What changed in this filing

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Item 1. Financial Statements

2026-08-07 compared with 2026-05-08 · 143 added, 149 removed, 925 unchanged (24% of the section changed)

4 unchanged sentences

(Dollars in thousands, except per share amounts)

March 31, September 30,

June 30, September 30,

Cash and cash equivalents (includes interest-earning deposits of $ 118,155 and $ 229,566 )

20 unchanged sentences

Common stock, $ 0.01 par value;

1,400,000,000 shares authorized, 127,688,691 and 132,204,305 shares issued and outstanding as of March 31, 2026 and September 30, 2025, respectively

1,400,000,000 shares authorized, 125,857,559 and 132,204,305 shares issued and outstanding as of June 30, 2026 and September 30, 2025, respectively

Additional paid-in capital 1,096,321 1,142,711

9 unchanged sentences

(Dollars in thousands, except per share amounts)

For the Three Months Ended For the Six Months Ended

March 31, March 31,

For the Three Months Ended For the Nine Months Ended

June 30, June 30,

2026 2025 2026 2025

43 unchanged sentences

(Dollars in thousands)

For the Three Months Ended For the Six Months Ended

March 31, March 31,

For the Three Months Ended For the Nine Months Ended

June 30, June 30,

2026 2025 2026 2025

17 unchanged sentences

(Dollars in thousands, except per share amounts)

For the Six Months Ended March 31, 2026

For the Nine Months Ended June 30, 2026

Additional Unearned Total

11 unchanged sentences

Net income 20,148 20,148

Other comprehensive loss, net of tax ( 4,646 ) ( 4,646 )

Other comprehensive income, net of tax ( 4,646 ) ( 4,646 )

ESOP activity ( 118 ) 413 295

4 unchanged sentences

Balance at March 31, 2026 1,277 1,110,648 ( 23,954 ) ( 73,805 ) 11,560 1,025,726

For the Six Months Ended March 31, 2025

Net income 23,570 23,570

Other comprehensive income, net of tax ( 3,481 ) ( 3,481 )

ESOP activity ( 90 ) 413 323

Restricted stock activity, net ( 6 ) ( 6 )

Stock-based compensation 97 97

Repurchase of common stock and excise taxes ( 18 ) ( 14,328 ) — ( 14,346 )

Cash dividends to stockholders ($ 0.085 per share)

( 10,563 ) ( 10,563 )

Balance at June 30, 2026 $ 1,259 $ 1,096,321 $ ( 23,541 ) $ ( 60,798 ) $ 8,079 $ 1,021,320

For the Nine Months Ended June 30, 2025

Additional Unearned Total

3 unchanged sentences

Net income 15,431 15,431

Other comprehensive loss, net of tax ( 10,065 ) ( 10,065 )

Other comprehensive income, net of tax ( 10,065 ) ( 10,065 )

ESOP activity ( 149 ) 412 263

11 unchanged sentences

Balance at March 31, 2025 1,328 1,146,733 ( 25,606 ) ( 102,397 ) 17,052 1,037,110

Net income 18,382 18,382

Other comprehensive income, net of tax 1,401 1,401

ESOP activity ( 179 ) 413 234

Restricted stock activity, net ( 2 ) ( 2 )

Stock-based compensation 96 96

Cash dividends to stockholders ($ 0.085 per share)

( 11,063 ) ( 11,063 )

Balance at June 30, 2025 $ 1,328 $ 1,146,648 $ ( 25,193 ) $ ( 95,078 ) $ 18,453 $ 1,046,158

See accompanying notes to consolidated financial statements.

3 unchanged sentences

(Dollars in thousands)

For the Six Months Ended

For the Nine Months Ended

CASH FLOWS FROM OPERATING ACTIVITIES:

12 unchanged sentences

Amortization of net deferred loan fees and premiums ( 2,195 ) ( 187 )

Change in cash surrender value of BOLI ( 3,575 ) ( 1,853 )

Unrestricted cash collateral from derivative counterparties, net 960 ( 440 )

8 unchanged sentences

Proceeds from the redemption of FHLB stock 20,204 11,515

Purchase of FHLB stock — ( 1,731 )

Net change in loans receivable ( 55,174 ) ( 117,839 )

4 unchanged sentences

Proceeds from sale of other real estate owned ("OREO") 409 110

Net cash provided by (used in) investing activities 17,612 ( 74,174 )

Net cash (used in) investing activities ( 7,973 ) ( 211,802 )

CAPITOL FEDERAL FINANCIAL, INC.

