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Item 7. Management’s Discussion and Analysis

2025-11-26 compared with 2024-11-27 · 560 added, 409 removed, 666 unchanged (59% of the section changed)

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The following summary should be read in conjunction with the Management's Discussion and Analysis of Financial Condition and Results of Operations section in its entirety.

In October 2023, the Company initiated a strategic securities transaction ("securities strategy") by selling $1.30 billion of securities, representing 94% of its securities portfolio.

Since the Company had the intent to sell the $1.30 billion of securities to maturity at September 30, 2023, the Company recognized an impairment loss on those securities of $192.6 million which was reflected in the Company's financial statements for the fiscal year ended September 30, 2023.

During the quarter ended December 31, 2023, the Company sold the securities and recognized $13.3 million ($10.0 million net of tax), or $0.08 per share, of additional loss related to the sale of the securities.

The securities strategy was designed to allow the Company to improve its earnings stream going forward, beginning in the current fiscal year, by redeploying most of the proceeds into current market rate securities and to provide liquidity to deleverage the balance sheet utilizing the remaining proceeds.

See additional information regarding the impact of the securities strategy on our financial measurements in "Average Balance Sheets" below.

The $1.30 billion of securities sold had a weighted average yield of 1.22% and an average duration of 3.6 years.

With the proceeds from the sale of the securities, the Company purchased $632.0 million of securities yielding 5.75%, paid down $500.0 million of borrowings with a weighted average cost of 4.70%, and held the remaining cash at the FRB earning interest at the reserve balance rate until such time as it could be used to fund commercial loan activity or for other Bank operations.

A taxable net loss will be reported on the Company's September 30, 2024 federal tax return due to the net losses associated with the securities strategy, which resulted in the Bank and Company having a negative current and accumulated earnings and profit tax position.

This required the Bank to draw upon the pre-1988 bad debt reserves for distributions from the Bank to the Company during the current fiscal year.

See additional information regarding the Bank's pre-1988 bad debt recapture in "Part II, Item 8.

Financial Statements and Supplementary Data - Notes to Financial Statements - Note 9.

Income Taxes".

During the current year, the Bank was required to pay income taxes on the reductions to the pre-1988 bad debt reserves equal to the current corporate tax rate at the time of the distribution multiplied by the amount of Bank earnings paid to the Company ("pre-1988 bad debt recapture").

The Bank recorded $5.4 million of income tax expense on earnings distributions from the Bank to the Company during the current year due to the pre-1988 bad debt recapture.

As of September 30, 2024, the amount of the Bank's remaining pre-1988 bad debt reserves was $75.9 million, or $15.9 million tax effected.

It is currently the intention of management and the Board of Directors to make no distributions from the Bank to the Company during fiscal year 2025.

By not making distributions during fiscal year 2025, the Bank will not incur income tax expense related to the pre-1988 bad debt recaptures as occurred during the current year.

See "Financial Condition - Stockholders' Equity" section below for additional discussion.

The Company recognized net income of $38.0 million, or $0.29 per share, for fiscal year 2024 compared to a net loss of $101.7 million, or $(0.76) per share, for the prior fiscal year.

The net loss in the prior year resulted from the impairment loss on securities associated with the securities strategy.

Excluding the net loss associated with the securities strategy, earnings per share would have been $0.37 for the current year and $0.33 for the prior year.

The increase in earnings per share excluding the effects of the net loss associated with the securities strategy was due primarily to higher net interest income and a lower provision for credit losses in the current year, partially offset by higher income tax expense due primarily to the pre-1988 bad debt recapture.

Periodically at management's discretion, we have utilized a strategy to increase earnings which entails entering into short-term FHLB borrowings and depositing the proceeds from these FHLB borrowings, net of the cost to purchase FHLB stock to meet FHLB stock holding requirements, at the FRB of Kansas City (the "leverage strategy").

See additional discussion regarding the leverage strategy in "Financial Condition - Borrowings" section below.

When the leverage strategy is in place, it increases assets and liabilities and reduces the net interest margin due to the amount of earnings from the transaction in

comparison to the size of the transaction.

The leverage strategy was not utilized in the current fiscal year but it was in the prior fiscal year.

The net interest margin increased 34 basis points, from 1.43% for the prior year to 1.77% for the current year.

The leverage strategy negatively impacted the net interest margin for the prior year by 12 basis points.

The remaining improvement in the net interest margin absent the leverage strategy was due to higher yields on securities and loans, which outpaced the increase in the cost of deposits, largely in retail certificates of deposit.

The Company's efficiency ratio was 66.91% for the current year compared to (626.63)% for the prior year.

Excluding the net losses from the securities strategy, the efficiency ratio would have been 61.97% for the current year and 65.31% for the prior year.

The improvement in the efficiency ratio, excluding the net losses from the securities strategy, was due primarily to higher net interest income and lower non-interest expense in the current year compared to the prior year.

Total assets were $9.53 billion at September 30, 2024, a decrease of $649.9 million from September 30, 2023.

The decrease was due primarily to a $528.2 million decrease in securities, mainly as a result of the securities strategy, along with a $63.6 million decrease in the loan portfolio.

The loan portfolio mix shifted toward higher earning commercial loans during the current fiscal year with a $287.2 million decrease in one- to four-family loans, partially offset by a $221.5 million increase in commercial loans.

Management expects one- to four-family loans will continue to decrease as a percentage of total loans as cash flows generated from the one- to four-family loan portfolio will be used to fund commercial loan growth.

Total liabilities at September 30, 2024 were $8.50 billion, a decrease of $638.1 million from September 30, 2023.

The decrease was due primarily to a $699.6 million decrease in borrowings as some of the funds from the securities strategy were used to repay all $500.0 million of outstanding borrowings under the BTFP and not all maturing FHLB borrowings were replaced during the current fiscal year.

The decrease in borrowings was partially offset by an increase in deposits.

Total deposits increased $78.8 million from September 30, 2023, primarily in retail certificates of deposit, all in the 14 months or shorter term category, partially offset by a decrease in retail money market accounts as some customers elected to move funds to the Bank's certificate of deposit offerings or the Bank's higher yielding savings account offering.

Total stockholders' equity was $1.03 billion at September 30, 2024, a decrease of $11.8 million from September 30, 2023 due primarily to stock buybacks early in fiscal year 2024, partially offset by an increase in accumulated other comprehensive income, net of tax.

The improvement in accumulated other comprehensive income, net of tax, was mainly a result of the securities strategy.

The Company recognized net income of $68.0 million, or $0.52 per share, for fiscal year 2025 compared to net income of $38.0 million, or $0.29 per share, for the prior fiscal year.

The increase in net income was due mainly to higher net interest and non-interest income, partially offset by higher non-interest expense.

Non-interest income was lower in the prior fiscal year due mainly to the net losses on the sale of securities associated with the securities strategy.

See additional discussion regarding the securities strategy in the "Securities Strategy to Improve Earnings" section below.

Excluding the effects of the net loss associated with the securities strategy, earnings per share ("EPS") would have been $0.37 for the prior fiscal year.

The increase in EPS, excluding the effects of the net loss associated with the securities strategy, was due primarily to higher net interest income in the current fiscal year.

The net interest margin increased 19 basis points, from 1.77% for the prior fiscal year to 1.96% for the current fiscal year.

The increase was due mainly to higher yields on the loan portfolio due to the continued shift of loan balances from the one- to four-family loan portfolio to the higher yielding commercial loan portfolio, which outpaced the increase in the cost of deposits.

The Bank continues to transition from a primarily retail oriented financial institution to one with an expanded focus on commercial customers by strategically growing all aspects of commercial banking through investments in technology, people, products, and services.

The Bank is active in commercial lending markets even when the lending opportunity is outside of the Bank's local footprint.

For additional discussion, see the "Strategic Banking Initiatives" section below.

The Company's efficiency ratio was 58.33% for the current fiscal year compared to 66.91% for the prior fiscal year.

Excluding the net losses from the securities strategy, the efficiency ratio would have been 61.97% for the prior fiscal year.

The improvement in the efficiency ratio, excluding the net losses from the securities strategy, was due primarily to higher net interest income compared to the prior fiscal year, partially offset by higher non-interest expense.

The Company's operating expense ratio for the current fiscal year was 1.22% compared to 1.17% for the prior fiscal year.

The operating expense ratio was higher in the current fiscal year due mainly to higher non-interest expense.

Total assets were $9.78 billion at September 30, 2025, an increase of $251.1 million from September 30, 2024.

The increase was due primarily to growth in the loan portfolio, which was largely funded with deposit growth, mainly through the Bank's high yield savings account offering.

Total loans receivable increased $204.6 million from September 30, 2024.

The increase was due mainly to the commercial loan portfolio, which increased $607.0 million, or approximately 40%, during the current fiscal year, due primarily to commercial real estate loan growth.

The increase was partially offset by a decrease of $400.0 million in one- to four-family loans.

It is expected that repayments from our one- to four-family loan portfolio will continue to be directed toward supporting commercial loan growth, aligning with our ongoing commitment to expand commercial banking services.

Maintaining strong credit quality remains a top priority as we grow our commercial loan portfolio.

The weighted average debt service coverage ratio ("DSCR") for commercial loan originations and purchases during the current fiscal year was 1.76x and the weighted average loan-to-value ("LTV") for commercial real estate and construction loans originated and purchased was 65%.

The weighted average DSCR and LTV for our commercial real estate and construction loans was 1.65x and 61%, respectively, at September 30, 2025.

The Bank's asset quality remains strong, reflected in the continued low level of loan delinquency and charge-off ratios.

At September 30, 2024, loans 30 to 89 days delinquent were 0.20% of total loans receivable, net, and loans 90 or more days delinquent or in foreclosure were 0.12% of total loans receivable, net.

The ratio of net charge-offs (recoveries) ("NCOs") during the current year to average loans outstanding during the current year was 0% as there were only $111 thousand of NCOs during the current year.

At September 30, 2024, the Bank's gap between the amount of interest-earning assets and interest-bearing liabilities projected to reprice within one year was $(1.51) billion, or (15.8)% of total assets, meaning the amount of interest-bearing liabilities exceeded the amount of interest-earning assets maturing or expected to reprice during the same period.

At September 30, 2025, loans 30 to 89 days delinquent were 0.15% of total loans receivable, net, and loans 90 or more days

delinquent or in foreclosure were 0.09% of total loans receivable, net.

See "Management's Discussion and Analysis of Financial Condition and Results of Operation - Asset Quality - Delinquent and nonaccrual loans and other real estate owned ("OREO")" below for additional discussion.

During the current fiscal year, net charge-offs ("NCOs") were $198 thousand.

Total liabilities at September 30, 2025 were $8.73 billion, an increase of $235.7 million from September 30, 2024.

The increase was due mainly to deposit growth, largely through the Bank's high yield savings account offering, which increased $364.5 million.

Management has continued to focus on retaining and growing deposits through the Bank's high yield savings account product, which, as of September 30, 2025, had an annual percentage yield of 4.00% for accounts that meet the $10 thousand minimum balance requirement.

The increase in deposits was partially offset by a $228.8 million decrease in borrowings due to principal repayments made on the Bank's amortizing FHLB advances, along with borrowings that matured but were not replaced.

Management estimates that the Bank had $2.92 billion in liquidity available at September 30, 2025, based on the Bank's blanket collateral agreement with FHLB and unencumbered securities.

Stockholders' equity totaled $1.05 billion at September 30, 2025, an increase of $15.4 million from September 30, 2024.

As of September 30, 2025, the Bank's capital ratios exceeded the well-capitalized requirements.

The Bank's community bank leverage ratio ("CBLR") as of September 30, 2025 was 9.6%.

During the current fiscal year, the Company paid regular quarterly cash dividends totaling $44.2 million, or $0.34 per share and repurchased 618,260 shares for $3.9 million.

At September 30, 2025, the gap between the Bank's interest-earning assets and interest-bearing liabilities projected to reprice within one year was $(983.6) million, or (10.1)% of total assets, compared to $(1.51) billion, or (15.8)% of total assets, at September 30, 2024.

As of September 30, 2025, the Bank exceeded internal policy thresholds for sensitivity to changes in interest rates.

See additional discussion in "Part II, Item 7A.

Quantitative and Qualitative Disclosures About Market Risk."

The Bank's Digital Transformation and Business Initiatives

With the implementation of our new core system and its ancillary systems ("digital transformation") in August 2023, we improved our internal and customer-facing technology.

The digital transformation implemented technology needed to enhance our customers' experience, deepen our wallet share with existing customers, and attract new customers.

In addition to the improvements in technology, management has adjusted staffing in several areas to better align with the Bank's strategy to grow and enhance commercial banking and lending.

Pairing improved technology, products and services with the right organizational structure has provided benefits in each of the Bank's customer segments:

consumer, small business and commercial.

The Bank has gained immediate traction with the new and improved True Blue Online ("TBO"), the Bank's digital banking platform for consumers and small businesses.

Those gains include:

a Mobile app store ratings have improved by over 115% for Android comparing the ratings from the pre-digital transformation to the end of fiscal year 2024 and over 25% for iOS since the digital transformation,

b Volume of deposit accounts opened online through the digital channel is over 62% higher in the current fiscal year compared to the prior fiscal year,

c Achieved over 27,000 active users of our credit score service in TBO since August 2023, and

d Continued growth in person-to-person payment volume following the integration of Zelle into TBO:

i Settlement volume is up 92% year-over-year, and

ii Transaction volume is up 117% year-over-year.

Our small business customers now have access to improved digital services, and management has realigned staffing to focus on growing small business banking.

We are in the process of adding more small business services into TBO to continue deposit and fee income growth in this area.

For commercial banking, alignment of technology, people, products and services is crucial to our objective of capturing complete banking relationships as we continue to strategically grow this business.

Management has continued to adjust staffing in numerous areas of the Bank, including deposit operations, lending, and commercial banking, to ensure resources are aligned with our priorities and strategies.

The technology implemented with the digital transformation provides more flexibility for structuring commercial loan transactions and has allowed us to build digital banking services to meet our customers' deposit and payment requirements to grow deposit and treasury management fee income.

During the current fiscal year, several new treasury management services were added in response to the needs of customers in the sales pipeline.

Additionally, during the current fiscal year we began a project to improve pricing tools to equip staff to price new business in a profitable manner.

The project is expected to be completed mid-fiscal year 2025 and is anticipated to provide immediate benefits to the Bank such as ensuring profitable pricing, more efficient pricing processes, and faster pricing negotiations with our customers.

Leveraging our new technology and organizational structure to quickly respond to customer needs in the sales pipeline is central to our growth strategy for commercial deposits.

Securities Strategy to Improve Earnings

In October 2023, the Company initiated a securities strategy (the "securities strategy") by selling $1.30 billion of securities, representing 94% of its securities portfolio.

Since the Company did not have the intent to hold the $1.30 billion of securities to maturity at September 30, 2023, the Company recognized an impairment loss on those securities of $192.6 million which was reflected in the Company's financial statements for the quarter and fiscal year ended September 30, 2023.

The securities strategy allowed the Company to improve its earnings stream going forward, beginning in the quarter ended December 31, 2023, by redeploying most of the proceeds into then-current market rate securities.

The Company utilized the remaining proceeds to deleverage the balance sheet.

During the quarter ended December 31, 2023, the Company completed the sale of securities and recognized $13.3 million ($10.0 million net of tax), or $0.08 per share, of additional loss.

See additional information regarding the impact of the securities strategy on our financial measurements in "Management's Discussion and Analysis of Financial Condition and Results of Operation - Average Balance Sheets" below.

The $1.30 billion of securities sold had a weighted average yield of 1.22% and an average duration of 3.6 years.

With the proceeds from the sale of the securities, the Company purchased $632.0 million of securities yielding 5.75%, paid down $500.0 million of borrowings with a weighted average cost of 4.70%, and held the remaining cash at the FRB of Kansas City earning interest at the reserve balance rate until such time as it could be used to fund commercial lending activities or for other Bank operations.

