What changed in this filing

/stocks — the workspaceLOADING

Item 1. Financial Statements

2025-05-09 compared with 2025-02-07 · 259 added, 138 removed, 785 unchanged (34% of the section changed)

4 unchanged sentences

(Dollars in thousands, except per share amounts)

December 31, September 30,

March 31, September 30,

Cash and cash equivalents (includes interest-earning deposits of $ 323,552 and $ 192,138 )

19 unchanged sentences

Common stock, $ .01 par value;

1,400,000,000 shares authorized, 132,774,365 and 132,735,565 shares issued and outstanding as of December 31, 2024 and September 30, 2024, respectively

1,400,000,000 shares authorized, 132,786,365 and 132,735,565 shares issued and outstanding as of March 31, 2025 and September 30, 2024, respectively

Additional paid-in capital 1,146,733 1,146,851

9 unchanged sentences

(Dollars in thousands, except per share amounts)

For the Three Months Ended

For the Three Months Ended For the Six Months Ended

March 31, March 31,

2025 2024 2025 2024

INTEREST AND DIVIDEND INCOME:

11 unchanged sentences

PROVISION FOR CREDIT LOSSES — 301 677 424

NET INTEREST INCOME AFTER PROVISION FOR CREDIT LOSSES 41,553 39,470

NET INTEREST INCOME AFTER

PROVISION FOR CREDIT LOSSES 43,840 41,019 85,393 80,489

NON-INTEREST INCOME:

15 unchanged sentences

Total non-interest expense 29,540 28,445 56,688 56,953

INCOME BEFORE INCOME TAX EXPENSE (BENEFIT) 19,098 2,068

INCOME TAX EXPENSE (BENEFIT) 3,667 ( 475 )

INCOME BEFORE INCOME TAX EXPENSE 19,253 17,217 38,351 19,285

INCOME TAX EXPENSE 3,854 3,455 7,521 2,980

NET INCOME $ 15,399 $ 13,762 $ 30,830 $ 16,305

8 unchanged sentences

(Dollars in thousands)

For the Three Months Ended

For the Three Months Ended For the Six Months Ended

March 31, March 31,

2025 2024 2025 2024

Net income $ 15,399 $ 13,762 $ 30,830 $ 16,305

Other comprehensive income, net of tax:

Unrealized (losses) gains on AFS securities arising during the period,

net of taxes of $ 3,741 and $( 5,350 )

Unrealized (losses) gains on AFS securities arising during the

period, net of taxes of $( 2,151 ), $ 1,766 , $ 1,590 , and $( 3,584 )

6,750 ( 5,471 ) ( 4,992 ) 11,110

Reclassification adjustment for gross gains on AFS securities included in net income,

net of taxes of $ 0 and $ 383

Unrealized gains (losses) on cash flow hedges arising during the period,

net of taxes of $( 756 ) and $ 967

Reclassification adjustment for gross gains on AFS securities

included in net income, net of taxes of $ 0 , $ 0 , $ 0 , and $ 383

— — — ( 1,188 )

Reclassification adjustment for cash flow hedge amounts included in net income,

net of taxes of $ 222 and $ 626

Unrealized gains (losses) on cash flow hedges arising during

the period, net of taxes of $ 225 , $( 814 ), $( 531 ), and $ 153

( 706 ) 2,521 1,669 ( 477 )

Reclassification adjustment for cash flow hedge amounts included

in net income, net of taxes of $ 177 , $ 542 , $ 399 , and $ 1,168

( 554 ) ( 1,678 ) ( 1,252 ) ( 3,618 )

Comprehensive income $ 20,889 $ 9,134 $ 26,255 $ 22,132

4 unchanged sentences

(Dollars in thousands, except per share amounts)

For the Three Months Ended December 31, 2024

For the Six Months Ended March 31, 2025

Additional Unearned Total

10 unchanged sentences

Balance at December 31, 2024 $ 1,328 $ 1,146,802 $ ( 26,019 ) $ ( 106,734 ) $ 11,562 $ 1,026,939

For the Three Months Ended December 31, 2023

Net income 15,399 15,399

Other comprehensive income, net of tax 5,490 5,490

ESOP activity ( 172 ) 413 241

Stock-based compensation 103 103

Cash dividends to stockholders ($ 0.085 per share)

( 11,062 ) ( 11,062 )

Balance at March 31, 2025 $ 1,328 $ 1,146,733 $ ( 25,606 ) $ ( 102,397 ) $ 17,052 $ 1,037,110

For the Six Months Ended March 31, 2024

Additional Unearned Total

12 unchanged sentences

Balance at December 31, 2023 $ 1,339 $ 1,154,655 $ ( 27,671 ) $ ( 113,357 ) $ 19,155 $ 1,034,121

Net income 13,762 13,762

Other comprehensive loss, net of tax ( 4,628 ) ( 4,628 )

ESOP activity ( 168 ) 413 245

Restricted stock activity, net 1 ( 3 ) ( 2 )

Stock-based compensation 82 82

Repurchase of common stock ( 13 ) ( 7,537 ) ( 7,550 )

Cash dividends to stockholders ($ 0.085 per share)

( 11,127 ) ( 11,127 )

Balance at March 31, 2024 $ 1,327 $ 1,147,029 $ ( 27,258 ) $ ( 110,722 ) $ 14,527 $ 1,024,903

See accompanying notes to consolidated financial statements.

