Capitol Federal Financial, Inc. 10-K

Item 8. Financial Statements and Supplementary Data Report of Independent Registered Public Accounting Firm To the Stockholders and Board of Directors Capitol Federal Financial, Inc.: Opinion on Internal Control Over Financial Reporting We have audited Capitol Federal Financial, Inc. and subsidiary's (the Company) 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. 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 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 The Company’s management is responsible for maintaining effective internal control over financial reporting and for its assessment of the effectiveness of internal control over financial reporting, included in the accompanying Management's Report on Internal Control Over Financial Reporting. Our responsibility is to express an opinion on the Company’s internal control over financial reporting based on our audit. 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. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether effective internal control over financial reporting was maintained in all material respects. Our audit of internal control over financial reporting included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. Our audit also included performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion. Definition and Limitations of Internal Control Over Financial Reporting A company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company’s internal control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company’s assets that could have a material effect on the financial statements. Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate. /s/ KPMG LLP Kansas City, Missouri November 26, 2025 65 REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM To the Stockholders and the Board of Directors Capitol Federal Financial, Inc.: Opinion on the Consolidated Financial Statements 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. We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the Company’s 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, and our report dated November 26, 2025 expressed an unqualified opinion on the effectiveness of the Company’s internal control over financial reporting. Basis for Opinion 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 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 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 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 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 The critical audit matter communicated below is a matter arising from the current period audit of the consolidated financial statements that was communicated or required to be communicated to the audit committee and that: (1) relates to accounts or disclosures that are material to the consolidated financial statements and (2) involved our especially challenging, subjective, or complex judgments. The communication of a critical audit matter does not alter in any way our opinion on the consolidated financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing a separate opinion on the critical audit matter or on the accounts or disclosures to which it relates. Allowance for credit losses on loans evaluated on a collective basis As discussed in Notes 1 and 4 to the consolidated financial statements, the Company’s total allowance for credit losses on loans (ACL) was $24.0 million as of September 30, 2025, a substantial portion of which related to the allowance for credit losses for loans evaluated on a collective basis (the collective ACL). The collective ACL includes the measure of expected lifetime credit losses on a pool basis, with loans aggregated into pools based on similar risk characteristics. The Company utilized a discounted cash flow (DCF) methodology to calculate the collective ACL. 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. These historical loss rates are compared to historical data related to economic indices during the same time periods over which the historical loss rates were calculated, and a correlation is estimated using regression analysis. The Company's model pairs the results of the regression analysis with an economic forecast of these same economic indices in order to model probabilities of default (PDs). 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 66 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. These cash flows are discounted back to the reporting date using each loan's effective yield, to arrive at a present value of future cash flows. Each loan pool's allowance estimate is equal to the aggregate shortage, if any, of the present value of future cash flows compared to the amortized cost basis of the loan pool. Qualitative factors are considered for items not included in historical loss rates, macroeconomic forecasts, or other model inputs based on management's current assessment of risks related to loan portfolio attributes and external factors. We identified the assessment of the collective ACL as a critical audit matter. A high degree of audit effort, including specialized skills and knowledge in the industry, and subjective and complex auditor judgment was involved in the assessment of the collective ACL. Specifically, the assessment encompassed the evaluation of the collective ACL methodology, including the methods and models used to estimate (1) the PD and LGD and their significant assumptions, including the economic forecast and economic indices, the reasonable and supportable forecast and reversion periods, and peer data used for historical loss rates; (2) expected prepayment speeds and curtailment rates; 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. In addition, auditor judgment was required to evaluate the sufficiency of audit evidence obtained. The following are the primary procedures we performed to address this critical audit matter. We evaluated the design and tested the operating effectiveness of certain internal controls related to the measurement of the collective ACL, including controls related to the: • design of the collective ACL methodology • continued use and appropriateness 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 • development of the qualitative factors, including the significant assumptions used in the measurement of the qualitative factors • analysis of the collective ACL results, trends, and ratios. We evaluated the Company’s process to develop the collective ACL estimate by testing certain sources of data, factors, and assumptions that the Company used, and considered the relevance and reliability of such data, factors, and assumptions. In addition, we involved credit risk professionals with specialized skills and knowledge, who assisted in: • evaluating the Company’s collective ACL methodology for compliance with U.S. generally accepted accounting principles • 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 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 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: • cumulative results of the audit procedures • qualitative aspects of the Company’s accounting practices • potential bias in the accounting estimates /s/ KPMG LLP We have served as the Company’s auditor since 2024. Kansas City, Missouri November 26, 2025 67 REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM To the stockholders and the Board of Directors of Capitol Federal Financial, Inc. Opinion on the Financial Statements 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 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 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 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 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 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 Kansas City, Missouri November 29, 2023 We began serving as the Company's auditor in 1974. In 2024 we became the predecessor auditor. 68 CAPITOL FEDERAL FINANCIAL, INC. AND SUBSIDIARY CONSOLIDATED BALANCE SHEETS SEPTEMBER 30, 2025 and 2024 (Dollars in thousands, except per share amounts) 2025 2024 ASSETS: Cash and cash equivalents (includes interest-earning deposits of $ 229,566 and $ 192,138 ) $ 252,443 $ 217,307 Available-for-sale ("AFS") securities, at estimated fair value (amortized cost of $ 847,369 and $ 829,852 ) 867,216 856,266 Loans receivable, net (allowance for credit losses ("ACL") of $ 24,039 and $ 23,035 ) 8,111,961 7,907,338 Federal Home Loan Bank Topeka ("FHLB") stock, at cost 90,662 101,175 Premises and equipment, net 89,314 91,463 Income taxes receivable, net 220 359 Deferred income tax assets, net 23,826 21,978 Other assets 343,059 331,722 TOTAL ASSETS $ 9,778,701 $ 9,527,608 LIABILITIES: Deposits $ 6,591,448 $ 6,129,982 Borrowings 1,950,770 2,179,564 Advances by borrowers 65,416 61,801 Deferred income tax liabilities, net 2,056 — Other liabilities 121,334 123,991 Total liabilities 8,731,024 8,495,338 STOCKHOLDERS' EQUITY: Preferred stock, $ .01 par value; 100,000,000 shares authorized, no shares issued or outstanding — — Common stock, $ .01 par value; 1,400,000,000 shares authorized, 132,204,305 and 132,735,565 shares issued and outstanding as of September 30, 2025 and 2024, respectively 1,322 1,327 Additional paid-in capital 1,142,711 1,146,851 Unearned compensation, Employee Stock Ownership Plan ("ESOP") ( 24,780 ) ( 26,431 ) Accumulated deficit ( 87,331 ) ( 111,104 ) Accumulated other comprehensive income ("AOCI"), net of tax 15,755 21,627 Total stockholders' equity 1,047,677 1,032,270 TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 9,778,701 $ 9,527,608 See accompanying notes to consolidated financial statements. 69 CAPITOL FEDERAL FINANCIAL, INC. AND SUBSIDIARY CONSOLIDATED STATEMENTS OF INCOME YEARS ENDED SEPTEMBER 30, 2025, 2024, and 2023 (Dollars in thousands, except per share amounts) 2025 2024 2023 INTEREST AND DIVIDEND INCOME: Loans receivable $ 332,518 $ 308,707 $ 280,087 Mortgage-backed securities ("MBS") 46,259 33,650 18,520 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 Total interest and dividend income 399,519 376,843 359,789 INTEREST EXPENSE: Deposits 146,262 139,549 82,267 Borrowings 72,946 75,233 124,250 Total interest expense 219,208 214,782 206,517 NET INTEREST INCOME 180,311 162,061 153,272 PROVISION FOR CREDIT LOSSES 745 1,259 6,838 NET INTEREST INCOME AFTER PROVISION FOR CREDIT LOSSES 179,566 160,802 146,434 NON-INTEREST INCOME: Deposit service fees 11,043 10,562 12,745 Insurance commissions 3,605 3,257 3,487 Net loss from securities transactions — ( 13,345 ) ( 192,622 ) Other non-interest income 6,077 4,770 4,935 Total non-interest income 20,725 5,244 ( 171,455 ) NON-INTEREST EXPENSE: Salaries and employee benefits 60,383 52,272 51,491 Information technology and related expense 19,690 20,324 23,425 Occupancy, net 13,397 13,558 14,236 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 Office supplies and related expense 1,696 1,691 2,499 Other non-interest expense 4,559 5,320 4,789 Total non-interest expense 117,270 111,943 113,934 INCOME (LOSS) BEFORE INCOME TAX EXPENSE 83,021 54,103 ( 138,955 ) INCOME TAX EXPENSE (BENEFIT) 14,996 16,093 ( 37,296 ) NET INCOME (LOSS) $ 68,025 $ 38,010 $ ( 101,659 ) Basic earnings (loss) per share ("EPS") $ 0.52 $ 0.29 $ ( 0.76 ) Diluted EPS $ 0.52 $ 0.29 $ ( 0.76 ) See accompanying notes to consolidated financial statements. 70 CAPITOL FEDERAL FINANCIAL, INC. AND SUBSIDIARY CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME YEARS ENDED SEPTEMBER 30, 2025, 2024, and 2023 (Dollars in thousands) 2025 2024 2023 Net income (loss) $ 68,025 $ 38,010 $ ( 101,659 ) Other comprehensive income (loss), net of tax: 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 Reclassification adjustment for net (gains) losses on AFS securities included in net income, net of taxes of $ 0 , $ 383 , and $( 47,000 ) — ( 1,188 ) 145,622 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 Reclassification adjustment for cash flow hedge amounts included in net income, net of taxes of $ 727 , $ 1,967 , and $ 1,808 ( 2,283 ) ( 6,112 ) ( 5,601 ) 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. 71 CAPITOL FEDERAL FINANCIAL, INC. AND SUBSIDIARY CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY YEARS ENDED SEPTEMBER 30, 2025, 2024, and 2023 (Dollars in thousands, except per share amounts) Additional Unearned Total Common Paid-In Compensation Accumulated Stockholders' Stock Capital ESOP Deficit AOCI Equity Balance at September 30, 2022 $ 1,388 $ 1,190,213 $ ( 29,735 ) $ 80,266 $ ( 145,633 ) $ 1,096,499 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 Stock-based compensation 327 327 Repurchase of common stock ( 29 ) ( 23,424 ) — ( 23,453 ) Cash dividends to stockholders ($ 0.62 per share) ( 83,172 ) ( 83,172 ) Balance at September 30, 2023 1,359 1,166,643 ( 28,083 ) ( 104,565 ) 8,700 1,044,054 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 Repurchase of common stock ( 33 ) ( 19,415 ) — ( 19,448 ) Cash dividends to stockholders ($ 0.34 per share) ( 44,522 ) ( 44,522 ) Balance at September 30, 2024 1,327 1,146,851 ( 26,431 ) ( 111,104 ) 21,627 1,032,270 Net income, fiscal year 2025 68,025 68,025 Other comprehensive loss, net of tax ( 5,872 ) ( 5,872 ) ESOP activity ( 655 ) 1,651 996 Restricted stock activity, net 1 ( 4 ) ( 3 ) Stock-based compensation 400 400 Repurchase of common stock ( 6 ) ( 3,881 ) ( 3,887 ) Cash dividends to stockholders ($ 0.34 per share) ( 44,252 ) ( 44,252 ) Balance at September 30, 2025 $ 1,322 $ 1,142,711 $ ( 24,780 ) $ ( 87,331 ) $ 15,755 $ 1,047,677 See accompanying notes to consolidated financial statements. 