Strategic Banking Initiatives

The Company is committed to its progression to a full-service commercial bank and is investing in technology, people, products and services to make that happen.

Our investments in technology to date have allowed us to launch new services and products, while the addition of seasoned and well-connected commercial bankers, and trust and wealth advisors gives us access to an exciting new customer group.

Expanding our product suite of treasury management services enables us to service this new customer group, and expanded marketing and business development has increased the depth of customer relationships.

Having completed the second year since embarking on our digital transformation, we have seen our efforts bear fruit and expect progress to accelerate going forward.

Strategic Actions.

The long-term success of this transformation is predicated on management's continued focus on deepening relationships with consumer and commercial customers.

Management and the Board have committed resources through the growth of talented, skilled and experienced bankers, investments in technology, expanded marketing and outreach, as well as the development and increased internal monitoring of performance metrics that ensure we are on the path to achieve our performance objectives.

Through our experienced relationship managers, we deliver customized solutions

using advanced digital platforms, and sophisticated cash management tools.

Additionally, we are leveraging our centralized organizational structure to respond quickly to customers.

We are actively pursuing opportunities to expand our non-interest-bearing deposit base and diversify fee-based revenue streams through strategic growth in treasury management services, trust and wealth management services, insurance, and small business banking.

Commercial Lending.

During the current fiscal year, we closed on $901.9 million in commercial loans compared to $350.6 million in the prior fiscal year and commercial loans continue to grow as a percentage of our overall loan portfolio.

As of September 30, 2025, commercial loans comprised 26% of our loan portfolio compared to 19% at the prior fiscal year end.

To maintain strong credit quality, in addition to disciplined underwriting and ongoing credit administration, we monitor concentration levels by collateral type, geographic location and borrowing relationship.

During the current fiscal year, the Bank implemented commercial loan pricing and profitability software that provides insights based on the full customer banking relationship.

We also implemented software that provides market insight regarding competitor pricing to assist loan officers when preparing a loan offering.

This has increased our ability to profitably compete with other financial institutions in our markets as well as those outside our markets.

Treasury Management.

The Bank services commercial customers through a competitive suite of treasury management products and an experienced team of treasury management officers.

This team is focused on the deposit and cash management needs of commercial customers and growing this line of business through the acquisition of new customers located both in our immediate market areas, and those who we lend to outside of our local market areas.

Additionally, this fiscal year, the Bank deployed a team of business development officers tasked with growing the deposit base within the small business customer segment, focused on serving small businesses in our market areas with a dedicated line of products specifically designed for these customers.

The Bank expects to introduce digital onboarding for small business customers using industry-leading risk management and screening tools, which will replace many manual verification tasks.

Additionally, as we add more sophisticated commercial clients, we are evaluating new technology in order to capture a larger share of their business with additional products and services.

Within calendar year 2026, we expect to implement new technology for lockbox services, integrated accounts receivables, purchase cards and corporate cards.

While the majority of our commercial deposit growth in fiscal year 2025 resulted from commercial loan covenants and provisions, our treasury management officers and business development officers often land depository relationships independent of a lending relationship.

This will be a focus area for our sales teams as the Bank continues to diversify funding sources and seeks to increase fee revenue tied to depository accounts.

Digital Banking.

We are advancing towards a seamless digital banking experience for all customers, enhancing the Bank's ability to attract and retain deposits.

This strategy includes a new deposit account onboarding platform that was implemented in November 2024 and digital banking enhancements for debit cardholders which will allow customers to begin using their card immediately online and in digital wallets without waiting for the delivery of a physical card.

These enhancements are projected to be implemented in the second quarter of fiscal year 2026.

Since changing core and digital providers in August 2023, the Bank has taken advantage of our open-source platforms through the evaluation of add-on technologies that will integrate into our digital banking experience for consumers, small businesses, and commercial customers.

Private Banking, Trust and Wealth Management.

We are preparing to implement a comprehensive suite of private banking products and services which is a new line of business for the Bank.

During the fourth quarter of fiscal year 2025, the Bank added several seasoned and well-connected wealth management professionals to focus on these products and services.

Their expertise in private banking and related areas will support our new private banking efforts and is expected to transform our trust and wealth management business.

Private banking relationships are defined as customers with $5 million or more in personal relationships with the Bank by way of loans, deposits, or assets under management.

Private banking customers began onboarding during the first quarter of fiscal year 2026.

We believe that our private banking line of business will be a gateway to driving off-balance sheet revenue and bridge the gap between high-net-worth depository customers, small business owners or key commercial customers, and corporate trustee opportunities for the Bank.

Stockholder Value.

Delivering long-term sustainable stockholder value will continue to be our North Star while also maintaining a strong capital position.

As part of our historically robust and disciplined approach to capital management, our approach continues to generate returns to stockholders through dividend payments and share repurchases.

Total dividends declared and paid during fiscal year 2025 were $44.3 million.

The Company repurchased 618,260 shares for $3.9 million during fiscal year 2025, all of which occurred in the last quarter of the fiscal year.

Since completing our second-step conversion in December 2010, we have returned $2.01 billion to stockholders through $1.57 billion in cash dividends and

$439.9 million of share repurchases.

For fiscal year 2026, it is the intention of the Board of Directors to continue the regular quarterly cash dividend of $0.085 per share and to seek further opportunities for value-enhancing share repurchases.

Critical Accounting Estimates

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Allowance for Credit Losses and Reserve for Off-Balance Sheet Credit Exposures.

The ACL is a valuation amount that is deducted from the amortized cost basis of loans and represents management's estimate of lifetime credit losses expected on the Company's loan portfolio as of the balance sheet date.

The reserve for off-balance sheet credit exposures represents expected credit losses on unfunded portions of existing loans and commitments to originate or purchase loans that are not unconditionally cancellable by the Company.

Management estimates the ACL by projecting future loss rates which are dependent upon forecasted economic indices and applying qualitative factors when deemed appropriate by management.

The ACL is a valuation amount that is deducted from the amortized cost basis of loans and represents management's estimate of total expected credit losses for the Company's loans over their remaining contractual lives, as of the balance sheet date.

Management estimates the ACL utilizing a discounted cash flow model by projecting future loss rates which are dependent upon forecasted economic indices and applying qualitative factors when deemed appropriate by management.

The key assumptions used in projecting future loss rates include the economic forecast, the forecast and reversion to mean time periods, and prepayment and curtailment assumptions.

The assumptions are used to calculate and aggregate estimated cash flows for the time period that remains in each loan's contractual life.

The cash flows are discounted back to the balance sheet date using each loan's effective yield, to arrive at a present value of future cash flows, which is compared to the amortized cost basis of the loan pool to determine the amount of ACL required by the calculation.

The cash flows are discounted back to the balance sheet date using each loan's effective yield, to arrive at a present value of expected cash flows, which is compared to the amortized cost basis of the loan pool to determine the amount of ACL required by the calculation.

Management then considers qualitative factors when assessing the overall level of ACL.

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Summary of Significant Accounting Policies" for additional information.

One of the most significant judgments used in projecting loss rates when estimating the ACL and reserves for off-balance sheet credit exposures is the macroeconomic forecast provided by a third party.

The economic indices sourced from the macroeconomic forecast and used in projecting loss rates are the national unemployment rate, changes in commercial real estate prices, changes in home values, and changes in the United States gross domestic product.

One of the most significant judgments used in projecting loss rates when estimating the ACL is the macroeconomic forecast provided by a third party.

The economic indices sourced from the macroeconomic forecast and used in projecting loss rates are the national unemployment rate, changes in commercial real estate prices, changes in home values, changes in the United States consumer price index, and changes in the United States gross domestic product.

The economic index used in the calculation to which the calculation is most sensitive is the national unemployment rate.

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Management selects the macroeconomic forecast(s) that is/are most reflective of expectations at that point in time.

Changes in the macroeconomic forecast, especially for the national unemployment rate, could significantly impact the calculated estimated credit losses between reporting periods.

Other key assumptions in the calculation of the ACL and reserve for off-balance sheet credit exposures estimates include the forecast and reversion to mean time periods and prepayment and curtailment assumptions.

Changes in the macroeconomic forecast could significantly impact the calculated estimated credit losses between reporting periods.

Other key assumptions used in the discounted cash flow model include the forecast and reversion to mean time periods and prepayment and curtailment assumptions.

The calculation is less sensitive to these assumptions than the macroeconomic forecasts.

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Prepayment and curtailment assumptions are generally based on the Company's historical experience and are adjusted by management as deemed necessary.

The prepayment and curtailment assumptions vary based on loan product type.

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

The reserve for off-balance sheet credit exposures is calculated by applying the ACL to loan ratio for each respective loan pool, as calculated by the discounted cash flow model discussed above, to an adjusted off-balance sheet credit exposures balance.

The off-balance sheet credit exposures balance is adjusted to account for the likelihood that funding of the related balance will occur.

Management generally determines the likelihood of funding based on historical experience, but it may be adjusted by management as deemed necessary based upon their knowledge of the composition of the underlying off-balance sheet credit exposure balances.

The ACL and reserve for off-balance sheet credit exposures may be materially affected by qualitative factors, for items not reflected in the economic forecast and/or discounted cash flow model, but which are deemed appropriate by management's current assessment of the risks related to the loan portfolio and/or external factors.

Such qualitative factors may include changes in the Bank's loan portfolio composition and credit concentrations, changes in the balances and/or trends in asset quality and/or loan credit performance, changes in lending underwriting standards, the effect of other external factors such as significant unique events or conditions, and actual and/or expected changes in economic conditions, real estate values, and/or other economic developments.

Management applied qualitative factors at September 30, 2024 to account for large dollar commercial loan concentrations and potential downside market risk with the recent housing price appreciation related to one- to four-family loans.

Such qualitative factors may include changes in the Company's loan portfolio composition and credit concentrations, changes in the balances and/or trends in asset quality and/or loan credit performance, changes in lending underwriting standards, the effect of other external factors such as significant unique events or conditions, and actual and/or expected changes in economic conditions, real estate values, and/or other economic developments.

Management applied qualitative factors at September 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.

The qualitative factors applied at September 30, 2025, and the importance and levels of the qualitative factors applied, may change in future periods depending on the level of changes to items such as the uncertainty of economic conditions and management's assessment of the level of credit risk within the loan portfolio as a result of such changes, compared to the amount of ACL calculated by the model.

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The ACL and the reserve for off-balance sheet credit exposures were $24.0 million and $5.5 million, respectively, at September 30, 2025, compared to $23.0 million and $6.0 million, respectively, at September 30, 2024.

The decrease in the ACL between periods was mainly related to one- to four-family loans due to a decrease in the ACL to loan ratio and a decrease in overall one- to four-family loan balances, partially offset by an increase in the ACL for commercial loans due to commercial loan growth.

The $1.9 million increase in the reserve for off-balance sheet credit exposures was due primarily to an increase in the balance of off-balance sheet credit exposures and an increase in the ACL to loan ratio, which is applied to the off-balance sheet credit exposures, between periods, specifically for commercial construction loans.

See "Part II, Item 8.

Financial Statements and Supplementary Data – Notes to Consolidated Financial Statements – Note 4.

Loans Receivable and Allowance for Credit Losses - Allowance for Credit Losses" for additional information regarding the assumptions used in the Company's September 30, 2024 estimate of ACL.

During the current fiscal year, the Company updated the regression analyses used in the discounted cash flow model which resulted in some changes to the amounts and levels of ACL calculated by the model for commercial loans.

The regression analyses were updated in order to assist management in estimating expected credit losses in the commercial loan portfolio due to growth in this portfolio, including growth in market areas outside of the Bank's local market footprint.

See "Management's Discussion and Analysis of Financial Condition and Results of Operation - Allowance For Credit Losses" for additional information regarding the regression analysis update that occurred during fiscal year 2025.

While management utilizes its best judgment and information available, the adequacy of the ACL and reserve for off-balance sheet credit exposures is determined by certain factors outside of the Company's control, such as the performance of our loan portfolio, changes in the economic environment including economic uncertainty, changes in interest rates, and the view of the regulatory authorities toward classification of assets and the level of ACL and reserve for off-balance sheet credit exposures.

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Equity to total assets at end of period 10.7 % 10.8 %

Average number of basic shares outstanding 130,671 133,557 (2,886) (2.2)

Average number of diluted shares outstanding 130,671 133,557 (2,886) (2.2)

Average number of basic and diluted

shares outstanding 129,988 130,671 (683) (0.5)

Loans Receivable.

Total loans, net at September 30, 2024 were $7.91 billion, a decrease of $63.6 million from September 30, 2023.

The decrease in the loan portfolio was due mainly to a $287.2 million decrease in one- to four-family loans, partially offset by a $221.5 million increase in commercial loans.

Originating one- to four-family loans is the Bank's primary lending business.

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

In addition, the Bank historically purchased one- to four-family loans from correspondent lenders.

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

As a result of continued high interest rates and lack of housing inventory which has reduced housing market transactions, our single-family origination activity has slowed which has directly impacted the Bank's one- to four-family loan portfolio.

Origination and refinance activity has slowed considerably, and one- to four-family loan balances have been reduced through scheduled repayments and loan payoffs.

During the June 30, 2024 quarter, the Bank suspended its one- to four-family correspondent lending channels for the foreseeable future.

Management expects that the balance of one- to four-family loans will continue to decrease as a percentage of the Bank's loan portfolio as cash flows generated from one- to four-family loans are used to fund commercial loan growth.

As noted above, the Bank suspended its one- to four-family correspondent lending channels for the foreseeable future during the current year.

The Bank originates or participates with other lenders in commercial loans, either secured by real estate or for commercial and industrial purposes, and first mortgages on owner-occupied, one- to four-family residences.

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

The Bank historically purchased loans secured by one- to four-family residences from correspondent lenders but suspended that line of business during fiscal year 2024.

During fiscal year 2025, the loan portfolio mix continued to shift from one- to four-family loans to commercial loans.

Total loans, net at September 30, 2025 were $8.11 billion, an increase of $204.6 million from September 30, 2024.

The increase in the loan portfolio was due mainly to a $607.0 million increase in commercial loans, partially offset by a $400.0 million decrease in one-to four-family loans.

As a result of continued high interest rates and a lack of housing inventory, which has reduced the volume of housing market transactions, our one- to four-family origination and refinance activity has slowed, directly impacting the Bank's one- to four-family loan portfolio.

Management expects the Bank's one- to four-family originated loan portfolio will continue to decrease as the affordability of housing remains challenging, there is a limited supply of homes for sale and we compete with nationwide online mortgage originators.

It is expected that cash flows generated from the repayments of our one- to four-family portfolio will continue to be used to fund commercial loan growth.

The Bank originates one- to four-family loans primarily in our market areas of Kansas and Missouri.

The balance of originated one- to four-family loans was $3.77 billion as of September 30, 2025 and represented 64% of the Bank's one- to four-family loan portfolio.

The Bank previously purchased one- to four-family loans, on a loan-by-loan basis, from a select group of correspondent lenders ("correspondent purchased").

Loan purchases enabled the Bank to attain geographic diversification in the one- to four-family loan portfolio.

Loan purchases enabled the Bank to attain geographic diversification in its one- to four-family loan portfolio.

We generally paid a premium of 0.50% to 1.00% of the loan balance to purchase these loans, and 1.00% of the loan balance to purchase the servicing of these loans.

The premium paid is amortized against the interest earned over the life of the loan, which reduces the loan yield.

If a loan pays off before the scheduled maturity date, the remaining premium is recognized as reduction in interest income.

In the past, the Bank has also purchased one- to four-family loans from correspondent and nationwide lenders in bulk loan packages ("bulk purchased").

The majority of the Bank's bulk purchased loans were guaranteed by one seller.