3 unchanged sentences

(Dollars in thousands)

For the Three Months Ended

For the Six Months Ended

CASH FLOWS FROM OPERATING ACTIVITIES:

17 unchanged sentences

Other liabilities ( 13,641 ) ( 9,407 )

Net cash provided by (used in) operating activities 5,608 ( 5,334 )

Net cash provided by operating activities 21,113 15,168

CASH FLOWS FROM INVESTING ACTIVITIES:

6 unchanged sentences

Proceeds from sale of other real estate owned ("OREO") 110 396

Proceeds from sale of premises and equipment 43 —

Proceeds from sale of assets held-for-sale — 180

Proceeds from bank-owned life insurance ("BOLI") death benefit 667 1,049

Net cash (used in) provided by investing activities ( 74,174 ) 674,270

3 unchanged sentences

(Dollars in thousands)

For the Three Months Ended

For the Six Months Ended

CASH FLOWS FROM FINANCING ACTIVITIES:

6 unchanged sentences

Net cash provided by (used in) financing activities 176,143 ( 491,530 )

NET (DECREASE) / INCREASE IN CASH AND CASH EQUIVALENTS ( 46,983 ) 74,752

NET INCREASE IN CASH AND CASH EQUIVALENTS 123,082 197,908

CASH AND CASH EQUIVALENTS:

1 unchanged sentence

End of period $ 340,389 $ 443,513

SUPPLEMENTAL DISCLOSURE OF NONCASH INVESTING ACTIVITIES:

Purchase of securities that will settle in a subsequent period $ — $ 29,467

See accompanying notes to consolidated financial statements.

30 unchanged sentences

This ASU requires public entities to provide additional annual disclosures regarding specific categories of the income tax rate reconciliation and additional information for reconciling items within the income tax rate reconciliation that meet a certain quantitative threshold.

This ASU is effective for the Company on October 1, 2025, starting with its December 31, 2025 Form 10-Q.

This ASU is effective for the Company on October 1, 2025, starting with its Form 10-Q for the quarter ending December 31, 2025.

The Company is currently evaluating the effect this ASU will have on the Company's income tax disclosures.

1 unchanged sentence

This ASU removes references to various Concept Statements to simplify the Codification and provide a distinction between authoritative and nonauthoritative literature.

This ASU is effective for the Company on October 1, 2025, starting with its September 30, 2026 Form 10-K.

This ASU is effective for the Company on October 1, 2025, starting with its Form 10-K for the fiscal year ending September 30, 2026.

The Company is currently evaluating this ASU, but it is not expected to have a significant impact on the Company's consolidated financial condition or results of operation or the Company's disclosures.

15 unchanged sentences

The two-class method is an earnings allocation that determines EPS for each class of common stock and participating security.

For the Three Months Ended

For the Three Months Ended For the Six Months Ended

March 31, March 31,

2025 2024 2025 2024

(Dollars in thousands, except per share amounts)

11 unchanged sentences

The majority of our AFS securities at both dates were government guaranteed or issued by a Government Sponsored Enterprise ("GSE").

December 31, 2024

March 31, 2025

Gross Gross Estimated

15 unchanged sentences

$ 829,852 $ 27,113 $ 699 $ 856,266

At December 31, 2024, AFS securities included $ 717.4 million of residential MBS and $ 68.9 million of commercial MBS.

At March 31, 2025, AFS securities included $ 818.3 million of residential MBS and $ 69.4 million of commercial MBS.

At September 30, 2024, AFS securities included $ 713.3 million of residential MBS and $ 70.2 million of commercial MBS.

The following tables summarize the estimated fair value and gross unrealized losses of those AFS securities on which an unrealized loss at the dates presented was reported and the continuous unrealized loss position for less than 12 months and equal to or greater than 12 months as of the dates presented.

December 31, 2024

March 31, 2025

Less Than 12 Months Equal to or Greater Than 12 Months

14 unchanged sentences

$ 10,997 $ 44 $ 6,307 $ 655

The unrealized losses at December 31, 2024 were a result of an increase in market yields from the time the securities were purchased.

The unrealized losses at March 31, 2025 were a result of an increase in market yields from the time the securities were purchased.

In general, as market yields rise, the fair value of securities will decrease;

as market yields fall, the fair value of securities will increase.

Management did not record an ACL on securities in an unrealized loss position at December 31, 2024 as management did not believe any of the securities were impaired due to credit quality reasons.

Management did not record an ACL on securities in an unrealized loss position at March 31, 2025 as management did not believe any of the securities were impaired due to credit quality reasons.

The issuers of these securities continue to make scheduled and timely principal and interest payments, as applicable, under the contractual term of the securities, so management believes the entire principal balance will be collected as scheduled.

1 unchanged sentence

The fair value is expected to recover as the securities approach their maturity date, if not before, or if market yields decline.

The amortized cost and estimated fair value of AFS debt securities as of December 31, 2024, by contractual maturity, are shown below.

The amortized cost and estimated fair value of AFS debt securities as of March 31, 2025, by contractual maturity, are shown below.

Actual principal repayments may differ from contractual maturities due to prepayment or early call privileges by the issuer.

9 unchanged sentences

The following table presents the taxable and non-taxable components of interest income on investment securities for the periods presented.

For the Three Months Ended

For the Three Months Ended For the Six Months Ended

March 31, March 31,

2025 2024 2025 2024

(Dollars in thousands)

3 unchanged sentences

The following table summarizes the carrying value of securities pledged as collateral for the obligations indicated below as of the dates presented.

December 31, 2024 September 30, 2024

March 31, 2025 September 30, 2024

(Dollars in thousands)

2 unchanged sentences

$ 188,755 $ 220,029

The Bank sold $ 1.30 billion of AFS securities during the prior fiscal year quarter.

The Bank received gross proceeds of $ 1.27 billion from the sale and realized gross losses of $ 14.9 million and gross gains of $ 1.6 million, resulting in a net loss of $ 13.3 million on the sale during the quarter ended December 31, 2023.

All other dispositions of securities during the current year quarter and prior year quarter were the result of principal repayments, calls, or maturities.

The Bank sold $ 1.30 billion of AFS securities during fiscal year 2024.

All other dispositions of securities during the current and prior year periods were the result of principal repayments, calls, or maturities.

LOANS RECEIVABLE AND ALLOWANCE FOR CREDIT LOSSES

Loans receivable, net at the dates presented is summarized as follows:

December 31, 2024 September 30, 2024

March 31, 2025 September 30, 2024

(Dollars in thousands)

17 unchanged sentences

$ 7,875,905 $ 7,907,338

Lending Practices and Underwriting Standards - Originating one- to four-family loans is the Bank's primary lending business.