2 unchanged sentences

(Dollars in thousands)

For the Six Months Ended

For the Nine Months Ended

CASH FLOWS FROM FINANCING ACTIVITIES:

6 unchanged sentences

Change in advances by borrowers ( 24,822 ) ( 22,944 )

Net cash provided by financing activities 21,981 176,143

NET INCREASE IN CASH AND CASH EQUIVALENTS 78,482 123,082

Net cash (used in) provided by financing activities ( 164,694 ) 135,943

NET (DECREASE) IN CASH AND CASH EQUIVALENTS ( 116,345 ) ( 42,342 )

CASH AND CASH EQUIVALENTS:

1 unchanged sentence

End of period $ 136,098 $ 174,965

See accompanying notes to consolidated financial statements.

Notes to Consolidated Financial Statements (Unaudited)

70 unchanged sentences

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

For the Three Months Ended For the Six Months Ended

March 31, March 31,

For the Three Months Ended For the Nine Months Ended

June 30, June 30,

2026 2025 2026 2025

11 unchanged sentences

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

The Company did not hold any tax-exempt securities during the six months ended March 31, 2026 or 2025.

March 31, 2026

The Company did not hold any tax-exempt securities during the nine months ended June 30, 2026 or 2025.

June 30, 2026

Gross Gross Estimated

13 unchanged sentences

$ 847,369 $ 20,303 $ 456 $ 867,216

At March 31, 2026, AFS securities included $ 734.8 million of residential MBS and $ 70.9 million of commercial MBS.

At June 30, 2026, AFS securities included $ 709.2 million of residential MBS and $ 70.5 million of commercial MBS.

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

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

March 31, 2026

June 30, 2026

Less Than 12 Months Equal to or Greater Than 12 Months

13 unchanged sentences

$ 13,946 $ 55 $ 29,860 $ 401

The unrealized losses at March 31, 2026 were a result of an increase in market yields from the time the securities were purchased.

The unrealized losses at June 30, 2026 were a result of an increase in market yields from the time the securities were purchased.

In general, as market yields rise, the fair value of securities will decrease;

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

Management did not record an ACL on securities in an unrealized loss position at March 31, 2026 as management did not believe any of the securities were impaired due to credit quality reasons.

Management did not record an ACL on securities in an unrealized loss position at June 30, 2026 as management did not believe any of the securities were impaired due to credit quality reasons.

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

1 unchanged sentence

The fair value is expected to recover as the securities approach their maturity date, if not before, or if market yields decline.

The amortized cost and estimated fair value of AFS debt securities as of March 31, 2026, by contractual maturity, are shown below.

The amortized cost and estimated fair value of AFS debt securities as of June 30, 2026, by contractual maturity, are shown below.

Actual principal repayments may differ from contractual maturities due to prepayment or early call privileges by the issuer.

8 unchanged sentences

The following table summarizes the carrying value of securities pledged as collateral for the obligations indicated below as of the dates presented.

March 31, 2026 September 30, 2025

June 30, 2026 September 30, 2025

(Dollars in thousands)

3 unchanged sentences

LOANS RECEIVABLE AND ALLOWANCE FOR CREDIT LOSSES

Loans receivable, net at March 31, 2026 and September 30, 2025 are summarized as follows:

March 31, 2026 September 30, 2025

Loans receivable, net at June 30, 2026 and September 30, 2025 are summarized as follows:

June 30, 2026 September 30, 2025

(Dollars in thousands)

30 unchanged sentences

At the time of origination, the loan-to-value ratio ("LTV") on commercial real estate loans generally does not exceed 85 % of the appraised value of the property securing the loans and the minimum debt service coverage ratio ("DSCR") is generally 1.15 x.

The Bank generally

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

While the Bank

generally requires a guaranty on all commercial real estate loans, it may allow an experienced borrower that has a strong DSCR and low LTV to have a reduced or phased out guaranty, or it may originate the loan as a non-recourse loan.

For commercial construction loans, LTVs generally do not exceed 80 % of the projected appraised value of the property securing the loans and the minimum DSCR is generally 1.15 x, based upon projected cash flows and the contractual loan payments when the project stabilizes.

The borrower must have successful experience with the construction and operation of properties similar to the subject property.