If a loan pays off before the scheduled maturity date, the remaining premium is recognized as a reduction of interest income.

At September 30, 2025 the balance of one- to four-family correspondent purchased loans was $2.00 billion, or 34% of the Bank's one- to four-family loan portfolio, and is included in the one- to four-family purchased amount in the tables below.

As noted above, the Bank suspended its one- to four-family correspondent lending channels during fiscal year 2024.

The Bank also previously purchased one- to four-family loans from correspondent and nationwide lenders in bulk loan packages.

The majority of the Bank's bulk purchased loans as of September 30, 2025 are guaranteed by one seller.

The Bank has not experienced any losses with this group of loans since the loan package was purchased in August 2012.

At September 30, 2025 the balance of one- to four-family bulk purchased loans was $114.2 million and is included in the one- to four-family purchased amount in the tables below.

The Bank originates owner-occupied construction-to-permanent loans secured by one- to four-family residential real estate.

The majority of these loans are secured by property located within the Bank's Kansas City market area.

The majority of these loans are secured by properties located in Kansas and Missouri.

The Bank's owner-occupied construction-to-permanent loan program combines the construction loan and the permanent loan into one loan, allowing the borrower to secure the same interest rate structure throughout the construction period and the permanent loan term.

The Bank offers a variety of secured consumer loans, including home equity loans and lines of credit, home improvement loans, vehicle loans, and loans secured by savings deposits.

The Bank also originates a very limited amount of unsecured loans.

Generally, consumer loans are originated in the Bank's market areas.

The majority of our consumer loan portfolio is comprised of home equity lines of credit, which have adjustable interest rates.

For a majority of the home equity lines of credit, the Bank has the first mortgage or the Bank is in the first lien position.

The Bank's commercial loan portfolio is composed of commercial real estate loans, commercial construction loans and commercial and industrial loans.

Our commercial real estate loans include a variety of property types, including multi-family dwellings, senior housing facilities, hotels, retail buildings, and office buildings located in Kansas, Texas, and Missouri, and 15 other states.

Our commercial real estate loans include a variety of property types, including hotels, senior housing facilities, multi-family dwellings, retail buildings, and office buildings located in Kansas, Missouri, Texas, and 19 other states as of September 30, 2025.

The Bank's commercial and industrial loan portfolio consists largely of loans secured by accounts receivable, inventory and equipment.

These loans are generally made to borrowers and secured by assets located in the Bank's market area.

These loans are generally made to borrowers located in Kansas and Missouri.

The Bank regularly monitors the level of risk in the entire commercial loan portfolio, including concentrations in such factors as geographic location, collateral type, tenant profile, borrowing relationship, and lending relationship in the case of participation loans, among other factors.

Commercial borrowers are generally required to provide financial information annually, including borrower financial statements, subject property rental rates and income, maintenance costs, updated real estate property tax and insurance payments, and personal financial information for the guarantor(s).

6 unchanged sentences

These reports are required to be provided by the borrowers monthly, quarterly, or annually depending on the nature of the borrowing relationship.

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

The Bank offers a variety of secured consumer loans, including home equity loans and lines of credit, home improvement loans, vehicle loans, and loans secured by savings deposits.

The Bank also originates a very limited amount of unsecured loans.

Generally, consumer loans are originated in the Bank's market areas.

The majority of our consumer loan portfolio is comprised of home equity lines of credit, which have adjustable interest rates.

As of September 30, 2025, the Bank had the first mortgage, or was in the first lien position on the majority of the unpaid principal balance of the Bank's home equity lines of credit.

The following table presents information related to the composition of our loan portfolio in terms of dollar amounts, weighted average rates, and percentage of total as of the dates indicated.

4 unchanged sentences

Originated $ 3,774,134 3.78 % $ 3,941,952 3.60 %

Correspondent purchased 2,212,587 3.48 2,405,911 3.44

Bulk purchased 127,161 2.80 137,193 1.85

Purchased 2,114,447 3.49 2,339,748 3.44

Construction 16,054 6.17 22,970 6.05

2 unchanged sentences

Commercial and industrial 210,119 6.92 129,678 6.66

Construction 187,676 6.40 178,746 5.01

Commercial construction 195,886 6.42 187,676 6.40

Total 2,115,995 5.98 1,508,978 5.65

17 unchanged sentences

Originated $ 1,788 3.57 % $ 58,749 3.21 % $ 1,040,213 3.11 % $ 2,673,384 4.09 % $ 3,774,134 3.81 %

Correspondent purchased 43 3.02 16,997 2.59 375,859 2.46 1,819,688 3.57 2,212,587 3.38

Bulk purchased 6 7.06 234 5.12 26,033 4.54 100,888 2.46 127,161 2.89

Purchased 88 3.07 24,086 2.62 354,073 2.60 1,736,200 3.57 2,114,447 3.39

Construction (2)

3 unchanged sentences

Commercial and industrial 59,556 7.20 84,635 7.45 60,929 6.20 4,999 4.58 210,119 6.95

Construction (2)

Commercial construction (2)

21,630 7.24 112,138 5.87 53,668 7.28 8,450 7.72 195,886 6.49

17 unchanged sentences

Originated $ 3,329,965 $ 442,381 $ 3,772,346

Correspondent purchased 1,836,292 376,252 2,212,544

Bulk purchased 3,671 123,484 127,155

Purchased 1,668,898 445,461 2,114,359

Construction 7,908 8,146 16,054

2 unchanged sentences

Commercial and industrial 54,580 95,983 150,563

Construction 74,805 101,857 176,662

Commercial construction 63,566 110,690 174,256

Total 561,490 1,357,172 1,918,662

21 unchanged sentences

Ending balance $ 8,133,875 4.34 $ 7,923,251 4.02

The following table presents loan origination, refinance, and purchase/participation activity for the periods indicated, excluding endorsement activity, along with associated weighted average rates and percent of total.

The following table presents loan origination, refinance, and participation activity for the periods indicated, excluding endorsement activity, along with associated weighted average rates and percent of total.

Commercial loan renewals are not included in the activity in the following table except to the extent new funds are disbursed at the time of renewal.

Loan originations, purchases/participations, and refinances are reported together.

Loan originations, participations, and refinances are reported together.

For the Year Ended

2 unchanged sentences

(Dollars in thousands)

One- to four-family $ 207,757 6.39 % 29.3 % $ 404,598 5.47 % 25.7 %

One- to four-family construction 24,578 6.56 3.5 39,599 5.72 2.5

Real estate 7,920 7.63 1.1 43,408 7.48 2.7

Commercial real estate

Fixed-rate $ 155,315 6.53 % 12.4 % $ 7,920 7.63 % 1.1 %

Adjustable-rate 373,526 6.85 29.8 114,502 7.56 16.2

528,841 6.76 42.2 122,422 7.57 17.3

Commercial and industrial

Construction 3,632 7.07 0.5 149,046 5.89 9.5

Home equity 8,402 9.00 1.2 6,080 8.20 0.4

Consumer other 2,975 7.22 0.4 4,620 6.93 0.3

Total fixed-rate 277,515 6.58 39.1 687,589 5.87 43.7

Fixed-rate 102,489 7.20 8.2 22,251 6.96 3.1

Adjustable-rate 75,375 7.34 6.0 49,593 7.65 7.0

177,864 7.26 14.2 71,844 7.44 10.1

Commercial construction

Fixed-rate 26,235 6.69 2.1 3,632 7.07 0.5

Adjustable-rate 168,957 7.27 13.5 152,739 7.96 21.6

195,192 7.19 15.6 156,371 7.94 22.1

Total commercial

Fixed-rate 284,039 6.79 22.7 33,803 7.13 4.8

Adjustable-rate 617,858 7.02 49.3 316,834 7.77 44.7

901,897 6.95 72.0 350,637 7.71 49.5

One- to four-family and consumer:

One- to four-family

One- to four-family construction 16,875 6.51 2.4 28,545 5.22 1.8

Real estate 114,502 7.56 16.2 223,910 5.60 14.2

Commercial and industrial 49,593 7.65 7.0 57,295 7.28 3.6

Construction 152,739 7.96 21.5 177,471 6.22 11.3

Home equity 40,248 9.39 5.7 55,896 8.43 3.6

Consumer other 3,267 5.42 0.5 1,635 4.25 0.1

Total adjustable-rate 431,134 7.68 60.9 886,845 5.75 56.3

Total originated, refinanced and purchased/participations $ 708,649 7.25 100.0 % $ 1,574,434 5.81 100.0 %

Purchased and participation loans included above:

Correspondent purchased - one- to four-family $ 2,978 6.43 $ 199,858 5.20

Participations and purchases - commercial 4,400 7.08 19,016 9.43

Total fixed-rate purchased/participations 7,378 6.82 218,874 5.57

Fixed-rate 181,667 6.18 14.5 232,335 6.41 32.8

Adjustable-rate 109,599 6.17 8.7 70,785 6.40 10.0

Correspondent purchased - one- to four-family 519 2.93 215,939 4.86

Participations and purchases - commercial 39,815 8.04 209,259 6.36

Total adjustable-rate purchased/participations 40,334 7.98 425,198 5.60

Total purchased/participation loans $ 47,712 7.80 $ 644,072 5.59

One- to Four-Family Loans - The following table presents, for our portfolio of one- to four-family loans, the amount, percent of total, weighted average rate, weighted average credit score, weighted average loan-to-value ("LTV") ratio, and average balance per loan as of September 30, 2024.

291,266 6.17 23.2 303,120 6.40 42.8

Fixed-rate 8,034 8.08 0.6 11,377 8.54 1.6

Adjustable-rate 52,703 8.18 4.2 43,515 9.09 6.1

60,737 8.17 4.8 54,892 8.98 7.7

Total one- to four-family and consumer

Fixed-rate 189,701 6.26 15.1 243,712 6.50 34.4

Adjustable-rate 162,302 6.82 12.9 114,300 7.43 16.1

352,003 6.52 28.0 358,012 6.80 50.5

Total commercial, one- to four-family, and consumer

Fixed-rate 473,740 6.57 37.8 277,515 6.58 39.2

Adjustable-rate 780,160 6.98 62.2 431,134 7.68 60.8

$ 1,253,900 6.83 100.0 % 708,649 7.25 100.0 %

Commercial participations included above:

Fixed-rate $ 34,500 6.93 % $ 4,400 7.08 %

Adjustable-rate 69,931 7.19 39,815 8.04

$ 104,431 7.10 $ 44,215 7.95

One- to Four-Family Loans - The following table presents, for our portfolio of one- to four-family loans, the amount, percent of total, weighted average rate, weighted average credit score, weighted average LTV, and average balance per loan as of September 30, 2025.

Credit scores were updated in September 2025 from a nationally recognized consumer rating agency.

The LTV ratios were based on the current loan balance and either the lesser of the purchase price or original appraisal, or the most recent Bank appraisal, if available.

The LTVs were based on the current loan balance and either the lesser of the purchase price or original appraisal, or the most recent Bank appraisal, if available.

In most cases, the most recent appraisal was obtained at the time of origination.

3 unchanged sentences

Originated $ 3,774,134 63.9 % 3.78 % 770 58 % $ 170

Correspondent purchased 2,212,587 35.1 3.48 767 63 404

Bulk purchased 127,161 2.0 2.80 772 54 280

Purchased 2,114,447 35.8 3.49 768 60 382

Construction 16,054 0.3 6.17 775 45 334

$ 5,904,635 100.0 % 3.68 769 59 213

The following table presents originated and correspondent purchased activity in our one- to four-family loan portfolio, excluding endorsement activity, along with associated weighted average rates, weighted average LTV ratios and weighted average credit scores for the current year.

The following table presents origination and refinance activity for our one- to four-family loan portfolio, excluding endorsement activity, along with the weighted average rate, weighted average LTV and weighted average credit score for the current fiscal year.

As of September 30, 2025, the Bank had one- to four-family loan and refinance commitments totaling $42.0 million at a weighted average rate of 6.29%.

Amount Rate LTV Score

(Dollars in thousands)

Originated $ 299,623 6.41 % 75 % 770

Correspondent purchased 3,497 5.91 70 765

$ 291,266 6.17 % 74 % 768

As of September 30, 2024, the Bank had one- to four-family loan origination and refinance commitments of $46.3 million at a weighted average rate of 6.10%.

There were no one- to four-family correspondent loan purchase commitments at September 30, 2024, as during the current year the Bank suspended purchasing one- to four-family loans from correspondent lenders.

Commercial Loans - During the year ended September 30, 2024, the Bank originated commercial loans and entered into commercial loan participations totaling $350.6 million, which was comprised of $156.4 million in commercial construction real estate loans, $122.4 million in commercial real estate loans, and $71.8 million in commercial and industrial loans.

During the current fiscal year, the Bank also processed commercial loan disbursements, excluding lines of credit, of approximately $326.7 million at a weighted average rate of 6.58%, which included $245.0 million, $60.1 million, and $21.6 million of disbursements on new and existing commercial construction, commercial real estate, and commercial and industrial loans, respectively.

As of September 30, 2024 and September 30, 2023, the Bank's commercial and industrial gross loan amounts (unpaid principal plus undisbursed amounts) totaled $163.6 million and $158.5 million, respectively, and commitments totaled $3.2 million and $2.6 million, respectively.

Of the $163.6 million outstanding at September 30, 2024, $74.1 million, or 46%, of the portfolio related to working capital loans, $43.8 million, or 27%, related to financing/leasing/purchasing vehicles and equipment, and $37.9 million, or 24%, related to purchasing/refinancing business/assets.

Commercial Loans - The table below presents commercial loan origination and participation activity for the year ended September 30, 2025, along with weighted average LTV and weighted average DSCR.

For commercial real estate and commercial construction loans, the LTV is calculated using the gross loan amount (composed of unpaid principal and undisbursed amounts) and the collateral value at the time of origination.

For existing real estate, the "as is" value is used.

If the property is to be constructed, the "as completed" value of the collateral is utilized.

The DSCR is calculated based on historical borrower performance, or projected borrower performance for newly formed entities with no performance history.

Originated Participation Total Weighted Weighted

Amount Rate Amount Rate Amount Rate LTV DSCR

(Dollars in thousands)

Commercial real estate $ 493,115 6.74 % $ 35,726 7.02 % $ 528,841 6.76 % 62 % 1.66x

Commercial and industrial 176,964 7.26 900 7.25 177,864 7.26 N/A 2.32

Commercial construction 127,387 7.22 67,805 7.14 195,192 7.19 75 1.50

$ 797,466 6.93 $ 104,431 7.10 $ 901,897 6.95 65 1.76

The following table presents commercial loan disbursements, excluding lines of credit, during the year ended September 30, 2025.

(Dollars in thousands)

Commercial real estate $ 533,719 6.64 %

Commercial and industrial 107,841 7.31

Commercial construction 211,824 6.68

$ 853,384 6.73

The following table presents the Bank's commercial real estate and commercial construction loans by type of primary collateral as of the dates indicated.

As of September 30, 2024, the Bank had 12 commercial real estate and commercial construction loan commitments totaling $186.1 million, at a weighted average rate of 7.19%.

Management anticipates fully funding the majority of the undisbursed amounts, as most are not cancellable by the Bank.

Of the total commercial real estate and commercial construction undisbursed amounts and commitments outstanding as of September 30, 2024, management anticipates funding approximately $150 million during the December 2024 quarter, $78 million during the March 2025 quarter, $83 million during the June 2025 quarter, and $149.7 million during the September 2025 quarter or later.

At September 30, 2024, the unpaid principal balance of non-owner occupied commercial real estate loans was $886.1 million and the unpaid principal balance of owner occupied commercial real estate loans was $165.3 million, which are included in the table below.

