Capitol Federal Financial, Inc. 10-Q

Item 1. Financial Statements CAPITOL FEDERAL FINANCIAL, INC. AND SUBSIDIARY CONSOLIDATED BALANCE SHEETS (Unaudited) (Dollars in thousands, except per share amounts) March 31, September 30, 2025 2024 ASSETS: Cash and cash equivalents (includes interest-earning deposits of $ 323,552 and $ 192,138 ) $ 340,389 $ 217,307 Available-for-sale ("AFS") securities, at estimated fair value (amortized cost of $ 941,585 and $ 829,852 ) 961,417 856,266 Loans receivable, net (allowance for credit losses ("ACL") of $ 23,970 and $ 23,035 ) 7,875,905 7,907,338 Federal Home Loan Bank Topeka ("FHLB") stock, at cost 99,334 101,175 Premises and equipment, net 89,081 91,463 Income taxes receivable, net 1,397 359 Deferred income tax assets, net 21,864 21,978 Other assets 328,797 331,722 TOTAL ASSETS $ 9,718,184 $ 9,527,608 LIABILITIES: Deposits $ 6,372,545 $ 6,129,982 Borrowings 2,142,956 2,179,564 Advances by borrowers 54,860 61,801 Other liabilities 110,713 123,991 Total liabilities 8,681,074 8,495,338 STOCKHOLDERS' EQUITY: Preferred stock, $ .01 par value; 100,000,000 shares authorized, no shares issued or outstanding — — Common stock, $ .01 par value; 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 1,328 1,327 Additional paid-in capital 1,146,733 1,146,851 Unearned compensation, Employee Stock Ownership Plan ("ESOP") ( 25,606 ) ( 26,431 ) Accumulated deficit ( 102,397 ) ( 111,104 ) Accumulated other comprehensive income ("AOCI"), net of tax 17,052 21,627 Total stockholders' equity 1,037,110 1,032,270 TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 9,718,184 $ 9,527,608 See accompanying notes to consolidated financial statements. 3 CAPITOL FEDERAL FINANCIAL, INC. AND SUBSIDIARY CONSOLIDATED STATEMENTS OF INCOME (Unaudited) (Dollars in thousands, except per share amounts) For the Three Months Ended For the Six Months Ended March 31, March 31, 2025 2024 2025 2024 INTEREST AND DIVIDEND INCOME: Loans receivable $ 80,867 $ 76,122 $ 162,261 $ 152,063 Mortgage-backed securities ("MBS") 11,264 7,794 22,288 13,653 FHLB stock 2,285 2,528 4,637 5,114 Cash and cash equivalents 2,729 4,513 4,600 9,291 Investment securities 1,030 2,332 2,011 4,860 Total interest and dividend income 98,175 93,289 195,797 184,981 INTEREST EXPENSE: Deposits 35,853 33,415 73,198 65,858 Borrowings 18,482 18,554 36,529 38,210 Total interest expense 54,335 51,969 109,727 104,068 NET INTEREST INCOME 43,840 41,320 86,070 80,913 PROVISION FOR CREDIT LOSSES — 301 677 424 NET INTEREST INCOME AFTER PROVISION FOR CREDIT LOSSES 43,840 41,019 85,393 80,489 NON-INTEREST INCOME: Deposit service fees 2,596 2,451 5,303 5,026 Insurance commissions 927 735 1,703 1,598 Net loss from securities transactions — — — ( 13,345 ) Other non-interest income 1,430 1,457 2,640 2,470 Total non-interest income 4,953 4,643 9,646 ( 4,251 ) NON-INTEREST EXPENSE: Salaries and employee benefits 14,938 12,887 29,170 25,879 Information technology and related expense 4,924 4,954 9,474 10,323 Occupancy, net 3,502 3,481 6,835 6,853 Regulatory and outside services 1,469 1,380 2,582 3,023 Federal insurance premium 1,095 1,727 2,133 3,587 Advertising and promotional 760 1,271 1,582 2,259 Deposit and loan transaction costs 879 867 1,470 1,409 Office supplies and related expense 437 419 836 780 Other non-interest expense 1,536 1,459 2,606 2,840 Total non-interest expense 29,540 28,445 56,688 56,953 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 Basic earnings per share ("EPS") $ 0.12 $ 0.11 $ 0.24 $ 0.12 Diluted EPS $ 0.12 $ 0.11 $ 0.24 $ 0.12 Basic weighted average common shares 130,025,900 130,536,246 129,999,144 131,449,744 Diluted weighted average common shares 130,025,900 130,536,246 129,999,144 131,449,744 See accompanying notes to consolidated financial statements. 4 CAPITOL FEDERAL FINANCIAL, INC. AND SUBSIDIARY CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) (Dollars in thousands) 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 $( 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 , $ 0 , $ 0 , and $ 383 — — — ( 1,188 ) 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 See accompanying notes to consolidated financial statements. 5 CAPITOL FEDERAL FINANCIAL, INC. AND SUBSIDIARY CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Unaudited) (Dollars in thousands, except per share amounts) For the Six Months Ended March 31, 2025 Additional Unearned Total Common Paid-In Compensation Accumulated Stockholders' Stock Capital ESOP Deficit AOCI Equity Balance at September 30, 2024 $ 1,327 $ 1,146,851 $ ( 26,431 ) $ ( 111,104 ) $ 21,627 $ 1,032,270 Net income 15,431 15,431 Other comprehensive loss, net of tax ( 10,065 ) ( 10,065 ) ESOP activity ( 149 ) 412 263 Restricted stock activity, net 1 ( 1 ) — Stock-based compensation 101 101 Cash dividends to stockholders ($ 0.085 per share) ( 11,061 ) ( 11,061 ) Balance at December 31, 2024 $ 1,328 $ 1,146,802 $ ( 26,019 ) $ ( 106,734 ) $ 11,562 $ 1,026,939 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 Common Paid-In Compensation Accumulated Stockholders' Stock Capital ESOP Deficit AOCI Equity Balance at September 30, 2023 $ 1,359 $ 1,166,643 $ ( 28,083 ) $ ( 104,565 ) $ 8,700 $ 1,044,054 Net income 2,543 2,543 Cumulative effect of adopting Accounting Standards Update ("ASU") 2022-02, net of tax ( 27 ) ( 27 ) Other comprehensive income, net of tax 10,455 10,455 ESOP activity ( 190 ) 412 222 Restricted stock activity, net ( 6 ) ( 6 ) Stock-based compensation 87 87 Repurchase of common stock ( 20 ) ( 11,879 ) ( 11,899 ) Cash dividends to stockholders ($ 0.085 per share) ( 11,308 ) ( 11,308 ) 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. 