What changed in this filing

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Item 2. Management’s Discussion and Analysis

2026-05-08 compared with 2026-02-06 · 660 added, 315 removed, 824 unchanged (54% of the section changed)

9 unchanged sentences

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

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

• our ability to expand our commercial banking, treasury management, and wealth management products and services across our market areas;

• fluctuations in deposit flows;

45 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 $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 Company recognized net income of $40.5 million, or $0.32 per share, for the current year six-month period compared to net income of $30.8 million, or $0.24 per share, for the prior year six-month period.

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

The net interest margin increased 33 basis points, from 1.89% for the prior year six-month period to 2.22% for the current year six-month period.

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.

The Bank continues its progression from a primarily retail oriented financial institution to a full-service consumer and commercial bank by strategically investing in technology, products and employees, allowing us to offer new products and services and deliver first-in-class service to our customers.

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

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 Company's efficiency ratio was 53.05% for the current year six-month period compared to 59.23% for the prior year six-month period.

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

The Company's operating expense ratio (annualized) for the current year six-month period was 1.24% compared to 1.18% for the prior year six-month period.

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

The loan portfolio totaled $8.11 billion at March 31, 2026, a $2.2 million increase from September 30, 2025, which was attributable to $201.8 million increase in commercial loans, offset by a $196.8 million decrease in one- to four-family loans, as the Bank continued to redirect cash flows received from the one- to four-family loan portfolio to the commercial loan portfolio.

The growth in the

commercial loan portfolio was primarily in commercial real estate loans.

The weighted average DSCR for commercial loan originations and new participations during the six months ended March 31, 2026 was 2.35x and the weighted average LTV for commercial real estate and construction loans originated and new participations was 70%.

The weighted average DSCR and LTV for our commercial real estate and construction loan portfolio was 1.76x and 63%, respectively, at March 31, 2026.

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

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.

At March 31, 2026, loans 30 to 89 days delinquent were 0.15% of total loans receivable, net, and loans 90 or more days delinquent or in foreclosure were 0.17% 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.

During the current year six-month period, the Bank had net charge-offs ("NCOs") of $156 thousand.

Total deposits were $6.92 billion at March 31, 2026, an increase of $333.0 million compared to September 30, 2025.

The increase was due mainly to growth in the Bank's non-maturity deposit portfolio.

Management continues to focus on growing commercial relationships and deposits.

During the six months ended March 31, 2026, commercial non-interest-bearing deposits increased $36.1 million, or 18.9%.

Total borrowings were $1.71 billion at March 31, 2026, a decrease of $243.7 million compared to September 30, 2025, due primarily to the maturity of $200.0 million of borrowings that were not replaced, along with principal repayments made on the Bank's amortizing FHLB advances.

Cash flows from the deposit portfolio were used, in part, to pay off maturing FHLB borrowings and repay amortizing FHLB advances.

Management estimated that the Bank had $4.35 billion in liquidity available at March 31, 2026, 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 $1.03 billion at March 31, 2026, a decrease of $22.0 million from September 30, 2025, due to strategic share repurchases and dividend payments, continuing our efforts to enhance stockholder value.

During the six months ended March 31, 2026, the Company repurchased 4,532,114 shares of common stock at an average price of $7.00 per share, or $31.7 million in total, and paid cash dividends totaling $26.9 million, or $0.210 per share which consisted of a $0.040 per share special cash dividend and two regular quarterly cash dividends totaling $0.170 per share.

As of March 31, 2026, the Bank's capital ratios exceeded the well-capitalized requirements.

The Bank's community bank leverage ratio ("CBLR") as of March 31, 2026 was 9.5%.

At March 31, 2026, the gap between the Bank's interest-earning assets and interest-bearing liabilities projected to reprice within one year was $(792.4) million or (8.1%) 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." As of December 31, 2025, the Bank was in compliance with its internal policy thresholds for sensitivity to changes in interest rates.

Quantitative and Qualitative Disclosures About Market Risk." As of March 31, 2026, the Bank was in compliance with its internal policy thresholds for sensitivity to changes in interest rates.

Strategic Banking Initiatives

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.

Our strategic banking initiatives keep us focused on the progression towards becoming a full-service consumer and commercial bank.

These initiatives have resulted in investments in technology, allowing us to launch new services and products.

Our seasoned and well-connected commercial bankers and trust and wealth advisors deliver access to new customer groups.

Our treasury management product suite enables us to deliver first-in-class service to new and existing customers.

Our marketing and business development efforts continue to increase, deepen and broaden our customer relationships.

The focus on our strategic banking initiatives continues to bear fruit and we expect that 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.

The long-term success of our transition to a full-service consumer and commercial bank is predicated on strengthening relationships with consumer and commercial customers.

Management and the Board are utilizing committed resources to implement our strategic objectives, as well as enhancing internal monitoring of performance metrics intended to ensure we are on the right path.

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.

We are leveraging our centralized organizational structure to respond quickly to our customers' needs and desires.

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.

Commercial loans continue to grow as a percentage of our total loan portfolio, comprising 29% of the portfolio at March 31, 2026, compared to 28% and 26% at December 31, 2025 and September 30, 2025, respectively.

Our disciplined underwriting, ongoing credit administration and monitoring of concentration levels by collateral type, geographic location and borrowing relationship allow us to maintain strong credit quality.

Commercial lending utilizes loan pricing and profitability software that provides insights into lending opportunities based on the full customer banking relationship and market intelligence regarding competitor pricing.

This enhances our ability to profitably compete with other financial institutions both inside and outside our market areas.

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.

The Bank offers a competitive suite of treasury management products to commercial customers who are supported by 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 local market areas, as well as those we lend to outside those areas.

During the current fiscal year, a team of our business development officers have been tasked with growing the deposit base within the small business customer segment and providing product lines specifically designed for these customers.

Our treasury management officers and business development officers often create depository relationships with new customers independent of a lending relationship.

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

During the third 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.

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

The Bank implemented new purchase cards and corporate cards in March 2026.

Revenue stream projections have not yet been determined as customer acceptance rates are still being evaluated.

Digital Banking.

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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.

During the current quarter, the Bank successfully ran live pilots for this technology and published the mobile app to the app store.

We are preparing for general release to our customers in the third 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.

We have continued to implement enhanced private wealth management products and services, which is a new line of business for the Bank.

Trust and financial advisory services are undergoing a transformational upgrade that we expect will lead to improved client and advisor experience, lowered overhead cost, and increased revenue.

We are adding experienced advisors to our staff to meet the growing client demand in all the markets we serve.

We continue to expand our extensive suite of private banking products and services and grow our client base in this area.

We believe that deliberate and meaningful growth in this 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 additional 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.

Delivering long-term sustainable stockholder value continues to be our North Star while 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.

At March 31, 2026, Capitol Federal Financial, Inc., at the holding company level, had $10.7 million in cash on deposit at the Bank.