September 30, 2025 September 30, 2024

2 unchanged sentences

(Dollars in thousands)

Multi-family 38 $ 172,674 $ 187,033 $ 359,707 $ 308,846

Senior housing 36 327,144 5,190 332,334 331,207

Hotel 28 $ 545,782 $ 57,342 $ 603,124 $ 323,396

Senior housing 52 464,611 19,348 483,959 332,334

Multi-family 34 262,414 102,902 365,316 359,707

Retail building 134 285,159 49,506 334,665 316,261

1 unchanged sentence

One- to four-family property 316 66,112 4,308 70,420 63,416

Single use building 32 43,176 262 43,438 47,193

Warehouse/manufacturing 45 55,181 3,672 58,853 34,656

Land 25 34,829 776 35,605 32,943

Single use building 26 33,456 262 33,718 43,438

Other 34 27,016 1,176 28,192 29,070

1 unchanged sentence

Weighted average rate 5.88 % 6.90 % 5.99 % 5.77 %

The following table summarizes the Bank's commercial real estate and commercial construction loans by state as of the dates indicated.

The following table presents the unpaid principal balance of non-owner occupied and owner occupied loans within the Bank's commercial real estate loan portfolio as of the dates indicated.

September 30, 2025 September 30, 2024

(Dollars in thousands)

Non-owner occupied $ 1,271,905 $ 886,101

Owner occupied $ 167,925 $ 165,334

The following table presents management's funding expectations for the Bank's commercial real estate and commercial construction undisbursed amounts and commitments outstanding as of September 30, 2025.

Due to the nature of a revolving line of credit, management is unable to project funding expectations for those balances, so those amounts are presented separately.

Projected Disbursements for the Quarters Ending

2025 March 31,

2026 June 30,

2026 Thereafter Revolving Lines of Credit Total

(Dollars in thousands)

Undisbursed amounts $ 75,856 $ 61,735 $ 50,395 $ 48,684 $ 7,364 $ 244,034

Commitments 39,606 9,250 27,000 85,038 — 160,894

$ 115,462 $ 70,985 $ 77,395 $ 133,722 $ 7,364 $ 404,928

Weighted average rate 6.71 % 6.97 % 6.94 % 6.89 % 7.32 % 6.87 %

The following table summarizes the Bank's commercial real estate and commercial construction loans by the state in which the collateral is located, as of the dates indicated.

September 30, 2025 September 30, 2024

Unpaid Undisbursed Gross Loan Gross Loan

2 unchanged sentences

Kansas 562 $ 738,887 $ 60,940 $ 799,827 $ 713,437

Texas 21 301,486 46,580 348,066 348,707

Missouri 125 305,078 49,694 354,772 313,146

Texas 21 289,481 23,324 312,805 348,066

Arizona 6 105,934 16,495 122,429 15,452

New York 2 109,828 — 109,828 60,000

California 5 90,256 6,592 96,848 15,040

Colorado 13 58,341 25,858 84,199 50,017

Arkansas 5 35,522 1,066 36,588 33,046

Tennessee 4 41,495 15,286 56,781 35,973

Nebraska 7 17,068 27,139 44,207 32,422

California 2 12,271 2,769 15,040 —

Other 24 149,508 18,706 168,214 79,629

769 $ 1,905,876 $ 244,034 $ 2,149,910 $ 1,663,182

The following table presents the Bank's commercial real estate and commercial construction loans by unpaid principal balance, aggregated by type of primary collateral and state, along with weighted average LTV ratio and weighted average debt service coverage ratio ("DSCR") as of September 30, 2024.

The LTV ratio is calculated using the gross loan amount (composed of unpaid principal and undisbursed amounts) as of September 30, 2024 and the most current collateral value available, which is most often the value at origination/purchase.

For existing real estate, the "as is" value is used.

If the property is to be constructed, the "as completed" value of the collateral is utilized.

The DSCR is calculated based on historical borrower performance, or projected borrower performance for newly formed entities with no performance history.

The DSCR is calculated at the time of origination, and is updated at the time of subsequent loan renewals or reviews of borrower financials.

The DSCR presented in the table below is based on the DSCR at the time of origination unless an updated DSCR has been calculated.

As of September 30, 2024 approximately 50% of the loans, based on unpaid principal balance, had updated DSCRs.

Weighted Weighted

Kansas Texas Missouri New York Other Total LTV DSCR

The following table presents the Bank's commercial real estate and commercial construction loans by unpaid principal balance, aggregated by type of primary collateral and state, along with weighted average LTV and weighted average DSCR as of September 30, 2025.

The LTV is calculated using the gross loan amount (composed of unpaid principal and undisbursed amounts) as of September 30, 2025 and the most current collateral value available, which is most often the value at origination/purchase.

The DSCR is calculated at the time of origination and is updated at the time of subsequent loan renewals, financial reviews (for applicable loans and lending relationships), and any other time management is aware of changes that may impact the DSCR.

The DSCR presented in the table below is based on the DSCR at the time of origination unless an updated DSCR has been calculated or the loan has reached the end of its stabilization period.

In general, commercial borrowers with total loans of $2.5 million or more are reviewed at least annually to monitor financial performance.

Kansas Missouri Texas New York Arizona California Other Total

(Dollars in thousands)

Senior Housing $ 161,146 $ — $ 109,820 $ — $ 56,178 $ 327,144 70.2 % 1.41x

Hotel $ 41,385 $ 18,059 $ 141,960 $ 109,828 $ 102,093 $ 85,935 $ 46,522 $ 545,782

Senior housing 249,912 142,168 — — — — 72,531 464,611

Retail building 91,574 44,050 66,714 — — — 82,821 285,159

1 unchanged sentence

Office building 57,441 7,945 59,907 — 142 — 5,881 131,316

One- to four-family property 44,922 4,592 — — 3,325 1,620 11,653 66,112

Warehouse/manufacturing 35,269 16,729 — — — — 3,183 55,181

Land 7,039 153 900 — — — 26,737 34,829

Single use building 12,126 18,255 — — 374 2,701 — 33,456

Other 13,404 4,809 — — — — 8,803 27,016

1 unchanged sentence

Weighted LTV 66% 68% 52% 47% 51% 50% 66% 61%

Weighted DSCR 2.05x 1.50x 2.18x 1.18x 1.74x 1.87x

The following table presents the Bank's commercial real estate and construction loans and outstanding loan commitments, categorized by aggregate gross loan amount (unpaid principal plus undisbursed amounts) or outstanding loan commitment amount, average loan amount, weighted average LTV ratio and weighted average DSCR, as of September 30, 2024.

See information above for the weighted average LTV ratio and DSCR calculations.

For loans and commitments over $50.0 million, $182.2 million were related to hotels in California, New York, and Texas, $143.1 million were related to multi-family properties located in Kansas, and $60.0 million was related to an office building in Texas.

Average Weighted Weighted

Count Amount Amount LTV DSCR

Weighted DSCR 1.84x 1.54x 1.41x 1.55x 1.44x 1.49x 1.69x 1.65x

The following table presents the unpaid principal balance of the Bank's commercial real estate and commercial construction loans aggregated by type of primary collateral, along with weighted average rate, LTV, and DSCR as of September 30, 2025.

Unpaid Weighted Weighted Weighted

Count Principal Rate LTV DSCR

(Dollars in thousands)

Hotel 28 $ 545,782 6.46 % 52 % 1.32x

Senior housing 52 464,611 5.11 73 1.52

Retail building 134 285,159 5.32 60 2.02

Multi-family 34 262,414 6.09 64 1.27

Office building 75 131,316 6.44 53 1.94

One- to four-family property 316 66,112 6.08 57 2.42

Warehouse/manufacturing 45 55,181 6.28 65 2.40

Land 25 34,829 6.53 68 3.95

Single use building 26 33,456 6.17 62 1.94

Other 34 27,016 5.84 54 2.05

769 $ 1,905,876 5.88 61 1.65

The following table presents the Bank's commercial real estate and construction loans, including unpaid principal and undisbursed amounts, along with outstanding loan commitments as of September 30, 2025, categorized by aggregate gross loan and commitment amount, along with average loan amount, and weighted average rate, LTV, and DSCR.

For loans over $50.0 million, there was $266.5 million of such loans related to hotels in Arizona, California, New York, and Texas, $143.1 million related to multi-family properties in Kansas, and $59.5 million related to an office building in Texas.

The largest loan included in the table below was $86.0 million, which was fully disbursed as of September 30, 2025, and is collateralized by a hotel in Arizona.

and Commitment Average Weighted Weighted Weighted

Count Amounts Amount Rate LTV DSCR

(Dollars in thousands)

Greater than $50 million 7 $ 469,057 $ 67,008 6.31 % 54.4 % 1.37x

7 unchanged sentences

778 $ 2,310,804 2,970 6.05 62.3 1.60

The following table summarizes the Bank's commercial and industrial loans by loan purpose as of the dates indicated.

Of the $301.9 million of commercial and industrial loans at September 30, 2025, 63%, or $190.2 million, had a gross loan balance of $5 million or more.

The largest commercial and industrial lending relationship at September 30, 2025 had a gross loan balance of $81.7 million, which represented 27% of the gross commercial and industrial loan balance at September 30, 2025.

This lending relationship is part of the $103.2 million loans- to one-borrower group discussed in "Part I.

Business - Regulation and Supervision." In addition, the Bank had four commercial and industrial loan commitments totaling $15.7 million, with a weighted average rate of 7.03%, at September 30, 2025.

No commitments are presented in the table below.

The recent growth in this portfolio aligns with the Bank's strategy to grow all aspects of commercial banking.

Management anticipates growth will continue in the commercial and industrial loan portfolio, but it will likely fluctuate over time due to the nature of these loans.

September 30, 2025 September 30, 2024

Unpaid Undisbursed Gross Loan Gross Loan

Count Principal Amount Amount Amount

(Dollars in thousands)

Working capital 193 $ 79,264 $ 74,703 $ 153,967 $ 74,097

Purchase equipment 64 47,043 7,158 54,201 15,457

Purchase/refinance business assets 47 45,579 4,226 49,805 37,950

Finance/lease vehicle 190 33,631 2,775 36,406 28,318

Other 20 4,602 2,906 7,508 7,735

514 $ 210,119 $ 91,768 $ 301,887 $ 163,557

Weighted average rate 6.92 % 7.10 % 6.97 % 6.89 %

The following table summarizes the Bank's commercial and industrial loans by the state in which the borrower is located, as of September 30, 2025.

Unpaid Undisbursed Gross Loan

Principal Amount Amount

(Dollars in thousands)

Kansas $ 122,547 $ 82,061 $ 204,608

Missouri 37,788 170 37,958

Arizona 12,099 — 12,099

Ohio 5,865 4,135 10,000

California 7,882 2,000 9,882

Other 23,938 3,402 27,340

$ 210,119 $ 91,768 $ 301,887

The following table presents the Bank's commercial and industrial loan portfolio, including unpaid principal and undisbursed amounts, along with outstanding loan commitments as of September 30, 2025, categorized by aggregate gross loan and commitment amounts and average loan amount.

For loans over $15.0 million, there was $54.7 million related to working capital loans in Kansas and $29.9 million related to a loan to purchase equipment in Missouri.

The largest loan included in the table below was $36.0 million, of which $28.6 million was undisbursed as of September 30, 2025.

The loan is for working capital purposes and the borrower is located in Kansas.

This loan is part of the $103.2 million loans- to one-borrower group discussed in "Part I.

Business - Regulation and Supervision."

and Commitment Average

Count Amounts Amount DSCR

(Dollars in thousands)

Greater than $15 million 3 $ 84,619 $ 28,206 1.56x

>$10 to $15 million 3 36,325 12,108 2.37

>$5 to $10 million 10 79,288 7,929 1.46

>$1 to $5 million 24 55,827 2,326 9.38

>$500 thousand to $1 million 30 21,983 733 4.75

Less than $500 thousand 448 39,574 88 3.87

518 $ 317,616 613 3.51

Asset Quality

Delinquent and nonaccrual loans and other real estate owned ("OREO").

Delinquent and nonaccrual loans and OREO.

The following table presents the Company's 30 to 89 day delinquent loans at the dates indicated.

1 unchanged sentence

Of the loans 30 to 89 days delinquent at September 30, 2025 and 2024, approximately 49% and 66%, respectively, were 59 days or less delinquent.

The increase in commercial real estate loans that were 30 to 89 days delinquent from September 30, 2023 was not due to one underlying reason.

Management is working closely with the borrowers to address payment issues.

September 30,

Number Amount Number Amount

Count Amount Count Amount

(Dollars in thousands)

1 unchanged sentence

Originated 68 $ 7,338 69 $ 8,884

Correspondent purchased 12 3,049 17 5,192

Bulk purchased 2 68 1 149

Construction — — 4 1,123

Purchased 13 3,221 14 3,117

Commercial real estate 7 1,236 11 2,996

9 unchanged sentences

Non-performing assets include nonaccrual loans and OREO.

The increase in nonaccrual commercial real estate loans less than 90 days delinquent from September 30, 2024 to September 30, 2025 was due primarily to two participation loans related to the same borrowing relationship that were moved to substandard during the current fiscal year.

See the asset classification discussion below for additional information regarding these loans.

September 30,

Number Amount Number Amount

Count Amount Count Amount

(Dollars in thousands)

2 unchanged sentences

Originated 29 $ 2,754 29 $ 2,274

Correspondent purchased 8 4,024 9 3,410

Bulk purchased 5 1,535 2 942

Purchased 6 1,524 13 5,559

Commercial real estate 11 3,123 7 1,163

5 unchanged sentences

Nonaccrual loans less than 90 Days Delinquent:

One- to four-family:

Originated — $ — 2 $ 215

Correspondent purchased — — 1 282

Bulk purchased — — — —

Commercial real estate 3 $ 40,249 3 $ 326

Commercial and industrial 2 109 2 252

Consumer — — — —

5 40,358 5 578

Total nonaccrual loans 63 48,063 76 10,092

2 unchanged sentences

Originated (2)

Correspondent purchased — — 1 219

1 $ 62 1 $ 55

Consumer 1 135 — —

Total non-performing assets 65 $ 48,260 77 $ 10,147

Non-performing assets as a percentage of total assets 0.49 % 0.11 %

(1) Includes loans required to be reported as nonaccrual pursuant to accounting and/or internal policies, even if the loans are current.

(1) Includes loans required to be reported as nonaccrual pursuant to internal policies, even if the loans are current.

(2) Real estate-related consumer loans where we also hold the first mortgage are included in the one- to four-family category as the underlying collateral is one- to four-family property.

The following table presents the states where the properties securing ten percent or more of the total amount of our one- to four-family loans, excluding construction loans, are located and the corresponding balance of loans 30 to 89 days delinquent, 90 or more days delinquent or in foreclosure, and weighted average LTV ratios for loans 90 or more days delinquent or in foreclosure at September 30, 2024.

The following table presents the states where the properties securing ten percent or more of the total amount of the Bank's one- to four-family loans, excluding construction loans, are located and the corresponding balance of loans 30 to 89 days delinquent, 90 or more days delinquent or in foreclosure, and weighted average LTV for loans 90 or more days delinquent or in foreclosure at September 30, 2025.

The amounts in the table represent the unpaid principal balance of the loans, less related charge-offs, if any.

The LTV ratios were based on the current loan balance and either the lesser of the purchase price or original appraisal, or the most recent Bank appraisal, if available.

At September 30, 2024, potential losses, after taking into consideration anticipated private mortgage insurance proceeds and estimated selling costs, have been charged-off.

The LTVs were based on the current loan balance and either the lesser of the purchase price or original appraisal, or the most recent Bank appraisal, if available.

Loans 30 to 89 Loans 90 or More Days Delinquent

6 unchanged sentences

$ 5,904,635 100.0 % $ 10,559 100.0 % $ 4,278 100.0 % 50

Classified Assets.

The following table presents the unpaid principal balance of commercial real estate loans, aggregated by state, that were 30 to 89 days delinquent or 90 or more days delinquent or in foreclosure, and the weighted average LTV and weighted average DSCR for loans 90 or more days delinquent or in foreclosure at September 30, 2025.