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

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

31 unchanged sentences

Loans classified as doubtful or loss are individually evaluated for loss.

At March 31, 2026 and September 30, 2025, there were no loans classified as doubtful, and all loans classified as loss were fully charged-off.

At June 30, 2026 and September 30, 2025, there were no loans classified as doubtful, and all loans classified as loss were fully charged-off.

The commercial real estate substandard loan amount presented in the "Current Fiscal Year" column is primarily related to two loans in the same borrowing relationship that were modified during the current fiscal year.

During the current quarter, an updated appraisal was received related to the collateral securing this lending relationship and as a result, a specific valuation allowance was recorded as of March 31, 2026.

The loans associated with this lending relationship were on nonaccrual at both March 31, 2026 and September 30, 2025.

During the current fiscal year, an updated appraisal was received related to the collateral securing this lending relationship and as a result, a specific valuation allowance was recorded.

The loans associated with this lending relationship were on nonaccrual at both June 30, 2026 and September 30, 2025.

The loans are recourse loans and have personal guarantees.

March 31, 2026

June 30, 2026

Current Fiscal Fiscal Fiscal Fiscal Revolving Credit

69 unchanged sentences

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

March 31, 2026

June 30, 2026

Current Fiscal Fiscal Fiscal Fiscal Revolving Credit

68 unchanged sentences

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

For the Six Months Ended March 31, 2026

For the Nine Months Ended June 30, 2026

Current Fiscal Fiscal Fiscal Fiscal Revolving of Credit

14 unchanged sentences

Total $ 43 $ 6 $ 93 $ 15 $ 23 $ 28 $ 106 $ — $ 314

For the Six Months Ended March 31, 2025

For the Nine Months Ended June 30, 2025

Fiscal Fiscal Fiscal Fiscal Fiscal Revolving of Credit

15 unchanged sentences

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

At March 31, 2026 and September 30, 2025, all loans 90 or more days delinquent were on nonaccrual status.

March 31, 2026

At June 30, 2026 and September 30, 2025, all loans 90 or more days delinquent were on nonaccrual status.

June 30, 2026

90 or More Days Total Total

25 unchanged sentences

$ 12,363 $ 7,724 $ 20,087 $ 8,115,913 $ 8,136,000

The amortized cost of mortgage loans secured by residential real estate for which formal foreclosure proceedings were in process as of March 31, 2026 and September 30, 2025 was $ 1.3 million and $ 1.0 million, respectively, which is included in loans 90 or more days delinquent or in foreclosure in the tables above.

The carrying value of residential OREO held as a result of obtaining physical possession upon completion of a foreclosure or through completion of a deed in lieu of foreclosure was $ 135 thousand at March 31, 2026 and $ 197 thousand at September 30, 2025.

The following table presents the amortized cost at March 31, 2026 and September 30, 2025, by class, of loans classified as nonaccrual.

The amortized cost of mortgage loans secured by residential real estate for which formal foreclosure proceedings were in process as of June 30, 2026 and September 30, 2025 was $ 2.3 million and $ 1.0 million, respectively, which is included in loans 90 or more days delinquent or in foreclosure in the tables above.

There was no residential OREO held at June 30, 2026.

The following table presents the amortized cost at June 30, 2026 and September 30, 2025, by class, of loans classified as nonaccrual.

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

The majority of the balance of commercial real estate nonaccrual loans at March 31, 2026 and September 30, 2025 related to two loans from the same borrowing relationship.

During the current quarter, an updated appraisal was received related to the collateral securing the borrowing relationship and a specific valuation allowance was recorded as of March 31, 2026.

The majority of the balance of commercial real estate nonaccrual loans at June 30, 2026 and September 30, 2025 related to two loans from the same borrowing relationship.

During the current fiscal year, an updated appraisal was received related to the collateral securing the borrowing relationship and a specific valuation allowance was recorded.

See additional discussion related to these loans in the "Credit Quality Indicators - Loan Classification" section above.

March 31, 2026 September 30, 2025

June 30, 2026 September 30, 2025

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

11 unchanged sentences

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

During the six months ended March 31, 2026, the only charge-offs associated with modified loans during the period were $ 12 thousand for one- to four-family originated loans.

During the six months ended March 31, 2025 there were no charge-offs related to loans modified during the period.

During the nine months ended June 30, 2026, the only charge-offs associated with modified loans during the period were $ 12 thousand for one- to four-family originated loans.

