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) June 30, September 30, 2025 2024 ASSETS: Cash and cash equivalents (includes interest-earning deposits of $ 150,552 and $ 192,138 ) $ 174,965 $ 217,307 Available-for-sale ("AFS") securities, at estimated fair value (amortized cost of $ 933,360 and $ 829,852 ) 956,229 856,266 Loans receivable, net (allowance for credit losses ("ACL") of $ 22,808 and $ 23,035 ) 8,023,554 7,907,338 Federal Home Loan Bank Topeka ("FHLB") stock, at cost 98,225 101,175 Premises and equipment, net 88,967 91,463 Income taxes receivable, net 1,070 359 Deferred income tax assets, net 21,399 21,978 Other assets 328,330 331,722 TOTAL ASSETS $ 9,692,739 $ 9,527,608 LIABILITIES: Deposits $ 6,431,137 $ 6,129,982 Borrowings 2,071,585 2,179,564 Advances by borrowers 38,857 61,801 Other liabilities 105,002 123,991 Total liabilities 8,646,581 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, 132,800,865 and 132,735,565 shares issued and outstanding as of June 30, 2025 and September 30, 2024, respectively 1,328 1,327 Additional paid-in capital 1,146,648 1,146,851 Unearned compensation, Employee Stock Ownership Plan ("ESOP") ( 25,193 ) ( 26,431 ) Accumulated deficit ( 95,078 ) ( 111,104 ) Accumulated other comprehensive income ("AOCI"), net of tax 18,453 21,627 Total stockholders' equity 1,046,158 1,032,270 TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 9,692,739 $ 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 Nine Months Ended June 30, June 30, 2025 2024 2025 2024 INTEREST AND DIVIDEND INCOME: Loans receivable $ 82,914 $ 76,803 $ 245,175 $ 228,866 Mortgage-backed securities ("MBS") 12,163 9,585 34,451 23,238 FHLB stock 2,197 2,477 6,834 7,591 Cash and cash equivalents 1,620 3,875 6,220 13,166 Investment securities 784 2,255 2,795 7,115 Total interest and dividend income 99,678 94,995 295,475 279,976 INTEREST EXPENSE: Deposits 35,860 36,233 109,058 102,091 Borrowings 18,360 18,438 54,889 56,648 Total interest expense 54,220 54,671 163,947 158,739 NET INTEREST INCOME 45,458 40,324 131,528 121,237 PROVISION FOR CREDIT LOSSES ( 451 ) 1,472 226 1,896 NET INTEREST INCOME AFTER PROVISION FOR CREDIT LOSSES 45,909 38,852 131,302 119,341 NON-INTEREST INCOME: Deposit service fees 2,867 2,706 8,170 7,732 Insurance commissions 884 905 2,587 2,503 Net loss from securities transactions — — — ( 13,345 ) Other non-interest income 1,537 1,098 4,177 3,568 Total non-interest income 5,288 4,709 14,934 458 NON-INTEREST EXPENSE: Salaries and employee benefits 15,277 13,307 44,447 39,186 Information technology and related expense 5,163 5,364 14,637 15,687 Occupancy, net 3,270 3,263 10,105 10,116 Regulatory and outside services 1,261 1,322 3,843 4,345 Federal insurance premium 1,072 1,352 3,205 4,939 Advertising and promotional 1,453 951 3,035 3,210 Deposit and loan transaction costs 715 726 2,185 2,135 Office supplies and related expense 370 405 1,206 1,185 Other non-interest expense 983 1,260 3,589 4,100 Total non-interest expense 29,564 27,950 86,252 84,903 INCOME BEFORE INCOME TAX EXPENSE 21,633 15,611 59,984 34,896 INCOME TAX EXPENSE 3,251 5,963 10,772 8,943 NET INCOME $ 18,382 $ 9,648 $ 49,212 $ 25,953 Basic earnings per share ("EPS") $ 0.14 $ 0.07 $ 0.38 $ 0.20 Diluted EPS $ 0.14 $ 0.07 $ 0.38 $ 0.20 Basic weighted average common shares 130,081,065 129,866,397 130,026,451 130,923,888 Diluted weighted average common shares 130,081,065 129,866,397 130,026,451 130,923,888 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 Nine Months Ended June 30, June 30, 2025 2024 2025 2024 Net income $ 18,382 $ 9,648 $ 49,212 $ 25,953 Other comprehensive income, net of tax: Unrealized (losses) gains on AFS securities