See additional discussion regarding the Bank's commercial real estate loan DSCRs and LTVs in the "Management's Discussion and Analysis of Financial Condition and Results of Operation - Loans Receivable - Commercial Loans" section above.

Loans 30 to 89 Loans 90 or More Days Delinquent

Days Delinquent or in Foreclosure

State Amount % of Total Amount % of Total LTV DSCR

(Dollars in thousands)

Kansas $ 1,236 100.0 % $ 2,907 93.1 % 50 % 2.14x

Other states — — 216 6.9 19 1.84

$ 1,236 100.0 % $ 3,123 100.0 % 48 2.12

Classified Loans.

In accordance with the Bank's asset classification policy, management regularly reviews the problem assets in the Bank's portfolio to determine whether any assets require classification.

2 unchanged sentences

Loans Receivable and Allowance for Credit Losses" for asset classification definitions.

The following table presents loans classified as special mention or substandard at the dates presented.

The amounts in the table represent the unpaid principal balance of the loans less related charge-offs, if any.

The increase in commercial real estate special mention loans at September 30, 2024 compared to September 30, 2023 was due mainly to three loans moving to special mention during the current year as certain underlying economic considerations related to the loans are being monitored by management.

The decrease in commercial and industrial special mention loans at September 30, 2024 compared to September 30, 2023 was due mainly to two loans being upgraded to pass due to an improvement in financial results.

The following table presents the amortized cost of loans classified as special mention or substandard at the dates presented.

See below for further discussion on the changes in commercial real estate loan classifications across periods.

September 30, 2025 September 30, 2024

6 unchanged sentences

$ 73,773 $ 66,961 $ 34,436 $ 25,839

Special Mention:

The increase in commercial real estate special mention loans at September 30, 2025 compared to September 30, 2024 was due mainly to a $36.3 million hotel participation loan and a $15.3 million CRA loan that were classified as special mention at September 30, 2025.

The $36.3 million hotel participation loan is taking longer than anticipated to stabilize.

During fiscal year 2025, the loan was classified as substandard but the borrower took actions during the last quarter of fiscal year 2025 to strengthen the credit and the occupancy and cashflow for the hotel continued to improve, so the classification was changed to special mention as of

September 30, 2025.

As of September 30, 2025, the loan was not delinquent and the Bank's LTV was 44% based on an appraisal completed approximately two years ago.

The $15.3 million CRA loan was classified as special mention at September 30, 2025 because the underlying property has been slow to stabilize and the borrower was delinquent on payments during the current fiscal year;

however, the loan has never been 90 or more days delinquent and was not delinquent at September 30, 2025.

Based on the original appraisal completed approximately four years ago, the Bank's LTV was 76% as of September 30, 2025.

The increase in substandard commercial real estate loans at September 30, 2025 compared to September 30, 2024 was due mainly to two participation loans related to the same borrowing relationship, totaling $40.2 million as of September 30, 2025 and secured by a hotel.

The borrower is working on a recapitalization plan which is anticipated to be completed later in calendar year 2025 or early in calendar year 2026.

During the quarter ended June 30, 2025, the Bank entered into an agreement with the borrower which allows the borrower to not make payments on these loans until later in calendar year 2025 to allow time to complete the recapitalization process.

As a result, the loans were considered nonaccrual and classified as substandard as of September 30, 2025.

The loans were not delinquent at September 30, 2025 due to the terms of the agreement.

As of September 30, 2025, the combined Bank LTV on the loans was 45% based on an appraisal completed in the past six months.

The Bank has had a participation relationship with the lead bank of these two loans for over ten years, and the Bank holds the same percentage interest in the loans as the lead bank.

Both loans are recourse with a personal guaranty and have strong LTVs.

The borrower group (developer, owner and guarantors) are seasoned commercial real estate developers with over 40 years of experience.

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

Allowance for Credit Losses.

12 unchanged sentences

Originated $ 1,730 0.05 % 7.2 % 46.4 % $ 1,650 0.04 % 7.2 % 49.8 %

Correspondent purchased 1,861 0.08 8.1 27.9 2,972 0.12 12.4 30.1

Bulk purchased 146 0.11 0.6 1.6 207 0.15 0.9 1.7

Purchased 1,298 0.06 5.4 26.0 2,007 0.09 8.7 29.5

Construction 18 0.11 0.1 0.2 16 0.07 0.1 0.3

Total 3,046 0.05 12.7 72.6 3,673 0.06 16.0 79.6

Real estate 15,719 1.32 68.2 15.0 15,589 1.57 65.6 12.5

Commercial real estate 15,809 0.92 65.7 21.0 15,719 1.32 68.2 15.0

Commercial and industrial 2,499 1.19 10.4 2.6 1,186 0.91 5.1 1.6

Construction 2,249 1.20 9.8 2.4 1,487 0.83 6.3 2.2

Commercial construction 2,468 1.26 10.3 2.4 2,249 1.20 9.8 2.4

Total 20,776 0.98 86.4 26.0 19,154 1.27 83.1 19.0

4 unchanged sentences

$ 24,039 0.30 % 100.0 % 100.0 % $ 23,035 0.29 % 100.0 % 100.0 %

The increase in the ratio of ACL to total loans as of September 30, 2205 compared to September 30, 2024 was due primarily to changes in the loan portfolio mix due to the continued growth in commercial loans which have a higher ACL to total loan ratio than one- to four-family loans.

The increase was partially offset by the regression analyses update discussed in "Management's Discussion and Analysis of Financial Condition and Results of Operations - Critical Accounting Estimates".

Based on management's evaluation of the credit risk within the Bank's commercial real estate loan portfolio, taking into consideration DSCRs and LTVs, management believes the Bank's ACL ratio for commercial real estate loans is appropriate for the related credit risk.

Historically, the Bank has maintained very low delinquency ratios and NCO rates.

1 unchanged sentence

The highest such ratio for one- to four-family originated and correspondent loans, combined, was 0.12%.

The amount of total NCOs during fiscal year 2024 was $111 thousand.

During the 10-year period ended September 30, 2024, the Bank recognized $1.4 million of total NCOs.

As of September 30, 2024, the ACL balance was $23.0 million and the reserve for off-balance sheet credit exposures totaled $6.0 million.

Management believes that this level of ACL and reserves is adequate for the risk characteristics in our loan portfolio.

The Bank's commercial real estate ACL ratios, in aggregate, continue to be higher than those of our peers.

The following tables present the average and median commercial real estate ACL ratios for the Bank and two of the Bank's peer groups at the month ends for the periods noted.

The OCC peer group consists of all savings banks greater than $1 billion in assets and the Asset Size peer group consists of all banks between $5 billion and $15 billion in asset size.

The peer group information is sourced from the respective peers' Call Reports.

Average September

2022 December

2023 September

2023 December

2024 September

Bank 1.17 % 1.30 % 1.28 % 1.45 % 1.57 % 1.58 % 1.60 % 1.57 % 1.32 %

OCC 0.96 0.92 1.21 1.22 1.21 1.14 1.10 1.11 N/A

Asset Size 1.17 1.18 1.18 1.19 1.24 1.16 1.16 1.15 N/A

Median September

2022 December

2023 September

2023 December

2024 September

Bank 1.17 % 1.30 % 1.28 % 1.45 % 1.57 % 1.58 % 1.60 % 1.57 % 1.32 %

OCC 0.90 0.84 1.00 0.98 1.06 1.02 0.98 1.02 N/A

Asset Size 1.13 1.15 1.13 1.12 1.12 1.10 1.13 1.06 N/A

The amount of total NCOs during the current fiscal year was $198 thousand.

The majority of the NCOs during the current fiscal year related to one single-family bulk purchased loan.

During the 10-year period ended September 30, 2025, the Bank recognized $999 thousand of total NCOs.

As of September 30, 2025, the ACL balance was $24.0 million and the reserve for off-balance sheet credit exposures totaled $5.5 million, which management believes is adequate for the credit risk characteristics in our loan portfolio.

The following table presents ACL activity and related ratios at the dates and for the periods indicated.

16 unchanged sentences

ACL to loans receivable, net at end of period 0.30 0.29 0.30

ACL at end of period to NCOs during the period 207x 223x N/M

The ratio of NCOs to average non-performing assets during the current year was higher than the prior year due to higher NCOs compared to the prior year.

The ratio of ACL to nonaccrual loans was lower at the end of the current year compared to the prior year-end due to a higher balance of nonaccrual loans and a lower ACL balance.

The decrease in the ratio of the ACL to total loans as of September 30, 2024 from September 30, 2023 was due mainly to a decrease in the one- to four-family ACL to loan ratio and a decrease in overall one- to four-family loan balances, partially offset by an increase in the ACL for commercial loans due to commercial loan growth.

The ratio of ACL at end of period to NCOs during the period was lower in the current year due to higher NCOs along with a lower ACL balance compared to the prior year.

ACL at end of period to NCOs during the period 121x 207x 223x

The ratio of NCOs to average non-performing assets during the current fiscal year was lower than the prior fiscal year due to a higher balance of non-performing assets compared to the prior fiscal year.

The ratio of ACL to nonaccrual loans was lower at the end of the current fiscal year compared to the prior fiscal year due to a higher balance of nonaccrual loans.

See the "Delinquent and nonaccrual loans and OREO" discussion above for additional discussion regarding the increase in nonaccrual loans from the prior fiscal year.

The increase in the ratio of the ACL to total loans as of September 30, 2025 from September 30, 2024 is discussed above.

The ratio of ACL at end of period to NCOs during the period was lower in the current fiscal year due to higher NCOs.

See "Part II, Item 8.

8 unchanged sentences

Originated $ (16) $ 3,842,213 — % $ (28) $ 3,951,870 — % $ (6) $ 3,981,468 — %

Correspondent — 2,340,841 — — 2,428,257 — — 2,072,677 —

Bulk purchased — 132,460 — — 143,105 — — 159,152 —

Purchased 113 2,256,624 0.01 — 2,473,301 — — 2,571,362 —

Construction — 17,158 — — 33,101 — — 65,741 —

Total 97 6,115,995 — (28) 6,458,272 — (6) 6,618,571 —

Real estate 80 1,073,219 0.01 (1) 875,850 — (101) 692,115 (0.01)

Commercial real estate (20) 1,452,288 — 80 1,073,219 0.01 (1) 875,850 —

Commercial and industrial 36 151,126 0.02 (5) 120,354 — 75 93,840 0.08

Construction — 184,848 — — 181,141 — — 117,878 —

Commercial construction — 176,620 — — 184,848 — — 181,141 —

Total 16 1,780,034 — 75 1,378,421 0.01 74 1,150,831 0.01

3 unchanged sentences

$ 198 $ 8,007,431 — $ 111 $ 7,944,050 — $ 106 $ 7,872,418 —

While management utilizes its best judgment and information available, the adequacy of the ACL and reserve for off-balance sheet credit exposures is determined by certain factors outside of the Company's control, such as the performance of our loan portfolio, changes in the economic environment including economic uncertainty, changes in interest rates, and the view of regulatory authorities toward classification of assets and the level of ACL and reserve for off-balance sheet credit exposures.

Additionally, the level of ACL and reserve for off-balance sheet credit exposures may fluctuate based on the balance and mix of the loan portfolio and off-balance sheet credit exposures.

If actual results differ significantly from our assumptions, our ACL and reserve for off-balance sheet credit exposures may not be sufficient to cover inherent losses in our loan portfolio, resulting in additions to our ACL and an increase in the provision for credit losses.

The following table presents the distribution of our securities portfolio, at amortized cost, at the dates indicated.

The majority of our securities are government guaranteed or issued by Government Sponsored Enterprises ("GSEs").

Overall, fixed-rate securities comprised 91% of our securities portfolio at September 30, 2025.

5 unchanged sentences

MBS $ 843,369 5.45 % 4.8 $ 756,775 5.63 % 5.7

Government-sponsored enterprises ("GSE") debentures 69,077 5.63 0.4 479,610 0.64 1.9

GSE debentures — — — 69,077 5.63 0.4

Corporate bonds 4,000 5.12 6.6 4,000 5.12 7.6

Municipal bonds — — — 942 2.55 6.9

$ 847,369 5.45 4.8 $ 829,852 5.63 5.2

The composition and maturities of the securities portfolio at September 30, 2024 is indicated in the following table by remaining contractual maturity, without consideration of call features or pre-refunding dates, along with associated weighted average yields.

The weighted average yields are current yields and includes the amortization of premiums or discounts and are calculated by multiplying each estimated fair value by its current yield and dividing the sum of these results by the total estimated fair value.

Yields on tax-exempt investments are not calculated on a fully tax equivalent basis .

The composition and maturities of the securities portfolio, based on estimated fair value, at September 30, 2025 is indicated in the following table by remaining contractual maturity, without consideration of call features or pre-refunding dates, along with associated weighted average yields.

The weighted average yields are current yields and include the amortization of premiums or discounts and are calculated by multiplying each estimated fair value by its current yield and dividing the sum of these results by the total estimated fair value.

There were no tax-exempt investments at September 30, 2025.

1 year or less More than 1 to 5 years More than 5 to 10 years Over 10 years Total Securities

4 unchanged sentences

MBS $ 51 2.79 % $ 70,303 5.46 % $ 192,462 5.83 % $ 600,684 5.33 % $ 863,500 5.45 %

GSE debentures — — 10,000 5.52 59,305 5.64 — — 69,305 5.63

Corporate bonds — — — — 3,716 5.12 — — 3,716 5.12

$ 51 2.79 $ 70,303 5.46 $ 196,178 5.81 $ 600,684 5.33 $ 867,216 5.45

The following table summarizes the activity in our securities portfolio for the periods presented.

The following table summarizes the activity in our securities portfolio based on the estimated fair value, which is also the carrying value, for the periods presented.

The weighted average yields for the beginning and ending balances are as of the first and last days of the periods presented and are generally derived from recent prepayment activity on the securities in the portfolio.

13 unchanged sentences

Total liabilities were $8.73 billion at September 30, 2025, compared to $8.50 billion at September 30, 2024.

The decrease was due primarily to a decrease in borrowings as some of the funds from the securities strategy were used to repay all $500.0 million of outstanding borrowings under the BTFP, partially offset by an increase in deposits.

The $235.7 million increase was due primarily to a $461.5 million increase in deposits, partially offset by a $228.8 million decrease in borrowings.

The following table presents the amount, weighted average rate and percent of total for the components of our deposit portfolio at the dates presented.

Total deposits increased from September 30, 2023, primarily in retail certificates of deposit, all in the 14 months or shorter term category, partially offset by a decrease in retail money market accounts, as some customers elected to move funds to the Bank's certificate of deposit offerings or the Bank's higher yielding savings account offering.

The amount of commercial non-maturity deposits included in the table below at September 30, 2024 and 2023 was $259.7 million and $267.3 million, respectively.

The increase in the deposit portfolio rate at September 30, 2024 compared to September 30, 2023 was due mainly to higher rates on retail certificates of deposit.

The increase in deposits during the current fiscal year was due primarily to the Bank's high yield savings account offering, which increased $364.5 million during the current fiscal year.

The decrease in the deposit portfolio rate at September 30, 2025 compared to September 30, 2024 was due mainly to lower rates on retail certificates of deposit.

At September 30,

3 unchanged sentences

Interest-bearing checking 859,256 0.21 13.0 847,542 0.23 13.8

High yield savings 460,712 3.88 7.0 96,241 4.09 1.6

Other savings 423,942 0.07 6.5 444,331 0.11 7.2

Money market 1,233,487 1.29 18.7 1,226,962 1.46 20.0

Certificates of deposit 3,012,680 3.74 45.7 2,965,310 4.25 48.4

$ 6,591,448 2.26 100.0 % $ 6,129,982 2.45 100.0 %

The following table presents the amount, weighted average rate, and percent of total for the components of our deposit portfolio, split between retail non-maturity deposits, commercial non-maturity deposits, and certificates of deposit at the dates presented.