The Bank also originates consumer loans primarily secured by one- to four-family residential properties and originates and participates in commercial loans.

The Bank has historically also purchased one- to four-family loans from correspondent lenders, but during the prior fiscal year, the Bank suspended its one- to four-family correspondent lending channels for the foreseeable future.

The Bank has a loan concentration in one- to four-family loans and a geographic concentration of these loans in Kansas and Missouri.

Lending Practices and Underwriting Standards - The Bank originates one- to four-family loans, originates and participates in commercial loans, and originates consumer loans primarily secured by one- to four-family residential properties.

The Bank has historically purchased one- to four-family loans from correspondent lenders, but during the prior fiscal year, the Bank suspended its one- to four-family correspondent lending channels for the foreseeable future.

One- to four-family loans - Full documentation to support an applicant's credit and income, and sufficient funds to cover all applicable fees and reserves at closing, are required on all loans.

7 unchanged sentences

For commercial participation loans, the Bank performs the same underwriting procedures as if the loan was originated by the Bank.

The Bank's commercial loan portfolio has a concentration in commercial real estate and commercial construction loans and a geographic concentration in Kansas, Texas, and Missouri.

When underwriting a commercial real estate or commercial construction loan, several factors are considered, such as the income producing potential of the property, cash equity provided by the borrower, the financial strength of the borrower, managerial expertise of the borrower or tenant, feasibility studies, lending experience with the borrower and the marketability of the property.

At the time of origination, loan-to-value ("LTV") ratios on commercial real estate loans generally do not exceed 85 % of the appraised value of the property securing the loans and the minimum debt service coverage ratio ("DSCR") is generally 1.15 x.

At the time of origination, loan-

to-value ("LTV") ratios on commercial real estate loans generally do not exceed 85 % of the appraised value of the property securing the loans and the minimum debt service coverage ratio ("DSCR") is generally 1.15 x.

The Bank generally requires a guaranty on all commercial real estate loans, but for an experienced borrower with a strong DSCR and low LTV ratio, the Bank may allow the guaranty percentage to be reduced or phased out, or the Bank may originate the loan as a non-recourse loan.

8 unchanged sentences

As a result of these complexities, variables and risks, commercial and industrial loans generally require evaluation of different metrics and factors before origination and require more monitoring and servicing after origination than other types of loans.

Management regularly monitors the level of risk in the entire commercial loan portfolio, including concentrations in factors such as geographic locations, collateral types, tenant brand name, borrowing relationships, and, in the case of participation loans, lending relationships, among other factors.

Annual reviews are performed for larger loans and lending relationships.

The annual reviews include evaluating updated financials, as well as performing stress tests to measure the ability of the loans to withstand certain stress scenarios such as interest rate increases, revenue decreases and expense increases.

Management regularly monitors the level of risk in the entire commercial loan portfolio, including concentrations in factors such as collateral types, geographic locations, tenant brand name, borrowing relationships, and, in the case of participation loans, lending relationships, among other factors.

Commercial loans that have an outstanding balance of $ 1.5 million or more, or borrowing relationships with a total relationship exposure of $ 5.0 million or more are reviewed no less often than annually to monitor financial performance.

The annual reviews include evaluating updated financials, as well as performing stress tests to measure the ability of the borrowers to withstand certain stress scenarios such as interest rate increases, revenue decreases and expense increases.

Consumer loans - The Bank offers a variety of consumer loans, the majority of which are home equity loans and lines of credit for which the Bank also has the first mortgage or the first lien position.

21 unchanged sentences

Loans classified as doubtful or loss are individually evaluated for loss.

At December 31, 2024 and September 30, 2024, there were no loans classified as doubtful, and all loans classified as loss were fully charged-off.

December 31, 2024

At March 31, 2025 and September 30, 2024, there were no loans classified as doubtful, and all loans classified as loss were fully charged-off.

March 31, 2025

Current Fiscal Fiscal Fiscal Fiscal Revolving Credit

69 unchanged sentences

All revolving lines of credit and revolving lines of credit converted to term loans are presented separately, regardless of origination year.

December 31, 2024

March 31, 2025

Current Fiscal Fiscal Fiscal Fiscal Revolving Credit

68 unchanged sentences

Gross Charge-Offs - The following tables present gross charge-offs, for the periods indicated, by class of financing receivable for the year of origination or most recent credit decision.

For the Three Months Ended December 31, 2024

For the Six Months Ended March 31, 2025

Current Fiscal Fiscal Fiscal Fiscal Revolving of Credit

14 unchanged sentences

Total $ 8 $ 13 $ 4 $ — $ — $ 113 $ 2 $ — $ 140

For the Three Months Ended December 31, 2023

For the Six Months Ended March 31, 2024

Fiscal Fiscal Fiscal Fiscal Fiscal Revolving of Credit

15 unchanged sentences

Delinquent and Nonaccrual Loans - The following tables present the amortized cost, at the dates indicated, by class, of loans 30 to 89 days delinquent, loans 90 or more days delinquent or in foreclosure, total delinquent loans, current loans, and total loans.

At December 31, 2024 and September 30, 2024, all loans 90 or more days delinquent were on nonaccrual status.

The increase in the 30 to 89 days delinquent commercial real estate loan balance from September 30, 2024 was due primarily to one Community Reinvestment Act loan.

The borrower is in the process of obtaining tax credit funding, which will service the loan until the project is stabilized.

The tax credit funding is anticipated to be received by the borrower during the quarter ended March 31, 2025.

December 31, 2024

At March 31, 2025 and September 30, 2024, all loans 90 or more days delinquent were on nonaccrual status.

March 31, 2025

90 or More Days Total Total

25 unchanged sentences

$ 16,049 $ 9,581 $ 25,630 $ 7,904,743 $ 7,930,373

The amortized cost of mortgage loans secured by residential real estate for which formal foreclosure proceedings were in process as of December 31, 2024 and September 30, 2024 was $ 1.9 million and $ 1.6 million, respectively, which are included in loans 90 or more days delinquent or in foreclosure in the tables above.