arising during the period, net of taxes of $( 734 ), $ 804 , $ 856 , and $( 2,780 ) 2,303 ( 2,412 ) ( 2,689 ) 8,698 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 $ 110 , $( 244 ), $( 421 ), and $( 91 ) ( 345 ) 829 1,324 352 Reclassification adjustment for cash flow hedge amounts included in net income, net of taxes of $ 177 , $ 502 , $ 576 , and $ 1,670 ( 557 ) ( 1,561 ) ( 1,809 ) ( 5,179 ) Comprehensive income $ 19,783 $ 6,504 $ 46,038 $ 28,636 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 Nine Months Ended June 30, 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 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 (Continued) 6 For the Nine Months Ended June 30, 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 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. 7 CAPITOL FEDERAL FINANCIAL, INC. AND SUBSIDIARY CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) (Dollars in thousands) For the Nine Months Ended June 30, 2025 2024 CASH FLOWS FROM OPERATING ACTIVITIES: Net income $ 49,212 $ 25,953 Adjustments to reconcile net income to net cash provided by operating activities: FHLB stock dividends ( 6,834 ) ( 7,591 ) Provision for credit losses 226 1,896 Originations of loans receivable held-for-sale ("LHFS") ( 1,990 ) ( 425 ) Proceeds from sales of LHFS 3,629 431 Amortization and accretion of premiums and discounts on securities ( 2,491 ) ( 7,327 ) Depreciation and amortization of premises and equipment 5,440 6,084 Amortization of intangible assets 411 589 Amortization of deferred amounts related to FHLB advances, net 1,080 1,143 Common stock committed to be released for allocation - ESOP 738 684 Stock-based compensation 300 266 Net loss from securities transactions — 13,345 Changes in: Unrestricted cash collateral from derivative counterparties, net ( 440 ) ( 6,730 ) Other assets, net 2,119 3,301 Income taxes receivable, net ( 727 ) 8,374 Deferred income tax assets, net 1,595 ( 1,331 ) Other liabilities ( 18,751 ) ( 4,387 ) Net cash provided by operating activities 33,517 34,275 CASH FLOWS FROM INVESTING ACTIVITIES: Purchase of AFS securities ( 248,207 ) ( 1,059,833 ) Proceeds from calls, maturities and principal reductions of AFS securities 147,190 373,739 Proceeds from sale of AFS securities — 1,272,512 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 Purchase of premises and equipment ( 3,550 ) ( 5,408 ) Proceeds from sale of other real estate owned ("OREO") 110 464 Proceeds from sale of premises and equipment 43 — Proceeds from sale of assets held-for-sale — 629 Proceeds from bank-owned life insurance ("BOLI") death benefit 667 1,049 Net cash (used in) provided by investing activities ( 211,802 ) 630,335 (Continued) 8 CAPITOL FEDERAL FINANCIAL, INC. AND SUBSIDIARY CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) (Dollars in thousands) For the Nine Months Ended June 30, 2025 2024 CASH FLOWS FROM FINANCING ACTIVITIES: Cash dividends paid ( 33,186 ) ( 33,479 ) Net change in deposits 301,155 78,440 Proceeds from borrowings 650,100 275,100 Repayments on borrowings ( 758,635 ) ( 864,864 ) 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 (DECREASE) / INCREASE IN CASH AND CASH EQUIVALENTS ( 42,342 ) 72,216 CASH AND CASH EQUIVALENTS: Beginning of period 217,307 245,605 End of period $ 174,965 $ 317,821 See accompanying notes to consolidated financial statements. (Concluded) 9 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. 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. 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 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 . 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 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 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. 