At September 30,

Amount Rate Total Amount Rate Total

(Dollars in thousands)

Retail non-maturity deposits:

Non-interest-bearing checking $ 409,722 — % 6.2 % $ 418,790 — % 6.8 %

Interest-bearing checking 790,783 0.08 12.0 799,407 0.10 13.0

High yield savings 460,712 3.88 7.0 96,241 4.09 1.6

Other savings 420,330 0.07 6.4 441,265 0.11 7.2

Money market 1,050,841 1.07 15.9 1,149,212 1.37 18.7

Total 3,132,388 0.96 47.5 2,904,915 0.73 47.4

Commercial non-maturity deposits:

Non-interest-bearing checking 191,649 — 2.9 130,806 — 2.1

Interest-bearing checking 68,473 1.72 1.0 48,135 2.40 0.8

Savings 3,612 0.05 0.1 3,066 0.05 0.1

Money market 182,646 2.52 2.8 77,750 2.72 1.3

Total 446,380 1.29 6.8 259,757 1.26 4.2

Certificates of deposit:

Retail certificates of deposit 2,828,982 3.73 43.0 2,830,579 4.23 46.2

1 unchanged sentence

Public unit certificates of deposit 121,879 4.06 1.8 76,495 4.62 1.2

Total 3,012,680 3.74 45.7 2,965,310 4.25 48.4

$ 6,591,448 2.26 100.0 % $ 6,129,982 2.45 100.0 %

During the current year, management sought to grow certificates of deposit with terms of 14 months or less by offering market competitive rates.

We focused on terms that should allow us to price down certificates of deposit as and when the FRB reduces overnight rates, which first occurred in September 2024 and occurred again in November 2024.

The weighted average maturity ("WAM") of our retail certificate of deposit portfolio as of September 30, 2024 was approximately 10 months.

Our retail certificate of deposit retention rate has been approximately 87% over the past 12-months.

Additionally, management focused on retaining and growing deposits through the introduction of a high-yield savings account early in fiscal year 2024 which had an annual percentage yield of 4.30% for balances over $10 thousand as of September 30, 2024.

The high-yield savings account balance was $96.2 million as of September 30, 2024.

Of this amount, approximately 45% relates to existing Bank customers increasing their balances during the year by bringing in funds from outside the Bank, approximately 40% is from internal Bank transfers from other deposit products, largely the money market portfolio, and the remaining 15% is composed of new deposit relationships.

During the current fiscal year, management focused on retaining and growing deposits through the high-yield savings account which was introduced in fiscal year 2024.

As of September 30, 2025, the Bank's high yield savings account offering had an annual percentage yield of 4.00% for accounts that meet the $10 thousand minimum balance requirement.

The high-yield

savings account balance was $460.7 million as of September 30, 2025 compared to $96.2 million as of September 30, 2024.

Of the $364.5 million increase, approximately 50% related to existing Bank customers increasing their balances during the year by bringing funds from outside the Bank, approximately 40% was from internal Bank transfers from other deposit products, and the remainder was composed of new deposit relationships.

While there is an immediate repricing and increase in cost on internal transfers within the Bank, we believe we have captured rate sensitive money by offering this product, rather than having those funds leave the Bank.

As of September 30, 2024 and 2023, approximately $766.8 million (or approximately 12%) and $789.0 million (or approximately 13%), respectively, of the Bank's Call Report deposit balance was uninsured.

Of the $766.8 million at September 30, 2024, approximately $460.1 million related to commercial and retail deposit accounts, with the remainder mainly comprised of fully collateralized public unit deposits and intercompany accounts.

The following table presents the amount, weighted average rate, and percent of total for total retail deposits, commercial deposits, and public unit certificates of deposit at the dates noted.

At September 30,

Amount Rate Total Amount Rate Total

(Dollars in thousands)

Total retail deposits $ 5,961,370 2.28 % 90.5 % $ 5,735,494 2.46 % 93.6 %

Total commercial deposits 508,199 1.58 7.7 317,993 1.84 5.2

Public unit certificates of deposit 121,879 4.06 1.8 76,495 4.62 1.2

Total $ 6,591,448 2.26 % 100.0 % $ 6,129,982 2.45 % 100.0 %

As of September 30, 2025, approximately $990.2 million (or approximately 15%) of the Bank's Call Report deposit balance was uninsured, of which approximately $567.3 million (or approximately 8% of the Bank's Call Report deposit balance) related to commercial and retail deposit accounts, with the remainder mainly comprised of fully collateralized public unit deposits and intercompany accounts.

The uninsured amounts are estimates based on the methodologies and assumptions used for the Bank's regulatory reporting requirements.

4 unchanged sentences

Over 12 months 154,972

Total borrowings at September 30, 2024 were $2.18 billion, which was comprised of $1.98 billion in fixed-rate FHLB advances, $200.0 million in FHLB variable-rate advances tied to interest rate swaps, and $1.1 million in finance leases.

Borrowings decreased $699.6 million from September 30, 2023 as some of the funds from the securities strategy were used to repay all $500.0 million of outstanding borrowings under the BTFP and not all maturing FHLB borrowings were replaced during the current fiscal year.

The following table presents the maturity of term borrowings, which consist of FHLB advances, along with associated weighted average contractual and effective rates as of September 30, 2024.

Amortizing FHLB advances are presented based on their maturity dates versus their quarterly scheduled repayment dates.

Total borrowings at September 30, 2025 were $1.95 billion, which was comprised of $1.85 billion in fixed-rate FHLB advances, $100.0 million in variable-rate FHLB advances tied to interest rate swaps, and $1.1 million in finance leases.

Borrowings decreased $228.8 million from September 30, 2024 due to principal repayments made on the Bank's amortizing advances, along with borrowings that matured but were not replaced.

Cash flows from the deposit portfolio were used to pay off maturing FHLB borrowings during the current fiscal year.

The following table presents the maturity of term borrowings, which consist of FHLB advances, along with the associated weighted average contractual and effective rates as of September 30, 2025.

Amortizing FHLB advances totaling $276.0 million are presented based on their maturity dates versus their quarterly scheduled repayment dates.

Maturity by Contractual Effective

12 unchanged sentences

The effective rate is shown as a weighted average and includes the impact of interest rate swaps and the amortization of deferred prepayment penalties resulting from FHLB advances previously prepaid.

The WAM is the remaining weighted average contractual term in years.

The weighted average maturity ("WAM") is the remaining weighted average contractual term in years.

The beginning and ending WAMs represent the remaining maturity at each date presented.

During the current year, management paid down BTFP borrowings with the proceeds received from the securities strategy.

For the Year Ended September 30,

5 unchanged sentences

New FHLB borrowings 650,000 4.13 2.9 325,000 4.54 4.4

BTFP, net (500,000) 4.70 — 500,000 4.70 1.0

Bank Term Funding Program ("BTFP"), net — — — (500,000) 4.70 —

Ending balance $ 1,950,984 3.54 1.5 $ 2,180,656 3.29 1.6

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

The weighted average effective interest rate of the new advances was 3.93%, which includes the impact of deferred prepayment penalties being recognized over the life of the new advances.

This activity is reflected in the table above.

In October 2025, the Bank refinanced a $50.0 million fixed-rate advance with a weighted average effective rate of 4.03% and a WAL of 0.5 year, and replaced it with a $50.0 million fixed-rate advance with a weighted average effective rate of 3.64% and a WAL of 2.0 years.

The weighted average effective rate includes the impact of the deferred prepayment penalty that will be recognized over the life of the new advance.

Management will continue to monitor opportunities for wholesale funding and may pay down FHLB advances in future periods.

The Bank may also renew certain fixed-rate advances in the future using adjustable-rate advances in order to better match the repricing characteristics of its increasing commercial loan portfolio.

Leverage Strategy

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The leverage strategy is not a core operating business for the Company.

It provides the Company the ability to utilize excess capital to generate earnings.

It provides the Company with the ability to utilize excess capital to generate earnings.

Additionally, it is a strategy that can be exited quickly without additional costs.

The profitability of the leverage strategy is attributable to net income derived from the dividends received on the increased FHLB stock holdings, plus the net interest rate spread between the yield on the leverage strategy cash at the FRB and the rate paid on the leverage strategy FHLB borrowings, less applicable FDIC premiums and estimated income tax expense.

Leverage strategy borrowings are repaid prior to each quarter end so there is no impact to

quarter end capital ratios.

The leverage strategy was not in place at any time during the current year due to the strategy being unprofitable, but it was in place at points during the prior year.

During the prior year, the average balance of cash associated with the leverage strategy was $882.8 million and interest earned on that cash was $37.8 million, the average balance of FHLB stock associated with the leverage strategy was $41.6 million and dividends earned on that stock were $3.6 million, and the average balance of FHLB borrowings associated with the leverage strategy was $924.4 million and the related interest expense was $39.7 million.

Additionally, the Company recognized $406 thousand of FDIC premiums and $215 thousand of income tax expense during the prior year related to the leverage strategy.

Leverage strategy borrowings are repaid prior to each quarter end so there is no impact to quarter end capital ratios.

The leverage strategy was not in place at any time during the current fiscal year or fiscal year 2024 due to the strategy being unprofitable, but it was in place at points during fiscal year 2023.

During fiscal year 2023, the average balance of cash associated with the leverage strategy was $882.8 million and interest earned on that cash was $37.8 million, the average balance of FHLB stock associated with the leverage strategy was $41.6 million and dividends earned on that stock were $3.6 million, and the average balance of FHLB borrowings associated with the leverage strategy was $924.4 million and the related interest expense was $39.7 million.

Additionally, the Company recognized $406 thousand of FDIC premiums and $215 thousand of income tax expense during fiscal year 2023 related to the leverage strategy.

When the leverage strategy is in place, it reduces the net interest margin due to the amount of earnings from the transaction in comparison to the size of the transaction.

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Maturities of Interest-Bearing Liabilities.

The following table presents the maturity and weighted average repricing rate, which is also the weighted average effective rate, of certificates of deposit, split between retail/commercial and public unit amounts, and non-amortizing term borrowings for the next four quarters as of September 30, 2024.

The following table presents the maturity and weighted average repricing rate, which is also the weighted average effective rate, of certificates of deposit, split between retail/commercial and public unit amounts, and non-amortizing FHLB advances for the next four quarters as of September 30, 2025.

December 31, March 31, June 30, September 30,

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Stockholders' equity totaled $1.05 billion at September 30, 2025.

During the year ended September 30, 2024, the Company repurchased $19.3 million of shares and paid regular quarterly cash dividends totaling $44.5 million, or $0.34 per share.

On October 22, 2024, the Company announced a regular quarterly cash dividend of $0.085 per share, or approximately $11.1 million, payable on November 15, 2024 to stockholders of record as of the close of business on November 1, 2024.

Consistent with our goal to operate a sound and profitable financial organization, we actively seek to maintain a well-capitalized status for the Bank in accordance with regulatory standards.

As of September 30, 2024, the Bank's capital ratios exceeded the well-capitalized requirements and the Bank exceeded all internal policy thresholds for sensitivity to changes in rates.

Consistent with our goal to operate a sound and profitable financial organization that delivers long-term stockholder value, we actively seek to maintain a well-capitalized status for the Bank in accordance with regulatory standards.

As of September 30, 2025, the Bank's capital ratios exceeded the well-capitalized requirements, and the Bank exceeded internal policy thresholds for sensitivity to changes in interest rates.

As of September 30, 2025, the Bank's community bank leverage ratio was 9.6%.

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Regulatory Capital Requirements" for additional regulatory capital information.

During the current year, the Company repurchased 3,280,110 shares of common stock at an average price of $5.87 per share.

These repurchases occurred in the first half of the current year.

The Company currently has $75.0 million authorized for repurchase under existing stock repurchase plans.

The FRB's current approval for the Company to repurchase shares up to the $75.0 million authorization expires in February 2025.

During the current fiscal year, the Company paid regular quarterly cash dividends totaling $44.3 million, or $0.34 per share.

On October 28, 2025, the Company announced a regular cash dividend of $0.085 per share, or approximately $11.0 million, payable on November 21, 2025 to stockholders of record as of the close of business on November 7, 2025.

The Company repurchased 618,260 shares of common stock at an average price of $6.23 per share during the current fiscal year, all in the fourth fiscal quarter.

Subsequent to September 30, 2025 and through November 21, 2025, the Company repurchased 400,000 shares at an average price of $6.25 per share.

The Company currently has $68.6 million remaining authorized under its existing stock repurchase plan.

Shares may be repurchased from time to time based upon market conditions, available liquidity and other factors.

Based on the Company's accumulated earnings and profits at the beginning of its 2024 tax year and the current year tax earnings and profits deficit as a result of the losses associated with the securities strategy (See "Comparison of Operating Results for the Years Ended September 30, 2024 and 2023 - Income Tax Expense" below), the Company believes that all dividends paid to stockholders by the Company during fiscal year 2024 should be treated as a return of capital, pursuant to Internal Revenue Code Section 301(c)(2), which reduced the tax basis in the stockholders' shares by the amount of the dividend received.

Stockholders should consult their own tax advisors to determine the income tax consequences of their specific situation.

The Company is providing this for informational purposes only and not as legal or tax advice.

Based on the Company's proposed actions for fiscal year 2025 (as discussed further below), the Company anticipates that the majority, if not all, of the dividend payments to Company stockholders in fiscal year 2025 will be treated as dividends for U.S.

federal income tax purposes.

At September 30, 2024, Capitol Federal Financial, Inc.

at the holding company level, had $50.1 million in cash on deposit at the Bank.

Given the amount of cash at the holding company level, and in an effort to minimize the tax associated with the pre-1988 bad debt recapture, it is currently the intention of management and the Board of Directors to not distribute earnings from the Bank to the Company during fiscal year 2025.

Although our existing repurchase plan has no expiration date, we are required to annually seek the FRB's non-objection for the buyback amount.

The FRB's current non-objection for the Company to repurchase up to $75 million of stock expires in February 2026.

The Board of Directors continues to evaluate various alternatives for capital allocation to enhance stockholder value, including the repurchase of stock, the payment of additional cash dividends, or retaining earnings to support future growth.

Since our second-step conversion in December 2010, we have returned $2.01 billion in capital to stockholders through dividends totaling $1.57 billion and stock repurchases totaling $439.9 million.

This is supported by our holistic approach to managing the balance sheet through continuous modeling of the Bank's performance, risk management, our commitment to credit quality and periodic stress testing.

For fiscal year 2026, it is the current intention of the Board of Directors to continue to pay a regular quarterly dividend of $0.085 per share.

To the extent that earnings in fiscal year 2026 exceed $0.34 per share, the Board of Directors may consider the payment of additional dividends.

Dividend payments depend upon a number of factors, including the Company's financial condition and results of operations, regulatory capital requirements, regulatory limitations on the Bank's ability to make capital distributions to the Company, the Bank's current tax earnings and accumulated earnings and profits, and the amount of cash at the holding company level.

Through the payment of the True Blue dividend in prior years, the Company was able to provide stockholder value by reducing its excess capital.

The last True Blue dividend occurred in fiscal year 2022.

Management and the Board of Directors believe that a tier 1 leverage ratio of about 9% is appropriate to manage the risk profile of the Company.

At September 30, 2025, the Bank's Tier 1 leverage ratio was 9.6%.

At September 30, 2025, Capitol Federal Financial, Inc., at the holding company level, had $17.6 million in cash on deposit at the Bank.

During the fourth quarter of the current fiscal year, the Bank distributed $14.0 million from the Bank to the Company, which was the only distribution from the Bank to the Company during the current fiscal year.

Distributions from the Bank to the Company during the current fiscal year were limited due to the tax associated with the pre-1988 bad debt recapture which is related to the Bank's tax accumulated earnings and profits.