The amortized cost of mortgage loans secured by residential real estate for which formal foreclosure proceedings were in process as of March 31, 2025 and September 30, 2024 was $ 2.5 million and $ 1.6 million, respectively, which are included in loans 90 or more days delinquent or in foreclosure in the tables above.

The carrying value of residential OREO held as a result of obtaining physical possession upon completion of a foreclosure or through completion of a deed in lieu of foreclosure was $ 55 thousand at September 30, 2024.

There was no residential OREO held at December 31, 2024.

The following table presents the amortized cost at December 31, 2024 and September 30, 2024, by class, of loans classified as nonaccrual.

There was no residential OREO held at March 31, 2025.

The following table presents the amortized cost at March 31, 2025 and September 30, 2024, by class, of loans classified as nonaccrual.

Nonaccrual loans with no ACL were individually evaluated for loss and any losses have been charged off.

December 31, 2024 September 30, 2024

March 31, 2025 September 30, 2024

Nonaccrual Loans Nonaccrual Loans with No ACL Nonaccrual Loans Nonaccrual Loans with No ACL

11 unchanged sentences

Also presented in the tables is the percentage of the amortized cost basis of loans, at the dates indicated, that were modified to borrowers experiencing financial difficulties as compared to the amortized cost basis of each class of financing receivable during the periods noted.

During the three months ended December 31, 2024 and 2023, there were no charge-offs related to loans modified during those periods.

During the three and six months ended March 31, 2025 and 2024, there were no charge-offs related to loans modified during those periods.

The Company has not committed to lend additional amounts to borrowers included in these tables.

For the Three Months Ended December 31, 2024

For the Three Months Ended March 31, 2025

Extension Total

4 unchanged sentences

Originated $ 236 $ 1,344 $ 651 $ 2,231 0.06 %

Correspondent — — — — —

Correspondent purchased — 513 187 700 0.03

Bulk purchased — — — — —

8 unchanged sentences

Total $ 8,425 $ 2,730 $ 838 $ 11,993 0.15

For the Three Months Ended December 31, 2023

For the Six Months Ended March 31, 2025

Extension Total

Payment Financing

Delay Total Receivable

Payment Term Payment Financing

Delay Extension Delay Total Receivable

(Dollars in thousands)

1 unchanged sentence

Originated $ 353 $ 2,255 $ 816 $ 3,424 0.09 %

Correspondent 1,247 1,247 0.05

Correspondent purchased — 513 187 700 0.03

Bulk purchased — — — — —

2 unchanged sentences

Commercial and industrial — 838 — 838 0.62

8,189 838 — 9,027 0.54

Consumer loans:

Home equity 20 34 — 54 0.05

Other — — — — —

20 34 — 54 0.05

Total $ 8,562 $ 3,640 $ 1,003 $ 13,205 0.17

Financial effect of loan modifications - The table below presents the financial effects of loan modifications during the three months ended December 31, 2024 and 2023, including the weighted average payment delay and weighted average term extension.

For the Three Months Ended

December 31, 2024 December 31, 2023

For the Three Months Ended March 31, 2024 For the Six Months Ended March 31, 2024

Extension Total Extension Total

and Class of and Class of

Payment Financing Payment Financing

Delay Receivable Delay Receivable

(Dollars in thousands)

One- to four-family:

Originated $ 3,429 0.09 % $ 7,385 0.19 %

Correspondent purchased 845 0.04 1,744 0.07

Bulk purchased — — — —

4,275 0.07 9,129 0.14

Commercial real estate 238 0.02 238 0.02

Commercial and industrial 455 0.41 455 0.41

693 0.05 693 0.05

Consumer loans:

Home equity — — — —

Other — — — —

Total $ 4,968 0.06 $ 9,822 0.12

Financial effect of loan modifications - The tables below present the financial effect of loan modifications during the three and six months ended March 31, 2025 and 2024, including the weighted average payment delay and weighted average term extension.

For the Three Months Ended March 31, 2025 For the Six Months Ended March 31, 2025

Payment Term Payment Term

2 unchanged sentences

Originated 8 months 20 months 8 months 18 months

Correspondent N/A N/A 4 months 12 months

Bulk purchased N/A N/A N/A N/A

Commercial real estate 6 months 3 months N/A N/A

Commercial and industrial N/A 6 months N/A N/A

Consumer home equity 7 months N/A N/A N/A

Consumer other N/A N/A N/A N/A

Performance of loan modifications - The following tables provide information about the subsequent performance of loans modified for borrowers experiencing financial difficulty during the periods noted.

For the Three Months Ended December 31, 2024

Correspondent purchased 9 months 34 months 9 months 34 months

Commercial real estate 9 months N/A 9 months N/A

Commercial and industrial N/A 3 months N/A 3 months

Consumer home equity N/A 14 months 7 months 14 months

For the Three Months Ended March 31, 2024 For the Six Months Ended March 31, 2024

Payment Term Payment Term

Delay Extension Delay Extension

One- to four-family:

Originated 4 months 39 months 4 months 31 months

Correspondent purchased 5 months 20 months 4 months 17 months

Commercial real estate 26 months 26 months 26 months 26 months

Commercial and industrial 6 months 6 months 6 months 6 months

Performance of loan modifications - The Company closely monitors the performance of loans modified to borrowers experiencing financial difficulty to understand the effectiveness of its modification efforts.

The following table presents the performance of such loans, based on amortized cost, by class of financing receivable as of March 31, 2025, on loans modified during the previous 12-months for borrowers experiencing financial difficulty that were delinquent as of March 31, 2025, or as of March 31, 2024 on loans modified on or after October 1, 2023 (the day the Company adopted ASU 2022-02) through March 31, 2024 for borrowers experiencing financial difficulty, that were delinquent as of March 31, 2024.