Subsequent to March 31, 2026 through May 6, 2026, the Bank distributed $25.0 million from the Bank to the holding company to fund the payment of dividends and share repurchases during the quarter-ending June 30, 2026.

Total dividends paid during the second quarter of fiscal year 2026 were $15.9 million, or $0.125 per share.

During the six months ended March 31, 2026, the Company paid dividends of $26.9 million, or $0.210 per share, and repurchased 4,532,114 shares for $31.7 million.

Subsequent to March 31, 2026, the Company repurchased an additional 1,002,964 shares for $7.6 million through May 6, 2026.

Since completing our second-step conversion in December 2010 through March 31, 2026, we have returned $2.06 billion to stockholders through $1.59 billion in cash dividends and $471.6 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.

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

December 31, September 30, Percent

2025 2025 Change

Annualized Annualized

March 31, December 31, Percent September 30, Percent

2026 2025 Change 2025 Change

(Dollars and shares in thousands)

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Equity to total assets at end of period 10.4 % 10.6 % 10.7 %

Tangible book value per share $ 7.96 $ 7.95 0.5 $ 7.85 2.8

Average number of basic and diluted

shares outstanding 126,631 128,953 (7.2) 129,874 (5.0)

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.

The loan portfolio decreased $62.5 million during the current quarter as the one- to four-family loan portfolio decreased $98.2 million from the prior quarter end, partially offset by commercial loan growth of $39.1 million, or a 1.7% increase, mainly in the commercial real estate portfolio.

The Bank expects to fund approximately $60.0 million of undisbursed amounts on existing commercial real estate and commercial construction loans and approximately $84.4 million of commercial real estate and commercial construction commitments during the June 30, 2026 quarter.

The near-term outlook for net commercial loan balances is growth of approximately 6% for the quarter-ending June 30, 2026, with overall net commercial loan growth of approximately 20% for the full fiscal year.

Total loans receivable, net is anticipated to increase by approximately 1% for the full fiscal year.

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

The weighted average DSCR for commercial loan originations during the current quarter was 1.86x and the weighted average LTV for commercial real estate and construction loans originated was 63%.

Deposits increased $165.9 million during the current quarter, due mainly to the Bank's retail non-maturity deposits.

Borrowings decreased $122.9 million from December 31, 2025, due to the maturity of $100.0 million in borrowings that were not replaced, along with principal repayments made on the Bank's amortizing FHLB advances.

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

Stockholders' equity decreased $15.6 million during the current quarter, due primarily to strategic share repurchases and dividend payments.

Loans Receivable.

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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

March 31, 2026 December 31, 2025 September 30, 2025

Amount Rate Amount Rate Amount Rate

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

For the Three Months Ended

December 31, 2025 December 31, 2024

Amount Rate Amount Rate

For the Three Months Ended For the Six Months Ended

March 31, 2026 March 31, 2026 March 31, 2025

Amount Rate Amount Rate Amount Rate

(Dollars in thousands)

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Loan originations, participations, and refinances are reported together.

For the Three Months Ended

December 31, 2025 December 31, 2024

For the Six Months Ended

March 31, 2026 March 31, 2025

Amount Rate % of Total Amount Rate % of Total

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$ 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, and average balance per loan as of December 31, 2025.

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

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5,707,809 100.0 % 3.73 769 58 212

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

As of March 31, 2026, the Bank had one- to four-family loan and refinance commitments totaling $37.5 million at a weighted average rate of 5.89%.

For the Three Months Ended For the Six Months Ended

March 31, 2026 March 31, 2026

Credit Credit

Amount Rate LTV Score Amount Rate LTV Score

(Dollars in thousands)

$ 59,207 5.83 % 73 % 767 $ 141,594 5.86 % 73 % 765

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.

Commercial Loans - The tables below summarize 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 is calculated using the gross loan amount (comprised 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.

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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 March 31, 2026

Originated Participation Total Weighted Weighted

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$ 123,828 6.45 $ — — $ 123,828 6.45 63 1.86

For the Six Months Ended March 31, 2026

Originated Participation Total Weighted Weighted

Amount Rate Amount Rate Amount Rate LTV DSCR

(Dollars in thousands)

Commercial real estate $ 238,926 6.31 % $ 32,510 6.25 % $ 271,436 6.30 % 68 % 2.62x

Commercial and industrial 52,435 6.64 — — 52,435 6.64 N/A 4.27

Commercial construction 113,548 6.73 51,010 6.45 164,558 6.64 72 1.29

$ 404,909 6.47 $ 83,520 6.37 $ 488,429 6.45 70 2.35

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

For the Three Months Ended For the Six Months Ended

March 31, 2026 December 31, 2025 March 31, 2026 March 31, 2025

Amount Rate Amount Rate Amount Rate Amount Rate

(Dollars in thousands)

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December 31, September 30,

2025 December 31,

March 31, 2026 2025 2025

Unpaid Undisbursed Gross Loan Gross Loan Gross Loan

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Weighted average rate 5.89 % 6.59 % 5.98 % 5.95 % 5.99 %

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,

The following table summarizes the unpaid principal balance of non-owner occupied and owner occupied loans within the Bank's commercial real estate loan portfolio, aggregated by primary collateral, along with weighted LTV and weighted DSCR, as of March 31, 2026.

Non-owner Occupied Owner Occupied

Unpaid Weighted Weighted Unpaid Weighted Weighted

Count Principal LTV DSCR Count Principal LTV DSCR

(Dollars in thousands)

Non-owner occupied $ 1,379,099 $ 1,271,905 $ 1,017,025

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 December 31, 2025.

Hotel 26 $ 592,841 55 % 1.34x – $ — — % —x

Senior housing 51 509,475 73 1.76 – — — —

Retail building 40 169,503 61 1.89 68 68,793 53 2.03

Office building 21 59,416 65 1.54 51 34,721 62 7.79

Warehouse/manufacturing 16 21,780 58 3.96 33 24,871 63 1.47

Single use building 7 3,230 51 2.82 17 29,295 63 1.67

Other 7 5,817 64 1.42 10 7,469 48 2.16

168 $ 1,362,062 63 1.62 179 $ 165,149 58 3.10

The following table outlines management's funding expectations for the Bank's commercial real estate and commercial construction undisbursed amounts and commitments outstanding as of March 31, 2026.

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,

2026 December 31,

2026 Thereafter Revolving Lines of Credit Total

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December 31, September 30,

2025 December 31,

March 31, 2026 2025 2025

Unpaid Undisbursed Gross Loan Gross Loan Gross Loan

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New York 3 112,201 — 112,201 109,482 109,828

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

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

Washington 2 51,200 — 51,200 — —

Other 56 369,956 74,172 444,128 431,184 353,401

731 $ 2,085,564 $ 306,187 $ 2,391,751 $ 2,368,814 $ 2,149,910

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 December 31, 2025.

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 LTV is calculated using the gross loan amount (composed of unpaid principal and undisbursed amounts) as of March 31, 2026 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.

For construction loans, the DSCR is based on projected stabilized cash flows and the contractual loan payments when the project stabilizes.