During the nine months ended June 30, 2025 there were no charge-offs related to loans modified during the period.

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

The commercial real estate payment delay modification during the six months ended March 31, 2026 was due primarily to the two loans discussed above, under the "Credit Quality Indicators - Loan Classification" section.

These two commercial loans were classified as substandard and nonaccrual at March 31, 2026.

For the Three Months Ended March 31, 2026

The commercial real estate payment delay modification during the three and nine months ended June 30, 2026 was due primarily to the two loans discussed above, under the "Credit Quality Indicators - Loan Classification" section.

These two commercial loans were classified as substandard and nonaccrual at June 30, 2026.

For the Three Months Ended June 30, 2026

Extension Total

14 unchanged sentences

Total $ 39,306 $ 2,775 $ 205 $ 42,286 0.5

For the Six Months Ended March 31, 2026

For the Nine Months Ended June 30, 2026

Extension Total

14 unchanged sentences

Total $ 40,393 $ 7,528 $ 1,578 $ 49,499 0.6

For the Three Months Ended March 31, 2025

For the Three Months Ended June 30, 2025

Extension Total

14 unchanged sentences

Total $ 40,302 $ 3,801 $ 2,168 $ 46,271 0.6

For the Six Months Ended March 31, 2025

For the Nine Months Ended June 30, 2025

Extension Total

13 unchanged sentences

Other — — — — —

20 34 — 54 0.1

Total $ 48,402 $ 5,484 $ 2,981 $ 56,867 0.7

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

For the Three Months Ended March 31, 2026 For the Six Months Ended March 31, 2026

For the Three Months Ended June 30, 2026 For the Nine Months Ended June 30, 2026

Payment Term Payment Term

2 unchanged sentences

Originated 8 months 43 months 8 months 41 months

Correspondent purchased 8 months 18 months 8 months 19 months

Bulk purchased 13 months N/A 13 months N/A

Correspondent purchased N/A 39 months 8 months 30 months

Commercial real estate 13 months N/A 13 months N/A

Commercial and industrial 5 months 18 months 9 months 21 months

Consumer home equity 8 months N/A 8 months N/A

For the Three Months Ended March 31, 2025 For the Six Months Ended March 31, 2025

Consumer home equity N/A N/A 8 months N/A

For the Three Months Ended June 30, 2025 For the Nine Months Ended June 30, 2025

Payment Term Payment Term

5 unchanged sentences

Commercial and industrial N/A 6 months N/A 5 months

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

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

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

The following table presents the performance of such loans, based on amortized cost, by class of financing receivable as of March 31, 2026 and March 31, 2025, on loans modified during the preceding 12-months for borrowers experiencing financial difficulty that were delinquent as of March 31, 2026 and March 31, 2025, respectively.

All other loans modified to borrowers experiencing financial difficulty during the periods noted were current as of March 31, 2026 and March 31, 2025.

As of March 31, 2026 As of March 31, 2025

The following table presents the performance of such loans, based on amortized cost, by class of financing receivable as of June 30, 2026 and June 30, 2025, on loans modified during the preceding 12-months for borrowers experiencing financial difficulty that were delinquent as of June 30, 2026 and June 30, 2025, respectively.

All other loans modified to borrowers experiencing financial difficulty during the periods noted were current as of June 30, 2026 and June 30, 2025.

As of June 30, 2026 As of June 30, 2025

30 to 89 Days

16 unchanged sentences

Total $ 957 $ 1,327 $ 2,284 $ 2,690 $ 193 $ 2,883

The following tables present the amortized cost basis of loans that had a payment default during the three and six months ended March 31, 2026 or March 31, 2025 and were modified to borrowers experiencing financial difficulty in the 12-months prior to the default date, by class of financing receivable and by type of modification.

The following tables present the amortized cost basis of loans that had a payment default during the three and nine months ended June 30, 2026 or June 30, 2025 and were modified to borrowers experiencing financial difficulty in the 12-months prior to the default date, by class of financing receivable and by type of modification.