All other loans modified during the periods noted were current as of March 31, 2025 and March 31, 2024.

As of March 31, 2025 As of March 31, 2024

30 to 89 Days

1 unchanged sentence

Delinquent or in Foreclosure Total

Delinquent Loans Current

Amortized Cost

Delinquent Loans 30 to 89 Days

Delinquent 90 or More Days

Delinquent or in Foreclosure Total

Delinquent Loans

(Dollars in thousands)

1 unchanged sentence

Originated $ 567 $ 428 $ 995 $ 653 $ 76 $ 729

Correspondent — — — — —

Correspondent purchased — — — — — —

Bulk purchased — — — — — —

Commercial real estate — — — — — —

Commercial & industrial — — — 19 19

Commercial and industrial — — — — — —

Consumer loans:

2 unchanged sentences

$ 567 $ 516 $ 1,083 $ 653 $ 76 $ 729

For the Three Months Ended December 31, 2023

30 to 89 Days

Delinquent 90 or More Days

Delinquent or in Foreclosure Total

Delinquent Loans Current

Amortized Cost

The following tables present the amortized cost basis of loans that had a payment default during the three and six months ended March 31, 2025 and were modified to borrowers experiencing financial difficulty in the 12-months prior to the default date, or loans that had a payment default during the three and six months ended March 31, 2024 and were modified to borrowers experiencing financial difficulty on or after October 1, 2023 (the day the Company adopted ASU 2022-02) prior to the default date, by class of financing receivable and by type of modification.

The Company considers "default" to mean 90 days or more past due under the modified terms.

For the Three Months Ended March 31, 2025 For the Six Months Ended March 31, 2025

Extension Extension

Payment Term Payment Payment Term Payment

Delay Extension Delay Total Delay Extension Delay Total

(Dollars in thousands)

1 unchanged sentence

Originated $ 84 $ 193 $ 151 $ 428 $ 84 $ 193 $ 151 $ 428

Correspondent — — — 1,247 1,247

Correspondent purchased — — 187 187 — — 428 428

Bulk purchased — — — — — — — —

Commercial real estate — — 192 192 — — 192 192

Commercial & industrial — — — — —

Commercial and industrial — — 227 227 — — 227 227

Consumer loans:

2 unchanged sentences

$ 172 $ 193 $ 757 $ 1,122 $ 172 $ 193 $ 998 $ 1,363

For the Three Months Ended March 31, 2024 For the Six Months Ended March 31, 2024

Extension Extension

Payment Payment

(Dollars in thousands)

One- to four-family:

Originated $ 93 $ 93

Correspondent purchased — —

Bulk purchased — —

Commercial real estate — —

Commercial and industrial — —

Consumer loans:

Home equity — —

Allowance for Credit Losses - The following tables summarizes ACL activity, by loan portfolio segment, for the periods presented.

For the Three Months Ended December 31, 2024

For the Three Months Ended March 31, 2025

One- to Four-Family

7 unchanged sentences

Ending balance $ 1,995 $ 1,446 $ 121 $ 3,562 $ 20,176 $ 232 $ 23,970

For the Three Months Ended December 31, 2023

For the Six Months Ended March 31, 2025

One- to Four-Family

3 unchanged sentences

Beginning balance $ 1,666 $ 1,861 $ 146 $ 3,673 $ 19,154 $ 208 $ 23,035

Charge-offs — — ( 113 ) ( 113 ) — ( 27 ) ( 140 )

Recoveries 5 — — 5 22 6 33

Provision for credit losses 324 ( 415 ) 88 ( 3 ) 1,000 45 1,042

Ending balance $ 1,995 $ 1,446 $ 121 $ 3,562 $ 20,176 $ 232 $ 23,970

For the Three Months Ended March 31, 2024

One- to Four-Family

Correspondent Bulk

Originated Purchased Purchased Total Commercial Consumer Total

(Dollars in thousands)

Beginning balance $ 2,094 $ 2,948 $ 206 $ 5,248 $ 18,678 $ 252 $ 24,178

Charge-offs — — — — ( 10 ) ( 8 ) ( 18 )

Recoveries 3 — — 3 — 15 18

Provision for credit losses ( 25 ) ( 155 ) ( 11 ) ( 191 ) 662 ( 15 ) 456

Ending balance $ 2,072 $ 2,793 $ 195 $ 5,060 $ 19,330 $ 244 $ 24,634

For the Six Months Ended March 31, 2024

One- to Four-Family

Correspondent Bulk

Originated Purchased Purchased Total Commercial Consumer Total

(Dollars in thousands)

Beginning balance $ 2,149 $ 2,972 $ 207 $ 5,328 $ 18,180 $ 251 $ 23,759

Adoption of ASU 2022-02 3 1 14 18 2 — 20

5 unchanged sentences

The key assumptions in the Company's ACL model include the economic forecast, the forecast and reversion to mean time periods, and prepayment and curtailment assumptions.

Management also considered certain qualitative factors when evaluating the adequacy of the ACL at December 31, 2024.

The key assumptions utilized in estimating the Company's ACL at December 31, 2024 are discussed below.

• Economic Forecast - Management considered several economic forecasts provided by a third party and selected an economic forecast that was the most appropriate considering the facts and circumstances at December 31, 2024.

The forecasted economic indices applied to the model at December 31, 2024 were the national unemployment rate, changes in commercial real estate price index, changes in home values, and changes in the U.S.

Management also considered certain qualitative factors when evaluating the adequacy of the ACL at March 31, 2025.

The key assumptions utilized in estimating the Company's ACL at March 31, 2025 are discussed below.

At March 31, 2025, management selected a slightly worse economic scenario to use in the discounted cash flow model than at December 31, 2024 to account for current economic conditions and future economic uncertainty related to recently issued and proposed federal government policies.

The forecasted economic indices applied to the model at March 31, 2025 were the national unemployment rate, changes in commercial real estate price index, changes in home values, and changes in the U.S.

gross domestic product.