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

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Senior housing 327,078 141,066 — — — — 71,657 539,801

Retail building 87,670 41,492 84,736 20,068 — — 80,902 314,868

Multi-family 204,547 56,658 20,000 — — — 20,180 301,385

Retail building 99,809 40,564 37,178 20,162 — — 80,848 278,561

Office building 62,523 7,336 447 131 3,117 — 26,930 100,484

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

One- to four-family property 56,016 4,148 — 2,248 — 1,620 11,290 75,322

Warehouse/manufacturing 40,753 17,818 — — — — 6,668 65,239

Land 7,258 78 — — — — 31,998 39,334

4 unchanged sentences

Weighted DSCR 2.15x 1.55x 1.21x 1.49x 1.56x 1.47x 1.59x 1.76x

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 December 31, 2025.

Unpaid Weighted Weighted Weighted

3 unchanged sentences

Senior housing 53 539,801 5.19 73 1.73

Retail building 126 314,868 5.51 61 1.93

Multi-family 31 301,385 6.06 64 1.29

Retail building 121 278,561 5.85 61 1.87

Office building 75 100,484 6.41 65 3.68

Warehouse/manufacturing 51 62,969 6.34 65 2.26

One- to four-family property 288 75,322 6.10 58 2.69

Warehouse/manufacturing 53 65,239 6.39 65 2.31

Land 24 39,334 6.27 68 3.89

2 unchanged sentences

731 $ 2,085,564 5.89 63 1.76

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.

The following table presents the Bank's commercial construction loans, including unpaid principal and undisbursed amounts, along with outstanding commercial construction loan commitments as of March 31, 2026, aggregated by type of primary collateral, along with weighted average rate, LTV, and DSCR.

Unpaid Undisbursed Gross Loan Commitment Total Weighted

Count Principal Amount Amount Amount Amount Rate LTV DSCR

(Dollars in thousands)

Multi-family 10 $ 63,675 $ 125,948 $ 189,623 $ 100,540 $ 290,163 6.61 % 61% 1.19x

Retail building 10 39,324 60,623 99,947 — 99,947 6.64 75 1.34

Hotel 7 36,844 57,382 94,226 — 94,226 7.10 70 1.47

Senior housing 2 30,327 17,197 47,524 — 47,524 6.38 78 1.32

Warehouse/manufacturing 1 9,360 — 9,360 — 9,360 7.25 80 1.56

Office building 3 6,347 765 7,112 — 7,112 7.09 75 1.20

Single use building 1 — — — 6,112 6,112 7.00 62 1.22

One- to four-family property 8 3,374 487 3,861 — 3,861 7.08 73 2.07

Other 1 — — — 7,294 7,294 6.21 54 1.21

43 $ 189,251 $ 262,402 $ 451,653 $ 113,946 $ 565,599 6.70 67 1.28

Weighted average rate 6.73 % 6.62 % 6.67 % 6.83 % 6.70 %

Weighted LTV 70 % 68 % 69 % 60 % 67 %

Weighted DSCR 1.37x 1.27x 1.31x 1.18x 1.28x

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 March 31, 2026, categorized by aggregate gross loan and commitment amount, along with average loan amount, and weighted average rate, LTV, and DSCR.

For amounts over $60.0 million, there was $151.8 million secured by hotels in Arizona and California, $143.1 million secured by multi-family properties in Kansas, and $69.6 million secured by a senior housing facility in Kansas.

The largest loan included in the table below was $86.0 million, which was fully disbursed as of March 31, 2026, and is collateralized by a hotel in Arizona.

Included in the >$20 to $30 million category are five loans with DSCRs below 1.15x.

Of those five loans, four of the loans, with a gross loan amount of $99.3 million, are with three of our largest borrowing groups.

We have over 20 years of experience with these borrowing groups and the guarantors have expertise in the operation of the properties securing the loans.

All of these loans were current as of March 31, 2026 and are being actively monitored by management.

The weighted average LTV for these four loans was 68% as of March 31, 2026.

The fifth loan, with an unpaid principal balance of $24.3 million, was on nonaccrual and classified as substandard as of March 31, 2026.

A specific valuation allowance was established related to this loan as of March 31, 2026.

See additional discussion regarding the specific valuation allowance in the "Management's Discussion and Analysis of Financial Condition and Results of Operation - Asset Quality" section below.

and Commitment Average Weighted Weighted Weighted

11 unchanged sentences

749 $ 2,582,529 3,448 6.01 64 1.70

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

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.

The following table summarizes the Bank's commercial and industrial loans by loan purpose as of the dates indicated, along with DSCR weighted by gross loan amount at March 31, 2026.

The Bank had four commercial and industrial loan commitments totaling $36.6 million, with a weighted average rate of 6.83%, at March 31, 2026.

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

1 unchanged sentence

December 31, September 30,

2025 December 31,

Unpaid Undisbursed Gross Loan Gross Loan Gross Loan

Count Principal Amount Amount Amount Amount

March 31, 2026 2025 2025

Unpaid Undisbursed Gross Loan Weighted Gross Loan Gross Loan

Count Principal Amount Amount DSCR Amount Amount

(Dollars in thousands)

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

Working capital 188 $ 108,915 $ 48,465 $ 157,380 4.69x $ 156,577 $ 153,967

Purchase/refinance business assets 51 53,937 265 54,202 1.63 49,892 49,805

4 unchanged sentences

Weighted average rate 6.76 % 6.68 % 6.74 % 6.75 % 6.97 %

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.

The following table summarizes the Bank's commercial and industrial loans by the state in which the borrower is located, as of March 31, 2026.

Unpaid Undisbursed Gross Loan

4 unchanged sentences

Missouri 10,722 690 11,412

California 7,800 2,237 10,037

Ohio 9,785 215 10,000

Other 37,391 1,215 38,606

$ 232,182 $ 57,097 $ 289,279

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

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 March 31, 2026, categorized by aggregate gross loan and commitment amounts, along with average loan amount, and weighted average DSCR.

The largest loan included in the table below was a working capital loan with a gross balance of $36.0 million, of which $11.8 million remained undisbursed as of March 31, 2026.

This loan is part of the Bank's largest commercial and industrial lending relationship, which had a total gross loan balance of $84.7 million, representing 29% of the gross commercial and industrial loan portfolio at March 31, 2026.

The borrower is located in Kansas and, as of March 31, 2026, also maintained an additional working capital loan with a gross loan balance greater than $15 million, for a total of two loans with a gross loan amount greater than $15 million.

Also included in the gross loan and commitment amounts greater than $15 million as of March 31, 2026 was a loan commitment to a borrower located in Georgia for the purchase and refinancing of business assets.

and Commitment Average Weighted

Count Amounts Amount DSCR

11 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 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

Of the loans 30 to 89 days delinquent at March 31, 2026, approximately 60% were 59 days or less delinquent.