72 CAPITOL FEDERAL FINANCIAL, INC. AND SUBSIDIARY CONSOLIDATED STATEMENTS OF CASH FLOWS YEARS ENDED SEPTEMBER 30, 2025, 2024, and 2023 (Dollars in thousands) 2025 2024 2023 CASH FLOWS FROM OPERATING ACTIVITIES: Net income (loss) $ 68,025 $ 38,010 $ ( 101,659 ) Adjustments to reconcile net income to net cash provided by operating activities: FHLB stock dividends ( 8,997 ) ( 10,009 ) ( 13,821 ) Provision for credit losses 745 1,259 6,838 Originations of loans receivable held-for-sale ("LHFS") ( 2,998 ) ( 712 ) ( 1,217 ) Proceeds from sales of LHFS 4,859 725 1,222 Amortization and accretion of premiums and discounts on securities ( 3,296 ) ( 8,182 ) 3,016 Depreciation and amortization of premises and equipment 7,196 7,929 9,039 Amortization of intangible assets 523 774 1,069 Amortization of deferred amounts related to FHLB advances, net 1,444 1,529 1,643 Common stock committed to be released for allocation - ESOP 996 927 1,179 Stock-based compensation 400 358 327 Provision for deferred income taxes 2,080 3,546 ( 45,520 ) Net loss from securities transactions — 13,345 192,622 Changes in: Unrestricted cash collateral from derivative counterparties, net ( 1,220 ) ( 11,850 ) 1,940 Other assets, net 6,321 8,227 2,528 Income taxes receivable, net 114 8,139 ( 7,303 ) Other liabilities ( 21,151 ) ( 22,831 ) ( 4,372 ) Net cash provided by operating activities 55,041 31,184 47,531 CASH FLOWS FROM INVESTING ACTIVITIES: Purchase of AFS securities ( 248,207 ) ( 1,176,645 ) — Proceeds from calls, maturities and principal reductions of AFS securities 233,986 455,110 186,860 Proceeds from sale of AFS securities — 1,272,512 — Proceeds from the redemption of FHLB stock 21,241 19,548 358,491 Purchase of FHLB stock ( 1,731 ) — ( 354,760 ) Net change in loans receivable ( 207,622 ) 63,626 ( 520,229 ) Proceeds from sale of participating interest in loans receivable — — 5,563 Purchase of premises and equipment ( 5,202 ) ( 7,184 ) ( 6,281 ) 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 (used in) provided by investing activities ( 206,586 ) 629,109 ( 329,103 ) (Continued) 73 CAPITOL FEDERAL FINANCIAL, INC. AND SUBSIDIARY CONSOLIDATED STATEMENTS OF CASH FLOWS YEARS ENDED SEPTEMBER 30, 2025, 2024, and 2023 (Dollars in thousands) 2025 2024 2023 CASH FLOWS FROM FINANCING ACTIVITIES: Cash dividends paid ( 44,252 ) ( 44,522 ) ( 83,172 ) Net change in deposits 461,466 78,762 ( 143,646 ) Proceeds from borrowings 650,100 350,100 4,293,870 Repayments on borrowings ( 879,814 ) ( 1,052,291 ) ( 3,548,542 ) 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 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: Beginning of year 217,307 245,605 49,194 End of year $ 252,443 $ 217,307 $ 245,605 SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION: Income tax payments $ 1,018 $ 6,017 $ 5,424 Interest payments $ 217,649 $ 224,701 $ 188,908 See accompanying notes to consolidated financial statements. (Concluded) 74 CAPITOL FEDERAL FINANCIAL, INC. AND SUBSIDIARY NOTES TO CONSOLIDATED FINANCIAL STATEMENTS YEARS ENDED SEPTEMBER 30, 2025, 2024, and 2023 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 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 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. The Bank has two wholly owned subsidiaries, Capitol Funds, Inc. and Capital City Investments, Inc. Capitol Funds, Inc. has a wholly-owned subsidiary, Capitol Federal Mortgage Reinsurance Company. Capital City Investments, Inc. is a real estate and investment holding company. All intercompany accounts and transactions have been eliminated in consolidation. The consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP") and require management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from these estimates and assumptions. Cash, Cash Equivalents and Restricted Cash - Cash, cash equivalents, and restricted cash reported in the statement of cash flows consisted entirely of cash and cash equivalents at September 30, 2025 and 2024, respectively. Restricted cash relates to the collateral postings to/from the Bank's derivative counterparties associated with the Bank's interest rate swaps. There was no restricted cash included in other assets on the consolidated balance sheet at September 30, 2025 or September 30, 2024. See additional discussion regarding the interest rate swaps in "Note 8. Deposits and Borrowed Funds." Net Presentation of Cash Flows Related to Borrowings - At times, the Bank enters into FHLB advances with contractual maturities of 90 days or less. Cash flows related to these advances are reported on a net basis in the consolidated statements of cash flows. Securities - Securities include MBS and agency debentures issued primarily by United States Government-Sponsored Enterprises ("GSEs"), including Federal National Mortgage Association (FNMA), Federal Home Loan Mortgage Corporation (FHLMC) and the Federal Home Loan Banks, United States Government agencies, including Government National Mortgage Association (GNMA), corporate bonds, and municipal bonds. Securities are classified as held-to-maturity ("HTM"), AFS, or trading based on management's intention for holding the securities on the date of purchase. Generally, classifications are made in response to liquidity needs, asset/liability management strategies, and the market interest rate environment at the time of purchase. Accrued interest receivable for all securities is reported in other assets on the consolidated balance sheet and totaled $ 4.1 million and $ 4.8 million at September 30, 2025 and 2024, respectively. The Company excludes accrued interest from the amortized cost of securities and does not measure ACL for accrued interest. Interest accrued but not received is reversed against interest income. Securities that management has the intention and ability to hold to maturity are classified as HTM and reported at amortized cost. Such securities are adjusted for the amortization of premiums and discounts which are recognized as adjustments to interest income over the life of the securities using the level-yield method. At September 30, 2025 and 2024, the portfolio did not contain any securities classified as HTM. Securities that management may sell if necessary for liquidity or asset management purposes are classified as AFS and reported at fair value, with unrealized gains and non-credit losses reported as a component of AOCI within stockholders' equity, net of deferred income taxes. The amortization of premiums and discounts are recognized as adjustments to interest income over the life of the securities using the level-yield method. Gains or losses on the disposition of AFS securities are 75 recognized using the specific identification method. The Company primarily uses prices obtained from third-party pricing services to determine the fair value of securities. See additional discussion of fair value of AFS securities in "Note 14. Fair Value of Financial Instruments." Securities that are purchased and held principally for resale in the near future are classified as trading securities and are reported at fair value, with unrealized gains and losses included in non-interest income in the consolidated statements of income. During the fiscal years ended September 30, 2025 and 2024, neither the Company nor the Bank maintained a trading securities portfolio. Allowance for Credit Losses on AFS Debt Securities - Management monitors AFS debt securities for impairment on an ongoing basis and performs a formal review quarterly. If an AFS debt security is in an unrealized loss position at the time of the quarterly review, the Company first assesses whether it intends to sell, or if it is more likely than not that it will be required to sell the security before recovery of its amortized cost. If either condition is met, the entire loss in fair value is recognized in current earnings. If neither condition is met, and the Company does not expect to recover the amortized cost basis, the Company determines whether the decline in fair value resulted from credit losses or other factors. In making this assessment, management considers the security structure, the cause(s) and severity of the loss, expectations of future performance (including recent events specific to the issuer or industry and the issuer's financial condition and current ability to make payments in a timely manner), and external credit ratings and recent downgrades in such ratings. Management's assessment involves a high degree of subjectivity and judgment that is based on information available at a point in time. If the assessment indicates that a credit loss might exist, the present value of cash flows expected to be collected is compared to the amortized cost basis of the security. If the present value of the cash flows expected to be collected is less than the amortized cost basis, a credit loss is deemed to have occurred, and an ACL is recorded. The ACL is limited by the amount that the fair value is less than the amortized cost basis. Changes in the ACL on AFS debt securities are recorded as an increase or decrease in the provision for credit losses on the consolidated statements of income. Losses are charged against the ACL on securities when management believes the collectability of an AFS security is in doubt or when either of the conditions regarding intent or requirement to sell is met. Interest accrued on AFS debt securities but not received is also reversed against interest income. As of September 30, 2025 and 2024, the Company did not identify any credit losses related to the Company's AFS debt securities, so there was no ACL on AFS debt securities as of those dates. Loans Receivable - Loans receivable that management has the intention and ability to hold for the foreseeable future are carried at amortized cost, excluding accrued interest. Amortized cost is the amount of unpaid principal, net of undisbursed loan funds, unamortized premiums and discounts, and deferred loan fees and costs. Net loan fees and costs, and premiums and discounts are amortized as yield adjustments to interest income using the level-yield method. Loans are presented on the consolidated balance sheet net of the related ACL. Interest on loans receivable is accrued based on the principal amount outstanding. Accrued interest receivable for loans is reported in other assets on the consolidated balance sheet and totaled $ 28.0 million and $ 26.3 million at September 30, 2025 and 2024, respectively. The Company does not calculate ACL for accrued interest. Interest accrued but not received is reversed against interest income. Loan endorsements - Certain existing one- to four- family loan customers, have the opportunity, for a fee, to endorse their original loan terms to current loan terms being offered by the Bank, without being required to complete the standard application and underwriting process. The fee received for each endorsement is deferred and amortized as an adjustment to interest income over the life of the loan. If the change in loan terms resulting from the endorsement is deemed to be more than minor, all existing unamortized deferred loan origination fees and costs are recognized at the time of endorsement. 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. 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 76 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. Modifications of loans to borrowers experiencing financial difficulty that are in the form of principal forgiveness, interest rate reductions, other-than-insignificant payment delays, or a term extension (or a combination thereof) require disclosure in the notes to the Company's consolidated financial statements. The Company's modification disclosures are included in Note 4. Loans Receivable and Allowance for Credit Losses. Modified loans are included in the Company's ACL model based on the risk characteristics of the loan. If a modified loan is deemed uncollectible and no longer shares similar risk characteristics within the respective loan pool in the ACL model, the loan is evaluated on an individual basis and any loss is charged-off against the related ACL. Delinquent loans - A loan is considered delinquent when payment has not been received within 30 days of its contractual due date. The number of days delinquent is determined by the number of scheduled payments that remain unpaid, assuming a period of 30 days between each scheduled payment. Nonaccrual loans - The accrual of income on loans is generally discontinued when interest or principal payments are 90 days in arrears. 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. See Note 4. 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. A nonaccrual commercial loan is returned to accrual status once the loan has been current for a minimum of six months, all fees and interest are paid current, the loan has a sufficient debt service coverage ratio ("DSCR"), and the loan is well secured and within policy. Allowance for Credit Losses on Loans Receivable - The ACL is a valuation amount that is deducted from the amortized cost basis of loans. 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. Changes in the ACL are recorded through increases or decreases to the provision for credit losses in the consolidated statements of income. The ACL is an estimate that requires significant judgment including projections of the macroeconomic environment as of a point in time. 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") 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. Charge-offs against the related ACL amounts for any loan type may be recorded if the Bank has knowledge of the existence of a probable loss. One- to four-family loans and consumer home equity loans are deemed to be collateral dependent and individually evaluated for loss when the loan is generally 180 days delinquent, and any identified losses are charged-off at that time. Losses are based on new collateral values obtained through appraisals, less estimated costs to sell. Anticipated private mortgage insurance proceeds are taken into consideration when calculating the loss amount. If the Bank holds the first and second mortgage, both loans are combined when evaluating whether there is a potential loss on the loan. When a non-real estate secured consumer loan is 120 days delinquent, any identified losses are charged-off. Commercial loans are generally individually evaluated for loss during the quarterly special loan review process, or at any time management determines circumstances warrant. In general, commercial loans are individually evaluated for loss if they are rated substandard or below. Loss amounts are calculated using the market value of collateral adjusted for costs to sell compared to the amount due from the borrower, adjusted for any government guaranty there may be on the loan. If the loss amount is calculated and the Bank's commercial loan committee determines the amount is uncollectible, the amount is charged-off. 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. 