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Item 2. Management’s Discussion and Analysis

2026-02-06 compared with 2025-08-08 · 405 added, 748 removed, 734 unchanged (61% of the section changed)

9 unchanged sentences

• our ability to access cost-effective funding and maintain sufficient liquidity;

• our ability to extend our commercial banking and trust asset management expertise across our market areas;

• our ability to expand our commercial banking and trust asset management expertise across our market areas;

• fluctuations in deposit flows;

• transactions or activities that would result in the recapture of base-year, tax basis bad debt reserves;

• the future earnings and capital levels of the Bank, the impact of the pre-1988 bad debt recapture and the continued non-objection by our primary federal banking regulators, to the extent required, to distribute capital from the Bank to the Company, which could affect the Company's income tax expense and the Company's ability to pay dividends in accordance with its dividend policy and/or repurchase shares;

• the future earnings and capital levels of the Bank, the impact of potential pre-1988 bad debt recapture and the continued non-objection by our primary federal banking regulators, to the extent required, to distribute capital from the Bank to the Company, which could affect the Company's income tax expense and the Company's ability to pay dividends in accordance with its dividend policy and/or repurchase shares;

• the strength of the U.S.

economy in general and the strength and/or the availability of labor in the local economies in which we conduct operations, including areas where we have purchased large amounts of correspondent loans, originated commercial loans, and entered into commercial loan participations;

• changes in real estate values, unemployment levels, general economic trends, and the level and direction of loan delinquencies and charge-offs may require changes in the estimates of the adequacy of the ACL and may adversely affect our business;

economy in general and in the local economies in which we conduct operations, including areas where we have purchased large amounts of correspondent loans, originated commercial loans, and entered into commercial loan participations;

• increases in classified and/or non-performing assets, which may require the Bank to increase the ACL, charge-off loans and incur elevated collection and carrying costs, or not recognize income for a period of time, related to such non-performing assets;

2 unchanged sentences

• the effects of, and changes in, monetary and interest rate policies of the Board of Governors of the Federal Reserve System ("FRB");

• the effects of, and changes in, trade and fiscal policies and laws of the United States government;

• the effects of, and changes in, foreign and military policies of the United States government;

• the effects of, and changes in, trade and fiscal policies and foreign and military policies of the United States government;

• inflation, interest rate, market, monetary, and currency fluctuations and the effects of a potential economic recession or slower economic growth;

• the potential imposition of new or increased tariffs or changes to existing trade policies that would affect economic activity or specific industry sectors;

• the impact of bank failures or adverse developments at other banks and related negative press about the banking industry in general on investor or depositor sentiment;

6 unchanged sentences

• significant litigation;

• technological changes;

• technological changes and the costs thereof;

• our ability to maintain the security of our financial, accounting, technology, and other operating systems and facilities, including the ability to withstand cyberattacks;

24 unchanged sentences

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

The Company recognized net income of $49.2 million, or $0.38 per share, for the current year period, compared to net income of $26.0 million, or $0.20 per share, for the prior year period.

The lower net income in the prior year period was primarily a result of the net losses on the sale of securities associated with the securities strategy.

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

Excluding the effects of the net loss associated with the securities strategy, EPS would have been $0.28 for the prior year period.

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

The net interest margin increased 15 basis points, from 1.77% for the prior year period to 1.92% for the current year period.

The increase was due mainly to higher yields on the loan portfolio due to the continued shift of loan balances from the one- to four-family loan portfolio to the higher yielding commercial loan portfolio, which outpaced the increase in the cost of deposits, largely in high yield savings accounts and retail certificates of deposit.

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

The Bank is active in local markets for lending, commercial deposit and treasury management relationships, even when the lending opportunity may be for locations outside of the Bank's and the customers' local footprint.

The Company recognized net income of $20.3 million, or $0.16 per share, for the quarter ended December 31, 2025 compared to net income of $15.4 million, or $0.12 per share, for the quarter ended December 31, 2024.

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

The net interest margin increased 33 basis points, from 1.86% for the prior year quarter to 2.19% for the current quarter.

The increase was due mainly to growth in the higher yielding commercial loan portfolio.

The Bank continues its progression from a primarily retail oriented financial institution to a full-service commercial bank by strategically growing all aspects of commercial banking through investments in technology, people, products, and services.

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

The Company's efficiency ratio was 58.89% for the current year period compared to 69.77% for the prior year period.

Excluding the net losses from the securities strategy, the efficiency ratio would have been 62.87% for the prior year period.

The improvement in the efficiency ratio, excluding the net losses from the securities strategy, was due primarily to higher net interest income compared to the prior year period.

The Company's operating expense ratio (annualized) for the current year period was 1.20% compared to 1.18% for the prior year period, due mainly to higher non-interest expense, largely related to increased expenses due to higher salaries and employee benefits.

Total assets were $9.69 billion at June 30, 2025, a $165.1 million increase from September 30, 2024, due mainly to increases in loans and securities which were funded by excess operating cash and deposit growth, largely in the Bank's high yield savings account offering.

The loans receivable portfolio was $8.02 billion at June 30, 2025, a $116.2 million increase from September 30, 2024 due to a $402.9 million increase in commercial loans, attributable primarily to commercial real estate loan growth, partially offset by a decrease in one- to four-family loans of $286.2 million.

Total deposits were $6.43 billion at June 30, 2025, a $301.2 million increase from September 30, 2024.

The increase during the current year period was due primarily to a $311.8 million increase in the Bank's high yield savings account offering and a $98.3 million, or 37.8%, increase in commercial non-maturity deposits.

The increases were partially offset by an $85.4 million decrease in retail certificates of deposit and a $60.6 million decrease in retail money market accounts.

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

The annual percentage yield decreased during the current quarter from 4.30% as of March 31, 2025.

Total borrowings were $2.07 billion at June 30, 2025, a $108.0 million decrease from September 30, 2024.

The decrease was due to principal payments made on the Bank's amortizing FHLB advances, along with borrowings that matured but were not replaced.

Management estimates that the Bank had $2.97 billion in liquidity available at June 30, 2025 based on the Bank's blanket collateral agreement with FHLB and unencumbered securities.

Stockholders' equity totaled $1.05 billion at June 30, 2025, an increase of $13.9 million from September 30, 2024.

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

The Bank's community bank leverage ratio ("CBLR") as of June 30, 2025 was 9.7%.

The Company's efficiency ratio was 53.66% for the current quarter compared to 57.86% for the prior year quarter.

The improvement in the efficiency ratio was due primarily to higher net interest income compared to the prior year quarter, partially offset by higher non-interest expense.

The Company's operating expense ratio (annualized) for the current quarter was 1.24% compared to 1.14% for the prior year quarter.

The operating expense ratio was higher in the current quarter due mainly to higher non-interest expense, partially offset by higher average assets compared to the prior year quarter.

The loan portfolio totaled $8.18 billion at December 31, 2025, a $64.8 million increase from September 30, 2025.

Commercial loans grew $162.6 million, mainly in the commercial real estate portfolio, partially offset by a $98.6 million decrease in one- to four-family loans due primarily to repayments exceeding originations as cash flows from this portfolio are being used to fund commercial loan

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

The Bank expects to fund approximately $60.0 million of undisbursed amounts on existing commercial real estate and commercial construction loans and approximately $5.0 million of commercial real estate and commercial construction commitments during the March 31, 2026 quarter.

The near-term projected growth for commercial loan balances is approximately 1% in the quarter ending March 31, 2026, with projected overall commercial loan growth of approximately 18% for the current fiscal year.

The weighted average DSCR for commercial loan originations and new participations during the current quarter was 2.52x and the weighted average LTV for commercial real estate and construction loans originated and new participations was 72%.

The weighted average DSCR and LTV for our commercial real estate and construction loan portfolio was 1.73x and 63%, respectively, at December 31, 2025.

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

At June 30, 2025, loans 30 to 89 days delinquent were 0.20% of total loans receivable, net, and loans 90 or more days delinquent or in foreclosure were 0.10% of total loans receivable, net.

See "Financial Condition - Asset Quality - Delinquent and nonaccrual loans and OREO" below for additional discussion.

During the current year period, net charge-offs ("NCOs") were $132 thousand.

At June 30, 2025 the gap between the Bank's amount of interest-earning assets and interest-bearing liabilities projected to reprice within one year was $(963.3) million, or (9.9)% of total assets, compared to $(1.51) billion, or (15.8)% of total assets, at September 30, 2024.

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

At December 31, 2025, loans 30 to 89 days delinquent were 0.24% of total loans receivable, net, and loans 90 or more days delinquent or in foreclosure were 0.10% of total loans receivable, net.

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

During the current quarter, the Bank had net charge-offs ("NCOs") of $119 thousand.

Total deposits were $6.76 billion at December 31, 2025, an increase of $167.2 million compared to September 30, 2025.

The increase in deposits was due mainly to increases in the Bank's high yield savings account offering and retail checking accounts.

Management has continued to focus on retaining and growing deposits through the Bank's high yield savings account product, which, as of December 31, 2025, had an annual percentage yield of 3.80% for accounts that meet the $10 thousand balance minimum.

The annual percentage yield on the high yield savings account product decreased to 3.70% mid-January 2026.

Total borrowings were $1.83 billion at December 31, 2025, a decrease of $120.9 million compared to September 30, 2025.

The decrease was due primarily to the maturity of $100.0 million in borrowings that were not replaced, along with principal payments made on the Bank's amortizing FHLB advances.

Cash flows from the deposit portfolio were used to pay down borrowings during the current quarter.

Management estimated that the Bank had $4.09 billion in liquidity available at December 31, 2025, based on the Bank's blanket collateral agreement with the FHLB, available brokered and public unit deposit capacity, unencumbered securities, and cash and cash equivalent balances.

Stockholders' equity totaled $1.04 billion at December 31, 2025, a decrease of $6.4 million from September 30, 2025 due to strategic share repurchases and dividend payments, continuing our efforts to enhance stockholder value.

During the current quarter, the Company repurchased 2,376,633 shares of common stock at an average price of $6.86 per share, or $16.3 million in total, and paid regular quarterly dividends totaling $11.0 million, or $0.085 per share.

As of December 31, 2025, the Bank's capital ratios exceeded the well-capitalized requirements.

The Bank's community bank leverage ratio ("CBLR") as of December 31, 2025 was 9.5%.

At December 31, 2025, the gap between the Bank's interest-earning assets and interest-bearing liabilities projected to reprice within one year was $(1.23) billion, or (12.6%) of total assets, compared to $(983.6) million, or (10.1%) of total assets, at September 30, 2025.

See additional discussion in "Part I, Item 3.

Quantitative and Qualitative Disclosures About Market Risk."

Securities Strategy to Improve Earnings

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

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

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

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

See additional information regarding the impact of the securities strategy on our financial measurements in "Comparison of Operating Results for the Nine Months Ended June 30, 2025 and 2024 - Average Balance Sheets" below.

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

With the proceeds from the sale of the securities, the Company purchased $632.0 million of

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

Quantitative and Qualitative Disclosures About Market Risk." As of December 31, 2025, the Bank was in compliance with its internal policy thresholds for sensitivity to changes in interest rates.

Strategic Banking Initiatives

The Company continues to strategically grow all aspects of commercial banking through the alignment of technology, people, products and services.

Management believes we have been and will continue to be successful in this initiative as we focus on meeting the financial needs of growing and established companies and small businesses and pairing them with experienced relationship managers who offer a broad range of customized services, digital platforms and sophisticated cash management tools.

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

We expect that commercial loan growth will continue to be driven by prospecting for new relationships and maintaining and expanding existing relationships.

While strong credit quality remains a priority, the Bank is now offering a full suite of treasury management products to service new and existing relationships.

During the current quarter, the Bank continued to implement and utilize commercial loan pricing and profitability software which provides pricing and profitability based on the full customer banking relationship.

Management is in the process of implementing additional software modules during the remainder of fiscal year 2025 that provide market insight regarding competitor pricing to assist loan officers when preparing a loan offering for a customer.

We see many opportunities to grow our non-interest-bearing deposit base and diversify fee-based revenue streams through growth in treasury management services, trust and wealth management services, and small business banking.

We have a team of bankers focused on the deposit and loan needs of small businesses in our market area.

During the current quarter the Bank successfully launched new checking products and digital banking services specifically designed for our small business customers.

In the quarter ending September 30, 2025 the Bank expects to introduce digital onboarding for these small business customers using industry-leading risk management and screening tools, which will replace many manual verification tasks.

We continue to listen to the needs of our customers as this line of business grows, and as a result of demand within the treasury management pipeline, we are actively evaluating new technology for lockbox services, integrated accounts receivable, integrated accounts payable and purchase cards.