6 CAPITOL FEDERAL FINANCIAL, INC. AND SUBSIDIARY CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) (Dollars in thousands) For the Six Months Ended March 31, 2025 2024 CASH FLOWS FROM OPERATING ACTIVITIES: Net income $ 30,830 $ 16,305 Adjustments to reconcile net income to net cash provided by operating activities: FHLB stock dividends ( 4,637 ) ( 5,114 ) Provision for credit losses 677 424 Originations of loans receivable held-for-sale ("LHFS") ( 407 ) ( 425 ) Proceeds from sales of LHFS 334 431 Amortization and accretion of premiums and discounts on securities ( 1,662 ) ( 5,741 ) Depreciation and amortization of premises and equipment 3,662 4,078 Amortization of intangible assets 274 379 Amortization of deferred amounts related to FHLB advances, net 725 762 Common stock committed to be released for allocation - ESOP 504 467 Stock-based compensation 204 169 Net loss from securities transactions — 13,345 Changes in: Unrestricted cash collateral from derivative counterparties, net 870 ( 5,800 ) Other assets, net 2,848 7,076 Income taxes receivable, net ( 1,040 ) 5,875 Deferred income tax assets, net 1,572 ( 7,656 ) Other liabilities ( 13,641 ) ( 9,407 ) Net cash provided by operating activities 21,113 15,168 CASH FLOWS FROM INVESTING ACTIVITIES: Purchase of AFS securities ( 209,458 ) ( 951,527 ) Proceeds from calls, maturities and principal reductions of AFS securities 99,387 255,533 Proceeds from sale of AFS securities — 1,272,512 Proceeds from the redemption of FHLB stock 6,478 6,758 Net change in loans receivable 30,507 92,101 Purchase of premises and equipment ( 1,908 ) ( 2,732 ) 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 (Continued) 7 CAPITOL FEDERAL FINANCIAL, INC. AND SUBSIDIARY CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) (Dollars in thousands) For the Six Months Ended March 31, 2025 2024 CASH FLOWS FROM FINANCING ACTIVITIES: Cash dividends paid ( 22,123 ) ( 22,435 ) Net change in deposits 242,563 90,491 Proceeds from borrowings 350,100 225,100 Repayments on borrowings ( 387,456 ) ( 754,942 ) Change in advances by borrowers ( 6,941 ) ( 10,295 ) Repurchase of common stock — ( 19,449 ) Net cash provided by (used in) financing activities 176,143 ( 491,530 ) NET INCREASE IN CASH AND CASH EQUIVALENTS 123,082 197,908 CASH AND CASH EQUIVALENTS: Beginning of period 217,307 245,605 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. (Concluded) 8 Notes to Consolidated Financial Statements (Unaudited) 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation - The consolidated financial statements include the accounts of Capitol Federal Financial, Inc.® (the "Company") and its wholly-owned subsidiary, Capitol Federal Savings Bank (the "Bank"). The Bank has two wholly-owned subsidiaries, Capitol Funds, Inc. and Capital City Investments, Inc. Capitol Funds, Inc. has a wholly-owned subsidiary, Capitol Federal Mortgage Reinsurance Company. Capital City Investments, Inc. is a real estate and investment holding company. All intercompany accounts and transactions have been eliminated in consolidation. The consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP") for interim financial information and with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring adjustments) considered necessary for a fair presentation have been included. These statements should be read in conjunction with the consolidated financial statements and notes thereto included in the Company's Annual Report on Form 10-K for the fiscal year ended September 30, 2024, filed with the Securities and Exchange Commission ("SEC"). Interim results are not necessarily indicative of results for a full year. Net Presentation of Cash Flows Related to Borrowings - At times, the Bank enters into FHLB advances with contractual maturities of 90 days or less. Cash flows related to these advances are reported on a net basis in the consolidated statements of cash flows. Recent Accounting Pronouncements - In October 2023, the Financial Accounting Standards Board ("FASB") issued ASU 2023-06, Disclosure Improvements - Codification Amendments in Response to the SEC's Disclosure Update and Simplification Initiative. This ASU incorporates a variety of Topics into the FASB Accounting Standards Codification (the "Codification") that are currently included in SEC Regulations S-X and S-K. The ASU is intended to align the accounting standards of GAAP with SEC Regulations S-X and S-K. Each amendment in the ASU will only become effective for the Company if the SEC removes the related disclosure or presentation requirement from its existing regulations by June 30, 2027. This may result in disclosures currently presented outside of the Company's financial statements being relocated to the Company's financial statements. The amendments will be applied prospectively by the Company. The ASU is not expected to have a material impact on the Company's disclosures as the Company is currently subject to SEC Regulations S-X and S-K. In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280) - Improvements to Reportable Segment Disclosures . This ASU requires enhanced disclosures of segment information for all public entities, including those that have a single reportable segment, primarily in the area of segment revenues and expenses. Entities that have a single reportable segment, like the Company, will be required to provide all the disclosures required by this ASU and all existing segment disclosures required by Accounting Standards Codification ("ASC") 280, Segment Reporting . This ASU is effective for fiscal years beginning after December 15, 2023, which is the fiscal year ending September 30, 2025 for the Company, and interim periods within fiscal years beginning after December 15, 2024, which is the quarter ending December 31, 2025 for the Company. The Company is currently evaluating the effect this ASU will have on the Company's segment disclosures. In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740) - Improvements to Income Tax Disclosures . 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 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. In March 2024, the FASB issued ASU 2024-02, Codification Improvements - Amendments to Remove References to the Concepts Statements . 