |  | Ratio |  |  | Amount |  |  | Ratio |  |  | Amount |  |  | Ratio |
|  | (Dollars in thousands) |
Risk-based capital: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Common Equity Tier 1 capital ratio |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Kentucky First Federal |  | $ | 52,696 |  |  |  | 29.5 | % |  | $ | 8,050 |  |  |  | 4.5 | % |  |  | N/A |  |  |  | N/A |
First Federal of Hazard |  |  | 18,221 |  |  |  | 43.6 |  |  |  | 1,883 |  |  |  | 4.5 |  |  | $ | 2,720 |  |  |  | 6.5 | %
First Federal of Kentucky |  |  | 30,502 |  |  |  | 21.3 |  |  |  | 6,443 |  |  |  | 4.5 |  |  |  | 9,306 |  |  |  | 6.5 |
Tier 1 (core) capital ratio |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Kentucky First Federal |  |  | 52,696 |  |  |  | 29.5 |  |  |  | 10,733 |  |  |  | 6.0 |  |  |  | N/A |  |  |  | N/A |
First Federal of Hazard |  |  | 18,221 |  |  |  | 43.6 |  |  |  | 2,511 |  |  |  | 6.0 |  |  |  | 3,348 |  |  |  | 8.0 |
First Federal of Kentucky |  |  | 30,502 |  |  |  | 21.3 |  |  |  | 8,590 |  |  |  | 6.0 |  |  |  | 11,454 |  |  |  | 8.0 |
Total capital ratio |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Kentucky First Federal |  |  | 54,272 |  |  |  | 30.3 |  |  |  | 14,311 |  |  |  | 8.0 |  |  |  | N/A |  |  |  | N/A |
First Federal of Hazard |  |  | 18,745 |  |  |  | 44.8 |  |  |  | 3,348 |  |  |  | 8.0 |  |  |  | 4,184 |  |  |  | 10.0 |
First Federal of Kentucky |  |  | 31,462 |  |  |  | 22.0 |  |  |  | 11,454 |  |  |  | 8.0 |  |  |  | 14,317 |  |  |  | 10.0 |
Leverage capital: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Tier 1 leverage capital to average assets |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Kentucky First Federal |  |  | 52,696 |  |  |  | 17.5 |  |  |  | 12,035 |  |  |  | 4.0 |  |  |  | N/A |  |  |  | N/A |
First Federal of Hazard |  |  | 18,221 |  |  |  | 24.3 |  |  |  | 2,996 |  |  |  | 4.0 |  |  |  | 3,745 |  |  |  | 5.0 |
First Federal of Kentucky |  |  | 30,502 |  |  |  | 13.5 |  |  |  | 9,046 |  |  |  | 4.0 |  |  |  | 11,308 |  |  |  | 5.0 |
|  | As of June 30, 2017 |
|  |  |  |  |  |  |  |  |  |  |  |  |  | Minimum |
|  |  |  |  |  |  |  |  |  |  |  |  |  | Requirement |
|  |  |  |  |  |  |  | Minimum |  |  | To be “Well- |
|  |  |  |  |  |  |  | Requirement |  |  | Capitalized” Under |
|  |  |  |  |  |  |  | For Capital |  |  | Prompt Corrective |
|  | Actual |  |  | Adequacy Purposes |  |  | Action Provisions |
|  | Amount |  |  | Ratio |  |  | Amount |  |  | Ratio |  |  | Amount |  |  | Ratio |
|  | (Dollars in thousands) |
Risk-based capital: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Common Equity Tier 1 capital ratio |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Kentucky First Federal |  | $ | 52,638 |  |  |  | 30.0 | % |  | $ | 7,893 |  |  |  | 4.5 | % |  |  | N/A |  |  |  | N/A |
First Federal of Hazard |  |  | 18,015 |  |  |  | 46.7 |  |  |  | 1,737 |  |  |  | 4.5 |  |  | $ | 2,509 |  |  |  | 6.5 | %
First Federal of Kentucky |  |  | 30,126 |  |  |  | 25.1 |  |  |  | 6,144 |  |  |  | 4.5 |  |  |  | 8,874 |  |  |  | 6.5 |
Tier 1 (core) capital ratio |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Kentucky First Federal |  |  | 52,638 |  |  |  | 30.0 |  |  |  | 10,524 |  |  |  | 6.0 |  |  |  | N/A |  |  |  | N/A |
First Federal of Hazard |  |  | 18,015 |  |  |  | 46.7 |  |  |  | 2,316 |  |  |  | 6.0 |  |  |  | 3,087 |  |  |  | 8.0 |
First Federal of Kentucky |  |  | 30,126 |  |  |  | 25.1 |  |  |  | 8,191 |  |  |  | 6.0 |  |  |  | 10,922 |  |  |  | 8.0 |
Total capital ratio |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Kentucky First Federal |  |  | 54,171 |  |  |  | 30.9 |  |  |  | 14,032 |  |  |  | 8.0 |  |  |  | N/A |  |  |  | N/A |
First Federal of Hazard |  |  | 18,498 |  |  |  | 47.9 |  |  |  | 3,087 |  |  |  | 8.0 |  |  |  | 3,859 |  |  |  | 10.0 |
First Federal of Kentucky |  |  | 31,059 |  |  |  | 22.8 |  |  |  | 10,922 |  |  |  | 8.0 |  |  |  | 13,652 |  |  |  | 10.0 |
Leverage capital: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Tier 1 leverage capital to average assets |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Kentucky First Federal |  |  | 52,638 |  |  |  | 18.4 |  |  |  | 11,427 |  |  |  | 4.0 |  |  |  | N/A |  |  |  | N/A |