The economic index most impactful to all loan pools within the model at December 31, 2024 was the national unemployment rate.

The forecasted national unemployment rate in the economic scenario selected by management at December 31, 2024 had the national unemployment rate remaining at 4.1 % through December 31, 2025, which was the end of our four-quarter forecast time period.

• Forecast and reversion to mean time periods - The forecasted time period and the reversion to mean time period were each four quarters for all of the economic indices at December 31, 2024.

• Prepayment and curtailment assumptions - The assumptions used at December 31, 2024 were generally based on actual historical prepayment and curtailment speeds, adjusted by management as deemed necessary.

The economic index most impactful to all loan pools within the model at March 31, 2025 was the national unemployment rate.

The forecasted national unemployment rate in the economic scenario selected by management at March 31, 2025 had the national unemployment rate remaining at 5.3 % through March 31, 2026, which was the end of our four-quarter forecast time period.

• Forecast and reversion to mean time periods - The forecasted time period and the reversion to mean time period were each four quarters for all of the economic indices at March 31, 2025.

• Prepayment and curtailment assumptions - The assumptions used at March 31, 2025 were generally based on actual historical prepayment and curtailment speeds, adjusted by management as deemed necessary.

The prepayment and curtailment assumptions vary for each respective loan pool in the model.

• Qualitative factors - Management applied qualitative factors at December 31, 2024 to account for large dollar commercial loan concentrations and potential risk of loss in market value for newer one- to four-family loans.

• Qualitative factors - Management applied qualitative factors at March 31, 2025 to account for large dollar commercial loan concentrations and potential risk of loss in market value for newer one- to four-family loans.

These qualitative factors were applied to account for credit risks not fully reflected in the discounted cash flow model.

◦ The Company's commercial real estate and construction loans generally have low LTV ratios and strong DSCRs which serve as indicators that losses in the commercial real estate and construction loan portfolios might be unlikely;

however, because there is uncertainty surrounding the nature, timing and amount of expected losses, management believes that in the event of a realized loss within the large dollar commercial loan pools, the magnitude of such a loss is likely to be significant.

The large dollar commercial loan concentration qualitative factor addresses the risk associated with a large dollar relationship deteriorating due to a loss event.

As part of its analysis, management considered external data including historical loss information for the industry and commercial real estate price index trending information from a variety of reputable sources to help determine the amount of this qualitative factor.

◦ For one- to four-family loans, management believes there is potential risk of loss in market value for newer originations and developed a qualitative factor to account for this risk.

To determine the appropriate amount of the one- to four-family loan qualitative factor as of December 31, 2024, management considered external historical home price index

trending information, along with the Bank's recent origination/purchase activity, historical loan loss experience and the current trend of this portfolio balance, the one-to four-family loan portfolio composition with regard to loan size, and management's knowledge of the Bank's loan portfolio and the one- to four-family lending industry.

Reserve for Off-Balance Sheet Credit Exposures - At December 31, 2024 and September 30, 2024, the Bank's off-balance sheet credit exposures totaled $ 723.3 million and $ 826.5 million, respectively.

As part of its analysis, management considered external data including historical commercial real estate price index trending information from a variety of sources to help determine the amount of this qualitative factor.

◦ For one- to four-family loans, management believes there is potential risk of loss in market value for newer originations where property values have not experienced price appreciation like more seasoned loans in our portfolio and applied a qualitative factor to account for this risk.

To determine the appropriate amount of the one- to four-family loan qualitative factor as of March 31, 2025, management considered external historical home price index trending information, along with the Bank's recent origination/purchase activity, historical loan loss experience and portfolio balance trending, the one-to four-family loan portfolio composition with regard to loan size, and management's knowledge of the Bank's loan portfolio and the one- to four-family lending industry.

Reserve for Off-Balance Sheet Credit Exposures - At March 31, 2025 and September 30, 2024, the Bank's off-balance sheet credit exposures totaled $ 831.9 million and $ 826.5 million, respectively.

The following table summarizes the change in reserve for off-balance sheet credit exposures during the periods indicated.

The provision release for the three months ended December 31, 2024 was due primarily to a decrease in the balance of commercial off-balance sheet credit exposures during the quarter.

The increase in the reserve for off-balance sheet credit exposures as of December 31, 2024 compared to December 31, 2023 was due to an increase in the ACL to loan ratio, specifically for commercial construction loans, partially offset by a decrease in the balance of commercial off-balance sheet credit exposures.

For the Three Months Ended

December 31, 2024 December 31, 2023

The provision for the three months ended March 31, 2025 was due primarily to an increase in the balance of commercial off-balance sheet credit exposures, mainly related to commitments that are expected to fund during the June 30, 2025 quarter.

The increase in the reserve for off-balance sheet credit exposures was entirely offset by the release of provision for credit losses related to the ACL for loans, resulting in no impact to the provision for credit losses for the quarter ended March 31, 2025.

The increase in the reserve for off-balance sheet credit exposures as of March 31, 2025 compared to March 31, 2024 was due primarily to an increase in commercial off-balance sheet credit exposures between periods.

For the Three Months Ended For the Six Months Ended

March 31, 2025 March 31, 2024 March 31, 2025 March 31, 2024

(Dollars in thousands)

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BORROWED FUNDS

FHLB Borrowings and Interest Rate Swaps - As of December 31, 2024 and September 30, 2024, the Bank held interest rate swap agreements with a total notional amount of $ 200.0 million in order to hedge the variable cash flows associated with $ 200.0 million of adjustable-rate FHLB advances.

At December 31, 2024 and September 30, 2024, the interest rate swap agreements had an average remaining term to maturity of 2.0 years and 2.3 years, respectively.

FHLB Borrowings and Interest Rate Swaps - As of March 31, 2025 and September 30, 2024, the Bank held interest rate swap agreements with a total notional amount of $ 200.0 million in order to hedge the variable cash flows associated with $ 200.0 million of adjustable-rate FHLB advances.