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 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. In November 2024, the FASB issued ASU 2024-03, Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures . This ASU requires additional expense disclosures by public entities in the notes to the financial statements. The ASU outlines the specific costs that are required to be disclosed, which include costs such as: purchases of inventory, employee compensation, depreciation, intangible asset amortization, selling costs, and depreciation, depletion, and amortization related to oil and gas production. It also requires qualitative descriptions of the amounts remaining in the relevant expense income statement captions that are not separately disaggregated quantitatively in the notes to the financial statements and the entity's definition of selling expenses. The disclosures are required for each interim and annual reporting period. The ASU is effective for fiscal years beginning after December 15, 2026, which is the fiscal year ending September 30, 2028 for the Company. In January 2025, the FASB issued ASU 2025-1, Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures: Clarifying the Effective 9 Date. The FASB clarified the interim date reporting when an entity adopts ASU 2024-03. Per ASU 2025-01, ASU 2024-03 is effective for interim periods within fiscal years beginning after December 15, 2027, which is the quarter ending December 31, 2028 for the Company. The Company is currently evaluating the effect this ASU will have on the Company's expense disclosures in the notes to the consolidated financial statements. 2. EARNINGS PER SHARE Shares acquired by the ESOP are not included in basic average shares outstanding until the shares are committed for allocation or vested to an employee's individual account. Unvested shares awarded pursuant to the Company's restricted stock benefit plans are treated as participating securities in the computation of EPS pursuant to the two-class method as they contain nonforfeitable rights to dividends. 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 Six Months Ended March 31, March 31, 2025 2024 2025 2024 (Dollars in thousands, except per share amounts) Net income $ 15,399 $ 13,762 $ 30,830 $ 16,305 Income allocated to participating securities ( 18 ) ( 10 ) ( 36 ) ( 12 ) Net income available to common stockholders $ 15,381 $ 13,752 $ 30,794 $ 16,293 Total basic average common shares outstanding 130,025,900 130,536,246 129,999,144 131,449,744 Effect of dilutive stock options — — — — Total diluted average common shares outstanding 130,025,900 130,536,246 129,999,144 131,449,744 Net EPS: Basic $ 0.12 $ 0.11 $ 0.24 $ 0.12 Diluted $ 0.12 $ 0.11 $ 0.24 $ 0.12 Antidilutive stock options, excluded from the diluted average common shares outstanding calculation 267,439 326,572 290,390 331,041 10 3. SECURITIES The following tables reflect the amortized cost, estimated fair value, and gross unrealized gains and losses of AFS securities at the dates presented. The majority of our AFS securities at both dates were government guaranteed or issued by a Government Sponsored Enterprise ("GSE"). March 31, 2025 Gross Gross Estimated Amortized Unrealized Unrealized Fair Cost Gains Losses Value (Dollars in thousands) MBS $ 867,585 $ 20,735 $ 565 $ 887,755 GSE debentures 70,000 39 41 69,998 Corporate bonds 4,000 — 336 3,664 $ 941,585 $ 20,774 $ 942 $ 961,417 September 30, 2024 Gross Gross Estimated Amortized Unrealized Unrealized Fair Cost Gains Losses Value (Dollars in thousands) MBS $ 756,775 $ 26,885 $ 87 $ 783,573 GSE debentures 69,077 228 — 69,305 Corporate bonds 4,000 — 612 3,388 $ 829,852 $ 27,113 $ 699 $ 856,266 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. March 31, 2025 Less Than 12 Months Equal to or Greater Than 12 Months Estimated Unrealized Estimated Unrealized Fair Value Losses Fair Value Losses (Dollars in thousands) MBS $ 80,720 $ 483 $ 10,145 $ 82 GSE debentures 24,959 41 — — Corporate bonds — — 3,664 336 $ 105,679 $ 524 $ 13,809 $ 418 September 30, 2024 Less Than 12 Months Equal to or Greater Than 12 Months Estimated Unrealized Estimated Unrealized Fair Value Losses Fair Value Losses (Dollars in thousands) MBS $ 10,997 $ 44 $ 2,919 $ 43 Corporate bonds — — 3,388 612 $ 10,997 $ 44 $ 6,307 $ 655 11 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 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. Additionally, management does not have the intent to sell any of the securities, and believes that it is more likely than not that the Company will not be required to sell the securities before the recovery of the remaining amortized cost, which could be at maturity. 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 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. In the case of MBS, borrowers on the underlying loans generally have the right to prepay their loans without penalty. For this reason, MBS are not included in the maturity category in the table below. Amortized Estimated Cost Fair Value (Dollars in thousands) Five years through ten years $ 74,000 $ 73,662 74,000 73,662 MBS 867,585 887,755 $ 941,585 $ 961,417 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 Six Months Ended March 31, March 31, 2025 2024 2025 2024 (Dollars in thousands) Taxable $ 1,030 $ 2,332 $ 2,011 $ 4,858 Non-taxable — — — 2 $ 1,030 $ 2,332 $ 2,011 $ 4,860 The following table summarizes the carrying value of securities pledged as collateral for the obligations indicated below as of the dates presented. March 31, 2025 September 30, 2024 (Dollars in thousands) Federal Reserve Bank of Kansas City ("FRB of Kansas City") borrowings $ 99,901 $ 111,281 Public unit deposits 88,854 108,748 $ 188,755 $ 220,029 . The Bank sold $ 1.30 billion of AFS securities during fiscal year 2024. 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 fiscal year 2024. All other dispositions of securities during the current and prior year periods were the result of principal repayments, calls, or maturities. 12 4. LOANS RECEIVABLE AND ALLOWANCE FOR CREDIT LOSSES Loans receivable, net at the dates presented is summarized as follows: March 31, 2025 September 30, 2024 (Dollars in thousands) One- to four-family: Originated $ 3,863,882 $ 3,941,952 Correspondent purchased 2,117,232 2,212,587 Bulk purchased 119,914 127,161 Construction 16,782 22,970 Total 6,117,810 6,304,670 Commercial: Commercial real estate 1,340,539 1,191,624 Commercial and industrial 135,884 129,678 Construction 191,904 187,676 Total 1,668,327 1,508,978 Consumer: Home equity 99,049 99,988 Other 9,434 9,615 Total 108,483 109,603 Total loans receivable 7,894,620 7,923,251 Less: ACL 23,970 23,035 Deferred loan fees/discounts 30,276 30,336 Premiums/deferred costs ( 35,531 ) ( 37,458 ) $ 7,875,905 $ 7,907,338 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. Properties securing one- to four-family loans are appraised by either staff appraisers or fee appraisers, both of which are independent of the loan origination function. The underwriting standards for loans purchased from