What changed in this filing

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Item 8. Financial Statements and Supplementary Data

2025-11-26 compared with 2024-11-27 · 326 added, 273 removed, 1393 unchanged (30% of the section changed)

7 unchanged sentences

In our opinion, the Company maintained, in all material respects, effective internal control over financial reporting as of September 30, 2025, based on criteria established in Internal Control – Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission.

We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the consolidated balance sheet of the Company as of September 30, 2024, the related consolidated statements of income, comprehensive income, stockholders’ equity, and cash flows for the year then ended, and the related notes (collectively, the consolidated financial statements), and our report dated November 27, 2024 expressed an unqualified opinion on those consolidated financial statements.

We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the consolidated balance sheets of the Company as of September 30, 2025 and 2024, the related consolidated statements of income, comprehensive income, stockholders’ equity, and cash flows for each of the years in the two-year period ended September 30, 2025, and the related notes (collectively, the consolidated financial statements), and our report dated November 26, 2025 expressed an unqualified opinion on those consolidated financial statements.

Basis for Opinion

21 unchanged sentences

Opinion on the Consolidated Financial Statements

We have audited the accompanying consolidated balance sheet of Capitol Federal Financial, Inc.

and subsidiary (the Company) as of September 30, 2024, the related consolidated statements of income, comprehensive income, stockholders’ equity, and cash flows for the year then ended, and the related notes (collectively, the consolidated financial statements).

In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of the Company as of September 30, 2024, and the results of its operations and its cash flows for the year then ended, in conformity with U.S.

We have audited the accompanying consolidated balance sheets of Capitol Federal Financial, Inc.

and subsidiary (the Company) as of September 30, 2025 and 2024, the related consolidated statements of income, comprehensive income, stockholders’ equity, and cash flows for each of the years in the two-year period ended September 30, 2025, and the related notes (collectively, the consolidated financial statements).

In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of the Company as of September 30, 2025 and 2024, and the results of its operations and its cash flows for each of the years in the two-year period ended September 30, 2025, in conformity with U.S.

generally accepted accounting principles.

2 unchanged sentences

These consolidated financial statements are the responsibility of the Company’s management.

Our responsibility is to express an opinion on these consolidated financial statements based on our audit.

Our responsibility is to express an opinion on these consolidated financial statements based on our audits.

We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S.

federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audit in accordance with the standards of the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB.

Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the consolidated financial statements are free of material misstatement, whether due to error or fraud.

Our audit included performing procedures to assess the risks of material misstatement of the consolidated financial statements, whether due to error or fraud, and performing procedures that respond to those risks.

Our audits included performing procedures to assess the risks of material misstatement of the consolidated financial statements, whether due to error or fraud, and performing procedures that respond to those risks.

Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the consolidated financial statements.

Our audit also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements.

We believe that our audit provides a reasonable basis for our opinion.

Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements.

We believe that our audits provide a reasonable basis for our opinion.

Critical Audit Matter

10 unchanged sentences

The PDs are then used to generate expected cash flows using segment-specific risk factors and other assumptions to model loss given defaults (LGDs).

The forecast is applied for a reasonable and supportable time period of four quarters before reverting back to historical loss experience, which is accomplished by reversion to long-term historical

averages at the economic index level using a straight-line method over four quarters.

Contractual cash flows are adjusted for expected prepayment speeds and curtailment rates.

The forecast is applied for a reasonable and supportable time period of four quarters before reverting back to historical loss experience, which is accomplished by reversion to long-term historical averages at the economic index level using a straight-line method over four quarters.

Contractual cash flows are adjusted for

expected prepayment speeds and curtailment rates.

Using all of these inputs and assumptions, the DCF methodology generates aggregated estimated cash flows for the time period that remains in each loan's contractual life.

6 unchanged sentences

(2) expected prepayment speeds and curtailment rates;

and (3) the large dollar commercial loan concentration qualitative factor.

and (3) the large dollar commercial real estate loan concentration qualitative factor.

The assessment also included an evaluation of the conceptual soundness and performance of the underlying models and assumptions.

4 unchanged sentences

• continued use and appropriateness of the PD and LGD models

• performance monitoring of the PD and LGD models

• model validation and performance monitoring of the PD and LGD models

• identification and determination of the significant assumptions used in the PD and LGD models

6 unchanged sentences

• evaluating judgments made by the Company relative to the performance monitoring of the PD and LGD models by comparing them to relevant Company specific metrics and trends and the applicable industry practices and regulatory guidance

• assessing the conceptual soundness and performance testing of the PD and LGD models by inspecting the model documentation to determine whether the model is suitable for its intended use

• assessing the conceptual soundness and performance testing of the PD and LGD models by inspecting the model validation documentation to determine whether the model is suitable for its intended use

• evaluating the methodology used to select the economic forecast and economic indices, the reasonable and supportable forecast and reversion periods, peer data used for average historical loss rates, and prepayment speeds and curtailment rates by comparing them to the Company’s business environment and relevant industry practices

• evaluating the methodology used to develop the large dollar commercial loan concentrations qualitative factor and the effect of that factor on the collective ACL by comparing it to relevant credit risk factors and consistency with credit trends.

• evaluating the methodology used to develop the large dollar commercial real estate loan concentrations qualitative factor and the effect of that factor on the collective ACL by comparing it to relevant credit risk factors and consistency with credit trends.

We also assessed the sufficiency of the audit evidence obtained relative to the collective ACL by evaluating the:

9 unchanged sentences

We have audited the accompanying consolidated balance sheet of Capitol Federal Financial, Inc.

and subsidiary (the "Company") as of September 30, 2023, the related consolidated statements of income, comprehensive income, stockholders' equity, and cash flows, for each of the two years in the period ended September 30, 2023, and the related notes (collectively referred to as the "financial statements").

In our opinion, the financial statements present fairly, in all material respects, the financial position of the Company as of September 30, 2023, and the results of its operations and its cash flows for each of the two years in the period ended September 30, 2023, in conformity with accounting principles generally accepted in the United States of America.

and subsidiary (the "Company") as of September 30, 2023, the related consolidated statements of income, comprehensive income, stockholders' equity, and cash flows, for the period ended September 30, 2023, and the related notes (collectively referred to as the "financial statements").

In our opinion, the financial statements present fairly, in all material respects, the financial position of the Company as of September 30, 2023, and the results of its operations and its cash flows for the period ended September 30, 2023, in conformity with accounting principles generally accepted in the United States of America.

Basis for Opinion

These financial statements are the responsibility of the Company's management.

Our responsibility is to express an opinion on the Company's financial statements based on our audits.

We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S.

Our responsibility is to express an opinion on the Company's financial statements based on our audit.

We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) ("PCAOB") and are required to be independent with respect to the Company in accordance with the U.S.

federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB.

We conducted our audit in accordance with the standards of the PCAOB.

Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud.

Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks.

Our audit included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks.

Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements.

Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements.

We believe that our audits provide a reasonable basis for our opinion.

Our audit also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements.

We believe that our audit provides a reasonable basis for our opinion.

/s/ Deloitte & Touche LLP

22 unchanged sentences

Advances by borrowers 65,416 61,801

Deferred income tax liabilities, net 2,056 —

Other liabilities 121,334 123,991

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Mortgage-backed securities ("MBS") 46,259 33,650 18,520

Cash and cash equivalents 15,728 43,796 18,304

FHLB stock 8,997 10,009 13,821

Cash and cash equivalents 8,368 15,728 43,796

Investment securities 3,377 8,749 3,565

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Occupancy, net 13,397 13,558 14,236

Federal insurance premium 6,052 4,456 3,020

Regulatory and outside services 5,433 5,743 6,039

Advertising and promotional 4,950 4,264 4,305

Federal insurance premium 4,319 6,052 4,456

Deposit and loan transaction costs 2,843 2,719 2,694

2 unchanged sentences

Total non-interest expense 117,270 111,943 113,934

INCOME (LOSS) BEFORE INCOME TAX EXPENSE (BENEFIT) 54,103 ( 138,955 ) 107,203

INCOME (LOSS) BEFORE INCOME TAX EXPENSE 83,021 54,103 ( 138,955 )

INCOME TAX EXPENSE (BENEFIT) 14,996 16,093 ( 37,296 )

10 unchanged sentences

Other comprehensive income (loss), net of tax:

Unrealized gains (losses) on AFS securities arising during the period, net of taxes of $( 7,133 ), $( 2,696 ), and $ 51,565

Unrealized (losses) gains on AFS securities arising during the period, net of taxes of $ 1,587 , $( 7,133 ), and $( 2,696 )

( 4,980 ) 22,362 8,355

1 unchanged sentence

— ( 1,188 ) 145,622

Unrealized (losses) gains on cash flow hedges arising during the period, net of taxes of $ 701 , $( 1,923 ), and $( 8,177 )

Unrealized gains (losses) on cash flow hedges arising during the period, net of taxes of $( 443 ), $ 701 , and $( 1,923 )

1,391 ( 2,135 ) 5,957

1 unchanged sentence

( 2,283 ) ( 6,112 ) ( 5,601 )

Comprehensive income (loss) $ 50,937 $ 52,674 $ ( 44,875 )

Total other comprehensive income (loss), net of tax ( 5,872 ) 12,927 154,333

Comprehensive income $ 62,153 $ 50,937 $ 52,674

See accompanying notes to consolidated financial statements.