At March 31, 2025 and September 30, 2024, the interest rate swap agreements had an average remaining term to maturity of 1.8 years and 2.3 years, respectively.

The interest rate swaps were designated as cash flow hedges and involved the receipt of variable amounts from a counterparty in exchange for the Bank making fixed-rate payments over the life of the interest rate swap agreements.

At December 31, 2024 and September 30, 2024, the interest rate swaps were in a gain position with a total fair value of $ 4.3 million and $ 2.1 million, respectively, which was reported in other assets on the consolidated balance sheet.

During the three months ended December 31, 2024 and December 31, 2023, $ 698 thousand and $ 1.9 million, respectively, was reclassified from AOCI as a decrease to interest expense.

At December 31, 2024, the Company estimated that $ 2.1 million of interest expense associated with the interest rate swaps would be reclassified from AOCI as a decrease to interest expense on FHLB borrowings during the next 12 months.

At March 31, 2025 and September 30, 2024, the interest rate swaps were in a gain position with a total fair value of $ 2.7 million and $ 2.1 million, respectively, which was reported in other assets on the consolidated balance sheet.

During the three and six months ended March 31, 2025, $ 554 thousand and $ 1.3 million, respectively, was reclassified from AOCI as a decrease to interest expense.

During the three and six months ended March 31, 2024, $ 1.7 million and $ 3.6 million, respectively, was reclassified from AOCI as a decrease to interest expense.

At March 31, 2025, the Company estimated that $ 1.5 million of interest expense associated with the interest rate swaps would be reclassified from AOCI as a decrease to interest expense on FHLB borrowings during the next 12 months.

The Bank has minimum collateral posting thresholds with its derivative counterparties and posts collateral on a daily basis.

The Bank held cash collateral of $ 4.7 million and $ 2.1 million at December 31, 2024 and September 30, 2024, respectively.

At December 31, 2024 and September 30, 2024, the Company had a net operating loss deferred income tax asset of $ 26.4 million and $ 30.5 million, respectively.

The gross federal and state net operating loss amount at December 31, 2024 was $ 109.0 million and will carry forward indefinitely .

Additionally, the Company had a $ 15.5 million and $ 12.8 million deferred tax asset related to the Bank's low income housing tax credits as of December 31, 2024 and September 30, 2024, respectively, as the credits are not currently able to be utilized due to income tax return income limitations.

Federal tax credits carryforward for 20 years.

The Bank held cash collateral of $ 3.0 million and $ 2.1 million at March 31, 2025 and September 30, 2024, respectively.

In April 2025, the Bank prepaid fixed-rate FHLB advances totaling $ 200.0 million with a weighted average contractual interest rate of 4.70 % and a weighted average remaining term of 0.6 years, and replaced these advances with fixed-rate FHLB advances totaling $ 200.0 million with a weighted average contractual interest rate of 3.83 % and a weighted average term of 2.5 years.

The Bank paid penalties of $ 547 thousand to FHLB as a result of prepaying these advances.

The prepayment penalties will be recognized in interest expense over the life of the new FHLB advances.

The weighted average effective interest rate of the new advances was 3.93 %.

At March 31, 2025 and September 30, 2024, the Company had a net operating loss deferred income tax asset of $ 23.6 million and $ 30.5 million, respectively.

The gross federal and state net operating loss amount at March 31, 2025 was $ 97.0 million, which will carry forward indefinitely .

The net operating loss will be applied to the Company's taxable income, subject to federal and state regulations regarding net operation loss usage limitations, until such time as it is fully utilized.

Additionally, the Company had a $ 17.1 million and $ 12.8 million deferred tax asset related to the Bank's low income housing tax credits as of March 31, 2025 and September 30, 2024, respectively.

These credits are not currently able to be utilized due to income tax return income limitations.

Federal tax credits carry forward for 20 years.

The Company assesses the available positive and negative evidence surrounding the recoverability of its deferred tax assets and applies its judgment in estimating the amount of the valuation allowance necessary under the circumstances.

At December 31, 2024 and September 30, 2024, the Company had a valuation allowance of $ 33 thousand and $ 27 thousand, respectively, related to the net operating losses generated by the Company's consolidated Kansas corporate income tax return as management believes there will not be sufficient taxable income to fully utilize these deferred tax assets before they begin to expire in 2028 and thereafter.

For this reason, a valuation allowance was recorded for the related amounts at December 31, 2024 and September 30, 2024.

At March 31, 2025 and September 30, 2024, the Company had a valuation allowance of $ 33 thousand and $ 27 thousand, respectively, related to the net operating losses generated by the Company's consolidated Kansas corporate income tax return as management believes there will not be sufficient taxable income to fully utilize these deferred tax assets before they begin to expire in 2028 and thereafter.

For this reason, a valuation allowance was recorded for the related amounts at March 31, 2025 and September 30, 2024.

No additional valuation allowances were recorded for the Company's other deferred tax assets as management believes it is more likely than not that these amounts will be realized through the reversal of the Company's existing taxable temporary differences and projected future taxable income.

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If the price provided by the independent source varies by more than a predetermined percentage from the price received from the third-party pricing service, then the variance is researched by management.

The Company did not have to adjust prices obtained from the third-party pricing service when determining the fair value of its securities during the three months ended December 31, 2024 or during fiscal year 2024.

The Company did not have to adjust prices obtained from the third-party pricing service when determining the fair value of its securities during the six months ended March 31, 2025 or during fiscal year 2024.

The Company's major security types, based on the nature and risks of the securities, are:

10 unchanged sentences

On a quarterly basis, management corroborates the estimated fair values by internally calculating the estimated fair value using a discounted cash flow analysis with independent observable market-based inputs from a third party.

No adjustments were made to the estimated fair values obtained from the counterparty during the three months ended December 31, 2024 or during fiscal year 2024.

No adjustments were made to the estimated fair values obtained from the counterparty during the six months ended March 31, 2025 or during fiscal year 2024.