As part of this growth strategy, we are creating a seamless digital banking experience for all customers, which we believe will better enable the Bank to attract and retain deposits.

This includes a new deposit account onboarding platform implemented in November 2024 and digital banking enhancements for debit cardholders that will allow customers to begin using their card immediately online and in digital wallets without waiting for the physical card in the mail which is projected to be implemented in the fourth quarter of fiscal year 2025.

We are building a suite of private banking products and services.

Subsequent to June 30, 2025, the Bank hired several seasoned and well-connected wealth management professionals to allow us to round out our product offerings, begin managing our first private banking relationships, and transform our trust and wealth management business.

With this, private banking will be a new offering to our customer base.

The Company continues its progression to a full-service commercial bank by investing in technology, people, products, and services.

Our investments in technology have allowed us to launch new services and products, while our seasoned and well-connected commercial bankers and our trust and wealth advisors deliver access to new customer groups.

Our expanded product suite of treasury management services enables us to service these new customers.

Increased marketing and business development efforts have increased the depth of customer relationships.

As we move through the third year of our digital transformation, we are seeing our efforts bear fruit and expect progress to continue.

Strategic Actions.

The long-term success of our transition to a full-service bank is predicated on management's continued focus on deepening relationships with consumer and commercial customers.

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

Through our experienced relationship managers, we deliver customized solutions using advanced digital platforms and sophisticated cash management tools.

We are leveraging our centralized organizational structure to respond quickly to customers.

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

Commercial Lending.

During the first quarter of the current fiscal year, we closed on $364.6 million in commercial loans, compared to $263.1 million during the quarter ended September 30, 2025.

Commercial loans continue to grow as a percentage of our overall loan portfolio, comprising 28% of our loan portfolio at December 31, 2025, compared to 26% and 21% at September 30, 2025 and December 31, 2024, respectively.

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

The Bank utilizes commercial loan pricing and profitability software that provides insights on new lending opportunities based on the full customer banking relationship.

We utilize software that provides market intelligence regarding competitor pricing to assist loan officers when preparing a loan offering.

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

Treasury Management.

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

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

In fiscal year 2026, a team of business development officers is also tasked with growing the deposit base within the small business customer segment, focused on serving small businesses in our market areas with a dedicated line of products specifically designed for these customers.

Our treasury management officers and business development officers often land depository relationships independent of a lending relationship.

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

During the second quarter of fiscal year 2026, the Bank expects to introduce digital onboarding for small business customers using industry-leading risk management and screening tools, which will replace many manual verification tasks.

We are evaluating additional technology in order to capture a larger share of this business with even more products and services.

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

Digital Banking.

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

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

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

The Bank is taking advantage of fintech plug-in technologies that we expect will integrate into our digital banking experience for consumers, small businesses, and commercial customers.

Wealth Management.

We have begun to implement private wealth management products and services, with some customers on-boarded during the first quarter of the current fiscal year.

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

Private banking relationships are defined as customers with $5.0 million or more in personal relationships with the Bank by way of loans, deposits, or assets under management.

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

Stockholder Value.

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

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

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

During the first quarter of fiscal year 2026, the Company repurchased 2,376,633 shares for $16.3 million and paid regular quarterly cash dividends totaling $11.0 million, or $0.085 per share.

Since completing our second-step conversion in December 2010, we have returned $2.03 billion to stockholders through $1.58 billion in cash dividends and $456.2 million in share repurchases.

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

Financial Condition

The following table summarizes the Company's financial condition at the dates indicated.

Annualized Annualized

June 30, March 31, Percent September 30, Percent

2025 2025 Change 2024 Change

December 31, September 30, Percent

2025 2025 Change

(Dollars and shares in thousands)

6 unchanged sentences

Equity to total assets at end of period 10.6 % 10.7 %

Average number of basic shares outstanding 130,081 130,026 0.2 129,918 0.2

Average number of diluted shares outstanding 130,081 130,026 0.2 129,918 0.2

Loans receivable, net increased $147.6 million, or 7.5% annualized, during the current quarter.

The loan portfolio mix continued to shift from one- to four-family loans to commercial loans.

The commercial loan portfolio grew $243.5 million during the current quarter, due mainly to a $221.2 million increase in the commercial real estate portfolio, partially offset by a $99.3 million decrease in one- to four-family loans.

As of June 30, 2025, the Bank also had $146.2 million of commercial real estate loan commitments which are expected to fund early during the September 30, 2025 quarter.

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

In addition, the Bank suspended its one- to four-family correspondent lending channels during fiscal year 2024 for the foreseeable future.

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

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

Borrowings decreased $71.4 million, or 13.3% annualized, due to a $50.0 million borrowing that matured during the current quarter but was not replaced, along with principal payments made on the Bank's amortizing FHLB advances.

Deposits increased $58.6 million during the current quarter.

Commercial non-maturity deposits increased $44.7 million, or 14.3%, during the current quarter, to $358.0 million as of June 30, 2025, as management continues to find commercial deposit growth opportunities.

Management has also maintained its focus on retaining retail deposits through the Bank's high yield savings account product, which increased $123.9 million during the current quarter to $408.0 million at June 30, 2025.

The increase in high yield savings accounts was partially offset by a $49.7 million decrease in retail money market accounts and a $45.8 million decrease in retail certificates of deposits.

Average number of basic and diluted

shares outstanding 128,953 129,874 (2.8)

The loan portfolio increased $64.8 million during the current quarter, as cash flows from the securities portfolio were used to fund loan growth.

Commercial loans grew $162.6 million, mainly in the commercial real estate portfolio, partially offset by a $98.6 million decrease in one- to four-family loans.

Deposits increased $167.2 million during the current quarter, due mainly to the Bank's high yield savings account offering and retail checking accounts.

Borrowings decreased $120.9 million due to borrowings that matured during the current quarter and were not replaced, along with principal payments made on the Bank's amortizing FHLB advances.

Cash flows from the increase in the deposit portfolio were used to pay down borrowings.

Stockholders' equity decreased $6.4 million during the current quarter, due primarily to strategic share repurchases and dividend payments, partially offset by net income.

Loans Receivable.

The following table presents the balance and weighted average rate of our loan portfolio as of the dates indicated.

June 30, 2025 March 31, 2025 September 30, 2024

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

One- to four-family purchased loans in the following tables include correspondent purchased loans and bulk purchased loans.

December 31, 2025 September 30, 2025 December 31, 2024

Amount Rate Amount Rate Amount Rate

2 unchanged sentences

Originated $ 3,725,622 3.82 % $ 3,774,134 3.78 % $ 3,907,809 3.64 %

Correspondent purchased 2,058,749 3.49 2,117,232 3.48 2,212,587 3.48

Bulk purchased 116,706 3.30 119,914 3.09 127,161 2.80

Purchased 2,065,179 3.50 2,114,447 3.49 2,286,876 3.45

Construction 15,228 6.14 16,054 6.17 19,165 6.35

2 unchanged sentences

Commercial and industrial 219,909 6.74 210,119 6.92 131,267 6.66

Construction 165,760 6.39 191,904 6.12 187,676 6.40

Commercial construction 184,227 6.83 195,886 6.42 161,744 6.14

Total 2,278,642 5.93 2,115,995 5.98 1,646,493 5.64

14 unchanged sentences

The renewal balance and rate are included in the ending loan portfolio balance and rate.

For the Three Months Ended For the Nine Months Ended

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

Amount Rate Amount Rate Amount Rate

For the Three Months Ended

December 31, 2025 December 31, 2024

Amount Rate Amount Rate

(Dollars in thousands)

1 unchanged sentence

Originated and refinanced 376,869 6.40 265,731 6.76

Purchased and participations 22,689 6.91 92,479 7.13 34,212 7.94

Participations 83,520 6.37 69,790 7.21

Change in undisbursed loan funds (44,036) (36,990)

6 unchanged sentences

Loan originations, participations, and refinances are reported together.

For the Nine Months Ended

June 30, 2025 June 30, 2024

For the Three Months Ended

December 31, 2025 December 31, 2024

Amount Rate % of Total Amount Rate % of Total

16 unchanged sentences

364,601 6.45 79.2 241,276 7.08 71.9

One- to four-family and consumer:

One- to four-family

2 unchanged sentences

82,388 5.89 17.9 81,545 5.95 24.3

Home equity and other

Fixed-rate 1,959 8.15 0.4 2,144 8.25 0.6

1 unchanged sentence

13,400 7.99 2.9 12,700 8.28 3.8

Total consumer

One- to four-family and consumer

Fixed-rate 51,889 6.03 11.3 77,880 5.98 23.2

1 unchanged sentence

95,788 6.18 20.8 94,245 6.27 28.1

Total commercial and consumer

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

Fixed-rate 329,253 6.37 71.6 124,384 6.44 37.1

5 unchanged sentences

$ 83,520 6.37 $ 69,790 7.21

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

One- to Four-Family Loans - The following table presents, for our portfolio of one- to four-family loans, the amount, percent of total, weighted average rate, weighted average credit score, weighted average LTV, and average balance per loan as of December 31, 2025.

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

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

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

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

3 unchanged sentences

Originated $ 3,725,622 64.1 % 3.82 % 770 57 % $ 170

Correspondent purchased 2,058,749 34.2 3.49 767 61 394

Bulk purchased 116,706 2.0 3.30 773 53 275

Purchased 2,065,179 35.6 3.50 768 60 378

Construction 15,228 0.3 6.14 778 43 331

5,806,029 100.0 % 3.71 769 58 212

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

As of June 30, 2025, the Bank had one- to four-family loan and refinance commitments totaling $57.9 million at a weighted average rate of 6.45%.

For the Three Months Ended For the Nine Months Ended

June 30, 2025 June 30, 2025

Credit Credit

Amount Rate LTV Score Amount Rate LTV Score

The following table presents origination and refinance activity for our one- to four-family loan portfolio, excluding endorsement activity, along with the weighted average rate, weighted average LTV and weighted average credit score for the quarter ended December 31, 2025.

As of December 31, 2025, the Bank had one- to four-family loan and refinance commitments totaling $24.7 million at a weighted average rate of 5.97%.

Amount Rate LTV Score

(Dollars in thousands)

$ 82,388 5.89 % 73 % 764

Commercial Loans - The table below presents commercial loan origination and participation activity for the time periods presented, along with weighted average LTV and weighted average DSCR.

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

Commercial Loans - The table below presents commercial loan origination and participation activity for the quarter ended December 31, 2025, along with weighted average LTV and weighted average DSCR.

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

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

1 unchanged sentence

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

For the Three Months Ended June 30, 2025

Originated Participation Total Weighted Weighted

5 unchanged sentences

$ 281,081 6.48 $ 83,520 6.37 $ 364,601 6.45 72 2.52

For the Nine Months Ended June 30, 2025

Originated Participation Total Weighted Weighted

Amount Rate Amount Rate Amount Rate LTV DSCR

(Dollars in thousands)

Commercial real estate $ 305,448 6.91 % $ 35,726 7.02 % $ 341,174 6.92 % 55 % 1.68x

Commercial and industrial 145,061 7.34 900 7.25 145,961 7.34 N/A 2.23

Commercial construction 95,765 7.28 55,853 7.21 151,618 7.25 76 1.59

$ 546,274 7.09 $ 92,479 7.13 $ 638,753 7.10 61 1.79

The following table presents commercial loan disbursements, excluding lines of credit, during the nine months ended June 30, 2025.

The following table presents commercial loan disbursements, excluding lines of credit, during the periods indicated.

For the Three Months Ended

December 31, 2025 December 31, 2024

Amount Rate Amount Rate

(Dollars in thousands)

5 unchanged sentences

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

June 30, 2025 March 31, 2025 September 30, 2024

December 31, 2025 September 30,

2025 December 31,

Unpaid Undisbursed Gross Loan Gross Loan Gross Loan

13 unchanged sentences

Weighted average rate 5.84 % 6.68 % 5.95 % 5.99 % 5.75 %

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

June 30, 2025 March 31, 2025 September 30, 2024

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

2025 September 30,

2025 December 31,

(Dollars in thousands)

1 unchanged sentence

Owner occupied 161,736 167,925 166,147

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

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

The majority of the $146.2 million of commitments expected to fund early during the September 30, 2025 quarter are related to senior housing loans.

The following table presents management's funding expectations for the Bank's commercial real estate and commercial construction undisbursed amounts and commitments outstanding as of December 31, 2025.