correspondent lenders were generally similar to the Bank's internal underwriting standards. The underwriting of loans purchased from correspondent lenders was performed by the Bank's underwriters on a loan-by-loan basis. The Bank also originates owner-occupied construction-to-permanent loans secured by one- to four-family residential real estate. Construction draw requests and the supporting documentation are reviewed and approved by designated personnel. The Bank also performs regular documented inspections of the construction project to ensure the funds are being used for the intended purpose and the project is being completed according to the plans and specifications provided. Commercial loans - The Bank's commercial loan portfolio includes loans originated by the Bank or in participation with a lead bank. For commercial participation loans, the Bank performs the same underwriting procedures as if the loan was originated by the Bank. 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- 13 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. For commercial construction loans, LTV ratios generally do not exceed 80 % of the projected appraised value of the property securing the loans and the minimum DSCR is generally 1.15 x, but it applies to the projected cash flows, and the borrower must have successful experience with the construction and operation of properties similar to the subject property. Appraisals on properties securing these loans are performed by independent state certified fee appraisers. For construction loans, guaranties are typically required during the period of construction. After construction is complete, for select experienced borrowers that have a strong DSCR and low LTV ratio, the guaranty may be reduced or phased out when the property meets certain performance metrics. Additionally, the Bank generally requires the borrower to contribute equity at the start of a project and prior to any Bank funding. The Bank's commercial and industrial loans are generally made to borrowers and secured by assets located in the Bank's market areas and are underwritten on the basis of the borrower's ability to service the debt from income. Working capital loans are primarily collateralized by short-term assets whereas term loans are primarily collateralized by longer-term assets. In general, commercial and industrial loans involve different types of credit risk than commercial real estate loans due to the nature of the loans and the type of collateral securing the loans. 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 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. The underwriting standards for consumer loans include a determination of an applicant's payment history on other debts and an assessment of an applicant's ability to meet existing obligations and payments on the proposed loan. Although creditworthiness of an applicant is a primary consideration, the underwriting process also includes a comparison of the value of the security in relation to the proposed loan amount. Credit Quality Indicators - Based on the Bank's lending emphasis and underwriting standards, management has segmented the loan portfolio into three segments: (1) one- to four-family; (2) consumer; and (3) commercial. These segments are further divided into classes for purposes of providing disaggregated credit quality information about the loan portfolio. The classes are: one- to four-family - originated, one- to four-family - correspondent purchased, one- to four-family - bulk purchased, consumer - home equity, consumer - other, commercial - commercial real estate, and commercial - commercial and industrial. One- to four-family construction loans are included in the originated class and commercial construction loans are included in the commercial real estate class. As part of the on-going monitoring of the credit quality of the Company's loan portfolio, management tracks certain credit quality indicators including trends related to loan classification and delinquency status. Loan Classification - In accordance with the Bank's asset classification policy, management regularly reviews the problem loans in the Bank's portfolio to determine whether any require classification. Loan classifications are defined as follows: • Special mention - These loans are performing loans on which known information about the collateral pledged or the possible credit problems of the borrower(s) have caused management to have doubts as to the ability of the borrower(s) to comply with present loan repayment terms and which may result in the future inclusion of such loans in the nonaccrual loan categories. • Substandard - A loan is considered substandard if it is inadequately protected by the current net worth and paying capacity of the obligor or of the collateral pledged, if any. Substandard loans include those characterized by the distinct possibility the Bank will sustain some loss if the deficiencies are not corrected. • Doubtful - Loans classified as doubtful have all the weaknesses inherent in those classified as substandard, with the added characteristic that the weaknesses present make collection or liquidation in full on the basis of currently existing facts and conditions and values highly questionable and improbable. • Loss - Loans classified as loss are considered uncollectible and of such little value that their continuance as assets on the books is not warranted. 14 The following tables set forth, as of the dates indicated, the amortized cost of loans by class of financing receivable, year of origination or most recent credit decision, and loan classification. Amortized cost is the amount of unpaid principal, net of undisbursed loan funds, unamortized premiums and discounts, and deferred fees and costs. All revolving lines of credit and revolving lines of credit converted to term loans are presented separately, regardless of origination year. Loans classified as doubtful or loss are individually evaluated for loss. 