March 31, December 31, September 30,

2026 2025 2025

Count Amount Count Amount Count Amount

(Dollars in thousands)

13 unchanged sentences

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

December 31, September 30,

Count Amount Count Amount

March 31, December 31, September 30,

2026 2025 2025

Count Amount Count Amount Count Amount

(Dollars in thousands)

19 unchanged sentences

Consumer 1 135 1 135 1 135

1 135 3 426 2 197

Total non-performing assets 85 $ 55,043 71 $ 49,308 65 $ 48,260

3 unchanged sentences

(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, 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.

8 unchanged sentences

$ 5,707,809 100.0 % $ 8,990 100.0 % $ 9,736 100.0 % 59

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.

4 unchanged sentences

Kansas $ 1,554 100.0 % $ 2,418 91.8 % 41 % 2.24x

Missouri 2,251 87.1 — — — —

Other states — — 216 8.2 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 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

The decrease in commercial real estate special mention loans at March 31, 2026 compared to September 30, 2025 was due mainly to a hotel participation loan being upgraded to pass due to an improvement in the hotel's financial results.

The majority of the substandard commercial real estate loan balance at the dates presented in the table below relates to one borrowing relationship.

During the current quarter, an updated appraisal was received related to the collateral securing this lending relationship.

The updated appraisal was lower than the appraisal received approximately one year ago and as a result, a $4.0 million specific valuation allowance was recorded as of March 31, 2026 related to this lending relationship.

The loans associated with this lending relationship were on nonaccrual at all dates presented in the table below.

March 31, 2026 December 31, 2025 September 30, 2025

Special Mention Substandard 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 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.

At March 31, 2026, 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.

4 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 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.

The increase in the ACL to loans receivable ratio as of March 31, 2026, compared to December 31, 2025 and September 30, 2025, was due primarily to establishing a specific valuation allowance related to the commercial real estate lending relationship discussed above.

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.

1 unchanged sentence

Distribution of ACL Ratio of ACL to Loans Receivable

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

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

2026 2025 2025 2026 2025 2025

8 unchanged sentences

Commercial construction 2,716 2,871 2,468 1.44 1.56 1.26

Total commercial 21,522 20,776 0.94 0.98

Total 23,735 21,522 20,776 1.02 0.94 0.98

Consumer 201 208 217 0.18 0.18 0.19

Total $ 26,599 $ 24,572 $ 24,039 0.33 0.30 0.30

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

Historically, the Bank has maintained very low delinquency ratios and net charge-off rates.

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 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 highest such ratio for one- to four-family originated and correspondent loans, combined, was 0.17%.

During the 10-year period ended March 31, 2026, the Bank recognized total NCOs of $904 thousand.

As of March 31, 2026, the ACL balance was $26.6 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 following table presents ACL activity and related ratios at the dates and for the periods indicated.

At or For the Three Months Ended

December 31, 2025 December 31, 2024

At or For the Six Months Ended

March 31, 2026 March 31, 2025

(Dollars in thousands)

9 unchanged sentences

ACL to loans receivable, net at end of period 0.33 0.30

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.

ACL at end of period to NCOs

during the period (annualized) 85x 112x

The ratio of NCOs to average non-performing assets was lower in the current year period compared to the prior year period due to a higher average balance of non-performing assets during the six months ended March 31, 2026.

The ratio of ACL to nonaccrual loans was lower at the end of the current year six-month period compared to the prior year six-month period due to a higher balance of nonaccrual loans at March 31, 2026.

The increase in the ratio of the ACL to total loans as of March 31, 2026 from March 31, 2025 was due primarily to establishing a specific valuation allowance related to a nonaccrual commercial lending relationship during the current year period.

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.

Additional information related to ACL activity by specific loan categories for the current year 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.

ACL at the end of the period to NCOs during the period (annualized) was lower compared to the prior year six-month period, due primarily to higher NCOs in the current year six-month period.

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

For the Three Months Ended

December 31, 2025 December 31, 2024

For the Six Months Ended

March 31, 2026 March 31, 2025

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

18 unchanged sentences

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

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

Overall, fixed-rate securities comprised 91% of our securities portfolio at March 31, 2026.

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.

December 31, 2025 September 30, 2025

Amount Yield WAL Amount Yield WAL

March 31, 2026 December 31, 2025 September 30, 2025

Amount Yield WAL Amount Yield WAL Amount Yield WAL

(Dollars in thousands)

5 unchanged sentences

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 Three Months Ended

December 31, 2025 December 31, 2024

For the Six Months Ended

March 31, 2026 March 31, 2025

Amount Yield WAL Amount Yield WAL

6 unchanged sentences

Ending balance - carrying value $ 809,566 5.44 4.0 $ 961,417 5.46 5.6

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.

Total liabilities were $8.80 billion at March 31, 2026, compared to $8.73 billion at September 30, 2025.

The $72.3 million increase was due primarily to a $333.0 million increase in deposits, partially offset by a $243.7 million decrease in borrowings.

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

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

The decrease in the deposit portfolio rate as of March 31, 2026 compared to December 31, 2025 was due primarily to an increase in retail checking account balances, a reduction in the rate on retail money market accounts, and a decrease in the retail certificate of deposit portfolio rate.

The decrease in the deposit portfolio rate as of March 31, 2026 compared to September 30, 2025 was due mainly to a decrease in the rate paid on retail certificates of deposit and retail money market accounts, along with an increase in the balance of retail checking accounts and commercial non-interest bearing checking account.

March 31, 2026 December 31, 2025 September 30, 2025

% of % of % of

9 unchanged sentences

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.

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

March 31, 2026 December 31, 2025 September 30, 2025

% 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.

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

March 31, 2026 December 31, 2025 September 30, 2025

% of % of % of

5 unchanged sentences

$ 6,924,491 2.13 100.0 % $ 6,758,632 2.18 100.0 % $ 6,591,448 2.26 100.0 %

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.

As of March 31, 2026, approximately $779.2 million (or approximately 11%) of the Bank's Call Report deposit balance was uninsured, of which approximately $645.8 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 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.

Total borrowings at March 31, 2026 were $1.71 billion, which was comprised of $1.61 billion in fixed-rate FHLB advances, $100.0 million in variable-rate FHLB advances tied to an interest rate swap, and $1.2 million in finance leases.

Borrowings decreased $243.7 million from September 30, 2025 due primarily to the maturity of $200.0 million of borrowings that were not replaced, along with principal repayments made on the Bank's amortizing FHLB advances.

Cash flows from the deposit portfolio were used, in part, to pay off maturing FHLB borrowings and repay amortizing FHLB advances.

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.

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 March 31, 2026.

Amortizing FHLB advances totaling $233.6 million are presented based on their maturity dates versus their quarterly scheduled repayment dates.

15 unchanged sentences

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 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.

