Kentucky First Federal Bancorp Commitments Disclosure
NOTE J - LOAN COMMITMENTS
The Banks are a party to financial instruments with off-balance-sheet risk in the normal course of business to meet the financing needs of their customers, including commitments to extend credit. Such commitments involve, to varying degrees, elements of credit and interest-rate risk in excess of the amount recognized in the consolidated statements of financial condition. The contract or notional amounts of the commitments reflect the extent of the Banks’ involvement in such financial instruments.
The Banks’ exposure to credit loss in the event of nonperformance by the other party to the financial instrument for commitments to extend credit is represented by the contractual notional amount of those instruments. The Banks use the same credit policies in making commitments and conditional obligations as those utilized for on-balance-sheet instruments.
At June 30, 2025 and 2024, the Banks had the following outstanding loan commitments:
| 2025 | 2024 | |||||||||||||||
| (in thousands) | Fixed | Variable | Fixed | Variable | ||||||||||||
| Unused commitment: | ||||||||||||||||
| Revolving, open-end lines secured by real estate | $ | $ | 17,614 | $ | $ | 14,965 | ||||||||||
| Commitments to fund real estate construction loans | 8,985 | 10,272 | ||||||||||||||
| Other unused commitments: | ||||||||||||||||
| Commercial and industrial loans | 29 | 287 | 90 | 370 | ||||||||||||
| Other | 122 | 632 | 460 | 741 | ||||||||||||
| Letters of credit | 310 | 212 | ||||||||||||||
Commitments to make loans are generally made for periods of 60 days or less. There were no fixed rate loan commitments to fund real estate construction loans at June 30, 2025. Other unused commitments include real estate loan commitments, which represent the primary loans made by the Banks. Long-term, fixed rate mortgage loans are usually sold to the FHLB, as part of the Company’s interest rate risk strategy.
At June 30, 2025 and 2024, we have recorded a liability on unfunded commitments of $59,000 and $60,000, respectively
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Sep 30, 2025 | Showing above |
| 2024 | Oct 3, 2024 | |
| 2023 | Sep 28, 2023 | |
| 2022 | Sep 28, 2022 | |
| 2021 | Sep 28, 2021 | |
| 2020 | Sep 28, 2020 | |
| 2019 | Sep 30, 2019 | |
| 2018 | Sep 28, 2018 | |
| 2017 | Sep 28, 2017 | |
| 2016 | Sep 28, 2016 | |
| 2015 | Sep 28, 2015 | |
About Commitments Disclosures
Commitments and contingencies disclosures catalog a company's off-balance-sheet obligations and legal exposures — purchase commitments, guarantee arrangements, pending litigation, and regulatory proceedings. These items represent potential future cash outflows that may not appear as liabilities on the balance sheet until they become probable and estimable.
Key signals: litigation reserves and disclosed loss ranges quantify management's estimate of legal exposure, but unquantified "reasonably possible" losses often represent the larger risk. Watch for changes in language around pending cases — shifts from "remote" to "reasonably possible" or increases in estimated loss ranges signal deteriorating outcomes. Unconditional purchase obligations and take-or-pay contracts create fixed cost structures that reduce operational flexibility. Guarantee arrangements for subsidiaries or joint ventures can create cascading obligations. Compare the total commitment schedule against projected free cash flow to assess whether the company can meet its obligations without additional financing.