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

For the Three Months Ended March 31, 2026

Payment Term Payment

Delay Extension Delay Total

(Dollars in thousands)

One- to four-family:

Originated $ — $ 169 $ 470 $ 639

Correspondent purchased — — — —

Bulk purchased — — — —

Commercial real estate 148 — — 148

Commercial and industrial — — — —

Consumer loans:

Home equity — — — —

Other — — — —

Total $ 148 $ 169 $ 470 $ 787

For the Six Months Ended March 31, 2026

Payment Term Payment

Delay Extension Delay Total

(Dollars in thousands)

One- to four-family:

Originated $ — $ 462 $ 624 $ 1,086

Correspondent purchased — — — —

Bulk purchased — — — —

Commercial real estate 148 — — 148

Commercial and industrial — — — —

Consumer loans:

Home equity — — — —

Other — — — —

Total $ 148 $ 462 $ 624 $ 1,234

For the Three Months Ended March 31, 2025

Payment Term Payment

Delay Extension Delay Total

For the Three Months Ended June 30, 2026 For the Nine Months Ended June 30, 2026

Extension Extension

Payment Term Payment Payment Term Payment

Delay Extension Delay Total Delay Extension Delay Total

(Dollars in thousands)

9 unchanged sentences

Total $ 914 $ 259 $ 154 $ 1,327 $ 914 $ 614 $ 250 $ 1,778

For the Six Months Ended March 31, 2025

Payment Term Payment

Delay Extension Delay Total

For the Three Months Ended June 30, 2025 For the Nine Months Ended June 30, 2025

Extension Extension

Payment Term Payment Payment Term Payment

Delay Extension Delay Total Delay Extension Delay Total

(Dollars in thousands)

10 unchanged sentences

Allowance for Credit Losses - The following table summarizes ACL activity, by loan portfolio segment, for the periods presented.

For the Three Months Ended March 31, 2026

For the Three Months Ended June 30, 2026

One- to four- Commercial Commercial

6 unchanged sentences

Ending balance $ 2,224 $ 20,886 $ 2,810 $ 23,696 $ 183 $ 26,103

For the Six Months Ended March 31, 2026

For the Nine Months Ended June 30, 2026

One- to four- Commercial Commercial

6 unchanged sentences

Ending balance $ 2,224 $ 20,886 $ 2,810 $ 23,696 $ 183 $ 26,103

For the Three Months Ended March 31, 2025

For the Three Months Ended June 30, 2025

One- to four- Commercial Commercial

6 unchanged sentences

Ending balance $ 3,532 $ 16,598 $ 2,441 $ 19,039 $ 237 $ 22,808

For the Six Months Ended March 31, 2025

For the Nine Months Ended June 30, 2025

One- to four- Commercial Commercial

6 unchanged sentences

Ending balance $ 3,532 $ 16,598 $ 2,441 $ 19,039 $ 237 $ 22,808

The key assumptions in the Company's ACL model at March 31, 2026 include the economic forecast, the forecast and reversion to mean time periods, and prepayment and curtailment assumptions.

Management also considered certain qualitative factors when evaluating the adequacy of the ACL at March 31, 2026.

The key assumptions utilized in estimating the Company's ACL at March 31, 2026 are discussed below.

• Economic Forecast - Management considered several economic forecasts provided by a third party and selected an economic forecast that was the most appropriate considering the facts and circumstances at March 31, 2026.

The forecasted economic indices applied to the model at March 31, 2026 were the national unemployment rate, changes in commercial real estate price index, changes in home values, changes in the U.S.

The key assumptions in the Company's ACL model at June 30, 2026 include the economic forecast, the forecast and reversion to mean time periods, and prepayment and curtailment assumptions.

Management also considered certain qualitative factors when evaluating the adequacy of the ACL at June 30, 2026.

The key assumptions utilized in estimating the Company's ACL at June 30, 2026 are discussed below.

The forecasted economic indices applied to the model at June 30, 2026 were the national unemployment rate, changes in commercial real estate price index, changes in home values, changes in the U.S.

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

gross domestic product.

The economic index most impactful to all loan pools within the model at March 31, 2026 was the national unemployment

The forecasted national unemployment rate in the economic scenario selected by management at March 31, 2026 had the national unemployment rate gradually increasing to 4.7 % by March 31, 2027, which was the end of our four-quarter forecast time period.

• Forecast and reversion to mean time periods - The forecasted time period and the reversion to mean time period were each four quarters for all of the economic indices at March 31, 2026.

• Prepayment and curtailment assumptions - The assumptions used at March 31, 2026 were generally based on actual historical prepayment and curtailment speeds, adjusted by management as deemed necessary.