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

Projected Disbursements for the Quarters Ending

2026 June 30,

2026 September 30,

2025 December 31,

2025 March 31,

2026 Thereafter Revolving Lines of Credit Total

4 unchanged sentences

Weighted average rate 6.65 % 6.73 % 6.71 % 6.72 % 6.91 % 6.71 %

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

June 30, 2025 March 31, 2025 September 30, 2024

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

December 31, 2025 September 30,

2025 December 31,

Unpaid Undisbursed Gross Loan Gross Loan Gross Loan

2 unchanged sentences

Kansas 542 $ 823,732 $ 86,977 $ 910,709 $ 799,827 $ 709,162

Texas 21 291,223 27,261 318,484 319,151 348,066

Missouri 120 310,295 41,926 352,221 354,772 305,835

Texas 20 246,508 54,841 301,349 312,805 330,283

Arizona 7 129,536 23,801 153,337 122,429 36,446

New York 2 110,000 — 110,000 60,000 60,000

California 6 94,325 16,207 110,532 96,848 81,451

New York 2 109,482 — 109,482 109,828 60,000

Colorado 13 60,920 23,024 83,944 84,199 60,805

Tennessee 3 37,671 13,940 51,611 56,781 40,782

Nebraska 6 11,227 27,139 38,366 38,658 32,422

Arkansas 2 29,475 — 29,475 36,322 36,588

Washington 2 51,200 — 51,200 — —

Other 35 195,064 49,365 244,429 212,421 188,815

750 $ 2,058,733 $ 310,081 $ 2,368,814 $ 2,149,910 $ 1,813,579

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

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

The LTV is calculated using the gross loan amount (composed of unpaid principal and undisbursed amounts) as of December 31, 2025 and the most current collateral value available, which is most often the value at origination/purchase.

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

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

Commercial loans that have an outstanding balance of $1.5 million or more or borrowing relationships with a total relationship exposure of $5.0 million or more are reviewed no less often than annually to monitor financial performance.

Kansas Texas Missouri New York Arizona California Other Total

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

Kansas Missouri Texas Arizona New York California Other Total

(Dollars in thousands)

4 unchanged sentences

Office building 60,153 7,747 452 136 — — 18,052 86,540

One- to four-family property 44,673 — 6,375 — 3,324 — 11,741 66,113

Warehouse/manufacturing 38,382 17,869 — — — — 6,718 62,969

One- to four-family property 42,110 4,264 — 2,248 — 1,620 11,563 61,805

Land 7,119 152 — — — — 26,737 34,008

4 unchanged sentences

Weighted DSCR 2.03x 1.51x 1.40x 1.42x 1.55x 1.50x 1.68x 1.73x

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

Unpaid Weighted Weighted Weighted

6 unchanged sentences

Office building 73 86,540 6.43 64 3.49

One- to four-family property 320 66,113 6.00 58 2.45

Warehouse/manufacturing 51 62,969 6.34 65 2.26

One- to four-family property 301 61,805 6.03 56 3.18

Land 24 34,008 6.24 71 4.19

2 unchanged sentences

750 $ 2,058,733 5.84 63 1.73

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

For loans over $50.0 million, there were $267.0 million related to hotels in Arizona, California, New York, and Texas, $143.1 million related to multi-family properties in Kansas, and $59.7 million related to an office building in Texas.

The following table presents the Bank's commercial real estate and construction loans, including unpaid principal and undisbursed amounts, along with outstanding loan commitments as of December 31, 2025, categorized by aggregate gross loan and commitment amount, along with average loan amount, weighted average rate, LTV, and DSCR.

For loans over $60.0 million, there was $152.2 million of such loans related to hotels in Arizona and California, $143.1 million related to multi-family properties in Kansas, and $69.6 million related to senior housing in Kansas.

The largest loan included in the table below was $86.0 million, which was fully disbursed as of December 31, 2025, and is collateralized by a hotel in Arizona.

and Commitment Average Weighted Weighted Weighted

8 unchanged sentences

>$5 to $10 million 37 262,319 7,090 5.71 70 2.57

$1 to $5 million 122 283,694 2,325 5.27 58 2.18

Less than $1 million 532 110,856 208 6.35 52 3.27

1 unchanged sentence

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

The commercial and industrial gross loan amount increased $96.6 million, or 52%, during the current quarter.

During the current quarter, the Bank originated three loans to two borrower relationships that accounted for $85.3 million of the increase in this portfolio.

Of the $281.2 million of commercial and industrial loans at June 30, 2025, 58%, or $164.5 million, had a gross loan balance of $5.0 million or more.

The largest commercial and industrial lending relationship at June 30, 2025 had a gross loan balance of $81.8 million, which represented 29% of the gross loan balance at June 30, 2025.

In addition, the Bank had three commercial and industrial loan commitments totaling $42.0 million, with a weighted average rate of 6.79%, at June 30, 2025, which are not reflected in the table below.

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

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

June 30, 2025 March 31,

2025 September 30,

Of the $285.4 million of commercial and industrial loans at December 31, 2025, 59%, or $168.2 million, had a gross loan balance of $5.0 million or more.

The largest commercial and industrial lending relationship at December 31, 2025 had a gross loan balance of $81.6 million, which represented 29% of the gross commercial and industrial loan balance at December 31, 2025.

The Bank had no commercial and industrial loan commitments at December 31, 2025.

Management anticipates growth in the commercial and industrial loan portfolio as the Bank advances its strategy to grow all aspects of commercial banking.

However, given the inherent characteristics of these loans, balances will likely fluctuate over time.

December 31, 2025 September 30,

2025 December 31,

Unpaid Undisbursed Gross Loan Gross Loan Gross Loan

2 unchanged sentences

Working capital 192 $ 101,869 $ 54,708 $ 156,577 $ 153,967 $ 86,186

Purchase equipment 68 46,902 8,744 55,646 23,019 15,457

Purchase/refinance business assets 48 49,586 306 49,892 49,805 42,066

Finance/lease vehicle 174 32,423 2,050 34,473 36,406 26,655

Purchase equipment 63 21,275 6,391 27,666 54,201 23,472

Other 19 14,756 2,059 16,815 7,508 8,143

1 unchanged sentence

Weighted average rate 6.74 % 6.80 % 6.75 % 6.97 % 6.83 %

The following table summarizes the Bank's commercial and industrial loans by state as of June 30, 2025.

The following table summarizes the Bank's commercial and industrial loans by the state in which the borrower is located, as of December 31, 2025.

Unpaid Undisbursed Gross Loan

2 unchanged sentences

Kansas $ 152,800 $ 60,796 $ 213,596

Arizona 11,923 — 11,923

Missouri 10,221 760 10,981

California 7,800 2,237 10,037

Utah 8,506 — 8,506

Texas 6,129 51 6,180

Ohio 9,785 215 10,000

Other 27,380 1,506 28,886

$ 219,909 $ 65,514 $ 285,423

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

For loans and commitments over $15.0 million, there were $79.7 million related to working capital loans in Kansas with a weighted DSCR of 1.63x and $30.6 million related to a loan to purchase equipment in Missouri with a DSCR of 1.56x.

The following table presents the Bank's commercial and industrial loan portfolio, including unpaid principal and undisbursed amounts, along with outstanding loan commitments as of December 31, 2025, categorized by aggregate gross loan and commitment amounts and average loan amount.

Both loans greater than $15.0 million related to working capital loans in Kansas.

The largest loan included in the table below was $36.0 million, of which $16.3 million was undisbursed as of December 31, 2025.

This loan is part of the $81.6 million commercial and industrial lending relationship mentioned above.

and Commitment Average

Count Amounts Amount

Count Amounts Amount DSCR

(Dollars in thousands)

Greater than $15 million 4 $ 110,268 $ 27,567

Greater than $15 million 2 $ 54,718 $ 27,359 1.56x

>$10 to $15 million 3 34,845 11,615 2.37

8 unchanged sentences

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

Of the loans 30 to 89 days delinquent at June 30, 2025, 71% were 59 days or less delinquent.

Loans Delinquent for 30 to 89 Days at:

June 30, March 31, September 30,

2025 2025 2024

Number Amount Number Amount Number Amount

Of the loans 30 to 89 days delinquent at December 31, 2025 and September 30, 2025, approximately 59% and 49%, respectively, were 59 days or less delinquent.

December 31, September 30,

Count Amount Count Amount

(Dollars in thousands)

1 unchanged sentence

Originated 83 $ 9,351 68 $ 7,338

Correspondent purchased 13 2,802 9 2,928 12 3,049

Bulk purchased 2 156 3 179 2 68

Purchased 21 5,767 13 3,221

Commercial real estate 6 2,584 7 1,236

5 unchanged sentences

The following table presents the Bank's nonaccrual loans and OREO at the dates indicated.

Non-performing assets consist of nonaccrual loans and OREO.

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

Nonaccrual loans are loans that are 90 or more days delinquent or in foreclosure and other loans required to be reported as nonaccrual pursuant to accounting and/or regulatory reporting requirements and/or internal policies, even if the loans are current.

Nonaccrual loans are loans that are 90 or more days delinquent or in foreclosure and other loans required to be reported as nonaccrual pursuant to the Bank's internal policies, even if the loans are current.

At all dates presented, there were no loans 90 or more days delinquent that were still accruing interest.

Non-performing assets include nonaccrual loans and OREO.

The increase in nonaccrual commercial real estate loans as of June 30, 2025 was due primarily to two participation loans related to the same borrowing relationship that were moved to substandard during the current quarter.

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

Nonaccrual Loans and OREO at:

June 30, March 31, September 30,

2025 2025 2024

Number Amount Number Amount Number Amount

December 31, September 30,

Count Amount Count Amount

(Dollars in thousands)

2 unchanged sentences

Originated 29 $ 3,223 29 $ 2,754

Correspondent purchased 5 1,741 7 1,965 8 4,024

Bulk purchased 1 134 3 620 5 1,535

Purchased 6 1,469 6 1,524

Commercial real estate 12 3,358 11 3,123

13 unchanged sentences

2 $ 291 1 $ 62

1 92 — — 1 55

Consumer 1 135 1 135

Total non-performing assets 71 $ 49,308 65 $ 48,260

Non-performing assets as a percentage of total assets 0.50 % 0.11 % 0.11 %

Non-performing assets as a percentage

of total assets 0.50 % 0.49 %

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

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

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

The following table presents the states where the properties securing ten percent or more of the total amount of the Bank's one- to four-family loans, excluding construction loans, are located and the corresponding balance of loans 30 to 89 days delinquent, 90 or more days delinquent or in foreclosure, and weighted average LTV for loans 90 or more days delinquent or in foreclosure at December 31, 2025.

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

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

7 unchanged sentences

$ 5,806,029 100.0 % $ 15,118 100.0 % $ 4,692 100.0 % 47

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

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

The following table presents the unpaid principal balance of commercial real estate loans, aggregated by state, that were 30 to 89 days delinquent or 90 or more days delinquent or in foreclosure, and the weighted average LTV and weighted average DSCR for loans 90 or more days delinquent or in foreclosure at December 31, 2025.

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

Loans 30 to 89 Loans 90 or More Days Delinquent

3 unchanged sentences

Kansas $ 333 12.9 % $ 3,142 93.6 % 48 % 2.51x

Missouri 2,251 87.1 — — — —

Other states — — 216 6.4 41 1.84

2 unchanged sentences

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

The increase in commercial real estate substandard loans at June 30, 2025 compared to March 31, 2025 was due mainly to two participation loans related to the same borrowing relationship, totaling $40.2 million as of June 30, 2025 and secured by a hotel.

The borrower is working on a recapitalization plan, which is anticipated to be completed later in calendar year 2025, and the Bank entered into an agreement with the borrower during the current quarter which allows the borrower to not make payments during this period.

Therefore, these loans were considered nonaccrual at June 30, 2025 and classified as substandard.

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

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

The increase in commercial real estate substandard loans since September 30, 2024 has been related to the $40.2 million of participation loans discussed above, along with another $38.9 million participation loan also secured by a hotel.

In regard to the $38.9 million participation loan, the property is taking longer than anticipated to stabilize and the borrower is not meeting the debt service coverage loan covenant required by the loan agreement.

The borrower projects improved occupancy and cash flow during the remainder of calendar year 2025 and expects to be fully stabilized during calendar year 2026.

As of June 30, 2025, the loan was not delinquent and the Bank LTV was 47% based on an appraisal completed approximately two years ago.

The Bank has had a participation relationship with the lead bank for all three commercial real estate substandard participation loans discussed above for ten years, and the Bank holds the same percentage interest in these loans as the lead bank.

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

Both borrower groups (developers, owners and guarantors) are seasoned commercial real estate developers with over 40 years of experience each.

These loans were individually evaluated for loss as of June 30, 2025.

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

June 30, 2025 March 31, 2025 September 30, 2024

Special Mention Substandard Special Mention Substandard Special Mention Substandard

The decrease in commercial real estate special mention loans at December 31, 2025 compared to September 30, 2025 was due mainly to a $36.1 million hotel participation loan being upgraded to pass, due to an improvement in the hotel's financial results.

