REGULATORY CAPITAL

12 Months Ended

Jun. 30, 2014

Banking and Thrift [Abstract]

Regulatory Capital Requirements under Banking Regulations [Text Block]

NOTE J - REGULATORY CAPITAL

The Banks are subject to minimum regulatory capital standards promulgated by the Office of the Controller of the Currency (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 consolidated financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Banks must meet specific capital guidelines that involve quantitative measures of the Banks’ assets, liabilities, and certain off-balance-sheet items as calculated under regulatory accounting practices. The Banks’ capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings, and other factors.

The minimum capital standards of the OCC generally require the maintenance of regulatory capital sufficient to meet each of three tests, hereinafter described as the tangible capital requirement, the core capital requirement and the risk-based capital requirement. The core capital requirement provides for minimum core capital (tangible capital plus certain forms of supervisory goodwill and other qualifying intangible assets) generally equal to 4.0% of adjusted total assets, except for those associations with the highest examination rating and acceptable levels of risk. The risk-based capital requirement provides for the maintenance of core capital plus general loss allowances equal to 8.0% of risk-weighted assets. In computing risk-weighted assets, the Banks multiply the value of each asset on their respective statements of financial condition by a defined risk-weighting factor, e.g., one- to four-family residential loans carry a risk-weighted factor of 50%.

To be categorized as “well-capitalized” the Banks must maintain minimum capital ratios as set forth in the following tables:

As of June 30, 2014
										To be “well-
										capitalized” under
						For capital				prompt corrective
	Actual					adequacy purposes				action provisions
	Amount		Ratio			Amount		Ratio		Amount		Ratio
						(Dollars in thousands)
Tier 1 core capital
First Federal of Hazard	$	15,880		19.8	%	$	³3,206		³4.0%	$	³4,007		³5.0%
First Federal of Frankfort	$	31,647		14.8	%	$	³9,154		³4.0%	$	³11,443		³5.0%
Total risk-based capital
First Federal of Hazard	$	16,368		42.0	%	$	³3,116		³8.0%	$	³3,895		³10.0%
First Federal of Frankfort	$	32,531		26.4	%	$	³9,845		³8.0%	$	³12,306		³10.0%
Tier 1 risk-based capital
First Federal of Hazard	$	15,880		40.8	%	$	³3,206		³4.0%	$	³2,337		³6.0%
First Federal of Frankfort	$	31,647		25.7	%	$	³9,154		³4.0%	$	³7,384		³6.0%

As of June 30, 2013

										To be “well-
										capitalized” under
						For capital				prompt corrective
	Actual					adequacy purposes				action provisions
	Amount		Ratio			Amount		Ratio		Amount		Ratio
						(Dollars in thousands)
Tier 1 core capital
First Federal of Hazard	$	15,165		17.7	%	$	³3,427		³4.0%	$	³4,283		³5.0%
First Federal of Frankfort	$	31,795		13.7	%	$	³9,880		³4.0%	$	³12,350		³5.0%
Total risk-based capital
First Federal of Hazard	$	15,689		37.5	%	$	³3,351		³8.0%	$	³4,189		³10.0%
First Federal of Frankfort	$	32,543		25.1	%	$	³10,368		³8.0%	$	³12,960		³10.0%
Tier 1 risk-based capital
First Federal of Hazard	$	15,165		36.2	%	$	³3,427		³4.0%	$	³2,514		³6.0%
First Federal of Frankfort	$	31,795		24.5	%	$	³9,880		³4.0%	$	³7,776		³6.0%

As of June 30, 2014 and 2013, management believes that First Federal of Hazard and First Federal of Frankfort met all capital adequacy requirements to which the Banks were subject.

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 the fiscal year ended June 30, 2014, 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.