The following tables provide the level of valuation assumption used to determine the carrying value of the Company's financial instruments measured at fair value on a recurring basis at the dates presented.

The Company did no t have any Level 3 financial instruments measured at fair value on a recurring basis at December 31, 2024 or September 30, 2024.

December 31, 2024

The Company did no t have any Level 3 financial instruments measured at fair value on a recurring basis at March 31, 2025 or September 30, 2024.

March 31, 2025

Quoted Prices Significant Significant

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Those collateral dependent assets that are evaluated on an individual basis are considered financial assets measured at fair value on a non-recurring basis.

The fair value of collateral dependent loans/loans individually evaluated for loss on a non-recurring basis during the three months ended December 31, 2024 and 2023 that were still held in the portfolio as of December 31, 2024 and 2023 was $ 43.6 million and $ 1.1 million, respectively.

The fair value of collateral dependent loans/loans individually evaluated for loss on a non-recurring basis during the six months ended March 31, 2025 and 2024 that were still held in the portfolio as of March 31, 2025 and 2024 was $ 50.2 million and $ 1.2 million, respectively.

Fair values of collateral dependent loans/loans individually evaluated for loss cannot be determined with precision and may not be realized in an actual sale or immediate settlement of the loan and, as such, are classified as Level 3.

4 unchanged sentences

Adjustments to appraised or book values are generally based on assumptions not observable in the marketplace.

The primary significant unobservable inputs for commercial loans individually evaluated during the three months ended December 31, 2024 and December 31, 2023 were downward adjustments to the book value of the collateral for lack of marketability.

During the three months ended December 31, 2024, the adjustments ranged from 10 % to 99 %, with a weighted average of 21 %.

During the three months ended December 31, 2023, the adjustments ranged from 5 % to 100 %, with a weighted average of 17 %.

The primary significant unobservable inputs for commercial loans individually evaluated during the six months ended March 31, 2025 and March 31, 2024 were downward adjustments to the book value of the collateral for lack of marketability.

During the six months ended March 31, 2025, the adjustments ranged from 10 % to 99 %, with a weighted average of 22 %.

During the six months ended March 31, 2024, the adjustments ranged from 5 % to 100 %, with a weighted average of 16 %.

The basis utilized in calculating the weighted averages for these adjustments was the original unadjusted value of each collateral item.

3 unchanged sentences

The primary significant unobservable input for one- to four-family OREO was the appraisal or listing price.

There was no one- to four-family OREO measured on a non-recurring basis during the three months ended December 31, 2024.

The fair value of one- to four-family OREO measured on a non-recurring basis during the three months ended December 31, 2023 was $ 219 thousand.

The carrying value of the properties equaled the fair value of the properties at December 31, 2023.

There was no one- to four-family OREO measured on a non-recurring basis during the six months ended March 31, 2025.

The fair value of one- to four-family OREO measured on a non-recurring basis during the six months ended March 31, 2024 was $ 67 thousand.

The carrying value of the properties equaled the fair value of the properties at March 31, 2024.

For commercial OREO, if the most recent appraisal or book value of the collateral does not reflect current market conditions due to the passage of time and/or other factors, management will adjust the existing appraised or book value based on knowledge of local market conditions, recent transactions, and estimated selling costs, if applicable.

2 unchanged sentences

Fair values of foreclosed property cannot be determined with precision and may not be realized in an actual sale of the property and, as such, are classified as Level 3.

There was no commercial OREO measured on a non-recurring basis during the three months ended December 31, 2024 and 2023.

There was no commercial OREO measured on a non-recurring basis during the six months ended March 31, 2025 and 2024.

Fair Value Disclosures - The Company estimated fair value amounts using available market information and a variety of valuation methodologies as of the dates presented.

2 unchanged sentences

The carrying amounts and estimated fair values of the Company's financial instruments by fair value hierarchy, at the dates presented, were as follows:

December 31, 2024

March 31, 2025

Carrying Estimated Fair Value

21 unchanged sentences

The following tables present the changes in the components of AOCI, net of tax, for the periods indicated.

For the Three Months Ended December 31, 2024

For the Three Months Ended March 31, 2025

Unrealized Unrealized

9 unchanged sentences

Ending balance $ 15,040 $ 2,012 17,052

For the Three Months Ended December 31, 2023

For the Six Months Ended March 31, 2025

Unrealized Unrealized

7 unchanged sentences

— ( 1,252 ) ( 1,252 )

Reclassification adjustment for gross gains on AFS securities included in net income, net of taxes of $ 383

Other comprehensive income (loss) ( 4,992 ) 417 ( 4,575 )

Ending balance $ 15,040 $ 2,012 $ 17,052

For the Three Months Ended March 31, 2024

Unrealized Unrealized

Gains (Losses) Gains (Losses)

on AFS on Cash Flow Total

Securities Hedges AOCI

(Dollars in thousands)

Beginning balance $ 14,251 $ 4,904 $ 19,155

Other comprehensive income (loss), before reclassifications ( 5,471 ) 2,521 ( 2,950 )

Amount reclassified from AOCI, net of taxes of $ 542

— ( 1,678 ) ( 1,678 )

1 unchanged sentence

Ending balance $ 8,780 $ 5,747 $ 14,527

For the Six Months Ended March 31, 2024

Unrealized Unrealized

Gains (Losses) Gains (Losses)

on AFS on Cash Flow Total

Securities Hedges AOCI

(Dollars in thousands)

Beginning balance $ ( 1,142 ) $ 9,842 $ 8,700

Other comprehensive income (loss), before reclassifications 11,110 ( 477 ) 10,633

Amount reclassified from AOCI, net of taxes of $ 1,168

— ( 3,618 ) ( 3,618 )

Reclassification adjustment for gross gains on AFS securities

included in net income, net of taxes of $ 383

( 1,188 ) — ( 1,188 )

Other comprehensive income (loss) 9,922 ( 4,095 ) 5,827

Ending balance $ 8,780 $ 5,747 $ 14,527

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 1. Financial Statements