What changed in this filing

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Item 1. Financial Statements

2025-08-08 compared with 2025-05-09 · 199 added, 144 removed, 900 unchanged (28% of the section changed)

4 unchanged sentences

(Dollars in thousands, except per share amounts)

March 31, September 30,

June 30, September 30,

Cash and cash equivalents (includes interest-earning deposits of $ 150,552 and $ 192,138 )

19 unchanged sentences

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

1,400,000,000 shares authorized, 132,800,865 and 132,735,565 shares issued and outstanding as of June 30, 2025 and September 30, 2024, respectively

Additional paid-in capital 1,146,648 1,146,851

9 unchanged sentences

(Dollars in thousands, except per share amounts)

For the Three Months Ended For the Six Months Ended

March 31, March 31,

For the Three Months Ended For the Nine Months Ended

June 30, June 30,

2025 2024 2025 2024

43 unchanged sentences

(Dollars in thousands)

For the Three Months Ended For the Six Months Ended

March 31, March 31,

For the Three Months Ended For the Nine Months Ended

June 30, June 30,

2025 2024 2025 2024

19 unchanged sentences

(Dollars in thousands, except per share amounts)

For the Six Months Ended March 31, 2025

For the Nine Months Ended June 30, 2025

Additional Unearned Total

17 unchanged sentences

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

Net income 18,382 18,382

Other comprehensive income, net of tax 1,401 1,401

ESOP activity ( 179 ) 413 234

Restricted stock activity, net ( 2 ) ( 2 )

Stock-based compensation 96 96

Cash dividends to stockholders ($ 0.085 per share)

( 11,063 ) ( 11,063 )

Balance at June 30, 2025 $ 1,328 $ 1,146,648 $ ( 25,193 ) $ ( 95,078 ) $ 18,453 $ 1,046,158

For the Nine Months Ended June 30, 2024

Additional Unearned Total

21 unchanged sentences

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

Net income 9,648 9,648

Other comprehensive loss, net of tax ( 3,144 ) ( 3,144 )

ESOP activity ( 197 ) 414 217

Restricted stock activity, net ( 1 ) ( 1 )

Stock-based compensation 97 97

Cash dividends to stockholders ($ 0.085 per share)

( 11,044 ) ( 11,044 )

Balance at June 30, 2024 $ 1,327 $ 1,146,928 $ ( 26,844 ) $ ( 112,118 ) $ 11,383 $ 1,020,676

See accompanying notes to consolidated financial statements.

3 unchanged sentences

(Dollars in thousands)

For the Six Months Ended

For the Nine Months Ended

CASH FLOWS FROM OPERATING ACTIVITIES:

23 unchanged sentences

Proceeds from the redemption of FHLB stock 11,515 11,996

Purchase of FHLB stock ( 1,731 ) —

Net change in loans receivable ( 117,839 ) 35,187

9 unchanged sentences

(Dollars in thousands)

For the Six Months Ended

For the Nine Months Ended

CASH FLOWS FROM FINANCING ACTIVITIES:

4 unchanged sentences

Change in advances by borrowers ( 22,944 ) ( 28,142 )

Payment of FHLB prepayment penalties ( 547 ) —

Repurchase of common stock — ( 19,449 )

Net cash provided by (used in) financing activities 135,943 ( 592,394 )

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

NET (DECREASE) / INCREASE IN CASH AND CASH EQUIVALENTS ( 42,342 ) 72,216

CASH AND CASH EQUIVALENTS:

1 unchanged sentence

End of period $ 174,965 $ 317,821

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.

14 unchanged sentences

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.

2 unchanged sentences

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 adoption of this ASU may result in disclosures currently presented outside of the Company's financial statements being relocated to the Company's financial statements.

If the SEC has not removed the applicable requirements from Regulation S-X or S-K by June 30, 2027, the pending content of the related amendment will be removed from the Codification and will not become effective for 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.

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 significant segment expenses and other items on an annual and interim basis.

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 .

2 unchanged sentences

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.

This ASU requires public business entities to provide additional annual disclosures regarding specific categories of the income tax rate reconciliation using both percentages and currency amounts with certain reconciling items being further broken out by nature and jurisdiction to the extent those items exceed a certain quantitative threshold.