December 31, 2025 September 30, 2025

Special Mention Substandard Special Mention Substandard

(Dollars in thousands)

7 unchanged sentences

Expected credit losses are determined by calculating projected future loss rates, which are dependent upon forecasted economic indices, and applying qualitative factors when deemed appropriate by management.

At June 30, 2025, management applied qualitative factors 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.

At December 31, 2025, management applied qualitative factors 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.

In order to model the probabilities of default used in the discounted cash flow model, the model pairs the results of a regression analysis with an economic forecast for each loan pool in the model.

The regression analyses are determined by comparing historical loss rates to related economic indices.

The historical loss rates are determined by using the Company's historical loss experience, or peer data when the Company's own historical loss rates are not reflective of future loss expectations.

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

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

Management applied a qualitative factor for large dollar commercial real estate loan concentrations.

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 portfolios might be unlikely;

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

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

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

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

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

See "Part II, Item 8.

3 unchanged sentences

The distribution of our ACL and the ratio of ACL to loans receivable, by loan type, at the dates indicated is summarized below.

The decrease in the ratio of the ACL to total loans as of June 30, 2025 from March 31, 2025 was due primarily to a decrease in the commercial real estate ACL to total loans.

The changes in the commercial ratios in the current quarter from the prior quarters were due primarily to the regression analyses update discussed above.

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

The decrease in the commercial ACL to loans receivable ratio as of December 31, 2025, compared to September 30, 2025, was primarily driven by changes in the composition of the commercial and industrial and commercial construction loan portfolios.

These shifts affected the weighted average lives of the respective portfolios, which in turn influenced the discounted cash flow results compared to September 30, 2025.

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

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

Distribution of ACL Ratio of ACL to Loans Receivable

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

December 31, September 30, December 31, September 30,

2025 2025 2025 2025

2 unchanged sentences

Originated $ 1,622 $ 1,730 0.04 % 0.05 %

Correspondent purchased 1,451 1,446 1,861 0.07 0.07 0.08

Bulk purchased 114 121 146 0.10 0.10 0.11

Purchased 1,203 1,298 0.06 0.06

Construction 17 18 0.11 0.11

Total 3,532 3,562 3,673 0.06 0.06 0.06

Real estate 14,362 16,998 15,719 0.92 1.27 1.32

One- to four-family 2,842 3,046 0.05 0.05

Commercial real estate 16,825 15,809 0.90 0.92

Commercial and industrial 1,826 2,499 0.83 1.19

Construction 2,236 2,007 2,249 1.35 1.05 1.20

Total 19,039 20,176 19,154 1.00 1.21 1.27

Commercial construction 2,871 2,468 1.56 1.26

Total commercial 21,522 20,776 0.94 0.98

Consumer 208 217 0.18 0.19

2 unchanged sentences

Over the past two years, the Bank's highest ratio of commercial loans 90 days or more delinquent to total commercial loans at a quarter end was 0.22%.

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

The amount of total NCOs during the current quarter and current year period was $25 thousand and $132 thousand, respectively.

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

During the 10-year period ended June 30, 2025, the Bank recognized $1.1 million of total NCOs.

As of June 30, 2025, the ACL balance was $22.8 million and the reserve for off-balance sheet credit exposures totaled $6.3 million, which management believes is adequate for the credit risk characteristics in our loan portfolio.

The highest such ratio for one- to four-family loans was 0.12%.

Total NCOs during the current quarter were $119 thousand.

During the 10-year period ended December 31, 2025, the Bank recognized $875 thousand of total NCOs.

As of December 31, 2025, the ACL balance was $24.6 million and the reserve for off-balance sheet credit exposures totaled $6.0 million, which management believes is adequate for the credit risk characteristics in our loan portfolio.

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

On October 1, 2023, the Bank adopted ASU 2022-02, Financial Instruments - Credit Losses (Topic 326):

Troubled Debt Restructurings and Vintage Disclosures ("ASU 2022-02"), which eliminated the accounting guidance for troubled debt restructurings by creditors.

The Company applied a modified retrospective approach when adopting ASU 2022-02, resulting in a cumulative-effect adjustment which is reflected in the table below ("ASU 2022-02 Adoption").

At or For the Nine Months Ended

June 30, 2025 June 30, 2024

At or For the Three Months Ended

December 31, 2025 December 31, 2024

(Dollars in thousands)

Balance at beginning of period $ 24,039 $ 23,035

ASU 2022-02 Adoption 20

Charge-offs (123) (17)

7 unchanged sentences

ACL to loans receivable, net at end of period 0.30 0.31

ACL at end of period to NCOs during the period (annualized) 129x 332x

The ratio of NCOs to average non-performing assets was lower at June 30, 2025 compared to June 30, 2024, due to an increase in average non-performing assets in the current year period compared to the prior year period, which was partially offset by higher NCOs.

As noted above, the majority of the NCOs in the current year period related to one single-family bulk purchased loan and the increase in average non-performing assets was due primarily to two commercial participation loans that were nonaccrual at June 30, 2025, as discussed above, and thereby considered non-performing assets.

The ratio of ACL to nonaccrual loans was lower at the end of the current year period compared to the end of the prior year period due mainly to a higher balance of nonaccrual loans in the current year period compared to the prior year period, largely related to two commercial participation loans that were nonaccrual at June 30, 2025 as discussed above, along with a lower ACL balance at June 30, 2025.

The ratio of ACL to loans receivable, net was lower at the end of the current year period compared to the end of the prior year period due primarily to a reduction in the ACL/loan ratio for commercial real estate loans due mainly to the regression analyses update discussed above.

See "Part I, Item 1.

Loans Receivable and Allowance for Credit Losses" within this Quarterly Report on Form 10-Q for additional information related to ACL activity by specific loan categories.

ACL at the end of period to NCOs during the period (annualized) was lower compared to the prior year period, due primarily to higher NCOs in the current year period, partially offset by a lower ACL balance at June 30, 2025.

ACL at end of period to NCOs during the period (annualized) 52x N/M (1)

(1) This ratio is not presented due to loan recoveries exceeding loan charge-offs during the period.

The ratio of NCOs to average non-performing assets was positive this quarter, compared to a negative ratio in the prior year quarter, due to a NCO this quarter versus a net recovery in the prior year quarter.

The ratio of ACL to nonaccrual loans was lower at the end of the current quarter compared to the prior year quarter due to a higher balance of nonaccrual loans at December 31, 2025.

The decrease in the ratio of the ACL to total loans as of December 31, 2025 from December 31, 2024 was due primarily to the regression analysis update that occurred in the second half of the prior fiscal year, partially offset by the changes in the loan portfolio mix due to continued growth in commercial loans, which have a higher ACL to loan ratio than one- to four-family loans.

See Part II, Item 7.

Management's Discussion and Analysis of Financial Condition and Results of Operations - Critical Accounting Estimates" in the Company's Annual Report on Form 10-K for the fiscal year ended September 30, 2025 for additional information on the regression analysis update that occurred in the prior fiscal year.

Additional information related to ACL activity by specific loan categories for the current period can be found in "Part I, Item 1.

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

Loans Receivable and Allowance for Credit Losses" within this Quarterly Report on Form 10-Q.

The following table presents NCOs, average loans, and NCOs as a percentage of average loans, by loan type, for the periods indicated.

For the Nine Months Ended

June 30, 2025 June 30, 2024

For the Three Months Ended

December 31, 2025 December 31, 2024

NCOs Average Loans % of Average Loans NCOs Average Loans % of Average Loans

2 unchanged sentences

Originated $ — $ 3,732,553 — % $ (3) $ 3,905,333 — %

Correspondent — 2,164,263 — — 2,367,032 —

Bulk purchased 113 122,228 0.09 — 133,783 —

Purchased — 2,113,076 — — 2,338,395 —

Construction — 15,468 — — 20,094 —

Total — 5,861,098 — (3) 6,263,822 —

Real estate (20) 1,379,009 — 60 1,038,727 0.01

Commercial real estate — 1,776,342 — (19) 1,304,100 —

Commercial and industrial 100 215,211 0.05 (1) 131,021 —

Construction — 174,518 — — 188,090 —

Commercial construction — 198,300 — — 171,627 —

Total 100 2,189,853 — (20) 1,606,748 —

8 unchanged sentences

The majority of our securities are government guaranteed or issued by GSEs.

Overall, fixed-rate securities comprised 92% of our securities portfolio at June 30, 2025.

The weighted average life ("WAL") is the estimated remaining maturity (in years) after three month historical prepayment speeds and projected call option assumptions have been applied.

Overall, fixed-rate securities comprised 91% of our securities portfolio at December 31, 2025.

The WAL is the estimated remaining maturity (in years) after three-month historical prepayment speeds and projected call option assumptions have been applied.

Weighted average yields on tax-exempt securities are not calculated on a fully tax-equivalent basis.

June 30, 2025 March 31, 2025 September 30, 2024

Amount Yield WAL Amount Yield WAL Amount Yield WAL

December 31, 2025 September 30, 2025

Amount Yield WAL Amount Yield WAL

(Dollars in thousands)

MBS $ 805,099 5.48 % 4.1 $ 843,369 5.45 % 4.8

GSE debentures 55,000 5.16 5.3 70,000 5.25 2.5 69,077 5.63 0.4

Corporate bonds 4,000 5.12 6.4 4,000 5.12 6.6

$ 809,099 5.48 4.1 $ 847,369 5.45 4.8

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

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

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

The beginning and ending WALs are the estimated remaining principal repayment terms (in years) after three-month historical prepayment speeds and projected call option assumptions have been applied.

For the Nine Months Ended

June 30, 2025 June 30, 2024

For the Three Months Ended

December 31, 2025 December 31, 2024

Amount Yield WAL Amount Yield WAL

2 unchanged sentences

Maturities and repayments (40,956) (51,574)

Proceeds from sale — (1,272,512)

Net amortization of (premiums)/discounts 838 876

Purchases 1,848 6.64 3.1 71,416 4.89 6.7

Net loss from securities sales — (13,345)

Change in valuation on AFS securities 758 (15,483)

Ending balance - carrying value $ 829,704 5.48 4.1 $ 861,501 5.62 4.8

Total liabilities were $8.65 billion at June 30, 2025, compared to $8.50 billion at September 30, 2024.

The increase was due primarily to a $301.2 million increase in deposits, partially offset by a $108.0 million decrease in borrowings due to principal payments made on the Bank's amortizing advances, along with borrowings that matured but were not replaced.

Total liabilities were $8.74 billion at December 31, 2025, compared to $8.73 billion at September 30, 2025.

The $6.1 million increase was due primarily to a $167.2 million increase in deposits, partially offset by a $120.9 million decrease in borrowings and a $36.9 million decrease in advances by borrowers due to the timing of semi-annual real estate payments.

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

The decrease in the deposit portfolio rate at June 30, 2025 compared to March 31, 2025 and September 30, 2024 was due mainly to lower rates on retail certificates of deposit.

June 30, 2025 March 31, 2025 September 30, 2024

The increase in deposits from September 30, 2025 was due mainly to a $96.8 million increase in the Bank's high yield savings account offering and a $54.8 million increase in retail checking accounts.

The decrease in the deposit portfolio rate at December 31, 2025 compared to September 30, 2025 and December 31, 2024 was due mainly to lower rates on retail certificates of deposit.

December 31, 2025 September 30, 2025 December 31, 2024

% of % of % of

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

Total deposits increased $301.2 million, or 4.9%, from September 30, 2024.

The increase was primarily in retail non-maturity deposits which increased $246.6 million, or 8.5%, due mainly to an increase in high yield savings accounts, along with a $98.3 million, or 37.8%, increase in commercial non-maturity deposits, and a $40.2 million, or 52.5%, increase in public unit certificates from September 30, 2024.

The increases noted above were partially offset by an $85.4 million, or 3.0%, decrease in retail certificates of deposit from September 30, 2024.

June 30, 2025 March 31, 2025 September 30, 2024

December 31, 2025 September 30, 2025 December 31, 2024

% of % of % of

21 unchanged sentences

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

June 30, 2025 March 31, 2025 September 30, 2024

December 31, 2025 September 30, 2025 December 31, 2024

% of % of % of

5 unchanged sentences

$ 6,758,632 2.18 100.0 % $ 6,591,448 2.26 100.0 % $ 6,206,117 2.34 100.0 %

As of June 30, 2025, approximately $899.4 million (or approximately 14%) of the Bank's Call Report deposit balance was uninsured, of which approximately $509.4 million (or approximately 8% of the Bank's Call Report deposit balance) related to commercial and retail deposit accounts, with the remainder mainly comprised of fully collateralized public unit deposits and intercompany accounts.