77 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. Any one or a combination of these events may adversely affect the ability of borrowers to repay their loans, resulting in increased delinquencies, non-performing assets, charge-offs, and provisions for credit losses. Although the commercial loan portfolio is subject to the same risk of declines in economic conditions, the primary risk characteristics inherent in this portfolio include the ability of the borrower to sustain sufficient cash flows from leases and business operations, the ability to control operational or business expenses to satisfy their contractual debt payments, and the ability to utilize personal or business resources to pay their contractual debt payments if the cash flows are not sufficient. Additionally, if the Bank were to repossess the secured collateral of a commercial real estate loan, the pool of potential buyers is typically more limited than that for a residential property. Therefore, the Bank could have to hold the property for an extended period of time, or be forced to sell at a discounted price, resulting in additional losses. 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 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"). 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, as determined by management, 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. 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. In the case of revolving lines of credit, since the rate of principal reduction is generally at the discretion of the borrower, remaining contractual lives are calculated by estimating future cash flows expected to be received from the borrower until the outstanding balance has been reduced to zero. Using all of these inputs and assumptions, the discounted cash flow methodology generates aggregated estimated cash flows for the time period that remains in each loan's contractual life. These cash flows are discounted back to the reporting date using each loan's effective yield, to arrive at a present value of estimated future cash flows. Each loan pool's ACL is equal to the aggregate shortage, if any, of the present value of estimated future cash flows compared to the amortized cost basis of the loan pool. Additionally, qualitative factors are considered for items not included in historical loss rates, macroeconomic forecasts, or other model inputs, as deemed appropriate by management's current assessment of risks related to loan portfolio attributes and external factors. Such qualitative factor considerations include changes in the Bank's loan portfolio composition and credit concentrations, changes in the loan balances and/or trends in asset quality and/or loan credit performance, changes in lending underwriting standards, the effect of other external factors such as significant unique events or conditions, and actual and/or expected changes in economic conditions, real estate values, and/or other economic developments in the geographic areas in which the Bank operates, and/or other management considerations to account for credit risks not fully reflected in the discounted cash flow model. Management assesses the potential impact of such items and adjusts the modeled ACL as deemed appropriate based upon the assessment. Reserve for Off-Balance Sheet Credit Exposures - The Company's off-balance sheet credit exposures are comprised of unfunded portions of existing loans, such as lines of credit and construction loans, and commitments to originate or purchase loans that are not unconditionally cancellable by the Company. 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 78 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. Changes to the reserve for off-balance sheet credit exposures are recorded through increases or decreases to the provision for credit losses on the consolidated statements of income. Federal Home Loan Bank Stock - As a member of FHLB, the Bank is required to acquire and hold shares of FHLB stock. The Bank's holding requirement varies based on the Bank's activities, primarily the Bank's outstanding borrowings, with FHLB. FHLB stock is carried at cost and is considered a restricted asset because it cannot be pledged as collateral or bought or sold on the open market and because it has certain redemption restrictions. Management conducts a quarterly evaluation to determine if any FHLB stock impairment exists. The quarterly impairment evaluation focuses primarily on the capital adequacy and liquidity of FHLB, while also considering the impact that legislative and regulatory developments may have on FHLB. Stock and cash dividends received on FHLB stock are reflected as dividend income in the consolidated statements of income. Premises, Equipment, and Leases - Land is carried at cost. Buildings, leasehold improvements, and furniture, fixtures and equipment are carried at cost less accumulated depreciation and leasehold amortization. Buildings, furniture, fixtures and equipment are depreciated over their estimated useful lives using the straight-line method. Leasehold improvements are amortized over the shorter of their estimated useful lives or the term of the respective leases. The costs for major improvements and renovations are capitalized, while maintenance, repairs and minor improvements are charged to operating expenses as incurred. Gains and losses on dispositions are recorded as non-interest income or non-interest expense as incurred. The Company leases real estate property for branches, ATMs, and certain equipment. The Company determines if an arrangement is a lease at inception and if the lease is an operating lease or a finance lease. Leases that meet any of the following criteria are considered financing leases: (1) the lease transfers ownership of the underlying asset by the end of the lease term; (2) the lease grants the Company an option to purchase the underlying asset that the Company is reasonably certain to exercise; (3) the lease term is the major part of the remaining economic life of the underlying assets; (4) the present value of the sum of the lease payments and any residual value guaranteed by the Company that is not already reflected in the lease payments equals or exceeds substantially all the fair value of the underlying asset; 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. The calculated amounts of the right-of-use assets and lease liabilities are impacted by the length of the lease term and the discount rate used to calculate the present value of the minimum remaining lease payments. The Company's lease agreements often include one or more options to renew at the Company's discretion. If, at lease inception, the Company considers the exercising of a renewal option to be reasonably certain, the Company includes the extended term in the calculation of the right-of-use asset and lease liability. Generally, the Company cannot practically determine the interest rate implicit in the lease, so the Company's incremental borrowing rate is used as the discount rate for the lease. The Company uses FHLB advance interest rates, which have been deemed as the Company's incremental borrowing rate, at lease inception based upon the term of the lease. The Company's lease agreements do not contain any material residual value guarantees or material restrictive covenants. 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 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. For facility-related leases, the Company elected, by lease class, to not separate lease and non-lease components. The Company performs impairment assessments for right-of-use assets when events or changes in circumstances indicate that their carrying values may not be recoverable. 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. 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 79 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. Financing lease right-of-use assets are amortized on a straight-line basis over the lease term and the related expense is reported in occupancy expense in the Company's consolidated statements of income. The lease obligation is increased by the accrual of interest and decreased by subsequent lease payments. Interest expense on finance leases is reported in interest expense on borrowings in the Company's consolidated statements of income. Low Income Housing Partnerships - As part of the Bank's community reinvestment initiatives, the Bank invests in affordable housing limited partnerships ("low income housing partnerships") that make equity investments in affordable housing properties. The Bank is a limited partner in each partnership in which it invests. A separate, unrelated third party is the general partner. The Bank receives affordable housing tax credits and other tax benefits for these investments. Other Assets - Included in other assets on the consolidated balance sheet are the Company's intangible assets, which consist of goodwill, deposit intangibles and other intangibles. Goodwill is assessed for impairment on an annual basis, or more frequently in certain circumstances. The test for impairment is performed by comparing the fair value of the reporting unit with its carrying amount. If the fair value is determined to be less than the carrying amount, an impairment is recorded. The Company's intangible assets primarily relate to core deposits. These intangible assets are amortized based upon the expected economic benefit over an estimated life determined at the time of acquisition and are tested for impairment whenever certain events occur or circumstances change. Interest Rate Swaps - The Company uses interest rate swaps as part of its interest rate risk management strategy to hedge the variable cash outflows associated with certain borrowings. Interest rate swaps are carried at fair value in the Company's consolidated financial statements. For interest rate swaps that are designated and qualify as cash flow hedges, changes in the fair value of such agreements are recorded in AOCI and are subsequently reclassified into interest expense in the period that interest on the borrowings affects earnings. Effectiveness is assessed using regression analysis. At the inception of a hedge, the Company documents certain items, including the relationship between the hedging instrument and the hedged item, the risk management objective and the nature of the risk being hedged, a description of how effectiveness will be measured and an evaluation of hedged transaction effectiveness. Income Taxes - The Company utilizes the asset and liability method of accounting for income taxes. Under this method, deferred income tax assets and liabilities are recognized for the tax consequences of temporary differences between the financial statement carrying amounts and the tax basis of existing assets and liabilities. Deferred income tax expense (benefit) represents the change in deferred income tax assets and liabilities excluding the tax effects of the change in net unrealized gain (loss) on AFS securities and interest rate swaps. Income tax related penalties and interest, if any, are included in income tax expense in the consolidated statements of income. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. To the extent that management considers it more likely than not that a deferred tax asset will not be recovered, a valuation allowance is recorded. All positive and negative evidence is reviewed in determining how much of a valuation allowance is recognized on a quarterly basis. 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 80 Bank. The ESOP shares pledged as collateral are reported as a reduction of stockholders' equity at cost. As ESOP shares are committed to be released from collateral each quarter, the Company records compensation expense based on the average market price of the Company's common stock during the quarter. Additionally, the ESOP shares become outstanding for EPS computations once they are committed to be released. Stock-based Compensation - The Company has share-based plans under which stock options and restricted stock awards have been granted. Compensation expense is recognized over the service period of the share-based payment award. The Company utilizes a fair-value-based measurement method in accounting for the share-based payment transactions. The Company applies the modified prospective method in which compensation cost is recognized over the service period for all awards granted. Trust Asset Management - Assets (other than cash deposits with the Bank) held in fiduciary or agency capacities for customers are not included in the accompanying consolidated balance sheets, since such items are not assets of the Company or its subsidiaries. Revenue Recognition - Non-interest income within the scope of ASC Topic 606 is recognized by the Company when performance obligations, under the terms of the contract, are satisfied. This income is measured as the amount of consideration expected to be received in exchange for the providing of services. The majority of the Company's applicable non-interest income continues to be recognized at the time when services are provided to its customers. See "Note 16. Revenue Recognition" for additional information. 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. Diluted EPS reflects the potential dilution that could occur if securities or other contracts to issue common stock (such as stock options) were exercised or resulted in the issuance of common stock. These potentially dilutive shares would then be included in the weighted average number of shares outstanding for the period using the treasury stock method. Shares issued and shares reacquired during any period are weighted for the portion of the period that they were outstanding. In computing both basic and diluted EPS, the weighted average number of common shares outstanding includes the ESOP shares previously allocated to participants and shares committed to be released for allocation to participants and shares of restricted stock which have vested. ESOP shares that have not been committed to be released are excluded from the computation of basic and diluted EPS. Unvested restricted stock awards contain nonforfeitable rights to dividends and are treated as participating securities in the computation of EPS pursuant to the two-class method. Dividends - Dividends paid are recognized as a reduction to retained earnings. As a result, if the Company is in an accumulated deficit position, a dividend payment will increase the accumulated deficit. 