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 Revolving Line of Current Fiscal Fiscal Fiscal Fiscal Revolving Credit Fiscal Year Year Year Year Prior Line of Converted Year 2024 2023 2022 2021 Years Credit to Term Total (Dollars in thousands) One- to four-family: Originated Pass $ 108,626 $ 238,584 $ 311,276 $ 556,375 $ 777,713 $ 1,852,621 $ — $ — $ 3,845,195 Special Mention — — 1,161 1,005 843 5,966 — — 8,975 Substandard — — 482 84 214 11,393 — — 12,173 Correspondent purchased Pass — 786 313,915 465,188 551,402 802,496 — — 2,133,787 Special Mention — — 986 513 371 948 — — 2,818 Substandard — — 275 404 538 4,398 — — 5,615 Bulk purchased Pass — — — — — 117,765 — — 117,765 Special Mention — — — — — — — — — Substandard — — — — — 2,552 — — 2,552 108,626 239,370 628,095 1,023,569 1,331,081 2,798,139 — — 6,128,880 Commercial: Commercial real estate Pass 250,522 312,139 404,683 227,779 120,081 149,210 7,591 — 1,472,005 Special Mention 8,270 — — — — 82 — — 8,352 Substandard — 142 42,008 — 111 3,650 50 — 45,961 Commercial and industrial Pass 13,600 38,513 28,892 15,581 6,590 2,371 28,390 — 133,937 Special Mention 95 190 30 58 — — 526 — 899 Substandard — 227 — 107 — 82 638 — 1,054 272,487 351,211 475,613 243,525 126,782 155,395 37,195 — 1,662,208 Consumer: Home equity Pass 2,988 6,107 4,047 4,143 1,337 2,483 69,870 7,760 98,735 Special Mention — 35 20 — — — — 107 162 Substandard — — — — — 9 340 107 456 Other Pass 2,732 2,809 1,859 1,175 267 84 398 — 9,324 Special Mention — — — — — — — — — Substandard — 50 14 43 — 2 1 — 110 5,720 9,001 5,940 5,361 1,604 2,578 70,609 7,974 108,787 Total $ 386,833 $ 599,582 $ 1,109,648 $ 1,272,455 $ 1,459,467 $ 2,956,112 $ 107,804 $ 7,974 $ 7,899,875 15 September 30, 2024 Revolving Line of Fiscal Fiscal Fiscal Fiscal Fiscal Revolving Credit Year Year Year Year Year Prior Line of Converted 2024 2023 2022 2021 2020 Years Credit to Term Total (Dollars in thousands) One- to four-family: Originated Pass $ 241,765 $ 325,492 $ 578,275 $ 809,643 $ 521,647 $ 1,447,237 $ — $ — $ 3,924,059 Special Mention — 295 1,229 1,982 772 9,565 — — 13,843 Substandard — 658 49 468 1,398 9,571 — — 12,144 Correspondent purchased Pass 798 325,384 482,103 570,970 225,650 623,496 — — 2,228,401 Special Mention — 993 659 658 398 977 — — 3,685 Substandard — — 1,662 265 — 5,130 — — 7,057 Bulk purchased Pass — — — — — 124,076 — — 124,076 Special Mention — — — — — — — — — Substandard — — — — — 3,514 — — 3,514 242,563 652,822 1,063,977 1,383,986 749,865 2,223,566 — — 6,316,779 Commercial: Commercial real estate Pass 326,158 400,649 284,493 135,935 74,174 110,309 23,865 — 1,355,583 Special Mention 12,440 2,543 — — 92 1,094 — — 16,169 Substandard 142 827 — — 647 636 50 — 2,302 Commercial and industrial Pass 46,335 32,112 18,131 8,075 1,350 2,051 20,876 — 128,930 Special Mention 401 — — — — — 12 — 413 Substandard 227 — — — — 82 26 — 335 385,703 436,131 302,624 144,010 76,263 114,172 44,829 — 1,503,732 Consumer: Home equity Pass 7,331 4,377 4,575 1,437 814 2,127 73,020 5,895 99,576 Special Mention — — — — — — 45 281 326 Substandard — 20 — — — 24 120 181 345 Other Pass 4,112 2,737 1,697 385 101 95 346 — 9,473 Special Mention — — — — — — — — — Substandard 80 14 44 — 4 — — — 142 11,523 7,148 6,316 1,822 919 2,246 73,531 6,357 109,862 Total $ 639,789 $ 1,096,101 $ 1,372,917 $ 1,529,818 $ 827,047 $ 2,339,984 $ 118,360 $ 6,357 $ 7,930,373 16 Delinquency Status - The following tables set forth, as of the dates indicated, the amortized cost of current loans, loans 30 to 89 days delinquent, and loans 90 or more days delinquent or in foreclosure ("90+/FC"), by class of financing receivable and year of origination or most recent credit decision as of the dates indicated. All revolving lines of credit and revolving lines of credit converted to term loans are presented separately, regardless of origination year. March 31, 2025 Revolving Line of Current Fiscal Fiscal Fiscal Fiscal Revolving Credit Fiscal Year Year Year Year Prior Line of Converted Year 2024 2023 2022 2021 Years Credit to Term Total (Dollars in thousands) One- to four-family: Originated Current $ 108,626 $ 238,270 $ 312,625 $ 556,427 $ 777,828 $ 1,861,709 $ — $ — $ 3,855,485 30-89 — 314 294 953 418 6,073 — — 8,052 90+/FC — — — 84 524 2,198 — — 2,806 Correspondent purchased Current — 786 314,901 465,701 551,531 804,342 — — 2,137,261 30-89 — — — 241 515 2,209 — — 2,965 90+/FC — — 275 163 265 1,291 — — 1,994 Bulk purchased Current — — — — — 119,513 — — 119,513 30-89 — — — — — 181 — — 181 90+/FC — — — — — 623 — — 623 108,626 239,370 628,095 1,023,569 1,331,081 2,798,139 — — 6,128,880 Commercial: Commercial real estate Current 258,792 312,139 446,201 227,779 120,081 147,948 7,591 — 1,520,531 30-89 — — — — — 2,471 — — 2,471 90+/FC — 142 490 — 111 2,523 50 — 3,316 Commercial and industrial Current 13,695 38,704 28,922 15,746 6,590 2,371 29,137 — 135,165 30-89 — — — — — — 348 — 348 90+/FC — 226 — — — 82 69 — 377 272,487 351,211 475,613 243,525 126,782 155,395 37,195 — 1,662,208 Consumer: Home equity Current 2,988 6,142 4,052 4,129 1,337 2,336 69,745 7,862 98,591 30-89 — — 15 14 — 153 155 24 361 90+/FC — — — — — 3 310 88 401 Other Current 2,721 2,801 1,858 1,210 209 84 397 — 9,280 30-89 11 8 1 1 58 — 2 — 81 90+/FC — 50 14 7 — 2 — — 73 5,720 9,001 5,940 5,361 1,604 2,578 70,609 7,974 108,787 Total $ 386,833 $ 599,582 $ 1,109,648 $ 1,272,455 $ 1,459,467 $ 2,956,112 $ 107,804 $ 7,974 $ 7,899,875 17 September 30, 2024 Revolving Line of Fiscal Fiscal Fiscal Fiscal Fiscal Revolving Credit Year Year Year Year Year Prior Line of Converted 2024 2023 2022 2021 2020 Years Credit to Term Total (Dollars in thousands) One- to four-family: Originated Current $ 241,765 $ 326,211 $ 578,430 $ 811,455 $ 521,550 $ 1,459,500 $ — $ — $ 3,938,911 30-89 — 64 1,074 638 1,666 5,422 — — 8,864 90+/FC — 170 49 — 601 1,451 — — 2,271 Correspondent purchased Current 798 326,377 482,598 571,182 226,048 624,961 — — 2,231,964 30-89 — — 164 446 — 2,479 — — 3,089 90+/FC — — 1,662 265 — 2,163 — — 4,090 Bulk purchased Current — — — — — 125,982 — — 125,982 30-89 — — — — — 69 — — 69 90+/FC — — — — — 1,539 — — 1,539 242,563 652,822 1,063,977 1,383,986 749,865 2,223,566 — — 6,316,779 Commercial: Commercial real estate Current 338,511 403,193 284,493 135,932 74,266 110,448 23,055 — 1,369,898 30-89 229 807 — 3 — 1,094 860 — 2,993 90+/FC — 19 — — 647 497 — — 1,163 Commercial and industrial Current 46,736 32,112 17,990 8,052 1,350 2,051 20,914 — 129,205 30-89 227 — 141 23 — — — — 391 90+/FC — — — — — 82 — — 82 385,703 436,131 302,624 144,010 76,263 114,172 44,829 — 1,503,732 Consumer: Home equity Current 7,331 4,378 4,540 1,437 814 2,133 72,721 6,084 99,438 30-89 — — 35 — — — 349 87 471 90+/FC — 19 — — — 18 115 186 338 Other Current 4,109 2,728 1,641 327 101 95 344 — 9,345 30-89 3 9 100 58 — — 2 — 172 90+/FC 80 14 — — 4 — — — 98 11,523 7,148 6,316 1,822 919 2,246 73,531 6,357 109,862 Total $ 639,789 $ 1,096,101 $ 1,372,917 $ 1,529,818 $ 827,047 $ 2,339,984 $ 118,360 $ 6,357 $ 7,930,373 18 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 Six Months Ended March 31, 2025 Revolving Lines Current Fiscal Fiscal Fiscal Fiscal Revolving of Credit Fiscal Year Year Year Year Prior Lines of Converted to Year 2024 2023 2022 2021 Years Credit Term Total (Dollars in thousands) One- to four-family: Originated $ — $ — $ — $ — $ — $ — $ — $ — $ — Correspondent purchased — — — — — — — — — Bulk purchased — — — — — 113 — — 113 — — — — — 113 — — 113 Commercial: Commercial real estate — — — — — — — — — Commercial and industrial — — — — — — — — — — — — — — — — — — Consumer: Home equity 8 12 — — — — — — 20 Other — 1 4 — — — 2 — 7 8 13 4 — — — 2 — 27 Total $ 8 $ 13 $ 4 $ — $ — $ 113 $ 2 $ — $ 140 For the Six Months Ended March 31, 2024 Revolving Lines Fiscal Fiscal Fiscal Fiscal Fiscal Revolving of Credit Year Year Year Year Year Prior Lines of Converted to 2024 2023 2022 2021 2020 Years Credit Term Total (Dollars in thousands) One- to four-family: Originated $ — $ — $ — $ — $ — $ — $ — $ — $ — Correspondent purchased — — — — — — — — — Bulk purchased — — — — — — — — — — — — — — — — — — Commercial: Commercial real estate — — — — — 10 — — 10 Commercial and industrial — — — — — — — — — — — — — — 10 — — 10 Consumer: Home equity 2 1 — — — — — — 3 Other — 8 — — — 4 — — 12 2 9 — — — 4 — — 15 Total $ 2 $ 9 $ — $ — $ — $ 14 $ — $ — $ 25 19 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 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 30 to 89 Days Delinquent or Delinquent Current Amortized Delinquent in Foreclosure Loans Loans Cost (Dollars in thousands) One- to four-family: Originated $ 8,052 $ 2,806 $ 10,858 $ 3,855,485 $ 3,866,343 Correspondent purchased 2,965 1,994 4,959 2,137,261 2,142,220 Bulk purchased 181 623 804 119,513 120,317 Commercial: Commercial real estate 2,471 3,316 5,787 1,520,531 1,526,318 Commercial and industrial 348 377 725 135,165 135,890 Consumer: Home equity 361 401 762 98,591 99,353 Other 81 73 154 9,280 9,434 $ 14,459 $ 9,590 $ 24,049 $ 7,875,826 $ 7,899,875 September 30, 2024 90 or More Days Total Total 30 to 89 Days Delinquent or Delinquent Current Amortized Delinquent in Foreclosure Loans Loans Cost (Dollars in thousands) One- to four-family: Originated $ 8,864 $ 2,271 $ 11,135 $ 3,938,911 $ 3,950,046 Correspondent purchased 3,089 4,090 7,179 2,231,964 2,239,143 Bulk purchased 69 1,539 1,608 125,982 127,590 Commercial: Commercial real estate 2,993 1,163 4,156 1,369,898 1,374,054 Commercial and industrial 391 82 473 129,205 129,678 Consumer: Home equity 471 338 809 99,438 100,247 Other 172 98 270 9,345 9,615 $ 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 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 March 31, 2025. 20 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. March 31, 2025 September 30, 2024 Nonaccrual Loans Nonaccrual Loans with No ACL Nonaccrual Loans Nonaccrual Loans with No ACL (Dollars in thousands) One- to four-family: Originated $ 2,806 $ 982 $ 2,271 $ 764 Correspondent purchased 1,994 507 4,090 182 Bulk purchased 623 172 1,539 812 Commercial: Commercial real estate 4,443 3,849 1,495 901 Commercial and industrial 521 521 335 335 Consumer: Home equity 401 14 338 — Other 73 14 98 16 $ 10,861 $ 6,059 $ 10,166 $ 3,010 Loan Modifications - The following tables present the amortized cost basis of loans, as of the dates indicated, that were both experiencing financial difficulties and modified during the periods noted, by class of financing receivable and by type of modification. 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 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 March 31, 2025 Term Extension Total and Class of Payment Term Payment Financing Delay Extension Delay Total Receivable (Dollars in thousands) One- to four-family: Originated $ 236 $ 1,344 $ 651 $ 2,231 0.06 % Correspondent purchased — 513 187 700 0.03 Bulk purchased — — — — — 236 1,857 838 2,931 0.05 Commercial: Commercial real estate 8,189 — — 8,189 0.54 Commercial and industrial — 838 — 838 0.62 8,189 838 — 9,027 0.54 Consumer loans: Home equity — 35 — 35 0.03 Other — — — — — — 35 — 35 0.03 Total $ 8,425 $ 2,730 $ 838 $ 11,993 0.15 21 For the Six Months Ended March 31, 2025 Term Extension Total and Class of Payment Term Payment Financing Delay Extension Delay Total Receivable (Dollars in thousands) One- to four-family: Originated $ 353 $ 2,255 $ 816 $ 3,424 0.09 % Correspondent purchased — 513 187 700 0.03 Bulk purchased — — — — — 353 2,768 1,003 4,124 0.07 Commercial: Commercial real estate 8,189 — — 8,189 0.54 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 For the Three Months Ended March 31, 2024 For the Six Months Ended March 31, 2024 Term Term 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: 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 22 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 Delay Extension Delay Extension One- to four-family: Originated 8 months 20 months 8 months 18 months Correspondent purchased 9 months 34 months 9 months 34 months Commercial: Commercial real estate 9 months N/A 9 months N/A Commercial and industrial N/A 3 months N/A 3 months Consumer: 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: 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 Delinquent 90 or More Days Delinquent or in Foreclosure Total Delinquent Loans 30 to 89 Days Delinquent 90 or More Days Delinquent or in Foreclosure Total Delinquent Loans (Dollars in thousands) One- to four-family: Originated $ 567 $ 428 $ 995 $ 653 $ 76 $ 729 Correspondent purchased — — — — — — Bulk purchased — — — — — — Commercial: Commercial real estate — — — — — — Commercial and industrial — — — — — — Consumer loans: Home equity — 88 88 — — — Other — — — — — — $ 567 $ 516 $ 1,083 $ 653 $ 76 $ 729 23 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 Term Term Extension Extension and and Payment Term Payment Payment Term Payment Delay Extension Delay Total Delay Extension Delay Total (Dollars in thousands) One- to four-family: Originated $ 84 $ 