7 unchanged sentences

Balance at September 30, 2022 $ 1,388 $ 1,190,213 $ ( 29,735 ) $ 80,266 $ ( 145,633 ) $ 1,096,499

Net income, fiscal year 2022 84,453 84,453

Other comprehensive loss, net of tax ( 129,328 ) ( 129,328 )

Net loss, fiscal year 2023 ( 101,659 ) ( 101,659 )

Other comprehensive income, net of tax 154,333 154,333

ESOP activity ( 473 ) 1,652 1,179

Restricted stock activity, net ( 6 ) ( 6 )

Stock-based compensation 327 327

Repurchase of common stock ( 29 ) ( 23,424 ) — ( 23,453 )

Cash dividends to stockholders ($ 0.62 per share)

1 unchanged sentence

Balance at September 30, 2023 1,359 1,166,643 ( 28,083 ) ( 104,565 ) 8,700 1,044,054

Net loss, fiscal year 2023 ( 101,659 ) ( 101,659 )

Net income, fiscal year 2024 38,010 38,010

Cumulative effect of adopting Accounting Standards Update ("ASU") 2022-02 ( 27 ) ( 27 )

Other comprehensive income, net of tax 12,927 12,927

ESOP activity ( 725 ) 1,652 927

Restricted stock activity, net 1 ( 10 ) ( 9 )

Stock-based compensation 358 358

4 unchanged sentences

Net income, fiscal year 2025 68,025 68,025

Cumulative effect of adopting Accounting Standards Update ("ASU") 2022-02 ( 27 ) ( 27 )

Other comprehensive income, net of tax 12,927 12,927

Other comprehensive loss, net of tax ( 5,872 ) ( 5,872 )

ESOP activity ( 655 ) 1,651 996

41 unchanged sentences

Proceeds from sale of other real estate owned ("OREO") 239 464 533

Proceeds from sale of premises and equipment 43 — —

Proceeds from sale of assets held-for-sale — 629 —

Proceeds from bank-owned life insurance ("BOLI") death benefit 667 1,049 720

Net cash provided by (used in) investing activities 629,109 ( 329,103 ) ( 167,576 )

Net cash (used in) provided by investing activities ( 206,586 ) 629,109 ( 329,103 )

CAPITOL FEDERAL FINANCIAL, INC.

9 unchanged sentences

Change in advances by borrowers 3,615 ( 1,192 ) ( 17,074 )

Payment of FHLB prepayment penalties ( 547 ) — —

Repurchase of common stock ( 3,887 ) ( 19,448 ) ( 23,453 )

Net cash (used in) provided by financing activities ( 688,591 ) 477,983 49,177

NET (DECREASE) / INCREASE IN CASH AND CASH EQUIVALENTS ( 28,298 ) 196,411 ( 21,098 )

Net cash provided by (used in) financing activities 186,681 ( 688,591 ) 477,983

NET INCREASE / (DECREASE) IN CASH AND CASH EQUIVALENTS 35,136 ( 28,298 ) 196,411

CASH AND CASH EQUIVALENTS:

11 unchanged sentences

Description of Business - Capitol Federal Financial, Inc.

(the "Company") provides a full range of retail banking services through its wholly-owned subsidiary, Capitol Federal Savings Bank (the "Bank"), a federal savings bank, which has 44 traditional and four in-store banking offices serving primarily the metropolitan areas of Topeka, Wichita, Lawrence, Manhattan, Emporia and Salina, Kansas and portions of the Kansas City metropolitan area.

The Bank emphasizes mortgage lending, primarily originating one- to four-family loans, and providing personal retail financial services, along with offering commercial banking and lending products.

(the "Company") provides a full range of retail banking services through its wholly-owned subsidiary, Capitol Federal Savings Bank (the "Bank"), a federal savings bank, which has 44 traditional and two in-store banking offices serving primarily the metropolitan areas of Topeka, Wichita, Lawrence, Manhattan, Emporia and Salina, Kansas and portions of the Kansas City metropolitan area.

The Bank focuses on both commercial and consumer lending, offering a comprehensive range of deposit products and services, as well as treasury management solutions.

Basis of Presentation - The consolidated financial statements include the accounts of the Company and its wholly owned subsidiary, the Bank.

58 unchanged sentences

If the change in loan terms is deemed to be minor, the fee received for the endorsement is added to the net remaining unamortized deferred fee or deferred cost balance.

Troubled debt restructurings - Prior to the Company's adoption of ASU 2022-02, Financial Instruments - Credit Losses (Topic 326):

Troubled Debt Restructurings ("TDRs") and Vintage Disclosures on October 1, 2023 , a loan was accounted for as a TDR if the Bank granted a concession to a borrower experiencing financial difficulties.

Loan Modifications - For borrowers experiencing financial difficulty, the Bank may grant a concession to the borrower.

Such concessions generally involved extensions of loan maturity dates, the granting of periods during which reduced payment amounts were required, and/or reductions in interest rates.

The Bank does not forgive principal or interest, nor does it commit to lend additional

funds to these borrowers, except for situations generally involving the capitalization of delinquent loan payments and/or escrow on one- to four-family loans and consumer loans, not to exceed the original loan amount.

In the case of commercial loans, the Bank generally does not forgive principal or interest or commit to lend additional funds unless the borrower provides additional collateral or other enhancements to improve the credit quality.

Loan modifications - The TDR policy outlined above regarding Bank concessions to a borrower experiencing financial difficulty continues to apply for loan modifications upon adoption of ASU 2022-02.

The Bank does not forgive principal or interest, nor does it commit to lend additional funds to these borrowers, except for situations generally involving the capitalization of delinquent loan payments and/or escrow on one- to four-family loans and consumer loans, not to exceed the original loan amount.

case of commercial loans, the Bank generally does not forgive principal or interest or commit to lend additional funds unless the borrower provides additional collateral or other enhancements to improve the credit quality.

If the change in the loan terms resulting from the modification is deemed to be more than minor, all existing unamortized deferred loan origination fees and costs are recognized at the time of modification.

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Loans on which the accrual of income has been discontinued are designated as nonaccrual and all delinquent accrued interest is reversed.

For the year ended September 30, 2025, accrued interest of $ 3.0 million was reversed from loan interest income, the majority of which was due to two commercial real estate loans related to the same borrowing relationship that became nonaccrual during the current year.

Loans Receivable and Allowance for Credit Losses for additional information regarding these loans.

A nonaccrual one- to four-family or consumer loan is returned to accrual status once the contractual payments have been made to bring the loan less than 90 days past due.

2 unchanged sentences

It represents management's current expectations of total expected credit losses included in the Company's loan portfolio as of the balance sheet date and is determined using relevant information about past events, including historical credit loss experience on loans with similar risk characteristics, current conditions, and reasonable and supportable forecasts, along with the application of qualitative factors when necessary.

The ACL is recorded upon origination or purchase of a loan and is updated at subsequent reporting dates.

Changes in the ACL are recorded through increases or decreases to the provision for credit losses in the consolidated statements of income.

1 unchanged sentence

The macroeconomic environment continuously changes, which can cause fluctuations in estimated expected losses.

The Bank's ACL is measured on a collective ("pool") basis, with loans aggregated into pools based on similar risk characteristics such as collateral type, historical loss experience, loan-to-value ("LTV") ratio for originated one- to four-family loans, and payment sources for commercial loans.

The Bank's ACL is measured on a collective ("pool") basis, with loans aggregated into pools based on similar risk characteristics such as collateral type, historical loss experience, loan-to-value ("LTV") for originated one- to four-family loans, and payment sources for commercial loans.

Loans that do not share similar risk characteristics are evaluated on an individual basis.

10 unchanged sentences

If the loss amount is determined to be collectible, then the amount is reserved as a specific valuation allowance.

The determination of whether the

loss is collectible or uncollectible is based on current financial information from the borrower, as well as any facts and information of which the Bank may have knowledge.

The determination of whether the loss is collectible or uncollectible is based on current financial information from the borrower, as well as any facts and information of which the Bank may have knowledge.

The primary credit risk characteristics inherent in the one- to four-family and consumer loan portfolios are a decline in economic conditions, such as elevated levels of unemployment or underemployment, and declines in residential real estate values.

4 unchanged sentences

Our commercial and industrial loans are primarily secured by accounts receivable, inventory and equipment, which may be difficult to appraise, may be illiquid and may fluctuate in value based on the success of the business.

The Company utilizes a discounted cash flow model for estimating expected credit losses for pooled loans and loan commitments.

For loans evaluated for credit losses on a pool basis, average historical loss rates are calculated for each pool using the Company's historical charge-offs, or peer data when the Company's own historical loss rates are not reflective of future loss expectations, and outstanding loan balances during a historical time period.

The historical time periods can be different based on the individual pool and represent management's credit expectations for the pool of loans over the remaining contractual life.

Generally, the historical time periods are at least one economic cycle.

These historical loss rates are compared to historical data related to economic indices including national unemployment rate, changes in commercial real estate price index, changes in home values, and changes in the United States gross domestic product during the same time periods over which the historical loss rates were calculated, and a correlation is estimated using regression analysis.

Generally, the historical time periods are at least two economic cycles.

These historical loss rates are compared to historical data related to economic indices including national unemployment rate, changes in commercial real estate price index, changes in home values, changes in the United States consumer price index, and changes in the United States gross domestic product during the same time periods over which the historical loss rates were calculated, and a correlation is estimated using regression analysis.

Each quarter, the Company's model pairs the results of the regression analysis with an economic forecast of these same economic indices, which is provided by a third party, in order to model probabilities of default ("PDs").

2 unchanged sentences

Contractual cash flows are adjusted for expected prepayment speeds and curtailment rates selected by management.

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

The contractual term excludes expected extensions, renewals and modifications.