See additional information regarding the pre-1988 bad debt recapture in "Part II, Item 8.

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Income Taxes".

It is currently anticipated that the Bank will have sufficient taxable income during fiscal year 2025 to replenish tax accumulated earnings and profits to a positive level, allowing the Bank to make earnings distributions to the Company during fiscal year 2026 and not be taxed on those distributions.

For fiscal year 2025, it is the intention of the Company's Board of Directors to pay out the regular quarterly cash dividend of $0.085 per share, totaling $0.34 per share for the year.

To the extent that earnings in fiscal year 2025 exceed $0.34 per share, the Board of Directors will consider the payment of additional dividends.

Dividend payments depend upon a number of factors, including the Company's financial condition and results of operations, regulatory capital requirements, regulatory limitations on the Bank's ability to make capital distributions to the Company, the Bank's taxable current earnings and accumulated earnings and profits, and the amount of cash at the holding company level.

During the fourth quarter of the current fiscal year, the Bank reached a point where there was sufficient taxable income earned to replenish the Bank's tax accumulated earnings and profits to a positive level, allowing the Bank to make a distribution to the Company and not have that distribution subject to the pre-1988 bad debt recapture tax.

Due to the Bank's expected continuing positive tax accumulated earnings and profit balance, it is anticipated that the Bank will be in a position to make earnings distributions to the Company during fiscal year 2026.

Earnings distributions from the Bank to the Company will be limited to the extent necessary to prevent the Bank from re-entering a negative accumulated earnings and profit position and have to pay the pre-1988 bad debt recapture tax on earnings moved from the Bank to the Company.

Currently, the Company’s priorities for the use of cash are for cash dividends, share repurchases and operations.

The amount of cash available to the Company is dependent upon distributions from the Bank.

The Bank’s distributions to the Company are limited based upon the Bank’s balance of tax accumulated earnings and profit as the Bank will incur income tax expense related to the pre-1988 bad debt reserves if the tax accumulated earnings and profit balance is negative.

Paying distributions to the Company in excess of Bank earnings may result in the Bank’s balance of tax accumulated earnings and profit becoming negative.

The amount of cash available for share repurchases and for dividends in excess of the Board’s and management’s current intention of $0.085 per share per quarter is limited to the earnings distributed from the Bank to the Company less the amount of dividends paid, which was $44.3 million in fiscal year 2025, as well as the need to replenish the cash balance at the Company to be in compliance with Board policies.

The following table presents regular quarterly cash dividends and special cash dividends paid in calendar years 2025, 2024, and 2023.

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Quarter ended December 31 11,017 0.085 11,061 0.085 11,308 0.085

True-up dividends paid — — — — 37,701 0.280

True Blue Capitol dividends paid — — — — 27,143 0.200

Calendar year-to-date dividends paid $ 44,208 $ 0.340 $ 44,275 $ 0.340 $ 45,271 $ 0.340

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Originated $ 3,859,371 $ 145,552 3.77 % $ 3,984,971 $ 142,011 3.56 %

Correspondent purchased 2,340,841 76,493 3.27 2,428,257 76,335 3.14

Bulk purchased 132,460 2,999 2.26 143,105 1,923 1.34

Purchased 2,256,624 73,932 3.28 2,473,301 79,492 3.21

Total one- to four-family loans 6,115,995 219,484 3.59 6,458,272 221,503 3.43

Commercial loans:

Commercial real estate 1,452,288 82,426 5.60 1,074,424 59,154 5.42

Commercial and industrial 151,126 10,396 6.78 119,156 7,897 6.52

Commercial construction 176,620 11,333 6.33 184,841 10,991 5.85

Total commercial loans 1,780,034 104,155 5.77 1,378,421 78,042 5.57

Consumer loans 111,402 8,879 7.97 107,357 9,162 8.53

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FHLB stock 97,054 8,997 9.27 106,064 10,009 9.44

106,064 10,009 9.44 157,925 13,821 8.75

Cash and cash equivalents 185,052 8,368 4.46 286,988 15,728 5.39

286,988 15,728 5.39 998,793 43,796 4.32

Total interest-earning assets 9,187,532 399,519 4.33 9,137,263 376,843 4.11

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Checking $ 874,377 2,010 0.23 $ 873,097 1,978 0.23

Savings 493,456 1,826 0.37 525,423 488 0.09

High yield savings 283,605 11,492 4.05 31,345 1,297 4.14

Other savings 437,766 335 0.08 462,111 529 0.11

Money market 1,237,612 15,643 1.26 1,302,817 22,333 1.71

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Borrowings 2,108,626 72,946 3.46 2,338,222 75,233 3.21

2,338,222 75,233 3.21 3,658,015 124,250 3.38

Total interest-bearing liabilities 7,869,299 219,208 2.78 7,851,296 214,782 2.73

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Efficiency ratio (9)(10)

66.91 (626.63)

Pre-tax yield on leverage strategy (13)

(1) Balances are adjusted for unearned loan fees and deferred costs.

Loans that are 90 or more days delinquent are included in the loans receivable average balance with a yield of zero percent.

(2) AFS securities are adjusted for unamortized purchase premiums or discounts.

(3) The average balance of investment securities includes an average balance of nontaxable securities of $51 thousand and $1.0 million for the years ended September 30, 2024 and 2023, respectively.

(4) There was no FHLB stock related to the leverage strategy for the year ended September 30, 2024.

Included in this line, for the year ended September 30, 2023, is FHLB stock related to the leverage strategy with an average outstanding balance of $41.6 million and dividend income of $3.6 million, at a weighted average yield of 8.69%, and FHLB stock not related to the leverage strategy with an average outstanding balance of $116.3 million, and dividend income of $10.2 million, at a weighted average yield of 8.77%.

(5) There was no cash and cash equivalents related to the leverage strategy during the year ended September 30, 2024.

The average balance of cash and cash equivalents includes an average balance of cash related to the leverage strategy of $882.8 million and interest income of $37.8 million, at a weighted average yield of 4.22% during the year ended September 30, 2023.

(6) There were no borrowings related to the leverage strategy during the year ended September 30, 2024.

Included in this line, for the year ended September 30, 2023 are FHLB borrowings related to the leverage strategy with an average outstanding balance of $924.4 million and interest paid of $39.7 million, at a weighted average rate of 4.24%, and borrowings not related to the leverage strategy with an average outstanding balance of $2.73 billion, and interest paid of $84.5 million, at a weighted average rate of 3.08%.

The FHLB advance amounts and rates included in this line include the effect of interest rate swaps and are net of deferred prepayment penalties.

(2) AFS security yields are based upon amortized cost which is adjusted for premiums and discounts.

(3) There were no nontaxable securities in the average balance of securities for the year ended September 30, 2025.

The average balance of investment securities includes an average balance of nontaxable securities of $51 thousand for the year ended September 30, 2024.

(4) Net interest income represents the difference between interest income earned on interest-earning assets and interest paid on interest-bearing liabilities.

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(5) Net interest margin represents net interest income as a percentage of average interest-earning assets.

Management believes the net interest margin is important to investors as it is a profitability measure for financial institutions.

Management believes that the net interest margin is important to investors as it is a profitability measure for financial institutions.

(6) Return on average assets represents net income as a percentage of total average assets.

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A lower value generally indicates that it is costing the financial institution less money to generate revenue, related to its net interest margin and non-interest income.

(13) The pre-tax yield on the leverage strategy represents pre-tax income resulting from the transaction as a percentage of the average interest-earning assets associated with the transaction.

Management believes this ratio is important to investors as it provides the yield the Company is earning on the leverage strategy transaction.

(14) The table below provides a reconciliation between performance measures presented in accordance with accounting standards generally accepted in the United States of America ("GAAP") and the same performance measures excluding the impact of the net loss on the securities transactions associated with the securities strategy, which are not presented in accordance with GAAP.

(10) The table below provides a reconciliation between performance measures presented in accordance with accounting principles generally accepted in the United States of America ("GAAP") and the same performance measures absent the impact of the net loss on the securities transactions associated with the securities strategy, which are not presented in accordance with GAAP.

The securities strategy was non-recurring in nature;

therefore management believes it is meaningful to investors to present certain financial measures excluding the securities strategy to better evaluate the Company's core operations.

See information regarding the securities strategy in the "Executive Summary" discussion above.

therefore, management believes it is meaningful to investors to present certain financial measures without the securities strategy to better evaluate the Company's core operations.

See information regarding the securities strategy in the "Management's Discussion and Analysis of Financial Condition and Results of Operation - Executive Summary" discussion above.

For the Year Ended September 30, 2024

Without Without

Securities Securities

Actual Securities Strategy Actual Securities Strategy

(GAAP) Strategy (Non-GAAP) (GAAP) Strategy (Non-GAAP)

Actual Securities Strategy

(GAAP) Strategy (Non-GAAP)

Return on average assets 0.40 % (0.10 %) 0.50 %

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Efficiency Ratio 66.91 4.94 61.97

Earnings per share (15)

$ 0.29 $ (0.08) $ 0.37

(15) Earnings per share is calculated as net income divided by average shares outstanding.

Management believes earnings per share is an important measure to investors as it shows the Company's earnings in relation to the Company's outstanding shares.

(11) EPS is calculated as net income divided by average shares outstanding.

Management believes EPS is an important measure to investors as it shows the Company's earnings in relation to the Company's outstanding shares.

Comparison of Operating Results for the Years Ended September 30, 2025 and 2024

The Company recognized net income of $38.0 million, or $0.29 per share, for the current year, compared to net loss of $101.7 million, or $(0.76) per share, for the prior year.

The net loss in the prior year resulted from a $192.6 million impairment loss ($145.6 million net of tax) on the securities associated with the securities strategy.

See additional discussion regarding the securities strategy in the "Executive Summary" section above.

The securities associated with the securities strategy were sold in the first quarter of fiscal year 2024 resulting in $13.3 million ($10.0 million net of tax) of net losses related to the sale.

Excluding the effects of the net loss associated with the securities strategy, earnings per share would have been $0.37 for the current year and $0.33 for the prior year.

The increase in earnings per share excluding the effects of the net losses associated with the securities strategy was due primarily to higher net interest income and a lower provision for credit losses in the current year, partially offset by higher income tax expense.

Periodically, at management's discretion, we have utilized the leverage strategy to increase earnings which entails entering into short-term FHLB borrowings and depositing the proceeds from these FHLB borrowings, net of the purchases of FHLB stock made to meet FHLB stock holding requirements, at the FRB.

See additional information regarding the leverage strategy in the "Financial Condition - Borrowings" section above.

When the leverage strategy is in place, it reduces the net interest margin due to the amount of earnings from the transaction in comparison to the size of the transaction.

The net interest margin increased 34 basis points, from 1.43% for the prior year to 1.77% for the current year.

The leverage strategy negatively impacted the net interest margin for the prior year by 12 basis points.

The remaining improvement in the net interest margin absent the leverage strategy was due to higher yields on securities and loans which outpaced the increase in the cost of deposits, largely in retail certificates of deposit.

The Company recognized net income of $68.0 million, or $0.52 per share, for the current fiscal year, compared to net income of $38.0 million, or $0.29 per share, for the prior fiscal year.

The increase in net income was due mainly to higher net interest and non-interest income, partially offset by higher non-interest expense.

Non-interest income was lower in the prior fiscal year due mainly to the net losses on the sale of securities associated with the securities strategy.

See additional discussion regarding the securities strategy in the "Management's Discussion and Analysis of Financial Condition and Results of Operation - Executive Summary - Securities Strategy to Improve Earnings" section above.

The securities associated with the securities strategy were sold in the prior fiscal year, and in that period the Company incurred $13.3 million ($10.0 million net of tax) of net losses related to that sale.

Excluding the effects of the net loss associated with the securities strategy, EPS would have been $0.37 for the prior fiscal year.

The increase in EPS excluding the effects of the net loss associated with the securities strategy was due primarily to higher net interest income in the current fiscal year.

The net interest margin increased 19 basis points, from 1.77% for the prior fiscal year to 1.96% for the current fiscal year.

Interest and Dividend Income

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MBS 46,259 33,650 12,609 37.5

Cash and cash equivalents 15,728 43,796 (28,068) (64.1)

FHLB stock 8,997 10,009 (1,012) (10.1)

Cash and cash equivalents 8,368 15,728 (7,360) (46.8)

Investment securities 3,377 8,749 (5,372) (61.4)

Total interest and dividend income $ 399,519 $ 376,843 $ 22,676 6.0

The increase in interest income on loans receivable was due largely to an increase in the weighted average yield, along with an increase in the average balance of the portfolio primarily as a result of growth in the commercial loan portfolio as the loan portfolio mix continued to shift from one- to four-family loans to commercial loans.

The increase in the weighted average yield was due primarily to originations and purchases at higher market rates between periods, as well as disbursements on commercial construction loans at rates higher than the overall portfolio rate and upward repricing of existing adjustable-rate loans due to higher market interest rates.

The increase in the average balance was mainly in the commercial loan portfolio which was partially offset by a decrease in the average balance of the one-to four-family loan portfolio.

See additional discussion in the "Financial Condition - Loans Receivable" section above.

The increase in interest income on MBS and investment securities was due to an increase in the weighted average yield, partially offset by a decrease in the average balance, both a result of the securities strategy.

The decrease in interest income on cash and cash equivalents and the decrease in dividend income on FHLB stock were due mainly to the leverage strategy being utilized during the prior year and not being utilized during the current year.

Interest income on cash and cash equivalents related to the leverage strategy decreased $37.8 million and dividend income on FHLB

stock related to the leverage strategy decreased $3.6 million compared to the prior year.

Interest income on cash and cash equivalents not associated with the leverage strategy increased $9.7 million due largely to an increase in the average balance of cash and cash equivalents.

The increase in the average balance was mainly a result of the securities strategy as not all of the proceeds from the securities strategy were immediately redeployed due to future anticipated commercial loan fundings and the higher rate paid on amounts held at the FRB.

The increase in interest income on loans receivable was due primarily to the continued shift of loan balances from the one- to four-family loan portfolio to higher yielding commercial loans.

See additional discussion regarding the composition of the loan portfolio in the "Management's Discussion and Analysis of Financial Condition and Results of Operation - Loans Receivable" section above.

The increase in interest income on MBS was due mainly to an increase in the average balance of the portfolio, due mainly to securities purchases between periods.

Interest income on cash and cash equivalents decreased due largely to a decrease in the average balance, along with a decrease in the weighted average yield compared to the prior fiscal year due to lower FRB interest rates.

The decrease in the average balance was mainly a result of the securities strategy in the prior fiscal year, as not all proceeds from the sale of securities were immediately redeployed.

The decrease in interest income on investment securities was due to a decrease in average balance, due primarily to the securities purchased as part of the securities strategy being called or maturing during fiscal year 2024 and not being replaced in their entirety.

The cash flows from the investment securities portfolio that were not reinvested were generally invested in the MBS portfolio.

Interest Expense

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Total interest expense $ 219,208 $ 214,782 $ 4,426 2.1

The increase in interest expense on deposits was due almost entirely to an increase in the weighted average rate paid on deposits, specifically retail certificates of deposit and money market accounts.

To a lesser extent, the average balance of retail certificates of deposit also increased interest expense on deposits, partially offset by a decrease in the average balance of money market accounts.

See additional information regarding the deposit portfolio composition in the "Financial Condition - Deposits" section above.

Interest expense on borrowings associated with the leverage strategy decreased $39.7 million compared to the prior year due to the leverage strategy being in place during the prior year and not being in place during the current year.

Interest expense on borrowings not associated with the leverage strategy decreased $9.3 million due mainly to a decrease in borrowings under the BTFP, which were repaid during the current year, and a reduction in the average outstanding balance on the Bank's FHLB line of credit compared to the prior year.