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 10 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 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 Nine Months Ended June 30, June 30, 2025 2024 2025 2024 (Dollars in thousands, except per share amounts) Net income $ 18,382 $ 9,648 $ 49,212 $ 25,953 Income allocated to participating securities ( 22 ) ( 10 ) ( 58 ) ( 21 ) Net income available to common stockholders $ 18,360 $ 9,638 $ 49,154 $ 25,932 Total basic average common shares outstanding 130,081,065 129,866,397 130,026,451 130,923,888 Effect of dilutive stock options — — — — Total diluted average common shares outstanding 130,081,065 129,866,397 130,026,451 130,923,888 Net EPS: Basic $ 0.14 $ 0.07 $ 0.38 $ 0.20 Diluted $ 0.14 $ 0.07 $ 0.38 $ 0.20 Antidilutive stock options, excluded from the diluted average common shares outstanding calculation 242,728 324,374 274,502 328,827 11 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"). June 30, 2025 Gross Gross Estimated Amortized Unrealized Unrealized Fair Cost Gains Losses Value (Dollars in thousands) MBS $ 874,360 $ 23,527 $ 312 $ 897,575 GSE debentures 55,000 4 49 54,955 Corporate bonds 4,000 — 301 3,699 $ 933,360 $ 23,531 $ 662 $ 956,229 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 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. June 30, 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 $ 73,329 $ 244 $ 8,348 $ 68 GSE debentures 44,951 49 — — Corporate bonds — — 3,699 301 $ 118,280 $ 293 $ 12,047 $ 369 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 12 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 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. 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 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. 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 $ 59,000 $ 58,654 59,000 58,654 MBS 874,360 897,575 $ 933,360 $ 956,229 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 Nine Months Ended June 30, June 30, 2025 2024 2025 2024 (Dollars in thousands) Taxable $ 784 $ 2,255 $ 2,795 $ 7,113 Non-taxable — — — 2 $ 784 $ 2,255 $ 2,795 $ 7,115 The following table summarizes the carrying value of securities pledged as collateral for the obligations indicated below as of the dates presented. June 30, 2025 September 30, 2024 (Dollars in thousands) 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 . 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. 13 4. LOANS RECEIVABLE AND ALLOWANCE FOR CREDIT LOSSES Loans receivable, net at the dates presented is summarized as follows: June 30, 2025 September 30, 2024 (Dollars in thousands) One- to four-family: Originated $ 3,828,171 $ 3,941,952 Correspondent purchased 2,058,749 2,212,587 Bulk purchased 116,706 127,161 Construction 14,860 22,970 Total 6,018,486 6,304,670 Commercial: Commercial real estate 1,561,691 1,191,624 Commercial and industrial 184,390 129,678 Construction 165,760 187,676 Total 1,911,841 1,508,978 Consumer: Home equity 103,564 99,988 Other 9,109 9,615 Total 112,673 109,603 Total loans receivable 8,043,000 7,923,251 Less: ACL 22,808 23,035 Deferred loan fees/discounts 31,159 30,336 Premiums/deferred costs ( 34,521 ) ( 37,458 ) $ 8,023,554 $ 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- 14 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. 