8 unchanged sentences

Expected credit losses on these amounts are calculated using the same ACL to loan ratio that is calculated by the ACL model;

however, the estimate of credit risk for off-balance sheet credit exposures also takes into consideration the likelihood that funding of the unfunded amount/commitment will occur.

however, the estimate of credit risk for off-balance sheet

credit exposures also takes into consideration the likelihood that funding of the unfunded amount/commitment will occur.

The reserve for these off-balance sheet credit exposures is recorded as a liability and is presented in other liabilities on the consolidated balance sheet.

20 unchanged sentences

or (5) the underlying asset is of such a specialized nature that it is expected to have no alternative use to the lessor at the end of the lease term.

A lease that does not meet any of these criteria is considered an operating lease.

A right-of-use asset represents the Company's right to use an underlying asset during the lease term.

6 unchanged sentences

The right-of-use assets associated with operating leases are recorded in other assets and for finance leases in premises and equipment on the Company's consolidated balance sheet.

The lease liabilities associated with operating leases are included in other liabilities and for finance leases in borrowings on the Company's consolidated balance sheets.

The period over which a right-of-use asset is amortized is generally the lesser of the expected remaining term or the remaining useful life of the leased asset.

The lease liabilities associated with operating leases are included in other liabilities and for finance leases in borrowings on the Company's consolidated balance sheets.

The lease liability is decreased as periodic lease payments are made.

2 unchanged sentences

Operating lease expense is recognized over the lease term.

Variable lease expense primarily represents payments such as common area maintenance, real estate taxes, and utilities and are recognized as expense in the period when those payment

obligations are incurred.

Variable lease expense primarily represents payments such as common area maintenance, real estate taxes, and utilities and are recognized as expense in the period when those payment obligations are incurred.

Short-term lease expense relates to leases with an initial term of 12 months or less.

Operating lease expense, variable lease expense and short-term lease expense associated with operating leases are included in occupancy expense in the Company's consolidated statements of income.

Operating lease expense, variable lease expense and short-term lease expense associated with operating leases are included in occupancy

expense in the Company's consolidated statements of income.

The Company has elected to not record a right-of-use asset or lease liability for short-term leases.

25 unchanged sentences

All positive and negative evidence is reviewed in determining how much of a valuation allowance is recognized on a quarterly basis.

Accounting Standards Codification ("ASC") Topic 740 prescribes a recognition threshold and measurement attribute for the financial statement recognition and measurement of an uncertain tax position taken, or expected to be taken, in a tax return.

ASC Topic 740 prescribes a recognition threshold and measurement attribute for the financial statement recognition and measurement of an uncertain tax position taken, or expected to be taken, in a tax return.

Interest and penalties related to unrecognized tax benefits are recognized in income tax expense in the consolidated statements of income.

Accrued interest and penalties related to unrecognized tax benefits are included within the related tax liabilities line in the consolidated balance sheet.

Employee Stock Ownership Plan - The funds borrowed by the ESOP from the Company to purchase the Company's common stock are being repaid from dividends paid on unallocated ESOP shares and, if necessary, contributions by the Bank.

The ESOP shares pledged as collateral are reported as a reduction of stockholders' equity at cost.

11 unchanged sentences

Revenue Recognition" for additional information.

Segment Information - As a community-oriented financial institution, substantially all of the Bank's operations involve the delivery of loan and deposit products to customers.

Management makes operating decisions and assesses performance based on an ongoing review of these community banking operations, which constitute the Company's only operating segment for financial reporting purposes.

Segment Information - The Company's banking operations are considered by management to be aggregated in one reportable operating segment in accordance with Financial Accounting Standards Board ("FASB") ASC Topic 280.

These banking operations primarily consist of the delivery of loan products and deposit products to customers.

The chief executive officer and chief financial officer are the Company's chief operating decision makers in consultation with other members of executive management.

The chief operating decision makers evaluate the performance of the Company's banking operations and decide how to allocate resources based on consolidated net income, which is also reported in the Company's consolidated statements of income.

All expenses associated with the Company's banking operations are considered to be significant.

Given the Company's single reportable operating segment, assets associated with the Company's banking operations are reflected on the Company's consolidated balance sheets as “total assets” and the amounts of significant segment expenses are disclosed in the Company's consolidated statements of income.

The accounting policies for the Company's banking operations are the same as the Company's accounting policies disclosed herein.

Earnings Per Share - Basic EPS is computed by dividing income available to common stockholders by the weighted average number of shares outstanding for the period.

7 unchanged sentences

As a result, if the Company is in an accumulated deficit position, a dividend payment will increase the accumulated deficit.

Recent Accounting Pronouncements - In March 2022, the Financial Accounting Standards Board ("FASB") issued ASU 2022-02, Financial Instruments - Credit Losses (Topic 326):

Troubled Debt Restructurings and Vintage Disclos ures.

This ASU eliminates the accounting guidance for TDRs by creditors, while enhancing disclosure requirements for certain loan refinancings and restructurings by creditors when a borrower is experiencing financial difficulty.

Additionally, this ASU requires that an entity disclose current-period gross write-offs by year of origination for financing receivables within the scope of ASC 326-20, Financial Instruments-Credit Losses-Measured at Amortized Cost .

The Company adopted the ASU on October 1, 2023 on a prospective basis, except for the amendments impacting the measurement of the ACL for TDRs, which were adopted on a modified retrospective approach.

Upon adoption, the Company recorded a $20 thousand increase in ACL, a $16 thousand increase in reserves for off-balance sheet credit exposures, and a cumulative effect-adjustment to accumulated deficit of $27 thousand, net of tax.

The adjustments are attributable to including TDRs in the ACL model, as of

October 1, 2023.

The new required disclosures associated with this ASU are included above and in Note 4.

Loans Receivable and Allowance for Credit Losses.

In October 2023, the FASB issued ASU 2023-06, Disclosure Improvements - Codification Amendments in Response to the SEC's Disclosure Update and Simplification Initiative.

This ASU incorporates a variety of Topics into the Codification that are currently included in SEC Regulations S-X and S-K.

Recent Accounting Pronouncements - In October 2023, the FASB issued ASU 2023-06, Disclosure Improvements - Codification Amendments in Response to the SEC's Disclosure Update and Simplification Initiative.

This ASU incorporates a variety of Topics into the FASB Accounting Standards Codification (the "Codification") that are currently included in SEC Regulations S-X and S-K.

The ASU is intended to align the accounting standards of GAAP with SEC Regulations S-X and S-K.

Each amendment in the ASU will only become effective for the Company if the SEC removes the related disclosure or presentation requirement from its existing regulations by June 30, 2027.

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

The amendments will be applied prospectively by the Company.

The amendments will be applied prospectively by

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

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

The ASU is not expected to have a material impact on the Company's disclosures as the Company is currently subject to SEC Regulations S-X and S-K.

In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280) - Improvements to Reportable Segment Disclosures .

This ASU requires enhanced disclosures of segment information for all public entities, including those that have a single reportable segment, primarily in the area of segment revenues and expenses.

Entities that have a single reportable segment, like the Company, will be required to provide all the disclosures required by this ASU and all existing segment disclosures requirements in ASC 280, Segment Reporting .

This ASU is effective for fiscal years beginning after December 15, 2023, which is the fiscal year ending September 30, 2025 for the Company, and interim periods within fiscal years beginning after December 15, 2024, which is the quarter ending December 31, 2025 for the Company.

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

This ASU requires enhanced disclosures of segment information for all public entities, including those that have a single reportable segment, primarily in the area of significant segment expenses and other items on an annual and interim basis.

The Company adopted this ASU on September 30, 2025.

The new disclosures required by this ASU are included in the "Segment Information" discussion above.

In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740) - Improvements to Income Tax Disclosures .

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

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

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

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

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

This ASU also discontinues certain other income tax disclosures.

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

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

This ASU should be applied on a prospective basis;

however, retrospective application is permitted.

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

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

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

In March 2024, the FASB issued ASU 2024-02, Codification Improvements - Amendments to Remove References to the Concepts Statements .

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

This ASU is effective for the Company on October 1, 2025.

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

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

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

1 unchanged sentence

This ASU requires additional expense disclosures by public entities in the notes to the financial statements.

The ASU outlines the specific costs that are required to be disclosed which include such costs as:

The ASU outlines the specific costs that are required to be disclosed, which include costs such as:

purchases of inventory, employee compensation, depreciation, intangible asset amortization, selling costs, and depreciation, depletion, and amortization related to oil and gas production.

1 unchanged sentence

The disclosures are required for each interim and annual reporting period.

The ASU is effective for fiscal years beginning after December 15, 2026, which is the fiscal year ending September 30, 2028 for the Company, and interim periods beginning after December 15, 2027, which is the quarter ending December 31, 2027 for the Company.

The ASU is effective for fiscal years beginning after December 15, 2026, which is the fiscal year ending September 30, 2028 for the Company.

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

Clarifying the Effective Date.

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

Per ASU 2025-01, ASU 2024-03 is effective for interim periods within fiscal years beginning after December 15, 2027, which is the quarter ending December 31, 2028 for the Company.

The Company is currently evaluating the effect this ASU will have on the Company's expense disclosures in the notes to the consolidated financial statements.

In September 2025, the FASB issued ASU 2025-06, Intangibles - Goodwill and Other - Internal-use Software (Subtopic 350-40):

Targeted Improvements to the Accounting for Internal-Use Software.

This ASU modernizes the accounting for internal-use software costs under Subtopic 350-40.