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. The amendments will be applied prospectively by 81 the Company. The adoption of this ASU may result in disclosures currently presented outside of the Company's financial statements being relocated to the Company's financial statements. If the SEC has not removed the applicable requirements from Regulation S-X or S-K by June 30, 2027, the pending content of the related amendment will be removed from the Codification and will not become effective for the Company. The ASU is not expected to have a material impact on the Company's disclosures as the Company is currently subject to SEC Regulations S-X and S-K. In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280) - Improvements to Reportable Segment Disclosures . This ASU requires enhanced disclosures of segment information for all public entities, including those that have a single reportable segment, primarily in the area of significant segment expenses and other items on an annual and interim basis. Entities that have a single reportable segment, like the Company, will be required to provide all the disclosures required by this ASU and all existing segment disclosures required by ASC 280, Segment Reporting . 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 business entities to provide additional annual disclosures regarding specific categories of the income tax rate reconciliation using both percentages and currency amounts with certain reconciling items being further broken out by nature and jurisdiction to the extent those items exceed a certain quantitative threshold. The ASU also requires annual disclosures of income taxes paid (net of refunds received) disaggregated by federal, state, and foreign taxes and the amount of income taxes paid (net of refunds received) disaggregated by individual jurisdictions that meet a certain quantitative threshold. This ASU also discontinues certain other income tax disclosures. The ASU is effective for public business entities for annual periods beginning after December 15, 2024 which is the fiscal year ending September 30, 2026 for the Company. Early adoption is permitted for annual financial statements that have not yet been issued or made available for issuance. This ASU should be applied on a prospective basis; however, retrospective application is permitted. The Company's financial condition, results of operations and cash flows will not be impacted by this guidance; however, the guidance will impact the Company's income tax footnote disclosures. The Company is currently evaluating the effect this ASU will have on the Company's income tax footnote disclosures. In March 2024, the FASB issued ASU 2024-02, Codification Improvements - Amendments to Remove References to the Concepts Statements . This ASU removes references to various FASB Concept Statements to simplify the Codification and provide a distinction between authoritative and nonauthoritative literature. This ASU is effective for the Company on October 1, 2025, starting with its Form 10-K for the fiscal year ending September 30, 2026. The Company is currently evaluating this ASU, but it is not expected to have a significant impact on the Company's consolidated financial condition or results of operation or the Company's disclosures. In November 2024, the FASB issued ASU 2024-03, Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures . This ASU requires additional expense disclosures by public entities in the notes to the financial statements. The ASU outlines the specific costs that are required to be disclosed, which include costs such as: purchases of inventory, employee compensation, depreciation, intangible asset amortization, selling costs, and depreciation, depletion, and amortization related to oil and gas production. It also requires qualitative descriptions of the amounts remaining in the relevant expense income statement captions that are not separately disaggregated quantitatively in the notes to the financial statements and the entity's definition of selling expenses. The disclosures are required for each interim and annual reporting period. The ASU is effective for fiscal years beginning after December 15, 2026, which is the fiscal year ending September 30, 2028 for the Company. In January 2025, the FASB issued ASU 2025-1, Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures: Clarifying the Effective Date. The FASB clarified the interim date reporting when an entity adopts ASU 2024-03. Per ASU 2025-01, ASU 2024-03 is effective for interim periods within fiscal years beginning after December 15, 2027, which is the quarter ending December 31, 2028 for the Company. The Company is currently evaluating the effect this ASU will have on the Company's expense disclosures in the notes to the consolidated financial statements. 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 82 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. 2. EARNINGS PER SHARE Shares acquired by the ESOP are not included in basic average shares outstanding until the shares are committed for allocation or vested to an employee's individual account. Unvested shares awarded pursuant to the Company's restricted stock benefit plans are treated as participating securities in the computation of EPS pursuant to the two-class method, as they contain nonforfeitable rights to dividends. The two-class method is an earnings allocation that determines EPS for each class of common stock and participating security. For the Year Ended September 30, 2025 2024 2023 (Dollars in thousands, except per share amounts) Net income $ 68,025 $ 38,010 $ ( 101,659 ) Income allocated to participating securities ( 82 ) ( 33 ) 51 Net income available to common stockholders $ 67,943 $ 37,977 $ ( 101,608 ) Total basic average common shares outstanding 129,988,031 130,670,780 133,556,864 Effect of dilutive stock options — — — Total diluted average common shares outstanding 129,988,031 130,670,780 133,556,864 Net EPS: Basic $ 0.52 $ 0.29 $ ( 0.76 ) Diluted $ 0.52 $ 0.29 $ ( 0.76 ) Antidilutive stock options, excluded from the diluted average common shares outstanding calculation 264,292 326,308 369,421 3. SECURITIES The following tables reflect the amortized cost, estimated fair value, and gross unrealized gains and losses of AFS securities at the dates presented. The majority of our AFS securities at both dates were government guaranteed or issued by a GSE. September 30, 2025 Gross Gross Estimated Amortized Unrealized Unrealized Fair Cost Gains Losses Value (Dollars in thousands) MBS $ 843,369 $ 20,303 $ 172 $ 863,500 Corporate bonds 4,000 — 284 3,716 $ 847,369 $ 20,303 $ 456 $ 867,216 83 September 30, 2024 Gross Gross Estimated Amortized Unrealized Unrealized Fair Cost Gains Losses Value (Dollars in thousands) MBS $ 756,775 $ 26,885 $ 87 $ 783,573 GSE debentures 69,077 228 — 69,305 Corporate bonds 4,000 — 612 3,388 $ 829,852 $ 27,113 $ 699 $ 856,266 At 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. September 30, 2025 Less Than 12 Months Equal to or Greater Than 12 Months Estimated Unrealized Estimated Unrealized Fair Value Losses Fair Value Losses (Dollars in thousands) MBS $ 13,946 $ 55 $ 26,144 $ 117 Corporate bonds — — 3,716 284 $ 13,946 $ 55 $ 29,860 $ 401 September 30, 2024 Less Than 12 Months Equal to or Greater Than 12 Months Estimated Unrealized Estimated Unrealized Fair Value Losses Fair Value Losses (Dollars in thousands) MBS $ 10,997 $ 44 $ 2,919 $ 43 Corporate bonds — — 3,388 612 $ 10,997 $ 44 $ 6,307 $ 655 The unrealized losses at September 30, 2025 were a result of an increase in market yields from the time the securities were purchased. In general, as market yields rise, the fair value of securities will decrease; as market yields fall, the fair value of securities will increase. Management did not record an ACL on securities in an unrealized loss position at 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. Additionally, management does not have the intent to sell any of the securities, and believes that it is more likely than not that the Company will not be required to sell the securities before the recovery of the remaining amortized cost, which could be at maturity. The fair value is expected to recover as the securities approach their maturity date, if not before, or if market yields decline. 84 The amortized cost and estimated fair value of AFS debt securities as of September 30, 2025, by contractual maturity, are shown below. Actual principal repayments may differ from contractual maturities due to prepayment or early call privileges by the issuer. In the case of MBS, borrowers on the underlying loans generally have the right to prepay their loans without penalty. For this reason, MBS are not included in the maturity categories in the table below. Amortized Estimated Cost Fair Value (Dollars in thousands) Five years through ten years $ 4,000 $ 3,716 4,000 3,716 MBS 843,369 863,500 $ 847,369 $ 867,216 The following table presents the taxable and non-taxable components of interest income on investment securities for the years presented. For the Year Ended September 30, 2025 2024 2023 (Dollars in thousands) Taxable $ 3,377 $ 8,747 $ 3,538 Non-taxable — 2 27 $ 3,377 $ 8,749 $ 3,565 The following table summarizes the carrying value of securities pledged as collateral for the obligations indicated below as of the dates presented. September 30, 2025 2024 (Dollars in thousands) 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 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. 85 4. LOANS RECEIVABLE AND ALLOWANCE FOR CREDIT LOSSES Loans receivable, net at September 30, 2025 and 2024 is summarized as follows: 2025 2024 (Dollars in thousands) One- to four-family: Originated $ 3,774,134 $ 3,941,952 Correspondent purchased 2,000,216 2,212,587 Bulk purchased 114,231 127,161 Construction 16,054 22,970 Total 5,904,635 6,304,670 Commercial: Commercial real estate 1,709,990 1,191,624 Commercial and industrial 210,119 129,678 Commercial construction 195,886 187,676 Total 2,115,995 1,508,978 Consumer: Home equity 104,809 99,988 Other 8,436 9,615 Total 113,245 109,603 Total loans receivable 8,133,875 7,923,251 Less: ACL 24,039 23,035 Deferred loan fees/discounts 31,268 30,336 Premiums/deferred costs ( 33,393 ) ( 37,458 ) $ 8,111,961 $ 7,907,338 As of September 30, 2025 and 2024, the Bank serviced loans for others aggregating $ 37.0 million and $ 38.1 million, respectively. Such loans are not included in the accompanying consolidated balance sheets. Servicing loans for others generally consists of collecting mortgage payments, maintaining escrow accounts, disbursing payments to investors and foreclosure processing. 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 $ 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. Properties securing one- to four-family loans are appraised by either staff appraisers or fee appraisers, both of which are independent of the loan origination function. The underwriting standards for loans purchased from correspondent lenders were generally similar to the Bank's internal underwriting standards. The underwriting of loans purchased from correspondent lenders was performed by the Bank's underwriters on a loan-by-loan basis. The Bank also originates owner-occupied construction-to-permanent loans secured by one- to four-family residential real estate. Construction draw requests and the supporting documentation are reviewed and approved by designated personnel. The Bank also performs regular documented inspections of the construction project to ensure the funds are being used for the intended purpose and the project is being completed according to the plans and specifications provided. 86 Commercial loans - The Bank's commercial loan portfolio includes loans originated by the Bank or in participation with a lead bank. For commercial participation loans, the Bank performs the same underwriting procedures as if the loan was originated by the Bank. When underwriting a commercial real estate or commercial construction loan, several factors are considered, such as the income producing potential of the property, cash equity provided by the borrower, the financial strength of the borrower, managerial expertise of the borrower or tenant, feasibility studies, lending experience with the borrower and the marketability of the property. At the time of origination, 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, 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 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 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. Consumer loans - The Bank offers a variety of consumer loans, the majority of which are home equity loans and lines of credit for which the Bank also has the first mortgage or the first lien position. The underwriting standards for consumer loans include a determination of an applicant's payment history on other debts and an assessment of an applicant's ability to meet existing obligations and payments on the proposed loan. Although creditworthiness of an applicant is a primary consideration, the underwriting process also includes a comparison of the value of the security in relation to the proposed loan amount. Credit Quality Indicators - Based on the Bank's lending emphasis and underwriting standards, management has segmented the loan portfolio into three segments: (1) one- to four-family; (2) consumer; and (3) commercial. See discussion regarding the credit risks for these loan segments in "Note 1. Summary of Significant Accounting Policies - Allowance for Credit Losses on Loans Receivable." These segments are further divided into classes for purposes of providing disaggregated credit quality information about the loan portfolio. The classes are: one- to four-family - originated, one- to four-family - correspondent purchased, one- to four-family - bulk purchased, consumer - home equity, consumer - other, commercial - commercial real estate, and commercial - commercial and industrial. One- to four-family construction loans are included in the originated class and commercial construction loans are included in the commercial real estate class. As part of the on-going monitoring of the credit quality of the Company's loan portfolio, management tracks certain credit quality indicators including trends related to loan classification and delinquency status. 