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, 15 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 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 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 $ 175,465 $ 237,821 $ 301,776 $ 544,279 $ 756,649 $ 1,789,116 $ — $ — $ 3,805,106 Special Mention — — 1,394 781 1,706 6,168 — — 10,049 Substandard — — 1,656 568 323 11,201 — — 13,748 Correspondent purchased Pass — 513 308,011 452,304 538,342 775,638 — — 2,074,808 Special Mention — — 982 523 368 661 — — 2,534 Substandard — — — 616 268 4,635 — — 5,519 Bulk purchased Pass — — — — — 114,837 — — 114,837 Special Mention — — — — — — — — — Substandard — — — — — 2,257 — — 2,257 175,465 238,334 613,819 999,071 1,297,656 2,704,513 — — 6,028,858 Commercial: Commercial real estate Pass 463,559 291,605 381,668 226,907 112,744 141,934 9,073 — 1,627,490 Special Mention 8,030 — — — — 81 — — 8,111 Substandard 39,962 142 41,548 — 108 2,961 50 — 84,771 Commercial and industrial Pass 83,689 27,631 27,355 14,761 6,053 2,097 20,453 — 182,039 Special Mention 279 — 26 51 — — 526 — 882 Substandard — 227 — 97 — 82 795 — 1,201 595,519 319,605 450,597 241,816 118,905 147,155 30,897 — 1,904,494 Consumer: Home equity Pass 4,443 5,994 3,813 3,906 1,180 2,292 73,800 7,887 103,315 Special Mention — — 20 — — — 257 88 365 Substandard — — — — — 11 91 119 221 Other Pass 3,449 2,231 1,592 1,021 233 65 416 — 9,007 Special Mention — — — — — — — — — Substandard 9 37 14 42 — — — — 102 7,901 8,262 5,439 4,969 1,413 2,368 74,564 8,094 113,010 Total $ 778,885 $ 566,201 $ 1,069,855 $ 1,245,856 $ 1,417,974 $ 2,854,036 $ 105,461 $ 8,094 $ 8,046,362 16 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 17 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. June 30, 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 $ 175,465 $ 237,821 $ 303,716 $ 544,376 $ 758,421 $ 1,797,349 $ — $ — $ 3,817,148 30-89 — — 1,110 998 149 7,333 — — 9,590 90+/FC — — — 254 108 1,803 — — 2,165 Correspondent purchased Current — 513 308,273 452,731 538,846 777,904 — — 2,078,267 30-89 — — 720 335 132 1,643 — — 2,830 90+/FC — — — 377 — 1,387 — — 1,764 Bulk purchased Current — — — — — 116,800 — — 116,800 30-89 — — — — — 157 — — 157 90+/FC — — — — — 137 — — 137 175,465 238,334 613,819 999,071 1,297,656 2,704,513 — — 6,028,858 Commercial: Commercial real estate Current 511,404 291,605 422,999 226,049 112,744 141,666 8,863 — 1,715,330 30-89 147 — — 858 — 439 210 — 1,654 90+/FC — 142 217 — 108 2,871 50 — 3,388 Commercial and industrial Current 83,968 27,631 27,319 14,909 5,988 2,097 20,631 — 182,543 30-89 — — 62 — 65 — 1,039 — 1,166 90+/FC — 227 — — — 82 104 — 413 595,519 319,605 450,597 241,816 118,905 147,155 30,897 — 1,904,494 Consumer: Home equity Current 4,443 5,942 3,833 3,753 1,180 2,242 73,935 7,939 103,267 30-89 — 52 — 153 — 55 139 126 525 90+/FC — — — — — 6 74 29 109 Other Current 3,390 2,208 1,572 1,047 233 65 416 — 8,931 30-89 59 23 20 8 — — — — 110 90+/FC 9 37 14 8 — — — — 68 7,901 8,262 5,439 4,969 1,413 2,368 74,564 8,094 113,010 Total $ 778,885 $ 566,201 $ 1,069,855 $ 1,245,856 $ 1,417,974 $ 2,854,036 $ 105,461 $ 8,094 $ 8,046,362 18 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 19 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 Nine Months Ended June 30, 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 35 12 — — — — — — 47 Other — 1 4 — — 2 2 — 9 35 13 4 — — 2 2 — 56 Total $ 35 $ 13 $ 4 $ — $ — $ 115 $ 2 $ — $ 169 For the Nine Months Ended June 30, 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 50 — — — — 10 — — 60 Commercial and industrial — — — — — — — — — 50 — — — — 10 — — 60 Consumer: Home equity 14 1 — — — — — — 15 Other — 9 13 — — 4 — — 26 14 10 13 — — 4 — — 41 Total $ 64 $ 10 $ 13 $ — $ — $ 14 $ — $ — $ 101 20 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 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 30 to 89 Days Delinquent or Delinquent Current Amortized Delinquent in Foreclosure Loans Loans