For the Three Months Ended

December 31, 2025 December 31, 2024

Effective Effective

Amount Rate WAM Amount Rate WAM

For the Three Months Ended For the Six Months Ended

March 31, 2026 March 31, 2026 March 31, 2025

Effective Effective Effective

Amount Rate WAM Amount Rate WAM Amount Rate WAM

(Dollars in thousands)

3 unchanged sentences

Ending balance $ 1,708,648 3.65 1.6 $ 1,708,648 3.65 1.6 $ 2,143,320 3.54 1.6

During the current quarter, the Bank prepaid $375.0 million of fixed-rate advances with a weighted average effective rate of 4.36% and a WAM of 0.9 years and replaced them with $375.0 million of fixed-rate advances with a weighted average effective rate of 3.81% and a WAM of 2.4 years.

This transaction resulted in prepayment fees of $2.1 million, which will be recognized in interest expense over the life of the new FHLB advances.

During the quarter ended December 31, 2025, the Bank prepaid a $50.0 million fixed-rate advance with a weighted average effective rate of 4.03% and a WAM of 0.5 years and replaced it with a $50.0 million fixed-rate advance with a weighted average effective rate of 3.64% and a WAM 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.

These prepayment activities are reflected through the effective rates in the table above.

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

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 December 31, 2025.

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

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

2026 2026 2026 2027 Total

11 unchanged sentences

Repricing Rate 3.59 % 3.65 % 3.57 % 2.91 % 3.49 %

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

The following table sets forth the WAM information for our certificates of deposit, in years, as of March 31, 2026.

Retail certificates of deposit 0.7

3 unchanged sentences

Stockholders' Equity.

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

Stockholders' equity totaled $1.03 billion at March 31, 2026.

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%.

As of March 31, 2026, all of 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 March 31, 2026, the Bank's community bank leverage ratio was 9.5%.

Excluding the impact of deferred tax assets related to the Bank's net operating loss carryforward and federal tax credits, the Bank's CBLR was 9.8% as of March 31, 2026.

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

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.

During the six months ended March 31, 2026, the Company repurchased 4,532,114 shares of common stock at an average price of $7.00 per share, or $31.7 million in total.

Subsequent to March 31, 2026 through May 6, 2026, the Company repurchased an additional 1,002,964 shares of common stock at an average price of $7.56 per share, or $7.6 million in total, bringing total share repurchases during fiscal year 2026 through May 6, 2026 to 5,535,078 shares for $39.3 million.

As of May 6, 2026, total shares outstanding was 126,694,827.

The Company intends to opportunistically repurchase stock from time to time depending 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.

The FRB's current non-objection for the Company to repurchase up to $75 million of stock expires in February 2027.

As of May 6, 2026 the Company had $31.8 million remaining authorized under its existing stock repurchase plan.

During the six months ended March 31, 2026, the Company paid cash dividends totaling $26.9 million, or $0.21 per share, which consisted of a $0.04 per share special cash dividend and two regular quarterly cash dividends of $0.085 per share, totaling $0.17 per share for the quarterly cash dividends.

On April 28, 2026, the Company announced a regular quarterly cash dividend of $0.085 per share, or approximately $10.6 million, payable on May 15, 2026 to stockholders of record as of the close of business on May 1, 2026.

The special cash dividend paid in January 2026, 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 with 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.

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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.

Since our second-step conversion in December 2010 through March 31, 2026, we have returned $2.06 billion in capital to stockholders through dividends totaling $1.59 billion and stock repurchases totaling $471.6 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

At March 31, 2026, Capitol Federal Financial, Inc., at the holding company level, had $10.7 million in cash on deposit at the Bank.

During the six months ended March 31, 2026, the Bank distributed $53.0 million from the Bank to the Company.

The Bank is expected to stay in a positive tax accumulated earnings and profit balance during the remainder of fiscal year 2026.

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 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.

For the quarter ending June 30, 2026, the amount presented represents the estimated dividend payable on May 15, 2026 to stockholders of record as of the close of business on May 1, 2026.

Calendar Year

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For the Three Months Ended

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

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

2026 2025 2025 2025 2025

23 unchanged sentences

Diluted EPS 0.16 0.16 0.14 0.14 0.12

Comparison of Operating Results for the Three Months Ended March 31, 2026 and December 31, 2025

For the quarter ended March 31, 2026, the Company recognized net income of $20.1 million, or $0.16 per share, compared to net income of $20.3 million, or $0.16 per share, for the quarter ended December 31, 2025.

The slight decrease in net income was due primarily to a higher provision for credit losses, partially offset by higher net interest income and lower non-interest expense.

The net interest margin increased five basis points, from 2.19% for the prior quarter to 2.24% for the current quarter due to a decrease in the amount of borrowings outstanding during the quarter.

Interest and Dividend Income

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

March 31, December 31, Change Expressed in:

2026 2025 Dollars Percent

(Dollars in thousands)

INTEREST AND DIVIDEND INCOME:

Loans receivable $ 89,323 $ 89,792 $ (469) (0.5 %)

MBS 10,853 11,341 (488) (4.3)

Cash and cash equivalents 2,474 2,773 (299) (10.8)

FHLB stock 1,858 2,032 (174) (8.6)

Investment securities 52 51 1 2.0

Total interest and dividend income $ 104,560 $ 105,989 $ (1,429) (1.3)

The decrease in interest income on loans receivable was mainly related to the commercial loan portfolio, largely due to two fewer calendar days during the current quarter, along with lower deferred fee recognition in the current quarter related to commercial loan payoff activity.

The average balance of the commercial loan portfolio increased during the current quarter, which partially offset the impact of the items noted above.

The decrease in interest income on MBS was due to a decrease in the average balance of the portfolio compared to the prior quarter as not all of the portfolio repayments were reinvested back into the portfolio.

The decrease in interest income on cash and cash equivalents was due primarily to a decrease in the weighted average yield compared to the prior quarter.

The decrease in dividend income on FHLB stock was due primarily to a reduction in the Bank's balance of FHLB stock following the payoff of $200.0 million of maturing FHLB borrowings and repayments on amortizing FHLB borrowings, which reduced the Bank's required FHLB stock holdings.

Interest Expense

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

March 31, December 31, Change Expressed in:

2026 2025 Dollars Percent

(Dollars in thousands)

INTEREST EXPENSE:

Deposits $ 36,299 $ 37,500 $ (1,201) (3.2 %)

Borrowings 15,995 17,172 (1,177) (6.9)

Total interest expense $ 52,294 $ 54,672 $ (2,378) (4.3)

The decrease in interest expense on deposits between periods was due primarily to a decrease in the cost of retail certificates of deposit and money market accounts compared to the prior quarter.

The reduction in the cost of retail certificates of deposit was due to existing higher rate certificates of deposit renewing at lower rates and the decrease in the rate on money market accounts was due to management lowering the rates on some money market tiers during the current quarter.

Interest expense on borrowings was lower compared to the prior quarter due to a decrease in the average balance, attributable mainly to FHLB borrowings that matured between periods and were not replaced.

Deposit growth, along with cash flows from the securities portfolio, were used to repay these borrowings.