193 $ 151 $ 428 $ 84 $ 193 $ 151 $ 428 Correspondent purchased — — 187 187 — — 428 428 Bulk purchased — — — — — — — — Commercial: Commercial real estate — — 192 192 — — 192 192 Commercial and industrial — — 227 227 — — 227 227 Consumer loans: Home equity 88 — — 88 88 — — 88 Other — — — — — — — — $ 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 Term Term Extension Extension and and Payment Payment Delay Delay (Dollars in thousands) One- to four-family: Originated $ 93 $ 93 Correspondent purchased — — Bulk purchased — — Commercial: Commercial real estate — — Commercial and industrial — — Consumer loans: Home equity — — Other — — $ 93 $ 93 24 Allowance for Credit Losses - The following tables summarizes ACL activity, by loan portfolio segment, for the periods presented. For the Three Months Ended March 31, 2025 One- to Four-Family Correspondent Bulk Originated Purchased Purchased Total Commercial Consumer Total (Dollars in thousands) Beginning balance $ 2,043 $ 1,583 $ 131 $ 3,757 $ 20,999 $ 241 $ 24,997 Charge-offs — — ( 113 ) ( 113 ) — ( 10 ) ( 123 ) Recoveries 2 — — 2 2 5 9 Provision for credit losses ( 50 ) ( 137 ) 103 ( 84 ) ( 825 ) ( 4 ) ( 913 ) Ending balance $ 1,995 $ 1,446 $ 121 $ 3,562 $ 20,176 $ 232 $ 23,970 For the Six Months Ended March 31, 2025 One- to Four-Family Correspondent Bulk Originated Purchased Purchased Total Commercial Consumer Total (Dollars in thousands) 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 Balance at October 1, 2023 2,152 2,973 221 5,346 18,182 251 23,779 Charge-offs — — — — ( 10 ) ( 15 ) ( 25 ) Recoveries 8 — — 8 1 15 24 Provision for credit losses ( 88 ) ( 180 ) ( 26 ) ( 294 ) 1,157 ( 7 ) 856 Ending balance $ 2,072 $ 2,793 $ 195 $ 5,060 $ 19,330 $ 244 $ 24,634 25 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 March 31, 2025. The key assumptions utilized in estimating the Company's ACL at March 31, 2025 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 March 31, 2025. 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 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 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 could 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 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 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) Beginning balance $ 4,725 $ 3,834 $ 6,003 $ 4,095 Adoption of ASU 2022-02 — — — 16 Provision for credit losses 913 ( 155 ) ( 365 ) ( 432 ) Ending balance $ 5,638 $ 3,679 $ 5,638 $ 3,679 26 5. BORROWED FUNDS 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 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 $ 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 %. 6. INCOME TAXES 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 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. 27 7. FAIR VALUE OF FINANCIAL INSTRUMENTS Fair Value Measurements - The Company uses fair value measurements to record fair value adjustments to certain financial instruments and to determine fair value disclosures in accordance with ASC 820 and ASC 825. The Company's AFS securities and interest rate swaps are recorded at fair value on a recurring basis. Additionally, from time to time, the Company may be required to record at fair value other financial instruments on a non-recurring basis, such as OREO and loans individually evaluated for impairment. These non-recurring fair value adjustments involve the application of lower of cost or fair value accounting or write-downs of individual financial instruments. The Company groups its financial instruments at fair value in three levels based on the markets in which the financial instruments are traded and the reliability of the assumptions used to determine fair value. These levels are: • Level 1 - Valuation is based upon quoted prices for identical instruments traded in active markets. • Level 2 - Valuation is based upon quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-based valuation techniques for which all significant assumptions are observable in the market. • Level 3 - Valuation is generated from model-based techniques that use significant assumptions not observable in the market. These unobservable assumptions reflect the Company's own estimates of assumptions that market participants would use in pricing the financial instrument. Valuation techniques include the use of option pricing models, discounted cash flow models, and similar techniques. The results cannot be determined with precision and may not be realized in an actual sale or immediate settlement of the financial instrument. The Company bases the fair value of its financial instruments on the price that would be received from the sale of an instrument in an orderly transaction between market participants at the measurement date under current market conditions. The Company maximizes the use of observable inputs and minimizes the use of unobservable inputs when measuring fair value. The following is a description of valuation methodologies used for financial instruments measured at fair value on a recurring basis. AFS Securities - The Company's AFS securities portfolio is carried at estimated fair value. The Company primarily uses prices obtained from third-party pricing services to determine the fair value of its securities. On a quarterly basis, management corroborates a sample of prices obtained from the third-party pricing service for Level 2 securities by comparing them to an independent source. 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 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: • MBS - The majority of these securities are issued by GSEs. Estimated fair values are based on a discounted cash flow method. Cash flows are determined based on prepayment projections of the underlying mortgages and are discounted using current market yields for benchmark securities. (Level 2) • GSE debentures - Estimated fair values are based on a discounted cash flow method. Cash flows are determined by taking any embedded options into consideration and are discounted using current market yields for similar securities. (Level 2) • Corporate Bonds and Municipal Bonds - Estimated fair values are based on a discounted cash flow method. Cash flows are determined by taking any embedded options into consideration and are discounted using current market yields for securities with similar credit profiles. (Level 2) Interest Rate Swaps - The Company's interest rate swaps are designated as cash flow hedges and are reported at fair value in other assets on the consolidated balance sheet if in a gain position and in other liabilities if in a loss position, with any unrealized gains and losses, net of taxes, reported as AOCI in stockholders' equity. See "Note 5. Borrowed Funds" for additional information. The estimated fair values of the interest rates swaps are obtained from the counterparty and are determined by a discounted cash flow analysis using observable market-based inputs. 