The ASU is effective for fiscal years beginning after December 15, 2027, which is the fiscal year ending September 30, 2029 for the Company, and interim periods within fiscal years beginning after December 15, 2027, which is the quarter ending December 31, 2028 for the Company.

Early adoption is permitted for any

interim or annual period for which financial statements have not yet been issued or made available for issuance as of the beginning of the entity's fiscal year.

The Company is currently evaluating the effect this ASU will have on the Company's consolidated financial statements or the Company's disclosures.

EARNINGS PER SHARE

2 unchanged sentences

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

For the Year Ended September 30,

2025 2024 2023

11 unchanged sentences

The following tables reflect the amortized cost, estimated fair value, and gross unrealized gains and losses of AFS securities at the dates presented.

The majority of our AFS securities at both dates presented were government guaranteed or issued by a GSE.

The majority of our AFS securities at both dates were government guaranteed or issued by a GSE.

September 30, 2025

4 unchanged sentences

MBS $ 843,369 $ 20,303 $ 172 $ 863,500

GSE debentures 69,077 228 — 69,305

Corporate bonds 4,000 — 284 3,716

8 unchanged sentences

Corporate bonds 4,000 — 612 3,388

Municipal bonds 942 — — 942

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

At September 30, 2024, there was $ 713.3 million of residential MBS and $ 70.2 million of commercial MBS.

At September 30, 2023 all MBS were residential MBS.

At September 30, 2025, AFS securities included $ 793.8 million of residential MBS and $ 69.7 million of commercial MBS.

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

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

13 unchanged sentences

MBS $ 10,997 $ 44 $ 2,919 $ 43

GSE debentures — — 24,818 182

Corporate bonds — — 3,388 612

3 unchanged sentences

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

Management did not record an ACL on securities in an unrealized loss position at September 30, 2024 as management does not believe any of the securities were impaired due to credit quality reasons.

Management did not record an ACL on securities in an unrealized loss position at September 30, 2025 as management did not believe any of the securities were impaired due to credit quality reasons.

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

4 unchanged sentences

In the case of MBS, borrowers on the underlying loans generally have the right to prepay their loans without penalty.

For this reason, MBS are not included in the maturity categories.

For this reason, MBS are not included in the maturity categories in the table below.

Amortized Estimated

1 unchanged sentence

(Dollars in thousands)

One year through five years $ 10,000 $ 10,000

Five years through ten years $ 4,000 $ 3,716

73,077 72,693

MBS 843,369 863,500

10 unchanged sentences

(Dollars in thousands)

Federal Reserve Bank of Kansas City ("FRB of Kansas City") borrowings $ 111,281 $ 519,195

Public unit deposits $ 150,916 $ 108,748

Federal Reserve Bank of Kansas City ("FRB of Kansas City") borrowings 91,130 111,281

$ 242,046 $ 220,029

At September 30, 2023, management intended to sell securities with an estimated fair value of $ 1.30 billion, therefore an unrealized loss of $ 192.6 million associated with those securities was recognized in the consolidated statement of income for the year ended September 30, 2023 as a net loss from securities transactions.

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

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

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

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

The Bank received gross proceeds of $ 1.27 billion from the sale and realized gross losses of $ 14.9 million and gross gains of $ 1.6 million, resulting in a net loss of $ 13.3 million on the sale during fiscal year 2024.

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

LOANS RECEIVABLE AND ALLOWANCE FOR CREDIT LOSSES

9 unchanged sentences

Commercial and industrial 210,119 129,678

Construction 187,676 178,746

Commercial construction 195,886 187,676

Total 2,115,995 1,508,978

11 unchanged sentences

Loan servicing income includes servicing fees withheld from investors and certain charges collected from borrowers, such as late payment fees.

The Bank held borrowers' escrow balances on loans serviced for others of $ 942 thousand and $ 972 thousand as of September 30, 2024 and 2023, respectively.

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

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

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

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

The Bank held borrowers' escrow balances on loans serviced for others of $ 1.0 million and $ 942 thousand as of September 30, 2025 and 2024, respectively.

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

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

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

1 unchanged sentence

The underwriting standards for loans purchased from correspondent lenders were generally similar to the Bank's internal underwriting standards.

The underwriting of loans purchased from correspondent lenders on a loan-by-loan basis was performed by the Bank's underwriters.

The underwriting of loans purchased from correspondent lenders was performed by the Bank's underwriters on a loan-by-loan basis.

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

1 unchanged sentence

The Bank also performs regular documented inspections of the construction project to ensure the funds are being used for the intended purpose and the project is being completed according to the plans and specifications provided.

Commercial loans - The Bank's commercial portfolio includes loans that are originated by the Bank or in participation with a lead bank.

Commercial loans - The Bank's commercial loan portfolio includes loans originated by the Bank or in participation with a lead bank.

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

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

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

At the time of origination, LTV ratios on commercial real estate loans generally do not exceed 85 % of the appraised value of the property securing the loans and the minimum DSCR is generally 1.15 x.

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

For commercial construction loans, LTV ratios generally do not exceed 80 % of the projected appraised value of the property securing the loans and the minimum DSCR is generally 1.15 x, but it applies to the projected cash flows, and the borrower must have successful experience with the construction and operation of properties similar to the subject property.

At the time of origination, LTVs on commercial real estate loans generally do not exceed 85 % of the appraised value of the property securing the loans and the minimum DSCR is generally 1.15 x.

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

For commercial construction loans, LTVs generally do not exceed 80 % of the projected appraised value of the property securing the loans and the minimum DSCR is generally 1.15 x, but it applies to the projected cash flows, and the borrower must have successful experience with the construction and operation of properties similar to the subject property.

Appraisals on properties securing these loans are performed by independent state certified fee appraisers.

For construction loans, guaranties are typically required during the period of construction.

After construction is complete, for select experienced borrowers that have a strong DSCR and low LTV ratio, the guaranty may be reduced or phased out when the property meets certain performance metrics.

After construction is complete, for select experienced borrowers that have a strong DSCR and low LTV, the guaranty may be reduced or phased out when the property meets certain performance metrics.

Additionally, the Bank generally requires the borrower to contribute equity at the start of a project and prior to any Bank funding.

The Bank's commercial and industrial loans are generally made to borrowers and secured by assets located in the Bank's market areas and are underwritten on the basis of the borrower's ability to service the debt from income.

The Bank's commercial and industrial loans are generally made to borrowers located in Kansas and Missouri and are underwritten on the basis of the borrower's ability to service the debt from income.

Working capital loans are primarily collateralized by short-term assets whereas term loans are primarily collateralized by longer-term assets.

In general, commercial and industrial loans involve different types of credit risk than commercial real estate loans due to the nature of the loans and the type of collateral securing the loans.

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

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

Annual reviews are performed for larger loans and lending relationships.

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

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

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

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

10 unchanged sentences

one- to four-family - originated, one- to four-family - correspondent purchased, one- to four-family - bulk purchased, consumer - home equity, consumer - other, commercial - commercial real estate, and commercial - commercial and industrial.

One- to four-family construction loans are included in

the originated class and commercial construction loans are included in the commercial real estate class.

One- to four-family construction loans are included in the originated class and commercial construction loans are included in the commercial real estate class.

As part of the on-going monitoring of the credit quality of the Company's loan portfolio, management tracks certain credit quality indicators including trends related to loan classification and delinquency status.

7 unchanged sentences

The following tables set forth, as of the dates indicated, the amortized cost of loans by class of financing receivable, year of origination or most recent credit decision, and loan classification.

Amortized cost is the amount of unpaid principal, net of undisbursed funds, unamortized premiums and discounts, and deferred fees and costs.

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

1 unchanged sentence

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

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

These two loans were modified during the current fiscal year and classified as nonaccrual at September 30, 2025.

The loans are recourse loans with personal guarantees and have low LTVs.

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

The commercial real estate special mention loan amount presented in the "Fiscal Year 2023" column is related to one loan that was classified as special mention during the current fiscal year.

The loan was not delinquent at September 30, 2025.

September 30, 2025

140 unchanged sentences

Total $ 639,789 $ 1,096,101 $ 1,372,917 $ 1,529,818 $ 827,047 $ 2,339,984 $ 118,360 $ 6,357 $ 7,930,373

Gross Charge-Offs - Since the adoption of ASU 2022-02 on October 1, 2023, the Company has been required to present gross charge-offs by class of financing receivable and year of origination or most recent credit decision.

The following table sets forth the required gross charge-off information for the year ended September 30, 2024.

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

For the Year Ended September 30, 2025

Current Fiscal Fiscal Fiscal Fiscal Revolving of Credit

14 unchanged sentences

Total $ 51 $ 65 $ 25 $ 3 $ — $ 125 $ 2 $ — $ 271

For the Year Ended September 30, 2024

Fiscal Fiscal Fiscal Fiscal Fiscal Revolving of Credit

Year Year Year Year Year Prior Lines of Converted to

2024 2023 2022 2021 2020 Years Credit Term Total

(Dollars in thousands)

One- to four-family:

Originated $ — $ — $ — $ — $ — $ — $ — $ — $ —

Correspondent purchased — — — — — — — — —

Bulk purchased — — — — — — — — —

— — — — — — — — —

Commercial real estate 50 — — — — 30 — — 80

Commercial and industrial — — — — — — — — —

50 — — — — 30 — — 80

Home equity 46 1 — — — — — — 47

Other — 9 15 — — 9 — — 33

46 10 15 — — 9 — — 80

Total $ 96 $ 10 $ 15 $ — $ — $ 39 $ — $ — $ 160

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

32 unchanged sentences

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

The increase in nonaccrual commercial real estate loans as of September 30, 2025 compared to September 30, 2024 was due primarily to two loans that are related to the same borrowing relationship.