The economic index most impactful to all loan pools within the model at June 30, 2026 was the national unemployment rate.

The forecasted national unemployment rate in the economic scenario selected by management at June 30, 2026 had the national unemployment rate gradually increasing to 4.6 % by June 30, 2027, which was the end of our four-quarter forecast time period.

• Forecast and reversion to mean time periods - The forecasted time period and the reversion to mean time period were each four quarters for all of the economic indices at June 30, 2026.

• Prepayment and curtailment assumptions - The assumptions used at June 30, 2026 were generally based on actual historical prepayment and curtailment speeds, adjusted by management as deemed necessary.

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

• Qualitative factors - Management applied qualitative factors at March 31, 2026 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.

• Qualitative factors - Management applied qualitative factors at June 30, 2026 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

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

To determine the appropriate amount of the one- to four-family loan qualitative factor as of March 31, 2026, management considered external historical home price index trending information, along with historical loan loss experience, and portfolio balance trending, the one-to four-family loan portfolio composition with regard to loan size, and management's knowledge of the Bank's loan portfolio and the one- to four-family lending industry.

Reserve for Off-Balance Sheet Credit Exposures - At March 31, 2026 and September 30, 2025, the Bank's off-balance sheet credit exposures totaled $ 896.5 million and $ 821.6 million, respectively.

To determine the appropriate amount of the one- to four-family loan qualitative factor as of June 30, 2026, management considered external historical home price index trending information, along with historical loan loss experience, and portfolio balance trending, the one-to four-family loan portfolio composition with regard to loan size, and management's knowledge of the Bank's loan portfolio and the one- to four-family lending industry.

Reserve for Off-Balance Sheet Credit Exposures - At June 30, 2026 and September 30, 2025, the Bank's off-balance sheet credit exposures totaled $ 990.7 million and $ 821.6 million, respectively.

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

The increase in the reserve for off-balance sheet credit exposures as of March 31, 2026 compared to March 31, 2025 was due primarily to an increase in commercial off-balance sheet credit exposures between periods.

For the Three Months Ended For the Six Months Ended

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

The increase in the reserve for off-balance sheet credit exposures during the current fiscal year was due primarily to an increase in commercial off-balance sheet credit exposures.

For the Three Months Ended For the Nine Months Ended

June 30, 2026 June 30, 2025 June 30, 2026 June 30, 2025

(Dollars in thousands)

3 unchanged sentences

BORROWED FUNDS

At March 31, 2026 and September 30, 2025, the Bank had an interest rate swap agreement with a notional amount of $ 100.0 million in order to hedge the variable cash flows associated with $ 100.0 million of adjustable-rate FHLB advances.

At March 31, 2026 and September 30, 2025, the interest rate swap agreement had an average remaining term to maturity of 2.2 years and 2.7 years, respectively.

At June 30, 2026 and September 30, 2025, the Bank had an interest rate swap agreement with a notional amount of $ 100.0 million in order to hedge the variable cash flows associated with $ 100.0 million of adjustable-rate FHLB advances.

At June 30, 2026 and September 30, 2025, the interest rate swap agreement had an average remaining term to maturity of 1.9 years and 2.7 years, respectively.

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

At March 31, 2026 and September 30, 2025, the interest rate swap was in a gain position with a fair value of $ 1.3 million and $ 926 thousand, respectively, which was reported in other assets on the consolidated balance sheet.

During the six months ended March 31, 2026 and 2025, $ 342 thousand and $ 1.3 million, respectively, was reclassified from AOCI as a decrease to interest expense.

At March 31, 2026, the Company estimated that $ 693 thousand of interest expense associated with the interest rate swap would be reclassified from AOCI as a decrease to interest expense on FHLB borrowings during the next 12 months.

At June 30, 2026 and September 30, 2025, the interest rate swap was in a gain position with a fair value of $ 1.9 million and $ 926 thousand, respectively, which was reported in other assets on the consolidated balance sheet.

During the three and nine months ended June 30, 2026, $ 130 thousand and $ 472 thousand, respectively, was reclassified from AOCI as a decrease to interest expense.

During the three and nine months ended June 30, 2025, $ 557 thousand and $ 1.8 million, respectively, was reclassified from AOCI as a decrease to interest expense.

At June 30, 2026, the Company estimated that $ 1.0 million of interest expense associated with the interest rate swap would be reclassified from AOCI as an increase to interest expense on FHLB borrowings during the next 12 months.