87 Loan Classification - In accordance with the Bank's asset classification policy, management regularly reviews the problem loans in the Bank's portfolio to determine whether any require classification. Loan classifications are defined as follows: • Special mention - These loans are performing loans on which known information about the collateral pledged or the possible credit problems of the borrower(s) have caused management to have doubts as to the ability of the borrower(s) to comply with present loan repayment terms and which may result in the future inclusion of such loans in the nonaccrual loan categories. • Substandard - A loan is considered substandard if it is inadequately protected by the current net worth and paying capacity of the obligor or of the collateral pledged, if any. Substandard loans include those characterized by the distinct possibility the Bank will sustain some loss if the deficiencies are not corrected. • Doubtful - Loans classified as doubtful have all the weaknesses inherent in those classified as substandard, with the added characteristic that the weaknesses present make collection or liquidation in full on the basis of currently existing facts and conditions and values highly questionable and improbable. • Loss - Loans classified as loss are considered uncollectible and of such little value that their continuance as assets on the books is not warranted. The following tables set forth, as of the dates indicated, the amortized cost of loans by class of financing receivable, year of origination or most recent credit decision, and loan classification. Amortized cost is the amount of unpaid principal, net of undisbursed funds, unamortized premiums and discounts, and deferred fees and costs. All revolving lines of credit and revolving lines of credit converted to term loans are presented separately, regardless of origination year. Loans classified as doubtful or loss are individually evaluated for loss. At 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. 88 September 30, 2025 Revolving Line of Current Fiscal Fiscal Fiscal Fiscal Revolving Credit Fiscal Year Year Year Year Prior Line of Converted Year 2024 2023 2022 2021 Years Credit to Term Total (Dollars in thousands) One- to four-family: Originated Pass $ 233,573 $ 232,879 $ 296,339 $ 529,728 $ 739,138 $ 1,722,587 $ — $ — $ 3,754,244 Special Mention — — 1,409 1,099 1,672 4,614 — — 8,794 Substandard — — 363 568 469 12,005 — — 13,405 Correspondent purchased Pass — 510 301,792 439,538 524,927 748,902 — — 2,015,669 Special Mention — — 1,441 523 366 367 — — 2,697 Substandard — — — 615 263 4,153 — — 5,031 Bulk purchased Pass — — — — — 110,862 — — 110,862 Special Mention — — — — — 1,564 — — 1,564 Substandard — — — — — 2,180 — — 2,180 233,573 233,389 601,344 972,071 1,266,835 2,607,234 — — 5,914,446 Commercial: Commercial real estate Pass 639,555 292,900 396,152 208,604 111,266 134,388 9,775 — 1,792,640 Special Mention 7,587 — 36,266 16,060 — 80 — — 59,993 Substandard 39,962 142 2,681 — 106 2,609 50 — 45,550 Commercial and industrial Pass 103,700 25,950 26,082 14,387 5,555 1,923 31,287 — 208,884 Special Mention — — — 44 — — 355 — 399 Substandard — 292 — 87 25 — 69 — 473 790,804 319,284 461,181 239,182 116,952 139,000 41,536 — 2,107,939 Consumer: Home equity Pass 5,609 5,532 3,513 3,755 1,064 2,166 75,067 7,937 104,643 Special Mention — — 33 — — — 251 42 326 Substandard 100 — — — — 11 57 42 210 Other Pass 3,629 1,877 1,354 824 175 49 416 — 8,324 Special Mention — — — — — — — — — Substandard 8 26 33 45 — — — — 112 9,346 7,435 4,933 4,624 1,239 2,226 75,791 8,021 113,615 Total $ 1,033,723 $ 560,108 $ 1,067,458 $ 1,215,877 $ 1,385,026 $ 2,748,460 $ 117,327 $ 8,021 $ 8,136,000 89 September 30, 2024 Revolving Line of Fiscal Fiscal Fiscal Fiscal Fiscal Revolving Credit Year Year Year Year Year Prior Line of Converted 2024 2023 2022 2021 2020 Years Credit to Term Total (Dollars in thousands) One- to four-family: Originated Pass $ 241,765 $ 325,492 $ 578,275 $ 809,643 $ 521,647 $ 1,447,237 $ — $ — $ 3,924,059 Special Mention — 295 1,229 1,982 772 9,565 — — 13,843 Substandard — 658 49 468 1,398 9,571 — — 12,144 Correspondent purchased Pass 798 325,384 482,103 570,970 225,650 623,496 — — 2,228,401 Special Mention — 993 659 658 398 977 — — 3,685 Substandard — — 1,662 265 — 5,130 — — 7,057 Bulk purchased Pass — — — — — 124,076 — — 124,076 Special Mention — — — — — — — — — Substandard — — — — — 3,514 — — 3,514 242,563 652,822 1,063,977 1,383,986 749,865 2,223,566 — — 6,316,779 Commercial: Commercial real estate Pass 326,158 400,649 284,493 135,935 74,174 110,309 23,865 — 1,355,583 Special Mention 12,440 2,543 — — 92 1,094 — — 16,169 Substandard 142 827 — — 647 636 50 — 2,302 Commercial and industrial Pass 46,335 32,112 18,131 8,075 1,350 2,051 20,876 — 128,930 Special Mention 401 — — — — — 12 — 413 Substandard 227 — — — — 82 26 — 335 385,703 436,131 302,624 144,010 76,263 114,172 44,829 — 1,503,732 Consumer: Home equity Pass 7,331 4,377 4,575 1,437 814 2,127 73,020 5,895 99,576 Special Mention — — — — — — 45 281 326 Substandard — 20 — — — 24 120 181 345 Other Pass 4,112 2,737 1,697 385 101 95 346 — 9,473 Special Mention — — — — — — — — — Substandard 80 14 44 — 4 — — — 142 11,523 7,148 6,316 1,822 919 2,246 73,531 6,357 109,862 Total $ 639,789 $ 1,096,101 $ 1,372,917 $ 1,529,818 $ 827,047 $ 2,339,984 $ 118,360 $ 6,357 $ 7,930,373 90 Delinquency Status - The following tables set forth, as of the dates indicated, the amortized cost of current loans, loans 30 to 89 days delinquent, and loans 90 or more days delinquent or in foreclosure ("90+/FC"), by class of financing receivable and year of origination or most recent credit decision as of the dates indicated. All revolving lines of credit and revolving lines of credit converted to term loans are presented separately, regardless of origination year. September 30, 2025 Revolving Line of Current Fiscal Fiscal Fiscal Fiscal Revolving Credit Fiscal Year Year Year Year Prior Line of Converted Year 2024 2023 2022 2021 Years Credit to Term Total (Dollars in thousands) One- to four-family: Originated Current $ 233,573 $ 232,879 $ 298,045 $ 530,487 $ 740,699 $ 1,730,689 $ — $ — $ 3,766,372 30-89 — — 66 908 473 5,873 — — 7,320 90+/FC — — — — 107 2,644 — — 2,751 Correspondent purchased Current — 510 302,960 440,138 525,556 749,725 — — 2,018,889 30-89 — — 273 161 — 2,664 — — 3,098 90+/FC — — — 377 — 1,033 — — 1,410 Bulk purchased Current — — — — — 114,315 — — 114,315 30-89 — — — — — 156 — — 156 90+/FC — — — — — 135 — — 135 233,573 233,389 601,344 972,071 1,266,835 2,607,234 — — 5,914,446 Commercial: Commercial real estate Current 687,104 292,556 434,882 223,812 111,227 134,468 9,775 — 1,893,824 30-89 — 344 — 852 40 — — — 1,236 90+/FC — 142 217 — 105 2,609 50 — 3,123 Commercial and industrial Current 103,700 26,100 26,082 14,486 5,580 1,923 31,642 — 209,513 30-89 — — — 32 — — — — 32 90+/FC — 142 — — — — 69 — 211 790,804 319,284 461,181 239,182 116,952 139,000 41,536 — 2,107,939 Consumer: Home equity Current 5,709 5,481 3,546 3,755 1,064 2,171 75,137 7,826 104,689 30-89 — 51 — — — — 198 195 444 90+/FC — — — — — 6 40 — 46 Other Current 3,615 1,847 1,353 856 175 49 416 — 8,311 30-89 15 42 20 — — — — — 77 90+/FC 7 14 14 13 — — — — 48 9,346 7,435 4,933 4,624 1,239 2,226 75,791 8,021 113,615 Total $ 1,033,723 $ 560,108 $ 1,067,458 $ 1,215,877 $ 1,385,026 $ 2,748,460 $ 117,327 $ 8,021 $ 8,136,000 91 September 30, 2024 Revolving Line of Fiscal Fiscal Fiscal Fiscal Fiscal Revolving Credit Year Year Year Year Year Prior Line of Converted 2024 2023 2022 2021 2020 Years Credit to Term Total (Dollars in thousands) One- to four-family: Originated Current $ 241,765 $ 326,211 $ 578,430 $ 811,455 $ 521,550 $ 1,459,500 $ — $ — $ 3,938,911 30-89 — 64 1,074 638 1,666 5,422 — — 8,864 90+/FC — 170 49 — 601 1,451 — — 2,271 Correspondent purchased Current 798 326,377 482,598 571,182 226,048 624,961 — — 2,231,964 30-89 — — 164 446 — 2,479 — — 3,089 90+/FC — — 1,662 265 — 2,163 — — 4,090 Bulk purchased Current — — — — — 125,982 — — 125,982 30-89 — — — — — 69 — — 69 90+/FC — — — — — 1,539 — — 1,539 242,563 652,822 1,063,977 1,383,986 749,865 2,223,566 — — 6,316,779 Commercial: Commercial real estate Current 338,511 403,193 284,493 135,932 74,266 110,448 23,055 — 1,369,898 30-89 229 807 — 3 — 1,094 860 — 2,993 90+/FC — 19 — — 647 497 — — 1,163 Commercial and industrial Current 46,736 32,112 17,990 8,052 1,350 2,051 20,914 — 129,205 30-89 227 — 141 23 — — — — 391 90+/FC — — — — — 82 — — 82 385,703 436,131 302,624 144,010 76,263 114,172 44,829 — 1,503,732 Consumer: Home equity Current 7,331 4,378 4,540 1,437 814 2,133 72,721 6,084 99,438 30-89 — — 35 — — — 349 87 471 90+/FC — 19 — — — 18 115 186 338 Other Current 4,109 2,728 1,641 327 101 95 344 — 9,345 30-89 3 9 100 58 — — 2 — 172 90+/FC 80 14 — — 4 — — — 98 11,523 7,148 6,316 1,822 919 2,246 73,531 6,357 109,862 Total $ 639,789 $ 1,096,101 $ 1,372,917 $ 1,529,818 $ 827,047 $ 2,339,984 $ 118,360 $ 6,357 $ 7,930,373 92 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 Revolving Lines Current Fiscal Fiscal Fiscal Fiscal Revolving of Credit Fiscal Year Year Year Year Prior Lines of Converted to Year 2024 2023 2022 2021 Years Credit Term Total (Dollars in thousands) One- to four-family: Originated $ — $ — $ — $ 3 $ — $ — $ — $ — $ 3 Correspondent purchased — — — — — — — — — Bulk purchased — — — — — 113 — — 113 — — — 3 — 113 — — 116 Commercial: Commercial real estate — — — — — — — — — Commercial and industrial — 52 — — — 10 — — 62 — 52 — — — 10 — — 62 Consumer: Home equity 51 12 21 — — — — — 84 Other — 1 4 — — 2 2 — 9 51 13 25 — — 2 2 — 93 Total $ 51 $ 65 $ 25 $ 3 $ — $ 125 $ 2 $ — $ 271 For the Year Ended September 30, 2024 Revolving Lines Fiscal Fiscal Fiscal Fiscal Fiscal Revolving of Credit Year Year Year Year Year Prior Lines of Converted to 2024 2023 2022 2021 2020 Years Credit Term Total (Dollars in thousands) One- to four-family: Originated $ — $ — $ — $ — $ — $ — $ — $ — $ — Correspondent purchased — — — — — — — — — Bulk purchased — — — — — — — — — — — — — — — — — — Commercial: Commercial real estate 50 — — — — 30 — — 80 Commercial and industrial — — — — — — — — — 50 — — — — 30 — — 80 Consumer: Home equity 46 1 — — — — — — 47 Other — 9 15 — — 9 — — 33 46 10 15 — — 9 — — 80 Total $ 96 $ 10 $ 15 $ — $ — $ 39 $ — $ — $ 160 93 Delinquent and Nonaccrual Loans - The following tables present the amortized cost, at the dates indicated, by class, of loans 30 to 89 days delinquent, loans 90 or more days delinquent or in foreclosure, total delinquent loans, current loans, and total loans. At September 30, 2025 and 2024, all loans 90 or more days delinquent were on nonaccrual status. September 30, 2025 90 or More Days Total Total 30 to 89 Days Delinquent or Delinquent Current Amortized Delinquent in Foreclosure Loans Loans Cost (Dollars in thousands) One- to four-family: Originated $ 7,320 $ 2,751 $ 10,071 $ 3,766,372 $ 3,776,443 Correspondent purchased 3,098 1,410 4,508 2,018,889 2,023,397 Bulk purchased 156 135 291 114,315 114,606 Commercial: Commercial real estate 1,236 3,123 4,359 1,893,824 1,898,183 Commercial and industrial 32 211 243 209,513 209,756 Consumer: Home equity 444 46 490 104,689 105,179 Other 77 48 125 8,311 8,436 $ 12,363 $ 7,724 $ 20,087 $ 8,115,913 $ 8,136,000 September 30, 2024 90 or More Days Total Total 30 to 89 Days Delinquent or Delinquent Current Amortized Delinquent in Foreclosure Loans Loans Cost (Dollars in thousands) One- to four-family: Originated $ 8,864 $ 2,271 $ 11,135 $ 3,938,911 $ 3,950,046 Correspondent purchased 3,089 4,090 7,179 2,231,964 2,239,143 Bulk purchased 69 1,539 1,608 125,982 127,590 Commercial: Commercial real estate 2,993 1,163 4,156 1,369,898 1,374,054 Commercial and industrial 391 82 473 129,205 129,678 Consumer: Home equity 471 338 809 99,438 100,247 Other 172 98 270 9,345 9,615 $ 16,049 $ 9,581 $ 25,630 $ 7,904,743 $ 7,930,373 The amortized cost of mortgage loans secured by residential real estate for which formal foreclosure proceedings were in process as of September 30, 2025 and 2024 was $ 1.0 million and $ 1.6 million, respectively, which is included in loans 90 or more days delinquent or in foreclosure in the tables above. The carrying value of residential OREO held as a result of obtaining physical possession upon completion of a foreclosure or through completion of a deed in lieu of foreclosure was $ 197 thousand at September 30, 2025 and $ 55 thousand at September 30, 2024. 94 The following table presents the amortized cost at September 30, 2025 and September 30, 2024, by class, of loans classified as nonaccrual. Nonaccrual loans with no ACL were individually evaluated for loss and any losses have been charged-off. The increase in nonaccrual commercial real estate loans as of 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. 2025 2024 Nonaccrual Loans Nonaccrual Loans with No ACL Nonaccrual Loans Nonaccrual Loans with No ACL (Dollars in thousands) One- to four-family: Originated $ 2,751 $ 1,833 $ 2,271 $ 764 Correspondent purchased 1,409 — 4,090 182 Bulk purchased 135 — 1,539 812 Commercial: Commercial real estate 43,087 43,087 1,495 901 Commercial and industrial 320 320 335 335 Consumer: Home equity 46 — 338 — Other 48 14 98 16 $ 47,796 $ 45,254 $ 10,166 $ 3,010 95 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. 