Kentucky Bank Terminates Agreement with OCC
Kentucky First Federal Bancorp (Nasdaq: KFFB) announced that the Office of the Comptroller of the Currency (OCC) has terminated a formal agreement with its subsidiary, First Federal Savings Bank of Kentucky. The termination of the regulatory agreement marks a milestone for the bank, which is regulated by the OCC.
- The formal agreement with the Office of the Comptroller of the Currency (OCC) was initiated on August 13, 2024, due to findings of "unsafe or unsound practices." These practices were related to strategic and succession planning, budgeting, and management of liquidity and interest rate risk. - This agreement placed the bank in a "troubled condition," a designation that has now been lifted with the termination. This also removes the individual minimum capital requirements that were imposed on the bank. - The termination of the agreement, which lasted less than 20 months, was announced by the bank's President and CEO, R. Clay Hulette. He credited the hard work of the bank's team in addressing the issues raised by the OCC. - As a result of the termination, First Federal Savings Bank of Kentucky is now considered an "eligible savings association." - The bank's capital levels were reported to have been in excess of the individual minimum capital requirements throughout the duration of the agreement. - Kentucky First Federal Bancorp is the parent holding company for both First Federal Savings Bank of Kentucky and First Federal Savings and Loan Association of Hazard.