Provision for Credit Losses

The Company recorded a provision for credit losses of $2.4 million during the current quarter compared to a provision for credit losses of $1.1 million for the prior quarter.

The provision for credit losses in the current quarter was due primarily to establishing a $4.0 million specific valuation allowance related to a nonaccrual commercial lending relationship, partially offset by an increase in projected prepayment speeds for certain commercial loan categories and improvement between quarters in some of the commercial-related forecasted economic indices applied in the ACL model.

Non-Interest Income

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

March 31, December 31, Change Expressed in:

2026 2025 Dollars Percent

(Dollars in thousands)

NON-INTEREST INCOME:

Deposit service fees $ 2,690 $ 2,872 $ (182) (6.3 %)

Income from BOLI 1,151 965 186 19.3

Insurance commissions 512 789 (277) (35.1)

Other non-interest income 1,106 853 253 29.7

Total non-interest income $ 5,459 $ 5,479 $ (20) (0.4)

Income from BOLI was higher in the current quarter due primarily to the purchase of $45.0 million in BOLI policies during the current quarter.

Insurance commissions were lower compared to the prior quarter due primarily to the receipt of commissions that were lower than accruals, along with insurance industry changes that continued to reduce income on certain lines of business.

The increase in other non-interest income was due mainly to prepayment fees related to commercial loan payoffs during the current quarter.

Non-Interest Expense

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

March 31, December 31, Change Expressed in:

2026 2025 Dollars Percent

(Dollars in thousands)

NON-INTEREST EXPENSE:

Salaries and employee benefits $ 15,828 $ 15,747 $ 81 0.5 %

Information technology and related expense 5,425 5,134 291 5.7

Occupancy, net 3,265 3,450 (185) (5.4)

Professional and other services 1,579 1,789 (210) (11.7)

Federal insurance premium 1,110 1,111 (1) (0.1)

Advertising and promotional 645 1,056 (411) (38.9)

Deposit and loan transaction costs 768 716 52 7.3

Office supplies and related expense 511 481 30 6.2

Other non-interest expense 1,143 992 151 15.2

Total non-interest expense $ 30,274 $ 30,476 $ (202) (0.7)

The decrease in professional and other services was due primarily to nonrecurring services in the prior quarter.

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

The Company's efficiency ratio was 52.45% for the current quarter compared to 53.66% for the prior 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 1.24%, unchanged from the prior quarter.

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 periods presented, along with the change measured in dollars and percent and effective tax rate.

For the Three Months Ended

March 31, December 31, Change Expressed in:

2026 2025 Dollars Percent

(Dollars in thousands)

Income before income tax expense $ 25,079 $ 25,214 $ (135) (0.5 %)

Income tax expense 4,931 4,910 21 0.4

Net income $ 20,148 $ 20,304 $ (156) (0.8)

Effective tax rate 19.7 % 19.5 %

Average Balance Sheets.

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Average outstanding balances are derived from average daily balances.

All amounts are presented on a fully taxable basis for the periods presented.

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

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

March 31, 2026 December 31, 2025

Average Interest Average Interest

Outstanding Earned/ Yield/ Outstanding Earned/ Yield/

Amount Paid Rate Amount Paid Rate

(Dollars in thousands)

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Total liabilities and stockholders' equity $ 9,804,479 $ 9,827,112

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 (3)

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Net interest margin (4)

2.19 2.09 1.86

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

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

Selected performance ratios:

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Return on average equity (annualized) (6)

7.72 7.17 5.98

Average equity to average assets 10.62 10.70

Operating expense ratio (8)

1.24 1.27 1.14

Operating expense ratio (annualized) (7)

Efficiency ratio (8)

53.66 56.84 57.86

(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.

Nonaccrual loans 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 of securities for the quarters ended December 31, 2025, September 30, 2025, or December 31, 2024.

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

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(8) 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.

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.

Management believes the efficiency ratio is important to investors as it is a measure of a financial institution's cost to generate 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 periods indicated.

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.

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.

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

December 31, 2025 vs.

September 30, 2025 December 31, 2025 vs.

March 31, 2026 vs.

December 31, 2025

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

Volume Rate Total Volume Rate Total

Increase (Decrease) Due to

Volume Rate Total

(Dollars in thousands)

Interest-earning assets:

13 unchanged sentences

Net change in net interest income $ 651 $ 298 $ 949

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.

Comparison of Operating Results for the Six Months Ended March 31, 2026 and 2025

The Company recognized net income of $40.5 million, or $0.32 per share, for the current year period, compared to net income of $30.8 million, or $0.24 per share, for the prior year period.

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

The net interest margin increased 33 basis points, from 1.89% for the prior year period to 2.22% for the current year period.

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

The net interest margin improvement associated with the reduction in the cost of deposits, largely related to a decrease in rates on the retail certificate of deposit portfolio, was more than offset by an increase in the average balance of the deposit portfolio, mainly due to growth in the high yield savings account.

Interest and Dividend Income

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:

For the Six Months Ended

March 31, Change Expressed in:

2026 2025 Dollars Percent

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Total interest and dividend income $ 210,549 $ 195,797 $ 14,752 7.5

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.

The increase in interest income on loans receivable was due primarily to growth in the commercial loan portfolio, as cash flows from the one-to four-family loan portfolio continued to be redirected into the higher yielding commercial loan portfolio.

Interest income on cash and cash equivalents increased due to an increase in the average balance compared to the prior year period, partially offset by a decrease in the weighted average yield.

The increase in the average balance was driven primarily by carrying more cash during the current year period to support anticipated commercial loan activities and operational needs.

The decrease in FHLB stock dividend income was due primarily to a reduction in the balance of FHLB stock due to paying off maturing FHLB borrowings between periods and repayments on amortizing FHLB borrowings, which reduced the Bank's required FHLB stock holdings.

The decrease in interest income on investment securities was due primarily to a lower average balance, due mainly to securities that were called or matured between periods and were not replaced in their entirety.

Interest Expense

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:

For the Six Months Ended

March 31, Change Expressed in:

2026 2025 Dollars Percent

4 unchanged sentences

Total interest expense $ 106,966 $ 109,727 $ (2,761) (2.5)

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.

Interest expense on deposits was higher during the current year period due primarily to growth in the Bank's high yield savings account offering, partially offset by a decrease in the cost of retail certificates of deposit.

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 continued repayments on amortizing FHLB advances.

Cash flows from the deposit portfolio were used, in part, to pay off maturing FHLB borrowings and repay amortizing FHLB advances.

The increase in the weighted average interest rate was due primarily to FHLB borrowings that matured and were renewed between periods at market interest rates higher than the overall portfolio rate, along with paying off lower rate advances that matured between periods, which increased the overall interest rate of the remaining FHLB advances.

Provision for Credit Losses

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.

The Company recorded a provision for credit losses of $3.5 million during the current year period compared to a provision for credit losses of $677 thousand for the prior year period.