The ASU also requires annual disclosures of income taxes paid (net of refunds received) disaggregated by federal, state, and foreign taxes and the amount of income taxes paid (net of refunds received) disaggregated by individual jurisdictions that meet a certain quantitative threshold.

This ASU also discontinues certain other income tax disclosures.

The ASU is effective for public business entities for annual periods beginning after December 15, 2024 which is the fiscal year ending September 30, 2026 for the Company.

Early adoption is permitted for annual financial statements that have not yet been issued or made available for issuance.

This ASU should be applied on a prospective basis;

however, retrospective application is permitted.

The Company's financial condition, results of operations and cash flows will not be impacted by this guidance;

however, the guidance will impact the Company's income tax footnote disclosures.

The Company is currently evaluating the effect this ASU will have on the Company's income tax footnote 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 removes references to various FASB 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.

3 unchanged sentences

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.

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.

2 unchanged sentences

In January 2025, the FASB issued ASU 2025-1, Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures:

Clarifying the Effective

Clarifying the Effective Date.

The FASB clarified the interim date reporting when an entity adopts ASU 2024-03.

5 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 Six Months Ended

March 31, March 31,

For the Three Months Ended For the Nine Months Ended

June 30, June 30,

2025 2024 2025 2024

12 unchanged sentences

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

March 31, 2025

June 30, 2025

Gross Gross Estimated

15 unchanged sentences

$ 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 June 30, 2025, AFS securities included $ 827.8 million of residential MBS and $ 69.7 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

June 30, 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 March 31, 2025 were a result of an increase in market yields from the time the securities were purchased.

The unrealized losses at June 30, 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.

Management did not record an ACL on securities in an unrealized loss position at June 30, 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 March 31, 2025, by contractual maturity, are shown below.

The amortized cost and estimated fair value of AFS debt securities as of June 30, 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 Six Months Ended

March 31, March 31,

For the Three Months Ended For the Nine Months Ended

June 30, June 30,

2025 2024 2025 2024

4 unchanged sentences

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

June 30, 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 $ 154,802 $ 108,748

Federal Reserve Bank of Kansas City ("FRB of Kansas City") borrowings 95,307 111,281

$ 250,109 $ 220,029

4 unchanged sentences

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

March 31, 2025 September 30, 2024

June 30, 2025 September 30, 2024

(Dollars in thousands)

64 unchanged sentences

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.

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

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

The commercial real estate substandard loan amount presented in the "Current Fiscal Year" column is primarily related to two loans in the same borrowing relationship.

These two loans were also classified as nonaccrual at June 30, 2025.

The commercial real estate substandard loan amount presented in the “Fiscal Year 2023” column is related to one loan that was classified during the current year period.

All three loans noted above are recourse loans with a personal guaranty and have low LTVs.

There have been no charge-offs with these three loans nor has management set aside a specific valuation allowance associated with these loans as of June 30, 2025 due to the low LTVs.

June 30, 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.

March 31, 2025

June 30, 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 Six Months Ended March 31, 2025

For the Nine Months Ended June 30, 2025

Current Fiscal Fiscal Fiscal Fiscal Revolving of Credit

14 unchanged sentences

Total $ 35 $ 13 $ 4 $ — $ — $ 115 $ 2 $ — $ 169

For the Six Months Ended March 31, 2024

For the Nine Months Ended June 30, 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 March 31, 2025 and September 30, 2024, all loans 90 or more days delinquent were on nonaccrual status.

March 31, 2025

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

June 30, 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 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.

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

The amortized cost of mortgage loans secured by residential real estate for which formal foreclosure proceedings were in process as of June 30, 2025 and September 30, 2024 was $ 802 thousand 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 as of June 30, 2025 and September 30, 2024 was $ 92 thousand and $ 55 thousand, respectively.

The following table presents the amortized cost at June 30, 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

The increase in nonaccrual commercial real estate loans as of June 30, 2025 was due primarily to two loans that are related to the same borrowing relationship.

The Bank entered into an agreement with the borrower which allows the borrower to not make payments on these two loans until later in calendar year 2025;

therefore, these loans were considered nonaccrual at June 30, 2025.