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

The Bank held cash collateral of $ 1.6 million at March 31, 2026 and $ 920 thousand at September 30, 2025.

During the six months ended March 31, 2026, the Bank prepaid $ 425.0 million of fixed-rate advances with a weighted average effective rate of 4.32 % and a weighted average life ("WAL") of 0.8 years and replaced them with $ 425.0 million of fixed-rate advances with a weighted average effective rate of 3.79 % and a WAL of 2.3 years.

The Bank held cash collateral of $ 1.9 million and $ 920 thousand at June 30, 2026 and September 30, 2025, respectively.

During the nine months ended June 30, 2026, the Bank prepaid $ 425.0 million of fixed-rate advances with a weighted average effective rate of 4.32 % and a weighted average life ("WAL") of 0.8 years and replaced them with $ 425.0 million of fixed-rate advances with a weighted average effective rate of 3.79 % and a WAL of 2.3 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.

At March 31, 2026, the Company had a federal and state net operating loss deferred income tax asset of $ 6.4 million.

The gross federal net operating loss amount at March 31, 2026 was $ 25.3 million and the gross state net operating loss amount at March 31, 2026 was $ 34.6 million.

At June 30, 2026, the Company had a federal and state net operating loss deferred income tax asset of $ 377 thousand.

The gross federal net operating loss amount at June 30, 2026 was $ 320 thousand and the gross state net operating loss amount at June 30, 2026 was $ 9.8 million.

The gross federal and state net operating losses will carry forward indefinitely .

In addition, the Company had a $ 26.9 million and $ 22.3 million deferred tax asset as of March 31, 2026 and September 30, 2025, respectively, related to federal tax credits that will not be utilized on the Company's federal tax return due to income tax return income limitations.

In addition, the Company had a $ 30.2 million and $ 22.3 million deferred tax asset as of June 30, 2026 and September 30, 2025, respectively, related to federal tax credits that will not be utilized on the Company's federal tax return due to income tax return income limitations.

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

20 unchanged sentences

If the price provided by the independent source varies by more than a predetermined percentage from the price received from the third-party pricing service, then the variance is researched by management.

The Company did not have to adjust prices obtained from the third-party pricing service when determining the fair value of its securities during the six months ended March 31, 2026 or during fiscal year 2025.

The Company did not have to adjust prices obtained from the third-party pricing service when determining the fair value of its securities during the nine months ended June 30, 2026 or during fiscal year 2025.

The Company's major security types, based on the nature and risks of the securities, are:

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

Interest Rate Swap - The Company's interest rate swap is designated as a cash flow hedge and is reported at fair value in other assets on the consolidated balance sheet if in a gain position and in other liabilities if in a loss position, with any unrealized gains and losses,

net of taxes, reported as AOCI in stockholders' equity.

Borrowed Funds" for additional information.

The estimated fair values of the interest rate swap is obtained from the counterparty and is determined by a discounted cash flow analysis using observable market-based inputs.

The estimated fair value of the interest rate swap is obtained from the counterparty and is determined by a discounted cash flow analysis using observable market-based inputs.

On a quarterly basis, management corroborates the estimated fair value by internally calculating the estimated fair value using a discounted cash flow analysis with independent observable market-based inputs from a third party.

No adjustments were made to the estimated fair value obtained from the counterparty during the six months ended March 31, 2026 or during fiscal year 2025.

No adjustments were made to the estimated fair value obtained from the counterparty during the nine months ended June 30, 2026 or during fiscal year 2025.

The following tables provide the level of valuation assumption used to determine the carrying value of the Company's financial instruments measured at fair value on a recurring basis at the dates presented.

All of the Company's financial instruments measured at fair value on a recurring basis were assets at March 31, 2026 and September 30, 2025.

The Company did not have any Level 3 financial instruments measured at fair value on a recurring basis at March 31, 2026 or September 30, 2025.

March 31, 2026

All of the Company's financial instruments measured at fair value on a recurring basis were assets at June 30, 2026 and September 30, 2025.

The Company did not have any Level 3 financial instruments measured at fair value on a recurring basis at June 30, 2026 or September 30, 2025.

June 30, 2026

Quoted Prices Significant Significant

25 unchanged sentences

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

Loans Receivable – The fair value of collateral dependent loans individually evaluated for loss on a non-recurring basis during the six months ended March 31, 2026 and 2025 that were still held in the portfolio was $ 50.2 million as of March 31, 2026 and 2025.