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 six months ended March 31, 2025 or during fiscal year 2024. (Level 2) 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 March 31, 2025 or September 30, 2024. 28 March 31, 2025 Quoted Prices Significant Significant in Active Markets Other Observable Unobservable Carrying for Identical Assets Inputs Inputs Value (Level 1) (Level 2) (Level 3) (Dollars in thousands) Assets: AFS Securities: MBS $ 887,755 $ — $ 887,755 $ — GSE debentures 69,998 — 69,998 — Corporate bonds 3,664 — 3,664 — 961,417 — 961,417 — Interest rate swaps 2,652 — 2,652 — $ 964,069 $ — $ 964,069 $ — September 30, 2024 Quoted Prices Significant Significant in Active Markets Other Observable Unobservable Carrying for Identical Assets Inputs Inputs Value (Level 1) (Level 2) (Level 3) (Dollars in thousands) Assets: AFS Securities: MBS $ 783,573 $ — $ 783,573 $ — GSE debentures 69,305 — 69,305 — Corporate bonds 3,388 — 3,388 — 856,266 — 856,266 — Interest rate swaps 2,103 — 2,103 — $ 858,369 $ — $ 858,369 $ — The following is a description of valuation methodologies used for significant financial instruments measured at fair value on a non-recurring basis. The significant unobservable inputs used in the determination of the fair value of assets classified as Level 3 have an inherent measurement uncertainty that, if changed, could result in higher or lower fair value measurements of these assets as of the reporting date . Loans Receivable - Collateral dependent assets are assets evaluated on an individual basis. 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 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. The one- to four-family loans included in this amount were individually evaluated to determine if the carrying value of the loan was in excess of the fair value of the collateral, less estimated selling costs of 10 %. Fair values were estimated through current appraisals. Management does not adjust or apply a discount to the appraised value of one- to four-family loans, except for the estimated sales cost noted above, and the primary unobservable input for these loans was the appraisal. For commercial loans, 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. 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 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. 29 OREO - OREO primarily represents real estate acquired as a result of foreclosure or by deed in lieu of foreclosure and is carried at the lower of cost or fair value. The fair value for one- to four-family OREO is estimated through current appraisals or listing prices, less estimated selling costs of 10 %. Management does not adjust or apply a discount to the appraised value or listing price, except for the estimated sales costs noted above. 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 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. Adjustments to appraised or book values are generally based on assumptions not observable in the marketplace. The primary significant unobservable input for commercial OREO is downward adjustments to book value of the collateral for lack of marketability. 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 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. Considerable judgment is required to interpret market data to develop the estimates of fair value. The estimates presented are not necessarily indicative of amounts the Company would realize from a current market exchange at subsequent dates. The carrying amounts and estimated fair values of the Company's financial instruments by fair value hierarchy, at the dates presented, were as follows: March 31, 2025 Carrying Estimated Fair Value Amount Total Level 1 Level 2 Level 3 (Dollars in thousands) Assets: Cash and cash equivalents $ 340,389 $ 340,389 $ 340,389 $ — $ — AFS securities 961,417 961,417 — 961,417 — Loans receivable 7,875,905 7,562,591 — — 7,562,591 FHLB stock 99,334 99,334 99,334 — — Interest rate swaps 2,652 2,652 — 2,652 — Liabilities: Deposits 6,372,545 6,371,893 3,460,099 2,911,794 — Borrowings 2,142,956 2,133,424 — 2,133,424 — September 30, 2024 Carrying Estimated Fair Value Amount Total Level 1 Level 2 Level 3 (Dollars in thousands) Assets: Cash and cash equivalents $ 217,307 $ 217,307 $ 217,307 $ — $ — AFS securities 856,266 856,266 — 856,266 — Loans receivable 7,907,338 7,660,535 — — 7,660,535 FHLB stock 101,175 101,175 101,175 — — Interest rate swaps 2,103 2,103 — 2,103 — Liabilities: Deposits 6,129,982 6,135,652 3,164,672 2,970,980 — Borrowings 2,179,564 2,169,403 — 2,169,403 — 30 8. ACCUMULATED OTHER COMPREHENSIVE INCOME The following tables present the changes in the components of AOCI, net of tax, for the periods indicated. For the Three Months Ended March 31, 2025 Unrealized Unrealized Gains (Losses) Gains (Losses) on AFS on Cash Flow Total Securities Hedges AOCI (Dollars in thousands) Beginning balance $ 8,290 $ 3,272 11,562 Other comprehensive income (loss), before reclassifications 6,750 ( 706 ) 6,044 Amount reclassified from AOCI, net of taxes of $ 177 — ( 554 ) ( 554 ) Other comprehensive income (loss) 6,750 ( 1,260 ) 5,490 Ending balance $ 15,040 $ 2,012 17,052 For the Six Months Ended March 31, 2025 Unrealized Unrealized Gains (Losses) Gains (Losses) on AFS on Cash Flow Total Securities Hedges AOCI (Dollars in thousands) Beginning balance $ 20,032 $ 1,595 $ 21,627 Other comprehensive income (loss), before reclassifications ( 4,992 ) 1,669 ( 3,323 ) Amount reclassified from AOCI, net of taxes of $ 399 — ( 1,252 ) ( 1,252 ) 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 ) Other comprehensive income (loss) ( 5,471 ) 843 ( 4,628 ) 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 31