June 30, 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 and six months ended March 31, 2025 and 2024, there were no charge-offs related to loans modified during those periods.

During the three and nine months ended June 30, 2025, there were no charge-offs related to loans modified during those periods.

During the three and nine months ended June 30, 2024, there was a $ 50 thousand charge-off related to a commercial real estate loan that was modified during the three months ended June 30, 2024.

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

For the Three Months Ended March 31, 2025

The commercial real estate payment delay modifications during the three and nine-months ended June 30, 2025 were due primarily to two loans where the Bank entered into an agreement with the borrower which allows the borrower to not make payments until later in calendar year 2025.

These two commercial real estate loans were classified as substandard and nonaccrual at June 30, 2025.

For the Three Months Ended June 30, 2025

Extension Total

13 unchanged sentences

Other — — — — —

— 35 — 35 0.03

Total $ 40,302 $ 3,801 $ 2,168 $ 46,271 0.58

For the Six Months Ended March 31, 2025

For the Nine Months Ended June 30, 2025

Extension Total

15 unchanged sentences

Total $ 48,402 $ 5,484 $ 2,981 $ 56,867 0.71

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

For the Three Months Ended June 30, 2024

Extension Total

Term Payment Financing

Extension Delay Total Receivable

(Dollars in thousands)

6 unchanged sentences

Commercial and industrial — 30 30 0.02

Consumer loans:

Home equity — — — —

Other — — — —

Total $ 623 $ 89 $ 712 0.01

For the Nine Months Ended June 30, 2024

Extension Total

Term Payment Financing

Extension Delay Total Receivable

(Dollars in thousands)

One- to four-family:

Originated $ 623 $ 7,114 $ 7,737 0.19 %

Correspondent purchased — 1,731 1,731 0.08

Bulk purchased — — — —

623 8,845 9,468 0.15

Commercial real estate — 192 192 0.01

Commercial and industrial — 486 486 0.37

— 678 678 0.05

Consumer loans:

2 unchanged sentences

Total $ 623 $ 9,523 $ 10,146 0.13

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

Financial effect of loan modifications - The tables below present the financial effect of loan modifications during the three and nine months ended June 30, 2025 and 2024, including the weighted average payment delay and weighted average term extension.

For the Three Months Ended June 30, 2025 For the Nine Months Ended June 30, 2025

Payment Term Payment Term

5 unchanged sentences

Commercial and industrial N/A 6 months N/A 5 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

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

For the Three Months Ended June 30, 2024 For the Nine Months Ended June 30, 2024

Payment Term Payment Term

2 unchanged sentences

Originated 8 months 20 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

Correspondent purchased N/A N/A 4 months 17 months

Commercial real estate N/A N/A 24 months 24 months

Commercial and industrial 6 months 9 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

The following table presents the performance of such loans, based on amortized cost, by class of financing receivable as of June 30, 2025, on loans modified during the previous 12-months for borrowers experiencing financial difficulty that were delinquent as of June 30, 2025, or as of June 30, 2024 on loans modified on or after October 1, 2023 (the day the Company adopted ASU 2022-02) through June 30, 2024 for borrowers experiencing financial difficulty, that were delinquent as of June 30, 2024.

All other loans modified to borrowers experiencing financial difficulty during the periods noted were current as of June 30, 2025 and June 30, 2024.

As of June 30, 2025 As of June 30, 2024

30 to 89 Days

16 unchanged sentences

$ 2,690 $ 193 $ 2,883 $ 2,079 $ 205 $ 2,284

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 following tables present the amortized cost basis of loans that had a payment default during the three and nine months ended June 30, 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 nine months ended June 30, 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

For the Three Months Ended June 30, 2025 For the Nine Months Ended June 30, 2025

Term Payment Term Payment

Extension Delay Extension Delay Total

(Dollars in thousands)

9 unchanged sentences

$ 193 $ 167 $ 193 $ 993 $ 1,353

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

For the Three Months Ended June 30, 2024 For the Nine Months Ended June 30, 2024

Extension Extension

9 unchanged sentences

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 March 31, 2025

One- to Four-Family

Correspondent Bulk

Originated Purchased Purchased Total Commercial Consumer Total

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

For the Three Months Ended June 30, 2025

One- to four- Commercial Commercial

Family Real Estate and Industrial Consumer Total

(Dollars in thousands)