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 Term Extension Total and Class of Payment Term Payment Financing Delay Extension Delay Total Receivable (Dollars in thousands) One- to four-family: Originated $ 717 $ 5,988 $ 1,647 $ 8,352 0.2 % Correspondent purchased — 463 709 1,172 0.1 Bulk purchased 1,564 — — 1,564 1.4 2,281 6,451 2,356 11,088 0.2 Commercial: Commercial real estate 47,550 — — 47,550 2.5 Commercial and industrial — — — — — 47,550 — — 47,550 2.3 Consumer loans: Home equity 36 35 — 71 0.1 Other — — — — — 36 35 — 71 0.1 Total $ 49,867 $ 6,486 $ 2,356 $ 58,709 0.7 96 For the Year Ended September 30, 2024 Term Payment Extension Delay, and Total and Interest Class of Payment Term Payment Rate Financing Delay Extension Delay Reduction Total Receivable (Dollars in thousands) One- to four-family: Originated $ — $ 1,547 $ 6,992 $ — $ 8,539 0.2 % Correspondent purchased — 338 1,716 — 2,054 0.1 Bulk purchased — — — — — — — 1,885 8,708 — 10,593 0.2 Commercial: Commercial real estate 8,196 — 192 — 8,388 0.6 Commercial and industrial — — 653 12 665 0.5 8,196 — 845 12 9,053 0.6 Consumer loans: Home equity 89 — — — 89 0.1 Other — — — — — — 89 — — — 89 0.1 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: 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: Consumer home equity 9 months 14 months 7 months N/A N/A 97 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) One- to four-family: Originated $ 699 $ 285 $ 984 $ 1,800 $ 720 $ 2,520 Correspondent purchased 186 — 186 284 425 709 Bulk purchased — — — — — — Commercial: Commercial real estate — — — 142 50 192 Commercial and industrial — — — 227 — 227 Consumer loans: Home equity — — — — — — Other — — — — — — $ 885 $ 285 $ 1,170 $ 2,453 $ 1,195 $ 3,648 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 Term Term Extension Extension and and Payment Term Payment Payment Delay Extension Delay Total Delay (Dollars in thousands) One- to four-family: Originated $ 81 $ 230 $ 730 $ 1,041 $ 720 Correspondent purchased — — 424 424 425 Bulk purchased — — — — — Commercial: Commercial real estate — — 192 192 50 Commercial and industrial — — 142 142 — Consumer loans: Home equity 84 — — 84 — Other — — — — — $ 165 $ 230 $ 1,488 $ 1,883 $ 1,195 98 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) One- to four-family: Originated 1 $ 110 $ 110 Correspondent purchased 1 282 285 Bulk purchased 1 239 257 Commercial: Commercial real estate — — — Commercial and industrial — — — Consumer: Home equity 1 38 38 Other — — — 4 $ 669 $ 690 Allowance for Credit Losses - The following table summarizes ACL activity, by loan portfolio segment, for the periods presented. For the Year Ended September 30, 2025 Commercial 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 Charge-offs ( 116 ) — ( 62 ) ( 62 ) ( 93 ) ( 271 ) Recoveries 19 20 26 46 8 73 Provision for credit losses ( 530 ) 289 1,349 1,638 94 1,202 Ending balance $ 3,046 $ 18,277 $ 2,499 $ 20,776 $ 217 $ 24,039 For the Year Ended September 30, 2024 Commercial 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 ) Recoveries 28 — 5 5 16 49 Provision for credit losses ( 1,701 ) 972 75 1,047 21 ( 633 ) Ending balance $ 3,673 $ 17,968 $ 1,186 $ 19,154 $ 208 $ 23,035 99 For the Year Ended September 30, 2023 Commercial One- to four- Commercial Commercial Family Real Estate and Industrial Total Consumer Total (Dollars in thousands) Beginning balance $ 5,006 $ 10,630 $ 490 $ 11,120 $ 245 $ 16,371 Charge-offs — — ( 75 ) ( 75 ) ( 40 ) ( 115 ) Recoveries 6 1 — 1 2 9 Provision for credit losses 316 6,445 689 7,134 44 7,494 Ending balance $ 5,328 $ 17,076 $ 1,104 $ 18,180 $ 251 $ 23,759 The key assumptions in the Company's ACL model at September 30, 2025 include the economic forecast, the forecast and reversion to mean time periods, and prepayment and curtailment assumptions. Management also considered certain qualitative factors when evaluating the adequacy of the ACL at September 30, 2025. The key assumptions utilized in estimating the Company's ACL at September 30, 2025 are discussed below. • Economic Forecast - Management considered several economic forecasts provided by a third party and selected an economic forecast that was the most appropriate considering the facts and circumstances at September 30, 2025. 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. The economic index most impactful to all loan pools within the model at September 30, 2025 was the national unemployment rate. The forecasted national unemployment rate in the economic scenario selected by management at September 30, 2025 had the national unemployment rate gradually increasing to 4.7 % by September 30, 2026, which was the end of our four-quarter forecast time period. • Forecast and reversion to mean time periods - The forecasted time period and the reversion to mean time period were each four quarters for all of the economic indices at September 30, 2025. • Prepayment and curtailment assumptions - The assumptions used at September 30, 2025 were generally based on actual historical prepayment and curtailment speeds, adjusted by management as deemed necessary. The prepayment and curtailment assumptions vary for each respective loan pool in the model. • Qualitative factors - Management applied qualitative factors at 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 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. 100 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, 2025 2024 (Dollars in thousands) Beginning balance $ 6,003 $ 4,095 Adoption of ASU 2022-02 — 16 Provision for credit losses ( 457 ) 1,892 Ending balance $ 5,546 $ 6,003 5. PREMISES, EQUIPMENT AND LEASES A summary of the net carrying value of premises and equipment at September 30, 2025 and 2024 was as follows: 2025 2024 (Dollars in thousands) Land $ 15,926 $ 16,070 Building and improvements 131,483 128,730 Furniture, fixtures and equipment 55,286 54,485 Total premises and equipment 202,695 199,285 Less accumulated depreciation 113,381 107,822 Premises and equipment, net $ 89,314 $ 91,463 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. As of September 30, 2025, for the Company's operating leases, the weighted average remaining lease term was 24.3 years and the weighted average discount rate was 2.71 %. The following table presents lease expenses and supplemental cash flow information related to the Company's operating leases for the years indicated. For the Year Ended September 30, 2025 2024 2023 (Dollars in thousands) Operating lease expense $ 852 $ 1,141 $ 1,307 Variable lease expense 153 176 189 Short-term lease expense 2 2 41 Cash paid for amounts included in the measurement of lease liabilities 780 1,130 1,211 101 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 %. 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, 2025 2024 (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: Operating Finance Total (Dollars in thousands) Fiscal year 2026 $ 630 $ 100 $ 730 Fiscal year 2027 618 100 718 Fiscal year 2028 585 96 681 Fiscal year 2029 417 83 500 Fiscal year 2030 407 67 474 Thereafter 9,211 1,318 10,529 Total future minimum lease payments 11,868 1,764 13,632 Amounts representing interest ( 3,601 ) ( 701 ) ( 4,302 ) Present value of net future minimum lease payments $ 8,267 $ 1,063 $ 9,330 6. LOW INCOME HOUSING PARTNERSHIPS The Bank's investment in low income housing partnerships, which is included in other assets in the consolidated balance sheets, was $ 140.0 million and $ 131.4 million at September 30, 2025 and 2024, respectively. The Bank's obligations related to unfunded commitments, which are included in other liabilities in the consolidated balance sheets, were $ 70.2 million and $ 74.3 million at September 30, 2025 and 2024, respectively. The majority of the commitments at September 30, 2025 are projected to be funded through the end of calendar year 2028 . For fiscal years 2025, 2024, and 2023, the net income tax benefit associated with these investments, which consists of proportional amortization expense and affordable housing tax credits and other related tax benefits, was reported in income tax expense in the consolidated statements of income. The amount of proportional amortization expense recognized during fiscal years 2025, 2024 and 2023 was $ 11.4 million , $ 10.4 million and $ 10.1 million , respectively, and the amount of affordable housing tax credits and other related tax benefits was $ 13.8 million , $ 12.6 million and $ 12.4 million , respectively, resulting in a net income tax benefit of $ 2.4 million, $ 2.2 million and $ 2.3 million, respectively. There were no impairment losses during fiscal years 2025, 2024, or 2023 resulting from the forfeiture or ineligibility of tax credits or other circumstances. 102 7. INTANGIBLE ASSETS Changes in the carrying amount of the Company's intangible assets associated with an acquisition in fiscal year 2018, which are included in other assets on the consolidated balance sheet, are presented in the following table. Core Deposit and Goodwill Other Intangibles (Dollars in thousands) Balance at September 30, 2022 $ 9,324 $ 2,589 Less: Amortization — ( 1,069 ) Balance at September 30, 2023 9,324 1,520 Less: Amortization — ( 774 ) Balance at September 30, 2024 9,324 746 Less: Amortization — ( 523 ) Balance at September 30, 2025 $ 9,324 $ 223 As of September 30, 2025, there was no impairment recorded on goodwill or other intangible assets. 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 . 8. DEPOSITS AND BORROWED FUNDS Deposits - Non-interest-bearing deposits totaled $ 601.4 million and $ 549.6 million as of September 30, 2025 and 2024, respectively. Certificates of deposit with a minimum denomination of $250 thousand were $ 584.1 million and $ 516.3 million as of September 30, 2025 and 2024, respectively. Deposits in excess of $250 thousand may not be fully insured by the Federal Deposit Insurance Corporation. 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, 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. 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: 2025 2024 (Dollars in thousands) FHLB advances $ 1,950,984 $ 2,180,656 Deferred prepayment penalty - FHLB advances ( 1,277 ) ( 2,173 ) $ 1,949,707 $ 2,178,483 Weighted average contractual interest rate on FHLB advances 3.53 % 3.41 % Weighted average effective interest rate on FHLB advances (1) 3.54 3.29 (1) The effective interest rate includes the net impact of deferred amounts and interest rate swaps related to the adjustable-rate FHLB advances. 103 FHLB borrowings are secured by certain qualifying loans pursuant to a blanket collateral agreement with FHLB and certain securities, when necessary. Per FHLB's lending guidelines, total FHLB borrowings cannot exceed 40 % of a borrowing institution's regulatory total assets without the pre-approval of FHLB senior management. 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 %. 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. At September 30, 2025 and 2024, the interest rate swap agreements had an average remaining term to maturity of 2.7 years and 2.3 years, respectively. The interest rate swaps were designated as cash flow hedges and involved the receipt of variable amounts from a counterparty in exchange for the Bank making fixed-rate payments over the life of the interest rate swap agreements. At 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, 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"). The leverage strategy is not a core operating business for the Company. It provides the Company the ability to utilize excess capital to generate earnings. Additionally, it is a strategy that can be exited quickly without additional costs. Leverage strategy borrowings are repaid prior to each quarter end. 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. 104 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, 2025, by fiscal year. 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, 2025, the Bank's FHLB advances had maturities ranging from October 2025 to October 2029. Certificates of Deposit Borrowings Amount (Dollars in thousands) 2026 $ 425,000 $ 2,169,268 2027 742,500 671,257 2028 565,984 129,097 2029 132,500 31,939 2030 85,000 10,856 Thereafter — 263 $ 1,950,984 $ 3,012,680 9. INCOME TAXES Income tax expense (benefit) for the years ended September 30, 2025, 2024, and 2023 consisted of the following: 2025 2024 2023 (Dollars in thousands) Current: Federal $ 12,086 $ 12,153 $ 6,789 State 830 394 1,435 12,916 12,547 8,224 Deferred: Federal 1,534 1,316 ( 39,209 ) State 546 2,230 ( 6,311 ) 2,080 3,546 ( 45,520 ) $ 14,996 $ 16,093 $ ( 37,296 ) 105 The Company's effective tax rates were 18.1 %, 29.7 %, and 26.8 % for the years ended September 30, 2025, 2024, and 2023, respectively. The differences between such effective rates and the statutory Federal income tax rate computed on income before income tax expense resulted from the following: 2025 2024 2023 Amount % Amount % Amount % (Dollars in thousands) Federal income tax expense computed at statutory Federal rate $ 17,434 21.0 % $ 11,362 21.0 % $ ( 29,180 ) 21.0 % Increases (decreases) in taxes resulting from: State taxes, net of Federal tax effect 1,903 2.3 2,497 4.8 ( 5,412 ) 3.9 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. The difference between actual bad debts and the formula limit bad debt amount ("excess reserves") was recorded in the Bank's retained earnings. As a result of the 1996 Act, savings institutions, like the Bank, were required to use the specific charge-off method in computing bad debts on their tax returns beginning with their 1996 Federal tax returns. The 1996 Act required the recapture of excess reserves over the base year, which was September 30, 1988 for the Bank. The excess reserves established prior to September 30, 1988 are to remain in retained earnings ("pre-1988 bad debt reserves") subject to recapture by the Bank on the occurrence of certain distributions in excess of current earnings and profits accumulated in tax years beginning after December 31, 1951 ("accumulated earnings and profits"). For tax purposes, if current and accumulated earnings and profits are negative, distributions from the Bank to Capitol Federal Financial, Inc. 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 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. 106 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. 2025 2024 (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 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 Net purchase discounts related to acquired loans 86 116 Low income housing partnerships 1 6 Other 648 829 Gross deferred income tax assets 50,330 55,620 Valuation allowance ( 42 ) ( 27 ) Gross deferred income tax asset, net of valuation allowance 50,288 55,593 Deferred income tax liabilities: FHLB stock dividends 16,929 18,871 Unrealized gain on AFS securities 4,795 6,382 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 Deposit intangible 64 200 Other 487 553 Gross deferred income tax liabilities 28,518 33,615 Net deferred tax assets $ 21,770 $ 21,978 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 . The State of Kansas allows for a bad debt deduction on savings and loan institutions' privilege tax returns of up to 5% of Kansas taxable income. 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. 107 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. For this reason, a valuation allowance was recorded for the related amounts at September 30, 2025 and 2024. No additional valuation allowances were recorded for the Company's other deferred tax assets as management believes it is more likely than not that these amounts will be realized through the reversal of the Company's existing taxable temporary differences and projected future taxable income. For the years ended September 30, 2025, 2024, and 2023, the Company had no unrecognized tax benefits. 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 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. federal and state examinations by tax authorities for fiscal years ending before 2022 . 