Cost (Dollars in thousands) One- to four-family: Originated $ 9,590 $ 2,165 $ 11,755 $ 3,817,148 $ 3,828,903 Correspondent purchased 2,830 1,764 4,594 2,078,267 2,082,861 Bulk purchased 157 137 294 116,800 117,094 Commercial: Commercial real estate 1,654 3,388 5,042 1,715,330 1,720,372 Commercial and industrial 1,166 413 1,579 182,543 184,122 Consumer: Home equity 525 109 634 103,267 103,901 Other 110 68 178 8,931 9,109 $ 16,032 $ 8,044 $ 24,076 $ 8,022,286 $ 8,046,362 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 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. 21 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. 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 (Dollars in thousands) One- to four-family: Originated $ 2,165 $ 889 $ 2,271 $ 764 Correspondent purchased 1,764 — 4,090 182 Bulk purchased 137 — 1,539 812 Commercial: Commercial real estate 43,440 43,088 1,495 901 Commercial and industrial 511 511 335 335 Consumer: Home equity 109 — 338 — Other 68 14 98 16 $ 48,194 $ 44,502 $ 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 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. 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 Term Extension Total and Class of Payment Term Payment Financing Delay Extension Delay Total Receivable (Dollars in thousands) One- to four-family: Originated $ 340 $ 3,110 $ 1,645 $ 5,095 0.13 % Correspondent purchased — — 523 523 0.03 Bulk purchased — — — — — 340 3,110 2,168 5,618 0.09 Commercial: Commercial real estate 39,962 — — 39,962 2.32 Commercial and industrial — 691 — 691 0.38 39,962 691 — 40,653 2.13 Consumer loans: Home equity — — — — — Other — — — — — — — — — — Total $ 40,302 $ 3,801 $ 2,168 $ 46,271 0.58 22 For the Nine Months Ended June 30, 2025 Term Extension Total and Class of Payment Term Payment Financing Delay Extension Delay Total Receivable (Dollars in thousands) One- to four-family: Originated $ 470 $ 4,455 $ 2,271 $ 7,196 0.19 % Correspondent purchased — — 710 710 0.03 Bulk purchased — — — — — 470 4,455 2,981 7,906 0.13 Commercial: Commercial real estate 47,912 — — 47,912 2.78 Commercial and industrial — 994 — 994 0.54 47,912 994 — 48,906 2.57 Consumer loans: Home equity 20 35 — 55 0.05 Other — — — — — 20 35 — 55 0.05 Total $ 48,402 $ 5,484 $ 2,981 $ 56,867 0.71 For the Three Months Ended June 30, 2024 Term Extension Total and Class of Term Payment Financing Extension Delay Total Receivable (Dollars in thousands) One- to four-family: Originated $ 623 $ 59 $ 682 0.02 % Correspondent purchased — — — — Bulk purchased — — — — 623 59 682 0.01 Commercial: Commercial real estate — — — — Commercial and industrial — 30 30 0.02 — 30 30 — Consumer loans: Home equity — — — — Other — — — — — — — — Total $ 623 $ 89 $ 712 0.01 23 For the Nine Months Ended June 30, 2024 Term Extension Total and Class of 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: Commercial real estate — 192 192 0.01 Commercial and industrial — 486 486 0.37 — 678 678 0.05 Consumer loans: Home equity — — — — Other — — — — — — — — 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 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 Delay Extension Delay Extension One- to four-family: Originated 8 months 26 months 8 months 23 months Correspondent purchased 8 months 27 months 8 months 44 months Commercial: Commercial real estate 8 months N/A 8 months N/A Commercial and industrial N/A 6 months N/A 5 months Consumer: 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 Delay Extension Delay Extension One- to four-family: Originated 8 months 20 months 4 months 31 months Correspondent purchased N/A N/A 4 months 17 months Commercial: Commercial real estate N/A N/A 24 months 24 months