The provision for credit losses in the current year period was due primarily to establishing a $4.0 million specific valuation allowance related to a nonaccrual commercial lending relationship, along with commercial loan/commitment growth, partially offset by improvement between periods in some of the commercial-related forecasted economic indices applied in the ACL model.

Non-Interest Income

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:

For the Six Months Ended

March 31, Change Expressed in:

2026 2025 Dollars Percent

2 unchanged sentences

Deposit service fees $ 5,562 $ 5,303 $ 259 4.9 %

Income from BOLI 2,116 1,295 821 63.4

Insurance commissions 1,301 1,703 (402) (23.6)

1 unchanged sentence

Total non-interest income $ 10,938 $ 9,646 $ 1,292 13.4

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.

Income from BOLI was higher in the current year period due mainly 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, along with $45.0 million in new BOLI policies being purchased during the current year period.

Insurance commissions were lower compared to the prior year period due primarily to contingent commissions, specifically, contingent commissions received versus accrued in the current year compared to the prior year, along with a reduction in income in the current year period related to personal lines of business caused by some carriers imposing underwriting restrictions in our market areas.

Recently, several carriers began to ease their restrictions in our market areas, which should improve our income opportunities.

Other non-interest income was higher in the current year period due mainly to higher commercial loan fee activity.

Non-Interest Expense

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:

For the Six Months Ended

March 31, Change Expressed in:

2026 2025 Dollars Percent

4 unchanged sentences

Occupancy, net 6,715 6,835 (120) (1.8)

Regulatory and outside services 1,789 1,590 199 12.5

Professional and other services 3,368 2,582 786 30.4

Federal insurance premium 2,221 2,133 88 4.1

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Total non-interest expense $ 60,750 $ 56,688 $ 4,062 7.2

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.

The increase in salaries and employee benefits was mainly attributable to an increase in full-time equivalent employees between periods, as well as 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 related to new agreements and applications.

The increase in professional and other 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 other non-interest expense was due mainly to higher customer fraud losses in the prior year period.

The Company's efficiency ratio was 53.05% for the current year period compared to 59.23% for the prior year period.

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

The Company's operating expense ratio (annualized) for the current year period was 1.24% compared to 1.18% for the prior year period.

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

Income Tax Expense

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:

For the Six Months Ended

March 31, Change Expressed in:

2026 2025 Dollars Percent

4 unchanged sentences

Effective tax rate 19.6 % 19.6 %

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.

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

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.

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.

All amounts are presented on a fully taxable basis for the periods presented.

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

For the Six Months Ended

March 31, 2026 March 31, 2025

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 $ 3,722,877 $ 72,719 3.91 % $ 3,902,526 $ 72,686 3.73 %

Purchased 2,087,375 34,524 3.31 2,313,303 37,816 3.27

Total one- to four-family loans 5,810,252 107,243 3.69 6,215,829 110,502 3.56

Commercial loans:

Commercial real estate 1,835,843 53,606 5.78 1,319,992 37,440 5.61

Commercial and industrial 219,711 7,659 6.89 131,764 4,403 6.61

Commercial construction 187,302 6,317 6.67 174,574 5,504 6.24

Total commercial loans 2,242,856 67,582 5.96 1,626,330 47,347 5.76

Consumer loans 114,785 4,290 7.49 110,396 4,412 8.01

Total loans receivable (1)

8,167,893 179,115 4.37 7,952,555 162,261 4.07

808,309 22,194 5.49 795,969 22,288 5.60

Investment securities (2)

4,000 103 5.13 74,507 2,011 5.40

FHLB stock 85,569 3,890 9.12 98,696 4,637 9.42

Cash and cash equivalents 272,610 5,247 3.81 200,895 4,600 4.53

Total interest-earning assets 9,338,381 210,549 4.49 9,122,622 195,797 4.28

Other non-interest-earning assets 477,539 458,858

Total assets $ 9,815,920 $ 9,581,480

Liabilities and stockholders' equity:

Interest-bearing liabilities:

Checking $ 893,391 1,045 0.23 $ 872,404 1,016 0.23

High yield savings 546,847 10,232 3.75 176,304 3,657 4.16

Other savings 425,752 156 0.07 442,122 177 0.08

Money market 1,236,834 7,504 1.22 1,242,744 7,906 1.28

Retail certificates 2,833,097 51,555 3.65 2,800,744 57,736 4.13

Commercial certificates 63,000 1,112 3.54 57,227 1,208 4.23

Wholesale certificates 110,130 2,195 4.00 67,886 1,498 4.42

Total deposits 6,109,051 73,799 2.42 5,659,431 73,198 2.59

Borrowings 1,847,768 33,167 3.60 2,161,309 36,529 3.39

Total interest-bearing liabilities 7,956,819 106,966 2.70 7,820,740 109,727 2.81

Non-interest-bearing deposits 628,180 548,010

Other non-interest-bearing liabilities 184,382 180,034

Stockholders' equity 1,046,539 1,032,696

Total liabilities and stockholders' equity $ 9,815,920 $ 9,581,480

Net interest income (3)

$ 103,583 $ 86,070

Net interest-earning assets $ 1,381,562 $ 1,301,882

Net interest margin (4)

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

Selected performance ratios:

Return on average assets (annualized) (5)

0.82 % 0.64 %

Return on average equity (annualized) (6)

Average equity to average assets 10.66 10.78

Operating expense ratio (7)

Efficiency ratio (8)

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

Nonaccrual loans 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) 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.

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

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

(5) 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.

(6) 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.

(7) 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.

(8) 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.

Management believes the efficiency ratio is important to investors as it is a measure of a financial institution's cost to generate 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 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 Six Months Ended

March 31, 2026 vs.

March 31, 2025

Increase (Decrease) Due to

Volume Rate Total

(Dollars in thousands)

Interest-earning assets:

Loans receivable $ 11,141 $ 5,713 $ 16,854

MBS 343 (437) (94)

Investment securities (1,811) (97) (1,908)

FHLB stock (601) (146) (747)

Cash and cash equivalents 1,461 (814) 647

Total interest-earning assets 10,533 4,219 14,752

Interest-bearing liabilities:

Checking 25 4 29

Savings 2,898 3,656 6,554

Money market (37) (365) (402)

Certificates of deposit 1,623 (7,203) (5,580)

Borrowings (5,432) 2,070 (3,362)

Total interest-bearing liabilities (923) (1,838) (2,761)

Net change in net interest income $ 11,456 $ 6,057 $ 17,513

Comparison of Operating Results for the Three Months Ended March 31, 2026 and 2025

The Company recognized net income of $20.1 million, or $0.16 per share, for the quarter ended March 31, 2026, compared to net income of $15.4 million, or $0.12 per share, for the quarter ended March 31, 2025.

The increase in net income was due mainly to higher net interest income, partially offset by a higher provision for credit losses and higher income tax expense.

The net interest margin increased 32 basis points, from 1.92% for the prior year quarter to 2.24% for the current year quarter.

The increase was due primarily to the continued redirection of cash flows from the one- to four-family loan portfolio to the higher yielding commercial loan portfolio.