10. EMPLOYEE STOCK OWNERSHIP PLAN The ESOP trust acquired 3,024,574 shares ( 6,846,728 shares post-corporate reorganization) of common stock in the Company's initial public offering and 4,726,000 shares of common stock in the Company's corporate reorganization in December 2010. Both acquisitions of common stock were made with proceeds from loans from the Company, secured by shares of the Company's stock purchased in each offering. The Bank has agreed to make cash contributions to the ESOP trust on an annual basis sufficient to enable the ESOP trust to make the required annual loan payments to the Company on September 30 th of each year. The loan for the shares acquired in the initial public offering matured on September 30, 2013 . The loan for the shares acquired in the corporate reorganization matures on September 30, 2040 . As annual loan payments are made on each September 30 th , shares are released from collateral and allocated to qualified employees based on the proportion of their qualifying compensation to total qualifying compensation. On September 30, 2025, 165,198 shares were released from collateral. On September 30, 2026, 165,198 shares will be released from collateral. As ESOP shares are committed to be released from collateral, the Company records compensation expense. Dividends on unallocated ESOP shares are applied to the debt service payments of the loan secured by the unallocated shares. 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 $ 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. There was no compensation expense for dividends on unallocated ESOP shares in excess of the debt service payments for the years ended September 30, 2025, 2024, or 2023. Shares may be withdrawn from the ESOP trust due to diversification (a participant may begin to diversify at least 25 % of their ESOP shares at age 50 ), retirement, termination, or death of the participant. The following is a summary of shares held in the ESOP trust as of September 30, 2025 and 2024: 2025 2024 (Dollars in thousands) Allocated ESOP shares 4,223,910 4,239,629 Unreleased ESOP shares 2,477,970 2,643,168 Total ESOP shares 6,701,880 6,882,797 Fair value of unreleased ESOP shares $ 15,753 $ 16,401 108 11. STOCK-BASED COMPENSATION 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. No additional grants can be made from these two plans; however, awards granted under these two plans remain outstanding until they are individually vested, forfeited or expire. 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 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. The 2012 Equity Incentive Plan will expire on January 24, 2027 and no additional grants may be made after expiration, but awards granted under this plan will remain outstanding until they are individually vested, forfeited, or expire. The Company may issue incentive and nonqualified stock options under the 2012 Equity Incentive Plan. The incentive stock options expire no later than 10 years from the date of grant, and the nonqualified stock options expire no later than 15 years from the date of grant. The vesting period of stock options under the 2012 Equity Incentive Plan generally has ranged from 3 to 5 years. The stock option exercise price cannot be less than the market value at the date of the grant as defined by each plan. 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, 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. New shares are issued by the Company upon the exercise of stock options. Restricted Stock Plans – The 2012 Equity Incentive Plan had 2,363,000 shares originally eligible to be granted as restricted stock and, as of September 30, 2025, the Company had 1,362,175 shares available for future grants of restricted stock under this plan. As noted above, this plan will expire on January 24, 2027 and no additional grants may be made after expiration, but awards granted under this plan will remain outstanding until they are individually vested or forfeited. The vesting period of the restricted stock awards under the 2012 Equity Incentive Plan has generally ranged from 3 to 5 years. At September 30, 2025, the Company had 166,422 unvested shares of restricted stock with a weighted average grant date fair value of $ 6.06 per share. Compensation expense is calculated based on the fair market value of the Company's common stock at the date of the grant, as defined by the plan, and is recognized over the vesting period. Compensation expense attributable to restricted stock awards during the years ended September 30, 2025, 2024, and 2023 totaled $ 398 thousand, $ 348 thousand, and $ 327 thousand, respectively. The fair value of restricted stock that vested during the years ended September 30, 2025, 2024, and 2023 totaled $ 316 thousand, $ 213 thousand, and $ 285 thousand, respectively. As of September 30, 2025, there was $ 801 thousand of unrecognized compensation cost related to unvested restricted stock to be recognized over a weighted average period of 2.7 years. 12. COMMITMENTS AND CONTINGENCIES The following table summarizes the Bank's loan commitments as of September 30, 2025 and 2024: 2025 2024 (Dollars in thousands) Originate fixed-rate $ 89,563 $ 44,191 Originate adjustable-rate 133,791 130,419 Purchase/participate fixed-rate — 24,500 Purchase/participate adjustable-rate — 38,739 $ 223,354 $ 237,849 109 Commitments to originate loans are commitments to lend to a customer. Commitments to purchase/participate in loans represent commitments to purchase loans from correspondent lenders on a loan-by-loan basis or participate in commercial loans with a lead bank. The Bank evaluates each borrower's creditworthiness on a case-by-case basis. Commitments generally have expiration dates or other termination clauses, and one- to four-family loan commitments may require the payment of a fee. Some of the commitments are expected to expire without being fully drawn upon; therefore, the amount of total commitments disclosed in the table above does not necessarily represent future cash requirements. As of September 30, 2025 and 2024, there were no significant loan-related commitments that met the definition of derivatives or commitments to sell mortgage loans. As of September 30, 2025 and 2024, the Bank had approved but unadvanced lines of credit of $ 284.0 million and $ 278.1 million, respectively. In the normal course of business, the Company and the Bank are named defendants in various lawsuits and counterclaims. In the opinion of management, after consultation with legal counsel, none of the currently pending suits are expected to have a material adverse effect on the Company's consolidated financial statements for the year ended September 30, 2025, or future periods. 13. REGULATORY CAPITAL REQUIREMENTS The Bank and the Company are subject to various regulatory capital requirements administered by the federal banking agencies. Failure to meet minimum capital requirements can initiate certain mandatory and, possibly additional discretionary, actions by regulators that, if undertaken, could have a material adverse effect on the Company's financial statements. Under regulatory capital adequacy guidelines, the Company and Bank must meet specific capital guidelines that involve quantitative measures of the Company's and Bank's assets, liabilities, and certain off-balance sheet items as calculated under regulatory accounting practices. Additionally, the Bank must meet specific capital guidelines to be considered well capitalized per the regulatory framework for prompt corrective action. The Company's and Bank's capital amounts and classifications are also subject to qualitative judgments by regulators about components, risk weightings, and other factors. The Bank and the Company must maintain certain minimum capital ratios as set forth in the table below for capital adequacy purposes. At September 30, 2025, the Bank and Company met the requirements to elect the community bank leverage ratio ("CBLR"). Qualifying institutions that elect to use the CBLR framework and that maintain a leverage ratio of greater than 9% will be considered to have satisfied the generally applicable risk-based and leverage capital requirements in the regulatory agencies' capital rules and to have met the well capitalized ratio requirements. 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. For Capital Actual Adequacy Purposes Amount Ratio Amount Ratio (Dollars in thousands) As of September 30, 2025 Bank $ 935,267 9.6 % $ 876,469 9.0 % Company $ 984,902 10.1 % $ 876,448 9.0 % As of September 30, 2024 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. It is generally required that the Bank remain well capitalized before and after the proposed distribution. The Company's ability to pay dividends is dependent, in part, upon its ability to obtain capital distributions from the Bank. So long as the Bank continues to remain well capitalized after each capital distribution and operates in a safe and sound manner, it is management's belief that the regulators will continue to allow the Bank to distribute its net income to the Company, although no assurance can be given in this regard. 110 In conjunction with the Company's corporate reorganization in December 2010, a "liquidation account" was established for the benefit of certain depositors of the Bank in an amount equal to Capitol Federal Savings Bank MHC's ownership interest in the retained earnings of Capitol Federal Financial as of June 30, 2010. (Prior to the corporate reorganization, Capitol Federal Financial was the Bank's mid-tier holding company and Capitol Federal Savings Bank MHC, a mutual holding company, owned a majority of the stock of Capitol Federal Financial.) As of September 30, 2025, the balance of this liquidation account was $ 62.5 million. Under applicable federal banking regulations, neither the Company nor the Bank is permitted to pay dividends to its stockholders if stockholders' equity would be reduced below the amount of the liquidation account at that time. 14. FAIR VALUE OF FINANCIAL INSTRUMENTS Fair Value Measurements – The Company uses fair value measurements to record fair value adjustments to certain financial instruments and to determine fair value disclosures in accordance with ASC 820 and ASC 825. The Company's AFS securities and interest rate swaps are recorded at fair value on a recurring basis. Additionally, from time to time, the Company may be required to record at fair value other financial instruments on a non-recurring basis, such as OREO and loans individually evaluated for impairment. These non-recurring fair value adjustments involve the application of lower of cost or fair value accounting or write-downs of individual financial instruments. The Company groups its financial instruments at fair value in three levels based on the markets in which the financial instruments are traded and the reliability of the assumptions used to determine fair value. These levels are: • Level 1 - Valuation is based upon quoted prices for identical instruments traded in active markets. • Level 2 - Valuation is based upon quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-based valuation techniques for which all significant assumptions are observable in the market. • Level 3 - Valuation is generated from model-based techniques that use significant assumptions not observable in the market. These unobservable assumptions reflect the Company's own estimates of assumptions that market participants would use in pricing the financial instrument. Valuation techniques include the use of option pricing models, discounted cash flow models, and similar techniques. The results cannot be determined with precision and may not be realized in an actual sale or immediate settlement of the financial instrument. The Company bases the fair value of its financial instruments on the price that would be received from the sale of an instrument in an orderly transaction between market participants at the measurement date under current market conditions. The Company maximizes the use of observable inputs and minimizes the use of unobservable inputs when measuring fair value. The following is a description of valuation methodologies used for financial instruments measured at fair value on a recurring basis. AFS Securities - The Company's AFS securities portfolio is carried at estimated fair value. The Company primarily uses prices obtained from third-party pricing services to determine the fair value of its securities. On a quarterly basis, management corroborates a sample of prices obtained from the third-party pricing service for Level 2 securities by comparing them to an independent source. If the price provided by the independent source varies by more than a predetermined percentage from the price received from the third-party pricing service, then the variance is researched by management. The Company did not have to adjust prices obtained from the third-party pricing service when determining the fair value of its securities during the years ended September 30, 2025 and 2024. The Company's major security types, based on the nature and risks of the securities, are: • MBS - The majority of these securities are issued by GSEs. Estimated fair values are based on a discounted cash flow method. Cash flows are determined based on prepayment projections of the underlying mortgages and are discounted using current market yields for benchmark securities. (Level 2) • GSE debentures - Estimated fair values are based on a discounted cash flow method. Cash flows are determined by taking any embedded options into consideration and are discounted using current market yields for similar securities. (Level 2) 111 • Corporate Bonds and Municipal Bonds - Estimated fair values are based on a discounted cash flow method. Cash flows are determined by taking any embedded options into consideration and are discounted using current market yields for securities with similar credit profiles. (Level 2) Interest Rate Swaps - The Company's interest rate swaps are designated as cash flow hedges and are reported at fair value in other assets on the consolidated balance sheet if in a gain position and in other liabilities if in a loss position, with any unrealized gains and losses, net of taxes, reported as AOCI in stockholders' equity. See "Note 8. Deposits and Borrowed Funds" for additional information. The estimated fair values of the interest rate swaps are obtained from the counterparty and are determined by a discounted cash flow analysis using observable market-based inputs. On a quarterly basis, management corroborates the estimated fair values by internally calculating the estimated fair value using a discounted cash flow analysis with independent observable market-based inputs from a third party. No adjustments were made to the estimated fair values obtained from the counterparty during the years ended September 30, 2025 and 2024. (Level 2) The following tables provide the level of valuation assumption