Kentucky Bank's Regulatory Agreement Terminated
Kentucky First Federal Bancorp 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 notice was published on February 19, 2026, by the bank's primary regulator.
- The formal agreement, initiated on August 13, 2024, stemmed from findings of "unsafe or unsound practices" by the OCC. - Specific areas of concern cited by the regulator included strategic and succession planning, budgeting, and management of liquidity and interest rate risk. - As a result of the agreement, the bank was formally designated as being in "troubled condition," a classification that has now been lifted. - The termination of the agreement also removes the individual minimum capital requirements that had been imposed on the bank. - First Federal Savings Bank of Kentucky stated that its capital levels had already exceeded and continue to surpass the heightened regulatory requirements. - With the termination, the bank is now considered an "eligible savings association" under OCC regulations, which provides greater operational flexibility. - The bank's compliance with the agreement's articles was a prerequisite for the OCC to terminate the enforcement action.