As of December 31, 2025, approximately $776.8 million (or approximately 11%) of the Bank's Call Report deposit balance was uninsured, of which approximately $599.4 million (or approximately 9% of the Bank's Call Report deposit balance) related to commercial and retail deposit accounts, with the remainder mainly comprised of fully collateralized public unit deposits and intercompany accounts.

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

Total borrowings at June 30, 2025 were $2.07 billion, which was comprised of $1.87 billion in fixed-rate FHLB advances, $200.0 million in FHLB variable-rate advances tied to interest rate swaps, and $1.1 million in finance leases.

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

Amortizing FHLB advances totaling $297.2 million as of June 30, 2025 are presented based on their maturity dates versus their quarterly scheduled repayment dates.

Total borrowings at December 31, 2025 were $1.83 billion, which was comprised of $1.73 billion in fixed-rate FHLB advances, $100.0 million in variable-rate FHLB advances tied to an interest rate swap, and $1.1 million in finance leases.

Borrowings decreased $120.9 million from September 30, 2025 due to the maturity of $100.0 million in borrowings during the current quarter that were not replaced, along with principal payments made on the Bank's amortizing FHLB advances.

Cash flows from the increase in the deposit portfolio were used to pay down the borrowings portfolio during the current quarter.

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

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

The following table presents the maturity of term borrowings, which consist of FHLB advances, along with the associated weighted average contractual and effective rates as of December 31, 2025.

Amortizing FHLB advances totaling $254.8 million are presented based on their maturity dates versus their quarterly scheduled repayment dates.

Maturity by Contractual Effective

7 unchanged sentences

$ 1,829,816 3.64 3.65

$ 2,072,152 3.60 3.52

(1) The effective rate includes the impact of interest rate swaps and the amortization of deferred prepayment penalties resulting from FHLB advances previously prepaid.

(1) The effective rate includes the impact of the interest rate swap and the amortization of deferred prepayment penalties resulting from FHLB advances previously prepaid.

The following table presents borrowing activity for the periods shown.

The borrowings presented in the table have original contractual terms of one year or longer or are tied to interest rate swaps with original contractual terms of one year or longer.

The borrowings presented in the table have original contractual terms of one year or longer or are tied to the interest rate swap which has an original contractual term longer than one year.

Line of credit borrowings and finance leases are excluded from the table.

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

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

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

The beginning and ending WAMs represent the remaining maturity as of the first and last days of the period presented.

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

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

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

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

This activity is reflected in the table below.

During the prior year period, Federal Reserve's Bank Term Funding Program ("BTFP") borrowings were paid off with a portion of the proceeds received from the securities strategy.

For the Three Months Ended For the Nine Months Ended

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

Effective Effective Effective

Amount Rate WAM Amount Rate WAM Amount Rate WAM

For the Three Months Ended

December 31, 2025 December 31, 2024

Effective Effective

Amount Rate WAM Amount Rate WAM

(Dollars in thousands)

2 unchanged sentences

New FHLB borrowings 50,000 3.64 2.0 200,000 4.27 3.7

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

Ending balance $ 1,829,816 3.65 1.4 $ 2,164,488 3.37 1.6

Maturities of Interest-Bearing Liabilities.

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

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

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

2026 2026 2026 2026 Total

11 unchanged sentences

Repricing Rate 3.31 % 3.59 % 3.67 % 3.80 % 3.62 %

The following table sets forth the WAM information for our certificates of deposit, in years, as of June 30, 2025.

The following table sets forth the WAM information for our certificates of deposit, in years, as of December 31, 2025.

Retail certificates of deposit 0.8

3 unchanged sentences

Stockholders' Equity.

Stockholders' equity totaled $1.05 billion at June 30, 2025, an increase of $13.9 million from September 30, 2024.

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

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

Stockholders' equity totaled $1.04 billion at December 31, 2025.

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

As of December 31, 2025, the Bank's capital ratios exceeded the well-capitalized requirements, and the Bank exceeded internal policy thresholds for sensitivity to changes in interest rates.

As of December 31, 2025, the Bank's CBLR was 9.5%.

See "Liquidity and Capital Resources" below for additional information regarding the Bank's regulatory capital requirements.

As of June 30, 2025, the Bank's CBLR was 9.7%.

During the nine months ended June 30, 2025, the Company paid regular quarterly cash dividends totaling $33.2 million, or $0.255 per share.

On July 22, 2025, the Company announced a regular quarterly cash dividend of $0.085 per share, or approximately $11.1 million, payable on August 15, 2025 to stockholders of record as of the close of business on August 1, 2025.

At June 30, 2025, Capitol Federal Financial, Inc., at the holding company level, had $16.1 million in cash on deposit at the Bank.

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

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

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

Through the payment of the True Blue dividend in prior years, the Company was able to reduce its excess capital.

Management and the Board of Directors believe that the current capital levels are appropriate.

The last True Blue dividend occurred in fiscal year 2022.

It has been the intention of management and the Board of Directors to not make distributions from the Bank to the Company during fiscal year 2025 to limit the tax associated with the pre-1988 bad debt recapture which is related to the Bank's tax accumulated earnings and profits.

It is currently anticipated that the Bank will have sufficient taxable income during fiscal year 2025 to replenish the Bank's tax accumulated earnings and profits to a positive level, allowing the Bank to make earnings distributions to the Company during fiscal year 2026 and not have those distributions subject to the pre-1988 bad debt recapture tax.

The Company currently has $75.0 million authorized under an existing stock repurchase plan.

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

This plan has no expiration date;

however, the FRB's current approval for the Company to repurchase shares expires in February 2026.

There were no share repurchases during the current year period.

Because the cash at the holding company is limited based on our capital management plan, the Company does not expect to repurchase shares until such time that the holding company has a sufficient cash balance.

During the quarter ended December 31, 2025, the Company repurchased 2,376,633 shares of common stock at an average price of $6.86 per share, or $16.3 million in total.

Subsequent to December 31, 2025 and through February 4, 2026, the Company repurchased 108,000 shares at an average price of $7.51 per share.

The Company currently has 54.0 million remaining authorized under its existing stock repurchase plan.

The Company intends to continue to opportunistically repurchase stock from time to time based upon market conditions, available liquidity and other factors.

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

The Company has notified the FRB of its intent to extend the stock repurchase plan another year.

During the quarter ended December 31, 2025, the Company paid regular quarterly cash dividends totaling $11.0 million, or $0.085 per share.

On December 17, 2025, the Company announced a special cash dividend of $0.04 per share, or approximately $5.1 million, which was paid on January 23, 2026 to stockholders of record as of the close of business on January 9, 2026.

On January 27, 2026, the Company announced a regular quarterly cash dividend of $0.085 per share, or approximately $10.8 million, payable on February 20, 2026 to stockholders of record as of the close of business on February 6, 2026.

The special cash dividend, in addition to the Company's history of regular quarterly dividends and opportunistic share repurchases, demonstrates the Company's multi-channel focus on delivering stockholder value through disciplined capital allocation which balances investments in the future of the Company while simultaneously pursuing incremental opportunities to return capital to stockholders.

For the remainder of fiscal year 2026, it is the intention of the Company's Board of Directors to pay out a regular quarterly cash dividend of $0.085 per share, totaling $0.34 per share for the year.

Dividend payments depend upon a number of factors, including the Company's financial condition and results of operations, regulatory capital compliance, regulatory limitations on the Bank's ability to

make capital distributions to the Company, the Bank's current tax earnings and accumulated earnings and profits, and the amount of cash at the holding company level.

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

Since our second-step conversion in December 2010 through December 31, 2025, we have returned $2.03 billion in capital to stockholders through dividends totaling $1.58 billion and stock repurchases totaling $456.2 million.

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

At December 31, 2025, Capitol Federal Financial, Inc., at the holding company level, had $14.9 million in cash on deposit at the Bank.

During the quarter ended December 31, 2025, the Bank distributed $25.0 million from the Bank to the Company.

The Bank is expected to continue to have a positive tax accumulated earnings and profit balance during fiscal year 2026, so it is anticipated that the Bank will be in a position to make earnings distributions to the Company during fiscal year 2026.

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

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

The amount of cash available for share repurchases and for dividends in excess of the Board's and management's current intention of $0.085 per share per quarter is limited to the earnings distributed from the Bank to the Company less the amount of dividends paid as well as the need to replenish the cash balance at the holding company level to be in compliance with Board policies

The following table presents regular quarterly cash dividends and special cash dividends paid in calendar years 2026, 2025, and 2024.

The amounts represent cash dividends paid during each period.

For the quarter ended September 30, 2025, the amount presented represents the dividend payable on August 15, 2025 to stockholders of record as of the close of business on August 1, 2025.

The amounts represent cash dividends paid during each period shown.

For the quarter ending March 31, 2026, the amount presented represents the estimated dividend payable on February 20, 2026 to stockholders of record as of the close of business on February 6, 2026.

Calendar Year

7 unchanged sentences

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

Special dividends paid 5,094 0.040 — — — —

Calendar year-to-date dividends paid $ 15,920 $ 0.125 $ 44,208 $ 0.340 $ 44,275 $ 0.340

2 unchanged sentences

For the Three Months Ended

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

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

2025 2025 2025 2025 2024

3 unchanged sentences

MBS 11,341 11,808 12,163 11,264 11,024

FHLB stock 2,197 2,285 2,352 2,418 2,477

Cash and cash equivalents 2,773 2,148 1,620 2,729 1,871

FHLB stock 2,032 2,163 2,197 2,285 2,352

Investment securities 51 582 784 1,030 981

1 unchanged sentence

Interest expense:

Borrowings 18,360 18,482 18,047 18,585 18,438

Deposits 37,500 37,204 35,860 35,853 37,345

Borrowings 17,172 18,057 18,360 18,482 18,047

Total interest expense 54,672 55,261 54,220 54,335 55,392

11 unchanged sentences

Diluted EPS 0.16 0.14 0.14 0.12 0.12

Comparison of Operating Results for the Three Months Ended June 30, 2025 and March 31, 2025

For the quarter ended June 30, 2025, the Company recognized net income of $18.4 million, or $0.14 per share, compared to net income of $15.4 million, or $0.12 per share, for the quarter ended March 31, 2025.

The higher net income in the current quarter was due primarily to higher net interest income and lower tax expense.

The net interest margin increased six basis points, from 1.92% for the prior quarter to 1.98% for the current quarter due mainly to an increase in the average balance of commercial loans as the loan portfolio continued to shift from one- to four-family loans to commercial loans.

Interest and Dividend Income

The following table presents the components of interest and dividend income for the time periods presented, along with the change measured in dollars and percent.

For the Three Months Ended

June 30, March 31, Change Expressed in:

2025 2025 Dollars Percent

(Dollars in thousands)

INTEREST AND DIVIDEND INCOME:

Loans receivable $ 82,914 $ 80,867 $ 2,047 2.5 %

MBS 12,163 11,264 899 8.0

FHLB stock 2,197 2,285 (88) (3.9)

Cash and cash equivalents 1,620 2,729 (1,109) (40.6)

Investment securities 784 1,030 (246) (23.9)

Total interest and dividend income $ 99,678 $ 98,175 $ 1,503 1.5

The increase in interest income on loans receivable was due mainly to an increase in the average balance of the commercial loan portfolio as the loan portfolio continued to shift from one-to four-family loans to commercial loans.

See additional discussion regarding the composition of the loan portfolio and management's strategy to shift from one- to four-family loans to commercial loans in the "Executive Summary" section above.

The increase in interest income on MBS was due to a higher average balance compared to the prior quarter due to securities purchases between periods.

The decrease in interest income on cash and cash equivalents was due to a decrease in the average balance as operating cash was utilized during the current quarter to accommodate funding needs for commercial loan activities and to repay borrowings.

The decrease in interest income on investment securities was due mainly to a lower average balance compared to the prior quarter, primarily as a result of investments that matured or were called and not replaced.

Interest Expense

The following table presents the components of interest expense for the time periods presented, along with the change measured in dollars and percent.

For the Three Months Ended

June 30, March 31, Change Expressed in:

2025 2025 Dollars Percent

(Dollars in thousands)

INTEREST EXPENSE:

Deposits $ 35,860 $ 35,853 $ 7 — %

Borrowings 18,360 18,482 (122) (0.7)

Total interest expense $ 54,220 $ 54,335 $ (115) (0.2)

Within the deposit portfolio, the increased interest expense associated with the Bank's high yield savings account, which was the result of growth in these accounts, was almost entirely offset by a decrease in the cost of retail certificates of deposits due to a decrease in the weighted average rate and balance of that portfolio.

Management has continued to focus on retaining and growing deposits through its high yield savings account product.

See additional discussion in "Financial Condition - Deposits" above.

Provision for Credit Losses

The Company recorded a release of provision for credit losses of $451 thousand during the current quarter.