Interest and Dividend Income

1 unchanged sentence

For the Three Months Ended

December 31, Change Expressed in:

March 31, Change Expressed in:

2026 2025 Dollars Percent

7 unchanged sentences

Total interest and dividend income $ 104,560 $ 98,175 $ 6,385 6.5

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.

The increase in interest income on loans receivable was due primarily to growth in the commercial loan portfolio, which was funded in part with cash flows from the one- to four-family loan portfolio.

The decrease in interest income on MBS was due to a lower average balance of the portfolio compared to the prior year quarter as not all portfolio repayments were reinvested back into the portfolio, along with lower yields.

The decrease in interest income on cash and cash equivalents was due to a decrease in the weighted average yield compared to the prior year quarter, partially offset by an increase in the average balance during the current year quarter driven primarily by carrying more cash to support anticipated commercial loan activities and operational needs.

The decrease in interest income on investment securities was due primarily to a decrease in average balance, due mainly 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

December 31, Change Expressed in:

March 31, Change Expressed in:

2026 2025 Dollars Percent

4 unchanged sentences

Total interest expense $ 52,294 $ 54,335 $ (2,041) (3.8)

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.

The decrease in interest expense on borrowings was due to a decrease in the average balance compared to the prior year quarter, due mainly to FHLB borrowings that matured between periods and were not renewed, along with continued repayments on amortizing FHLB advances.

Provision for Credit Losses

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.

The Company recorded a provision for credit losses of $2.4 million during the current year quarter.

See "Comparison of Operating Results for the Three Months Ended March 31, 2026 and December 31, 2025" above for additional discussion regarding the provision for credit losses during the current year quarter.

The Company did not record a provision for credit losses during the prior year 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

1 unchanged sentence

For the Three Months Ended

December 31, Change Expressed in:

March 31, Change Expressed in:

2026 2025 Dollars Percent

2 unchanged sentences

Deposit service fees $ 2,690 $ 2,596 $ 94 3.6 %

Income from BOLI 1,151 747 404 54.1

Insurance commissions 512 927 (415) (44.8)

1 unchanged sentence

Total non-interest income $ 5,459 $ 4,953 $ 506 10.2

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.

Income from BOLI was higher in the current year quarter due mainly 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, along with $45.0 million in new BOLI policies added during the current year quarter.

The increase in other non-interest income was due mainly to prepayment fees related to commercial loan payoffs during the current quarter.

Non-Interest Expense

1 unchanged sentence

For the Three Months Ended

December 31, Change Expressed in:

March 31, Change Expressed in:

2026 2025 Dollars Percent

4 unchanged sentences

Occupancy, net 3,265 3,502 (237) (6.8)

Regulatory and outside services 1,789 1,113 676 60.7

Professional and other services 1,579 1,469 110 7.5

Federal insurance premium 1,110 1,095 15 1.4

4 unchanged sentences

Total non-interest expense $ 30,274 $ 29,540 $ 734 2.5

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 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 increase in salaries and employee benefits was mainly attributable to a net increase in full-time equivalent employees between periods.

The increase in information technology and related expense was due primarily to an increase in software licensing expense.

The decrease in other non-interest expense was due mainly to higher customer fraud losses in the prior year quarter, higher OREO costs in the prior year quarter largely related to a one- to four-family bulk purchased OREO, and a loss on a property sold during the prior year quarter related to an acquisition in 2018.

The Company's efficiency ratio was 52.45% for the current year quarter compared to 60.54% for the prior year quarter.

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

The Company's operating expense ratio (annualized) for the current year quarter was 1.24% compared to 1.23% for the prior year quarter.

Income Tax Expense

1 unchanged sentence

For the Three Months Ended

December 31, Change Expressed in:

March 31, Change Expressed in:

2026 2025 Dollars Percent

4 unchanged sentences

Effective tax rate 19.7 % 20.0 %

Income tax expense was higher in the current quarter due mainly to higher pretax income.

Income tax expense was higher in the current year quarter due to higher pretax income.

Average Balance Sheets .

Average outstanding balances are derived from average daily balances.

All amounts are presented on a fully taxable basis for the periods presented.

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

For the Three Months Ended

March 31, 2026 March 31, 2025

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 $ 3,697,174 $ 36,229 3.92 % $ 3,879,115 $ 36,311 3.74 %

Purchased 2,061,101 17,055 3.31 2,287,653 18,832 3.29

Total one- to four-family loans 5,758,275 53,284 3.70 6,166,768 55,143 3.58

Commercial loans:

Commercial real estate 1,896,666 27,150 5.73 1,337,264 18,685 5.59

Commercial and industrial 224,311 3,791 6.76 131,497 2,186 6.65

Commercial construction 176,061 3,001 6.82 177,586 2,720 6.13

Total commercial loans 2,297,038 33,942 5.91 1,646,347 23,591 5.73

Consumer loans 114,986 2,097 7.39 110,126 2,133 7.86

Total loans receivable (1)

8,170,299 89,323 4.37 7,923,241 80,867 4.08

789,899 10,853 5.50 811,013 11,264 5.56

Investment securities (2)

4,000 52 5.13 76,497 1,030 5.39

FHLB stock 82,855 1,858 9.10 98,231 2,285 9.43

Cash and cash equivalents 271,032 2,474 3.65 248,063 2,729 4.40

Total interest-earning assets 9,318,085 104,560 4.49 9,157,045 98,175 4.29

Other non-interest-earning assets 486,394 454,295

Total assets $ 9,804,479 $ 9,611,340

Liabilities and stockholders' equity:

Interest-bearing liabilities:

Checking $ 905,915 542 0.24 $ 879,218 485 0.22

High yield savings 587,450 5,262 3.63 227,677 2,335 4.16

Other savings 428,633 78 0.07 442,773 77 0.07

Money market 1,232,468 3,578 1.18 1,239,709 3,694 1.21

Retail certificates 2,842,406 25,342 3.62 2,789,206 27,981 4.07

Commercial certificates 64,107 557 3.52 56,580 572 4.10

Wholesale certificates 95,699 940 3.98 66,249 709 4.34

Total deposits 6,156,678 36,299 2.39 5,701,412 35,853 2.55

Borrowings 1,782,567 15,995 3.64 2,150,917 18,482 3.48

Total interest-bearing liabilities 7,939,245 52,294 2.67 7,852,329 54,335 2.81

Non-interest-bearing deposits 647,305 551,549

Other non-interest-bearing liabilities 176,382 173,700

Stockholders' equity 1,041,547 1,033,762

Total liabilities and stockholders' equity $ 9,804,479 $ 9,611,340

Net interest income (3)

$ 52,266 $ 43,840

Net interest-earning assets $ 1,378,840 $ 1,304,716

Net interest margin (4)

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

Selected performance ratios:

Return on average assets (annualized) (5)

0.82 % 0.64 %

Return on average equity (annualized) (6)

Average equity to average assets 10.62 10.76