used to determine the carrying value of the Company's financial instruments measured at fair value on a recurring basis at the dates presented. The Company did not have any Level 3 financial instruments measured at fair value on a recurring basis at September 30, 2025 or 2024. September 30, 2025 Quoted Prices Significant Significant in Active Markets Other Observable Unobservable Carrying for Identical Assets Inputs Inputs Value (Level 1) (Level 2) (Level 3) (Dollars in thousands) Assets: AFS Securities: MBS $ 863,500 $ — $ 863,500 $ — Corporate bonds 3,716 — 3,716 — 867,216 — 867,216 — Interest rate swaps 926 — 926 — $ 868,142 $ — $ 868,142 $ — September 30, 2024 Quoted Prices Significant Significant in Active Markets Other Observable Unobservable Carrying for Identical Assets Inputs Inputs Value (Level 1) (Level 2) (Level 3) (Dollars in thousands) Assets: AFS Securities: MBS $ 783,573 $ — $ 783,573 $ — GSE debentures 69,305 — 69,305 — Corporate bonds 3,388 — 3,388 — $ 856,266 $ — $ 856,266 $ — Interest rate swaps 2,103 — 2,103 — $ 858,369 $ — $ 858,369 $ — The following is a description of valuation methodologies used for significant financial instruments measured at fair value on a non-recurring basis. The significant unobservable inputs used in the determination of the fair value of assets classified as Level 3 have an inherent measurement uncertainty that, if changed, could result in higher or lower fair value measurements of these assets as of the reporting date. Loans Receivable – Collateral dependent assets are assets evaluated on an individual basis. Those collateral dependent assets that are evaluated on an individual basis are considered financial assets measured at fair value on a non-recurring basis. The fair value of collateral dependent loans/loans individually evaluated for loss on a non-recurring basis during fiscal years 112 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. The one- to four-family loans included in this amount were individually evaluated to determine if the carrying value of the loan was in excess of the fair value of the collateral, less estimated selling costs of 10 %. Fair values were estimated through current appraisals. Management does not adjust or apply a discount to the appraised value of one- to four-family loans, except for the estimated sales cost noted above, and the primary unobservable input for these loans was the appraisal. For commercial loans, if the most recent appraisal or book value of the collateral does not reflect current market conditions due to the passage of time and/or other factors, management will adjust the existing appraised or book value based on knowledge of local market conditions, recent transactions, and estimated selling costs, if applicable. Adjustments to appraised or book values are generally based on assumptions not observable in the marketplace. The primary significant unobservable inputs for commercial loans individually evaluated during the year ended September 30, 2025 were downward adjustments to the book value of the collateral for lack of marketability. During fiscal year 2025, the adjustments ranged from 10 % to 99 %, with a weighted average of 23 %. During fiscal year 2024, the adjustments ranged from 5 % to 100 %, with a weighted average of 40 %. The basis utilized in calculating the weighted averages for these adjustments was the original unadjusted value of each collateral item. OREO – OREO primarily represents real estate acquired as a result of foreclosure or by deed in lieu of foreclosure and is carried at the lower of cost or fair value. The fair value for one- to four-family OREO is estimated through current appraisals or listing prices, less estimated selling costs of 10 %. Management does not adjust or apply a discount to the appraised value or listing price, except for the estimated sales costs noted above. The primary significant unobservable input for one- to four-family OREO was the appraisal or listing price. The fair value of one- to four-family OREO measured on a non-recurring basis during 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. For commercial OREO, if the most recent appraisal or book value of the collateral does not reflect current market conditions due to the passage of time and/or other factors, management will adjust the existing appraised or book value based on knowledge of local market conditions, recent transactions, and estimated selling costs, if applicable. Adjustments to appraised or book values are generally based on assumptions not observable in the marketplace. The primary significant unobservable input for commercial OREO is downward adjustments to book value of the collateral for lack of marketability. Fair values of foreclosed property cannot be determined with precision and may not be realized in an actual sale of the property and, as such, are classified as Level 3. There was no commercial OREO measured on a non-recurring basis during the years ended September 30, 2025 and 2024. 113 Fair Value Disclosures – The Company estimated fair value amounts using available market information and a variety of valuation methodologies as of the dates presented. Considerable judgment is required to interpret market data to develop the estimates of fair value. The estimates presented are not necessarily indicative of amounts the Company would realize from a current market exchange at subsequent dates. The carrying amounts and estimated fair values of the Company's financial instruments by fair value hierarchy, at the dates presented, were as follows: September 30, 2025 Carrying Estimated Fair Value Amount Total Level 1 Level 2 Level 3 (Dollars in thousands) Assets: Cash and cash equivalents $ 252,443 $ 252,443 $ 252,443 $ — $ — AFS securities 867,216 867,216 — 867,216 — Loans receivable 8,111,961 7,902,077 — — 7,902,077 FHLB stock 90,662 90,662 90,662 — — Interest rate swaps 926 926 — 926 — Liabilities: Deposits 6,591,448 6,597,102 3,578,768 3,018,334 — Borrowings 1,950,770 1,952,458 — 1,952,458 — September 30, 2024 Carrying Estimated Fair Value Amount Total Level 1 Level 2 Level 3 (Dollars in thousands) Assets: Cash and cash equivalents $ 217,307 $ 217,307 $ 217,307 $ — $ — AFS securities 856,266 856,266 — 856,266 — Loans receivable 7,907,338 7,660,535 — — 7,660,535 FHLB stock 101,175 101,175 101,175 — — Interest rate swaps 2,103 2,103 — 2,103 — Liabilities: Deposits 6,129,982 6,135,652 3,164,672 2,970,980 — Borrowings 2,179,564 2,169,403 — 2,169,403 — 114 15. ACCUMULATED OTHER COMPREHENSIVE INCOME The following tables present the changes in the components of AOCI, net of tax, for the years presented. For the Year Ended September 30, 2025 Unrealized Unrealized Gains (Losses) Gains (Losses) on AFS on Cash Flow Total Securities Hedges AOCI (Dollars in thousands) Beginning balance $ 20,032 $ 1,595 $ 21,627 Other comprehensive (loss) income, before reclassifications ( 4,980 ) 1,391 ( 3,589 ) Amount reclassified from AOCI, net of taxes of $ 727 — ( 2,283 ) ( 2,283 ) Other comprehensive (loss) ( 4,980 ) ( 892 ) ( 5,872 ) Ending balance $ 15,052 $ 703 $ 15,755 For the Year Ended September 30, 2024 Unrealized Unrealized Gains (Losses) Gains (Losses) on AFS on Cash Flow Total Securities Hedges AOCI (Dollars in thousands) Beginning balance $ ( 1,142 ) $ 9,842 $ 8,700 Other comprehensive income (loss), before reclassifications 22,362 ( 2,135 ) 20,227 Amount reclassified from AOCI, net of taxes of $ 1,967 — ( 6,112 ) ( 6,112 ) 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 Ending balance $ 20,032 $ 1,595 $ 21,627 For the Year Ended September 30, 2023 Unrealized Unrealized Gains (Losses) Gains (Losses) on AFS on Cash Flow Total Securities Hedges AOCI (Dollars in thousands) Beginning balance $ ( 155,119 ) $ 9,486 $ ( 145,633 ) Other comprehensive income (loss), before reclassifications 8,355 5,957 14,312 Amount reclassified from AOCI, net of taxes of $ 1,808 — ( 5,601 ) ( 5,601 ) 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 $ 8,700 115 16. REVENUE RECOGNITION Details of the Company's primary types of non-interest income revenue streams by financial statement line item reported in the consolidated statements of income that are within the scope of ASC Topic 606 are below. During fiscal years 2025, 2024 and 2023, revenue from contracts with customers totaled $ 16.3 million, $ 15.3 million and $ 17.6 million, respectively. Deposit Service Fees Interchange Transaction Fees - Interchange transaction fee income primarily consists of interchange fees earned on a transactional basis through card payment networks. The performance obligation for these types of transactions is satisfied as services are rendered for each transaction and revenue is recognized daily concurrently with the transaction processing services provided to the cardholder. In order to participate in the card payment networks, the Company must pay various transaction related costs established by the networks ("interchange network charges"), including membership fees and a per unit charge for each transaction. The Company is acting as an agent for its debit card customers when they are utilizing the card payment networks; therefore, interchange transaction fee income is reported net of interchange network charges. Interchange network charges totaled $ 4.3 million, $ 4.2 million and $ 4.0 million for fiscal years 2025, 2024 and 2023, respectively. Service Charges on Deposit Accounts - Service charges on deposit accounts consist of account maintenance fees and transaction-based fees such as those for overdrafts, insufficient funds, wire transfers and the use of out-of-network ATMs. The Company's performance obligation is satisfied over a period of time, generally a month, for account maintenance and at the time of service for transaction-based fees. Revenue is recognized after the performance obligation is satisfied. Payments are typically collected from the customer's deposit account at the time the transaction is processed and/or at the end of the customer's statement cycle (typically monthly). Insurance Commissions Commissions are received on insurance product sales. The Company acts in the capacity of an agent between the Company's customer and the insurance carrier. The Company's performance obligation is satisfied when the terms of the policy have been agreed upon and the insurance policy becomes effective. Additionally, the Company earns performance-based incentives ("contingent insurance commissions") based on certain criteria established by the insurance carriers. Contingent insurance commissions are accrued based upon management's expectations. Other Non-Interest Income Trust Asset Management Income - The Company provides trust asset management services to customers. The Company primarily earns fees for these services over time as the services are provided and the Company assesses fees at each month end. Fees are charged based on a tiered scale of the market value of the individual trust asset accounts at the end of the month. 116 17. PARENT COMPANY FINANCIAL INFORMATION (PARENT COMPANY ONLY) The Company serves as the holding company for the Bank (see "Note 1. Summary of Significant Accounting Policies"). The Company's (parent company only) balance sheets at the dates presented, and the related statements of income and cash flows for each of the years presented are as follows: BALANCE SHEETS SEPTEMBER 30, 2025 and 2024 (Dollars in thousands, except per share amounts) 2025 2024 ASSETS: Cash and cash equivalents $ 17,631 $ 50,110 Investment in the Bank 998,042 948,800 Note receivable - ESOP 31,139 32,731 Income taxes receivable, net 479 423 Other assets 527 519 TOTAL ASSETS $ 1,047,818 $ 1,032,583 LIABILITIES: Deferred income tax liabilities, net $ 58 $ 58 Payable to the Bank, net 41 51 Other liabilities 42 204 Total liabilities 141 313 STOCKHOLDERS' EQUITY: Preferred stock, $ .01 par value; 100,000,000 shares authorized, no shares issued or outstanding — — Common stock, $ .01 par value; 1,400,000,000 shares authorized, 132,204,305 and 132,735,565 shares issued and outstanding as of September 30, 2025 and 2024, respectively 1,322 1,327 Additional paid-in capital 1,142,711 1,146,851 Unearned compensation - ESOP ( 24,780 ) ( 26,431 ) Accumulated deficit ( 87,331 ) ( 111,104 ) AOCI, net of tax 15,755 21,627 Total stockholders' equity 1,047,677 1,032,270 TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 1,047,818 $ 1,032,583 117 STATEMENTS OF INCOME YEARS ENDED SEPTEMBER 30, 2025, 2024, and 2023 (Dollars in thousands) 2025 2024 2023 INTEREST AND DIVIDEND INCOME: Dividend income from the Bank $ 14,000 $ 25,745 $ 86,217 Interest income from other investments 1,624 2,442 2,236 Total interest and dividend income 15,624 28,187 88,453 NON-INTEREST EXPENSE: Salaries and employee benefits 830 994 906 Regulatory and outside services 351 382 275 Other non-interest expense 712 697 694 Total non-interest expense 1,893 2,073 1,875 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 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 ) NET INCOME (LOSS) $ 68,025 $ 38,010 $ ( 101,659 ) 118 STATEMENTS OF CASH FLOWS YEARS ENDED SEPTEMBER 30, 2025, 2024, and 2023 (Dollars in thousands) 2025 2024 2023 CASH FLOWS FROM OPERATING ACTIVITIES: Net income (loss) $ 68,025 $ 38,010 $ ( 101,659 ) Adjustments to reconcile net income to net cash provided by operating activities: (Equity in)/Equity in excess of distribution over earnings of subsidiary ( 54,238 ) ( 11,891 ) 188,166 Depreciation of equipment — 23 45 Provision for deferred income taxes — ( 2 ) ( 12 ) Changes in: Receivable from/payable to the Bank ( 10 ) 2,489 ( 2,519 ) Income taxes receivable/payable ( 56 ) ( 92 ) 123 Other assets ( 11 ) ( 11 ) ( 2 ) Other liabilities ( 162 ) 193 11 Net cash provided by operating activities 13,548 28,719 84,153 CASH FLOWS FROM INVESTING ACTIVITIES: Principal collected on note receivable from ESOP 1,592 1,542 1,494 Net cash provided by investing activities 1,592 1,542 1,494 CASH FLOWS FROM FINANCING ACTIVITIES: Net payment from subsidiary related to restricted stock awards 520 419 401 Cash dividends paid ( 44,252 ) ( 44,522 ) ( 83,172 ) Repurchase of common stock ( 3,887 ) ( 19,448 ) ( 23,453 ) Net cash used in financing activities ( 47,619 ) ( 63,551 ) ( 106,224 ) NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS ( 32,479 ) ( 33,290 ) ( 20,577 ) CASH AND CASH EQUIVALENTS: Beginning of year 50,110 83,400 103,977 End of year $ 17,631 $ 50,110 $ 83,400 119 Item 9. Changes in and Disagreements With Accountants on Accounting and Financial Disclosure None.