The release was comprised of a $1.1 million decrease in the ACL for loans, partially offset by a $686 thousand increase in the reserve for off-balance sheet credit exposures.

The $1.1 million decrease in the ACL was mainly related to the commercial loan portfolio as the increase in ACL related to growth in this portfolio was more than offset by an update to the ACL model's regression analyses implemented during the current quarter which also mainly impacted the commercial loan portfolio.

See additional details in the "Financial Condition - Allowance for Credit Losses" discussion above.

The increase in the reserve for off-balance sheet credit exposures was due primarily to an increase in commercial and industrial off-balance sheet credit exposures.

The Company did not record a provision for credit losses during the prior quarter as the decrease in the ACL was entirely offset by the increase in the reserve for off-balance sheet credit exposures.

Non-Interest Income

The following table presents the components of non-interest income for the time periods presented, along with the change measured in dollars and percent.

For the Three Months Ended

June 30, March 31, Change Expressed in:

2025 2025 Dollars Percent

(Dollars in thousands)

NON-INTEREST INCOME:

Deposit service fees $ 2,867 $ 2,596 $ 271 10.4 %

Insurance commissions 884 927 (43) (4.6)

Other non-interest income 1,537 1,430 107 7.5

Total non-interest income $ 5,288 $ 4,953 $ 335 6.8

The increase in deposit service fees was due primarily to an increase in debit card usage, which generated additional interchange and service charge income in the current quarter.

Non-Interest Expense

The following table presents the components of non-interest expense for the time periods presented, along with the change measured in dollars and percent.

For the Three Months Ended

June 30, March 31, Change Expressed in:

2025 2025 Dollars Percent

(Dollars in thousands)

NON-INTEREST EXPENSE:

Salaries and employee benefits $ 15,277 $ 14,938 $ 339 2.3 %

Information technology and related expense 5,163 4,924 239 4.9

Occupancy, net 3,270 3,502 (232) (6.6)

Regulatory and outside services 1,261 1,469 (208) (14.2)

Federal insurance premium 1,072 1,095 (23) (2.1)

Advertising and promotional 1,453 760 693 91.2

Deposit and loan transaction costs 715 879 (164) (18.7)

Office supplies and related expense 370 437 (67) (15.3)

Other non-interest expense 983 1,536 (553) (36.0)

Total non-interest expense $ 29,564 $ 29,540 $ 24 0.1

The increase in advertising and promotional expense was due primarily to the timing of seasonal sponsorships and campaigns compared to the prior quarter.

The decrease in other non-interest expense was due primarily to lower customer fraud losses in the current quarter, along with lower costs associated with a loss on a property acquired in 2018, which was sold during the prior quarter, and OREO property.

The Company's efficiency ratio was 58.26% for the current quarter compared to 60.54% for the prior quarter.

The improvement in the efficiency ratio was due to higher net interest income during the current quarter.

The efficiency ratio is a measure of a financial institution's total non-interest expense as a percentage of the sum of net interest income (pre-provision for credit losses) and non-interest income.

A lower value generally indicates that it is costing the financial institution less money to generate revenue.

The Company's operating expense ratio (annualized) for the current quarter was 1.23%, unchanged from the prior quarter.

Income Tax Expense

The following table presents pretax income, income tax expense, and net income for the time periods presented, along with the change measured in dollars and percent and the effective tax rate.

For the Three Months Ended

June 30, March 31, Change Expressed in:

2025 2025 Dollars Percent

(Dollars in thousands)

Income before income tax expense $ 21,633 $ 19,253 $ 2,380 12.4 %

Income tax expense 3,251 3,854 (603) (15.6)

Net income $ 18,382 $ 15,399 $ 2,983 19.4

Effective Tax Rate 15.0 % 20.0 %

During the current quarter, 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, though a large amount of its revenue generating activities, predominantly loan interest income, are outside of Kansas.

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

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

The Bank recorded an $857 thousand reduction in net state income tax expense related to this law change, which is the primary reason for the lower effective tax rate and income tax expense for the current quarter as compared to the prior quarter.

Management anticipates the effective tax rate for fiscal year 2025 will be 18% to 19% which is lower than was originally expected primarily due to the Kansas law change.

Average Balance Sheet

Average Balance Sheets

The following table presents the average balances of our assets, liabilities, and stockholders' equity, and the related annualized weighted average yields and rates on our interest-earning assets and interest-bearing liabilities for the periods indicated, as well as selected performance ratios and other information for the periods shown.

2 unchanged sentences

The weighted average yields and rates include amortization of fees, costs, premiums and discounts, which are considered adjustments to yields/rates.

Weighted average yields on tax-exempt securities are not calculated on a fully taxable equivalent basis.

For the Three Months Ended

June 30, 2025 March 31, 2025

Average Interest Average Interest

Outstanding Earned/ Yield/ Outstanding Earned/ Yield/

Amount Paid Rate Amount Paid Rate

December 31, 2025 September 30, 2025 December 31, 2024

Average Interest Average Interest Average Interest

Outstanding Earned/ Yield/ Outstanding Earned/ Yield/ Outstanding Earned/ Yield/

Amount Paid Rate Amount Paid Rate Amount Paid Rate

(Dollars in thousands)

2 unchanged sentences

Originated $ 3,748,022 $ 36,490 3.89 % $ 3,794,781 $ 36,521 3.85 % $ 3,925,427 $ 36,375 3.71 %

Correspondent purchased 2,114,381 17,434 3.30 2,165,595 17,788 3.29

Bulk purchased 118,487 1,020 3.44 122,058 1,044 3.42

Purchased 2,113,076 17,469 3.31 2,167,994 17,668 3.26 2,338,395 18,984 3.25

Total one- to four-family loans 5,861,098 53,959 3.68 5,962,775 54,189 3.63 6,263,822 55,359 3.54

Commercial loans:

Commercial real estate 1,776,342 26,456 5.83 1,670,205 24,317 5.70 1,303,095 18,755 5.63

Commercial and industrial 215,211 3,868 7.03 196,992 3,515 6.98 132,026 2,217 6.57

Commercial construction 198,300 3,316 6.54 182,855 3,050 6.53 171,627 2,784 6.35

Total commercial loans 2,189,853 33,640 6.01 2,050,052 30,882 5.89 1,606,748 23,756 5.79

Consumer loans 114,588 2,193 7.59 113,979 2,272 7.91 110,661 2,279 8.19

25 unchanged sentences

Total liabilities and stockholders' equity $ 9,827,112 $ 9,788,527 $ 9,552,269

For the Three Months Ended

December 31, 2025 September 30, 2025 December 31, 2024

Average Interest Average Interest Average Interest

Outstanding Earned/ Yield/ Outstanding Earned/ Yield/ Outstanding Earned/ Yield/

Amount Paid Rate Amount Paid Rate Amount Paid Rate

(Dollars in thousands)

Net interest income (4)

2 unchanged sentences

Net interest margin (5)

Ratio of interest-earning assets to interest-bearing liabilities 1.17x 1.17x

2.19 2.09 1.86

Ratio of interest-earning assets to interest-bearing liabilities 1.17x 1.17x 1.17x

Selected performance ratios:

2 unchanged sentences

Return on average equity (annualized) (7)

7.72 7.17 5.98

Average equity to average assets 10.70 10.72 10.80

Operating expense ratio (annualized) (8)

Operating expense ratio (8)

1.24 1.27 1.14

Efficiency ratio (9)

53.66 56.84 57.86

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

1 unchanged sentence

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

(3) There were no nontaxable securities included in the average balance of investment securities for the quarters ended June 30, 2025 or March 31, 2025.

(3) There were no nontaxable securities in the average balance of securities for the quarters ended December 31, 2025, September 30, 2025, or December 31, 2024.

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

1 unchanged sentence

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

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

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

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

7 unchanged sentences

Management believes the efficiency ratio is important to investors as it is a measure of a financial institution's total non-interest expense as a percentage of the sum of net interest income (pre-provision for credit losses) and non-interest income.

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

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

Rate/Volume Analysis.

The table below presents the dollar amount of changes in interest income and interest expense for major components of interest-earning assets and interest-bearing liabilities, comparing the three months ended June 30, 2025 to the three months ended March 31, 2025.

For each category of interest-earning assets and interest-bearing liabilities, information is provided on changes attributable to (1) changes in volume, which are changes in the average balance multiplied by the previous year's average rate and (2) changes in rate, which are changes in the average rate multiplied by the average balance from the previous year period.

For each category of interest-earning assets and interest-bearing liabilities, information is provided on changes attributable to (1) changes in volume, which are changes in the average balance multiplied by the previous period's average rate, and (2) changes in rate, which are changes in the average rate multiplied by the average balance from the previous period.

The net changes attributable to the combined impact of both rate and volume have been allocated proportionately to the changes due to volume and the changes due to rate.

For the Three Months Ended

June 30, 2025 vs.

March 31, 2025

Increase (Decrease) Due to

Volume Rate Total

(Dollars in thousands)

December 31, 2025 vs.

September 30, 2025 December 31, 2025 vs.

December 31, 2024

Increase (Decrease) Due to Increase (Decrease) Due to

Volume Rate Total Volume Rate Total

Interest-earning assets:

13 unchanged sentences

Net change in net interest income $ 1,120 $ 1,414 $ 2,534 $ 6,193 $ 2,894 $ 9,087

Comparison of Operating Results for the Nine Months Ended June 30, 2025 and 2024

The Company recognized net income of $49.2 million, or $0.38 per share, for the current year period, compared to net income of $26.0 million, or $0.20 per share, for the prior year period.

The lower net income in the prior year period was primarily a result of the net losses on the sale of securities associated with the securities strategy.

See additional discussion regarding the securities strategy in the "Executive Summary - Securities Strategy to Improve Earnings" section above.

The securities associated with the securities strategy were sold in the prior year period, and in that period the Company incurred $13.3 million ($10.0 million net of tax) of net losses related to the sale of those securities.

Excluding the effects of the net loss associated with the securities strategy, EPS would have been $0.28 for the prior year period.

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

The net interest margin increased 15 basis points, from 1.77% for the prior year period to 1.92% for the current year period.

Comparison of Operating Results for the Three Months Ended December 31, 2025 and September 30, 2025

For the quarter ended December 31, 2025, the Company recognized net income of $20.3 million, or $0.16 per share, compared to net income of $18.8 million, or $0.14 per share, for the quarter ended September 30, 2025.

The increase in net income was due primarily to higher net interest income, partially offset by higher income tax expense.

The net interest margin increased ten basis points, from 2.09% for the prior quarter to 2.19% for the current quarter due mainly to growth in the higher yielding commercial loan portfolio.

Interest and Dividend Income

The following table presents the components of interest and dividend income for the time periods presented, along with the change measured in dollars and percent.

For the Nine Months Ended

June 30, Change Expressed in:

The following table presents the components of interest and dividend income for the periods presented, along with the change measured in dollars and percent.

For the Three Months Ended

December 31, September 30, Change Expressed in:

2025 2025 Dollars Percent

3 unchanged sentences

MBS 11,341 11,808 (467) (4.0)

FHLB stock 6,834 7,591 (757) (10.0)

Cash and cash equivalents 2,773 2,148 625 29.1

FHLB stock 2,032 2,163 (131) (6.1)

Investment securities 51 582 (531) (91.2)

Total interest and dividend income $ 105,989 $ 104,044 $ 1,945 1.9

The increase in interest income on loans receivable was due primarily to the continued shift of loan balances from the one- to four-family loan portfolio to higher yielding commercial loans.

See additional discussion regarding the composition of the loan portfolio in the "Financial Condition - Loans Receivable" section above.

The increase in interest income on MBS securities was due mainly to an increase in the average balance of the portfolio, along with an increase in the weighted average yield compared to the prior year period.

The increase in the average balance was due mainly to securities purchases between periods.

The higher weighted average yield was due mainly to the securities strategy, as the proceeds from the securities that were sold during the prior year period were reinvested into higher yielding securities, and securities purchased between periods were also at higher market yields.

Interest income on cash and cash equivalents decreased due largely to a decrease in the average balance as a result of cash balances being drawn down during the prior fiscal year to fund commercial loans and other operational needs.

The decrease in interest income on investment securities was due to a decrease in average balance, partially offset by an increase in the weighted average yield.

The decrease in the average balance was due primarily to the securities purchased as part of the securities strategy being called or maturing during fiscal year 2024 and not being replaced in their entirety.

The increase in the weighted average yield was due to higher yields than the portfolio yields on the securities purchased between periods.

The increase in interest income on loans receivable was due mainly to increases in the average balance and yield of the commercial loan portfolio compared to the prior quarter.

The decrease in interest income on MBS and investment securities was due primarily to a decrease in the average balance of each portfolio compared to the prior quarter, as cash flows from those portfolios were used to fund commercial loan growth.