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

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

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

9 unchanged sentences

$ 47,796 $ 45,254 $ 10,166 $ 3,010

Loan Modifications - The following table presents the amortized cost basis of loans as of September 30, 2024 that were both experiencing financial difficulties and modified during the year ended September 30, 2024, by class of financing receivable and by type of modification.

Also presented in the table is the percentage of the amortized cost basis of loans as of September 30, 2024 that were modified for borrowers experiencing financial difficulties as compared to the amortized cost basis of each class of financing receivable as of September 30, 2024.

During the year ended September 30, 2024, there was a $ 50 thousand charge-off related to a commercial real estate loan modified during the year ended September 30, 2024.

Loan Modifications - The following tables present the amortized cost basis of loans, as of the dates indicated, that were both experiencing financial difficulties and modified during the periods noted, by class of financing receivable and by type of modification.

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

During the year ended September 30, 2025, there was a $ 3 thousand charge-off related to a one- to four-family originated loan modified during the year ended September 30, 2025.

During the year ended September 30, 2024, there was a $ 50 thousand charge-off related to a commercial real estate loan that was modified during the year ended September 30, 2024.

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

Extension Delay, and Total

Interest and Interest Class of

Principal Rate Payment Term Payment Rate Financing

Forgiveness Reduction Delay Extension Delay Reduction Total Receivable

The commercial real estate payment delay modification during the year ended September 30, 2025 was due primarily to two loans where the Bank entered into an agreement with the borrower which allows the borrower to not make payments until later in calendar year 2025.

These two commercial loans were classified as substandard and nonaccrual at September 30, 2025.

For the Year Ended September 30, 2025

Extension Total

Payment Term Payment Financing

Delay Extension Delay Total Receivable

(Dollars in thousands)

1 unchanged sentence

Originated $ 717 $ 5,988 $ 1,647 $ 8,352 0.2 %

Correspondent — — — 338 1,716 — 2,054 0.09

Correspondent purchased — 463 709 1,172 0.1

Bulk purchased 1,564 — — 1,564 1.4

8 unchanged sentences

Total $ 49,867 $ 6,486 $ 2,356 $ 58,709 0.7

Financial effect of loan modifications - The table below presents the financial effects of loan modifications during the year ended September 30, 2024, including the weighted average term extension, weighted average payment delay, and weighted average interest rate reduction.

For the Year Ended September 30, 2024

Term Payment Interest Rate

Extension Delays Reduction

One- to four-family:

Originated 33 months 4 months N/A

Correspondent 36 months 4 months N/A

Commercial real estate 24 months 6 months N/A

Commercial and industrial 6 months 6 months 0.50 %

Consumer home equity N/A 7 months N/A

Performance of loan modifications - The following table provides information about the subsequent performance during the year ended September 30, 2024 of loans modified for borrowers experiencing financial difficulty.

For the Year Ended September 30, 2024

30 to 89 Days

Delinquent 90 or More Days

Delinquent or in Foreclosure Total

Delinquent Loans Current

Amortized Cost

Extension Delay, and Total

and Interest Class of

Payment Term Payment Rate Financing

Delay Extension Delay Reduction Total Receivable

(Dollars in thousands)

1 unchanged sentence

Originated $ — $ 1,547 $ 6,992 $ — $ 8,539 0.2 %

Correspondent 284 425 709 1,345 2,054

Correspondent purchased — 338 1,716 — 2,054 0.1

Bulk purchased — — — — — —

— 1,885 8,708 — 10,593 0.2

Commercial real estate 8,196 — 192 — 8,388 0.6

Commercial & industrial 227 — 227 438 665

Commercial and industrial — — 653 12 665 0.5

8,196 — 845 12 9,053 0.6

Consumer loans:

2 unchanged sentences

89 — — — 89 0.1

TDRs - Prior to the adoption of ASU 2022-02 on October 1, 2023, loans were accounted for as TDRs if the Bank granted a concession to a borrower experiencing financial difficulties.

The following tables present the amortized cost for the periods presented, prior to restructuring and immediately after restructuring in all loans restructured during the years presented.

For the Year Ended September 30, 2023

Number Pre- Post-

of Restructured Restructured

Contracts Outstanding Outstanding

Total $ 8,285 $ 1,885 $ 9,553 $ 12 $ 19,735 0.2

Financial effect of loan modifications - The table below presents the financial effect of loan modifications during the periods noted, including the weighted average payment delay, weighted average interest rate reduction, and weighted average term extension.

For the Year Ended September 30, 2025 For the Year Ended September 30, 2024

Payment Term Payment Interest Rate Term

Delay Extension Delay Reduction Extension

One- to four-family:

Originated 8 months 30 months 4 months N/A 33 months

Correspondent purchased 8 months 33 months 4 months N/A 36 months

Commercial real estate 8 months N/A 6 months N/A 24 months

Commercial and industrial N/A N/A 6 months 0.50 % 6 months

Consumer home equity 9 months 14 months 7 months N/A N/A

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

The following table presents the performance of such loans, based on amortized cost, by class of financing receivable as of September 30, 2025 and September 30, 2024, on loans modified during the previous 12-months for borrowers experiencing financial difficulty that were delinquent as of September 30, 2025 and September 30, 2024, respectively.

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

As of September 30, 2025 As of September 30, 2024

30 to 89 Days

Delinquent 90 or More Days

Delinquent or in Foreclosure Total

Delinquent Loans 30 to 89 Days

Delinquent 90 or More Days

Delinquent or in Foreclosure Total

Delinquent Loans

(Dollars in thousands)

5 unchanged sentences

Commercial and industrial — — — 227 — 227

Consumer loans:

Home equity — — — — — —

Other — — — — — —

$ 885 $ 285 $ 1,170 $ 2,453 $ 1,195 $ 3,648

For the Year Ended September 30, 2022

Number Pre- Post-

of Restructured Restructured

Contracts Outstanding Outstanding

The following table presents the amortized cost basis of loans that had a payment default during the year ended September 30, 2025 or September 30, 2024 and were modified to borrowers experiencing financial difficulty in the 12-months prior to the default date, by class of financing receivable and by type of modification.

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

For the Year Ended September 30, 2025 For the Year Ended September 30, 2024

Extension Extension

Payment Term Payment Payment

Delay Extension Delay Total Delay

(Dollars in thousands)

5 unchanged sentences

Commercial and industrial — — 142 142 —

Consumer loans:

Home equity 84 — — 84 —

Other — — — — —

$ 165 $ 230 $ 1,488 $ 1,883 $ 1,195

The following table provides information on TDRs that became delinquent during the periods presented within 12 months after being restructured.

For the Years Ended

September 30, 2023 September 30, 2022

Number of Amortized Number of Amortized

Contracts Cost Contracts Cost

Troubled Debt Restructurings ("TDRs") - Prior to the adoption of ASU 2022-02 on October 1, 2023, loans were accounted for as TDRs if the Bank granted a concession to a borrower experiencing financial difficulties.

The following table presents the amortized cost for the year ended September 30, 2023, prior to restructuring and immediately after restructuring in all loans restructured during the year ended September 30, 2023.

During the year ended September 30, 2023, there was one single-family originated TDR with an amortized cost of $ 8 thousand that became delinquent within 12 months after being restructured.

Number Pre- Post-

of Restructured Restructured

Contracts Outstanding Outstanding

(Dollars in thousands)

6 unchanged sentences

Home equity 1 38 38

Other — — — —

4 $ 669 $ 690

1 unchanged sentence

For the Year Ended September 30, 2025

One- to Four-Family

Correspondent Bulk

Originated Purchased Purchased Total Commercial Consumer Total

One- to four- Commercial Commercial

Family Real Estate and Industrial Total Consumer Total

(Dollars in thousands)

Beginning balance $ 3,673 $ 17,968 $ 1,186 $ 19,154 $ 208 $ 23,035

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

Balance at October 1, 2023 2,152 2,973 221 5,346 18,182 251 23,779

Charge-offs ( 116 ) — ( 62 ) ( 62 ) ( 93 ) ( 271 )

3 unchanged sentences

For the Year Ended September 30, 2024

One- to Four-Family

Correspondent Bulk

Originated Purchased Purchased Total Commercial Consumer Total

One- to four- Commercial Commercial

Family Real Estate and Industrial Total Consumer Total

(Dollars in thousands)

Beginning balance $ 5,328 $ 17,076 $ 1,104 $ 18,180 $ 251 $ 23,759

Adoption of ASU 2022-02 18 — 2 2 — 20

Balance at October 1, 2023 5,346 17,076 1,106 18,182 251 23,779

Charge-offs — ( 80 ) — ( 80 ) ( 80 ) ( 160 )

3 unchanged sentences

For the Year Ended September 30, 2023

One- to Four-Family

Correspondent Bulk

Originated Purchased Purchased Total Commercial Consumer Total

One- to four- Commercial Commercial

Family Real Estate and Industrial Total Consumer Total

(Dollars in thousands)

8 unchanged sentences

• Economic Forecast - Management considered several economic forecasts provided by a third party and selected an economic forecast that was the most appropriate considering the facts and circumstances at September 30, 2025.

The forecasted economic indices applied to the model at September 30, 2024 were the national unemployment rate, changes in commercial real estate price index, changes in home values, and changes in the U.S.

The forecasted economic indices applied to the model at September 30, 2025 were the national unemployment rate, changes in commercial real estate price index, changes in home values, changes in the U.S.

consumer price index, and changes in the U.S.

gross domestic product.

4 unchanged sentences

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

• Qualitative factors - 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.