The decrease in these borrowings was partially offset by new borrowings in the current year at market interest rates higher than the overall portfolio rate, to replace maturing advances and fund operational needs.

The increase in interest expense on deposits was due primarily to growth in the high yield savings account, and to a lesser extent, an increase in the average balance of retail certificates of deposit.

The increases were partially offset by a decrease in the weighted average rate paid on, and in the average balance of, money market accounts.

See additional discussion regarding high yield savings in the "Management's Discussion and Analysis of Financial Condition and Results of Operation - Deposits" section above.

The decrease in interest expense on borrowings was due to a decrease in the average balance, which was partially offset by a higher weighted average interest rate.

The decrease in the average balance of borrowings was due mainly to FHLB borrowings that matured between periods and were not renewed, along with a decrease in borrowings under the Federal Reserve's BTFP, which were repaid during the prior fiscal year using a portion of the proceeds from the securities strategy.

Cash flows from the deposit portfolio were generally used to pay off maturing FHLB borrowings.

The increase in the weighted average interest rate was due primarily to higher market interest rates on FHLB borrowings that matured and were renewed between periods.

Provision for Credit Losses

The Company recorded a provision for credit losses of $1.3 million during the current year, compared to a provision for credit losses of $6.8 million for the prior year.

The provision for credit losses in the current year was comprised of a $1.9 million increase in the reserve for off-balance sheet credit exposures, partially offset by a $633 thousand release in the ACL for loans.

The increase in the reserve for off-balance sheet credit exposures was due primarily to an increase in the balance of off-balance sheet credit exposures and an increase in the ACL to loan ratio, which is applied to off-balance sheet credit exposures, between periods, specifically for commercial construction loans.

The change in the balance of the ACL from the prior fiscal year end to the end of the current fiscal year was a decrease of $724 thousand which differs from the $633 thousand above primarily due to NCOs.

The reduction in ACL was due to a decrease in the ACL for our one- to four-family loans as a result of a decrease in the ACL to loan ratio and a decrease in loan balances, partially offset by an increase in the ACL for our commercial loans due to growth in the commercial loan portfolio.

See discussion regarding the ACL in the "Management's Discussion and Analysis of Financial Condition and Results of Operation - Critical Accounting Estimates" section above.

The Company recorded a provision for credit losses of $745 thousand during the current fiscal year compared to a provision for credit losses of $1.3 million for the prior fiscal year.

The provision for credit losses in the current fiscal year was comprised of a $1.2 million increase in the ACL for loans, partially offset by a $457 thousand decrease in the reserve for off-balance sheet credit exposures.

The increase in ACL for loans was due to commercial loan growth during the current fiscal year, partially offset by an update to the ACL model's regression analyses implemented during the current fiscal year which largely impacted the commercial loan portfolio.

See additional details in the "Management's Discussion and Analysis of Financial Condition and Results of Operation - Allowance for Credit Losses" discussion above.

The decrease in the reserve for off-balance sheet credit exposures was due mainly to a decrease in the balance of commercial real estate off-balance sheet credit exposures.

Non-Interest Income

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Total non-interest income $ 20,725 $ 5,244 $ 15,481 295.2

The decrease in deposit service fees was due primarily to a change in the fee structure of certain deposit products after the Bank's digital transformation.

The decrease in insurance commissions was primarily due to adjustments to accrued contingent commissions made in anticipation of lower commissions largely related to industry changes in underwriting and loss experience which is adversely impacting new business and projected loss ratios.

The industry changes impacting commissions are expected to persist for the foreseeable future, so management is currently evaluating other insurance revenue streams while maintaining our current lines of business.

The net loss from securities transactions in the prior year related to the impairment loss on securities associated with the securities strategy while the $13.3 million loss in the current year related to additional losses incurred on those securities when they were ultimately sold during the first quarter of fiscal year 2024.

The increase in deposit service fees was due mainly to growth in treasury management service fees.

The increase in insurance commissions was due primarily to the receipt of commissions exceeding accrued amounts.

The net loss from securities transactions in the prior fiscal year was related to the securities strategy, with no similar transaction occurring in fiscal year 2025.

Other non-interest income was higher in the current fiscal year due mainly to an increase in bank-owned life insurance ("BOLI") income primarily from an increase in the crediting rate as a result of updates made to certain existing policies that were executed during the current fiscal year.

Additionally, in the prior fiscal year there was a net loss on a financial derivative related to a commercial lending relationship and no such loss in the current fiscal year due to the related loan being paid off in the prior fiscal year.

Non-Interest Expense

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Occupancy, net 13,397 13,558 (161) (1.2)

Federal insurance premium 6,052 4,456 1,596 35.8

Regulatory and outside services 5,433 5,743 (310) (5.4)

Advertising and promotional 4,950 4,264 686 16.1

Federal insurance premium 4,319 6,052 (1,733) (28.6)

Deposit and loan transaction costs 2,843 2,719 124 4.6

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Total non-interest expense $ 117,270 $ 111,943 $ 5,327 4.8

The increase in salaries and employee benefits was mainly attributable to higher incentive compensation in the current year compared to the prior year, as no incentive compensation was paid in the prior year due to the net loss recognized by the Company.

The decrease in information technology and related expense was due mainly to lower third-party project management expenses associated with the Bank's digital transformation during the prior year along with the discontinuation of other costs associated with the previous core system, partially offset by higher software licensing expenses resulting from new agreements associated with the digital transformation.

The increase in the federal insurance premium was due primarily

to an increase in the FDIC assessment rate as a result of the way the assessment rate was adjusted for the occurrence of the Bank's net loss during the quarter ending September 30, 2023.

The decrease in regulatory and outside services was due to the prior year including expenses related to the digital transformation.

The decrease in office supplies and related expense was due primarily to the outsourcing of statement processing related to the digital transformation, and the timing of office supply purchases between periods.

The increase in other non-interest expense was due mainly to an increase in customer fraud losses.

The Company's efficiency ratio was 66.91% for the current year compared to (626.63)% for the prior year.

Excluding the net losses from the securities strategy, the efficiency ratio would have been 61.97% for the current year and 65.31% for the prior year.

The increase in salaries and employee benefits was mainly attributable to an increase in the number of employees between periods, merit increases and salary adjustments to remain market competitive, and a higher accrual of compensation during the current fiscal year than the prior fiscal year related to the Bank's short-term performance plan.

The decrease in information technology and related expense was due mainly to a decrease in usage of third-party professional services along with a decrease in depreciation expense during the current fiscal year.

The decrease in regulatory and outside services was due to a reduction in usage of certain outside services compared to the prior fiscal year.

The increase in advertising and promotional expense was due to timing of campaigns, including campaigns from the prior fiscal year that were delayed until

the current fiscal year.

The decrease in the federal insurance premium was due primarily to a decrease in the FDIC assessment rate as a result of the way the assessment rate was adjusted in fiscal year 2024 for the occurrence of the Bank's net loss during the quarter ended September 30, 2023.

The decrease in other non-interest expense was due mainly to higher customer fraud losses in the prior fiscal year and the maturity of an interest rate swap agreement during the current fiscal year, which reduced the expense associated with the collateral held in relation to the interest rate swap.

The Company's efficiency ratio was 58.33% for the current fiscal year compared to 66.91% for the prior fiscal year.

Excluding the net losses from the securities strategy, the efficiency ratio would have been 61.97% for the prior fiscal year.

The Company's operating expense ratio for the current fiscal year was 1.22% compared to 1.17% for the prior fiscal year.

The operating expense ratio was higher in the current fiscal year due mainly to higher non-interest expense.

Income Tax Expense

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(Dollars in thousands)

Income (loss) before income tax expense (benefit) $ 54,103 $ (138,955) $ 193,058 138.9 %

Income tax expense (benefit) 16,093 (37,296) 53,389 143.1

Net income (loss) $ 38,010 $ (101,659) $ 139,669 137.4

Income before income tax expense $ 83,021 $ 54,103 $ 28,918 53.4 %

Income tax expense 14,996 16,093 (1,097) (6.8)

Net income $ 68,025 $ 38,010 $ 30,015 79.0

Effective Tax Rate 18.1 % 29.7 %

For the prior year, absent the net loss, the effective income tax rate would have been 18.1%.

The higher effective tax rate in the current year was due primarily to recording $5.4 million of income tax expense on the current year distributions of earnings from the Bank to the Company in association with the pre-1988 bad debt recapture ($0.04/share reduction in earnings per share), along with higher state income tax expense mainly related to the tax treatment of the bad debt recapture, partially offset by a $3.3 million tax benefit related to the $13.3 million net loss on the securities sale associated with the securities strategy.

Income tax expense was lower in the current fiscal year compared to the prior fiscal year, due mainly to income tax associated with the pre-1988 bad debt recapture in the prior fiscal year, partially offset by higher pretax income in the current fiscal year.

Management anticipates the effective tax rate for fiscal year 2026 will be 19% to 20%.

Fiscal Year 2026 Outlook

Salaries and employee benefits expense is expected to be $5.7 million higher in fiscal year 2025 compared to fiscal year 2024 due to an anticipated increase in incentive compensation, merit increases, and the filling of vacant positions.

Information technology and related expenses are anticipated to be $1.4 million higher in fiscal year 2025 compared to fiscal year 2024 due to these expenses returning to a more normal run rate and implementation of new banking technologies.

We anticipate that the federal deposit insurance premium will be approximately $1.7 million less in fiscal year 2025 compared to fiscal year 2024 because there is no longer an increase in our assessment rate due to the net loss in fiscal year 2023.

Overall, management is expecting a 4.8% increase in operating expenses for fiscal year 2025 compared to fiscal year 2024.

Management anticipates the effective income tax rate for fiscal year 2025 will be 19% to 20%.

The effective income tax rate is anticipated to be lower than fiscal year 2024 as it is currently the intention of management and the Board of Directors to not make capital distributions from the Bank to the Company during fiscal year 2025.

By not making capital distributions during fiscal year 2025, the Bank will not incur income tax expense related to the bad debt recapture as occurred during fiscal year 2024.

See "Financial Condition - Stockholders' Equity" section above for additional discussion.

Salary and employee benefit expense is anticipated to increase approximately 9% from fiscal year 2025 due to the expected hiring of additional professionals, merit increases, continued staff compensation alignment with market compensation levels, and the impact of the first full year of compensation for recently hired sales professionals.

Information technology expense in fiscal year 2025 was less than anticipated due primarily to projects being postponed to fiscal year 2026.

It is anticipated that information technology expense will increase approximately 11% from fiscal year 2025 due to project postponements to fiscal year 2026, along with several new initiatives that are anticipated to be implemented during fiscal year 2026.

Overall, non-interest expense is projected to increase 6% in fiscal year 2026 from the fiscal year 2025 amount.

Management anticipates the FRB will continue to reduce rates during our 2026 fiscal year, which could result in a reduction in our deposit interest expense while our loan portfolio yield is expected to remain stable or increase due to the ongoing remixing of our loan portfolio.

As a result of the strategic initiatives previously discussed, the Company could grow past $10 billion in total assets in the coming fiscal years.

Comparison of Operating Results for the Years Ended September 30, 2024 and 2023

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Per FHLB's lending guidelines, total FHLB borrowings cannot exceed 40% of Bank Call Report total assets without the pre-approval of FHLB senior management.

The Bank's FHLB borrowing limit approved by FHLB senior management was 50% of Bank Call Report total assets as of September 30, 2024.

The Bank's FHLB borrowing limit approved by FHLB senior management became 45% of Bank Call Report total assets effective November 1, 2024.

The reduction in the percentage from 50% to 45% was related to FHLB's internal lending limit guidelines.

The Bank's FHLB borrowing limit was 45% of Bank Call Report total assets as of September 30, 2025, as approved by FHLB senior management.

At September 30, 2025, the ratio of the par value of the Bank's FHLB borrowings to the Bank's Call Report total assets was 20%.

The Bank's borrowing limit approved by FHLB senior management became 44% starting November 1, 2025.

The borrowing limit as of November 1, 2025 was calculated based on a FHLB collateral analysis that is part of FHLB's overall borrowing capacity framework.

FHLB borrowings are secured by certain qualifying loans pursuant to a blanket collateral agreement with FHLB.

When the leverage strategy is in place, the Bank maintains the resulting excess cash reserves from the FHLB borrowings at the FRB of Kansas City, which can be used to meet any short-term liquidity needs.

Additionally, FHLB borrowings may exceed 40% of Bank Call Report total assets if the Bank continues its leverage strategy and FHLB senior management continues to approve the Bank's borrowing limit being in excess of 40% of Call Report total assets.

All or a portion of the short-term FHLB borrowings in conjunction with the leverage strategy can be repaid at maturity, if necessary or desired.

The amount that can be borrowed from the FRB of Kansas City's discount window is based upon the fair value of securities pledged as collateral.

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At September 30, 2025, there were no borrowings from the FRB of Kansas City's discount window.

Management tests the Bank's access to the FRB of Kansas City's discount window annually with a nominal overnight borrowing.

If management observes unusual trends in the amount and frequency of line of credit utilization and/or short-term borrowings that is not in conjunction with a planned strategy, such as the leverage strategy, the Bank will likely utilize long-term wholesale borrowing sources such as FHLB advances and/or repurchase agreements to provide long-term, fixed-rate funding.

The maturities of these long-term borrowings are generally staggered in order to mitigate the risk of a highly negative cash flow position at maturity.

Recently, the Bank started entering into fully-amortizing FHLB advances that require periodic payments of principal over the term of the advance.

Management tests the Bank's access to the FRB of Kansas City's discount window at least annually with a nominal overnight borrowing.

If management observes unusual trends in the amount and frequency of line of credit utilization and/or short-term borrowings that are not in conjunction with a planned strategy, the Bank will likely utilize term wholesale borrowing sources such as FHLB advances to provide term funding.

The maturities of our borrowings are generally staggered in order to mitigate the risk of a highly negative cash flow position at maturity.

The Bank has used fully-amortizing FHLB advances that require periodic payments of principal over the term of the advance.

This type of advance allows the Bank the opportunity to start repricing its liability cash flows sooner in a down-rate environment and generally provides for favorable pricing when compared to similar long term bullet advances with comparable average lives as a result of the current term structure of interest rates.

The Bank's internal policy limits total borrowings to 55% of total assets.

At September 30, 2024, the Bank had total borrowings, at par, of $2.18 billion, or approximately 23% of total assets.

At September 30, 2025, the Bank had total borrowings, at par, of $1.95 billion, or approximately 20% of the Bank's Call Report total assets.

The borrowings balance was composed primarily of FHLB advances, of which, $509.7 million is scheduled to be repaid (amortizing advances) or mature in the next 12 months.

Management estimated that the Bank had $2.93 billion in additional liquidity available at September 30, 2024 based on the Bank's blanket collateral agreement with FHLB and unencumbered securities.

Management estimated that the Bank had $2.92 billion in liquidity available at September 30, 2025, based on the Bank's blanket collateral agreement with FHLB and unencumbered securities.

The Bank is a member of the American Finance Exchange ("AFX") through which it may borrow funds on an overnight or short-term basis with other member institutions.

The availability of funds changes daily.

At September 30, 2025, the Bank did not have any such borrowings outstanding through the AFX.

At September 30, 2025, the Bank had no repurchase agreements.

9 unchanged sentences

Based on our deposit retention experience and our current pricing strategy, we anticipate the majority of the maturing retail certificates of deposit will renew or transfer to other deposit products of the Bank at prevailing rates, although no assurance can be given in this regard.

Due to the nature of public unit certificates of deposit and commercial certificates of deposit, retention rates are not as predictable as for retail certificates of deposit.

Due to the nature of public unit certificates of deposit and commercial certificates of deposit, retention rates are not as predictable as retail certificates of deposit.

The Company is a party to financial instruments with off-balance sheet risk in the normal course of business to meet the financing needs of customers.

9 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-K

Item 7. Management’s Discussion and Analysis