Commercial and industrial 6 months 9 months 6 months 6 months 24 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 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 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 $ 1,610 $ 193 $ 1,803 $ 1,847 $ 205 $ 2,052 Correspondent purchased — — — 182 — 182 Bulk purchased — — — — — — Commercial: Commercial real estate — — — 50 — 50 Commercial and industrial 994 — 994 — — — Consumer loans: Home equity 86 — 86 — — — Other — — — — — — $ 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 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 June 30, 2025 For the Nine Months Ended June 30, 2025 Term Extension and Term Payment Term Payment Extension Delay Extension Delay Total (Dollars in thousands) One- to four-family: Originated $ 193 $ 82 $ 193 $ 148 $ 423 Correspondent purchased — — — 426 426 Bulk purchased — — — — — Commercial: Commercial real estate — — — 192 192 Commercial and industrial — — — 227 227 Consumer loans: Home equity — 85 — — 85 Other — — — — — $ 193 $ 167 $ 193 $ 993 $ 1,353 25 For the Three Months Ended June 30, 2024 For the Nine Months Ended June 30, 2024 Term Term Extension Extension and and Payment Payment Delay Delay (Dollars in thousands) One- to four-family: Originated $ 188 $ 205 Correspondent purchased — — Bulk purchased — — Commercial: Commercial real estate — — Commercial and industrial — — Consumer loans: Home equity — — Other — — $ 188 $ 205 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) Beginning balance $ 3,562 $ 19,005 $ 1,171 $ 232 $ 23,970 Charge-offs — — — ( 29 ) ( 29 ) Recoveries 2 — 1 1 4 Provision for credit losses ( 32 ) ( 2,407 ) 1,269 33 ( 1,137 ) Ending balance $ 3,532 $ 16,598 $ 2,441 $ 237 $ 22,808 For the Nine Months Ended June 30, 2025 One- to four- Commercial Commercial Family Real Estate and Industrial Consumer Total (Dollars in thousands) Beginning balance $ 3,673 $ 17,968 $ 1,186 $ 208 $ 23,035 Charge-offs ( 113 ) — — ( 56 ) ( 169 ) Recoveries 7 20 3 7 37 Provision for credit losses ( 35 ) ( 1,390 ) 1,252 78 ( 95 ) Ending balance $ 3,532 $ 16,598 $ 2,441 $ 237 $ 22,808 For the Three Months Ended June 30, 2024 One- to four- Commercial Commercial Family Real Estate and Industrial Consumer Total (Dollars in thousands) Beginning balance $ 5,060 $ 18,311 $ 1,019 $ 244 $ 24,634 Charge-offs — ( 50 ) — ( 26 ) ( 76 ) Recoveries 17 — 2 — 19 Provision for credit losses ( 271 ) 1,401 113 34 1,277 Ending balance $ 4,806 $ 19,662 $ 1,134 $ 252 $ 25,854 26 For the Nine Months Ended June 30, 2024 One- to four- Commercial Commercial Family Real Estate and Industrial Consumer Total (Dollars in thousands) Beginning balance $ 5,328 $ 17,076 $ 1,104 $ 251 $ 23,759 Adoption of ASU 2022-02 18 — 2 — 20 Balance at October 1, 2023 5,346 17,076 1,106 251 23,779 Charge-offs — ( 60 ) — ( 41 ) ( 101 ) Recoveries 25 — 3 15 43 Provision for credit losses ( 565 ) 2,646 25 27 2,133 Ending balance $ 4,806 $ 19,662 $ 1,134 $ 252 $ 25,854 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 June 30, 2025. The key assumptions utilized in estimating the Company's ACL at June 30, 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 June 30, 2025. 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 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 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 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 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. 