KFFB

KFFB is a ~$371M-asset federal thrift whose earnings power has collapsed and only just stopped bleeding. Net income walked down every year — $1.82M (FY21) → $1.59M (FY22) → $933K (FY23) → a $1.72M loss (FY24) — and FY25's rebound to $181K is a rounding error, not a recovery: diluted EPS of $0.02 puts the stock at a nonsensical 253.5x earnings and a 0.4% return on $48.4M of equity. A bank that cannot clear even 1% ROE is not earning its cost of capital, and the market is already paying a fat multiple for a recovery that hasn't shown up in the bottom line.

The one genuine positive is in the MD&A: net interest income climbed from $6.9M in FY24 to $8.3M in FY25 (+20%) as the FOMC cut 125bp since September 2024 and asset yields outran funding costs. That is the whole bull case — and it is entirely exogenous. Management concedes that if rates rise again, short-duration liabilities reprice faster than assets and NII 'may decline in the short term.' With 93.8% of the residential book on adjustable rates, the franchise is a leveraged wager on the Fed's path, not a compounding business. The 50.8% dividend cut (payout down to $670K in FY24) is management telling you the same thing.