4 unchanged sentences

Ending balance $ 3,532 $ 16,598 $ 2,441 $ 237 $ 22,808

For the Six Months Ended March 31, 2025

One- to Four-Family

Correspondent Bulk

Originated Purchased Purchased Total Commercial Consumer Total

For the Nine Months Ended June 30, 2025

One- to four- Commercial Commercial

Family Real Estate and Industrial Consumer Total

(Dollars in thousands)

4 unchanged sentences

Ending balance $ 3,532 $ 16,598 $ 2,441 $ 237 $ 22,808

For the Three Months Ended March 31, 2024

One- to Four-Family

Correspondent Bulk

Originated Purchased Purchased Total Commercial Consumer Total

For the Three Months Ended June 30, 2024

One- to four- Commercial Commercial

Family Real Estate and Industrial Consumer Total

(Dollars in thousands)

4 unchanged sentences

Ending balance $ 4,806 $ 19,662 $ 1,134 $ 252 $ 25,854

For the Six Months Ended March 31, 2024

One- to Four-Family

Correspondent Bulk

Originated Purchased Purchased Total Commercial Consumer Total

For the Nine Months Ended June 30, 2024

One- to four- Commercial Commercial

Family Real Estate and Industrial Consumer Total

(Dollars in thousands)

7 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 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.

Management also considered certain qualitative factors when evaluating the adequacy of the ACL at June 30, 2025.

The key assumptions utilized in estimating the Company's ACL at June 30, 2025 are discussed below.

At June 30, 2025, management selected an economic scenario 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 June 30, 2025 were the national unemployment rate, changes in commercial real estate price index, changes in home values, changes in the U.S.

consumer price index, 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 economic index most impactful to all loan pools within the model at June 30, 2025 was the national unemployment rate.

The forecasted national unemployment rate in the economic scenario selected by management at June 30, 2025 had the national unemployment rate gradually increasing to 5.7 % by June 30, 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 June 30, 2025.

• Prepayment and curtailment assumptions - The assumptions used at June 30, 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.

• Qualitative factors - Management applied qualitative factors at June 30, 2025 to account for large dollar commercial real estate 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.

◦ The Company's commercial real estate loans generally have low LTV ratios and strong DSCRs which serve as indicators that losses in the commercial real estate loan portfolio 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 real estate loan pool, the magnitude of such a loss could be significant.

The large dollar commercial real estate 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.

◦ For one- to four-family loans, management believes there is potential risk of loss in market value in an economic downturn related to, in particular, 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 June 30, 2025, management considered external historical home price index trending information, along with 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 June 30, 2025 and September 30, 2024, the Bank's off-balance sheet credit exposures totaled $ 875.6 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

The provision for the three months ended June 30, 2025 was due primarily to an increase in the balance of commercial and industrial off-balance sheet credit exposures.

The increase in the reserve for off-balance sheet credit exposures as of June 30, 2025 compared to June 30, 2024 was due primarily to an increase in commercial real estate and commercial and industrial off-balance sheet credit exposures between periods.

For the Three Months Ended For the Nine Months Ended

June 30, 2025 June 30, 2024 June 30, 2025 June 30, 2024

(Dollars in thousands)

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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.

FHLB Borrowings and Interest Rate Swaps - As of June 30, 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 June 30, 2025 and September 30, 2024, the interest rate swap agreements had an average remaining term to maturity of 1.5 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.

At June 30, 2025 and September 30, 2024, the interest rate swaps were in a gain position with a total fair value of $ 1.5 million and $ 2.1 million, respectively, which was reported in other assets on the consolidated balance sheet.

During the three and nine months ended June 30, 2025, $ 557 thousand and $ 1.8 million, respectively, was reclassified from AOCI as a decrease to interest expense.

During the three and nine months ended June 30, 2024, $ 1.6 million and $ 5.2 million, respectively, was reclassified from AOCI as a decrease to interest expense.

At June 30, 2025, the Company estimated that $ 1.1 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.

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 held cash collateral of $ 1.7 million and $ 2.1 million at June 30, 2025 and September 30, 2024, respectively.

During the three months ended June 30, 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 prepayment penalties are being 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.