• Qualitative factors - 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.

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

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

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

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

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

◦ For one- to four-family loans, management believes there is potential downside market risk with the recent housing price appreciation related to, in particular, newer originations and developed a qualitative factor to account for this risk.

To determine the appropriate amount of the one- to four-family loan qualitative factor as of September 30, 2024, management considered external historical home price index trending information, along with the Bank's recent origination/purchase activity, historical loan loss experience and portfolio balance trending, the one-to four-family loan portfolio composition with regard to loan size, and management's knowledge of the Bank's loan portfolio and the one- to four-family lending industry.

This qualitative factor replaced the economic uncertainties qualitative factor that was in place at September 30, 2023 and was less than the amount of the economic uncertainty qualitative factor at September 30, 2024 resulting in a decrease in ACL for one- to four-family loans compared to the prior year.

Reserve for Off-Balance Sheet Credit Exposures - The following is a summary of the changes in the reserve for off-balance sheet credit exposures during the periods indicated.

At September 30, 2024 and 2023, the Bank's off-balance sheet credit exposures totaled $ 826.5 million and $ 837.7 million, respectively.

The increase in the reserve for off-balance sheet credit exposures during the current year was due to an increase in the balance of commercial off-balance sheet credits along with an increase in the ACL to loan ratio, specifically for commercial construction loans.

For the Years Ended

September 30, 2024 September 30, 2023

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

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

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

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

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

To determine the appropriate amount of the one- to four-family loan qualitative factor as of September 30, 2025, management considered external historical home price index trending information, along with historical loan loss experience and portfolio balance trending, the one-to four-family loan portfolio composition with regard to loan size, and management's knowledge of the Bank's loan portfolio and the one- to four-family lending industry.

Reserve for Off-Balance Sheet Credit Exposures - At September 30, 2025 and 2024, the Bank's off-balance sheet credit exposures totaled $ 821.6 million and $ 826.5 million, respectively.

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

The decrease in the reserve for off-balance sheet credit exposures during the current fiscal year was due mainly to a decrease in commercial off-balance sheet credit exposure balances.

For the Year Ended September 30,

(Dollars in thousands)

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Premises and equipment, net $ 89,314 $ 91,463

At September 30, 2024, the Company's operating leases had remaining terms that ranged from 0.1 years to 33 years, some of which included the assumed exercise of renewal options that the Company considers to be reasonably certain.

At September 30, 2025, the Company's operating leases had remaining terms that ranged from 1 year to 32 years, some of which included the assumed exercise of renewal options that the Company considers to be reasonably certain.

A right-of-use asset of $ 7.7 million and $ 8.5 million was included in other assets and a lease liability of $ 8.3 million and $ 8.9 million was included in other liabilities for the Company's operating leases on the consolidated balance sheets, as of September 30, 2025 and September 30, 2024 respectively.

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Cash paid for amounts included in the measurement of lease liabilities 780 1,130 1,211

The Company entered into finance leases during the current year.

The Company's finance leases as of September 30, 2024 had remaining terms that ranged from 3 years to 23 years.

A finance lease right-of-use asset of $ 1.0 million was included in premises and equipment, net and a finance lease liability of $ 1.1 million was included in borrowings on the consolidated balance sheets, as of September 30, 2024.

At September 30, 2025, the Company's finance leases had remaining terms that ranged from 2 years to 22 years.

A finance lease right-of-use asset of $ 971 thousand and $ 1.0 million was included in premises and equipment, net at September 30, 2025 and September 30, 2024, respectively.

The Company included a finance lease liability of $ 1.1 million in borrowings on the consolidated balance sheets at both September 30, 2025 and September 30, 2024.

As of September 30, 2025, for the Company's finance leases, the weighted average remaining lease term was 19 years and the weighted average discount rate was 5.18 %.

During the year ended September 30, 2024, amortization expense of finance lease right-of-use assets, interest expense on finance lease liabilities, and cash paid for amounts included in the measurement of finance lease liabilities was $ 59 thousand, $ 53 thousand and $ 73 thousand, respectively.

The following table presents lease expense, interest expense, and supplemental cash flow information related to the Company's finance leases for the years indicated.

The Company did not have any finance leases during the fiscal year ended September 30, 2023.

For the Year Ended September 30,

(Dollars in thousands)

Lease expense $ 75 $ 59

Interest expense 55 53

Cash paid for amounts included in the measurement of lease liabilities 97 73

The following table presents future minimum payments, for operating and finance leases with initial or remaining terms in excess of one year as of September 30, 2025:

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As of September 30, 2025, there was no impairment recorded on goodwill or other intangible assets.

The estimated amortization expense for the next five years related to the core deposit and other intangible assets as of September 30, 2024 is presented in the following table (dollars in thousands):

The core deposit and other intangible assets estimated amortization for fiscal year 2026 is $ 223 thousand.

All future periods of estimated amortization expense related to core deposit and other intangible assets are zero .

DEPOSITS AND BORROWED FUNDS

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Borrowings - Borrowings at September 30, 2025 consisted of $ 1.95 billion in FHLB advances, of which $ 1.85 billion were fixed-rate advances and $ 100.0 million were variable-rate advances, and $ 1.1 million in finance leases.

Borrowings at September 30, 2023 consisted of $ 2.38 billion in FHLB advances, of which $ 2.02 billion were fixed-rate advances and $ 365.0 million were variable-rate advances, and $ 500.0 million of borrowings from the Federal Reserve's Bank Term Funding Program ("BTFP").

Borrowings at September 30, 2024 consisted of $ 2.18 billion in FHLB advances, of which $ 1.98 billion were fixed-rate advances and $ 200.0 million were variable-rate advances, and $ 1.1 million in finance leases.

There were no borrowings against the variable-rate FHLB line of credit at September 30, 2025 or 2024.

Additionally, the Bank is authorized to borrow from the FRB of Kansas City's "discount window," but there were no such borrowings at September 30, 2025 or 2024.

FHLB advances and BTFP borrowings at September 30, 2024 and 2023 were comprised of the following:

The Bank is a member of the American Finance Exchanges ("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 and 2024, the Bank did not have any such borrowings outstanding through the AFX.

FHLB advances at September 30, 2025 and 2024 were comprised of the following:

(Dollars in thousands)

FHLB advances $ 1,950,984 $ 2,180,656

BTFP borrowings — 500,000

Deferred prepayment penalty - FHLB advances ( 1,277 ) ( 2,173 )

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Weighted average effective interest rate on FHLB advances (1)

Weighted average contractual interest rate on BTFP borrowings — 4.70

(1) The effective interest rate includes the net impact of deferred amounts and interest rate swaps related to the adjustable-rate FHLB advances.

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The Bank's borrowing limit approved by FHLB senior management was 45 % as of September 30, 2025, and 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.

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 amount that could be borrowed under the BTFP was based upon the par value of securities pledged as collateral, the term could be up to one year in length, and the borrowings could be prepaid without penalty.

Advances could be requested under the BTFP until March 11, 2024.

Subsequent to September 30, 2023, the Bank repaid the $ 500.0 million of BTFP borrowings and did not enter into any additional BTFP borrowings after that point in time.

At September 30, 2025 and 2024, the Bank had entered into interest rate swap agreements with a total notional amount of $ 100.0 million and $ 200.0 million, respectively, in order to hedge the variable cash flows associated with $ 100.0 million and $ 200.0 million, respectively, of adjustable-rate FHLB advances.

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

At September 30, 2024 and September 30, 2023, the interest rate swaps were in a gain position with a total fair value of $ 2.1 million and $ 13.0 million, respectively, which was reported in other assets on the consolidated balance sheet.

At September 30, 2025 and September 30, 2024, the interest rate swaps were in a gain position with a total fair value of $ 926 thousand and $ 2.1 million, respectively, which was reported in other assets on the consolidated balance sheet.

During fiscal year 2025 and 2024, $ 2.3 million and $ 6.1 million, respectively, was reclassified from AOCI as a decrease to interest expense.

At September 30, 2024, the Company estimated that $ 1.8 million of interest expense associated with the interest rate swaps would be reclassified from AOCI as a decrease to interest expense on FHLB borrowings during the next 12 months.

The Bank has minimum collateral

posting thresholds with its derivative counterparties and posts collateral on a daily basis.

The Bank held cash collateral of $ 2.1 million at September 30, 2024 and $ 14.0 million at September 30, 2023.

At September 30, 2025, the Company estimated that $ 641 thousand of interest expense associated with the interest rate swaps would be reclassified from AOCI as a decrease to interest expense on FHLB borrowings during the next 12 months.

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

The Bank held cash collateral of $ 920 thousand at September 30, 2025 and $ 2.1 million at September 30, 2024.

During the year ended September 30, 2025, the Bank prepaid fixed-rate FHLB advances totaling $ 200.0 million with a weighted average contractual interest rate of 4.70 % and a weighted average remaining term of 0.6 years, and replaced these advances with fixed-rate FHLB advances totaling $ 200.0 million with a weighted average contractual interest rate of 3.83 % and a weighted average term of 2.5 years.

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

The prepayment penalties are being recognized in interest expense over the life of the new FHLB advances.

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

In October 2025, the Bank refinanced a $ 50.0 million fixed-rate advance with a weighted average effective rate of 4.03 % and a weighted average life ("WAL") of 0.5 years, 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.

This transaction resulted in prepayment fees of $ 11 thousand which will be recognized in interest expense over the life of the new FHLB advance.

Periodically, management has utilized a leverage 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 ("leverage strategy").

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Leverage strategy borrowings are repaid prior to each quarter end.