27 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 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) Beginning balance $ 5,638 $ 3,679 $ 6,003 $ 4,095 Adoption of ASU 2022-02 — — — 16 Provision for credit losses 686 195 321 ( 237 ) Ending balance $ 6,324 $ 3,874 $ 6,324 $ 3,874 28 5. BORROWED FUNDS 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 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 $ 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 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 %. 6. INCOME TAXES 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 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. 29 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 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: • 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 nine months ended June 30, 2025 or during fiscal year 2024. (Level 2) 30 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 June 30, 2025 or September 30, 2024. June 30, 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 $ 897,575 $ — $ 897,575 $ — GSE debentures 54,955 — 54,955 — Corporate bonds 3,699 — 3,699 — 956,229 — 956,229 — Interest rate swaps 1,463 — 1,463 — $ 957,692 $ — $ 957,692 $ — 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 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. 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 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 31 average of 33 %. The basis utilized in calculating the weighted averages for these adjustments was the original unadjusted value of each collateral item. 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. 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. 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 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. 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: June 30, 2025 Carrying Estimated Fair Value Amount Total Level 1 Level 2 Level 3 (Dollars in thousands) Assets: Cash and cash equivalents $ 174,965 $ 174,965 $ 174,965 $ — $ — AFS securities 956,229 956,229 — 956,229 — Loans receivable 8,023,554 7,739,102 — — 7,739,102 FHLB stock 98,225 98,225 98,225 — — Interest rate swaps 1,463 1,463 — 1,463 — Liabilities: Deposits 6,431,137 6,431,235 3,509,556 2,921,679 — Borrowings 2,071,585 2,066,711 — 2,066,711 — 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 — 32 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 June 30, 2025 Unrealized Unrealized Gains (Losses) Gains (Losses) on AFS on Cash Flow Total Securities Hedges AOCI (Dollars in thousands) Beginning balance $ 15,040 $ 2,012 $ 17,052 Other comprehensive income (loss), before reclassifications 2,303 ( 345 ) 1,958 Amount reclassified from AOCI, net of taxes of $ 177 — ( 557 ) ( 557 ) Other comprehensive income (loss) 2,303 ( 902 ) 1,401 Ending balance $ 17,343 $ 1,110 $ 18,453 For the Nine Months Ended June 30, 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 ( 2,689 ) 1,324 ( 1,365 ) Amount reclassified from AOCI, net of taxes of $ 576 — ( 1,809 ) ( 1,809 ) Other comprehensive income (loss) ( 2,689 ) ( 485 ) ( 3,174 ) Ending balance $ 17,343 $ 1,110 $ 18,453 For the Three Months Ended June 30, 2024 Unrealized Unrealized Gains (Losses) Gains (Losses) on AFS on Cash Flow Total Securities Hedges AOCI (Dollars in thousands) Beginning balance $ 8,780 $ 5,747 $ 14,527 Other comprehensive income (loss), before reclassifications ( 2,412 ) 829 ( 1,583 ) Amount reclassified from AOCI, net of taxes of $ 502 — ( 1,561 ) ( 1,561 ) Other comprehensive income (loss) ( 2,412 ) ( 732 ) ( 3,144 ) Ending balance $ 6,368 $ 5,015 $ 11,383 For the Nine Months Ended June 30, 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 8,698 352 9,050 Amount reclassified from AOCI, net of taxes of $ 1,670 — ( 5,179 ) ( 5,179 ) 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) 7,510 ( 4,827 ) 2,683 Ending balance $ 6,368 $ 5,015 $ 11,383 33