Kentucky First Federal Bancorp is a small community bank holding company based in Hazard, Kentucky. It operates two federally chartered savings institutions — First Federal of Hazard and First Federal of Kentucky — serving rural communities in central and eastern Kentucky. The core business is traditional community banking: attracting deposits from local residents and using those funds to originate residential mortgage loans, which make up roughly 84% of the loan portfolio. Customers are individual homeowners and homebuyers seeking purchase or refinance financing. To a lesser extent, the company also originates home equity, construction, multi-family, and commercial property loans. Kentucky First Federal earns money on the spread between its borrowing costs (primarily deposits and FHLB advances) and the rates it charges on loans. The residential mortgage portfolio is heavily weighted toward adjustable-rate mortgages. First Federal of Kentucky also sells fixed-rate loans into the secondary market and earns servicing income on loans sold. Funding is supplemented by brokered deposits and FHLB borrowings. Credit risk is a meaningful concern given the economically distressed nature of some markets, particularly Perry County. A significant regulatory overhang exists: First Federal of Kentucky entered into a formal agreement with the OCC in August 2024, placing it in "troubled condition" status and imposing elevated minimum capital requirements, constraining the bank's activities. The company suspended its dividend indefinitely in January 2024.