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

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

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.

Management continues to monitor the net interest rate spread and overall profitability of the leverage strategy.

Scheduled Repayment of Borrowed Funds and Maturity of Certificates of Deposit - The following table presents the scheduled repayment of term borrowings, at par, and the maturity of certificates of deposit as of September 30, 2024.

With the exception of amortizing FHLB advances, FHLB advances are payable at maturity.

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

At September 30, 2024, the Bank's FHLB advances had maturities ranging from October 2024 to August 2029.

At September 30, 2025, the Bank's FHLB advances had maturities ranging from October 2025 to October 2029.

Borrowings Amount

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Increases (decreases) in taxes resulting from:

Pre-1988 bad debt recapture 5,406 10.0 — — — —

State taxes, net of Federal tax effect 1,903 2.3 2,497 4.8 ( 5,412 ) 3.9

Low income housing tax credits, net ( 2,244 ) ( 4.2 ) ( 2,303 ) 1.6 ( 2,238 ) ( 2.1 )

Federal tax credits, net ( 2,414 ) ( 2.9 ) ( 2,244 ) ( 4.2 ) ( 2,303 ) 1.6

State tax law enactment ( 857 ) ( 1.0 ) — — — —

ESOP related expenses, net ( 435 ) ( 0.5 ) ( 448 ) ( 0.8 ) ( 652 ) 0.5

Pre-1988 bad debt recapture — — 5,406 10.0 — —

Other ( 635 ) ( 0.8 ) ( 480 ) ( 1.1 ) 251 ( 0.2 )

$ 14,996 18.1 % $ 16,093 29.7 % $ ( 37,296 ) 26.8 %

State tax law enactment - During the current fiscal year, the State of Kansas enacted a change in the tax law that is effective October 1, 2027 for the Company and the Bank.

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

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

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

Upon the tax law enactment, the Bank remeasured its state deferred tax assets and liabilities expected as of October 1, 2027.

The Bank recorded an $ 857 thousand reduction in net state income tax expense during the year end September 30, 2025 related to this tax law change.

Pre-1988 bad debt recapture - Prior to the Small Business Job Protection Act (the "1996 Act"), the Bank was permitted to deduct, up to a specified formula limit, a certain percentage of income as bad debts, for which the Bank was not required to establish a deferred tax liability.

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would be deemed to be drawn out of the Bank's pre-1988 bad debt reserve requiring a payment of income tax at the then-current rate by the Bank on the amount of earnings deemed to be removed from the pre-1988 bad debt reserves for such distributions ("pre-1988 bad debt recapture").

The net loss associated with the strategic securities transaction ("securities strategy") that was recognized in fiscal year 2023 net income will be recognized in the Company's fiscal year 2024 income tax return due to the sale of the securities occurring in October 2023 (in fiscal 2024).

As a result, the Company will report a taxable net loss on its September 30, 2024 income tax return, resulting in negative current and accumulated earnings and profits for the Bank for the current fiscal year.

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 and resulted in income tax expense in fiscal year 2024 equivalent to the distributions paid by the Bank times the Bank's current statutory tax rate of 21 %.

The net loss associated with the strategic securities transaction ("securities strategy") that was recognized in fiscal year 2023 net income was recognized in the Company's fiscal year 2024 income tax return due to the sale of the securities occurring in October 2023 (in fiscal 2024).

Consequently, the Company reported a taxable net loss on its fiscal year 2024 income tax return, resulting in negative current and accumulated earnings and profits for the Bank for fiscal year 2024.

This required the Bank to draw upon the pre-1988 bad debt reserves for distributions from the Bank to the Company during fiscal year 2024 which resulted in income tax expense in fiscal year 2024 equivalent to the distributions paid by the Bank times the Bank's current statutory tax rate of 21 %.

During the year ended September 30, 2024, the Bank recorded $ 5.4 million of income tax expense related to these distributions.

During the current fiscal year, the Bank reached a point where there was sufficient taxable income to replenish the Bank's accumulated earnings and profits to a positive level.

Therefore, the distributions from the Bank to the Company during the current fiscal year were not taxable as distributions from pre-1988 bad debt reserves.

The Bank estimates its pre-1988 bad debt reserves to be $ 75.9 million at September 30, 2025, which equates to an unrecorded deferred tax liability of $ 15.9 million at September 30, 2025.

The components of the net deferred income tax assets (liabilities) as of September 30, 2024 and 2023 were as follows:

One Big Beautiful Bill Act ("OBBBA") - On July 4, 2025, the H.R.

1 - OBBBA was enacted into law.

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

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

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

Deferred income tax assets and liabilities - The table below presents the components of the net deferred income tax assets (liabilities) as of September 30, 2025 and 2024.

The net deferred tax assets of $ 21.8 million presented in the table below as of September 30, 2025 was composed of the $ 23.8 million of federal deferred tax assets, net and $ 2.1 million of state deferred tax liabilities, net.

(Dollars in thousands)

Deferred income tax assets:

Federal tax credit carry forward $ 22,305 $ 12,813

Net operating loss carry forward 15,286 30,459

Low income housing tax credit carry forward 12,813 —

ACL 5,048 4,837

Lease liabilities 2,209 2,156

Salaries, deferred compensation and employee benefits 1,954 1,431

ESOP compensation 1,480 1,522

Reserve for off-balance sheet credit exposures 1,313 1,451

Salaries, deferred compensation and employee benefits 1,431 1,269

Net purchase discounts related to acquired loans 86 116

Low income housing partnerships 1 6

Net loss on securities transactions — 47,006

Unrealized loss on AFS securities — 368

Other 648 829

5 unchanged sentences

Unrealized gain on AFS securities 4,795 6,382

ACL 2,741 2,936

Premises and equipment 2,104 2,317

Lease right-of-use assets 2,061 2,043

ACL 1,854 2,741

Unrealized gain on interest rate swaps 224 508

3 unchanged sentences

Net deferred tax assets $ 21,770 $ 21,978

During the year ended September 30, 2024, the Company reversed the $ 47.0 million deferred tax asset as of September 30, 2023 related to the net loss on the securities transaction and recorded a deferred tax asset for the anticipated taxable net loss in the current fiscal year.

The deferred tax asset related to the taxable net loss, or net operating loss, was $ 30.5 million at September 30, 2024.

The gross federal and state net operating loss amount at September 30, 2024 was $ 126.0 million and will carryforward indefinitely .

In addition, the Company recorded a deferred tax asset in the current fiscal year related to its low income housing tax credits that are currently not utilized due to income tax return income limitations.

The related deferred tax asset at September 30, 2024 was $ 12.8 million.

The gross federal and state net operating loss amount at September 30, 2025 related to the $ 15.3 million net operating loss carry forward deferred tax asset was $ 63.1 million, which will carry forward indefinitely .

In addition, the Company had a deferred tax asset of $ 22.3 million as of September 30, 2025 related to federal tax credits that will not be utilized on the Company's fiscal year 2025 federal tax return due to income tax return income limitations.

The majority of the federal tax credits relate to low income housing tax credits.

Federal tax credits carry forward for 20 years .

1 unchanged sentence

Due to the low level of net loan charge-offs experienced by the Bank historically, at times, the Bank's bad debt deduction on the Kansas privilege tax return has been in excess of actual net charge-offs, resulting in a state deferred tax liability, which is presented separately from the federal deferred tax asset related to ACL.

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

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

At September 30, 2025 and 2024, the Company had a valuation allowance of $ 42 thousand and $ 27 thousand, respectively, related to the net operating losses generated by the Company's consolidated Kansas corporate income tax return as management believes there will not be sufficient taxable income to fully utilize these deferred tax assets before they begin to expire in 2028 and thereafter.

3 unchanged sentences

The Company files income tax returns in the U.S.

federal jurisdiction and the state of Kansas, as well as other states where it has either established nexus under an economic nexus theory or has exceeded enumerated nexus thresholds based on the amount of loan interest income derived from sources within a given state.

federal jurisdiction and the state of Kansas, as well as other states where it has either established a nexus under an economic nexus theory or has exceeded enumerated nexus thresholds based on the amount of loan interest income derived from sources within a given state.

With few exceptions, the Company is no longer subject to U.S.

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Dividends on unallocated ESOP shares in excess of the debt service payment are recorded as compensation expense and distributed to participants or participants' ESOP accounts.

Compensation expense related to the ESOP was $ 927 thousand for the year ended September 30, 2024, $ 1.2 million for the year ended September 30, 2023, and $ 1.7 million for the year ended September 30, 2022.

Of these amounts, $ 725 thousand and $ 472 thousand of income, and $ 88 thousand of expense related to the difference between the market price of the Company's common stock when the shares were acquired by the ESOP trust ($10 per share) and the average market price of the Company's common stock during the years ended September 30, 2024, 2023, and 2022, respectively.

Compensation expense related to the ESOP was $ 997 thousand for the year ended September 30, 2025, $ 927 thousand for the year ended September 30, 2024, and $ 1.2 million for the year ended September 30, 2023.

Of these amounts, $ 655 thousand, $ 725 thousand, and $ 472 thousand of income is related to the difference between the market price of the Company's common stock when the shares were acquired by the ESOP trust ($10 per share) and the average market price of the Company's common stock during the years ended September 30, 2025, 2024, and 2023, respectively.

The market price of the Company's common stock averaged below $10 per share during the years ended September 30, 2025, 2024 and 2023, which is why income rather than expense was recognized for market price differences for those years.

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STOCK-BASED COMPENSATION

The Company has a Stock Option Plan, a Restricted Stock Plan, and an Equity Incentive Plan, all of which are considered share-based plans.