At June 30, 2025 and September 30, 2024, the Company had a net operating loss deferred income tax asset of $ 19.9 million and $ 30.5 million, respectively.

The gross federal and state net operating loss amount at June 30, 2025 was $ 82.0 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 operating loss usage limitations, until such time as it is fully utilized.

Additionally, the Company had a $ 19.6 million and $ 12.8 million deferred tax asset related to the Bank's low income housing tax credits as of June 30, 2025 and September 30, 2024, respectively.

These credits are not currently able to be fully 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.

At June 30, 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 June 30, 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.

During the three months ended June 30, 2025, the State of Kansas enacted a change in the tax law that is effective October 1, 2027 for the Company and the Bank.

The State of Kansas is changing the way it attributes taxable income to the State, specifically changing from a three-factor apportionment (property, payroll and receipts) to a single, revenue-based method.

Most of the Bank's property and payroll are located in Kansas, but a large amount of its revenue generating activities, predominantly loan interest income, are outside of Kansas.

Therefore, the Bank is expecting a decrease in income apportioned to Kansas starting in fiscal year 2028 due to the tax law change.

As a result, as of June 30, 2025, the Bank remeasured its state deferred tax assets and liabilities expected as of October 1, 2027.

The Bank recorded an $ 857 thousand reduction in net state income tax expense during the current quarter related to this law change.

On July 4, 2025, the H.R.

1 - One Big Beautiful Bill Act ("OBBBA") was enacted into law.

The OBBBA includes significant provisions, such as the permanent extension of certain expiring provisions of the Tax Cuts and Jobs Act and the restoration of favorable tax treatment for certain business provisions.

The legislation has multiple effective dates, with certain provisions effective in 2025 and others being phased in through 2027.

The Company is currently evaluating the effect the OBBBA will have on the Company's consolidated financial condition and results of operations.

FAIR VALUE OF FINANCIAL INSTRUMENTS

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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 six months ended March 31, 2025 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 nine months ended June 30, 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 six months ended March 31, 2025 or during fiscal year 2024.

No adjustments were made to the estimated fair values obtained from the counterparty during the nine months ended June 30, 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 March 31, 2025 or September 30, 2024.

March 31, 2025

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

June 30, 2025

Quoted Prices Significant Significant

27 unchanged sentences

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.

The fair value of collateral dependent loans/loans individually evaluated for loss on a non-recurring basis during the nine months ended June 30, 2025 and 2024 that were still held in the portfolio as of June 30, 2025 and 2024 was $ 89.6 million and $ 1.6 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 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 primary significant unobservable inputs for commercial loans individually evaluated during the nine months ended June 30, 2025 and June 30, 2024 were downward adjustments to the book value of the collateral for lack of marketability.

During the nine months ended June 30, 2025, the adjustments ranged from 10 % to 99 %, with a weighted average of 22 %.

During the nine months ended June 30, 2024, the adjustments ranged from 5 % to 100 %, with a weighted

average of 33 %.

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 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.

The fair value of one- to four-family OREO measured on a non-recurring basis during the nine months ended June 30, 2025 was $ 92 thousand.

The carrying value of the properties equaled the fair value of the properties at June 30, 2025.

There was no one- to four-family OREO measured on a non-recurring basis during the nine months ended June 30, 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 six months ended March 31, 2025 and 2024.

There was no commercial OREO measured on a non-recurring basis during the nine months ended June 30, 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:

March 31, 2025

June 30, 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 March 31, 2025

For the Three Months Ended June 30, 2025

Unrealized Unrealized

9 unchanged sentences

Ending balance $ 17,343 $ 1,110 $ 18,453

For the Six Months Ended March 31, 2025

For the Nine Months Ended June 30, 2025

Unrealized Unrealized

9 unchanged sentences

Ending balance $ 17,343 $ 1,110 $ 18,453

For the Three Months Ended March 31, 2024

For the Three Months Ended June 30, 2024

Unrealized Unrealized

9 unchanged sentences

Ending balance $ 6,368 $ 5,015 $ 11,383

For the Six Months Ended March 31, 2024

For the Nine Months Ended June 30, 2024

Unrealized Unrealized

13 unchanged sentences

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