First Federal of Hazard |  |  | 18,015 |  |  |  | 26.6 |  |  |  | 2,707 |  |  |  | 4.0 |  |  |  | 3,383 |  |  |  | 5.0 |
First Federal of Kentucky |  |  | 30,126 |  |  |  | 13.4 |  |  |  | 8,971 |  |  |  | 4.0 |  |  |  | 11,214 |  |  |  | 5.0 |
As of June 30, 2018 and 2017, management believes that First Federal of Hazard and First Federal of Kentucky met all capital adequacy requirements to which the Banks were subject. There are no conditions or subsequent events that have occurred that managements believes have changed the Banks’ categories. Regulations of the Board of Governors of the Federal Reserve System governing mutual holding companies require First Federal MHC to meet certain criteria before the company may waive the receipt by it of any common stock dividend declared by Kentucky First Federal Bancorp. During each of the fiscal years ended June 30, 2018 and 2017, and pursuant to the provisions allowed by the Board of Governors of the Federal Reserve System, First Federal MHC waived $1.9 million in dividends.

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- Definition The entire disclosure for banks, savings institutions, and credit unions, for regulatory capital requirements imposed by the Federal Reserve System (FRB), the Federal Deposit Insurance Corporation (FDIC), the Office of Thrift Supervision (OTS) or for any state imposed capital requirements, as applicable. The disclosure may include (1) a description of regulatory capital requirements (a) for capital adequacy purposes and (b) established by the prompt corrective action provisions of Section 38 of the Federal Depository Insurance Act; (2) the actual or possible material effects of noncompliance with such requirements; (3) whether the entity is in compliance with the regulatory capital requirements including (a) required and actual ratios and amounts of Tier 1 leverage, Tier 1 risk-based, and total risk-based capital, tangible capital (for savings institutions), and Tier 3 capital for market risk (for certain banks and bank holding companies), (b) factors that may significantly affect capital adequacy; (4) the prompt corrective action category in which the entity was classified as of its most recent notification; (5) whether management believes any conditions or events since notification have changed the entity's category. Also may include additional information that might be disclosed in situations where substantial doubt about the entity's ability to continue as a going concern for a reasonable period of time. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 942 -SubTopic 505 -Section 50 -Paragraph 1C -URI http://asc.fasb.org/extlink&oid=84167132&loc=SL5958572-112826 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 942 -SubTopic 505 -Section 50 -Paragraph 1D -URI http://asc.fasb.org/extlink&oid=84167132&loc=SL5958573-112826 Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 942 -SubTopic 505 -Section 50 -Paragraph 1B -URI http://asc.fasb.org/extlink&oid=84167132&loc=SL5958570-112826 Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 942 -SubTopic 505 -Section 50 -Paragraph 1A -URI http://asc.fasb.org/extlink&oid=84167132&loc=SL5958569-112826 Reference 5: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 942 -SubTopic 505 -Section 50 -Paragraph 1G -URI http://asc.fasb.org/extlink&oid=84167132&loc=SL5958577-112826 Reference 6: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 942 -SubTopic 505 -Section 50 -Paragraph 1F -URI http://asc.fasb.org/extlink&oid=84167132&loc=SL5958575-112826 Reference 7: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 942 -SubTopic 505 -Section 50 -Paragraph 1E -URI http://asc.fasb.org/extlink&oid=84167132&loc=SL5958574-112826 Reference 8: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 942 -SubTopic 505 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=84167132&loc=SL5958568-112826 Reference 9: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 942 -SubTopic 505 -Section 50 -Paragraph 1H -URI http://asc.fasb.org/extlink&oid=84167132&loc=d3e65071-112826 + Details
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