The Company has a Stock Option Plan, a Restricted Stock Plan, and an Equity Incentive Plan ("2012 Equity Incentive Plan"), all of which are considered share-based plans.

The Stock Option Plan and Restricted Stock Plan expired in April 2015.

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The objectives of the 2012 Equity Incentive Plan are to provide additional compensation to certain officers, directors and key employees by facilitating their acquisition of an equity interest in the Company and enable the Company to retain personnel of experience and ability in key positions of responsibility.

Stock Option Plans – There are currently 61,565 stock options outstanding as a result of grants awarded from the Stock Option Plan.

Stock Option Plans – There are currently no stock options outstanding as a result of grants awarded under the original Stock Option Plan.

The 2012 Equity Incentive Plan had 5,907,500 stock options originally eligible to be granted and, as of September 30, 2025, the Company had 4,466,029 stock options still available for future grants under this plan.

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The fair value of stock option grants is estimated on the date of the grant using the Black-Scholes option pricing model.

At September 30, 2024, the Company had 316,374 stock options outstanding with a weighted average exercise price of $ 12.48 and a weighted average contractual life of 1.7 years, all of which were exercisable.

At September 30, 2025, the Company had 231,809 stock options outstanding from the 2012 Equity Incentive Plan with a weighted average exercise price of $ 11.98 and a weighted average contractual life of 1.2 years, all of which were exercisable.

The exercise price may be paid in cash, shares of common stock, or a combination of both.

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Management believes that as of September 30, 2025, the Bank and Company met all capital adequacy requirements to which they were subject and that there have been no conditions or events subsequent to September 30, 2025 that would have changed this assessment.

At September 30, 2023, the Bank did not meet the requirements to elect the CBLR and the Company met the requirements but did not elect the CBLR.

Since the Bank did not then meet the CBLR requirements it was required at September 30, 2023 to maintain a capital conservation buffer of 2.50% above certain minimum risk-based capital ratios for capital adequacy purposes in order to be considered well capitalized and to avoid certain restrictions on capital distributions and other payments, including dividends, share repurchases, and certain compensation.

The Bank and Company met all capital adequacy requirements as of September 30, 2023 to which they were subject, including the capital conservation buffer.

For Capital Corrective Action

Actual Adequacy Purposes Provisions

Amount Ratio Amount Ratio Amount Ratio

Actual Adequacy Purposes

Amount Ratio Amount Ratio

(Dollars in thousands)

As of September 30, 2025

CBLR $ 874,067 9.2 % $ 853,970 9.0 % N/A N/A

As of September 30, 2023

Tier 1 leverage $ 903,969 8.5 % $ 423,358 4.0 % $ 529,197 5.0 %

Common Equity Tier 1 ("CET1") capital 903,969 16.0 254,670 4.5 367,856 6.5

Tier 1 capital 903,969 16.0 339,559 6.0 452,746 8.0

Total capital 931,823 16.5 452,746 8.0 565,932 10.0

As of September 30, 2024

CBLR $ 957,481 10.1 % $ 853,927 9.0 % N/A N/A

Bank $ 935,267 9.6 % $ 876,469 9.0 %

Company $ 984,902 10.1 % $ 876,448 9.0 %

As of September 30, 2024

Tier 1 leverage $ 1,024,880 9.7 % $ 423,312 4.0 % N/A N/A

CET1 capital 1,024,880 18.1 254,681 4.5 N/A N/A

Tier 1 capital 1,024,880 18.1 339,574 6.0 N/A N/A

Total capital 1,052,734 18.6 452,766 8.0 N/A N/A

Bank $ 874,067 9.2 % $ 853,970 9.0 %

Company $ 957,481 10.1 % $ 853,927 9.0 %

Generally, savings institutions, such as the Bank, may make capital distributions during any calendar year equal to the earnings of the previous two calendar years and current year-to-date earnings.

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Cash flows are determined by taking any embedded options into consideration and are discounted using current market yields for securities with similar credit profiles.

Interest Rate Swaps - The Company's interest rate swaps are designated as cash flow hedges and are reported at fair value on the consolidated balance sheet in other assets if in a gain position, and in other liabilities if in a loss position, with any unrealized gains and losses, net of taxes, reported as AOCI in stockholders' equity.

Interest Rate Swaps - The Company's interest rate swaps are designated as cash flow hedges and are reported at fair value in other assets on the consolidated balance sheet if in a gain position and in other liabilities if in a loss position, with any unrealized gains and losses, net of taxes, reported as AOCI in stockholders' equity.

Deposits and Borrowed Funds" for additional information.

12 unchanged sentences

MBS $ 863,500 $ — $ 863,500 $ —

GSE debentures 69,305 — 69,305 —

Corporate bonds 3,716 — 3,716 —

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Corporate bonds 3,388 — 3,388 —

Municipal bonds 942 — 942 —

$ 856,266 $ — $ 856,266 $ —

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

The fair value of collateral dependent loans/loans individually evaluated for loss on a non-recurring basis during fiscal years 2024 and 2023 that were still held in the portfolio as of September 30, 2024 and 2023 was $ 8.9 million and $ 4.0 million, respectively.

The fair value of collateral dependent loans/loans individually evaluated for loss on a non-recurring basis during fiscal years

2025 and 2024 that were still held in the portfolio as of September 30, 2025 and 2024 was $ 53.9 million and $ 8.9 million, respectively.

The increase in the balance from September 30, 2024 was due primarily to two commercial real estate loans that were modified during the current fiscal year and were reported as substandard and nonaccrual at September, 30, 2025.

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

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Management does not adjust or apply a discount to the appraised value of one- to four-family loans, except for the estimated sales cost noted above, and the primary unobservable input for these loans was the appraisal.

For commercial loans, if the most recent appraisal or book value of the collateral does not reflect current market conditions due to the passage of time and/or other factors, management will adjust the existing appraised or book value based on

knowledge of local market conditions, recent transactions, and estimated selling costs, if applicable.

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

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

The fair value of one- to four-family OREO measured on a non-recurring basis during fiscal year 2024 that was still held in the portfolio as of September 30, 2024 was $ 55 thousand.

There was no one- to four-family OREO measured on a non-recurring basis during fiscal year 2023 that was still held in the portfolio as of September 30, 2023.

The one- to four-family OREO held at September 30, 2023 was measured during fiscal year 2022.

The fair value of one- to four-family OREO measured on a non-recurring basis during fiscal years 2025 and 2024 that was still held in the portfolio as of September 30, 2025 and 2024 was $ 197 thousand and $ 55 thousand, respectively.

The carrying value of the properties equaled the fair value of the properties at September 30, 2025 and 2024.

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Beginning balance $ 20,032 $ 1,595 $ 21,627

Other comprehensive income (loss), before reclassifications 22,362 ( 2,135 ) 20,227

Other comprehensive (loss) income, before reclassifications ( 4,980 ) 1,391 ( 3,589 )

Amount reclassified from AOCI, net of taxes of $ 727

— ( 2,283 ) ( 2,283 )

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

( 1,188 ) — ( 1,188 )

Other comprehensive income (loss) 21,174 ( 8,247 ) 12,927

Other comprehensive (loss) ( 4,980 ) ( 892 ) ( 5,872 )

Ending balance $ 15,052 $ 703 $ 15,755

6 unchanged sentences

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

Other comprehensive income, before reclassifications 8,355 5,957 14,312

Other comprehensive income (loss), before reclassifications 22,362 ( 2,135 ) 20,227

Amount reclassified from AOCI, net of taxes of $ 1,967

2 unchanged sentences

( 1,188 ) — ( 1,188 )

Other comprehensive income 153,977 356 154,333

Other comprehensive income (loss) 21,174 ( 8,247 ) 12,927

Ending balance $ 20,032 $ 1,595 $ 21,627

9 unchanged sentences

— ( 5,601 ) ( 5,601 )

Other comprehensive income (loss) ( 159,770 ) 30,442 ( 129,328 )

Reclassification adjustment for net losses on AFS securities included in net income, net of taxes of $( 47,000 )

145,622 — 145,622

Other comprehensive income 153,977 356 154,333

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

33 unchanged sentences

Note receivable - ESOP 31,139 32,731

Receivable from the Bank — 2,438

Income taxes receivable, net 479 423

29 unchanged sentences

Total non-interest expense 1,893 2,073 1,875

INCOME BEFORE INCOME TAX (BENEFIT) EXPENSE AND EQUITY IN

UNDISTRIBUTED (EXCESS OF DISTRIBUTION OVER) EARNINGS OF

SUBSIDIARY 26,114 86,578 111,513

INCOME BEFORE INCOME TAX EXPENSE (BENEFIT) AND EQUITY IN UNDISTRIBUTED (EXCESS OF DISTRIBUTION OVER) EARNINGS OF SUBSIDIARY 13,731 26,114 86,578

INCOME TAX (BENEFIT) EXPENSE ( 56 ) ( 5 ) 71

INCOME BEFORE (EXCESS OF DISTRIBUTION OVER)/EQUITY IN

UNDISTRIBUTED EARNINGS OF SUBSIDIARY 26,119 86,507 111,562

INCOME BEFORE EQUITY IN UNDISTRIBUTED (EXCESS OF DISTRIBUTION OVER) EARNINGS OF SUBSIDIARY 13,787 26,119 86,507

EQUITY IN (EXCESS OF DISTRIBUTION OVER) UNDISTRIBUTED EARNINGS OF SUBSIDIARY 54,238 11,891 ( 188,166 )

29 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 8. Financial Statements and Supplementary Data