Loans Receivable – The fair value of collateral dependent loans individually evaluated for loss on a non-recurring basis during the nine months ended June 30, 2026 and 2025 that were still held in the portfolio was $ 51.9 million and $ 89.6 million as of June 30, 2026 and 2025, respectively.

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

2 unchanged sentences

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

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

conditions, recent transactions, and estimated selling costs, if applicable.

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

The primary significant unobservable inputs for commercial loans individually evaluated during the six months ended March 31, 2026 or 2025 were downward adjustments to the collateral value for estimated costs to sell/dispose of the assets and management’s evaluation of market participant expectations if the Bank were to sell the collateral.

During the six months ended March 31, 2026, the adjustments ranged from 8 % to 100 %, with a weighted average of 19 %.

During the six months ended March 31, 2025, the adjustments ranged from 10 % to 99 %, with a weighted average of 22 %.

The primary significant unobservable inputs for commercial loans individually evaluated during the nine months ended June 30, 2026 or 2025 were downward adjustments to the collateral value for estimated costs to sell/dispose of the assets and management's evaluation of market participant expectations if the Bank were to sell/dispose of the collateral.

During the nine months ended June 30, 2026, the adjustments related to the estimated costs to sell/dispose of the asset ranged from 8 % to 83 %, with a weighted average of 26 % and the adjustments related to management's evaluation of market participant expectations ranged from 10 % to 100 %, with a weighted average of 18 %.

During the nine months ended June 30, 2025,

the adjustments related to the estimated costs to sell/dispose of the asset ranged from 8 % to 63 %, with a weighted average of 10 % and the adjustments related to management's evaluation of market participant expectations ranged from 10 % to 99 %, with a weighted average of 12 %.

The basis utilized in calculating the weighted averages for these adjustments was the original unadjusted value of each collateral item.

3 unchanged sentences

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

There was no one- to four-family OREO measured on a non-recurring basis during the six months ended March 31, 2026 and March 31, 2025.

There was no one- to four-family OREO measured on a non-recurring basis during the nine months ended June 30, 2026.

The fair value of one- to four-family OREO measured on a non-recurring basis during the nine months ended June 30, 2025 was $ 92 thousand.

The carrying value of the properties equaled the fair value of the properties at June 30, 2025.

For commercial OREO, if the most recent appraisal or book value of the collateral does not reflect current market conditions due to the passage of time and/or other factors, management will adjust the existing appraised or book value based on knowledge of local market conditions, recent transactions, and estimated selling costs, if applicable.

1 unchanged sentence

Fair values of foreclosed property cannot be determined with precision and may not be realized in an actual sale of the property and, as such, are classified as Level 3.

There was no commercial OREO measured on a non-recurring basis during the six months ended March 31, 2026 and 2025.

There was no commercial OREO measured on a non-recurring basis during the nine months ended June 30, 2026 and 2025.

Fair Value Disclosures – The Company estimated fair value amounts using available market information and a variety of valuation methodologies as of the dates presented.

2 unchanged sentences

The carrying amounts and estimated fair values of the Company's financial instruments by fair value hierarchy, at the dates presented, were as follows:

March 31, 2026

June 30, 2026

Carrying Estimated Fair Value

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The following tables present the changes in the components of AOCI, net of tax, for the periods presented.

For the Three Months Ended March 31, 2026

For the Three Months Ended June 30, 2026

Unrealized Unrealized

9 unchanged sentences

Ending balance $ 6,675 $ 1,404 $ 8,079

For the Six Months Ended March 31, 2026

For the Nine Months Ended June 30, 2026

Unrealized Unrealized

7 unchanged sentences

— ( 472 ) ( 472 )

Other comprehensive (loss) ( 4,505 ) 310 ( 4,195 )

Other comprehensive income (loss) ( 8,377 ) 701 ( 7,676 )

Ending balance $ 6,675 $ 1,404 $ 8,079

For the Three Months Ended March 31, 2025

For the Three Months Ended June 30, 2025

Unrealized Unrealized

9 unchanged sentences

Ending balance $ 17,343 $ 1,110 $ 18,453

For the Six Months Ended March 31, 2025

For the Nine Months Ended June 30, 2025

Unrealized Unrealized

10 unchanged sentences

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 1. Financial Statements