The increase in interest income on cash and cash equivalents was due to an increase in the average balance.

Interest Expense

The following table presents the components of interest expense for the time periods presented, along with the change measured in dollars and percent.

For the Nine Months Ended

June 30, Change Expressed in:

The following table presents the components of interest expense for the periods presented, along with the change measured in dollars and percent.

For the Three Months Ended

December 31, September 30, Change Expressed in:

2025 2025 Dollars Percent

4 unchanged sentences

Total interest expense $ 54,672 $ 55,261 $ (589) (1.1)

The increase in interest expense on deposits was due primarily to an increase in the weighted average rate paid on savings accounts, specifically the high yield savings account product, and retail certificates of deposit.

To a lesser extent, an increase in the average balance of retail certificates of deposit also increased interest expense on deposits.

The increases were partially offset by a decrease in the weighted average rate paid on and in the average balance of money market accounts.

The decrease in interest expense on borrowings was due to a decrease in the average balance, which was partially offset by a higher weighted average interest rate.

The decrease in the average balance of borrowings was due mainly to FHLB borrowings that matured between periods and were not renewed, along with a decrease in borrowings under the Federal Reserve's BTFP, which were repaid during the prior year period using a portion of the proceeds from the securities strategy.

The increase in the weighted average interest rate was due primarily to higher market interest rates on borrowings that matured and were renewed between periods.

The decrease in borrowings expense was due to a decrease in the average balance, due mainly to FHLB borrowings that matured between periods and were not replaced.

Deposit growth was used to repay these borrowings.

Provision for Credit Losses

The Company recorded a provision for credit losses of $226 thousand during the current year period compared to a provision for credit losses of $1.9 million for the prior year period.

The provision for credit losses in the current year period was comprised of a $321 thousand increase in the reserve for off-balance sheet credit exposures, partially offset by a $95 thousand decrease in the ACL for loans.

The Company recorded a provision for credit losses of $1.1 million during the current quarter compared to a provision for credit losses of $519 thousand for the prior quarter.

The provision for credit losses in the current quarter was due primarily to commercial loan growth.

Non-Interest Income

The following table presents the components of non-interest income for the time periods presented, along with the change measured in dollars and percent.

For the Nine Months Ended

June 30, Change Expressed in:

The following table presents the components of non-interest income for the periods presented, along with the change measured in dollars and percent.

For the Three Months Ended

December 31, September 30, Change Expressed in:

2025 2025 Dollars Percent

3 unchanged sentences

Insurance commissions 789 1,018 (229) (22.5)

Net loss from securities transactions — (13,345) 13,345 100.0

Other non-interest income 1,818 1,900 (82) (4.3)

Total non-interest income $ 5,479 $ 5,791 $ (312) (5.4)

The increase in deposit service fees was due mainly to growth in treasury management service fees, along with modest increases in interchange revenue and retail service fees.

The net loss from securities transactions in the prior year period was related to the securities strategy.

The change in other non-interest income between periods mainly related to the prior year including a net loss on a financial derivative related to a commercial lending relationship and no such loss in the current year period due to the loan being paid off in the prior year.

Insurance commissions were higher in the prior quarter, due primarily to the receipt of commissions that exceeded accruals, with no similar activity in the current quarter, along with insurance industry changes that reduced commissions on certain lines of business in the current quarter.

Due to these industry changes, we are broadening our focus on commercial insurance lines during fiscal year 2026, which aligns with our strategy of expanding our commercial banking services.

Non-Interest Expense

The following table presents the components of non-interest expense for the time periods presented, along with the change measured in dollars and percent.

For the Nine Months Ended

June 30, Change Expressed in:

The following table presents the components of non-interest expense for the periods presented, along with the change measured in dollars and percent.

For the Three Months Ended

December 31, September 30, Change Expressed in:

2025 2025 Dollars Percent

11 unchanged sentences

Total non-interest expense $ 30,476 $ 31,018 $ (542) (1.7)

The increase in salaries and employee benefits was mainly attributable to an increase in the number of employees between periods, merit increases and salary adjustments to remain market competitive, and a higher accrual of incentive compensation during the current year period than the prior year period related to the Bank's short-term performance plan.

The decrease in information technology and related expense was due mainly to a decrease in usage of third-party professional services along with a decrease in depreciation expense during the current year period.

The decrease in regulatory and outside services was due to a reduction in usage related to certain outside services compared to the prior year period.

The decrease in the federal insurance premium was due primarily to a decrease in the Federal Deposit Insurance Corporation ("FDIC") assessment rate as a result of the way the assessment rate was adjusted in fiscal year 2024 for the occurrence of the Bank's net loss during the quarter ended September 30, 2023.

The decrease in other non-interest expense was due mainly to lower customer fraud losses in the current year period compared to the prior year period and the maturity of an interest rate swap agreement during the current year period which reduced the expense associated with the collateral held in relation to the interest rate swap.

The Company's efficiency ratio was 58.89% for the current year period compared to 69.77% for the prior year period.

Excluding the net losses from the securities strategy, the efficiency ratio would have been 62.87% for the prior year period.

The improvement in the efficiency ratio, excluding the net losses from the securities strategy, was due primarily to higher net interest income compared to the prior year period.

The Company's operating expense ratio (annualized) for the current year period was 1.20% compared to 1.18% for the prior year period, due mainly to higher non-interest expense, largely attributable to higher salaries and employee benefits.

The increase in regulatory and outside services was due primarily to an increase in new relationships with outside service providers and additional services provided by current providers, of which approximately $325 thousand is not expected to recur in future periods.

The decrease in advertising and promotional expense was due primarily to the timing of campaigns and seasonal sponsorships compared to the prior quarter.

The Company's efficiency ratio was 53.66% for the current quarter compared to 56.84% for the prior quarter.

The improvement in the efficiency ratio was due to higher net interest income during the current quarter, along with lower non-interest expense.

The efficiency ratio is a measure of a financial institution's total non-interest expense as a percentage of the sum of net interest income (pre-provision for credit losses) and non-interest income.

A lower value generally indicates that it is costing the financial institution less money to generate revenue.

The Company's operating expense ratio (annualized) for the current quarter was 1.24% compared to 1.27% for the prior quarter.

The operating expense ratio was lower in the current quarter due to lower non-interest expense.

The operating expense ratio is a measure of a financial institution's total non-interest expense as a percentage of average assets, providing insight into how efficiently the Company is managing its expenses in relation to its assets and does not take into consideration changes in interest rates.

Income Tax Expense

The following table presents pretax income, income tax expense, and net income for the time periods presented, along with the change measured in dollars and percent and effective tax rate.

For the Nine Months Ended

June 30, Change Expressed in:

The following table presents pretax income, income tax expense, and net income for the periods presented, along with the change measured in dollars and percent and effective tax rate.

For the Three Months Ended

December 31, September 30, Change Expressed in:

2025 2025 Dollars Percent

4 unchanged sentences

Effective Tax Rate 19.5 % 18.3 %

Income tax expense was higher in the current year period compared to the prior year period, due to higher pretax income in the current year period.

The effective tax rate was higher in the prior year period due mainly to the income tax associated with the pre-1988 bad debt recapture.

Average Balance Sheets

Weighted average yields are derived by dividing annualized income by the average balance of the related assets, and weighted average rates are derived by dividing annualized expense by the average balance of the related liabilities, for the periods shown.

Average outstanding balances are derived from average daily balances.

The weighted average yields and rates include amortization of fees, costs, premiums and discounts, which are considered adjustments to yields/rates.

Weighted average yields on tax-exempt securities are not calculated on a fully taxable equivalent basis.

For the Nine Months Ended

June 30, 2025 June 30, 2024

Average Interest Average Interest

Outstanding Earned/ Yield/ Outstanding Earned/ Yield/

Amount Paid Rate Amount Paid Rate

(Dollars in thousands)

Interest-earning assets:

One- to four-family loans:

Originated $ 3,881,138 $ 109,026 3.75 % $ 3,994,694 $ 105,823 3.53 %

Correspondent purchased 2,164,263 53,311 3.28 2,367,032 57,788 3.26

Bulk purchased 122,228 2,959 3.23 133,783 2,160 2.15

Total one- to four-family loans 6,167,629 165,296 3.57 6,495,509 165,771 3.40

Commercial loans 1,689,038 73,272 5.72 1,343,241 56,285 5.51

Consumer loans 110,534 6,607 7.99 106,670 6,810 8.53

Total loans receivable (1)

7,967,201 245,175 4.09 7,945,420 228,866 3.83

825,420 34,451 5.57 580,178 23,238 5.34

Investment securities (2)(3)

69,778 2,795 5.34 202,392 7,115 4.69

FHLB stock 97,985 6,834 9.32 107,448 7,591 9.44

Cash and cash equivalents 182,456 6,220 4.50 320,398 13,166 5.40

Total interest-earning assets 9,142,840 295,475 4.30 9,155,836 279,976 4.06

Other non-interest-earning assets 457,719 461,030

Total assets $ 9,600,559 $ 9,616,866

Liabilities and stockholders' equity:

Interest-bearing liabilities:

Checking $ 876,079 1,513 0.23 $ 879,536 1,389 0.21

High yield savings 235,141 7,263 4.13 14,810 453 4.09

Other savings 441,022 254 0.08 465,846 401 0.12

Money market 1,235,352 11,606 1.26 1,322,851 17,702 1.79

Retail certificates 2,780,458 84,217 4.05 2,643,182 76,603 3.87

Commercial certificates 58,013 1,765 4.07 52,961 1,596 4.02

Wholesale certificates 75,805 2,440 4.30 116,590 3,947 4.52

Total deposits 5,701,870 109,058 2.56 5,495,776 102,091 2.48

Borrowings 2,136,105 54,889 3.43 2,375,474 56,648 3.18

Total interest-bearing liabilities 7,837,975 163,947 2.80 7,871,250 158,739 2.69

Non-interest-bearing deposits 553,644 533,454

Other non-interest-bearing liabilities 173,034 179,929

Stockholders' equity 1,035,906 1,032,233

Total liabilities and stockholders' equity $ 9,600,559 $ 9,616,866

Net interest income (4)

$ 131,528 $ 121,237

Net interest-earning assets $ 1,304,865 $ 1,284,586

Net interest margin (5)

Ratio of interest-earning assets to interest-bearing liabilities 1.17x 1.16x

Selected performance ratios:

Return on average assets (annualized) (6)(10)

0.68 % 0.36 %

Return on average equity (annualized) (7)(10)

Average equity to average assets 10.79 10.73

Operating expense ratio (8)

Efficiency ratio (9)(10)

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

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

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

(3) There were no nontaxable securities in the average balance securities for the nine month period ended June 30, 2025.

The average balance of investment securities includes an average balance of nontaxable securities of $68 thousand for the nine month period ended June 30, 2024.

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

Net interest income depends on the average balance of interest-earning assets and interest-bearing liabilities, and the interest rates earned or paid on them.

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

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

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

Management believes that the return on average assets is important to investors as it shows the Company's profitability in relation to the Company's average assets.

(7) Return on average equity represents annualized net income as a percentage of total average equity.

Management believes that the return on average equity is important to investors as it shows the Company's profitability in relation to the Company's average equity.

(8) The operating expense ratio represents annualized non-interest expense as a percentage of average assets.

Management believes the operating expense ratio is important to investors as it provides insight into how efficiently the Company is managing its expenses in relation to its assets.

It is a financial measurement ratio that does not take into consideration changes in interest rates.

(9) The efficiency ratio represents non-interest expense as a percentage of the sum of net interest income (pre-provision for credit losses) and non-interest income.

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

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

The securities strategy was non-recurring in nature;

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

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

For the Nine Months Ended

June 30, 2024

Actual Securities Strategy

(GAAP) Strategy (Non-GAAP)

Return on average assets (annualized) 0.36 % (0.14 %) 0.50 %

Return on average equity (annualized) 3.35 (1.31) 4.66

Efficiency Ratio 69.77 6.90 62.87

$ 0.20 $ (0.08) $ 0.28

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

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

Rate/Volume Analysis

For each category of interest-earning assets and interest-bearing liabilities, information is provided on changes attributable to (1) changes in volume, which are changes in the average balance multiplied by the previous period's average rate, and (2) changes in rate, which are changes in the average rate multiplied by the average balance from the previous period.

The net changes attributable to the combined impact of both rate and volume have been allocated proportionately to the changes due to volume and the changes due to rate.

For the Nine Months Ended

June 30, 2025 vs.

June 30, 2024

Increase (Decrease) Due to

Volume Rate Total

(Dollars in thousands)

Interest-earning assets:

Loans receivable $ 6,279 $ 10,030 $ 16,309

MBS 10,198 1,015 11,213

Investment securities (5,197) 877 (4,320)

FHLB stock (685) (72) (757)

Cash and cash equivalents (5,002) (1,944) (6,946)

Total interest-earning assets 5,593 9,906 15,499

Interest-bearing liabilities:

Checking (6) 130 124

Savings 477 6,186 6,663

Money market (1,115) (4,981) (6,096)

Certificates of deposit 2,875 3,401 6,276

Borrowings (6,219) 4,460 (1,759)

Total interest-bearing liabilities (3,988) 9,196 5,208

Net change in net interest income $ 9,581 $ 710 $ 10,291

Comparison of Operating Results for the Three Months Ended June 30, 2025 and 2024

For the quarter ended June 30, 2025, the Company recognized net income of $18.4 million, or $0.14 per share, compared to net income of $9.6 million, or $0.07 per share for the quarter ended June 30, 2024.

The increase in net income was due primarily to an increase in net interest income and lower income tax expense, partially offset by higher non-interest expense.

The net interest margin increased 21 basis points, from 1.77% for the prior year quarter to 1.98% for the current year quarter, due primarily to an increase in the average balance of higher yielding commercial loans as the loan portfolio continued to shift from one- to four-family loans to commercial loans between periods.

Income tax expense was higher in the current quarter due to a higher effective tax rate and higher pretax income compared to the prior quarter.

The effective tax rate was higher in the current quarter than the prior quarter due primarily to a slightly higher projected state tax rate in the current fiscal year.

Comparison of Operating Results for the Three Months Ended December 31, 2025 and 2024

The Company recognized net income of $20.3 million, or $0.16 per share, for the current quarter, compared to net income of $15.4 million, or $0.12 per share, for the prior year quarter.

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

The net interest margin increased 33 basis points, from 1.86% for the prior year quarter to 2.19% for the current quarter.

The increase was due mainly to growth in the higher yielding commercial loan portfolio.

Interest and Dividend Income

The following table presents the components of interest and dividend income for the time periods presented along with the change measured in dollars and percent.

The following table presents the components of interest and dividend income for the periods presented, along with the change measured in dollars and percent.

For the Three Months Ended

June 30, Change Expressed in:

December 31, Change Expressed in:

2025 2024 Dollars Percent

3 unchanged sentences

MBS 11,341 11,024 317 2.9

FHLB stock 2,197 2,477 (280) (11.3)

Cash and cash equivalents 2,773 1,871 902 48.2

FHLB stock 2,032 2,352 (320) (13.6)

Investment securities 51 981 (930) (94.8)

Total interest and dividend income $ 105,989 $ 97,622 $ 8,367 8.6

The increase in interest income on loans receivable was due primarily to the continued shift within the loan portfolio from one- to four-family loans to higher yielding commercial loans.

The increase in interest income on MBS was due to an increase in the average balance compared to the prior year quarter as excess operating cash, cash flows from the investment securities portfolio, and deposit inflows were used, in part, to purchase MBS between periods.

The decrease in interest income on cash was due mainly to a decrease in the average balance, along with lower yields compared to the prior year quarter.

The decrease in interest income on investment securities was due to a decrease in average balance as a result of the securities purchased as part of the securities strategy being called or maturing during fiscal year 2024 and not being replaced in their entirety.

The increase in interest income on loans receivable was due primarily to the continued shift of loan balances from the one- to four-family loan portfolio to higher yielding commercial loans, along with growth in the commercial loan portfolio funded with cash flows from the deposit portfolio and partially from the investment securities portfolio.

Interest income on cash and cash equivalents increased due largely to an increase in the average balance compared to the prior year quarter.

The decrease in interest income on investment securities was due to a decrease in average balance, due primarily to securities that were called or matured between periods and were not replaced in their entirety.

Interest Expense

1 unchanged sentence

For the Three Months Ended

June 30, Change Expressed in:

December 31, Change Expressed in:

2025 2024 Dollars Percent

4 unchanged sentences

Total interest expense $ 54,672 $ 55,392 $ (720) (1.3)

The decrease in interest expense on deposits was due mainly to a decrease in the weighted average rate paid on retail certificates of deposit and retail checking accounts, which more than offset the increase in the weighted average rate paid on savings accounts, specifically the high yield savings account product.

The decrease in interest expense on borrowings was due to a decrease in the average balance, which was partially offset by a higher weighted average interest rate.

The decrease in the average balance of borrowings was due mainly to FHLB borrowings that matured between periods and were not renewed.

Cash flows from the deposit portfolio were used, in part, to pay off maturing FHLB borrowings.

The increase in the weighted average interest rate was due primarily to higher market interest rates on FHLB borrowings that matured and were renewed between periods, along with lower rate advances that were not renewed, which increased the overall rate of the remaining advances.

Provision for Credit Losses

The Company recorded a release of provision for credit losses of $451 thousand during the current quarter compared to a provision for credit losses during the prior year quarter of $1.5 million.

See "Comparison of Operating Results for the Three Months Ended June 30, 2025 and March 31, 2025" above for additional discussion regarding the provision for credit losses during the current quarter.

The Company recorded a provision for credit losses of $1.1 million during the current quarter compared to a provision for credit losses of $677 thousand for the prior year quarter.

See additional details in the "Comparison of Operating Results for the Three Months Ended December 31, 2025 and September 30, 2025" above for additional information regarding the provision for credit losses during the current quarter.

Non-Interest Income

The following table presents the components of non-interest income for the time periods presented, along with the change measured in dollars and percent.

The following table presents the components of non-interest income for the periods presented, along with the change measured in dollars and percent.

For the Three Months Ended

June 30, Change Expressed in:

December 31, Change Expressed in:

2025 2024 Dollars Percent

5 unchanged sentences

Total non-interest income $ 5,479 $ 4,693 $ 786 16.7

The increase in deposit service fees was due mainly to growth in treasury management service fees compared to the prior year quarter.

The increase in other non-interest income was due primarily to an increase in BOLI income due to changes in rates and an increase in the crediting rate as a result of an agreement associated with certain existing policies that was executed during the current quarter.

Other non-interest income was higher in the current quarter due mainly to an increase in bank-owned life insurance ("BOLI") income due to a change in rates and an increase in the crediting rate as a result of updates to certain policies that were executed in the second half of the prior fiscal year.

Non-Interest Expense

The following table presents the components of non-interest expense for the time periods presented, along with the change measured in dollars and percent.

The following table presents the components of non-interest expense for the periods presented, along with the change measured in dollars and percent.

For the Three Months Ended

June 30, Change Expressed in:

December 31, Change Expressed in:

2025 2024 Dollars Percent

11 unchanged sentences

Total non-interest expense $ 30,476 $ 27,148 $ 3,328 12.3

The increase in salaries and employee benefits was mainly attributable to raises and salary adjustments to remain market competitive, a higher accrual of incentive compensation during the current year quarter than the prior year quarter related to the Bank's short-term performance plan, and an increase in the number of employees between periods.

The decrease in the federal insurance premium was due primarily to a decrease in the FDIC assessment rate as a result of the way the assessment rate was adjusted in fiscal year 2024 for the occurrence of the Bank's net loss during the quarter ended September 30, 2023.

The increase in advertising and promotional expense was due primarily to the timing of campaigns compared to the prior year quarter.

The decrease in other non-interest expense was due mainly to lower customer fraud losses in the current year quarter than the prior year quarter and the maturity of an interest rate swap agreement between periods which reduced the expense associated with the collateral held in relation to the interest rate swap.

The increase in salaries and employee benefits was mainly attributable to an increase in full-time equivalent employees between periods, merit increases and salary adjustments to remain market competitive.

The increase in information technology and related expense was due mainly to an increase in software licensing expense.

The increase in advertising and promotional expense was due to timing of campaigns compared to the prior year quarter.

The Company's efficiency ratio was 53.66% for the current quarter compared to 57.86% for the prior year quarter.

The improvement in the efficiency ratio was due primarily to higher net interest income in the current year quarter, which was partially offset by higher non-interest expense compared to the prior year quarter.

The Company's operating expense ratio (annualized) for the current quarter was 1.23% compared to 1.17% for the prior year quarter, due mainly to higher non-interest expense.

The improvement in the efficiency ratio was due primarily to higher net interest income compared to the prior year quarter, partially offset by higher non-interest expense.

The Company's operating expense ratio (annualized) for the current quarter was 1.24% compared to 1.14% for the prior year quarter.

The operating expense ratio was higher in the current quarter due mainly to higher non-interest expense, partially offset by higher average assets compared to the prior year quarter.

Income Tax Expense

The following table presents pretax income, income tax expense, and net income for the time periods presented, along with the change measured in dollars and percent and the effective tax rate.

The following table presents pretax income, income tax expense, and net income for the periods presented, along with the change measured in dollars and percent and effective tax rate.

For the Three Months Ended

June 30, Change Expressed in:

December 31, Change Expressed in:

2025 2024 Dollars Percent

4 unchanged sentences

Effective Tax Rate 19.5 % 19.2 %

Income tax expense and the effective tax rate was lower in the current year quarter compared to the prior year quarter due mainly to the income tax expense associated with the pre-1988 bad debt recapture that was recorded in the prior year quarter.

Additionally, during the current quarter, the State of Kansas enacted a change in the tax law that resulted in an $857 thousand reduction in net state income tax expense for the Company.

See additional information regarding the tax law change in "Comparison of Operating Results for the Three Months Ended June 30, 2025 and March 31, 2025" above.

Average Balance Sheet

Average outstanding balances are derived from average daily balances.

The weighted average yields and rates include amortization of fees, costs, premiums and discounts, which are considered adjustments to yields/rates.

Weighted average yields on tax-exempt securities are not calculated on a fully taxable equivalent basis.

For the Three Months Ended

June 30, 2025 June 30, 2024

Average Interest Average Interest

Outstanding Earned/ Yield/ Outstanding Earned/ Yield/

Amount Paid Rate Amount Paid Rate

(Dollars in thousands)

Interest-earning assets:

One- to four-family loans:

Originated $ 3,838,361 $ 36,340 3.79 % $ 3,970,881 $ 35,612 3.59 %

Correspondent purchased 2,114,381 17,434 3.30 2,317,550 18,854 3.25

Bulk purchased 118,487 1,020 3.44 130,876 731 2.23

Total one- to four-family loans 6,071,229 54,794 3.61 6,419,307 55,197 3.44

Commercial loans 1,814,455 25,925 5.65 1,371,631 19,311 5.57

Consumer loans 110,809 2,195 7.95 107,793 2,295 8.56

Total loans receivable (1)

7,996,493 82,914 4.13 7,898,731 76,803 3.88

884,321 12,163 5.50 675,506 9,585 5.68

Investment securities (2)(3)

60,319 784 5.19 163,765 2,255 5.51

FHLB stock 96,564 2,197 9.13 106,122 2,477 9.39

Cash and cash equivalents 145,579 1,620 4.40 283,939 3,875 5.40

Total interest-earning assets 9,183,276 99,678 4.33 9,128,063 94,995 4.15

Other non-interest-earning assets 455,441 451,143

Total assets $ 9,638,717 $ 9,579,206

Liabilities and stockholders' equity:

Interest-bearing liabilities:

Checking $ 883,428 497 0.23 $ 874,477 508 0.23

High yield savings 352,815 3,606 4.10 35,464 361 4.10

Other savings 438,821 77 0.07 459,150 130 0.11

Money market 1,220,567 3,700 1.22 1,268,261 5,259 1.67

Retail certificates 2,739,886 26,481 3.88 2,751,521 28,106 4.11

Commercial certificates 59,586 557 3.75 58,059 623 4.31

Wholesale certificates 91,645 942 4.12 106,680 1,246 4.70

Total deposits 5,786,748 35,860 2.49 5,553,612 36,233 2.62

Borrowings 2,085,696 18,360 3.53 2,297,228 18,438 3.22

Total interest-bearing liabilities 7,872,444 54,220 2.76 7,850,840 54,671 2.80

Non-interest-bearing deposits 564,913 534,901

Other non-interest-bearing liabilities 159,035 169,555

Stockholders' equity 1,042,325 1,023,910

Total liabilities and stockholders' equity $ 9,638,717 $ 9,579,206

Net interest income (4)

$ 45,458 $ 40,324

Net interest-earning assets $ 1,310,832 $ 1,277,223

Net interest margin (5)

Ratio of interest-earning assets to interest-bearing liabilities 1.17x 1.16x

Selected performance ratios:

Return on average assets (annualized) (6)

0.76 % 0.40 %

Return on average equity (annualized) (7)

Average equity to average assets 10.81 10.69

Operating expense ratio (annualized) (8)

Efficiency ratio (9)

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

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

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

(3) There were no nontaxable securities included in the average balance of investment securities for the three months ended June 30, 2025 or June 30, 2024.